CASE DETAILS v. AMARJEETSINGH MOHINDERSINGH BASI & Ors.

Maharashtra Co-operative Societies Act, 1960 – s.81(5B) – FIR registered by appellant-share holder against respondents for off ences punishable u/ss.420, 406, 409, 465, 467, 468 and 471 r/w. s.34 of IPC – FIR quashed by High Court relying on s.81(5B) of the 1960 Act – Propriety of: Held: The High Court held that s.81(5B) contains special provisions for the submission of a special report and the obtaining of the permission of the Registrar before the lodging of an FIR – It held that these provisions would be rendered otiose if the general provisions in the Code of Criminal Procedure 1973 were to apply – In the instant circumstances, the High Court has erred in quashing the FIR which was lodged by the appellant – S.81(5B) cannot be interpreted to mean that any other person who comes to know about the fi nancial irregularity on the basis of the audit report is debarred from reporting the irregularity to the police – It is correct that the FIR adverted to the audit which was conducted in respect of the aff airs of the co-operative society – However, once the criminal law is set into motion, it is the duty of the police to investigate into the alleged off ence – This process cannot be interdicted by relying upon the provisions of sub-section (5B) of s. 81 which cast a duty on the Registrar/auditor to lodge a fi rst information report – Impugned Judgment and order of the High Court set aside. [Paras 7, 26 and 29] LIST OF CITATIONS AND OTHER REFERENCES