Calcutta High Court (Appellete Side)

Steel Authority Of India Limited & Anr vs The State Of West Bengal & Ors on 3 September, 2024

Author: Rajarshi Bharadwaj

Bench: Rajarshi Bharadwaj

                   IN THE HIGH COURT AT CALCUTTA
                  CONSTITUTIONAL WRIT JURISDICTION
                                 (Appellate Side)


Present:     THE HON'BLE JUSTICE RAJARSHI BHARADWAJ


                                         W.P.A 18644 of 2024


                                         Reserved on  : 14.08.2024
                                         Pronounced on: 03.09.2024


     Steel Authority of India Limited & Anr.
                                                         ...Petitioners

                                       -Vs-


     The State of West Bengal & Ors.
                                                            ...Respondents

Present:-

Mr. Sandipan Ganguly, Sr. Adv.

Mr. Anirban Day Mr. Dwip Raj Basu ... for the Petitioners Mr. Swapan Banerjee Mr. Sougata Mitra ... for the State Mr. Pradyumna Sinha Mr. Sannidhya Datta Ms. Anjali Roy ...for the respondent nos. 7 & 10

Rajarshi Bharadwaj, J:

1. The instant writ petition has been preferred by Steel Authority of India

Limited herein the petitioner company challenging the inaction of police

authorities deployed at Kulti Police Station in investigating the case being

Kulti P.S. Case No. 467 of 2023 dated 31.08.2023 registered at the same.

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2. The facts of the case in a nutshell is that the Board of Indian Iron Steel

Company Limited (IISCO) let out for 33 years a hostel building measuring

approximately 0.5 acres to Priyadarshini Educational Society, herein the

School Society for the purpose of establishing a secondary school through a

lease deed dated 19.11.1992. Thereafter, the secretary to the school society,

herein respondent no. 10 resisted the handover of the aforesaid property on

the expiry of the lease, citing a subsequent lease deed executed by Mr. Rajib

Kumar, herein respondent No.8 and Mr. Krishna Kumar Tiwari, herein

respondent no.7, which extended their occupation for a further period of 33

years.

3. Learned counsel appearing for the petitioner company submits that the

Board of IISCO that had approved the lease deed dated November 19, 1992,

ceased to exist as a separate entity when it merged with the petitioner

company in 2006, and consequently, did not have the power to authorize the

respondent No.8 to execute the subsequent lease deed, renewing possession in

favour of the school society. Moreover, as the Board of the petitioner company

did not ratify such document no record of the same appears in the petitioner's

records. The petitioners disputing the authenticity of the subsequent lease

deed and alleging criminal conspiracy by respondent Nos. 7-10 lodged a

written complaint dated 31.08.2023 before the Officer-in-Charge, Kulti Police

Station which led to registration of an F.I.R. being Kulti P.S. Case No. 467 of

2023 dated 31.08.2023 under Sections 420/406/467/ 468/471 /409/120B

of IPC.

4. Learned counsel submits that immediately upon learning about such

proceeding being initiated against the School Society, the Society filed a writ

petition being WPA No. 22009 of 2023 challenging the proceeding which is

awaiting a final determination. Thereafter, respondent No.7 filed a complaint

before the Kulti Police Station on 14.10.2023 stating that after a careful

examination of the purported lease deed, he found that his signature has been

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forged and his photograph, fingerprints and name have been fraudulently

issued in the lease deed. However, no action was taken by the police

authorities against the instant complainant and no endeavours were made to

seize the document or record the statement of respondent No.8.

5. Learned counsel submits that the police authorities have been directed

by the learned Single Judge by an order dated 12.10.2023 that "the

investigation of the case would proceed. However, no coercive step would be

taken against the petitioner provided the petitioner co-operate with the

investigating agency". The police's egregious violation of the order compelled

the petitioner to file several representations to the investigating officer, Kulti

P.S. herein respondent No.5, Deputy Commissioner of Police herein

respondent No. 4 and Officer-in-Charge herein respondent No.3 furnishing

relevant documents and requesting to cause seizure of the forged documents.

Despite the case being instituted 11 months ago, the police have taken no

steps to address the dispute concerning the fraudulent document or furnish a

progress report.

6. Learned counsel refers to order dated August 9, 2023 (XXX Vs. State of

West Bengal & Ors.), order dated November 24, 2021 in WPA 16862 of 2021

(Tania Parvin Vs. State of West Bengal & Ors.) and order dated December 5,

2023 in WPA 21993 of 2023 (Palash Debnath Vs. State of West Bengal &

Ors.) of the co-ordinate Bench of this Hon'ble Court to strengthen the prayer

that a fair and impartial investigation be conducted by transferring

investigation to a specialized agency.

7. Learned counsel appearing for the respondent Nos. 7, 9 and 10 submits

that the investigation of the case should not be transferred to any other police

station/division as it may lead to practical difficulties and relies upon the case

of Naresh Kavarchand Khatri Vs. State of Gujarat & Anr. reported in 2008

(8) SCC 300, where the Hon'ble Supreme Court ruled that the High Court's

power to interfere with police investigation is circumscribed and can only be

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exercised in cases where the investigating officer lacks jurisdiction;

additionally, the Court should abstain from interfering in the early stages of

investigation.

8. Learned counsel appearing for the State authorities submits that upon

registration of complaint being Kulti P.S. Case No. 467/2023 dated

31.08.2023 investigation was entrusted to S.I. Parimal Biswas attached to

Kulti P.S. Prior to the investigation being transferred to S.I. Budhadev Gain on

30.01.2024, S.I. Parimal Biswas took necessary steps to proceed with the

investigation by serving notice under Section 91 of the Cr.P.C. and seizing the

original disputed lease deed, recording statements of Mr. Pradip Roy, being the

witnesses to the impugned deed and respondent no. 7 under Section 161 Cr.

P.C. As respondent no.8 failed to appear before the police authorities to give a

specimen signature and thumb impression, a letter bearing his signature was

seized for further investigation.

9. Heard the parties at length and perused the reports.

10. It has been held by a co-ordinate Bench of this Hon'ble Court in Palash

Debnath Vs. State of West Bengal & Ors. (WPA 21993 of 2023) that if

investigation is not done properly and materials are not collected during

investigation, Trial Court can hardly do anything to unearth the real truth.

Regarding the authority of this Court to determine the present petition, the

Hon'ble Supreme Court in Pooja Pal Vs. Union of India & Ors. reported in

(2016) 3 SCC 135, K. Saravanan Karuppasamy Vs. State of Tamil Nadu &

Ors. reported in (2014) 10 SCC 406 and State of West Bengal & Ors. Vs.

Committee for Protection of Democratic Rights reported in (2010) 3 SCC

571 reiterated that if deficiency in investigation is visible or the reality of the

investigation is covered by obvious deficiency, the Writ Court may be justified

in such circumstances to transfer the investigation to an independent

investigating agency.

-JWPA 18644 of 2024 -5- - -

11. Notwithstanding the specific direction for the continuation of the

investigation as per the order dated 12th October, 2023, the police authorities

have demonstrated gross inefficiency and negligence in the conduct of their

investigation, thereby allowing the unauthorized operations of the school to

continue unchecked. The authorities have failed in their legal obligations by

neglecting to submit the requisite prayer before the Learned Chief Judicial

Magistrate at Paschim Bardhaman for the recording of statements under

Section 164 of the Code of Criminal Procedure, with the sole exception of one

witness, Pradip Roy.

12. Moreover, the authorities have failed to appreciate the gravity of the

matter, which involves the defrauding of public funds and assets from a

Government Company. No necessary actions were taken, such as forwarding

the Lease Deed dated December 28, 2012 to the Forensic Science Laboratory

or the Questioned Document Examination Bureau for authentication.

Additionally, key documents and bank records, crucial for tracing the financial

transactions, remain unseized and unscrutinized.

13. Furthermore, the petitioners' miscellaneous application seeking a

progress report on the investigation has revealed that important witnesses,

including respondent Nos. 7 and 9, have not been interrogated. Despite

respondent Nos. 8 and 9 lacking any legal protection against coercive

measures, the authorities have shown a lack of diligence in apprehending

them. In addition, the authorities have disregarded critical findings from the

Internal Inquiry Committee meeting of SAIL held on 4th September, 2023,

which indicated potential collusion among the company's officers. Despite

subsequent complaints lodged against the accused for similar fraudulent

activities, no effective steps have been taken.

14. It has been held by Hon'ble Supreme Court in Pooja Pal (Supra) that:

"The observations and the propositions, though made in the backdrop of a

request for retrial, those pertaining to the essentiality of a fair and

-JWPA 18644 of 2024 -6- - -

complete investigation and trial as well as the solemn duty of the courts to

ensure the discernment of truth to administer even handed justice as

institutions of trust of public faith and confidence, are in our estimate, of

universal application and binding effect, transcending the factual settings

of a case. An adverse deduction vis-à-vis the quality of investigation and

a trial trivialising the cause of justice, is however the essential

prerequisite, for such remedial intervention by way of further

investigation, reinvestigation, additional evidence, retrial, etc. to be made

objectively but assuredly for the furtherance of the salutary objectives of

the justice dispensing system as contemplated in law, it being of

paramount pre-eminence."

15. In light of the above and for the reasons stated herein, it is imperative

that this case be transferred to an impartial investigating agency. Given the

scope and complexity of the fraud, it is hereby directed that the Detective

Department of the Asansol Durgapur Commissionerate assume responsibility

for the continuation of the investigation in this matter.

16. The Investigating Officer is directed to hand over the case diary to the

Detective Department, Assansol Durgapur Commissionerate to investigate

Kulti P.S. Case No. 467 of 2023 registered at Kulti Police Station.

17. With the above directions, the writ petition being WPA 18644 of 2024 is

disposed of.

18. Urgent Photostat certified copies of this judgment, if applied for, be

supplied to the parties upon fulfillment of requisite formalities.