Friday 23 May 2014

When contemnor becomes entitled to get benefit of doubt?


This Court in Sahdeo alias Sahdeo Singh v. State of Uttar Pradesh & Ors., (2010) 3 SCC 705,
after placing reliance on a large number of earlier judgments of this Court, held that proceedings of
contempt are quasi criminal in nature and the burden and standard of proof required is the same as in
criminal cases. Charges have to be proved beyond reasonable doubt and alleged contemnor becomes
entitled to the benefit of doubt as it would be very hazardous to impose sentence in contempt proceedings
on some probabilities

SUPREME COURT OF INDIA
(DR. B.S. CHAUHAN AND S.A. BOBDE, JJ.)
ASHOK KUMAR AGGARWAL
Appellant
VERSUS
NEERAJ KUMAR & ANR.
Respondents
Criminal Appeal No. 1839 of 2013-Decided on 22-11-2013.
Citation;(2014) 3 SCC 602

Dr. B.S. Chauhan, J.:- This appeal has been preferred against the impugned judgment and final order
dated 30.07.2007 passed by the High Court of Delhi at New Delhi in Contempt Case (Criminal) No. 8 of
2007 rejecting the said application filed by the appellant.
2. Facts and circumstances as stated by the parties, giving rise to this appeal are that:
(A) The appellant had been working as Deputy Director, Enforcement of Delhi Zone under the
Directorate of Enforcement from 6.11.1996, and in that capacity, he conducted raids on various
suspects under the provisions of Foreign Exchange Regulation Act (FERA), 1973 including one
S.C. Barjatya, an alleged Hawala operator, as he had received an information that an amount of
US$ 1.5 lakhs had been transferred from the account of Royalle Foundation in Swiss Bank
Corporation, Zurich to the account of one S.K. Kapoor in HSBC Bank, Hong Kong.
Subsequently, the said Shri S.C. Barjatya filed a complaint that the above transaction is forged
and he is being falsely implicated. In view thereof, case No. RC S18/E0001/1999 was registered
on 29.1.1999 against unknown officers of the Enforcement Directorate (hereinafter referred to as
`ED’) and while enquiring into this complaint, the statements of various other persons were
recorded. Passport of the appellant was seized on 4.3.1999. The statement of one Abhishek
Verma was recorded under Section 161 of Code of Criminal Procedure, 1973, (hereinafter
referred to as `Cr.P.C.’), who had been arrested in that case. He was later enlarged on bail by the
court and his statement under Section 164 Cr.P.C. was recorded, wherein he had stated that the
appellant had been threatening him and extorting money from him while seeking information in
respect of dealings in foreign exchange.
(B) A look out notice was issued against the appellant through the Interpol as he was absconding.
The appellant was arrested on 23.12.1999 from Saharanpur where he was staying in a hotel under
a fictitious name. The appellant was remanded to police custody for 5 days in the first instance,
which was later extended to another 2 days till 31.12.1999. During the police custody, the
appellant alleged to have been physically abused and humiliated.
(C) The appellant moved a bail application on 24.12.1999 which came for hearing on 3.1.2000
and 4.1.2000. During the course of proceedings, the learned Special Judge was shown a document

purported to have been emanated from the Interpol Singapore on 29.12.1999 and sent to Interpol
New Delhi in response to a requisition sent by Central Bureau of Investigation (hereinafter
referred to as the `CBI’) through the Interpol Delhi on 16.12.1999. On the basis of the said
information received from Interpol Singapore, the respondents- officers argued that the appellant
had been in Singapore from 10.2.1999 to 14.2.1999 and though his passport which had been
impounded did not contain any such stamp, and therefore he was possessing and using a forged
passport with the same number. The Special Judge accepted the submissions and rejected the
application of the appellant for bail vide order dated 6.1.2000.
(D) The respondents had been seeking more information from the Interpol Singapore and in
response to the same, a reply dated 7.1.2000 was received that earlier communication dated
29.12.1999 was incorrect and the appellant did not enter into Singapore on the aforesaid dates i.e.
10.2.1999 to 14.2.1999. The said information dated 7.1.2000 was further confirmed by Interpol
Singapore vide letter dated 12.1.2000. In further correspondence, the Interpol Singapore admitted
its mistake vide communication dated 12.1.2000.
(E) Respondent No. 2 filed a remand application dated 13.1.2000 seeking further judicial custody
of the appellant for 14 days. In that application also, it was not disclosed that the respondents had
received a communication from Interpol Singapore that earlier communication informing about
the appellant being in Singapore was not correct. The respondents continued to withhold the said
information and did not bring it to the notice of the court. Even in a bail application filed by the
appellant on 25.1.2000, claims were made that the appellant had not gone to Singapore on the
aforesaid dates. Reply to the said application was filed by the CBI on 27.1.2000 denying the said
facts without bringing the real facts to the knowledge of the court. It was only on 27.1.2000 when
the appellant’s counsel insisted that the appellant had not gone to Singapore in February 1999 that
the respondent no. 2, the investigating officer, admitted that the appellant did not visit Singapore
on the dates as alleged earlier and the investigating agency had subsequently received information
from Interpol Singapore that the information furnished earlier was not factually correct. After
taking into consideration the above fact, the appellant was granted bail wherein all the aforesaid
facts had been incorporated in the bail order dated 29.1.2000.
(F) As per the appellant, on 26.7.2000, in another case before the Central Administrative
Tribunal, he came to know about the subsequent communication sent by Interpol Singapore in
this respect and thus, the appellant filed a Criminal Writ Petition No. 600 of 2001 before the High
Court of Delhi to take action against the respondents which was disposed of vide order dated
28.5.2001 observing that the appellant may seek relief before the court of Special Judge where,
according to the appellant, the CBI had misrepresented or concealed the correct information.
Thus, in view of the observations made by the High Court, the appellant filed an application
under Section 340 read with Section 195 Cr.P.C. on 1.6.2001 before the Special Judge for taking
action against the respondents for suppressing the material facts. However, the said application
was dismissed by the Special Judge vide order dated 14.2.2002.
(G) Aggrieved, the appellant took the matter to the High Court by filing an Appeal No. 199 of
2002. The High Court disposed of the said appeal vide judgment and order dated 16.12.2005
remanding the matter to the Special Judge to hear the parties on the application dated 1.6.2001
only on the issue of initiation of contempt proceedings and to answer the same in accordance with
law. In view thereof, the Special Judge heard the said application and dismissed the same vide
order dated 5.2.2007.
(H) Aggrieved, the appellant filed Criminal Contempt Petition No. 8 of 2007 on 16.5.2007 before
the High Court of Delhi under Article 215 of the Constitution read with the provisions of the

Contempt of Courts Act, 1971 (hereinafter referred to as the ‘Act 1971’). On receiving notice in
the said case, the respondents filed reply.
(I) The High Court disposed of the said petition after hearing the parties vide impugned judgment
and order dated 30.7.2007 observing that the suppression or misrepresentation was not deliberate.
Hence, this appeal.
3. Shri Ram Jethmalani, learned senior counsel appearing on behalf of the appellant has submitted that the
respondents had been fully aware, after receiving the communication from Interpol Singapore, that
information furnished to them earlier by the said Singapore authorities was not factually correct. In spite
of the fact that the matter had been listed time and again before learned Special Judge, such information
was withheld and being under the same impression that the appellant had travelled to Singapore, his
judicial custody was extended. Even in the application filed by the respondents for remand for a further
period, such a material fact had not been disclosed. It was only at a much later stage when the appellant
had already suffered unwarranted judicial custody and the counsel for the appellant had been insisting that
appellant did not visit Singapore between 10.2.1999 and 14.2.1999, the Investigating Officer/Respondent
no.2 revealed that they have received information from the Interpol Singapore on 7.1.2000 that the
version of the appellant was correct. Therefore, the appellant had been subjected to humiliation, insult and
remained in judicial custody for a long time. Even the remand application dated 13.1.2000 was filed
without disclosing such a fact. The appellant could be bailed out only on 29.1.2000 after remaining in jail
for 36 days. It was the solemn duty of the investigating officer not to suppress the material fact from the
court and the appellant would not have to face 36 days judicial custody in jail. The appellant had been
approaching the authorities and courts time and again, however, could not get any relief from any
authority or court. The application of contempt filed earlier was rejected by the Special Court. When the
appellant approached the High Court by filing a criminal writ petition, the case was remanded to the
Special Court on a particular issue. After remand, the case was considered and the same was also
dismissed by the Special Judge. The High Court while dealing with the case under Article 215 of the
Constitution, without giving any reason whatsoever, recorded a findings of fact that there was no
deliberate attempt to cause any prejudice to the appellant. Hence, a finding not based on any reasoning or
substantiated by any evidence, is not a judgment-in-fact. Therefore, the appeal deserves to be allowed.
4. Shri Ranjit Kumar, learned senior counsel appearing on behalf of both the respondents, has vehemently
opposed the appeal raising a large number of issues, inter-alia, issue of limitation, jurisdiction of the court
to entertain the contempt application; and referred to a large number of judgments to submit that the
findings of fact recorded by the High Court that there was no deliberate attempt to cause any prejudice to
the appellant was correct. Respondents had been working with all sincerity and their work has always
been appreciated and a large number of certificates to that extent had been issued to them. Therefore, the
appeal is liable to be dismissed.
5. We have considered the rival submissions made by the learned counsel for the parties and perused the
records.
6. There is no dispute on the factual matrix of the case. The appellant had been arrested on the suspicion
that he was having two passports and on the strength of one of them, he had visited Singapore between
10.2.1999 and 14.2.1999 and such a fact had been affirmed by the Interpol Singapore on queries from the
Indian authorities. However, on 7.1.2000, the Interpol Singapore by a Memo dated 7.1.2000 informed the
Indian investigating agency that the information furnished by them earlier was factually incorrect and the
appellant had not visited Singapore between 10.2.1999 and 14.2.1999. Subsequent thereto, the appellant
filed a Criminal Writ Petition No. 600 of 2001 before the Delhi High Court; a case before the Special
Judge, an appeal before the High Court and again the matter had been agitated before the Special Judge.

After loosing the battle, the appellant approached the High Court under Article 215 of the Constitution.
The appellant was arrested on 23.12.1999 and was released on bail on 24.1.2000, thus, he remained in jail
for 36 days.
7. It is also on record that the Singapore authorities had apologized for furnishing wrong information by
them. The judgment and order dated 5.2.2007 of the learned Special Judge makes it crystal clear that the
learned Special Judge had given an elaborate judgment deciding two issues, namely, one relating to
limitation under Section 20 of the Act 1971 and, secondly, as to whether the suppression of material fact
was intentional or motivated on the part of respondents and after hearing the matter, the learned Special
Judge negated both the issues against the appellant holding that the application was barred by limitation
as provided under Section 20 of the Act 1971 as cognizance could not be taken after one year of the date
on which the contempt had been committed. On the second issue, a finding has been recorded that there
was no suppression of material fact by the respondents intentionally and deliberately as there was no
motive to obstruct the administration of justice or to interfere with due course of proceedings.
8. Earlier before the appellate court in Criminal Appeal No. 199 of 2002, the same issues had been
agitated and the matter was remanded to the learned Special Court to decide the specific issue so far as it
relates to the initiation of contempt proceedings vide its judgment and order dated 16.12.2005. Even the
order dated 29.1.2000 makes it evident that the first bail application of the appellant was rejected on
6.1.2000 considering the issues raised by the investigating agency, particularly the Interpol message
suggesting that the appellant had visited Singapore on his passport no. S-243227 and remained there from
10.2.1999 to 14.2.1999, whereas the passport impounded by the CBI during the investigation did not
show any entry relating to his aforesaid travel to Singapore. However, on 27.1.2000, the investigating
officer admitted before the said court that a message was received from Interpol Singapore to the effect
that the appellant did not visit Singapore from 10.2.1999 to 14.2.1999.
9. The High Court while dealing with the contempt petition under Article 215 of the Constitution has
taken note of the facts referred to hereinabove as well as of the respective submissions advanced by the
learned counsel for the parties, inter-alia, the submissions advanced by the respondents in respect of
maintainability of the petition and limitation etc. However, without adverting to any of the issues so
raised, the court abruptly came to the conclusion that the respondents did not intentionally suppress the
material facts. The relevant part of the judgment reads as under:
“We find that although information was available with the CBI that the petitioner had not visited
Singapore prior to 13.1.2000 yet there appears to be no deliberate attempt to cause any prejudice
to the petitioner. The application for bail which came up before the Court was supported by an
affidavit setting out the facts that the petitioner had not visited Singapore during the period when
his passport was with the CBI which fact was duly confirmed by the public prosecutor. In that
view of the matter, we are of the opinion that there was no deliberate concealment of material to
the prejudice of the petitioner. The petition is, therefore, dismissed.”
(Emphasis added)
10. The respondents before this Court had also adverted to the issue of the procedure adopted by the
appellant moving the Trial Court as well as the High Court in contempt matter and the procedure adopted
by those Courts and also to the issue of limitation. It is submitted that the High Court could not have
proceeded with the case under Article 215 of the Constitution ignoring the limitation prescribed under the
Act 1971. More so, in a criminal case where two views are possible the court must decide in favour of the
person proceeded against. In order to fortify his submissions, Shri Ranjit Kumar, learned senior counsel
placed reliance on the judgments in Pallav Sheth v. Custodian & Ors., (2001) 7 SCC 549; Chhotu
Ram v. Urvashi Gulati & Anr., (2001) 7 SCC 530; J.R. Parashar, Advocate & Ors. v. Prasant

Bhushan, Advocate & Ors., (2001) 6 SCC 735; and Biman Bose v. State of W.B. & Ors., (2004) 13
SCC 95.
11. This Court in Sahdeo alias Sahdeo Singh v. State of Uttar Pradesh & Ors., (2010) 3 SCC 705,
after placing reliance on a large number of earlier judgments of this Court, held that proceedings of
contempt are quasi criminal in nature and the burden and standard of proof required is the same as in
criminal cases. Charges have to be proved beyond reasonable doubt and alleged contemnor becomes
entitled to the benefit of doubt as it would be very hazardous to impose sentence in contempt proceedings
on some probabilities.
12. In Dr. L.P. Misra v. State of U.P., AIR 1998 SC 3337; Three Cheers Entertainment Pvt. Ltd. &
Ors. v. C.E.S.C. Ltd., AIR 2009 SC 735; and R.S. Sujatha v. State of Karnataka & Ors., (2011) 5
SCC 689, this Court held that the power under Article 215 of the Constitution can be exercised only in
accordance with the procedure prescribed by law.
13. In view of the above, the High Court was required to examine as to whether the proper procedure has
been adopted in bringing the petition under Article 215 of the Constitution and as to whether the
limitation as prescribed under Section 20 of the Act 1971 was attracted in the case. The High Court did
not advert to any of such issue of paramount importance. More so, no reasoning has been given to reach a
conclusion that no deliberate attempt was made by the respondents to cause any prejudice to the
appellant. Thus, we are of the considered opinion that as both the parties had raised issues on facts as well
as on law, the High Court ought to have dealt with the case adverting to all relevant issues, particularly
when the appellant had made an allegation that his liberty had been jeopardised by the respondents by
interfering with the course of justice by misleading the court.
14. As a result, we set aside the judgment and order impugned and remit the case to the High Court to
decide afresh answering all the factual and legal issues raised by the parties. The appeal stands disposed
of accordingly.
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