Does a Special Leave Petition under Article 136 CrPC empower the Supreme Court to close overlapping FIRs and grant bail once a charge-sheet is filed and mala fides remain unsubstantiated?

 

Summary

Category Data
Court Supreme Court of India
Case Number SLP(Crl) No.-011375 – 2025
Diary Number 41686/2025
Judge Name HON’BLE MR. JUSTICE SANJAY KUMAR
Bench HON’BLE MR. JUSTICE SANJAY KUMAR; HON’BLE MR. JUSTICE K. VINOD CHANDRAN
Concurring or Dissenting Judges Both judges concurred in the judgment
Precedent Value Binding Authority
Overrules / Affirms Affirms existing Supreme Court practice on SLP(Crl.) bail and closure of parallel proceedings
Type of Law Criminal law (procedure, bail, quashing, corporate insolvency interface)
Questions of Law Whether an SLP(Crl.) can result in closure of multiple FIRs on same facts and bail post-charge-sheet when malafide allegation is rejected
Ratio Decidendi
  • Allegation of mala fide harassment must be substantiated before quashing an FIR.
  • Parallel proceedings on same facts can be closed if not pressed or stayed by appropriate courts.
  • Once a charge-sheet is filed and allegations remain unsubstantiated, petitioners are entitled to bail in SLP(Crl.) subject to conditions.
  • The Court can permit impleading of an Interim Resolution Professional to represent corporate interest in criminal proceedings arising from insolvency context.
Facts as Summarised by the Court Petitioners accused in FIR No. 396/2025 at Agra sought quashing on ground of civil nature and mala fide harassment; High Court declined relief. Parallel FIRs before Delhi and Agra magistracies were either stayed or withdrawn. A final report (charge-sheet) was filed on 07.07.2025.

Practical Impact

Category Impact
Binding On All subordinate courts when dealing with SLP(Crl.) bail and multiplicity of proceedings
Persuasive For High Courts considering consolidation or quashing of overlapping FIRs
Follows Established Supreme Court practice on SLP(Crl.) bail and inherent power to manage parallel criminal proceedings

What’s New / What Lawyers Should Note

  • Supreme Court permitted impleading of an Interim Resolution Professional in criminal proceedings connected to corporate insolvency.
  • Parallel FIRs on identical facts may be closed (as “not pressed” or stayed) without prejudice when parties so agree.
  • Once a charge-sheet is filed and investigation fails to substantiate allegations, bail can be granted in SLP(Crl.) proceedings.
  • Petitioners need not be taken into custody when charge-sheet is on record and malafide intent is not shown.
  • Complainant’s choice to withdraw or not press parallel applications is respected, streamlining litigation.

Summary of Legal Reasoning

  1. Petitioners’ mala fide harassment plea was rejected by the High Court; no fresh material to quash FIR No. 396/2025.
  2. Three FIRs on same facts were identified; two were either stayed by Sessions Judge or withdrawn as “not pressed” by Magistrate.
  3. Charge-sheet (Final Report No. 144/2025 dated 07.07.2025) found allegations unsubstantiated—no reason to deny bail.
  4. Special Leave jurisdiction under Article 136 permits bail direction when charge-sheet is filed and merits are not shaken.
  5. Interim Resolution Professional impleaded to protect corporate interests; entitled to summon witnesses.

Arguments by the Parties

Petitioners

  • FIR relates to a civil dispute, registered with mala fide intent to harass.
  • Three overlapping criminal proceedings amount to multiplicity and abuse of process.

Respondents

  • Allegation of cheating: refund was diverted to another account with the same name, indicating collusion.
  • Corporate entity’s interests before NCLT require criminal forum protection; IRP must be heard.

Factual Background

  1. FIR No. 396 of 2025 was registered at PS Tajganj, Agra alleging cheating in a corporate-related transaction.
  2. Petitioners sought quashing before the High Court on grounds of civil nature and mala fide harassment; relief was denied.
  3. Parallel FIRs/applications under Sections 156(3) and 173(4) CrPC in Delhi and Agra were respectively stayed and withdrawn.
  4. Investigation concluded with a final report finding no evidence, and a charge-sheet was filed on 07.07.2025.
  5. On SLP(Crl.), Supreme Court directed closure of parallel cases, impleaded the IRP, and granted bail on conditions.

Statutory Analysis

No detailed statutory interpretation was undertaken; the Court applied established principles of SLP(Crl.) bail and closure of parallel proceedings without invoking or interpreting specific provisions afresh.

Procedural Innovations

  • Authorization to implead the Interim Resolution Professional, representing a corporate creditor, in criminal proceedings originated from an insolvency context.
  • Streamlining of parallel criminal processes by closure of non-pressed or stayed FIRs on same facts.

Alert Indicators

  • ✔ Precedent Followed – Affirms established SLP(Crl.) bail and inherent powers to manage multiplicity of FIRs in Supreme Court proceedings.

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