Constitutional Court Can Direct CBI To Register Case Despite Its Decision To Close Preliminary Enquiry : Supreme Court

The Supreme Court observed that CBI has to register a regular case once a prima facie case for a cognizable offence is found in a preliminary enquiry.

There is no bar on the constitutional power to direct the CBI to register a regular case, in spite of its decision to close a preliminary enquiry, the bench of Justices DY Chandrachud and BV Nagarathna observed while directing registration of Regular Case by the CBI as regards the illegalities in the March, 2002 disinvestment of 26% shares of Hindustan Zinc Ltd.

In this case, a preliminary enquiry on the basis of 'confidential source information' in relation to the HZL disinvestment during 1997-2003, was registered by the CBI on 6 November 2013. Before the Court, it had submitted a self-contained note closing the preliminary enquiry. However, it had also come on record that the Additional Director, CBI on 22 August 2014, recommended the conversion of the preliminary enquiry into a regular case.

Referring to earlier judgments, the court observed that it is the duty of the CBI to convert a preliminary enquiry into a regular case, once a prima facie case involving the commission of a cognizable offence is evinced. The bench observed:

In Manohar Lal Sharma v. Principal Secretary, a three-judge Bench of this Court, while monitoring an investigation in a matter of national importance, had elaborated on the duty of the CBI to convert a preliminary enquiry into a regular case, once a prima facie case involving the commission of a cognizable offence is evinced. Justice R M Lodha, speaking on behalf of the Court, had also remarked on the nature of the powers of the constitutional court, while monitoring an investigation in exceptional matters.

"There is no bar on the constitutional power of this Court to direct the CBI to register a regular case, in spite of its decision to close a preliminary enquiry. Analogously, this Court has directed the police to register an FIR, once a cognizable offence has been disclosed to it. In Shashikant v. Central Bureau of Investigation a two-judge Bench of this Court, has held that this Court has the power to direct the CBI to conduct an investigation in exceptional cases, despite the CBI's decision to close the preliminary enquiry, even in the exercise of its writ jurisdiction"

Taking note of the material on record, the bench said that the disinvestment in 2002 evinces a prime facie case for registration of a regular case.

"Some of the aforesaid observations of the officials of the CBI, who recommended the conversion of the preliminary enquiry into a regular case, satisfy this Court's conscience for exercising its exceptional powers to direct the CBI to conduct an investigation into the matter. A prima facie case for a cognizable offence, as mandated in para 9.1 of the CBI Manual, has been made out in this case and warrants the registration of a regular case. The registration of a regular case, followed by a full-fledged investigation must be conducted. This Court shall be duly apprised of the status of the investigation.", the court said.

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