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Synopsis

The Supreme Court recently allowed a plea by the CBI against the Karnataka High Court's judgment which quashed the criminal proceedings in a case registered for alleged illegal exports of iron ore following the apex court's order of 2013.

A bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar set aside the Karnataka High Court's judgment of December 28, 2013, and restored the matter to the file of the High Court particularly filed by M/s MSPL Ltd.

Referring to the contents of the CBI's charge sheet, the bench said, "We are of the view that the impugned judgment of the High Court quashing the chargesheet and the investigation by the CBI, on account of violation of clause (a) in the record of the proceedings (in the Supreme Court) dated 16.09.2013, is unsustainable and contrary to the facts on record."

Examining the CBI's plea, the bench referred to the record of proceedings of the apex court of September 16, 2013, in the writ petition, titled “Samaj Parivartan Samudaya & Ors Vs State of Karnataka & Ors”.

It pointed out that clause (a), postulated few conditions for the Central Bureau of Investigation to register criminal cases. The first condition was that the exporters in question should have been enquired into in the preliminary enquiry; secondly, they should have exported iron ore of more than 50,000 Metric Tons without a permit; and thirdly, their names should have been mentioned by the Central Empowered Committee in its report of September 05, 2012.

"It is pertinent to note that clause (a) in the RoP dated 16.09.2013 only related to the initiation of investigation and enquiry by the CBI. The First Information Report, which is placed on record, would show that the total quantum that was sought to be investigated in the case of M/s MSPL Limited was 1,95,085 MT iron ore. This exercise would show that the condition of 50,000 MT was satisfied," the bench said.

During the course of the hearing, the court was informed about the investigation carried out in the charge sheet, which revealed that MSPL Ltd had exported 98,080 MTs of iron ore without valid permits.

"Out of the said quantity, transactions relating to 58,600 MTs of iron ore were found to have been investigated and were covered by other cases registered by law enforcing agencies against others, details of which were mentioned. Accordingly, the final chargesheet submitted by the CBI was in respect of 39,480 MT only. The details of the said exports are mentioned in the chargesheet," the bench noted.

During the hearing, the court was informed on behalf of M/s MSPL Limited that a number of other grounds and issues were also raised in the criminal petition.

"The effect of the present order would be that Criminal Petition No. 101257/2022 filed by M/s MSPL Limited will stand restored to its original number and all other issues and contentions will be examined except the issue and contention that the investigation made by the CBI was contrary to clause (a) in the RoP dated 16.09.2013," the bench clarified.

To cut short the delay, the court directed the parties to appear before the High Court on February 03, 2025, when the next date of hearing will be fixed.

The court, however, clarified it did not express any opinion on the merits of other issues arising in the case.

Case Title: Central Bureau of Investigation Vs Narendrakumar Baldota & Ors