Rahul Dokania Alias Rahul Dokania vs. State Of Jharkhand

Facts

The petitioners, Rahul Dokania, Puskar Mal Dokania, and Shyam Sundar Dokania, are alleged to have committed theft of coal and engaged in illegal mining operations without a license. They are the owners/directors of M/s Model Coke Industries and M/s M.V. Industries Pvt. Ltd., respectively. The case stems from Katras P.S. Case No. 296 of 2022. The petitioners sought to quash the cognizance order dated 26.11.2022 passed by the S.D.J.M., Dhanbad, and the entire criminal proceedings. The basis for quashing was an earlier order dated 09.12.2022 in MCA No. 6588 of 2022, which released seized coal. In that order, the Investigating Officer (I.O.) reported that the accused firms had purchased the seized coal, and the corresponding GST invoices were verified. The invoices were issued by the Superintendent, CGST and Central Excise, Katras Range.

Held

The Court held that the continuation of the criminal proceedings would amount to an abuse of the process of law. The Court found merit in the submissions of both the learned counsel for the petitioner and the learned Spl. P.P. that the seized coal had been validly purchased by the petitioners through their establishments, as evidenced by the Investigating Officer's report and the verification of GST invoices by the CGST Superintendent. Once it was established that the seized coal was validly purchased, no offence punishable under Section 379 of the Indian Penal Code, or under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, or the Rules made thereunder, was made out. The implication of the petitioners was based on suspicion arising from their inability to produce relevant documents at the time of seizure. Therefore, the Court quashed the order dated 26.11.2022 and the entire criminal proceedings. The Court also directed the Senior Superintendent of Police, Dhanbad, to take appropriate disciplinary action against the Investigating Officer.

Key Issues

1. Whether the cognizance order dated 26.11.2022 and the criminal proceedings arising from Katras P.S. Case No. 296 of 2022 are liable to be quashed, considering the Investigating Officer's report confirming the valid purchase of seized coal through GST-verified invoices? Petitioner's contention: The petitioners argued that since the Investigating Officer's report, as reflected in the order for the release of seized coal, confirmed that the coal was validly purchased and supported by GST invoices verified by the CGST Superintendent, no offence under Section 379 of the Indian Penal Code or the Mines and Minerals (Development and Regulation) Act, 1957, and related rules was made out. They contended that continuing the criminal proceedings would be an abuse of the process of law. Revenue/State's contention: The learned Spl. P.P. fairly submitted that the I.O. had indeed submitted a report confirming the valid purchase of the seized coal by the petitioners. The Spl. P.P. further submitted that the I.O. had deliberately filed a false charge sheet to harass the petitioners.