M/s Neeharika Infrastructure Pvt. Ltd. v. State of Maharashtra and others

Criminal Appeal · 2021 INSC 253Decided 13 Apr 2021
Criminal Appeal No. 330 of 2021
Dr. Justice D.Y. Chandrachud · Justice M.R. Shah · Justice Sanjiv Khanna

Background

The appellant company had lodged an FIR alleging forgery of a board resolution and fraudulent sale of its valuable property to a third party. The accused persons, while their anticipatory bail application was pending before the Sessions Court, separately approached the Bombay High Court under Article 226/Section 482 CrPC seeking to quash the FIR, and the High Court, while adjourning that quashing petition, passed an interim order directing that "no coercive measures shall be adopted" against them. The original complainant (the appellant) challenged this interim order before the Supreme Court, arguing that such a blanket protection from arrest was unwarranted while the quashing petition itself remained undecided.

Decision Breakdown

The Supreme Court held that the police have a statutory right and duty to investigate cognizable offences, and that courts should be slow to interfere with ongoing investigations; quashing of an FIR is meant to be an exception, not the rule, and should be confined to cases falling within the well-established categories (such as those in State of Haryana v. Bhajan Lal). It laid down detailed guidelines stating that High Courts should not grant blanket "no coercive steps"/"no arrest" interim orders routinely, casually or mechanically while a quashing petition is pending, accused persons should instead be relegated to seek anticipatory bail under Section 438 CrPC, and that any such interim protection, if granted in an exceptional case, must be supported by brief reasons and clearly define what "no coercive steps" actually means. Applying these principles, the Court quashed the High Court's interim "no coercive measures" direction in this case, clarified it had not commented on the merits of the FIR, and directed its judgment be circulated to all High Courts given repeated disregard of similar earlier rulings.

Lesson Learnt

A person seeking protection from arrest while a petition to quash an FIR is pending should generally apply for anticipatory bail rather than expect an automatic "no coercive steps" order from the High Court: such blanket interim protection is meant to be rare, reasoned, and clearly defined, not a routine shield against investigation.

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