HARSHAD S MEHTA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Criminal Courts are normally constituted under the provisions of theCriminal Procedure Code. Section 6 of the Code of Criminal Procedure, 1973 (for short, 'the Code') provides for the classes of criminal Courts. In addition to the provisions contained in the Code or the old Code of 1898, from time to time, enactments have been passed providing that in respect of certain offences, there will be a Special Court manned by persons having specified qualifications. In the present appeals, we are concerned with such an enactment, namely, the Special Court (Trial of Offences Relating To Transactions in Securities) Act 1992 ('the Act' for short). The passing of the Act was preceded by an Ordinance which was promulgated on 6th June, 1992.

(2.) It is an Act to provide for the establishment of a Special Court for the trial of offences relating to transactions in securities and for matters connected therewith or incidental thereto. In the year 1992, large scale irregularities and malpractices were noticed by the Reserve Bank of India in relation to transactions in both the Government and other securities, indulged in by some brokers in collusion with the banks and financial institutions. The said irregularities and malpractices led to the diversion of funds from banks and financial institutions to the individual accounts of certain brokers. The Act deals with the situation and in particular, to ensure speedy recovery of the huge amount involved, to punish the guilty and restore confidence in and maintain the basic integrity and credibility of the banks and financial institutions.

(3.) The Act provides for establishment of Special Court to consist of one or more sitting Judges of the High Court nominated by the Chief Justice of the High Court within the local limits of whose jurisdiction the Special Court is situated, with the concurrence of the Chief Justice of India. Section 6 of the Act provides that the Special Court shall take cognizance of or try cases as are instituted before it or transferred to it. Section 3 provides for appointment and functions of custodian. Sub-section (2) of Section 3 provides that the custodian may, on being satisfied on information received that any person has been involved in any offence relating to transactions in securities after the first day of April, 1991 and on or before 6th June, 1992, notify the name of such person in the Official Gazette. 'Securities' includes :