State of WB v. Swapan Kumar Guha

Quick Summary

The Supreme Court made one point clear: police cannot start an investigation just because they wish to. Under Section 157 CrPC, there must be a real reason to suspect a cognizable offence. That reason must appear, at least on the face of it, from the FIR. In this case, the FIR against Sanchaita Investments and its partners did not show any offence under the Prize Chits Act. So, the Court quashed the investigation and all steps flowing from it.

Issues

• Can authorities start or continue an investigation under Section 157 CrPC when the FIR does not allege facts that disclose a cognizable offence?

Rules

• Police do not have unfettered discretion to begin investigation under Section 157 CrPC.
• They must have a reasonable ground to suspect a cognizable offence; this should be visible prima facie from the FIR. If yes, the investigation may proceed; if not, it should not begin.

Arguments

Judgment

• The Supreme Court upheld the High Court’s intervention.
• The FIR and accompanying materials did not disclose any offence under the Prize Chits Act.
• Therefore, the proceedings and investigation had to be quashed; no further probe under the Act could continue.

Ratio

Police power to investigate under Section 157 CrPC arises only when the FIR shows, on its face, facts indicating a cognizable offence. Absent such disclosure, there is no lawful “reason to suspect” and the investigation must be stopped or quashed.

Why It Matters

• Protects citizens and businesses from fishing inquiries.
• Sets a clear threshold: FIR must show a cognizable offence.
• Guides courts on when to quash investigations lacking legal basis.

Key Takeaways

• No unfettered power: Section 157 requires a reasonable suspicion.
• FIR centric: Suspicion must arise from the FIR itself.
• Quashing proper: If no offence is disclosed, investigation cannot continue.

Mnemonic + 3-Step Hook

Mnemonic: “SWAPAN = Suspicion Without A Prima-facie Allegation? No.”

1. Check FIR: Does it show a cognizable offence?
2. Test Reason: Is the suspicion reasonable and based on FIR?
3. Stop/Start: If no offence appears, stop; if yes, proceed.

IRAC Outline

Glossary

Cognizable Offence

An offence for which police can register FIR and arrest without warrant.

Reason to Suspect

Objective basis to think a cognizable offence occurred—must appear from the FIR for Section 157.

Prize Chits Act

Short for the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.