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2006 Supreme(SC) 1253

2006(8) Supreme 994
SUPREME COURT OF INDIA
(From Patna High Court)
Dr. Arijit Pasayat and S.H. Kapadia, JJ.
Lalu Prasad @ Lalu Prasad Yadav - Appellant
versus
State of Bihar Through CBI (AHD) Patna - Respondent
Criminal Appeal No. 1276 of 2006
(Arising out of SLP (Crl.) No. 5865 of 2005)
With
Criminal Appeal No. 1278 OF 2006
(Arising out of SLP (Crl.) No. 5866 of 2005)
Decided on 6-12-2006
Counsel for the Parties :
For the Appellant : P.P. Rao, Sr. Advocate, P.H. Parekh, E.R. Kumar and Ms. Shakun Sharma (for M/s. P.H. Parekh & Co.), Advocates.
For the Respondent :Mohan Parasaran, A.S.G., Amarjit Singh, A.S.G., P. Parmeswaran, Chidananda D.L., K.K. Senthilvelan, Gaurav Dhingra, Gopal Singh and Nishakant Pandey, Advocates.

IMPORTANT POINTS
1. In cases covered under the P.C. Act, the sanction is of automatic nature and thus factual aspects are of little or no consequence. Conversely, u/s 197 the Code of Criminal Procedure, the substratum and basic features of the case have to be considered to find out whether the alleged act has any nexus to the discharge of duties.
2. If the reasons are recorded in case of framing of charge, there is likelihood of prejudicing the case of the accused put on trial.

Headnote:(i) Interpretation of statute – Two principles of construction “one relating to causus omissus and the other in regard to reading the statute as a whole” appear to be well settled – Under the first principle a causus omissus cannot be supplied by the Court except in the case of clear necessity but at the same time a causus omissus should not be readily inferred – This would be more so if literal construction of a particular clause leads to manifestly absurd or anomalous results which could not have been intended by the Legislature – The grammatical and ordinary sense of the words is to be adhered to unless that would lead to some absurdity or some repugnance or inconsistency with the rest of the instrument, in which case the grammatical and ordinary sense of the words may be modified, so as to avoid that absurdity and inconsistency, but no further. (Para 7 and 9)

       (ii) Prevention of Corruption Act, 1947 – Section 6(1) corresponding to Section 19(1) of the 1988 Act – The plea that the effect of Law Commission’s report and Dr. Bakshi Tekchand report has not been considered by the Legislature and therefore this is a case of “causus omissus” is without any substance. (Para 10)

       (iii) Prevention of Corruption Act, 1988 – Section 19 r/w Section 197, Code of Criminal Procedure, 1973 – both these provisions operate in conceptually different fields – In cases covered under the Act, the sanction is of automatic nature and thus factual aspects are of little or no consequence – Conversely, u/s 197 of the Code, the substratum and basic features of the case have to be considered to find out whether the alleged act has any nexus to the discharge of duties – Position is not so in case of Section 19 of the Act.(Para 11)

       (iv) Code of Criminal Procedure, 1973 – Sections 227, 239 and 245 – The moment the order of discharge is passed it is imperative to record the reasons, but for framing of charge the Court is only required to form an opinion about commitment of offence by the accused – In case of discharge of the accused the expression “reasons” has been used while in the case of framing of a charge the expression “opinion” is used because if the reasons are recorded in case of framing of charge, there is likelihood of prejudicing the case of the accused put on trial. (Para 17)

       Facts of the case:

       (A)Sanction for prosecution granted against the appellants under Section 19(1)(b) of the P.C. Act, 1988 and Section 197 of the Code of Criminal Procedure, 1973 challenged.

       (B)Findings of the Court: Grant of sanction upheld.

       (C)There is no need for giving reasons at the time of framing of charge.

       

JUDGMENT

Dr. Arijit Pasayat, J. - Leave granted.

2. In both these appeals the basic question raised relates to the validity of sanction to prosecute the appellants for offence punishable under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988 (in short the ‘Act’). Sanction has been accorded both under the provisions of Section 19(1)(b) of the Act and Section 197 of the Code of Criminal Procedure, 1973 (in short the ‘Code’).

3. Plea relating to cognizance of the offence is that previous sanction is necessary under the Act if the public servant does not hold the same office which he allegedly abused on the date when the cognizance was taken by the Court. Stand of the appellants is that even though a public servant does not hold the same office and holds some other office, then also sanction is necessary. It is stated in that context that the decision in R.S. Nayak v A.R. Antulay (1984 (2) SCC 183) is per incuriam because the effect of Section 19(2) of the Act had not been considered. It is also submitted that the effect of the recommendations made by the Law Commission in its 41st report which necessitated sanction in terms of Section 197 of the Code extending the protection of sanction for a retired public servant as well should have been also extended under Section 6(1) of the Prevention of Corruption Act, 1947 (in short the ‘1947 Act’) corresponding to Section 19(1) of the Act. This according to us is a case of causus omissus. The decision in R. S. Nayak’s case (supra) cannot be regarded as a binding precedent in respect of the issues which did not relate to the three questions which were required to be decided in that case. The order rejecting the plea of lack of sanction and the jurisdiction is required to be passed by a speaking order. The Secretary to the Government had no jurisdiction to sign the sanction order on the instructions of the Governor. Therefore, the so-called sanction of the Governor has no sanctity in the eye of law. There is no material to show that the alleged disproportionate assets were relatable to a period when Smt. Rabri Devi was the Chief Minister. At that time she was also either holding the office of MLC or MLA and, therefore, the sanction granted has no validity.

4. It is to be noted that in Lalu Prasad Yadav’s case the sanction had been given by the Governor. The prosecution did not obtain the sanction separately so far as the appellant Rabri Devi is concerned as she was only a house wife and not a public servant during the relevant period. In the sanction accorded in respect of the appellant- Lalu Prasad Yadav, it has been expressly mentioned that the acts of Smt. Rabri Devi amounted to aiding and abetting of commission of offence under Section 13(1)(e) by her husband Lalu Prasad Yadav and she was thus liable to be prosecuted for offence punishable under Sections 107 and 109 of the Indian Penal Code, 1860 (in short the ‘IPC’).

5. One of the submissions made by Shri P.P. Rao, learned senior counsel appearing for the appellants is that the courts below had erroneously come to the conclusion that both in the case of discharge and for framing of charge no reasons are necessarily to be recorded. It is submitted that report of Dr. Bakshi Tekchand Committee which formed the basis of inserting Sub-section (2) of Section 6 of 1947 Act admits of no doubt and the same envisages two offices being held by the public servants one at the time of alleged offence and other at the time of taking cognizance.

6. Learned counsel for the respondent-State submitted that none of the pleas raised have any substance in law.

7. So far as the plea relating to causus omissus is concerned the position in law is as follows:

Two principles of construction one relating to causus omissus and the other in regard to reading the statute as a whole appear to be well settled. Under the first principle a causus omissus cannot be supplied by the Court except in the case of clear necessity and when reaso





























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