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2016 Supreme(SC) 470

SUPREME COURT OF INDIA
Dipak Misra, Shiva Kirti Singh, JJ.
Punjab State Warehousing Corp. – Appellant
Versus
Bhushan Chander & Anr. – Respondents
Criminal Appeal No. 159 of 2016 (@ S.L.P.(Criminal) No. 3906 of 2012)
Decided On : 29-06-2016

IMPORTANT POINTS
Only an act constituting an offence, directly and reasonably connected with official duty will require sanction for prosecution.
Fabricating false records and misappropriation of funds and cheating cannot be official duty of a public servant.

Headnote:(a) Code of Criminal Procedure, 1973 – Section 197 – Can be construed narrowly as well as widely – If construed too narrowly, the section will be rendered altogether sterile – In the wider sense, it will cover every act constituting an offence, committed in the course of the same transaction in which the official duty is performed or purports to be performed – Right approach lies between these two extremes – Public servant not entitled to protection of section 197 in every offence – Only an act constituting an offence, directly and reasonably connected with official duty will require sanction for prosecution. (Para 13, 14)

       (1979) 4 SCC 177, AIR 1966 SC 220; AIR 1956 SC 44 – Relied upon

       1939 FCR 159 : AIR 1939 FC 43; 1948 FCR 19 : AIR 1948 PC 128 – Referred

       AIR 1955 SC 287; AIR 1955 SC 309 – Distinguished

       (b) Code of Criminal Procedure, 1973 – Section 197 – Fabricating false records and misappropriation of funds and cheating cannot be official duty of a public servant – Official capacity only enables him to fabricate the record or misappropriate the public fund or cheat – Official duty cannot be said to be integrally connected with official duty. (Para 20, 21

       (1997) 5 SCC 326; (1999) 5 SCC 690; (2004) 2 SCC 349; (2007) 1 SCC 1; (2009) 3 SCC 398; (1970) 2 SCC 56 – Relied upon

       (c) Code of Criminal Procedure, 1973 – Section 197 – Acts of omission or commission totally alien to the discharge of the official duty – Section 197 cannot be invoked – Instantly issue being entrustment and missing of the entrusted items – The act cannot be done as public servant – Breach of trust cannot be connected with official duty – Section 197 not attracted. (Para 22)

       AIR 1967 SC 776; AIR 1956 SC 44; AIR 1957 SC 458 – Relied upon

       1939 FCR 159 : AIR 1939 FC 43; 1948 FCR 19 : AIR 1948 PC 128; AIR 1948 PC 156; AIR 1949 PC 117; AIR 1954 SC 455; (1993) 3 SCC 339; (2006) 1 SCC (Cri) 432; (2006) 2 SCC (Cri) 358; (2007) 3 RCR (Criminal) 496; (2004) 2 Cri. CC 575; (2009) 6 SCC 372; (2008) 11 SCC 289; (2009) 3 SCC 398; (2007) 1 RCR (Criminal) 1; (2008) 2 RCR (Criminal) 208; 1988 (1) RCR (Criminal) 35; AIR 1966 SC 220; (1993) 3 SCC 339 – Referred

       (d) Code of Criminal Procedure, 1973 – Section 197 – Employees of Corporations – Section draws distinction – In case of higher ranked officials only sanction should be required – If a public servant is appointed to another office, his official acts in later office would relate to his former office. (Para 24)

       (1990) 4 SCC 169 – Relied upon

       (e) Administration of justice – Conduct of case by Government Companies or the public undertakings – Favourable decision in Md. Hadi Raja not cited before High Court – Supreme Court cannot take notice thereof – Concerted effort should be made by the Government Companies or the public undertakings. (Para 26, 27)

       AIR 1998 SC 1945 – Relied upon

       Facts of the case:

       The first respondent was convicted and sentenced u/s 409/467/468/471 IPC.

       The High Court held that the trial was invalid in its entirety for want of sanction u/s 197 Cr PC.

       Finding of the Court:

       Appellants are not entitled to protection of section 197.

       Result: Appeals allowed.

JUDGMENT :

Dipak Misra, J.

The singular question that has emanated in this appeal, by special leave, is whether the High Court has correctly accepted the submission advanced on behalf of the first respondent, who was convicted for offences punishable under Section 409/467/468/471 of the Indian Penal Code, 1860 (for short, ‘IPC’) and had been awarded sentence for each of the offences with the stipulation that they would run concurrently, that he being an employee of the appellant Corporation is a public servant and the trial had commenced without obtaining sanction under Section 197 of the Code of Criminal Procedure, 1973 (CrPC) and hence, the trial in entirety was invalid and as a result the conviction and sentence deserved to be set aside.

2. As far as the factual narration is concerned, suffice it to state that the Managing Director of the Corporation had written a letter on 28.6.1989 to the concerned police authority to register a case against the first respondent for offences punishable under Sections 409/467/468 and 471 of the IPC or any other appropriate provision of law. During investigation, the investigating agency found that the accused who was working as a Godown Assistant in the Corporation had misappropriated 11 gunny bales value of which was Rs.38,841/-; that he had tampered with the record of the department; and accordingly the police authorities filed the charge-sheet for the aforesaid offences before the court of competent Judicial Magistrate. The learned Magistrate on the basis of evidence brought on record, found that the prosecution had been able to bring home the guilt against the accused and accordingly sentenced him to suffer rigorous imprisonment for three years under Section 467 and 409 IPC and two years under Section 468/471 IPC with separate default clauses. The judgment of conviction and order of sentence was assailed in appeal before the learned Session Judge, Firozpur and the matter was finally heard by the learned Additional Session Judge, who appreciating the evidence on record, concurred with the conviction but modified the sentence of three years imposed under Section 409 and 467 IPC to two years.

3. Being dissatisfied, the first respondent preferred Criminal Revision No. 359/2001 in the High Court of Punjab and Haryana at Chandigarh. Before the revisional court, the only contention that was raised pertained to non-obtaining of sanction under Section 197 CrPC. It was argued before the learned Single Judge that in view of the decisions in State of Maharashtra v. Dr. Budhikota Subbarao, (1993) 3 SCC 339 Rakesh Kumar Mishra v. State of Bihar and others, (2006) 1 SCC (Cri) 432 Sankaran Moitra v. Sadhna Das and another, (2006) 2 SCC (Cri) 358 Om Kumar Dhankar v. State of Haryana, (2007) 3 RCR (Criminal) 496 the requisite sanction having not been obtained, the trial was vitiated. On behalf of the Corporation as well as the State of Punjab, it was argued that the sanction under Section 197 CrPC was not necessary to prosecute the first respondent and to substantiate the said stand, reliance was placed on Dr. Lakshmansingh Himatsingh Vaghela v. Naresh Kumar Chadrrashanker Jah, (1990) 4 SCC 169 N. Bhargavan Pillai (dead) by Lrs. and another v. State of Kerala, (2004) 2 Cri. CC 575 State of U.P. v. Paras Nath Singh, (2009) 6 SCC 372 Raghunath Anant Govilkar v. State of Maharashtra, (2008) 11 SCC 289 and Choudhury Parveen Sultana v. State of West Bengal, (2009) 3 SCC 398.

4. The learned Single Judge referred to the charges framed under Section 409 and 467 IPC. He also referred to the authorities in Prakash Singh Badal v. State of Punjab, (2007) 1 RCR (Criminal) 1 Nirmal Singh Kahlon v. State of Punjab, (2008) 2 RCR (Criminal) 208 Om Kumar Dhankar (supra) and Bakshish Singh Brar v. Gurmel Kaur, 1988 (1) RCR (Criminal) 35 and analyzing Section 197 CrPC observed that the said provision is meant to protect responsible public servants against the institution of vexatious criminal proceedings for offences alleged to














































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