IMPORTANT POINT
The power to quash criminal proceedings should be exercised sparingly and only in rare cases, and the allegations should disclose prima facie commission of a cognizable offence.

JUDGMENT

DUPPALA VENKATA RAMANA, J. - In this Criminal Petition filed under Sec. 482 of the Code of Criminal Procedure, 1973 (for short "Cr.P.C") the petitioner/A.1 seeks to quash the criminal proceedings in Crime No.124 of 2013 of Jangareddygudem Police Station, West Godavari District, registered for the offence under Ss. 409, 420 and 109 read with 34 IPC, against him.

2. Heard the learned counsel for the petitioner and the learned Assistant Public Prosecutor.

3. The facts in issue are that the 2nd respondent is the de facto complainant, who is the-then Divisional Panchayat Officer, Jangareddygudem and he lodged a report with the Police alleging that, during the year 2011-12 the Panchayat Raj funds were misappropriated by the employees of Jangareddygudem Panchayat and the Principal Secretary to the Government, Panchayat Raj ordered for enquiry through the Vigilance and Enforcement Authority and to submit a report. As per the said report of the Vigilance and Enforcement Authority in respect of misappropriation of funds in the year 2011-12 committed by the Staff of Jangareddygudem Gram Panchayat and Nagara Panchayat, the Principal Secretary to the Government of Andhra Pradesh, Panchayat Raj Department, issued a memo dtd. 25/4/2013 to the District Collector stating that there was misappropriation of funds in the year 2011-12 at Jangareddygudem Gram Panchayat and Nagar Panchayat and to initiate appropriate action against the concerned. In turn, the District Collector issued proceedings dtd. 8/5/2013, directing the 2nd respondent/de facto complaint to file a criminal case against the Surpanch and others. The allegations in the complaint are that the petitioner/A.1 the-then Panchayat Secretary of Jangareddygudem Gram Panchayat during the above period opened a bank account making transactions of panchayat in the banks other than the Treasury Account, by violating the guidelines in G.O.Ms.No.124, Finance (IF) Department, dtd. 23/4/2009 due to which A.2 the-then Panchayat Secretary kept huge amount of Panchayat Revenue on hand for long periods of time since 24/8/2011 for an amount of Rs.99, 77, 604.00 without remitting them to the Sub-Treasury, soon after the expiry of the Panchayat tenure, kept an amount of Rs.1, 43, 832.00 with him without remitting to the SubTreasury. A.3 the-then Divisional Panchayat Officer (retired) failed to supervise the duties of the Panchayat on 27/6/2009 and 8/1/2010 and failed to submit comprehensive report during his tenure and not to insist to deposit the amount of Rs.18, 42, 912.00 in the Gram Panchayat funds and A.4 the-then District Panchayat Officer (retired) directed the Divisional Panchayat Officer to stop the enquiry on the representation of M.Srinivasarao, ZPTC Member, Jangareddygudem. Based on the said report, a case in Crime No.124 of 2013 was registered in Jangareddygudem Police Station, West Godavari District for the offence punishable under Ss. 409, 420 and 109 read with 34 IPC. While the crime was under investigation by the Investigating Officer, the petitioner/A.1 filed the present petition to quash the proceedings against him in the above crime.

4. Learned counsel for the petitioner/A.1 would submit that there has been no misappropriation of funds by the petitioner/A.1 and except opening of account in the bank instead of Treasury Account, the petitioner has not operated the account either to remit or to withdraw the amount. Further, he would submit that the petitioner/A.1 never misappropriated nor converted the Panchayat funds for his own use. He would further submit that to constitute an offence of criminal breach of trust by a public servant it is essential that the prosecution must prove first of all that the petitioner/A.1 was entrusted with some property and further, the prosecution has to establish that in respect of the property so entrusted, there was dishonest misappropriation, dishonest conversion or dishonest use or dishonest disposal of or disposal in violation of a direction.