IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S. SUNIL DUTT YADAV, J.
Sri Abraham T.J., S/o Late Sri Joseph T.A. – Appellant
Versus
Sri B.S. Yediyurappa S/o Late Sri Siddalingappa – Respondents
Criminal Petition No.5659 of 2021
Decided on : 07-09-2022
Code of Criminal Procedure, 1973 - Section 156(3), 200, 154, 173(2), 190, (1)(b), 202, 203, 204, 197 - P.C. ACT, 1947 - Section 17A - Prevention of Corruption Act, 1988 - Sections 7, 8, 9, 10, 13, 3(1), 19 - Indian Penal Code, 1860 - Sections 383, 384, 415, 418, 420, 34, 120B - Prevention of Money Laundering Act, 2002 - Sections 3, 4, 45 - Seeking Sanction for Prosecuting - Validity of Order - Whether sanction of competent authority is required before passing an order for investigation under section 156(3) of Cr.P.C - Whether requirement of previous approval from requisite authority before conducting any enquiry, inquiry or investigation into an offence under section 17a of p.c. act, would act as a bar on special judge for passing an order under section 156(3) of Cr.P.C. vis-à-vis public servants, i.e., accused nos.1, 6 and 7 - Whether in absence of any response from competent authority regarding grant of sanction sought against accused nos. 6 and 7 ought special judge have proceeded on premise of deemed sanction as contended - Whether special judge has erred in dismissing complaint in its entirety even as against accused other than public servants, viz., accused nos. 2, 3, 4, 5, 8 and 9 only on ground of rejection of sanction against accused no.1 and absence of sanction for prosecution of accused nos.6 and 7 - Whether an order for directing investigation under Sec.156(3) of Cr.P.C., can be passed in relation to public servant in absence of valid sanction - Whether sanction will be deemed to have been granted, if no decision is taken within a prescribed period for referring case for investigation under section 156(3) of Cr.P.C. [Para 36.]
Finding of the Court: An important fact to take note of, which ought to have been, but has not been considered by either Trial Court or High Court, is that appellant had sought production of DVRs containing audio-video recording of CCTV footage of second respondent chamber - As a matter of fact, Institute itself had addressed communications to second respondent directing production of recordings, noting that these recordings had been handed over on his oral direction by then Registrar of Institute as he was Vice-Chancellor - Due to lack of response despite multiple attempts, Institute had even filed a complaint with PS Gole Ka Mandir for registering an FIR against second respondent for theft of DVRs - Therefore, in such cases, where not only does Magistrate find commission of a cognizable offence alleged on a prima facie reading of complaint but also such facts are brought to Magistrate's notice which clearly indicate need for police investigation, discretion granted in Section 156(3) can only be read as it being Magistrate's duty to order police to investigate - In cases such as present, wherein, there is alleged to be documentary or other evidence in physical possession of accused or other individuals which police would be best placed to investigate and retrieve using its powers under CrPC, matter ought to be sent to police for investigation - It must be noted that in terms of Section 19 of P.C. Act, no request can be made for sanction by a person other than "Police Officer or an Officer of an Investigation Agency or other law enforcement authorities, ....", which is however subject to further rider that such person other than Police Officer may be called upon to obtain sanction from appropriate Authority by Court where complaint filed by him has not been dismissed under Section 203 of Cr.P.C. and Court intends to continue proceedings against Accused - Accordingly, rejection of such request is liable to be ignored, as such request was not made either by Police Officer or an Officer of Investigation Agency or other law enforcement Authorities; nor pursuant to order of Court as contemplated under First Proviso to Section 19 of P.C. Act - Thus, rejection of sanction for prosecution would not come in way of continuance of proceedings against Accused No.1 upon restoration of complaint - Sanction as regards Accused No.1 would be an aspect for consideration at appropriate stage as per law as has been made out in terms of discussion above.
Result: Petition allowed in part.
ORDER :
S. SUNIL DUTT YADAV. J
THIS ORDER HAS BEEN DIVIDED INTO THE FOLLOWING SECTIONS TO FACILITATE ANALYSIS:
I FACTS OF THE CASE 7
II SUBMISSIONS OF PARTIES 16
III ANALYSIS
A. WHETHER SANCTION OF THE COMPETENT AUTHORITY IS REQUIRED BEFORE PASSING AN ORDER FOR INVESTIGATION UNDER SECTION 156(3) OF CR.P.C.?
CONSEQUENCES OF ORDER OF REFERENCE AND DECIDING THEREAFTER; _
COGNIZANCE AND ORDER FOR INVESTIGATION UNDER SECTION 156(3) OF CR.P.C.; _
PARI MATERIA PROVISIONS OF P.C. ACT, 1947 AND P.C. ACT, 1988; _
CONSIDERATION OF JUDGMENTS RELIED UPON BY RESPONDENTS AND CITED BY AMICUS CURIAE;
B. WHETHER REQUIREMENT OF PREVIOUS APPROVAL FROM THE REQUISITE AUTHORITY BEFORE CONDUCTING ANY ENQUIRY, INQUIRY OR INVESTIGATION INTO AN OFFENCE UNDER SECTION 17A OF P.C. ACT, WOULD ACT AS A BAR ON THE SPECIAL JUDGE FOR PASSING AN ORDER UNDER SECTION 156(3) OF CR.P.C. VIS-À-VIS THE PUBLIC SERVANTS, i.e., ACCUSED NOS.1, 6 AND 7?
C. WHETHER IN THE ABSENCE OF ANY RESPONSE FROM THE COMPETENT AUTHORITY REGARDING GRANT OF SANCTION SOUGHT AGAINST ACCUSED NOS. 6 AND 7 OUGHT THE SPECIAL JUDGE HAVE PROCEEDED ON THE PREMISE OF DEEMED SANCTION AS CONTENDED?
D. WHETHER THE SPECIAL JUDGE HAS ERRED IN DISMISSING THE COMPLAINT IN ITS ENTIRETY EVEN AS AGAINST ACCUSED OTHER THAN PUBLIC SERVANTS, VIZ., ACCUSED NOS. 2, 3, 4, 5, 8 AND 9 ONLY ON THE GROUND OF REJECTION OF SANCTION AGAINST ACCUSED NO.1 AND ABSENCE OF SANCTION FOR PROSECUTION OF ACCUSED NOS.6 AND 7? 24
25
35
46
61
65
68
74
84
IV OTHER ASPECTS _
IN RE. XYZ V. STATE OF MADHYA PRADESH AND ANOTHER;
OFFENCES UNDER THE PREVENTION OF MONEY LAUNDERING ACT.
REJECTION OF SANCTION AS REGARDS ACCUSED NO.1. 89
89
93
94
ORDER 97
I. FACTS OF THE CASE:-
The petitioner has called in question the validity of the order dated 08.07.2021 passed by the Court of LXXXI Addl. City Civil and Sessions Judge, Bengaluru (CCH-82) in PCR No.40/2021, whereby the Private Complaint filed under Section 200 of the Code of Criminal Procedure, 1973 ('Cr.P.C.' for brevity) and the interim application filed by the Complainant under Section 156(3) of Cr.P.C. have been found to be not maintainable in the absence of valid sanction and accordingly, the complaint and the application have been dismissed.
2. The petitioner has been referred to as 'Complainant' and the respondents have been referred to as 'Accused' for the sake of convenience.
3. The Complainant has sought for restoration of the complaint and to register the First information Report ('FIR') against the accused for the offences punishable under Sections 7, 8, 9, 10 and 13 of the Prevention of Corruption Act, 1988 ('P.C. Act' for brevity) and under Sections 383, 384, 415, 418, 420 read with Section 34 and Section 120B of the Indian Penal Code, 1860 ('IPC' for brevity).
4. The facts as made out in the complaint are that the Complainant had lodged information in accordance with Section 154 of Cr.P.C. on 19.11.2020 before the Anti Corruption Bureau, Bengaluru ('ACB' for brevity) against the accused alleging the commission of offence as referred to above.
5. It is further stated that the ACB had issued notice to the Complainant seeking for certain documents and clarification and despite such clarification, the information/complaint lodged before the ACB came to be closed and an endorsement dated 15.12.2020 came to be issued in that respect.
6. Accordingly, the Private Complaint came to be filed before the Special Court seeking to take cognizance of the offences as follows:-
(ii) Sections 383, 384, 415, 418, 420 read with Sections 34 and 120B of IPC;
(iii) Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 ('PMLA' for brevity).
7. A further prayer was also sought to direct the Investigating Agency to register FIR under Section 156(3) of Cr.P.C. to conduct investigation and proceed in accordance with law.
8. It is submitted that the Complainant had approached Governor of Karnataka seeking sanction for prosecuting Accused No.1 and had also approached the Chief Secretar
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