PATNA HIGH COURT
S.K.Das, J.
Sheonarayan Jaiswal
Versus
State Of Bihar
Criminal Miscellaneous No. 185 of ;
Criminal Revision No. 490 of 1951 ; 491 of 1951 ;
Decided On : FEBRUARY 27, 1952
CRIMINAL PROCEDURE CODE - Section 190(1)(a) - Cognizance of offence - When taken - Section 196A - Sanction for prosecution - When necessary - PREVENTION OF CORRUPTION ACT, 1947 - Section 5(2) - Cognizance of offence - When taken - Section 6 - Sanction for prosecution - When necessary - PENAL CODE - Section 161 - Cognizance of offence - When taken - Section 405 - Criminal breach of trust - Essential conditions.
Fact of the Case:
The petitioners were committed to stand trial in the Court of Session on various charges, including criminal conspiracy, cheating, and criminal breach of trust. The charges arose out of an alleged illegal disposal of distillery molasses.
Finding of the Court:
The Court held that the Magistrate had taken cognizance of the offences under Section 161, Penal Code, and Section 5(2), Prevention of Corruption Act, 1947, without the necessary previous sanction, and that the commitment of the petitioners for those offences was therefore bad in law. The Court also held that the charge of cheating was not sustainable because there was no deception involved, and that the charge of criminal breach of trust was not sustainable because there was no entrustment of the molasses to the petitioners.
Issues: 1. Whether the Magistrate had taken cognizance of the offences under Section 161, Penal Code, and Section 5(2), Prevention of Corruption Act, 1947, without the necessary previous sanction? 2. Whether the charge of cheating was sustainable? 3. Whether the charge of criminal breach of trust was sustainable?
Ratio Decidendi: 1. The Court held that the Magistrate had taken cognizance of the offences under Section 161, Penal Code, and Section 5(2), Prevention of Corruption Act, 1947, without the necessary previous sanction, because he had applied his mind to the contents of the charge-sheet and had decided that the petitioners were to be tried for those offences, even though he had not yet received the necessary sanction. 2. The Court held that the charge of cheating was not sustainable because there was no deception involved. The Court found that the Excise Officers who issued the permits, as well as the persons who obtained the permits, were all in the conspiracy, so that there was no question of one deceiving the other. 3. The Court held that the charge of criminal breach of trust was not sustainable because there was no entrustment of the molasses to the petitioners. The Court found that the molasses were purchased by the distillers, and that there was no "entrustment" of the property by or on behalf-of the Excise Commissioner or the Controller.
Final Decision: The Court allowed the applications and quashed the commitment order passed against the petitioners.
Das, J.
1. These are three applications on behalf of nine persons for quashing an order of commitment made against them by Mr. S. N. Prasad, Sub-judge-Magistrate exercising first class powers at Patna. The applications are made on behalf of three sets of persons. The application in Criminal Miscellaneous No. 185 of 1951 is on behalf of one Sheonarayan Jais-wal, Proprietor of a distillery known as Man-katha Distillery. The application in Criminal Revision No. 490 of 1951 is on behalf of six railway employees serving at different stations in the system of railway known as O. T. Railway. The third application (Criminal Revision No. 491 of 1951) is on behalf of two persons named Khan Bahadur Habibur Rahman and his son Fidaur Rahman, said to be proprietors of any other distillery known as Sultanganj Distillery. The learned Sub-Judge-Magistrate by his order dated 10-1-1951, committed the aforesaid petitioners to stand their trial in the Court of Session on various charges.
2. The two charges framed against the proprietors of the distilleries are under Sec.120B read with Sec. 409, and Sec. 420, Penal Code. The three charges against the railway employees are under Sec.120B read with Section 409, Sec.161. Penal Code, and Sec. 5, Sub-section (2), Prevention of Corruption Act, 1947 (Act 2 of 1947).
3. Two other persons named A. P. Varma and Bhan Chandra were also committed by the learned Magistrate by his order of the said date. Mr. Bhan Chandra was an Excise Superintendent, who, in. 1947-48, was employed in the office of the Commissioner of Excise, one of his duties being to regulate the issue of permits for the purchase and transportation of molasses from sugar factories in North Bihar. The other man, A. P. Varma, was then Head Clerk in that office. These two persons had earlier made applications to this Court for quashing the commitment order against them. Those applications (Criminal Misc. Nos. 62 and 63 of 1951) were heard by a Bench of two Judges and by an order dated 24-4-1951, the order of commitment against them was quashed.
4. The facts out of which these applications have arisen are shortly these. Two separata investigations were started by the Provincial C. I. D. and the Delhi Special Police Establishment in connection with alleged illegal disposal of distillery molasses. Several persons, including one Ramji Lal Marwari, his servant and agents, were alleged to have taken part in the disposal thereof. The case which the prosecution alleged was of the following nature. The sugar factories situated in North Bihar produced molasses in the process of manufacturing sugar. Three such factories were situated at Bagaha, Si-talpur & Harinagar. The distribution, supply and price of molasses, produced by the factories in the province of Bihar, were controlled, first by means of an Ordinance known as the Bihar Molssses (Control) Ordinance, 1946, and then under the Bihar Molasses (Control) Act, 1947.
Under the provisions of the Ordinance and the Act, the Excise Commissioner was the Controller. Without the permission of the Controller, no molasses could be moved by rail or river from any place in the province to any other place therein. The Controller had power to issue directions to the owner or occupier of any factory etc. to supply molasses to the Provincial Government or to Distilleries cr to other persons or organisations. The Provincial Government (now the State Government) had the power to fix the price of molasses. The sugar factories with which we are concerned in the present case were the three sugar factories whose names I have mentioned above. The two distilleries which concern us are the Man-katha and Sultanganj Distilleries.
The prosecution case was that the proprietors of the said, distilleries obtained permits from the Excise Commissioner for lifting molasses from the aforesaid three sugar factories in North Bihar. The Excise Commissioner granted permits, as also issued directions, for the purpose. The Molasses obtai
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