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2025 Supreme(Ker) 1868

IN THE HIGH COURT OF KERALA AT ERNAKULAM 
A. Badharudeen, J.
State Of Kerala, Represented By The Additional Public Prosecutor – Petitioner
Versus
Thomas Mathew G., S/O. N. J. Mathai – Respondent
Crl.Rev.Pet No. 163 of 2023
Decided On : 09-07-2025

Advocates:
Advocate Appeared:
For the Petitioner: Public Prosecutor, Spl Pp For Vacb – Rajesh.A, Srpp For Vacb - Rekha.S
For the Respondent: Sri.Suman Chakravarthy

IMPORTANT POINT
Prosecution of public servants for corruption does not require sanction when actions are not related to official duties.

Headnote:

(A) Criminal Procedure Code, 1973 - Sections 397, 401 and 197 - Discharge of accused - The State of Kerala challenged the discharge of the 2nd accused by the Special Court, citing lack of necessary sanction for prosecution and absence of prima facie evidence of misappropriation of funds. The court reiterated that sanction under Section 197 is not necessary for public servants accused of offences not intrinsically linked to their official duties. (Paras 7 , 12 , 23 )

(B) Corruption Offences - The court emphasized that acts of cheating and misappropriation are not performed in the discharge of official duty, thus negating the necessity for prosecution sanction in such cases. (Paras 8 , 11 , 23 )

Facts of the case:

The prosecution alleged conspiracy between several accused to misappropriate government funds meant for rehabilitating landless Scheduled Caste people, resulting in alleged forged documentation and misappropriation of Rs.7,50,000. The 2nd accused was discharged by the Special Court for perceived lack of evidence against him.

Findings of Court:

The order of discharge was determined unsustainable due to insufficient examination of the prosecution's evidence connecting the 2nd accused to the alleged conspiracy.

Issues: Whether prosecution of the 2nd accused required sanction under Section 197 of Cr.P.C. and if sufficient prima facie material presented to warrant proceedings against him.

Ratio Decidendi: The court found that the discharge order was erroneous as the allegations outlined in the prosecution's case warranted charges, emphasizing that public servants can be prosecuted for corruption without prior sanction when their actions diverge from official duties.

Result: Criminal revision petition allowed; order of discharge set aside and trial to proceed against the 2nd accused.

Table of Content
1. allegations of conspiracy to misappropriate funds. (Para 4 , 5 , 19)
2. debate over discharge of the 2nd accused. (Para 6 , 9 , 10 , 22)
3. court's examination of complete evidence. (Para 8 , 11 , 20 , 21)
4. clarification on prosecution requirements. (Para 12 , 23)
5. final ruling decision. (Para 24)

ORDER :

A. Badharudeen, J.

This revision petition has been filed under Sections 397 and 401 of the Code of Criminal Procedure, 1973 , at the instance of the State of Kerala, aggrieved by discharge of the respondent, who is arrayed as the 2nd accused in C.C. No.158 of 2016 on the files of the Court of the Enquiry Commissioner and Special Judge, Thalassery, as per the order dated 26.09.2018 in C.M.P. No.15 of 2016 in the above case.

2. Heard the learned Public Prosecutor representing the State of Kerala and the learned counsel appearing for the respondent, in detail. Perused the order impugned and the decisions placed by both sides.

3. Parties in this criminal revision petition shall be referred as ‘prosecution’ and ‘1st, 2nd and 3rd accused’, hereafter.

4. In this matter, the prosecution case is that, the 1st accused conspired and colluded with the 2nd accused, who has been working as Scheduled Caste Development Officer, Kalpetta Block, and the 3rd accused, a document writer, with dishonest intention to misappropriate government fund meant for the scheme ‘Rehabilitation of Landless and Homeless Scheduled Caste People’ of the Scheduled Caste Development Department, implemented through the Block Development Office for Scheduled Castes, Kalpetta, forged two sale deeds on 09.02.2011 and eight sale deeds on 31.03.2011 with the connivance and assistance of the other accused and the 1st accused created false documents showing his own land of three cents each at Pakkalippallam, comprised in RS No.295/9 of Kottappadi Village in Vythiri Taluk to 10 Scheduled Caste beneficiaries without the consent or knowledge of the prospective beneficiaries, at the rate of Rs.75,000/- per beneficiary. Thereby, the accused misappropriated Rs.7,50,000/- and obtained undue pecuniary advantage. On this premise, the prosecution alleges commission of offences punishable under Sections 13(1)(c) and 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988 [hereinafter referred as ‘P.C. Act’ for short] and under Sections 409 , 420 and 468 read with 34 of the Indian Penal Code , by all the accused.

5. In this matter, the 1st accused No.177/2016 and the 2nd accused filed C.M.P. No.6/2016 before the Special Court seeking discharge. The Special Court dismissed the discharge petition filed by the 1st accused and discharged the 2nd accused as well as the 3rd accused as per the impugned order.

6. While assailing the impugned order, it is pointed out by the learned Public Prosecutor that, the Special Court discharged the 2nd accused finding two reasons. The first reason found by the Special Court to discharge the 2nd accused is the non obtaining of sanction under Section 197 of Cr.P.C . to prosecute him. Secondly, the Special Court found that there was no allegation in the charge or any materials on record to the effect that the 2nd accused dishonestly or fraudulently misappropriated or otherwise converted for his own use any property entrusted to him or under his control as a public servant.

7. Insofar as the sanction under Section 197 of Cr.P.C . in relation to the 2nd accused is concerned, the learned Public Prosecutor argued that, since the 2nd accused is not a person, who holds a civil post under the Union or State, he could not be removed by an authority subordinate to the Government by which he was appointed and therefore, no sanction under Section 197 of Cr.P.C . is necessary to prosecute the 2nd accused. In this connection, the learned Public Prosecutor placed decision of the Apex Court reported in [2023 KHC 6761 : 2023 (5) KHC SN 21 : 2023 KHC OnLine 6761] Sreenivasa Reddy A. v. Rakesh Sharma , with reference to paragraph Nos.40 and 41. The same

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