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2025 Supreme(Ker) 3209

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. Badharudeen, J.
Sarala Devi T.C. – Petitioner 
Versus
State of Kerala Rep By The Public Prosecutor - Respondent 
CRL.A NO. 45 of 2014, CRL.A No. 46 of 2014
Decided On : 03-12-2025

Advocates Appeared:
For the Petitioner: Shri.Lalji P.Thomas
For the Respondent: Sri.Rajesh.A, Special Public Prosecutor, Vacb, Smt.Rekha.S, Sr.Public Prosecutor, Vacb

The accused was convicted for misappropriating public funds by failing to account for money entrusted to her, establishing criminal breach of trust and corrupt practices under the relevant sections.

Headnote:(A) Indian Penal Code - Sections 409, 465, and 477A - Prevention of Corruption Act, 1988 - Sections 13(1)(c) and 13(1)(d) r/w Section 13(2) - Accused, as Secretary of a Co-operative Society, misappropriated funds of ₹1,500 and ₹14,000 without accounting in cash and day books. Conviction under the above sections was affirmed, establishing criminal breach of trust and corrupt practices in public office. (Paras 3, 5, 6, 27)

(B) Criminal misconduct - Essential ingredients need to include evidence of dishonest intent and misappropriation of entrusted property, which were conclusively proven. (Paras 14, 24, 27)

(C) Sentencing - Minimum terms were appropriately imposed by the trial court, affirming the necessity for accountability in public service. (Paras 28, 29)

Facts of the case:
The accused misappropriated public funds during her tenure as Secretary, failing to record significant amounts received from the government for projects while maintaining a position of trust. Case involved oral testimonies and documentary evidence that supported allegations.

Findings of Court:
The court upheld the Special Court's conviction, concluding the evidence was adequate to establish the accused's fraudulent actions and breach of trust.

Issues: Were the convictions under relevant sections appropriate based on the evidence presented?

Ratio Decidendi: Misappropriation of funds entrusted by the government was established beyond reasonable doubt through documentary proof and witness testimony confirming the accused's responsibility.

Result: Appeals dismissed; the sentences affirmed.

Table of Content
1. introduction of appeals against convictions (Para 1 , 2)
2. details of misappropriation charges (Para 3 , 4 , 5)
3. prosecution evidence and court's analysis (Para 6)
4. key allegations and the accused's status (Para 10 , 11)
5. evidence supporting accusations (Para 12 , 13)
6. interpretation of section 409 ipc (Para 14 , 15 , 16 , 17)
7. understanding section 477a ipc (Para 18 , 19 , 20)
8. intent and deceit in fraud cases (Para 21 , 22 , 23 , 24)
9. pc act provisions and implications (Para 25 , 26 , 27)
10. conclusion regarding sentencing (Para 28)
11. final dismissal of appeals (Para 29 , 30)

JUDGMENT :

A. Badharudeen, J.

Smt.Sarala Devi.T.C., who is the accused in C.C.Nos.29/2008 and 30/2008 on the files of the Enquiry Commissioner and Special Judge, Thiruvananthapuram, has filed these two appeals challenging the common verdict rendered in C.C.Nos.29/2008 and 30/2008 dated 18.12.2013. The State of Kerala, represented by the learned Special Public Prosecutor, is the respondent.

2. Heard the learned counsel for the accused/appellant as well as the learned Special Public Prosecutor in detail. Perused the records of the Special Court as well as the common verdict impugned.

3. The prosecution case in C.C.No.29/2008 is that, the accused, while working as Secretary of the Service Co- operative Society Ltd. 4280, Thamarakkulam, during the period from 07.01.1986 to 03.11.2004, abused her official position and dishonestly misappropriated an amount of Rs. 1,500 (Rupees one thousand five hundred only) paid by Sri.K.I.Aney, the former Agricultural Officer, Krishi Bhavan, Thamarakkulam, on 16.06.2001, on behalf of the Krishi Bhavan in connection with the implementation of a Project, viz., Integrated Development of Vegetables including Root and Tuber Crops 2000-2001, without entering the said amount in the cash book and day book of the Society.

4. In C.C.30/2008, the prosecution allegation is that, the accused, while working as Secretary of the Service Co- operative Society Ltd. 4280, Thamarakkulam, during the period from 07.01.1986 to 03.11.2004, abused her official position and dishonestly misappropriated an amount of Rs. 14,000 (Rupees fourteen thosuand only) paid by Sri.K.I.Aney, the former Agricultural Officer, Krishi Bhavan, Thamarakkulam, on 26.02.2003, on behalf of the Krishi Bhavan in connection with the fertilizers subsidy amount in the implementation of project viz., Macro Management 2001- 2002, without entering the said amount in the cash book and day book of the Society.

5. On this premise, the prosecution alleges commission of offences punishable under Sections 409 , 465 and 477A of the Indian Penal Code (hereinafter referred to as 'IPC') as well as under Sections 13 (1)(c) and 13(1)(d) r/w Section 13 (2) of the Prevention of Corruption Act, 1988 (hereinafter referred to as 'PC Act, 1988') by the accused in both cases.

6. The learned Special Judge jointly tried these cases and recorded the evidence. PW1 to PW6 were examined and Exts.P1 to P13 were marked on the side of the prosecution. No evidence was adduced on the side of the defence. On analysis of the evidence, the learned Special Judge found that the accused committed offences punishable under Sections 409 and 477A of IPC as well as under Sections 13 (1)(c) and 13(1)(d) r/w Section 13 (2) of the PC Act, 1988. Accordingly, the accused was convicted and sentenced as under:

“36. Point No.10 in C.C.29/2008 : …….. Therefore, for the offence under S.13(1)(c) and S.13(1)(d) r/w S.13(2) of P.C. Act, 1988, the accused is sentenced to undergo rigorous imprisonment for one year each and to pay a fine of Rs.1,000/- (Rupees One Thousand only) each. Fine, if not paid, accused shall undergo rigorous imprisonment for a further period of one month each. For the offence under S.409 I.P.C. also the accused is sentenced to undergo rigorous imprisonment for one year and to pay a fine of Rs.1,000/- (Rupees One Thousand only). Fine, if not paid, he shall undergo rigorous imprisonment for a f

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