Honble SINHA, J.–How far a sanction against a public servant for commission of an offence punishable under 13(2) of the Prevention of Corruption Act, 1988 (for short, the 1988 Act) and Sections 409, 167, 218, 419, 420, 465, 468 and 471 of the Indian Penal Code is essential is in question in this appeal, which arises from a judgment and order dated 06.05.2002 passed by the High Court of Punjab and Haryana in Criminal Misc. No.39904-M of 2002 allowing an application filed by the First Respondent herein under Section 482 of the Code of Criminal Procedure (for short, Cr. P.C.). The First Respondent herein at the material time was a Sub Inspector posted in Police Station Kotwali in the District of Faridkot. He in his said capacity purported to have lodged a First Information Report against M/s Jain Gas Agency, a proprietary concern of the son of the Appellant, under Section 7 of the Essential Commodities Act, wherein it was alleged that on an inspection made in its office and godown several irregularities were found and furthermore some gas cylinders were said to have been sold in black market. The Appellant, who is also the District Convener, LPG Dealers Association, Faridkot, in a letter dated 31.08.1992 addressed to the Inspector General of Police, Internal Vigilance, Punjab, Chandigarh, alleged that the case registered was false, that while seizing 767 cylinders, the First Respondent had shown that only 743 cylinders were seized and thereby misappropriated 24 cylinders and that the First Respondent had demanded and taken a sum of Rs.20, 000/- in cash from the Appellant by way of illegal gratification by putting pressure and the said amount was paid to him in order to avoid maltreatment at his hands. The payment so made was shown in the cash book and the ledger maintained by M/s Jain Gas Agency. The prosecution against the said M/s Jain Gas Agency under Section 7 of the Essential Commodities Act was found to be false and a final report under Section 173 Cr. P.C. was submitted for cancellation of the case which was accepted on 11.8.1993.

(2). On the basis of the said allegations contained in Appellants letter dated 31.8.1992, a First Information Report was lodged . However, upon investigation an untraced report was sent to the Court of Hardian Singh, Special Judge, Faridkot, who did not agree therewith and by an order dated 23.05.1998 opined that the statements of the witnesses recorded during investigation supported the case of the complainant and the matter required judicial verdict. The learned Special Judge, therefore, directed the Investigating Officer to obtain sanction for the prosecution against the Respondent herein and submit a final report. The said order dated 23.05.1998 came to be challenged by the First Respondent herein in a Criminal Revision which was marked as Criminal Revision No.1100 of 1998 before the Session Judge wherein it was observed that no cognizance could be taken by the Special Judge without obtaining proper sanction and it would be open to the Sanctioning Authority to consider the same. In the meanwhile, the Respondent was promoted as Inspector. The Deputy Inspector General of Police, Jallandhar Range, issued an order of sanction on or about 04.02.1999, which is in the following terms :

"Therefore, now I Suresh Arora, IPS Deputy Inspector General of Police, Jalandhar Range, Jalandhar having powers to dismiss the SI (now Inspector) Naginder Singh Rana No.50/PR from service, grant sanction under section 197 of Cr.P.C. and under section 13(2) P.C. Act, 88 so that the competent court may take legal action against him for the above offence."

However the said order of sanction was withdrawn by the State in terms of an order dated 10.12.1999 as contained in a letter addressed to the Additional Director General of Police, Crime Punjab, Chandigarh, which is as under :

"2. Under section 197 Cr. P.C. only Government is competent to accord prosecution sanction. Therefore, the prosecution accorded by the Deputy Inspe

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