2017 Supreme(Mad) 1915
IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
Ramesh Gelli - Petitioner
Vs.
The Inspector of Police, Central Bureau of Investigation - Respondent
Criminal Revision Case No.1663 of 2016 and Crl.M.P.No.13785 of 2016
Decided On : 13-09-2017
Advocate Appeared:
For the Petitioner: Mr. Abudukumar Rajarathinam, Mr. S. Ashok Kumar
For the Respondent: Mr. K. Srinivasan, Special Public Prosecutor (CBI cases)
The main legal point established in the judgment is the requirement of a reasonable connection between the alleged offence and the discharge of official duty to determine the applicability of sanction under Section 197 Cr.P.C. The judgment also clarified the scope of 'public servant' under the Prevention of Corruption Act and the conditions for obtaining sanction under Section 197 Cr.P.C.
Headnote:
Public Servant - Interpretation of Banking Regulation Act, 1949 - Sections 46A, 197 Cr.P.C., and Prevention of Corruption Act, 1988 - Summary of Acts and Sections: Banking Regulation Act, 1949 - Section 46A; Prevention of Corruption Act, 1988 - Sections 7 to 12, 13, 197 Cr.P.C. - The court discussed the interpretation of Section 46A of the Banking Regulation Act, 1949, and its application to the definition of a public servant under the Prevention of Corruption Act, 1988. The court also analyzed the requirement of sanction under Section 197 Cr.P.C. for prosecuting a public servant and its applicability to the petitioner's case. The judgment highlighted the scope of 'public servant' under the Prevention of Corruption Act and the conditions for obtaining sanction under Section 197 Cr.P.C., emphasizing the need for a reasonable connection between the alleged offence and the discharge of official duty.
Fact of the Case:
The petitioner, a former Chairman-cum-Managing Director of a bank, sought to set aside the order passed in a criminal case and return the charge sheet filed by the respondent. The petitioner contended that as a private bank employee, he cannot be considered a public servant under the Prevention of Corruption Act. The prosecution had not obtained necessary sanction under Section 197 Cr.P.C. The trial Court dismissed the case, prompting the petitioner to file a Criminal Revision.
Finding of the Court:
The court found that the petitioner, as per the interpretation of Section 46A of the Banking Regulation Act, 1949, is deemed to be a public servant for the purpose of the Prevention of Corruption Act. However, the protection under Section 197 Cr.P.C. is not available to the petitioner as the alleged offence was not committed in discharge of his official duty. The court held that there is no merit in the Criminal Revision and confirmed the judgment of the trial Court, dismissing the case.
Issues: The issues revolved around the petitioner's status as a public servant under the Prevention of Corruption Act, the requirement of sanction under Section 197 Cr.P.C., and the interpretation of the phrase 'offence committed' while discharging official duties.
Ratio Decidendi: The court emphasized the need for a reasonable connection between the alleged offence and the discharge of official duty to determine the requirement of sanction under Section 197 Cr.P.C. It held that the protection under Section 197 Cr.P.C. is not available if the act committed by the public servant is not in discharge of his official duty.
Final Decision: The Criminal Revision was dismissed, and the judgment of the trial Court was confirmed, leading to the closure of the connected miscellaneous petition.
1. This Criminal Revision Case is filed by the petitioner seeking to set aside the order passed in Crl.M.P.No.5944 of 2016 in C.C.No.3 of 2009 pending on the file of the learned XI Additional Special Court at Chennai and direct the trial Court to return back the charge sheet filed by the respondent in lieu of the dictum laid down by the Hon'ble Supreme Court in N.K. Ganguly v. Central Bureau of Investigation reported in 2016 (2) SCC 143.
2. The contention of the learned counsel appearing for the revision petitioner is that the petitioner was former Chairman-cum-Managing Director of Global Trust Bank which later got merged with Oriental Bank of Commerce. Based on the complaint of the year 2004, an F.I.R. was registered on 26.03.2007 by the respondent police which entrusted with specific task of investigation of bank securities and fraud cases. The main contention of the revision petitioner is that he being a servant of private bank, cannot be considered as public servant to be prosecuted under the Prevention of Corruption Act. However this contention, in a different case, was negatived by the Hon'ble Supreme Court to the extent that under Section 46-A of the Banking Regulation Act, for offence under Chapter IX of IPC, the employees of the bank covered under the Banking Regulation Act will be treated as public servants. Later, provisions in Chapter IX of IPC namely, Sections 161 to 165-A was omitted in IPC and incorporated in the Prevention of Corruption Act, 1988. The corresponding amendment was not brought into the Banking Regulation Act. However, the Hon'ble Supreme Court has held that it is a causes omissus. As far as substitution of Sections 161 to 165-A under Chapter IX of IPC by Prevention of Corruption Act, it is strenuously contended by the learned counsel for the petitioner that the Sections analogous to old Sections 161 to 165-A of IPC are only Sections 7 to 12 of the Prevention of Corruption Act and not Section 13 of the Prevention of Corruption Act. For that effect, a clarification has also been given by the Hon'ble Supreme Court in the earlier case filed by the present revision petitioner. Therefore, even if a private Bank employee is a public servant as per Section 46-A of the Banking Regulation Act, 1949, the said deeming clause shall apply only to Sections 7 to 12 of the Prevention of Corruption Act and not for Section 13 of the Prevention of Corruption Act.
3. In the light of the above factual background, the petitioner has filed an application before the trial Court to return back the charge sheet. Since, the prosecution has not applied necessary sanction under Section 197 Cr.P.C., as per the dictum laid down by the Hon'ble Supreme Court in N.K.Ganguly v. Central Bureau of Investigation reported in 2016 (2) SCC 143, whenever there is an allegation against the accused in discharge of official duty, it is mandatory that while prosecuting the accused under the I.P.C., offence, sanction under Section 197 Cr.P.C., is necessary. In the absence of sanction, charge sheet has to be returned.
4. The trial Court, after considering the submission made by the learned counsel for both parties, has dismissed the case as devoid of merits. Challenging the same, the present Criminal Revision has been filed on the ground that the Hon'ble Supreme Court has held that the petitioner is a public servant by virtue of the provision of Section 46A of Banking Regulation Act, 1949, in CBI v. Ramesh Gelli (the petitioner herein) (2016(3) SCC 788), the Hon'ble Supreme Court had also further clarified that the Chairman/Managing Director/Executive Director for Private Banking shall be deemed to be public servant for the offence committed under Sections 7 to 12 I.P.C., alone. Therefore, the Hon'ble Supreme Court has widen the scope of 'public servant' for prosecuting a public servant under I.P.C., Offences, sanction has to be obtained under Section 197 I.P.C. Whenever there is a nexus with the alleged offence and the discharge of their of