IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.P. SAHI, SUBRAMONIUM PRASAD, JJ.
J.A. Murugan - Appellant
Versus
The Registrar of Co-operative Societies, Kilpauk, Chennai & Another - Respondent
Writ Petition No. 28641 of 2019 & Writ Appeal No. 2253 of 2018
Decided On : 06-03-2020
Prevention of Corruption Act, 1988 - Section 7 - Employees of a private Engineering company - FIR - Petitioner was working Secretary of District National Engineering Employees Co operative Thrift and Credit Society - Society is of employees private Engineering company for their benefit - He was arrested by Inspector of Police Vigilance and Anti Corruption and FIR was filed against him Section of Prevention of Corruption Act - Superintendent of Police Vigilance and Anti Corruption by letter issued letter to Registrar of Co operative Societies for according sanction prosecuting petitioner - Registrar has issued instructions making Prevention of Corruption Act applicable to employees of Co-operative Societies on ground that they are public servants within definition of Clause of Section of the Prevention of Corruption Act - Single Judge by impugned order has dismissed both the writ petitions instant appeal has been filed against the said judgment – Held, Registrar of Co operative Societies cannot expand definition of public servant impugned circular - He does not have any authority do so - Registrar has relied on judgment of Honble Supreme Court in Andhra Pradesh - Definition of public servant and more particularly in Clause which reliance is placed by State Government would show that only person in service of Corporation established by Central Government or State Government Act or any authority or body owned or controlled aided by Government or government company will come definition of public servant Clause person who is Secretary President or any other office bearer of Cooperative Society engaged in agriculture industry trade or banking or having received any financial aid from Central Government or State Government or from any corporation established by or Central Provincial or State Act or any authority or body owned or controlled or aided by Government or government company will come within definition of public servant Registrar as stated earlier cannot expand definition of public servant as term defined Prevention of Corruption Act - It is completely in domain of the legislature to define or lend a meaning to terms in Act It well settled that definition in a statute with penal consequences must be construed strictly circular of Registrar which states that all employees of all Co-operative Societies would be amenable to prosecution Prevention and Corruption Act and they all are coming within definition of public servant has no basis and is contrary to the statute and deserves to be struck down – Appeal allowed
JUDGMENT
(Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of Certiorari, calling for the records of the circular No.12/2015(RC35898/2015/SF3) dated 11.8.2015 on the file of the 1st respondent, quash the same.
Appeal filed under Clause 15 of the Letters Patent against the order dated 02.02.2018 made in W.P.No.2228 of 2018.)
Subramonium Prasad, J.
1. The petitioner has challenged the judgment and order dated 02.02.2018, passed in WP.No.2228 of 2018 wherein, the learned Single Judge has dismissed the challenge raised by the petitioner to the proceedings dated 27.10.2017, seeking sanction for prosecuting the petitioner for offences punishable under Section 7 and 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 and the letters dated 01.12.2017 and 15.12.2017 by which directions have been issued to initiate prosecution against the petitioner.
2. The petitioner was working as a Secretary of the Krishnagiri District National Engineering Employees Co-operative Thrift and Credit Society. The society is of the employees of a private Engineering company for their benefit. He was arrested by the Inspector of Police, Vigilance and Anti-Corruption, Krishnagiri and a FIR was filed against him under Section 7 of the Prevention of Corruption Act, 1988. The Superintendent of Police, Vigilance and Anti-Corruption by letter dated 27.10.2017, issued a letter to the Registrar of Co-operative Societies for according sanction of prosecuting the petitioner. Accordingly, the Registrar of Co-operative Societies wrote a letter to the Joint Registrar of Co-operative Societies on 01.12.2017 to issue necessary instruction to initiate disciplinary proceedings and also for grant of sanction for proceeding under the Prevention of Corruption Act. Challenging the steps taken by the respondents to launch proceedings against the petitioner under the Prevention of Corruption Act, the petitioner filed Writ Petition No.2228 of 2018, contending that the petitioner does not fall within the definition of public servant under Section 2(c)(ix) and therefore, proceedings cannot be initiated against him under the Prevention of Corruption Act, 1988.
3. The petitioner also filed Writ Petition No.28461 of 2019 challenging a circular dated 11.08.2015, issued by the Registrar of Co-operative Societies, by which the Registrar has issued instructions making the Prevention of Corruption Act applicable to the employees of Co-operative Societies on the ground that they are public servants within the definition of Clause(c) of Section (2) of the Prevention of Corruption Act. The learned Single Judge by the impugned order dated 02.02.2018, has dismissed both the writ petitions. The instant appeal has been filed against the said judgment.
4. Heard learned counsel for the parties.
5. This Bench by its order dated 12.02.2020, while reserving judgment recorded the submissions made by the parties. The order reads as under:-
“A learned Single Judge dismissed the writ petition filed by the appellant where a challenge had been raised in respect of a communication seeking permission to prosecute the appellant/petitioner by invoking the provisions of the Prevention of Corruption Act, 1988. The learned Single Judge came to the conclusion that in view of the definition contained in Section 2(c)(ix), any person who is the President or Secretary or an Office Bearer of a Registered Co-operative Society of the nature defined therein, and the appellant petitioner being the Secretary of such a society, was amenable to the provisions of the Act. Hence, he could be prosecuted under the 1988 Act.
2. The question of the status of the Co-operative Society of which, the appellant petitioner was the Secretary was not gone into. We may, at this stage, record that the Co-operative Society of which the appellant petitioner is the Secretary, is an Employees Cooperative Thrift and Credit Society of the employees of an industrial concern. On such a foundation
Andhra Pradesh Vs. P.Venku Reddy
Ajay Hasia v. Khalid Mujib Sehravardi [(1981) 1 SCC 722 : 1981 SCC(L&S) 258
Central Bureau of Investigation
Govt. of Andhra Pradesh and others Vs. P.Venku Reddy reported in (2002) 7 SCC 631
Thalappalam Service Cooperative Bank Ltd., Vs. State of Kerala & Ors.
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