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2025 Supreme(Ori) 574

IN THE HIGH COURT OF ORISSA AT CUTTACK
CHITTARANJAN DASH, J.
Jagannath Prasad Mohanty And Another - Petitioners
Versus
State of Odisha And (Vig.) - Respondent
CRLREV No.540 of 2025
Decided On : 07-11-2025

Advocates Appeared:
For the Petitioner:Mr. P. Patnaik, Advocate
For the Respondent: Mr. Sangram Das, SC (Vigilance)

At the discharge stage under Section 239 Cr.P.C., courts must ascertain if a prima facie case exists without a detailed inquiry into the merits of evidence; revisional powers are strictly to prevent injustice, not to re-evaluate evidence.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 239 - Challenge to the order rejecting discharge in corruption case - Allegations against officials for releasing payments at inflated rates despite revised contracts - The court reiterated that at the discharge stage, it must determine if a prima facie case exists without delving into evidentiary assessments. (Paras 5-6)

(B) Legal Standards - The court emphasized that its revisional power is not akin to appellate power and cannot involve a thorough review of evidence. It is limited to correcting manifest errors of law or procedure that could cause injustice. (Paras 75-76)

Facts of the case:
The petitioners contested a charge-sheet alleging they improperly facilitated inflated payments to a supplier contrary to revised price guidelines, causing financial loss to the Government.

Findings of Court:
The investigation revealed indications of the petitioners' involvement in creating undue advantages, warranting a trial.

Issues: The primary issue was whether the petitioners acted within the lawful authority pertaining to the release of funds.

Ratio Decidendi: The court found no error or illegality in the trial court's decision to deny discharge, emphasizing that the petitioners' defenses could be presented during the trial without exoneration at this stage.

Result: Revision dismissed.

Table of Content
1. legality and facts of the supply order dispute. (Para 1 , 2)
2. petitioners' defense and prosecution's counterarguments. (Para 3 , 4)
3. criteria for framing charges in criminal cases. (Para 5 , 6 , 7)
4. judgment dismissal of the revision application. (Para 8)

JUDGMENT :

Chittaranjan Dash, J.

1. The legality, propriety, and correctness of the order dated 10.07.2025 passed by the learned Special Judge, Vigilance, Cuttack in T.R. Case No. 19 of 2024 have been called in question in this Revision.

2. The background facts of the case are that the Executive Engineer, R.W.S.S. Division, Kendrapara issued a supply order to M/s. Hari Udyog Pvt. Ltd., Balasore on 16.10.2008 for the supply of PVC pipes to the extent of 183.369362 M.T. for an amount of Rs.1,36,28,011/- at the rate of Rs.74,320/- per M.T. as per the Rate Contract Circular No. 6714/E.P.&M. dated 17.09.2008 issued by the Director, E.P.&M., Odisha, Bhubaneswar.

A few days thereafter, i.e., on 21.10.2008, while the said contract was in force, a revised downward rate contract circular was issued vide Office No. 7260/E.P.M. dated 21.10.2008, fixing the rate at Rs.65,700/- per M.T. Upon receipt of the revised rate contract circular, the Executive Engineer, R.W.S.S. Division, Kendrapara refused to release the payment at the higher rate as per the earlier circular dated 17.09.2008, taking the view that the revised rate should apply retrospectively.

Aggrieved thereby, M/s. Hari Udyog Pvt. Ltd., Balasore submitted a representation before the Director, E.P.&M., Odisha, Bhubaneswar vide Letter No. FF/COM/046/01/08-09/1144 dated 15.11.2008, requesting his intervention and seeking a direction to the Executive Engineer, R.W.S.S., Kendrapara to release payment at the rate mentioned in the original supply order in accordance with the earlier rate contract circular dated 17.09.2008.

The said representation of M/s. Hari Udyog Pvt. Ltd. was examined by the officers of the Marketing Section, Directorate of E.P.&M., Odisha, Bhubaneswar, who made favourable notes in the note sheet (pages 40 to 44 of File No. IEMM-1/07/EPM), allegedly in violation of Amendment Resolution No. VII-SL/15/2004/20552/I dated 01.12.2004, and without taking into account the revised downward rate contract circular. It is alleged that they thereby showed undue official favour to M/s. Hari Udyog Pvt. Ltd. by recommending release of the withheld payment at the higher rate of Rs.74,320/- per M.T. as per the earlier circular dated 17.09.2008, in connivance with each other and with ulterior motive.

It is further alleged that Mr. P.K. Mallick, Director, E.P.&M., Odisha, without due care, concurred with the recommendation of the officers and passed an order vide No. IEMM-1/07-7864/EPM, Bhubaneswar dated 18.11.2008, directing the Executive Engineer, R.W.S.S. Division, Kendrapara to release the withheld payment of M/s. Hari Udyog Pvt. Ltd. at the higher rate as per the previous rate contract circular, with retrospective effect. This was allegedly done in violation of the Government Resolution, resulting in a loss to the Government exchequer to the tune of Rs.15,76,976/-.

Verification of documents collected from the offices of the Director, E.P.&M., Odisha, Bhubaneswar and the Executive Engineer, R.W.S.S. Division, Kendrapara revealed that twelve supply orders were issued on 16.10.2008 to M/s. Hari Udyog Pvt. Ltd., Balasore for supply of pipes within 30 days at the rate of Rs.74,320/- per M.T., instead of the revised rate of Rs.65,700/- per M.T.

The enquiry further revealed that the officials, including the Petitioners, did not adhere to the direction of this Court dated 29.03.2007 passed in W.P.(C) No. 17031 of 2006, wherein it was categorically held that the public exchequer should not be burdened by paying a higher price for any commodity than the actual rate at which it can be procured.

Accordingly, the FIR was registered, and a charge-sheet was submitted against the Petitioners. Being aggrieved by the said charge-sheet, t

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