IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. SURENDER, J.
C. Shobha Rani – Petitioner
Versus
The State of Telangana – Respondent
Criminal Petition No. 10267 of 2022
Decided On : 29-11-2022
Service Law - Working as Chief Manager - Criminal conspiracy – Held, There is no necessity to conclude trial as argued by the learned Public Prosecutor to ascertain whether subsequent grant of sanction is correct or not - On basis of sanction order itself, it is apparent that there was thorough discussion of competent authority in declining sanction and absolutely, no reasons are given for granting of sanction subsequently - When said infirmity is glaring, petitioner cannot be permitted to undergo criminal trial - main object of doctrine of precedent is that law of land should be clear, certain and consistent so that Courts shall follow it without any hesitation of Constitution of India lays down that law declared, by Supreme Court shall be binding on all courts within territory of India - A decision of a High Court Judge of a State is regarded as binding on all subordinate courts in that State - Criminal Petition is allowed.
ORDER :
1. This petition is filed to quash the proceedings against the petitioner/A6 in CC No. 7 of 2017 on the file of the Court of I Additional Special Judge for CBI Cases, Hyderabad.
2. The petitioner is amongst ten accused, who are being prosecuted for entering into criminal conspiracy during the years 2010 to 2012 in the matter of credit facility sanctioned to A1 company by Bank of India, Banjara Hills branch where the petitioner was working as Chief Manager in the said Bank.
3. The facts of the case are not necessary since the ground raised by the petitioner is that the competent authority for grant of sanction declined to grant sanction for prosecution on 24.01.2015. However, the very same authority has granted sanction on 09.11.2016 on the very same material, on the basis of which sanction was refused earlier.
4. Learned counsel for the petitioner would submit that the sanctioning authority Sri Kul Bhushan Jain, who was the General Manger, NBG (South), Chennai has declined to grant sanction on 24.01.2015 by giving details running into ten pages. A chart was prepared by the authority reflecting the lapses as per the CBI report vis-à-vis lapses as per the internal investigation report, accordingly, commented on the role played by this petitioner. Having considered the entire material, the competent authority declined to grant sanction.
5. Learned counsel further submits that the learned Special Judge has declined to discharge this petitioner on the ground that the judgments cited by the petitioner seeking discharge were rendered under the inherent powers of the Hon’ble Supreme Court and also the High Court, as such, the learned Special Judge has no such power and declined to discharge the petitioner, which is erroneous. In support of his contentions, he relied upon the judgments of the Hon’ble Supreme Court in the cases of: (i) Bahadursinh Lakhubhai Gohil vs. Jagdishbhai M. Kamalia, (2004) 2 SCC 65 wherein the Hon’ble Supreme Court held that if any statutory authority takes a decision at the behest or on the suggestion of a person who has no statutory role to play, the same would be ultra-vires. Referring to the facts of the present case, he argues that at the instance of CBI, the sanction was again granted, which was earlier refused. He also relied upon the judgments in the cases of; (ii) State of Punjab and Another vs. Mohammed Iqbal Bhatti, 2010 Cri. L.J. 1436 in which the Hon’ble Supreme Court held that when grant of sanction was refused, the very same authority granting sanction again without there being any fresh material cannot be said to be proper. Similar view was taken in the judgment cited in the case of Mohd. Aleemuddin vs. State of Andhra Pradesh, 2014 (1) ALD (Crl.) 120 (AP) and Ashok Shankarrao Chavan vs. His Excellency Shri Ch. Vidyasagar Rao (Bombay).
6. On the other hand, learned Special Public Prosecutor submits that there is nothing wrong with the order of the sanctioning authority granting sanction on 09.11.2016, though refused on 24.01.2015. He also submits that earlier, the competent authority thought it fit to prosecute them departmentally. However, a decision was taken subsequently to grant sanction to the CBI to be prosecuted before the Special Court, which cannot be found fault with.
7. Learned Special Public Prosecutor relied upon the judgment in the case of Avinash Mathur vs. State of Rajasthan, 2011 (2) Crimes 116 wherein the Hon’ble Supreme Court held that granting sanction by the State government to prosecute under the Prevention of Corruption Act and under Section 197 of Cr.P.C. was correct. He also relied upon the judgment in the case of Superintendent of Police (CBI) vs. Deepak Chowdhary, AIR 1996 SC 186 wherein the Hon’ble Supreme Court held that order quashing sanction of an accused on the ground that he was exonerated by the disciplinary authority was not proper. He also relied upon the judgment of Chandan Kumar Basu vs. State of Bihar, (2014) 13 SCC 70 in which, the Hon’ble Supreme Court w
Bahadursinh Lakhubhai Gohil vs. Jagdishbhai M. Kamalia
Chandan Kumar Basu vs. State of Bihar
Mohd. Aleemuddin vs. State of Andhra Pradesh
State of Punjab and Another vs. Mohammed Iqbal Bhatti
The main legal point established is that the competent authority's refusal of sanction under Sec. 197 of the Code of Criminal Procedure while the accused were in service barred their prosecution afte....
Sanction for prosecution of public servants must reflect independent assessment; repeated refusals by the authority, absent new evidence, undermine legitimacy of prosecution.
The Competent Authority cannot review its earlier decision to refuse sanction without fresh materials, and there is a distinction between absence of sanction and alleged invalidity on account of non-....
The main legal point established in the judgment is that the competent authority must consider fresh materials and apply independent mind in granting sanctions for prosecution, in accordance with sta....
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