Criminal proceedings for breach of trust under Sections 408 and 409 of the IPC cannot be quashed under Section 482 of Cr.P.C. if the final report establishes a prima facie case of misappropriation of entrusted public funds.

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.630/2016 PENDING ON THE FILE OF THE HONBLE CIVIL JUDGE AND JMFC, ARKALGUD FOR THE ALLEGED OFFENCES P/U/S 408, 409 R/W 34 OF IPC.

THIS CRIMINAL PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The petitioner is before this Court calling in question the proceedings in C.C.No.630 of 2016 pending before the Civil Judge and JMFC, Arkalgud registered for offences punishable under Sections 408, 409 read with Section 34 of the IPC.

2. Sans details, facts in brief, are as follows:-

The 2nd respondent/Chief Executive Officer of Hassan Zilla Panchayat is the complainant. The complaint is against the petitioner who at the relevant point of time was working as President of Kathimallenahalli Village Panchayat. The allegation is that during the tenure of the petitioner along with others had misappropriated funds that were to be distributed as salary to the employees/persons who had been engaged under the Mahatma Gandhi National Rural Employment Guarantee Scheme ('the Scheme' for short). This allegation of misappropriation leads to registration of FIR against several people. The petitioner was neither named in the complaint nor in the FIR. It was a general allegation made by the Chief Executive Officer of the Zilla Panchayat.

3. Based on registration of the FIR, the police filed a final report/charge sheet. It is here the name of the petitioner figures as accused No.5. The summary of the charge sheet as found in column No.17 though is not specific against the petitioner with regard to the quantum of misappropriation, the total amount of misappropriation by the petitioner along with others is shown to be Rs.54,85,101/-. The funds that were to be distributed to the workers under the Scheme had to be routed through the Village Panchayat whose President was the petitioner at that point of time. The allegation is for offences punishable under Section 408 and 409 of the IPC. Section 408 of the IPC deals with criminal breach of trust by a clerk or servant. Section 409 of IPC deals with criminal breach of trust by a public servant. The allegations against the petitioner and others would come within the ambit of Section 408 or Section 409 of IPC as the property that was entrusted to the petitioner and others was the salary that had to be paid to the workers under the Scheme which has been misutilised with intention suffering from want of bona fides. Therefore, the allegations are prima facie made in the final report that is filed by the Police. The case at hand is not the one that can be interfered with at this juncture. Finding no merit in the petition, it stands dismissed.

4. It is made clear that observations made in the course of the order would not influence or bind further proceedings against the petitioner pending before the competent Court in the subject C.C.No.630 of 2016.