1998 JTR(SC) 751
1998 AIR(SC) 2595 ; 1995 AIR(SCW) 4701 ; 1998 AIR(SCW) 2629 ; 1998 2 ALD(Cri)(SC) 359 ; 1998 37 AllCriC 1998 ; 1998 4 AllMR(SC) 382 ; 1998 CriLR 614 ; 1998 3 Crimes(SC) 140 ; 1998 CrLJ 4003 ; 1998 2 EastCrC(SC) 861 ; 1998 2 GLH 622 ; 1998 2 JCC 83 ; 1998 5 JT 269 ; 1998 2 KLT(SN) 33 ; 1998 3 RCR(Cri) 771 ; 1998 4 Scale 359 ; 1998 6 SCC 411 ; 1998 SCC(Cri) 1455 ; 1998 3 SCR 961 ; 1999 1 SCT 634 ; 1998 5 SLR 669 ; 1998 KHC 552 ; 1998 6 Supreme 270

1998(6) Supreme 270
Supreme Court of India
(From Orissa High Court)
M.M. Punchhi CJI and K.T. Thomas, J.
Kalicharan Mahapatra -Appellant
versus
State of Orissa -Respondent
Criminal Appeal No. 770 of 1998
(Arising out of SLP (Crl.) No. 3397 of 1994)
Decided on 4-8-1998
Counsel for the Parties :
For the Appellant : Vinoo Bhagat, Advocate.
For the Respondent : Jayant Dass, Sr. Advocate, Raj Kumar Mehta, Advocate.

Important Point
The public servant who committed the offence while he was a public servant, is liable to be prosecuted under Prevention of Corruption Act, 1988 whether be continues in office or not at the time of trial or during the pendency of the prosecution. No sanction is required to prosecute a public servant after retirement.

Act Referred :CRIMINAL PROCEDURE CODE : S.197
PREVENTION OF CORRUPTION ACT : S.13(1)(e), S.13(2)

(A) The Prevention of Corruption Act, 1988, read with Section 197 of the Code of Criminal Procedure, 1898, governs the prosecution of public servants for offences alleged to have been committed while acting in their official capacity. Section 13(1)(e) and Section 13(2) of the Act define the substantive offences, while Section 19(1) prescribes that no court shall take cognizance of offences under Sections 7, 10, 11, 13, and 15 without previous sanction. The critical issue is whether the requirement of sanction under Section 19 applies to a public servant who has ceased to hold office at the time the court takes cognizance, even though the offence was committed when the person was still a public servant. The Code specifically contemplates prosecution of a person who is or was a public servant under Section 197, and the corresponding provisions of the Prevention of Corruption Act, 1947, were interpreted by this Court as permitting prosecution without sanction after retirement. The Parliament, while amending Section 197 of the Code to include former public servants, deliberately did not alter the wording of Section 19 of the Act, maintaining the distinction that sanction is required only while the person is a public servant at the time the court takes cognizance.

(B) The core legal principles are: (i) a public servant who commits an offence under the Act while in office remains liable for prosecution irrespective of whether they continue to hold office at the time of trial; (ii) the requirement of previous sanction under Section 19 is contingent on the public servant being in office when the court takes cognizance; (iii) if the public servant has ceased to be a public servant, the court can take cognizance without obtaining such sanction; and (iv) the protection under Section 197 of the Code is not rendered illusory by reading down the Act to permit acts committed before retirement to go unpunished.

Facts of the case:

An IPS Officer reached the rank of Superintendent of Police in Orissa. A raid at his residence on 12.5.1990 recovered cash and jewellery, leading to a charge under Section 13(2) of the Prevention of Corruption Act, 1988. He retired on 31.12.1990, but the investigation continued. A charge-sheet was filed on 30.9.1992 under Sections 13(2) and 13(1)(e). The accused challenged the constitution of the Special Court and filed a preliminary objection that he could not be tried since he was no longer a public servant. The Special Court and the High Court rejected these objections, leading to this appeal.

Findings of Court:

The Court held that the offences under the Act must be committed by a public servant, and the liability to prosecution does not vanish merely because the public servant demits office. The interpretation that a retired public servant cannot be prosecuted would lead to absurd consequences, such as timing offences to avoid prosecution. The Court relied on earlier precedents which held that the words "is or was a public servant" in Section 197 of the Code ensure that sanction is not required when the court takes cognizance after retirement. The Special Court and the High Court were correct in rejecting the preliminary objections, and the appeal was dismissed.

Issues:

Whether a public servant who commits an offence under the Prevention of Corruption Act while in office can be prosecuted after retiring, when the court takes cognizance of the offence without obtaining previous sanction as required under Section 19 of the Act.

Ratio Decidendi:

The liability for an offence under the Act arises at the time of commission, and the requirement of previous sanction under Section 19 applies only if the accused is a public servant at the time the court takes cognizance. If the accused is no longer a public servant, the court can proceed without such sanction, and prosecution for acts committed while in office is maintainable.

Result:

The appeal is dismissed, and the orders of the Special Court and the High Court are upheld.

Judgment

Thomas, J.-Leave granted.

2. Appellant was an IPS Officer who reached upto the level of Superin­tendent of Police in the State Police Service, Orissa. Based on some sleuth informations raid was conducted in the residence of the appel­lant on 12.5.1990 and a good amount of cash and jewellery were recov­ered. A case was registered against him under Section 13(2) of the Prevention of Corruption Act, 1988 (for short “the Act”). On 31.12.1990 appellant retired from service but the investigation into the case continued. On 30.9.1992 the Vigilance Department submitted a charge-sheet against the appellant for the offence under Section 13(2) read with Section 13(1)(e) of the Act.

3. The case was since transferred to the Court of Special Judge, Bhubaneswar which was established under the provisions of Orissa Special Courts Act, 1990. Appellant made a multi-pronged move against the prosecution. At the first instance he challenged the very consti­tution of Special Court and then he raised a preliminary objection that he is not liable to be tried under the Act since he was no more a public servant. His challenge against the constitution of the Special Court did not succeed in spite of that contention having been taken up to this Court in SLP (C) No. 13776/93 which was dismissed by this Court. But he persisted with his preliminary objection which was over-ruled by the Special Court. He then moved the High Court under Section 482 of the Code of Criminal Procedure (For short ‘the Code’) to have the prosecution proceedings quashed on that ground but the High Court dismissed the petition as per the impugned order.

4. The main contention of the appellant was that the legislature did not include a retired public servant within the purview of the Act and that there is no mention in the Act about a person who ceased to be a public servant. He invited our attention to Section 197 of the Code which envisages sanction for prosecution of public servants and point­ed out that the section is now applicable to former public servants also by virtue of the specific words in the Section “any person who is or was .... a public servant”. According to the counsel since such words have not been employed in any of the provisions of the Act it could be inferred with reasonable precision that no prosecution can be launched or continued against a person who, though was a public serv­ant at the time of commission of the offence, ceased to be so subse­quently.

5. “Public servant” is defined in Section 2(c) of the Act. It does not include a person who ceased to be a public servant. Chapter III of the Act which contains provisions for offences and penalties does not point to any person who became a non-public servant, according to the counsel.

6. Among the provisions subsumed in the Chapter, Sections 8, 9, 12 and 15 deal with offences committed by persons who need not be public servants, though all such offences are intertwined with acts of public servants. The remaining provisions in the Chapter deal with offences committed by public servants. Section 7 of the Act contemplates of­fence committed by a person who expects to be public servant.

7. There is no indication anywhere in the above provisions that an offence committed by a public servant under the Act would vanish off from penal liability at the moment he demits his office as public servant. His being a public servant is necessary when he commits the offence in order to make him liable under the Act. He cannot commit any such offence after he demits his office. If the interpretation now sought to be placed by the appellant is accepted it would lead to the absurd position that any public servant could commit the offences under the Act soon before retiring or demiting his office and thus avert any prosecution for it or that when a public servant is prose­cuted for an offence under the Act he can secure an escape by pro­tracting the trial till the date of superannuation.

8. Learned counsel for the appellant invited our attention to Section 19(1) of the Act which reads thus :

“19. Previous sanction necessary for prosecution.-(1) No Court shall take cognizance of an offence punishable under Sections 7, 10, 11, 13 and 15 alleged to have been committed by a public servant, except with the previous sanction,-

(a) in the case of a person who is employed in connection with the affairs of the Union and is not removable from his office save by or with the sanction of the Central Government, of that Government;

(b) in the case of a person who is employed in connection with the affairs of a State and is not removable from his office save by or with the sanction of the State Government, of that Government;

(c) in the case of any other person, of the authority competent to remove him from his office.”

9. It was contended that if the case does not fall under sub-clause (a) or sub-clause (b) it should necessary fall under sub-clause (c) and otherwise no prosecution can lie for any offence under this Act. A person who ceased to be public servant cannot be removed from any office, and hence it is contended that he cannot be prosecuted for any offence under the Act.

10. Section 19(1) of the Act is in para materia with Section 6(1) of the preceding enactment i.e. Prevention of Corruption Act, 1947 (the Old Act). When a similar contention was raised before a three Judge Bench of this Court regarding Section 6 of the Old Act in S.A. Venka­taraman v. The State1, that contention was repelled. It was held thus:

“The words in Section 6(1) of the Act are clear enough and they must be given effect to. There is nothing in the words used in Section 6(1) to even remotely suggest that previous sanction was necessary before a court could take cognizance of the offences mentioned therein in the case of a person who had ceased to be a public servant at the time the court was asked to take cognizance, although he had been such a person at the time the offence was committed. It was suggested that clause (c) in Section 6(1) refers to persons other than those mentioned in cls. (a) and (b). The words ‘is employed’ are absent in this clause which would, therefore, apply to a person who had ceased to be a public servant though he was so at the time of the commission of the offence. Clause (c) cannot be construed in this way. The expressions ‘in the case of a person’ and `in the case of any other person’ must refer to a public servant having regard to the first paragraph of the sub-section. Clauses (a) and (b), therefore, would cover the case of a public servant who is employed in connection with the affairs of the Union or a State and is not removable from his office save by or with the sanction of the Central Government or the State Government and clause (c) would cover the case of any other public servant whom a competent authority could remove from his office. The more important words in clause (c) are `of the authority competent to remove his from his office’.”

The same view was adopted by another three Judge Bench in C.R. Bansi v. State of Maharashtra2. This was followed in State of West Bengal etc. v. Manmal Bhutoria & Ors. etc.3. The Constitution Bench in K. Veeraswami v. Union of India & Ors.4 upheld the view that no sanction is required to prosecute a public servant after retirement.

11. Learned counsel, however, contended that the legal position must be treated as changed under the Prevention of Corruption Act of 1988 since Parliament has in the meanwhile changed the wording in Section 197 of the Code. The provision provided a check against launching prosecution proceedings against a public servant on the accusation of having committed an offence while acting or purporting to act in the discharge of his official duty. For such prosecution sanction of the Government is made a condition precedent under Section 197 of the Code of Criminal Procedure 1898 (the old Code). But such a sanction was not then necessary when a retired public servant was prosecuted. However, in the corresponding provision of the present Code (Section 197) the necessity for previous sanction is made applicable to former public servants also by using the words “when any person who is or was a public servant”. The contention here is that the earlier decisions of the Court were rendered at a time when sanction for prosecution was not contemplated in Section 197 of the Code as for a public servant who has retired from service. Hence, according to him those decisions are of no help to sustain the same view now.

12. In R. Balakrishna Pillai v. State of Kerala & Anr.5 learned Chief Justice Ahmadi has referred to the Law Commission’s Report which suggested an amendment to Section 197 of the Code. The observation of the Law Commission in paragraph 15.123 of its Report reads thus :

“It appears to us that protection under the section is needed as much after retirement of the public servant as before retirement. The protection afforded by the section would be rendered illusory if it were open to a private person harbouring a grievance to wait until the public servant ceased to hold his official position, and then to lodge a complaint. The ultimate justification for the protection conferred by Section 197 is the public interest in seeing that official acts do not lead to needless or vexatious prosecutions. It should be left to the Government to determine from that point of view the question of the expediency of prosecuting any public servant.”

Their Lordships after referring to the above Report have observed : “It was in pursuance of this observation that the expression `was’ came to be employed after the expression `is’ to make the sanction applicable even in cases where a retired public servant is sought to be prosecuted.”

13. It must be remembered that in spite of bringing such a significant change to Section 197 of the Code in 1973, the Parliament was circums­pect enough not to change the wording in Section 19 of the Act which deals with sanction. The reason is obvious. The sanction contemplated in Section 197 of the Code concerns a public servant who “is accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his official duty”, whereas the offences contemplated in the P.C. Act are those which cannot be treat­ed as acts either directly or even purportedly done in the discharge of his official duties. Parliament must have desired to maintain the distinction and hence the wording in the corresponding provision in the former P.C. Act was materially imported in the new P.C. Act, 1988 without any change in spite of the change made in Section 197 of the Code.

14. The result of the above discussion is thus : A public servant who committed an offence mentioned in the Act, while he was a public servant, can be prosecuted with the sanction contemplated in Section 19 of the Act if he continues to be a public servant when the court takes cognizance of the offence. But if he ceases to be a public servant by that time the Court can take cognizance of offence without any such sanction. In other words, the public servant who committed the offence while he was a public servant, is liable to be prosecuted whether he continues in office or not at the time of trial or during the pendency of the prosecution.

15. The Special Court and the High Court have, therefore, rightly repelled the preliminary objections of the appellant. Accordingly we dismiss this appeal.

(N.K.R.) Appeal dismissed.

***********

Parallel Citations of other Journals :

Kalicharan Mahapatra v. State of Orissa, 1998(6) Supreme 270 : AIR 1998 SC 2595 : 1998 SCC (Cri.) 1455 : 1998(V) AD (SC) 561

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