Case Note & Summary
The Supreme Court heard two appeals by special leave against a common judgment and order dated 29 January 2024 of the High Court of Punjab and Haryana at Chandigarh. The High Court had partly allowed a revision petition by the respondent, discharging him for offences under the Indian Penal Code, 1860 due to lack of sanction under Section 197 of the Code of Criminal Procedure, 1973, but rejecting his discharge for offences under the Prevention of Corruption Act, 1988, holding that amended Section 19 of the PC Act does not apply retrospectively. The appellants were the Central Bureau of Investigation and the first informant/complainant. An FIR was registered on 9 December 2014 under Sections 120B and 420 IPC and Section 13(2) read with Section 13(1)(d) of the PC Act against the respondent, who was then Executive Engineer, Public Health, Municipal Corporation, Chandigarh, alleging wrongful loss exceeding Rs.13.66 crore to the government exchequer. A charge-sheet was filed on 10 October 2016, and charges were framed on 23 November 2021. The respondent retired on 30 September 2016 and applied for discharge citing absence of sanction under Section 197 CrPC and protection under amended Section 19(1) of the PC Act. The Special Court dismissed the application, leading to the High Court's impugned order. The legal issue was whether the High Court correctly discharged the respondent for IPC offences due to lack of sanction under Section 197 CrPC. The appellant argued that the respondent, on deputation to the Municipal Corporation, ceased to be a public servant removable by the government, making Section 197 CrPC inapplicable, citing precedents like S.S. Dhanoa v. Municipal Corporation Delhi and Others. The court analyzed the concept of deputation, noting it involves consensual transfer outside the parent department, and held that the respondent, on deputation, was not removable by the government, thus no sanction was required. The court also affirmed that amended Section 19 of the PC Act does not apply retrospectively, so the respondent could not claim its benefit. The decision set aside the High Court's discharge for IPC offences but upheld the rejection of discharge for PC Act offences.
Headnote
A) Criminal Law - Sanction for Prosecution - Section 197 Code of Criminal Procedure, 1973 - Deputation - The respondent, a public servant removable by the Governor of Punjab, was sent on deputation to the Municipal Corporation, Chandigarh, on usual terms and conditions. The Supreme Court held that upon such deputation, he ceased to be a public servant removable by the government, and thus Section 197 CrPC had no application, requiring no sanction for prosecution under IPC offences. The High Court's discharge order for IPC offences was set aside. (Paras 5, 7, 17-20) B) Criminal Law - Sanction for Prosecution - Section 19 Prevention of Corruption Act, 1988 - Retrospective Application - The respondent, who retired on 30 September 2016, sought discharge under amended Section 19(1) of the PC Act, effective from 26 July 2018, which mandates sanction for retired public servants. The Supreme Court upheld the High Court's finding that the amended provisions have no retrospective application, so the respondent cannot derive benefit from them. The discharge prayer for PC Act offences was rightly spurned. (Paras 1, 4)
Issue of Consideration
Whether the High Court was right in holding that sanction under Section 197 CrPC not having been obtained, the respondent should be discharged for the offences registered under Sections 120B and 420 of the IPC against him
Final Decision
Supreme Court set aside the High Court's discharge order for IPC offences, holding no sanction under Section 197 CrPC required; upheld High Court's rejection of discharge for PC Act offences as amended Section 19 does not apply retrospectively
Law Points
- Sanction under Section 197 CrPC is not required for a public servant on deputation to a municipal corporation
- as he ceases to be removable by the government
- amended Section 19 of the Prevention of Corruption Act
- 1988 does not apply retrospectively to retired public servants
