Case Note & Summary
The Supreme Court addressed the question of whether officers of public sector undertakings and government companies require sanction under Section 197 of the Code of Criminal Procedure, 1973 for prosecution. The case arose from various appeals concerning the applicability of this provision to officers who are considered as State under Article 12 of the Constitution due to the government's pervasive control over these entities. The court examined the legal definitions and precedents regarding public servants and the nature of public sector undertakings. It was argued that these officers should be treated similarly to government servants for the purpose of sanction, as they perform functions intended to be carried out by the State. However, the court concluded that despite the deep and pervasive control of the government, these officers are distinct legal entities and do not fall under the protective umbrella of Section 197. The court emphasized that the legislature did not intend to include them within this provision, and any liberal interpretation would amount to judicial legislation. The appeals were dismissed, but the court allowed the accused to challenge the validity of the criminal proceedings on other grounds if available in law.
Headnote
A) Criminal Procedure - Sanction for Prosecution - Applicability of Section 197 CrPC - Officers of public sector undertakings are not entitled to protection under Section 197 of the Code of Criminal Procedure, 1973, even if they are considered as State under Article 12 of the Constitution. The court held that the protection under Section 197 is not available to officers of public undertakings as they are distinct legal entities and not directly employed by the government (Paras 1-10).
Issue of Consideration
Whether the provisions of sanction under Section 197 of the Code of Criminal Procedure, 1973 are applicable for prosecuting officers of public sector undertakings or government companies.
Final Decision
The Supreme Court held that the protection under Section 197 of the Code of Criminal Procedure is not applicable to the officers of government companies or public undertakings, even if they are considered as State under Article 12 of the Constitution due to deep and pervasive control of the government.
Law Points
- Sanction under Section 197 CrPC
- Public servants
- Instrumentality of State
- Article 12 Constitution
- Deep and pervasive control


