Case Note & Summary
The judgment arises from a Criminal Revision Application filed by the Central Bureau of Investigation (CBI) challenging an order of the Special Judge (PMLA) that had discharged the accused on the ground that sanction under Section 197 of the Code of Criminal Procedure, 1973 (CrPC) was required before taking cognizance of offences under the Prevention of Money Laundering Act, 2002 (PMLA). The accused, who were public servants, had been charged with money laundering. The Special Judge had held that since the accused were public servants, sanction under Section 197 CrPC was necessary. The CBI challenged this order. Additionally, the accused filed writ petitions seeking to quash the proceedings on similar grounds. The court consolidated these matters. The core legal issue was whether the PMLA, being a special statute, requires sanction under Section 197 CrPC for prosecution of public servants. The court analyzed the scheme of the PMLA, particularly Section 44 which deals with cognizance of offences, and compared it with the CrPC. The court noted that the PMLA is a complete code in itself and its provisions override the CrPC in case of conflict. The court held that the Special Court under PMLA is a court of original criminal jurisdiction and not a sessions court under the CrPC. Therefore, the requirement of sanction under Section 197 CrPC does not apply to PMLA offences. The court also observed that the PMLA does not incorporate the requirement of sanction for prosecution of public servants. Consequently, the court allowed the CBI's revision application and set aside the order of discharge. The writ petitions filed by the accused were dismissed. The court directed the Special Court to proceed with the trial in accordance with law.
Headnote
A) Criminal Procedure Code - Sanction for Prosecution - Section 197 CrPC - Applicability to PMLA Offences - The issue was whether sanction under Section 197 CrPC is required for prosecution of public servants under the Prevention of Money Laundering Act, 2002 (PMLA). The court held that PMLA is a complete code and its offences are not scheduled offences under the CrPC, hence no sanction under Section 197 CrPC is necessary. The Special Court under PMLA can take cognizance without such sanction. (Paras 1-27) B) Prevention of Money Laundering Act - Cognizance of Offences - Section 44 PMLA - The court examined the scheme of PMLA and held that the Special Court under PMLA is not a court of session under the CrPC but a court of original criminal jurisdiction. Therefore, the requirement of sanction under Section 197 CrPC does not apply. The court relied on the principle that PMLA is a complete code and its provisions prevail over the CrPC. (Paras 15-27)
Issue of Consideration
Whether sanction under Section 197 of the Code of Criminal Procedure, 1973 is necessary for taking cognizance of offences under the Prevention of Money Laundering Act, 2002 against public servants.
Final Decision
The court allowed the Criminal Revision Application No.297 of 2023 filed by CBI, setting aside the order of discharge. The Writ Petitions No.4812 of 2022 and 4811 of 2022 filed by the accused were dismissed. The Special Court was directed to proceed with the trial in accordance with law.
Law Points
- Sanction under Section 197 CrPC not required for PMLA offences
- PMLA is a complete code
- PMLA offences are not scheduled offences under CrPC
- Cognizance by Special Court under PMLA is valid without sanction
