Case Note & Summary
The applicant, Ramchandran Nair, was an employee of LIC and was transferred to LIC Housing Finance Limited (LICHFL) as Chief Executive Officer on 12th April 2008. He was later appointed as Director of LICHFL by a resolution of the company. He faced trial before the Special Judge, Greater Mumbai, for offences under Sections 120B of IPC and Sections 7, 12, and 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988, along with respondent nos. 3 and 4. The applicant filed an application under Section 239 of CrPC for discharge on the ground that he was not a 'public servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, and therefore could not be prosecuted under that Act. The learned Special Judge rejected his application. The applicant then filed a criminal revision application before the Bombay High Court. The High Court examined the definition of 'public servant' under Section 2(c) of the Prevention of Corruption Act, which includes various categories such as persons in the service or pay of the government, persons in the service or pay of a local authority, persons in the service or pay of a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the government, or a government company. The court noted that LICHFL is a company registered under the Companies Act, 1956, and is not a corporation established by a Central or State Act. It is also not an authority or body owned or controlled or aided by the government, nor is it a government company as defined under Section 617 of the Companies Act, 1956. The court held that the applicant, as a Director of LICHFL, does not fall under any of the categories of 'public servant' under Section 2(c) of the Act. The court allowed the revision application, set aside the order of the Special Judge, and discharged the applicant from the offences under the Prevention of Corruption Act. However, the court clarified that the discharge is only in respect of the offences under the Prevention of Corruption Act, and the trial for other offences under the IPC may continue if the law permits.
Headnote
A) Prevention of Corruption Act - Public Servant - Definition under Section 2(c) - Director of LIC Housing Finance Limited (LICHFL) - LICHFL is not a government company or authority established under a Central or State Act, nor is it owned, controlled, or aided by the government. The applicant, though an employee of LIC, was appointed as Director of LICHFL by a resolution of the company. Held that the applicant is not a public servant under Section 2(c) of the Prevention of Corruption Act, 1988, and cannot be prosecuted under the Act. (Paras 1-10) B) Criminal Procedure Code, 1973 - Discharge under Section 239 - Applicability to Prevention of Corruption Act cases - The applicant sought discharge on the ground that he was not a public servant. The court, after examining the definition, allowed the revision and discharged the applicant. (Paras 2, 10) C) Indian Penal Code, 1860 - Section 21 - Definition of 'public servant' - The definition under IPC is not applicable for the Prevention of Corruption Act, which has its own definition under Section 2(c). The court did not rely on IPC Section 21. (Para 4)
Issue of Consideration
Whether a Director of LIC Housing Finance Limited, a subsidiary of LIC, is a 'public servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988, so as to be prosecuted under the said Act.
Final Decision
The court allowed the criminal revision application, set aside the order of the Special Judge, and discharged the applicant from the offences under the Prevention of Corruption Act, 1988. The court clarified that the discharge is only in respect of the offences under the Prevention of Corruption Act, and the trial for other offences under the IPC may continue if the law permits.
Law Points
- Definition of public servant under Section 2(c) of Prevention of Corruption Act
- 1988
- Scope of Section 21 of Indian Penal Code
- Interpretation of 'government company' and 'authority' under Article 12 of Constitution
- Principle of strict construction of penal statutes
