Case Note & Summary
The Supreme Court dismissed an appeal by Bharat Sanchar Nigam Limited (BSNL) and its officers against the rejection of their challenge to prosecution under the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981. The respondent had filed a complaint alleging that BSNL engaged unregistered security guards in violation of the Act. The Magistrate issued process in 2003, which the appellants sought to recall on grounds including lack of sanction under Section 197 CrPC, claiming they were public servants. The High Court rejected the writ petition, relying on Mohd. Hadi Raja v. State of Bihar to hold that protection under Section 197 CrPC was not available to officers of government companies. The Supreme Court affirmed, noting that appellants 3 and 4 had been absorbed into BSNL and ceased to be government employees, thus not entitled to sanction. For appellant 2, who was on deputation, the Court held that the question of his status was a matter of evidence to be decided by the Magistrate during trial. The Court reiterated that employees of public sector corporations are not entitled to Section 197 CrPC protection, as established in Mohd. Hadi Raja and subsequent cases.
Headnote
A) Criminal Procedure - Sanction for Prosecution - Section 197 CrPC - Public Servant - Employees of public sector corporations are not entitled to protection under Section 197 CrPC even if they are 'public servants' under Section 21 IPC, as held in Mohd. Hadi Raja v. State of Bihar. (Paras 8-10) B) Criminal Procedure - Sanction for Prosecution - Section 197 CrPC - Absorption in Corporation - Officers who were originally in Central Civil Services but were absorbed in a public sector corporation cease to be government employees and are not entitled to sanction under Section 197 CrPC. (Para 7) C) Criminal Procedure - Sanction for Prosecution - Section 197 CrPC - Three Mandatory Requirements - The three requirements are: (a) accused is a public servant; (b) removable from office by or with sanction of Central or State Government; (c) offence committed while acting in discharge of official duty. (Para 11) D) Criminal Procedure - Sanction for Prosecution - Section 197 CrPC - Deputation - Status of an officer on deputation to a corporation is a matter of evidence to be considered by the Magistrate during trial. (Para 12)
Issue of Consideration
Whether employees of a public sector corporation, who were originally appointed in Central Civil Services but later absorbed in the corporation, are entitled to protection under Section 197 CrPC requiring sanction for prosecution.
Final Decision
The Supreme Court dismissed the appeal, holding that appellants 3 and 4 were not entitled to sanction under Section 197 CrPC as they were absorbed in BSNL and ceased to be government employees. For appellant 2, the Court left the question of his status to be determined by the Magistrate during trial based on evidence.
Law Points
- Section 197 CrPC protection not available to employees of government companies or public undertakings
- Absorption in corporation terminates government service status
- Sanction requirement depends on status at time of offence
- Three mandatory requirements for Section 197 CrPC protection
