Case Note & Summary
The petitioners, Ms. Swapna (Secretary) and Sri B.R. Ramesh (Founder Trustee) of Sri Balaji Educational Charitable Trust, filed a petition under Section 482 CrPC seeking quashing of the order dated 25.01.2017 passed by the C.J.M. Rural Court, Bengaluru Rural in C.C.No.879/2017, whereby cognizance was taken against them for offences punishable under Sections 406, 409 read with Section 34 IPC. The complaint was filed by the Enforcement Officer of the Employees Provident Fund Organisation alleging that the petitioners, as employers, deducted PF contributions from employees' salaries but failed to remit the same to the PF account, thereby committing criminal breach of trust. The petitioners contended that they were public servants within the meaning of Section 21 IPC and the alleged acts were in discharge of their official duty, thus sanction under Section 197 CrPC was mandatory before taking cognizance. The court examined the definition of 'public servant' under Section 21 IPC and held that the petitioners, being office bearers of a trust running an educational institution, fell within the ambit of public servant. The court further held that the failure to remit PF amounts was directly connected with their official duties as employers. Since no sanction under Section 197 CrPC was obtained, the order taking cognizance was without jurisdiction and liable to be quashed. The court allowed the petition and quashed the impugned order.
Headnote
A) Criminal Procedure Code - Sanction for Prosecution - Section 197 CrPC - Public Servant - The petitioners, being Secretary and Founder Trustee of a Trust running an educational institution, were public servants under Section 21 IPC. The alleged misappropriation of PF amounts was in discharge of official duty. Cognizance taken without prior sanction under Section 197 CrPC is invalid. (Paras 1-10) B) Indian Penal Code - Criminal Breach of Trust - Sections 406, 409 IPC - Quashing - The complaint alleged that petitioners failed to remit PF contributions deducted from employees' salaries. Since the act was in discharge of official duty, sanction under Section 197 CrPC was required. In absence thereof, the order taking cognizance is quashed. (Paras 1-10)
Issue of Consideration
Whether the order taking cognizance against the petitioners for offences under Sections 406, 409 read with Section 34 IPC is liable to be quashed for want of sanction under Section 197 CrPC?
Final Decision
The petition is allowed. The order dated 25.01.2017 passed by the C.J.M. Rural Court, Bengaluru Rural in C.C.No.879/2017 taking cognizance against the petitioners for offences under Sections 406, 409 read with Section 34 IPC is quashed.
Law Points
- Sanction under Section 197 CrPC is mandatory for prosecution of public servants for offences committed while acting in discharge of official duty
- Cognizance without sanction is invalid
- Quashing under Section 482 CrPC is warranted when cognizance is taken without sanction
