High Court of Karnataka Quashes FIR Against Project Manager in Corruption Case — Petitioner Not a Public Servant Under Prevention of Corruption Act. Nirmithi Kendra, a Society Registered Under Karnataka Societies Registration Act, 1960, Does Not Fall Within the Definition of 'Public Servant' Under Section 2(c) of the PC Act, 1988.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, G. Krishnegowda, was the sole accused in Crime No.2/2021 registered by the Anti Corruption Bureau (ACB), Chikkaballapura, for offences punishable under Sections 13(1)(b) read with 13(2) of the Prevention of Corruption Act, 1988 (PC Act). He filed a petition under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) seeking quashing of the FIR and all further proceedings. The petitioner was employed as a Project Manager at Nirmithi Kendra, Chikkaballapura, a society registered under the Karnataka Societies Registration Act, 1960. The Governing Body of the society included the Deputy Commissioner as Chairman and the Chief Executive Officer of the Zilla Panchayat as Executive Chairman. The ACB alleged that the petitioner demanded and accepted a bribe. The primary legal issue was whether the petitioner, as an employee of a registered society, could be considered a 'public servant' under Section 2(c) of the PC Act. The petitioner argued that Nirmithi Kendra is not a public servant as defined under the PC Act, and therefore the ACB lacked jurisdiction. The respondent State contended that the society was controlled by the government and thus its employees were public servants. The court analyzed the definition of 'public servant' under Section 2(c) of the PC Act, which includes various categories such as government employees, employees of corporations established by or under a Central, Provincial or State Act, and employees of government companies. The court noted that Nirmithi Kendra was a society registered under the Karnataka Societies Registration Act, 1960, and not a corporation established by a statute. The court distinguished between a society and a statutory corporation, holding that mere government control does not make the society a 'public servant'. The court relied on the principle that the definition of 'public servant' must be strictly construed. Consequently, the court held that the petitioner was not a public servant and the ACB had no jurisdiction to investigate the case under the PC Act. The court quashed the FIR and all proceedings in Crime No.2/2021 pending before the Principal District & Sessions Judge, Chikkaballapura.

Headnote

A) Criminal Law - Prevention of Corruption Act - Public Servant - Definition - Section 2(c) of Prevention of Corruption Act, 1988 - The petitioner, a Project Manager of Nirmithi Kendra, a society registered under the Karnataka Societies Registration Act, 1960, was alleged to have demanded and accepted a bribe. The court examined whether the society falls within the definition of 'public servant' under Section 2(c) of the PC Act. Held that Nirmithi Kendra is not a 'public servant' as it is not a corporation established by or under a Central, Provincial or State Act, nor is it a government company or an authority. The society is merely a registered society and its employees are not public servants under the PC Act. (Paras 4-10)

B) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Lack of Jurisdiction - The court held that since the petitioner is not a public servant, the ACB had no jurisdiction to investigate the case under the PC Act. The FIR and all proceedings in Crime No.2/2021 were quashed to prevent abuse of process of court. (Paras 11-12)

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Issue of Consideration

Whether the petitioner, a Project Manager of Nirmithi Kendra, a society registered under the Karnataka Societies Registration Act, 1960, can be considered a 'public servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988, and consequently whether the FIR and proceedings under the PC Act are liable to be quashed.

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Final Decision

The court allowed the petition and quashed the FIR and all proceedings in Crime No.2/2021 pending before the Principal District & Sessions Judge, Chikkaballapura.

Law Points

  • Definition of public servant under Section 2(c) of Prevention of Corruption Act
  • 1988
  • Society registered under Karnataka Societies Registration Act
  • 1960 not a public servant
  • Quashing of FIR under Section 482 CrPC for lack of jurisdiction
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Case Details

2021 LawText (KAR) (07) 5

CRL.P.No.2801/2021

2021-07-15

S. Vishwajith Shetty

Sri Papegowda.B. for petitioner, Sri Manmohan.P.N. for respondent

G. Krishnegowda

State of Karnataka, Anti Corruption Bureau, Chikkaballapura

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Nature of Litigation

Criminal petition under Section 482 CrPC seeking quashing of FIR and proceedings under Prevention of Corruption Act, 1988.

Remedy Sought

Petitioner sought quashing of FIR and all further proceedings in Crime No.2/2021 registered by ACB, Chikkaballapura.

Filing Reason

Petitioner alleged that he is not a public servant under the PC Act and therefore the ACB had no jurisdiction to investigate.

Issues

Whether the petitioner, a Project Manager of Nirmithi Kendra, a society registered under the Karnataka Societies Registration Act, 1960, is a 'public servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988. Whether the FIR and proceedings under the PC Act are liable to be quashed for lack of jurisdiction.

Submissions/Arguments

Petitioner argued that Nirmithi Kendra is a society registered under the Karnataka Societies Registration Act, 1960, and not a corporation established by a statute, hence its employees are not public servants under Section 2(c) of the PC Act. Respondent argued that the society is controlled by the government and therefore its employees are public servants.

Ratio Decidendi

A society registered under the Karnataka Societies Registration Act, 1960, is not a 'public servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988, as it is not a corporation established by or under a Central, Provincial or State Act, nor a government company or an authority. Therefore, the ACB has no jurisdiction to investigate offences under the PC Act against employees of such a society.

Judgment Excerpts

Corruption hurts everyone. Corruption erodes the trust of a common man in the system. Petitioner who is the sole accused in Crime No.2/2021 registered by the Anti Corruption Bureau (ACB), Chickkaballapura, for the offences punishable under Sections 13(1)(b) read with 13(2) of the Prevention of Corruption Act, 1988, has filed this petition under Section 482 Cr.PC with a prayer to quash the FIR and all further proceedings. Nirmithi Kendra is a society registered under the Karnataka Societies Registration Act, 1960. The Governing Body of the Nirmithi Kendra comprises of the Deputy Commissioner of the District as the Chairman, Chief Executive Officer of the Zilla Panchayat as the Executive Chairman. The definition of 'public servant' under Section 2(c) of the PC Act does not include employees of a society registered under the Karnataka Societies Registration Act, 1960.

Procedural History

The ACB registered Crime No.2/2021 against the petitioner for offences under Sections 13(1)(b) read with 13(2) of the PC Act. The petitioner filed a petition under Section 482 CrPC before the High Court of Karnataka seeking quashing of the FIR and proceedings. The petition was heard and reserved for orders on 30.06.2021, and the order was pronounced on 15.07.2021.

Acts & Sections

  • Prevention of Corruption Act, 1988: 2(c), 13(1)(b), 13(2)
  • Code of Criminal Procedure, 1973: 482
  • Karnataka Societies Registration Act, 1960:
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