High Court of Karnataka Quashes Criminal Proceedings Against Former Officers of Mysore Paper Mills in Corruption Case — Lack of Sanction Under Section 19 of Prevention of Corruption Act, 1988 Renders Proceedings Invalid. The court held that the order taking cognizance without prior sanction is invalid and the proceedings are liable to be quashed.

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

The petitioners, former officers of Mysore Paper Mills (a State Government undertaking), challenged the order dated 06-05-2013 passed by the Principal District and Sessions Judge and Special Judge, Shivamogga in Crime No.2 of 2013 (PCR No.1/2013). The order took cognizance of offences punishable under Section 13(1)(d)(i)(ii)(iii) of the Prevention of Corruption Act, 1988 read with Sections 166, 120(b), 403, 406, 409, 417, 420, 427 and 477(a) of the IPC. The petitioners contended that they were public servants and that no sanction under Section 19 of the Prevention of Corruption Act, 1988 had been obtained prior to the filing of the complaint. The court examined the records and found that the complaint was filed by the Lokayukta Police without any sanction order. The court held that the requirement of sanction under Section 19 of the Prevention of Corruption Act, 1988 is mandatory and its absence renders the order taking cognizance invalid. Consequently, the court quashed the order dated 06-05-2013 and the entire proceedings in PCR No.1/2013.

Headnote

A) Criminal Procedure - Quashing of Proceedings - Sanction for Prosecution - Section 19 Prevention of Corruption Act, 1988 - The court examined whether the order taking cognizance and the proceedings against the petitioners, who were public servants, could be sustained without a valid sanction under Section 19 of the Prevention of Corruption Act, 1988. The court held that the order taking cognizance was invalid as no sanction had been obtained prior to the filing of the complaint, and the proceedings were quashed. (Paras 1-10)

B) Prevention of Corruption Act - Sanction for Prosecution - Mandatory Requirement - Section 19 Prevention of Corruption Act, 1988 - The court held that the requirement of sanction under Section 19 of the Prevention of Corruption Act, 1988 is mandatory and cannot be dispensed with. The absence of sanction vitiates the entire proceedings. (Paras 5-8)

C) Criminal Procedure - Cognizance of Offence - Invalidity - Section 190 Cr.P.C. read with Section 19 Prevention of Corruption Act, 1988 - The court held that the order taking cognizance of the offence without prior sanction is invalid and the proceedings are liable to be quashed. (Paras 6-9)

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Issue of Consideration

Whether the order taking cognizance and the proceedings in PCR No.1/2013 are liable to be quashed for want of valid sanction under Section 19 of the Prevention of Corruption Act, 1988?

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Final Decision

The court allowed the writ petition, quashed the order dated 06-05-2013 passed by the Principal District and Sessions Judge and Special Judge, Shivamogga in Crime No.2 of 2013 (PCR No.1/2013) and the entire proceedings therein.

Law Points

  • Sanction for prosecution under Section 19 of Prevention of Corruption Act
  • 1988 is mandatory
  • order taking cognizance without sanction is invalid
  • proceedings can be quashed at any stage if lack of sanction is established
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Case Details

2021 LawText (KAR) (11) 25

Writ Petition No.24574 of 2013 (GM- RES)

2021-11-25

M. Nagaprasanna

Sri Vijaya Kumar (for petitioners), Sri Venkatesh S. Arabatti (Special PP for R1)

Sri Anil Kumar B.H., Sri Tankasali S.H., Sri Lokesh M.R.

The Lokayukta Police, Shivamogga; Shivamurthy C.S.

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 Cr.P.C. challenging order taking cognizance and seeking quashing of proceedings in a corruption case.

Remedy Sought

Petitioners sought to quash the order dated 06-05-2013 passed by the Principal District and Sessions Judge and Special Judge, Shivamogga in Crime No.2 of 2013 (PCR No.1/2013) and the entire proceedings therein.

Filing Reason

The petitioners, former officers of Mysore Paper Mills, were aggrieved by the order taking cognizance of offences under the Prevention of Corruption Act, 1988 and IPC without obtaining prior sanction under Section 19 of the Prevention of Corruption Act, 1988.

Previous Decisions

The Principal District and Sessions Judge and Special Judge, Shivamogga passed the impugned order dated 06-05-2013 taking cognizance of the offences.

Issues

Whether the order taking cognizance and the proceedings in PCR No.1/2013 are liable to be quashed for want of valid sanction under Section 19 of the Prevention of Corruption Act, 1988?

Submissions/Arguments

Petitioners argued that they were public servants and no sanction under Section 19 of the Prevention of Corruption Act, 1988 had been obtained prior to the filing of the complaint, rendering the proceedings invalid. Respondent Lokayukta Police did not contest the lack of sanction.

Ratio Decidendi

The requirement of sanction under Section 19 of the Prevention of Corruption Act, 1988 is mandatory. The order taking cognizance without prior sanction is invalid and the proceedings are liable to be quashed.

Judgment Excerpts

The petitioners are before this Court calling in question the order dated 06-05-2013, passed by the Principal District and Sessions Judge and Special Judge, Shivamogga in Crime No.2 of 2013 (PCR No.1/2013), for offences punishable under Section 13(1)(d)(i)(ii)(iii) of the Prevention of Corruption Act, 1988 read with Sections 166, 120(b), 403, 406, 409, 417, 420, 427 and 477(a) of the IPC. The petitioners were Officers in different capacities in Mysore Paper Mills ('the Company' for short), a State Government undertaking. The court held that the requirement of sanction under Section 19 of the Prevention of Corruption Act, 1988 is mandatory and its absence renders the order taking cognizance invalid.

Procedural History

The complaint was filed by the Lokayukta Police, Shivamogga, which led to PCR No.1/2013. The Principal District and Sessions Judge and Special Judge, Shivamogga passed the order dated 06-05-2013 taking cognizance of the offences. The petitioners then filed the present writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 Cr.P.C. challenging the order and seeking quashing of the proceedings.

Acts & Sections

  • Prevention of Corruption Act, 1988: 13(1)(d)(i)(ii)(iii), 19
  • Indian Penal Code, 1860: 166, 120(b), 403, 406, 409, 417, 420, 427, 477(a)
  • Code of Criminal Procedure, 1973: 482
  • Constitution of India: 226, 227
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