Case Note & Summary
The petitioners, M/s. Ghataprabha Sahakari Sakkare Karkhane Niyamit (a cooperative society) and its Chairman, Lakhan Laxmanrao Jarkiholi, filed two writ petitions under Articles 226 and 227 of the Constitution read with Section 482 CrPC seeking quashing of charge sheets filed by the CBI in two separate cases. The charge sheets alleged offences under various sections of the IPC and the Prevention of Corruption Act, 1988, relating to alleged bank frauds involving Canara Bank and Union Bank of India. The petitioners contended that the Chairman, being a public servant under Section 21 IPC, was entitled to protection under Section 197 CrPC, and the CBI had not obtained prior sanction before filing the charge sheets. The CBI opposed the petitions, arguing that the Chairman was not a public servant and that sanction was not required. The court examined the definition of 'public servant' under Section 21 IPC and the provisions of the Karnataka Cooperative Societies Act, 1959, and held that the Chairman of a cooperative society is a public servant. Consequently, the court held that the charge sheets filed without prior sanction under Section 197 CrPC were invalid and quashed the proceedings in both cases, allowing the writ petitions.
Headnote
A) Criminal Procedure Code - Sanction for Prosecution - Section 197 CrPC - Public Servant - Chairman of a cooperative society is a public servant under Section 21 of the Indian Penal Code, 1860 - The court held that the Chairman of a cooperative society registered under the Karnataka Cooperative Societies Act, 1959, is a public servant within the meaning of Section 21 IPC, and therefore, prior sanction under Section 197 CrPC is mandatory before taking cognizance of offences alleged to have been committed while acting in discharge of official duties. (Paras 10-15)
B) Criminal Procedure Code - Quashing of Charge Sheet - Section 482 CrPC - Lack of Sanction - The court quashed the charge sheets in CBI C.C. No. 5/2011 and CBI C.C. No. 1/2011 as the CBI failed to obtain prior sanction under Section 197 CrPC before filing the charge sheets against the Chairman, who is a public servant. The court held that the proceedings are an abuse of process of law and liable to be quashed. (Paras 16-20)
Issue of Consideration
Whether the Chairman of a cooperative society is a public servant entitled to protection under Section 197 CrPC, and whether the charge sheets filed without prior sanction are liable to be quashed.
Final Decision
The court allowed the writ petitions and quashed the charge sheets in both cases, holding that the Chairman of the cooperative society is a public servant and the proceedings without prior sanction under Section 197 CrPC are an abuse of process of law.
Law Points
- Sanction under Section 197 CrPC is mandatory for prosecution of public servants for acts done in discharge of official duties
- Chairman of cooperative society is a public servant under Section 21 IPC
- Charge sheet quashed for lack of sanction
Case Details
2019 LawText (KAR) (02) 80
Writ Petition No.66630/2012 (GM-RES) and Writ Petition No.66631/2012 (GM-RES)
Sri. Ashok Harnahalli, Senior Advocate for Sri. Hemant R. Chandangoudar, Advocate for petitioners; Sri. M.B. Kanavi, Advocate for respondent No.1; M/s Sachin Bichu Associates for respondent No.2 (absent)
M/s. Ghataprabha Sahakari Sakkare Karkhane Niyamit and Lakhan Laxmanrao Jarkiholi
Central Bureau of Investigation and Canara Bank / Union Bank of India
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Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution read with Section 482 CrPC seeking quashing of charge sheets filed by CBI.
Remedy Sought
Quashing of charge sheets dated 29.12.2010 and 10.05.2011 in CBI C.C. No.5/2011 (renumbered as Spl. CBI C.C. No.76/2012) and CBI C.C. No.1/2011 (renumbered as Spl. CBI C.C. No.81/2012) pending before the Special Court for CBI Matters and the learned XLVIII Addl. City Civil & Sessions Judge, Bangalore.
Filing Reason
The petitioners challenged the charge sheets on the ground that the Chairman of the cooperative society is a public servant and the CBI did not obtain prior sanction under Section 197 CrPC before filing the charge sheets.
Issues
Whether the Chairman of a cooperative society is a public servant under Section 21 IPC?
Whether the charge sheets filed without prior sanction under Section 197 CrPC are liable to be quashed?
Submissions/Arguments
Petitioners argued that the Chairman is a public servant under Section 21 IPC and the Karnataka Cooperative Societies Act, and therefore, prior sanction under Section 197 CrPC is mandatory before taking cognizance of offences alleged to have been committed in discharge of official duties.
Respondent CBI argued that the Chairman is not a public servant and that sanction under Section 197 CrPC is not required.
Ratio Decidendi
The Chairman of a cooperative society registered under the Karnataka Cooperative Societies Act, 1959, is a public servant within the meaning of Section 21 of the Indian Penal Code, 1860. Therefore, prior sanction under Section 197 of the Code of Criminal Procedure, 1973, is mandatory before taking cognizance of offences alleged to have been committed by such a public servant while acting in discharge of official duties. Failure to obtain such sanction renders the criminal proceedings liable to be quashed as an abuse of process of law.
Judgment Excerpts
The Chairman of a cooperative society is a public servant within the meaning of Section 21 of the Indian Penal Code.
The charge sheets filed without prior sanction under Section 197 CrPC are liable to be quashed.
Procedural History
The CBI filed charge sheets on 29.12.2010 and 10.05.2011 in CBI C.C. No.5/2011 and CBI C.C. No.1/2011 respectively, which were later renumbered as Spl. CBI C.C. No.76/2012 and Spl. CBI C.C. No.81/2012, pending before the Special Court for CBI Matters and the learned XLVIII Addl. City Civil & Sessions Judge, Bangalore. The petitioners filed writ petitions under Articles 226 and 227 of the Constitution read with Section 482 CrPC seeking quashing of the charge sheets. The High Court of Karnataka, Dharwad Bench, heard the matter and delivered judgment on 20.02.2019.
Acts & Sections
- Code of Criminal Procedure, 1973 (CrPC): 197, 482
- Indian Penal Code, 1860 (IPC): 21
- Prevention of Corruption Act, 1988:
- Karnataka Cooperative Societies Act, 1959:
- Constitution of India: 226, 227
