Case Note & Summary
The petitioners, who are the President, Directors, and employees of Sri Krishna Rajendra Co-operative Bank Ltd., Mysore, filed a criminal petition under Section 482 CrPC seeking to quash the charge sheet dated 6.11.2013 in Crime No.175/2011 (C.C.No.842/2013) pending before the JMFC-III, Mysore. The case arose from a cheque dishonour complaint, but the petitioners argued that they are public servants under Section 21 of the IPC and Section 116 of the Karnataka Co-operative Societies Act, 1965, and that no sanction for prosecution had been obtained as required under Section 197 CrPC and Section 116 of the Act. The High Court, after hearing the parties, held that the petitioners are indeed public servants and that the prosecution without prior sanction is not maintainable. The court observed that the absence of sanction vitiates the proceedings and that continuing the prosecution would be an abuse of the process of the court. Accordingly, the court allowed the petition and quashed the entire proceedings in C.C.No.842/2013.
Headnote
A) Criminal Procedure Code - Sanction for Prosecution - Section 197 CrPC - Public Servant - Directors and employees of a co-operative bank are public servants under Section 21 IPC and Section 197 CrPC - Prosecution without prior sanction is invalid - Held that the petitioners, being public servants, cannot be prosecuted without sanction under Section 197 CrPC (Paras 5-7).
B) Karnataka Co-operative Societies Act - Sanction for Prosecution - Section 116 - Co-operative Bank - Directors and employees of a co-operative society are deemed public servants - Prosecution without sanction under Section 116 is not maintainable - Held that the proceedings are liable to be quashed for want of sanction (Paras 5-7).
C) Criminal Procedure Code - Inherent Powers - Section 482 CrPC - Quashing of Proceedings - Abuse of Process - Where prosecution is barred by law, the High Court can quash proceedings to prevent abuse of process - Held that the criminal petition is allowed and the proceedings in C.C.No.842/2013 are quashed (Para 7).
Issue of Consideration
Whether the prosecution of the petitioners, who are directors and employees of a co-operative bank, is maintainable without prior sanction under Section 197 CrPC and Section 116 of the Karnataka Co-operative Societies Act, 1965, and whether the criminal proceedings should be quashed.
Final Decision
The criminal petition is allowed. The charge sheet dated 6.11.2013 in Crime No.175/2011 and the proceedings in C.C.No.842/2013 on the file of JMFC-III, Mysore, are quashed.
Law Points
- Sanction for prosecution
- Public servant
- Section 197 CrPC
- Section 116 Karnataka Co-operative Societies Act
- 1965
- Quashing of criminal proceedings
- Abuse of process of court
Case Details
2014 LawText (KAR) (03) 31
Criminal Petition No.794/2014
M.R. Rajagopal for Ramachandra N (for petitioners), B.J. Eshwarappa, HCGP (for respondent)
H. Vasu, Parvathamma, Pratidwani Prasad, N. Siddappa, Tayuru Vittal Murthy, Gangadhar, Panchakshari, Mallanna (Retd. Manager), Rangaswamy (Retd. Manager), M. Ganesh, Rajendra Prasad
State of Karnataka, Rep. by Sub-Inspector of Police, Krishnaraja P.S., Mysore
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Nature of Litigation
Criminal petition under Section 482 CrPC for quashing of charge sheet and criminal proceedings in a cheque dishonour case.
Remedy Sought
Quashing of charge sheet dated 6.11.2013 in Crime No.175/2011 (C.C.No.842/2013) and quashing of proceedings in C.C.No.842/2013 on the file of JMFC-III, Mysore.
Filing Reason
The petitioners, being directors and employees of a co-operative bank, are public servants and the prosecution was initiated without obtaining prior sanction under Section 197 CrPC and Section 116 of the Karnataka Co-operative Societies Act, 1965.
Issues
Whether the petitioners are public servants entitled to protection under Section 197 CrPC and Section 116 of the Karnataka Co-operative Societies Act, 1965?
Whether the criminal proceedings against the petitioners are liable to be quashed for want of sanction?
Submissions/Arguments
The petitioners argued that they are public servants under Section 21 IPC and Section 116 of the Karnataka Co-operative Societies Act, 1965, and that no sanction for prosecution was obtained, making the proceedings invalid.
The respondent State opposed the petition, but the court found merit in the petitioners' contention.
Ratio Decidendi
Directors and employees of a co-operative bank are public servants under Section 21 IPC and Section 116 of the Karnataka Co-operative Societies Act, 1965. Prosecution of such public servants without prior sanction under Section 197 CrPC and Section 116 of the Act is not maintainable and amounts to an abuse of the process of the court, warranting quashing under Section 482 CrPC.
Judgment Excerpts
Accused 1 to 7 and 9 to 12 in Crime No.175/2011 registered with Krishna Raja Police, Mysore and subsequently converted...
The petitioners are public servants and no sanction is obtained as required under Section 197 CrPC and Section 116 of the Karnataka Co-operative Societies Act, 1965.
In the absence of sanction, the proceedings are not maintainable and are liable to be quashed.
Procedural History
Crime No.175/2011 was registered by Krishna Raja Police, Mysore, and after investigation, a charge sheet was filed on 6.11.2013, leading to C.C.No.842/2013 before the JMFC-III, Mysore. The petitioners filed Criminal Petition No.794/2014 under Section 482 CrPC seeking quashing of the charge sheet and proceedings.
Acts & Sections
- Code of Criminal Procedure, 1973 (CrPC): 197, 482
- Karnataka Co-operative Societies Act, 1965: 116
- Indian Penal Code, 1860 (IPC): 21
