Supreme Court Dismisses Appeal Against Prosecution for Lack of Sanction Under Cr.P.C. — Employees of public sector corporations not entitled to protection under Section 197, Cr.P.C.

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Case Note & Summary

The dispute arose from the dismissal of a writ application by Bharat Sanchar Nigam Limited and others, challenging their prosecution for lack of sanction under Section 197 of the Code of Criminal Procedure, 1973. A criminal complaint was filed against the appellants for engaging unregistered security guards, leading to the issuance of process against them. The appellants contested the prosecution on various grounds, including the applicability of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981, and the requirement of sanction under Section 197, Cr.P.C. The High Court ruled that the protection under Section 197 was not available to officers of government companies, even if they fell within the definition of 'State' under Article 12 of the Constitution. The appellants argued that they were public servants as they were appointed by the President of India and were removable only by the President. However, the court found that appellants nos.3 and 4 had ceased to be employees of the Indian Telecommunication Service after their absorption into the corporation, thus disqualifying them from claiming protection under Section 197. The court also noted that the status of appellant no.2 was unclear but left the question of his entitlement to protection open for trial consideration. The court emphasized the need for expediting the trial, which had been delayed since 2003, and directed its conclusion within a year. Ultimately, the appeal was dismissed.

Headnote

A) Criminal Procedure - Sanction for Prosecution - Applicability of Section 197 Cr.P.C. - Employees of public sector corporations are not entitled to protection under Section 197, Cr.P.C. - The court held that employees of public sector corporations do not qualify as 'public servants' under Section 197, Cr.P.C., thus sanction for prosecution was not required (Paras 3-15).

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Issue of Consideration

Whether the appellants, as employees of a public sector corporation, were entitled to protection under Section 197 of the Code of Criminal Procedure, 1973.

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Final Decision

The appeal was dismissed, affirming the High Court's ruling that the appellants were not entitled to protection under Section 197, Cr.P.C. The trial was directed to be expedited and concluded within one year.

Law Points

  • Sanction under Section 197 Cr.P.C.
  • Definition of public servant
  • Prosecution of public servants
  • Applicability of Cr.P.C. to public sector employees
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Case Details

2019 LawText (SC) (08) 136

Criminal Appeal No. 503 of 2010

2019-08-19

Navin Sinha, A.S. Bopanna

R.D. Agarwal

Bharat Sanchar Nigam Limited and others

Pramod V. Sawant and another

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Nature of Litigation

Challenge to prosecution for lack of sanction under Cr.P.C.

Remedy Sought

Appellants sought to quash the prosecution.

Filing Reason

Prosecution for engaging unregistered security guards.

Previous Decisions

Writ petition and revisions against prosecution were dismissed.

Issues

Entitlement to protection under Section 197, Cr.P.C. Status of employees of public sector corporations as public servants

Submissions/Arguments

Appellants argued they were public servants entitled to sanction. Respondents contended that appellants ceased to be government employees.

Ratio Decidendi

Employees of public sector corporations do not qualify for protection under Section 197, Cr.P.C. as 'public servants' due to their employment status.

Judgment Excerpts

The protection of sanction under Section 197, Cr.P.C. was not available to officers of Government companies. The question for grant of sanction for prosecution under Section 197, Cr.P.C. on the ground of being a ‘public servant’ is not available to appellants nos.3 and 4. The trial needs to be expedited and concluded at an early date.

Procedural History

The appellants filed a criminal complaint in 2003, which led to the issuance of process against them. Their applications for recall of the process were rejected, and subsequent revisions and writ petitions were dismissed, culminating in the present appeal.

Acts & Sections

  • Code of Criminal Procedure, 1973: Section 197
  • Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981: Section 3(3)
  • Private Security Guards (Regulation of Employment and Welfare) Scheme, 1981: Clauses 26(2)(3), 39, 27
  • Indian Penal Code: Section 21
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