Issue for consideration: Whether the appellant, an Assistant General
Manager of a Nationalised Bank is removable from his offi ce save by or
with the sanction of the Government so as to make s.197, CrPC applicable;
and if he can be proceeded against for off ences punishable under the IPC
despite the sanction u/s.19, PC Act, 1988 to prosecute him for the off ences
thereunder was declined.
Code of Criminal Procedure, 1973 – s.197 – When not attracted:
Held: Although a person working in a Nationalised Bank is a public
servant, yet the provisions of s.197 would not be attracted at all as s.197 is
attracted only in cases where the public servant is such who is not removable
from his service save by or with the sanction of the Government – Appellant,
an Assistant General Manager, State Bank of India, Overseas Bank is not
holding a post where he could not be removed from service except by or
with the sanction of the Government – Thus, even if it is alleged that he is
a public servant, still the provisions of s.197 are not attracted – Protection
of s.197(1) is available only to such public servants whose appointing
authority is the Central Government or the State Government and not to
every public servant – Banking sector being governed by the RBI and
considered as a limb of the State u/Art.12 and also by virtue of s.46A,
Banking Regulation Act, 1949, the appellant is deemed to be a “public
servant” under the PCAct, 1988 however, the same cannot be extended to
the IPC – Further,sanction contemplated u/s.197, CrPC concerns a public
servant who “is accused of any off ence alleged to have been committed
by him while acting or purporting to act in the discharge of his offi cial duty” whereas, the off ences contemplated in the PC Act, 1988 cannot be
treated as acts either directly or even purportedly done in the discharge
of his offi cial duties – Off ences under the IPC and the PC Act, 1988 are
diff erent and distinct – A distinction is to be drawn between an order of
sanction required for prosecuting a person for commission of an off ence
under the IPC and the PC Act, 1988 – Thus, although, the appellant was
discharged from the off ences punishable under the PC Act, 1988 yet for the
IPC off ences, he can be proceeded further in accordance with law. [Paras
41, 45, 49, 53-55 and 58]
Prevention of Corruption Act, 1988 – s.19 – Code of Criminal
Procedure, 1973 – s.197 – Statutory requirements – Diff erence between:
Held: In the prosecution for the off ences exclusively under the PC
Act, 1988, sanction is mandatory qua the public servant – In cases under
the general penal law against the public servant, the necessity (or otherwise)
of sanction u/s.197, CrPC depends on the factual aspects – The test in the
latter case is of the “nexus” between the act of commission or omission and
the offi cial duty of the public servant. [Para 59]
Code of Criminal Procedure, 1973 – s.216 – Importance given to
sanction – Discussed. [Para 44]
Prevention of Corruption Act, 1988 – s.19 – Sanction under, if
declined on the ground that prosecution against the accused could be
frivolous or vexatious, its eff ect on the trial of the IPC off ences:
Held: This question is not being gone into in the present matter as
sanction initially was not declined on the ground that the prosecution against
the appellant was frivolous or vexatious but on the ground that what was
alleged were mere procedural irregularities in discharge of essential duties
– Whether such procedural irregularities constitute any off ence under the
IPC or not will be looked into by the trial court – The issue highlighted may
be examined by Supreme Court in some other litigation at an appropriate
time. [Para 60]
Words and Phrases – ‘sanction’ in s.197, CrPC – Meaning:
Held: In s.197, CrPC, the word ‘sanction’ has been used as a verb and,
therefore, it will mean to assent, to concur or approval. [Para 43]