By Tannu

TITLE :-  PSUdidnotgrantsanctionforprosecutionunderthePreventionofCorruptionagainstthe ‘commercialinterest’ofthecompanyaswellasthe ‘publicinterest’. (Section 197 of CRPC )

Case:- A Srinivasulu v. The State represented by the Inspector of Police.

CASE NUMBER :-CRIMINAL APPEAL NO.2417 OF 2010.

COURT:- SUPREME COURT OF INDIA.

JURISDICTION:- CRIMINAL APPEALLATE JURISDICTION.

BENCH:-JUSTICE V RAMASUBRAMANIAN 

PANKAJMITHAL

CASE LAWS:- D. Devaraja vs. Owais Sabeer Hussain

Statethrough CBI v. V. ArulKumar

ParkashSinghBadal v. State of Punjab(2007)

Brief facts and procedural history:-

1. In this case there are seven persons, four of whom were officers of BHEL, Trichy (a Public SectorUndertaking), and the remaining three engaged in private enterprise, were charged by the Inspector of Police.

2. The allegation was that four public servants (A-1, A-2, A-3, A-4) including the executive director (A-1) and the deputy general manager A-2 collected with the proprietor (A-5) of the firm, his father (A-6), and his brother (A-7) to confer and unfair and undue advantage and cheat the centrally owned public sector undertaking (PSU).

3. During the trial the 5th and 6thaccused passes away, while other were continued with the guilty tag.

4. After that special court convict the first accused in many sections of IPC along withPrevention of Corruption Act, 1988, but the two other accused only convicted under IPC.

5. Number of arguments continued between parties about section 197 of crpc is applicable or not. Sanction for prosecution is necessary in case of discharge of his official duty is applicable or not applicable.

6. After a lot of contentions stated that if once it clear that act is lack of bona-fide and done in pursuance of conspiracy, makes the case comes within the parameter of section 197 of CRPC.

Issue:-

The main issue is here Section 197 of CRPC is applicable in case of cheating?

Ratio:-

The offence of cheating not required previous sanction contention rejected by bench through a case law.

·       In this case the investigating agency ought to have taken prior sanction under the Prevention of Corruption act because of its own parameters.

Held:-

“The court finally concluded” the prosecution should obtained consent before charging the first accused with many sections of IPC as stated in section 197 of CRPC.