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2023 August 2023 Latest Legal

Bank official is not entitled to protection of Sec.197 Cr PC

August 10, 2023 legaldeli

Judgment dated 8.8.2023 of the Supreme Court of India

Protection of Section 197 of Cr PC is not available to public servant of SBI

On 30.10.2013, the CBI had registered FIR for offences punishable under Section 120-B read with Section 420 and 471 of the Indian Penal Code and Section 13(2) read with Section 13(1) of the Prevention of Corruption Act, 1988, against the accused including appellant – original accused no.2 who was serving as Assistant General Manager, SBI, for conspiracy with other co-accused to cheat the Bank by sanctioning corporate loan of Rs.22.50 crores in favour of accused no.1 M/s. Sven Genetech Limited.

Charge-sheet was filed on 30.12.2014 against six persons including the appellant.

On 11.4.2015, the SBI reviewed its earlier decision and granted sanction under PC Act to prosecute the appellant.

The appellant challenged the legality of the said order granting sanction.

By the order dated 30.10.2018, the High Court allowed the petition and quashed the order of granting sanction to prosecute under PC Act. The intra-court appeal of the CBI was dismissed on 15.7.2019. The said orders became final.

Thereafter, the appellant filed application under Section 239 of the Code of Criminal Procedure for discharge.

On 30.08.2019, the Special Court discharged the appellant from prosecution under the PC Act for want of sanction but declined to discharge from prosecution under the IPC.

The appellant challenged the said order. By the order dated 20.6.2022, the High Court rejected the same. Hence, the appellant filed appeal in the Supreme Court.

HELD that protection of Section 197 of Cr PC is available only to such public servants appointed by the Central or the State Government and not to every public servant. The appellant is deemed to be public servant for PC Act but not for IPC. The contention that since sanction under PC Act was declined, the appellant cannot be prosecuted for IPC offences was negatived. The offences under IPC and PC Act are different and distinct. However, in para 60 of the judgment, the Supreme Court pondered over number of questions and observed that they require consideration and decision sooner or later.

Criminal Appeal No.2339 of 2023 (A. Sreenivasa Reddy Vs. Rakesh Sharma & another).

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