The Supreme Court in the case observed and has held that the Special Court under the Prevention of Corruption Act 1988, PC Act can be proceeded against an accused for offences as stated under the Indian Penal Code 1860 even if sanction for prosecution has not been granted in respect of PC Act offences as per Section 19 of the said Act.
In the present case, the appellant, who being the bank manager, was facing trial for offences punishable under Section 120-B reading with Section 420, Section 468 and Section 471 of the Indian Penal Code, 1860 and Section 13(2) reading with Section 13(1) of the PC Act, 1988 in respect of allegations of a loan scam.
The Special Court in the case observed and has discharged the appellant for the offences under the PC Act for want of sanction under Section 19 PC Act. Thus, the Special Court decided to proceed with the trial for the IPC offences observing that sanction under Section 197 Code of Criminal Procedure was not applicable for the bank employee. After, the decision of Special Court was approved by the High Court, thus, the appellant approached the Supreme Court.
It has also been contended by the appellant that it is not permissible for the Special Court to proceed against him for the offences punishable under the Indian Penal Code, 1860 as the sanction under Section 19 of the PC Act was declined.
The arguments were rejected by the Supreme Court on the ground that the sanction under Section 197 of the Code of Criminal Procedure for IPC offences and sanction under Section 19 of the PC Act operate on different levels.
Further, the court in the case observed and has explained that the sanction contemplated under section 197 of the Code of Criminal Procedure concerns a public servant who is being accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his official duty.
The court explainend that the offences contemplated in the PC Act, 1988 are those which cannot be treated as acts e ither directly or even purportedly done in the discharge of his official duties.
The court also referred to the case Kalicharan Mahapatra v. State of Orissa and the Lalu Prasad alias Lalu Prasad Yadav v. State of Bihar.
The bench comprising of Justice BR Gavai and Justice JB Pardiwala was hearing the present matter.
In the present case, the court discharged the appellant from the offences punishable under the PC Act, 1988 yet for the IPC offences, he can be proceeded further in accordance with the law.