P K PRADHAN Vs. STATE OF SIKKIM

JUDGEMENT

(1.) In this appeal by Special Leave, order passed by Sikkim High Court, in Criminal Revision Application dismissing the same after holding that no sanction under Section 197 of the Code of Criminal Procedure, 1974 (hereinafter referred to as the "Code") is required for prosecution of the appellant and thereby upholding order passed by the Special Judge refusing to drop the prosecution in the absence of sanction under Section 197 of the Code, has been impugned.

(2.) A First Information Report was lodged for prosecution of Shri Nar Bahadur Bhandari, the then Chief Minister of Sikkim, and the appellant who was the then Secretary of Rural Development Department, Government of Sikkim, besides certain contractors under Section 120-B of the Indian Penal Code read with Section 5(2) read with Section 5(1)(d) of the Prevention of Corruption Act, 1947 (hereinafter referred to as the "1947 Act") which correspond to Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as the "1988 Act") and the prosecution case, in short, was that during the year 1983-84, the State Cabinet of Sikkim decided to implement 36 Rural Water Supply Schemes in the State of Sikkim under minimum needs programme for a total cost of Rs. 1,62,31,630/- and while approving the above proposal the Cabinet specifically decided that the work worth more than Rs. 1,00,000/- shall be put to open tender while works below Rs. 1,00,000/- shall be executed through Panchayat nominees. The approval of the State Cabinet was communicated to the Rural Development Department for necessary follow up action for implementation of these schemes. In order to implement 19 of the schemes, the Department issued tender notice on 19-12-1983 inviting sealed tenders from enlisted contractors having resources and experience in such government works. In response to this notice various tenders were received by the Department and the same were opened on 18th January, 1984 by a tender committee. Necessary action for acceptance/rejection of tender then followed in respective file. It was alleged that when the matter was thus being processed, Shri Nar Bhadur Bhandari, the then Chief Minister of Sikkim, Shri P.K. Pradhan, the then Secretary, Rural Development Department, Government of Sikkim who is the appellant in this appeal along with fifteen contractors, named in the First Information Report, entered into a criminal conspiracy with the object of securing contract works in favour of the said contractors by corrupt or illegal means or by otherwise abusing the position of the then Chief Minister and the appellant as public servant and got the works awarded in favour of contractors aforesaid at low rates thereby causing pecuniary advantage and corresponding loss to the State of Sikkim, by various commissions and omissions.

(3.) After registering the case, the matter was duly investigated and charge-sheet was submitted against the appellant and the aforesaid accused who was the then Chief Minister of Sikkim under Section 5(2) read with Section 5(1)(d) of the 1947 Act corresponding to Section 13(2) read with Section 13(1)(d) of the 1988 Act. Charge-sheet was also submitted against the aforesaid two official accused persons besides fifteen contractors referred to above for their prosecution under Section 120-B of the Indian Penal Code read with Section 5(2) read with Section 5(1)(d) of the 1947 Act corresponding to Section 13(2) read with Section 13(1)(d) of the 1998 Act. It may be stated that before cognizance was taken upon the charge-sheet, the then Chief Minister Shri Nar Bahadur Bhandari ceased to continue as such and the appellant ceased to be public servant. By order dated 14th September, 1994, the Special Judge took cognizance and summoned all of the aforesaid accused persons including the appellant. On behalf of the appellant, who was Secretary, Department of Rural Development, Government of Sikkim at the time of commission of the alleged offence, a preliminary objection was raised before the Special Judge to the effect that his prosecution under Section 120-B of the Indian Penal Code read with Section 5(2) and 5(1)(d) of the 1947 Act was not warranted as he being a public servant at the relevant time, sanction was required under Section 197 of the Code and the same having not been obtained, the prosecution for these offences was not fit to continue. Similar objection was taken on behalf of another accused-Shri Nar Bahadur Bhandari, the then Chief Minister of Sikkim. The Special Judge by order dated 17th November, 1998 rejected the preliminary objection and held that no sanction was required. Challenging the aforesaid order, the appellant and the aforesaid Shri Nar Bahadur Bhandari moved Sikkim High Court by filing separate revision applications which having been dismissed by the impugned order holding that no sanction under Section 197 of the Code was required, the present appeal by Special Leave.