(1.) Between July and November, 1962, that being the period relevant to this appeal, the respondent, Lt. Col. J.S. Khanna, ani Res. Major Lala were staff officers Nos. 1 and 2 respectively attached to the headquarters, Chief Engineer, Tusker Project at Tezpur. As kuch efficers, one of their duties was to ensure supplies of goods, such as motor spare parts, required for military trucks and other vehicles conveying troops, materials etc. to forward areas in Assam and NEFA.
(2.) According to the prosecution, these two officers were responsible for manipulations in placing supply orders with a firm called M/s. Manik Mo or Works, of obtaining supplies even before orders in relation to them were placed, and in some cases, even before issuing quotations enquiries and obtaining in answer to such enquiries quotations as required by the relevant rules in connection with such supplies. The prosecution case further was that they paid exobitant prices for these materials, that the quotations obtained by them were opened, contrary to the rules, without then keeping a second officer present, that at the instance of Manik Motor Works Res. Lala introduced the name of M/s. Auto Stores, a non-existent firm, in the list of approved firms with the object of showing that the quotations of Manik Motor Works were lower than those of other suppliers, and lastly, that the two respondents were guilty of , fabricating certain quotations said to have been given by firms such as the United Motor Works and Darrang Transport Go. The principal charge for which these two officers and five others were said to be liable was that they along with those others entered into a criminal conspiracy with the object of cheating and defrauding the Government of India, and with that end, of fabricating documents and of accepting supplies in breach of the rules governing them.
(3.) The first information report in connection with these alleged offences was lodged on January 18, 1963. It is strange, however, that in that report no mention was made of Res. Khanna, and instead the persons charged therein were res. Lala and one Capt. Inder Mohan Sharma. Khanna's name, however, appeared in the order of the Government of India, Ministry of Home Affairs, dated May 28, 1963 whereby sanction under Section 197(1)(a) of the CrPC and Section 6(1)(a) of the Prevention of Corruption Act, 1947 was issued.