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AMICUS AI
Citation Codes
Neutral Citations
1966 INSC 148
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • s. 127(1) of the Madras Act
  • s. 270 of the Government of India Act, 1935
  • S. 106 of the Madras Act
  • s. 197(1) of the Criminal Procedure Code
  • Section 197, Criminal Procedure Code
  • Section 197 of the Criminal Procedure Code
  • Section 409, Indian Penal Code
  • s. 409, Indian Penal Code
  • Section 106 of the Madras Act
  • s. 197(1) of the Code of Criminal Procedure
  • Section 197 of the Code of Criminal Procedure
  • Section 127 of the Madras Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • s. 197(i) of the Criminal Procedure Code
  • Section 106 of the Madras Village 203 Panchayats Act (Madras Act X of 1950)
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Cites
Cited by
Citation Codes
Neutral Citations
1966 INSC 148
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • s. 127(1) of the Madras Act
  • s. 270 of the Government of India Act, 1935
  • S. 106 of the Madras Act
  • s. 197(1) of the Criminal Procedure Code
  • Section 197, Criminal Procedure Code
  • Section 197 of the Criminal Procedure Code
  • Section 409, Indian Penal Code
  • s. 409, Indian Penal Code
  • Section 106 of the Madras Act
  • s. 197(1) of the Code of Criminal Procedure
  • Section 197 of the Code of Criminal Procedure
  • Section 127 of the Madras Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • s. 197(i) of the Criminal Procedure Code
  • Section 106 of the Madras Village 203 Panchayats Act (Madras Act X of 1950)
Smart Summary

P. Arulswami v. The State of Madras (29 August 1966)

Factual and Procedural Background

The appellant, P. Arulswami, was elected President of the Nerinjipet Panchayat Board on 17 May 1958. Four National Plan Savings Certificates worth Rs 4,000—assets of the Panchayat—were encashed on 11 February 1959, but the proceeds were never entered in the Panchayat’s account books. The prosecution alleged that the appellant himself cashed the certificates and dishonestly failed to account for the money. The appellant contended that he merely endorsed the certificates and handed them to the Deputy Panchayat Officer (P.W. 4) to reinvest.

The Sub-Divisional Magistrate, Erode, acquitted the appellant. On the State’s appeal, the Madras High Court (3 December 1963) accepted the prosecution evidence, convicted him under section 409 of the Indian Penal Code, and sentenced him to rigorous imprisonment (one year in Criminal Appeal No. 380 of 1961 and six months in Criminal Appeal No. 72 of 1962).

Special leave to appeal was granted by the Supreme Court. The principal ground urged was the alleged absence of a valid sanction from the State Government under section 106 of the Madras Village Panchayats Act, 1960.

Legal Issues Presented

  1. Whether prior sanction of the State Government under section 106 of the Madras Village Panchayats Act, 1960 is required before prosecuting a (former) Panchayat President for an offence under section 409 IPC.
  2. If sanction were necessary, whether sanction accorded by the Collector under purported delegated authority would suffice.

Arguments of the Parties

Appellant’s Arguments

  • The prosecution was void because the court took cognisance without the previous sanction of the State Government as mandated by section 106 of the Madras Act.
  • The sanction produced was granted by the Collector; section 127 of the Act does not empower delegation of the Government’s sanctioning authority under section 106, which pertains specifically to the President or members of a Panchayat.

Respondent’s Arguments

The opinion does not contain a detailed account of the respondent’s legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hori Ram Singh v. Emperor (1939 F.C.R. 159) Sanction is required only when the act forming the offence is performed in the discharge of official duty. Used to illustrate that misappropriation under s. 409 occurs after entrustment and lies outside official duty.
Gill v. The King (1948 F.C.R. 19) Test: could the official reasonably claim the act was done “by virtue of his office”? Adopted to show that dishonest acts like bribery or misappropriation are not protected.
Albert West Meads v. The King (75 I.A. 185) Affirmed the Gill interpretation of sanction provisions. Cited as continuing authority.
Phanindra Chandra v. The King (76 I.A. 10) Further approval of the Gill/Hori Ram Singh line. Reinforced the restrictive scope of sanction requirements.
R. W. Mathams v. State of West Bengal [1955] 1 S.C.R. 216 Supreme Court endorsement of the restrictive reading of s. 197 CrPC. Relied on as binding precedent.
Om Prakash Gupta v. State of Uttar Pradesh [1957] S.C.R. 423 Sanction is unnecessary for s. 409 IPC because the offence is not part of official duty. Followed as directly on point.
Satwant Singh v. State of Punjab [1960] 2 S.C.R. 89 Cheating by a public servant falls outside “official duty.” Analogically applied to criminal breach of trust.
Baijnath Gupta & Ors. v. State of Madhya Pradesh [1966] 1 S.C.R. 210 Official status may give opportunity but does not convert a dishonest act into an official one. Utilised to underscore that s. 409 offences do not attract sanction.

Court’s Reasoning and Analysis

The Court noted that section 106 of the Madras Village Panchayats Act mirrors section 197(1) CrPC. Reviewing the line of authority from Hori Ram Singh to Baijnath Gupta, it reaffirmed that sanction is required only when the act complained of is so integrally connected with official duty that it could be defended as having been done “by virtue of” the office.

In an offence under section 409 IPC, the public servant’s official capacity is relevant only to the initial entrustment of property; the subsequent dishonest conversion constitutes the offence and is outside the scope of official duty. Therefore, no sanction under section 106 was necessary. This conclusion made it unnecessary to decide whether the Collector could validly grant sanction under section 127.

Holding and Implications

APPEALS DISMISSED.

The Supreme Court upheld the convictions and sentences imposed by the Madras High Court. The decision clarifies—consistent with prior precedent—that offences of criminal breach of trust by public servants do not attract the protective requirement of prior sanction under either section 106 of the Madras Village Panchayats Act or section 197 CrPC. The ruling strengthens the jurisprudential distinction between acts performed in the discharge of official duty and acts merely facilitated by official position, without creating new doctrine.

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    P. Arulswami v. The State Of Madras

    http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 5

    PETITIONER:

    P. ARULSWAMI

    Vs.

    RESPONDENT:

    THE STATE OF MADRAS

    DATE OF JUDGMENT:

    29/08/1966

    BENCH:

    RAMASWAMI, V.

    BENCH:

    RAMASWAMI, V.

    BHARGAVA, VISHISHTHA

    DAYAL, RAGHUBAR

    CITATION:

    1967 AIR 776 1967 SCR (1) 201

    ACT:

    Madras Village Panchayats Act (Mad. Act X of 1960), s. 106- In language similar to s. 197(1) Cr. P.C.--Sanction of State Government for prosecution for offence under s. 409 I.P.C.-Whether required-Circumstances in which such sanction necessary.

    HEADNOTE:

    The appellant, who was the President of a Panchayat Board, was charged with an offence under s. 409, I.P.C. for not bringing to 'account in the book of the Panchayat Board a sum of Rs. 4,000, belonging to the Board. The trial court was not satisfied that the prosecution had proved the charge and therefore acquitted the appellant but, on appeal, the High Court accepted the prosecution evidence and convicted him.

    It was contended on behalf of the appellant that the prosecution against him was not maintainable for want of sanction by the State Government tinder s. 106 of the Madras Village Parnchayats Act (Mad. Act X of 1960); but the High Court rejected this contention.

    On appeal to this Court.

    HELD : Sanction of the State Government was not necessary for the prosecution of the appellant under s. 409, Indian Penal Code.

    As in the case of s. 197(1) of the Criminal Procedure Code, which is in similar language to s. 106 of the Madras Act, it is not every offence committed by a public servant that requires sanction for prosecution; nor even every act done by him while he is actually engaged in the performance of his official duties; but if the act complained of is directly concerned with his official duties so that, if questioned, it could be claimed to have been done by virtue of the office, then sanction Would be necessary. It is the quality of the act that is important and if it falls within the scope and range of his official duties the protection contemplated by s. 197 of the Criminal Procedure Code will be attracted. An offence may be entirely unconnected with the official duty as such or it may be committed within the scope of the official duty. Where it is unconnected with the official duty there can be no protection. It is only

    1

    when it is either within the scope of the official duty or in excess of it that the protection is claimable. [205 D-F] Case law reviewed.

    JUDGMENT:

    CRIMINAL APPELLATE JURISDICTION : Criminal Appeals Nos. 130 & 131 of 1964. Appeals by special leave from the Judgment and order dated December 3, 1963 of the Madras High Court in Criminal Appeals Nos. 380 of 1961 and 72 of 1962 respectively. Sup.C.I./66-14

    202

    R. Ganapathy Iyer, for the appellant (in both the appeals).

    A. V. Rangam, for the respondent (in both the appeals). The Judgment of the Court was delivered by Ramaswami, J.

    Criminal Appeal No. 130 of 1964

    This appeal is brought, by special leave, from the judgment of the Madras High Court dated December 3, 1963 in Criminal Appeal No. 380 of 1961 by which the appellant was convicted under s. 409, Indian Penal Code and sentenced to rigorous imprisonment for one year.

    The appellant was elected President of the Nerinjipet Panchayat Board on May 17, 1958. At that time he was a duly elected member of the Board. It appears that a sum of Rs. 4,000 of the Board had been invested in four National Plan Savings Certificates in the Bhavani Post Office. It was alleged that the appellant cashed them on February 11, 1959 and did not bring the amount in the account books of the Panchayat Board. The defence of the appellant was that he signed the certificates and handed them over to P.W. 4, the Deputy Panchayat Officer of the block within which the village was located. This was done by the appellant because P.W. 4 approached him and asked him that the Board should subscribe through him for small savings certificates for Rs. 7,000 just as the Panchayat had subscribed Rs. 7,000 through Tass liar representing the Revenue Department. For that purpose P.W. 4 got Rs. 500 in cash on December 2, 1958 and a cheque for Rs. 2,500 on February 9, 1959. It was the -case of the appellant that P.W. 4 represented that along with this SUM of Rs. 3,000 he would cash the National Plan Savings Certificates of the total value of Rs. 4,000 and purchase small savings ,certificates for Rs. 7,000 that being his quota from the Narinjipet Panchayat. To enable P.W. 4 to make the purchase, the appellant endorsed the National Plan Savings Certificates and handed them over to P.W. 4. The Sub-Divisional Magistrate, Erode was not satisfied that the prosecution had proved the charge and therefore acquitted the appellant, but on appeal the High Court accepted the prosecution evidence that it was the appellant who ,cashed the certificates at the Post Office and not P.W. 4 and accordingly found the appellant guilty of the offence.

    It was argued on behalf of the appellant in the High Court that prosecution was not maintainable for want of sanction by the State Government under s. 106 of the Madras Village

    2 03

    Panchayats Act (Madras Act X of 1950) (hereinafter called the 'Madras Act'). That section reads as follows :

    "106. When the president, executive authority or any member, is accused of any offence alleged to have been committed by him while

    2

    acting or purporting to act in the discharge of his official duty, no Court shall take cognizance of such offence except with the previous sanction of the Government."

    Sanction for the prosecution was, however, given in this case by the Collector and not by the Government under powers purported to have been delegated to him under s. 127 of the Madras Act which provides :

    "127. (1) The Government may, by notification, authorize any authority, officer or person to exercise in any local area, in regard to any panchayat or any class of panchayats or all pancbayats in that area, any of the powers vested in them by this Act except the power to make rules; and may in like manner withdraw such authority.

    The High Court held that no sanction of the Government was necessary as the appellant had ceased to hold the office of President when the prosecution was launched and further that the sanction of the Collector was sufficient in law. The question of law involved in this appeal is whether the sanction of the Government under S. 106 of the Madras Act is necessary for the prosecution of the appellant for the offence under s. 409, Indian Penal Code.

    On behalf of the appellant it was contended that the sanction granted by the Collector was not valid in law and sanction should have been given under s. 106 of the Madras Act by the State Government. It was submitted that s. 127(1) of the Madras Act has not authorised the Government to delegate the power for granting sanction under S. 106, to the Collector, and that what was delegated was the power of the State Government in respect of any panchayat or any class of panchayats or all panchayats in any local area, but the power under S. 106 that could be exercised was only a power in regard to the President or any member of the panchayat. It was therefore submitted that the Government did not delegate its powers under S. 106 of the Madras Act by virtue of the authority conferred under S. 127(1). It is not necessary for us to express any concluded opinion on the argument put forward by the appellant, for we consider that no sanction of the Government under s. 106 of the Madras Act is necessary for the prosecution of the appellant on the charge under s. 409, Indian Penal Code, and the conviction of the appellant on that charge is not invalid on this account.

    204

    Hori Rain Singh v. Emperor(1) was a decision of the Federal Court on the necessity for sanction under s. 270 of the Government of India Act, 1935, which is similar to s. 197(1) of the Code of Criminal Procedure and S. 106 of the Madras Act. The facts in that case were that a Sub-Assistant Surgeon was charged under s. 409 with having dishonestly removed certain medicines from a hospital which was under his charge, to his own residence, and under s. 477-A, with having failed to enter them in the stock book. The sanction of the Government had not been obtained for the prosecution under s. 270 of the Government of India Act. The question for decision in that case was whether such sanction was necessary. It was held by the Federal Court that the charge under s. 477-A required sanction, as 'the official capacity is involved in the very act complained of as amounting to a crime'; but that no sanction was required for a charge under s. 409, because 'the official capacity is material only in connection with the entrustment and does not necessarily enter into the later act of misappropriation

    3

    or conversion, which is the act complained of. In Gill v. The King(2) the question arose directly with reference to s. 197(i) of the Criminal Procedure Code. In that case the accused was charged under S. 161 with taking bribes, and under s. 120-B with conspiracy. On the question whether sanction was necessary under s. 197(1) it was held by the Judicial -Committee that there was no difference in scope between that sanction and section 270 of the Government of India Act, 1935, and approving the statement of the law by Varadachariar, J. in Hori Ram Singh v. Emperor(1) Lord Simonds observed in the course of his judgment at page 40 of the Report

    "In the consideration of s. 197 much assistance is to be derived from the judgment of the Federal Court in Hori Ram Singh v. The Crown (1939) F.C.R. 159, and in particular from the careful analysis of previous authorities which is to be found in the opinion of Varadachariar, J. Their Lordships, while admitting the cogency of the argument that in the circumstances prevailing in India a large measure of protection from harassing proceedings may be necessary for public officials, cannot accede to the view that the relevant words have the scope that has in some cases been given to them. A public servant can only be said to act or to purport to act in the discharge of his official duty, if his act is such as to lie within the scope of his official duty. Thus

    a judge neither acts nor purports to act as a judge in receiving a bribe, though the judgment which he delivers may be such an act; nor does a Government medical officer act or purport to act as a public servant in picking the pocket of a patient whom he is examining,

    (1) [1939] F. C. R. 159. (2) [1948] F.

    C. R. 19.

    20 5

    though the examination itself may be such an act. The test may well be whether the public servant, if challenged, can reasonably claim that, what he does, he does in virtue of his office. Applying such a test to the present case, it seems clear that Gill could not justify the acts in respect of which he was charged as acts done by him by virtue of the office that he held. Without further examination of the authorities their Lordships, finding themselves in general agreement with the opinion of the Federal Court in the case cited, think it sufficient to say that in their opinion no sanction under s. 197 of the Code of Criminal Procedure was needed."

    The view expressed by the Judicial Committee in Gill v. The King(1) was followed by the Judicial Committee in the later cases; Albert West Meads v. The King(2) and Phanindra Chandra v. The King(3) and has been approved by this Court in R. W. Mathams v. State of west Bengal(4). It is not therefore every offence committed by a public servant that requires sanction for prosecution under s. 197(1) of the Criminal Procedure Code; nor even every act done by him while he is actually engaged in the performance of his official duties; but if the act complained of is directly

    4

    concerned with his official duties so that, if questioned, it could be claimed to have been done by virtue of the office, then sanction would be necessary. It is the quality of the act that is important and if it falls within the scope and range of his official duties the protection contemplated by s. 197 of the Criminal Procedure Code will be attracted. An offence may be entirely unconnected with the official duty as such or it may be committed within the scope of the official duty. Where it is unconnected with the official duty there can be no protection. It is only when it is either within the scope of the official duty or in excess of it that the protection is claimable. The same principle has been expressed by this Court in Om Prakash Gupta v. State of U.P.(5) in which it was pointed out that sanction to the prosecution of a public servant under S. 409 of the Indian Penal Code 'is not necessary since the public servant is not acting in his official capacity in committing criminal breach of trust. In a later case--Satwant Singh v. The State of Punjab(6), it was held that if a public servant commits the offence of cheating or abets another so to cheat, the offence committed by him is not one while he is acting or purporting to act in the discharge of his official duty. The same view his been taken by this Court in a later decision-Baijnath Gupta and Ors. v. The State of Madhya Pradesh(7), and it was held that the sanction of the State Government was not necessary for the prosecution of

    (1) [1948] F.C.R. 19. (2) 75 I.A. 185.

    (3) 76 I.A. 10. (4) [1955] 1 S.C.R. 216.

    (5) [1957] S.C.R. 423. (6) [1960] 2 S.C.R. 89.

    (7) [1966] 1 S.C.R. 210.

    20 6

    the appellant under s. 409 of the Indian Penal Code because the act of criminal misappropriation was not committed by the appellant while he was acting or purporting to act in discharge of his official duties and that offence had no direct connection with the duties of the appellant as a public servant, and the official status of the appellant only furnished the appellant with an occasion or an oppor- tunity of committing the offence.

    Section 106 of the Madras Act is similar in language to s. 197 of the Criminal Procedure Code and for the reasons already expressed we are of the opinion that the sanction of the State Government was not necessary for prosecution of the appellant under S. 409, Indian Penal Code. We accordingly reject the argument of learned Counsel for the appellant on this aspect of the case and dismiss this appeal.

    Criminal Appeal No. 131 of 1964

    This appeal is brought, by special leave, from the judgment of the Madras High Court dated December 3, 1963 in Criminal Appeal No. 72 of 1962 convicting the appellant of the offence under s. 409, Indian Penal Code and sentencing him to rigorous imprisonment for 6 months.

    The question of law involved in this appeal is the same as in Criminal Appeal No. 130 of 1964 and for the reasons given in that case we hold that the sanction of the Government is not necessary for prosecution of the appellant under s. 409, Indian Penal Code and the conviction of the appellant on that charge is not defective in law",. This appeal also must be dismissed.

    R.K.P.S. Appeals dismissed.

    207

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    P. Arulswami v. The State Of Madras
    (Aug 29, 1966)