Section 197 CrPc: Employees of Public Sector Corporations Are not entitled to Protection of Sanction as ‘Public Servant’: Supreme Court

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According to section 197 of the Criminal procedure court, 1973:’When any person who is or was a Judge or Magistrate or a public servant not removable from his office save by or with the sanction of the Government is accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his official duty, no Court shall take cognizance of such offence.’[1]

In the case of BSNL vs. Pramod V. Sawant which came to the Supreme Court for officers seeking protection under section 197 of CrPc ,it was held that were not liable for protection even though they are covered in the definition of ‘State’ under article 12 of the Indian Constitution.

HISTORY OF THE CASE (BSNL vs. PRAMOD V. SAWANT)

The history of this case started back to 2003 when a criminal complained was launched against BSNL for engaging “unregistered Security Guards” which violated an agreement, BSNL had with Security Guards Board (SGB) which is a department under the Ministry of Labor of Maharashtra Government.

To this appeal, the trial court ordered framing of charges against 2 officers  of BSNL, who belonged to ITS (Indian Telecommunication service) to which BSNL filed an counter appeal in the High Court Of Maharashtra.

The BSNL officers stated that they were protected under Article 197 of CrPc as they were officers belonging to ITS and “discharging public duty in pursuance of the policy of the central government,”

They also raised the contention that they were appointed by the President of India to ITS so they can be removed only by the President only.

The High Court dismissing their appeal held that “the protection of sanction under section 197 of CrPc was not for officers of government companies or public undertakings even if it fell within the definition of ‘State’ under article 12 of the Indian Constitution” and they also held that they were latter taken by BSNL so they do not come under the cover of Section 197 of CrPc[2].

On 19th August, the apex court comprising a bench of Justice Navin Sinha and Justice AS Bopanna dismissed the appeal made by Bharat Sanchar Nigam Ltd (BSNL) against the High Court’s order which relied upon Mohd. Hadi Raja vs. State of Bihar and another, held that protection of sanction under section 197 of Criminal Procedure Code was not for the officers of Public Sector Undertaking (PSU) even if they fall under the definition of ‘State’ given in Section 12 of the Indian Constitution. Officer was necessary to prosecute a servant of the Government for his criminal discharged during his duty.

On Monday, the Supreme Court held that PSUs are not entitled to protection automatically for being a ‘Public Servant’. It also overruled section 197 which states that prior sanction from a competent.

BY:

SAMAIRA NAKRA

STUDENT REPORTER,INBA


[1] https://indiankanoon.org/doc/12704/

[2] https://www.business-standard.com/article/current-affairs/no-protection-to-psu-employees-from-criminal-persecution-rules-sc-119081901132_1.html