LexP. DHARAMARAJ versus SHANMUGAM & ORS.
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A B C D E F G H 972 SUPREME COURT REPORTS [2022] 9 S.C.R. [2022] 9 S.C.R. 972 972 P. DHARAMARAJ v. SHANMUGAM & ORS. (Criminal Appeal No. 1514 of 2022) SEPTEMBER 08, 2022 [S.ABDUL NAZEER AND V. RAMASUBRAMANIAN, JJ.] Code of Criminal Procedure, 1973: ss.320, 482 – Compounding of Offence – Inherent powers of High Court – Exercise of, permissibility – As per s.320(9), no offence can be compounded except as provided in the said section – Compounding of offences not so covered is not permissible – Non-Compoundable offences are well within the jurisdiction of the High Court u/s.482 of the Code and Art. 226 of the Constitution and can be quashed on the basis of settlement but the court has to go slow while exercising such jurisdiction when the offence has impact not only on the parties inter se but on others also. Prevention of Corruption Act, 1988: Corruption by a public servant is an offence against the State and the society at large – The Court cannot deal with cases involving abuse of official position and adoption of corrupt practices, like suits for specific performance, where the refund of the money paid may also satisfy the agreement – Such corrupt practices by public servant undoubtedly attract the relevant provisions of PC Act. Public Employment: Corruption in Public Employment – Locus Standi in criminal proceedings, discussed. Allowing the appeals, the Court HELD: 1. It is clear from the counter affidavit of the Investigation Officer filed in a connected writ petition, that persons who claim to have paid money, but did not receive orders of appointment, were not the only victims. Persons who were more meritorious, but who did not get selected, on account of being edged out by candidates who paid money and got selected, are also victims of the alleged corrupt practices, if those allegations are eventually proved. The fact that candidates, who are selected and appointed to posts in the Government/public corporations A B C D E F G H 973 by adopting corrupt practices, are eventually called upon to render public service. The quality of public service rendered by such persons will be inversely proportionate to the corrupt practices adopted by them. Therefore, the public, who are recipients of these services, also become victims, though indirectly, because the consequences of such appointments get reflected sooner or later in the work performed by the appointees. Hence, to say that the appellants have no locus standi, is to deny the existence of what is obvious. [Para 16, 18][985-G-H; 986-A, D-F] Janata Dal v. H.S Chowdhary and Others (1991) 3 SCC 756 : [1991] 3 SCR 752 – held inapplicable. P.S.R. Sadhanantham v. Arunachalam and Another (1980) 3 SCC 141 : [1980] 2 SCR 873; Lalita Kumari v. Government of Uttar Pradeshand Others (2014) 2 SCC 1 : [2014] 4 SCR 562 – referred to. 2. It is clear that the final report implicated the accused for offences under Sections 406, 409, 420 and 506(1) IPC. None of these offences except the one under Section 506 IPC is compoundable under sub-Section (1) of Section 320, Cr.P.C. The offences under Sections 406 and 420 are compoundable under sub-Section (2) of Section 320. Sub-section (9) of Section 320 makes it clear that no offence shall be compounded except as provided by the Section. Therefore, there was no way the offence under Section 409 IPC, included in the final report, could have been compounded. As a matter of fact, the High Court has recognised in the penultimate paragraph of the impugned order that the final report includes offences which are not compoundable. [Para 31, 32][993-C-E] Gian Singh v. State of Punjab and another (2012) 10 SCC 303 : [2012] 8 SCR 753; State of Maharashtra through Central Bureau of Investigation v. Vikram Anantrai Doshi and Others (2014) 15 SCC 29 : [2014] 10 SCR 506 – relied on. 3. The Court has to go slow even while exercising jurisdiction under Section 482 Cr.PC or Article 226 of the Constitution in the matter of quashing of criminal proceedings on the basis of a settlement reached between the parties, when P. DHARAMARAJ v. SHANMUGAM & ORS. A B C D E F G H 974 SUPREME COURT REPORTS [2022] 9 S.C.R. the offences are capable of having an impact not merely on the complainant and the accused but also on others. As seen from the final report filed in the instant case and the counter affidavit filed by the I.O., persons who have adopted corrupt practices to secure employment in the Transport Corporation fall under two categories namely, (i) those who pa
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