P.L. TATWAL versus STATE OF MADHYA PRADESH
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A B c (2014] 2 S.C.R. 1116 P.L. TATWAL v. STATE OF MADHYA PRADESH (Criminal Appeal No. 456 of 2014) FEBRUARY 19, 2014 [SUDHANSU JYOTI MUKHOPADHAYA AND KURIAN JOSEPH, JJ.] PREVENTION OF CORRUPTION ACT, 1988: s. 19 (1) (c) rlw 13 (1) (d) and 13 (2) - Previous sanction -- Competent Authority - Assistant Engineer appointed when Corporation was ruled by Administrator - Sanction accorded by Standing Committee of Corporation - Held: Administrator D is only an ad hoc arrangement made by Government u/s 424 of Municipal Corporation Act when an elected committee is superseded or dissolved -- Standing Committee being appointing authority of appellant, was the competent aut/1ority to accord sanction - Madhya Pradesh Municipal Corporation E Act, 1956 - SS. 58 and 424. s. 19 - Previous sanction for prosecution -Application of mind by competent authority - Held: The authority has to be apprised of all the relevant materials, and on such materials, it has to take a conscious decision as to whether the facts F would reveal the commission of an offence -- The decision making on relevant materials should be reflected in the order and if not, it should be capable of proof before the court -- In the instant case, though appellant made a specific objection before Special Judge, the order does not indicate any inquiry G by the court in this regard -- Orders passed by High Court and trial court areΒ· set aside and matter is remitted to trial court to record a finding as to valid sanction - It may also consider the effect of quashing of the prosecution as regards superior officers and there being no sanction for prosecution of others. H 1116 P.L. TATWAL v. STATE OF MADHYA PRADESH 1117 The appellant, an Assistant Engineer, along with A others, was sought to be prosecuted for offences punishable u/ss 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988 on the allegations of irregularities in the award of the contract and construction of administrative building for the Corporation. At the B relevant time, the Corporation was ruled by an Administrator. However, the sanction was granted by the Standing Committee of the Corporation. In the instant appeal, it was mainly contended for the appellant that since he was appointed in service by the C Administrator, sanction for prosecution could be given only by the Administrator and in his absence by the State Government; that there was no proper and valid sanction by the competent authority; and that since the proceedings for prosecution against his superior officers D had been quashed, proceedings in his case also be quashed as it was not likely in such a situation to have a successful prosecution. Allowing the appeal in part, the Court HELD: 1.1 In view of s. 19 (1) (c) of the Prevention of Corruption Act, 1988, the competent authority to give previous sanction in the case of the appellant is the authority competent to- remove him from service. No doubt the appointing authority is the authority competent E- F to remove him from service. Under s. 58 of the Municipal Corporation Act, 1956, the Standing Committee is the competent authority for appointment of the appellant. The Administrator is only an ad hoc arrangement made by the Government u/s 424 of the Municipal Corporation Act G when an elected committee is superseded or dissolved. It so happened that the appointment of the appellant was at a time when the Municipal Corporation was ruled by the Administrator. It is the Standing Committee which gave the sanction by its order dated 27 .08.1996. H 1118 SUPREME COURT REPORTS [2014] 2 S.C.R. A Therefore, the trial court and the High Court cannot be faulted in taking the view that there was an order of sanction for prosecution from the competent authority. [para 7-9] [1122-C-D; 1123-A-B, D] 8 1.2 The grant of sanction is only an administrative function. It is intended to protect public servants against frivolous and vexatious litigation. It also ensures that a dishonest officer is brought before law and is tried in accordance with law. Thus, it is a serious exercise of C power by the competent authority. The authority has to be apprised of all the relevant materials, and on such materials, it has to take a conscious decision as to whether the facts would reveal the commission of an offence under the relevant provisions. The decision making on relevant materials should be reflected in the D order and
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