S.S. DHANOA versus MUNICIPAL CORPORATION, DELHI & ORS.

Citation: [1981] 3 S.C.R. 864 · Decided: 08-05-1981 · Supreme Court of India · Bench: O. CHINNAPPA REDDY · Disposal: Dismissed

Cited by 7 judgment(s) · cites 2 · see the full citation network in Lexace

Judgment (excerpt)

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864 
S.S. DHANOA 
v. 
MUNICIPAL CORPORATION, DELHI & ORS. 
May 8, 1981 
[ 0. CHINNAPPA REDDY, A.P. SEN AND 
BAHARUL ISLAM, JJ. ] 
Public servant-Services of an Officer belonging to the !11dian Administrative 
Service loa11ed to a Cooperative Society-Prior approval of Central Government 
under section 197, Cr. P.C. if required for prosecution under Prevention of Food 
Adulteration Act-Officer, whether a public servant withi11 the meaning of clause 
Twelfth of sec/ton 21, /.P.C. 
Penal Code-Clause Twelfth of section 21-Scope of-Services of a govern-
ment servant loaned to a Cooperative Society-Governme11t servant, if continued to 
be a public servant. 
The services of the appellant, a Member of Indian Administrative Service, 
were placed at the disposal of the Co-operative Store Ltd. for being appointed as 
the General Manager of the Super Bazaars run by the Co-operative Store. 
On a complaint being filed against the appellant for commission of alleged 
offence punishable under section 7 read with s. 16 of the Prevention of Food 
Adulteration ·Act 1954 
before 
the 
Metropolitan 
Magistrate 
Delhi the 
appellant contended that he was a public servant within the meaning of 
clause Twelfth of section 21 of the Penal Code, that the act complained of was 
done by him in the discharge of his duties a~ a public servant and that since, as 
required by section 197, Cr. P.C., previous sanction of the Central Government 
had not been obtained the court was not competent to take cognizance of the 
offence. 
The Magistrate rejected all these contentions. He held that the appellant 
could not be regarded as a public servant within the meaning of clause Twelfth 
of section 21 and that at the relevant time he was neither in the service or pay of 
the Government nor was he employed "in connection with the affairs of the 
Union". 
The High Court, on appeal, upheld the view of the Magistrate. 
Before this Court it was contended that the term "corporation" used in 
clause Twelfth of section 21 is wide enough to include not merely a statutory 
corporation but also a body corporate such as the Cooperative Stores 
S.S. DHANOA V. M.C. DELHI 
865 
established under the State Act like the Bombay Cooperative Societies Act, 1925 
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and that as General Manager he was employed in connection with the affairs of 
the Union by reason of the fact that the Central Government had advanced 
a huge loan to the Society for carrying on commercial activities. 
Dismissing the appeal, 
HELD : The appellant does not answer any of the essential requirements of 
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clause Twelfth of section 21 I.P.C. He was neither an officer in the service or pay 
of the Government nor of a local authority, a corporation established by or under 
an Act or a Government company. (869 DJ 
Mere incorporation of a society under a Central or State Act does not make 
a body a corporation within the meaning of clause Twelfth of section 21. The 
expression "corporation" must, in the context, mean a corporation created by 
the legislature and not a body or society brought into existence by an act of a 
group of individuals. A cooperative society is, therefore, not a corporation 
established by or under an Act of the Central or State legislature. (870 BJ 
Corporation in its widest sense may mean any association of individuals 
entitled to act as an individual. But that ·is not the sense in which it is used in 
clause Twelfth of section 21. There is a well marked distinction between a body 
created by a statute and a body which, after coming into existence, is govered in 
accordance with the provisions of a statute. A corporation established by or 
under an Act of legislature can only mean a body corporate which owes its exis-
tence, and not merely its corporate status to the Act. An association of persons 
constituting themselves into a company under the Companies Act or a society 
under Societies. Registration Act owes its existence not to the Act of legislature 
but to acts of parties though it may owe its status as a body corporate to an 
Act of the legislature. (871 C-G] 
In the instant case the Cooperative Society was a society registered under the 
Bombay Cooperative Societies Act. It is not a body created by a statute but a 
body created by an act of a group of individuals in accordance with the provi-
sions of the statute. [872 Fl 
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Nor did the fact that the Central Government had advanced a huge Joan to 
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the Society and held major shares in the 

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