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Supreme Court of India

STATE THROUGH CBL/ACB, HYDERABAD A.P.versusDHARMANA PRASED RAO

Citation
2016 INSC 343
Decided
26 April 2016
Disposal
Appeal(s) allowed

Holding

The trial court’s order taking cognizance was not a review; the earlier direction to obtain sanction was not a final order, so Section 362 CrPC does not bar the later cognizance.

Summary

The State (CBI) filed a charge‑sheet against fourteen accused, including the respondent, under the Prevention of Corruption Act, 1988 and several provisions of the Indian Penal Code. The Special Court initially deferred taking cognizance of the respondent, directing the investigating officer to obtain a sanction order under Section 19 of the PC Act. After the CBI informed the court that no sanction was required, the trial court took cognizance of the offences under the PC Act. The respondent challenged this order in a revision petition, contending that the later taking of cognizance amounted to a prohibited review under Section 362 of the CrPC and that a sanction was mandatory. The High Court set aside the trial‑court order, holding it to be a review. The Supreme Court held that the earlier direction to obtain sanction was not a final order, so the later taking of cognizance was not a review barred by Section 362, and remitted the matter to the High Court to consider the sanction issue. The appeal was allowed.

Issues considered

  • Whether the trial court’s later order taking cognizance of the offence, after initially deferring on the ground of lack of sanction, amounts to a review prohibited by Section 362 of the Code of Criminal Procedure.
  • Whether a prior sanction under Section 19 of the Prevention of Corruption Act, 1988 is a prerequisite for the court to take cognizance of the offence.

Legislation cited

Subjects

cognizancereviewSection 362 CrPCPrevention of Corruption Actsanction requirementspecial courtcriminal revision

Judgment

                        [2016] 2 S.C.R. 591



       STATE THROUGH CBl/ACB, HYDERABAD A.P.                           A
                                v.
                  DHARMANA PRASED RAO
                 (Criminal Appeal No. 398of2016)
                          APRIL 26, 2016                               B

            [A.K. SIKRI AND R.K. AGRAWAL, JJ.)
      Code of Criminal Procedure, 1973 - s. 362 - Prosecution of
14 accused including respondent-accused before Special Court -
ulss. 13(2) r!w s. 13(J){C){D) of Prevention of Corruption Act (PC
Act) - Initially the trial court did not take cognizance of the
                                                                       c
respondent-accused and directed the Investigating Officer to file
sanction orders uls. 19 of PC Act - Later, when the Court was
informed that no sanction was required, it took cognizance of the
offences under PC Act against the respondent-accused - In revision
High Court set aside the order of trial court on the ground that       D
taking of cognizance at later stage amounted to review - On appeal,
held: The order of trial court taking cognizance would not amount
to review - The initial order whereby direction was issued to file
sanction order, cannot be construed as final order - Matter remitted
to High Court - Prevention of Corruption Act, 1988 - ss. 13(2) r!w
                                                                       E
s. 13(1){C){D).
    Allowing the appeal and remitting the matter to High Court,
the Court
      HELD: Section 362 Cr.P.C. debars the Court from altering
or reviewing the judgment only in those cases when it has signed       F
its judgment or when it bas passed final order disposing of a case.
In the instant case, the Trial Court on the earlier occasion
had simply deferred taking cognizance under the impression
that the sanction u/s. 19 of the PC Act is required. There was
no final order passed disposing of the case inasmuch as had
the sanction been brought, (cognizance would have been taken           G
in any case), the Trial Court is authorised to take cognizance.
The Trial Court was not reviewing any order. The order dated
13.09.2012 could not be r,onstrued as final order, more so,
when there was no final determination of the issue regarding
                                                                       H
                                591
592             SUPREME COURT REPORTS                            (2016] 2 S.C.R.


A     requirement of sanction for prosecution against the respondent
      herein. [ Para 6) [593-G-H; 594-DJ
            CRIMINALAPPELLATE JURISDICTION: Criminal Appeal No .
      . 398of2016.
           From the Judgment and Order dated 29.04.2013 of the High Court
B     of Andhra Pradesh at Hyderabad in Crl. Revision Case No. 580 of2013.
           Ranjit Kumar, SG, Amol Chilate, Zoheb Hossain, B. V. Balaram
      Das for the Appellant.
           Ajay Burman, Alok Kumar, Ms. Somya Yadava, Karan Burman,
c     Balaji Srinivasan forthe Respondent.
           The Judgment of the Court was delivered by
           A.K. SIKRI, J. I. Leave granted.
            2. This appeal is filed by the State through CBl,ACB, Hyderabad
D     questioning the validity of the order dated 29.04.2013 passed by the
      High Court in Criminal Revision Petition which was filed by the respondent
      herein under Sections 397 and 40 I of the Code of Criminal
      Procedure, 1973 (herein referred to as "the Code"). The said revision
      petition was filed by the respondent challenging the order dated 21.01.2013
      passed by the Court of Principal Sessions Judge for CBI cases,
 E    Hyderabad by which cognizance of the offence under Section 13 of the
      Prevention of Corruption Act (hereinafter referred to as "the PC Act")
      was taken against the respondent {A-5 in the Trial Court).
            3. Without stating the prosecution case in detail, suffice it to mention
      that the appellant/CBI has filed charge sheet in the Special Court against
 F    14 accused persons including the respondent herein (A-5) under Section
      13(2) read with Section 13( 1)(C)(D)of the PC Act. They were also
      charged for various offences under Sections, 420,409,467,468,4 71 and
      120B etc. of the Indian Penal Code. Accused Nos. 4 and 5 were the
      Ministers. After the filing of the charge sheet, the Special Court passed
      an order dated 13.09.2012 whereby all these accused persons, under
 G    the various provisions of the Indian Penal Code, were summoned. Insofar
      as A-4 to A-8, including the respondent herein, are concerned, the Trial
      Court directed the Investigation Officer to file sanction orders
      contemplated under Section 19 of the PC Act without which no
      cognizance can be taken for the said offences against these accused
 H    persons. The appellant, thereafter, filed an application before the Special
        STATE THROUGH CBI/ACB, HYDERABAD A.P. v.                                593
           DHARMANA PRASED RAO [A.K. SIKRI,J.]

  Judge pointing out that no such sanction was required and insofar as A-        A
  4 and A-5 are_ concerned, cognizance against them in respect of offences
  under Section 13 of the PC Act should also be taken. On this application
  the Trial Court passed the order summoning these accused persons
  including the respondent herein taking cognizance of the offences under
  the PC Act as well. This order was challenged by the respondent by
                                                                                 B
  filing the aforesaid criminal revision petition under Sections 397 and 40 I
. of the Code raising issues two folds:
       "( 1) Having refused to take cognizance of the offence under the
       PC Act against the res!Jondent, in the first instance, the Special
       Judge should not have taken cognizance there.after on the
       application filed by the CBI as it amounted to review and the
                                                                                 c
       Special Judge did not have any power;
       (2) In any case, no cognizance to be taken for want of sanction
       which was mandatorily required under Section I 9 of the PC Act."
       4. The High Court has addressed itself the first issue and finding        D
 substance in the contention of the respondent allowed the revision and
 set aside the order of the Trial Court on the ground that it amounted to
 review.
      5. After hearing the counsel for the parties, we are of the view that
 the High Court has erred in taking the aforesaid view. Section 362 of the       E
 Code is the material provision, which reads as under:
        "362. Court not to alter judgment:- Save as otherwise provided by
        this Code or by any other law for the time being in force, no
        Court, when it has signed its judgment or final order disposing of
        a case, shall alter or review the same except to correct a clerical
                                                                                 F
        or arithmetical error."
       6. The aforesaid provision debars the Court from altering or
 reviewing the judgment only in those cases when it has signed its judgment
 or when it has passed final order disposing of a case. In the instant case,
 as mentioned above, the Trial Court on the earlier occasion had simply
                                                                                 G
 deferred taking cognizance under the impression that the sanction under
 Section 1-9 of the PC Act is required. There was no final order passed
 disposing of the case inasmuch as had the sanction been brought,
 (cognizance would have been taken in any case), the Trial Court is
 authorised to take cognizance which is not disputed by the learned counsel
 for the respondent as well. The question whether a sanction is required         H
594             SUPREME COURT REPORTS                           [2016] 2 S.C.R.


A     or not would be a different matter. We may point out here that the Trial
      Court was not oblivious of the aforesaid aspect while taking co~nizance
      of offences under the PC Act against the respondent and others. It
      specifically recorded that it does not amount to reviewing its own decision.
      Vide order dated 13.09.2012 passed by the Trial Court earlier, it had
      merely asked the Investigation Officer to file sanction orders against A4
B
      to AS and deferred the order of cognizance against them. There was no
      decision much less conclusive decision taken by the Court. The Trial
      Court rightly pointed out that it was only in the nature of reminding the
      duty of the Investigation Officer to meet certain requirements for taking
      cognizance of offence under the PC Act. However, when the
c     Investigation Officer brought to its notice, on the subsequent date, that
      no such sanction was required, the Trial Court finding it to be correct
      position in law took cognizance. By this, the Trial Court was not reviewing
      any order. According to us order dated 13 .09.2012 could not be construed
      as final order, more so, when there was no final determination of the
      issue regarding requirement of sanction for prosecution against the
D
      respondent herein.
           7. The aforesaid view of the High Court is, therefore, clearly
      erroneous and the impugned order is hereby set aside. Further as the
      High Court has not gone into the other issue viz. whether there was a
      necessity of having prior sanction under Section 19 of the PC Act or not,
 E    we, thus, remand the case back to the High Court to consider the case
      afresh.
           8. The appeal is, accordingly, allowed.
      Kalpanan K. Tripathy                                         Appeal allowed.


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