Supreme Court of India
UNION OF INDIA AND ANR.versusASHOK KUMAR MITRA
- Citation
- 1995 INSC 143
- Decided
- 24 February 1995
- Disposal
- Appeal(s) allowed
- Bench
- A S ANAND
Holding
Employees of nationalised banks are public servants under Section 21 IPC, and the delay is not solely attributable to the prosecution, so the prosecution stands.
Summary
The respondent, a Branch Manager of Bank of India, was charged with several offences under the IPC and the Prevention of Corruption Act. He contended that, as an employee of a nationalised bank, he was not a "public servant" within the meaning of Section 21 of the IPC and therefore could not be tried by a Special Court. The Calcutta High Court accepted this argument and quashed the prosecution. On appeal, the Supreme Court held that a nationalised bank is a corporation established by a Central Act and owned and controlled by the Government, making its employees public servants under Section 21 IPC. The Court also rejected the respondent’s claim of delay, observing that he had contributed to the postponement and thus could not invoke the right to a speedy trial. Consequently, the appeal was allowed, the High Court’s order set aside, and the trial ordered to proceed.
Issues considered
- Whether employees of a nationalised bank qualify as "public servants" under Section 21 of the Indian Penal Code for jurisdiction of Special Courts.
- Whether the delay in prosecution warrants quashing of the case on the ground of the right to a speedy trial.
Legislation cited
- Indian Penal Code, 1860s. 21
- Prevention of Corruption Act, 1947s. 5(2) read with 5(1)(c)(d)
Subjects
public servantnationalised bankSpecial Court jurisdictionspeedy trialdelayIPC Section 21Prevention of Corruption Actcorporate law
Judgment
j
UNION OF INDIA AND ANR. A.
v.
ASHOK KUMAR MITRA
FEBRUARY 24, 1995
B
[DR. AS. ANAND AND M.K. MUKHERJEE, JJ.)
Indian Penal Code, 186()-Section 21-Public Servant-Employees of
a nationalised Banlc-Whether 'public servants' Held yes.
The respondent, Branch Manager of Bank of India, was prosecuted C
for offences under sections 120-B, 420, 409, 467, 468, 471 and 477A IPC and
section 5(2) r/ws S(l)(c)(d) of the Prevention of Corruption Act, 1947.
Before charges were framed, the respondent moved a petition for his
discharge before learned Judge of the Special Court stating that he was
not a 'public servant' and therefore could not be tried by the Special Court. D
The application was rejected. The respondent filed revision seeking quash-
ing of the prosecution on the ground of delay in ~he disposal of the case
and also on the ground that not being a 'public servant', he could not be
tried by a Special Court. The High Court rejected the first ground holding
that the delay was not attributable solely to the prosecution. It was however
held that the respondent could not be deemed to be a 'public servant' E
within the meaning of section 21 of IPC and as such could not be tried by
the Special Court. The prosecution was accordingly quashed. Hence these
appeals.
The appeHant urged that a nationalised bank was a 'Corporation' F
and not a 'body corporate' and therefore, the respondent would be squarely
covered by the definition of a 'public servant' as per section 21 (Twelfth)
(b) of the IPC.
Allowing the appeals, this court
G
HELD : 1. A nationalised bank is a corporation which is established
by a Central Act and is owned and controlled by the Central Government.
The employees of corporations which are owned and controlled by the
Central Government and established by a Central Act are 'public
servants'. (372-C] H
369
"'-,
370 SUPREME COURT REPORTS (1995) 2s.c.R.
A R.C. Cooper v. Union of India, (1970) 1 SCC 248; Ashoka Marketing
......_
Ltd. and Anr. v. Punjab National Bank and Ors. etc., (1990) 4 SCC 406 '\
(Constitution Bench) and CBI v. O.P. Dogra and Ors., AIR (1986) SC 312:
relied on.
2. The respondent had himself 'handsomely contributed' to the delay.
B One the ground of delay, not attributable only to the prosecution, the
respondent could not be permitted to take advantage of his own wrong and
take shelter under 'speedy trial' to escape from prosecution. [373-F]
CRIMINAL APPELLATE JURISDICTION Criminal Appeal
C Nos. 311-12 of 1995.
From the Judgment and Order dated 10.03.94 of the Calcutta High
Court in Crl. R. Nos. 1498 and 1531 of 1991.
Venugopal Reddy, Naveen Prakash and P. Parmeswaran for the .
D Appellants.
I
Dr. Shankar Ghosh and Amlan Ghosh for the Respondent.
The Judgment of the Court was delivered by
E DR. ANAND, J. Leave granted.
The only question that we are called upon to consider in these
appeals is whether the employees of a nationalised Bank can be held to be
'public servants' within the meaning of Section 21 of Indian Penal Code
and triable by Special Courts for the offences triable by these courts. The \
>.
F question arises in the following circumstances.
The respondent was the Branch Manager of Bank of India at the
relevant time. A case was registered against him and another person for
offences under sections 120 B, 420, 409, 467, 468, and 477A IPC and
Section 5(2) read with Section 5(1) (c) (d) of the Prevention of Corruption
G Act, 1947. After completion of investigation by the CBI, charge-sheet was
filed in the Court of the Special Judge at Alipur,. Calcutta on 4.12.85.
Cognizance was taken but before charges were framed, the respondent
moved a petition for his discharge before the Special Judge stating that he
is not a 'public servant' and therefore cannot be tried by the Special Court.
H The learned Special judge by his order dated 28.6.91 rejected the applica-
j
U.0.1. v.AKMITRA[DR.ANAND,J.] 371
tion. The respondent thereupon filed a criminal revision in the Calcutta A
High Court seeking quashing of the prosecution launched against him on
the ground (a) delay in the disposal of the case and (b) that not being a
'public servant', he could not be tried by a Special Court.
The High Court rejected the first ground observing that the respon-
dent himself had 'handsomely contributed' to whatever delay had so far B
been occasioned and, therefore, the proceedings eould not be quashed on
the ground of delay, which was not attributable solely to the prosecution.
So far as the second ground is concerned, the High Court agreed with the
'\ submission made on behalf of the respondent and held that the respondent
1 could not be deemed to be a 'public servant' within the meaning of Section C
' 21 of IPC and as such could not be !ried by the Special Court. The High
Court relied upon the judgment in Oriental Bank of Commerce and Ors. v.
Delhi Development Authority, reported in 1982 Crl. Law Journal 2230 in
support of its finding. The prosecution was accordingly quashed. The
Union of India is aggrieved and has come up in appeal by special leave.
D
It is submitted that since the ju(jgment rendered by the Delhi High
Court in Oriental Bank of Commerce case (supra) has been over-ruled by
this Court therefore the judgment under appeal cannot be sustained. It is
urged that a nationalised bank is a 'Corporation' and not a 'body corporate'
as held in Oriental Bank's case (supra) and therefore, the respondent E
would be squarely covered by the definition of a 'public servant' as per
section 21 Twelfth (b) of IPC.
In R.C. Cooper v. Union of India, [1970] 1 SCC 248 this Court with
reference to the nationalised bank constituted under the provisions of the
Banking Companies (Acquisition and Transfer of Undertakings) Or- F
dinance, 1969, hold that the natiOnalised banks are 'Corporations'.
The controversy, whether a nationalised bank is only a body cor-
porate or is a corporation is no longer res-integra. On account of the
nationalisation, the nationalised banks are not only establiShed by a Central G
Act but are also owned and controlled by the Central Government.
A Constitution Bench of this Court in Ashoka Marketing Ltd. and
Anr. v. Punjab National Bank and Ors. Etc., [1990] 4 SCC 406 specifically
considered the question whether a nationalised bank is a 'corporation' or
a ' body corporate' and hold : H
I
372 SUPREME COURT REPORTS [1995] 2 S.C.R.
A "Keeping in view the provisions of the Banks Nationalisation Act
we are of the opinion that the nationalised bank is a corporation
established by a Central Act and it is owned and controlled by the
Central Govemment." (Emphasis ours)
The Constitution Bench expressly over-ruled the judgment of the Delhi
B High Court in the Oriental Bank of Commerce case (supra) and held that
the distinction drawn in that judgment between 'body corporate' and a a
'corporation' in relation a nationalised bank is erroneous and that the view
that a nationalised bank is not a corporation could not be sustained. Thus,
it now rests settled that a nationalised bank is a corporation which is
C established by a Central Act and is owned ·and controlled by the Central
Government. Are the employees of Corporations which are owned and
controlled by the Central Government and are established by a Central
Act, 'Public Servants'?
In State through CBI v. O.P. Dogra & Ors., AIR (1986) SC 312 while
D setting aside the judgment of the High Court of J & K, which had held that
the employees of an Insurance Company were not 'public servants' within
the meaning of Section 21 RPC (corresponding to Section 21 IPC), this
Court opined :
"So far as the Life Insurance Corporation is concerned, there can
E be no second view that the employees of the corporation come
within the definition of the term 'public servant' as given under
Section 21 of RPC. So far as the other respondents are concerned,
admittedly Jupiter Insurance Co. has been merged with the Orien-
tal Fire and General Insurance Co. after nationalisation and the
latter is now a part of the corporation, namely, General Insurance
Corporation of India. By such process, the respondents Dogra and
his associates are in the same position as Anand. Mr. Kapil Sibal,
learned council appearing for Dogra and his associates has stated
before us that t.he finding of the High Court on this score is not
;.G tenable and the respondents must be held to be public servants."
Section 21 IPC provides :
"21. "Public Servant"- The words "public servant" denote a person
falling under any of the descriptions hereinafter following, namely:
H ....................................................................................................
'
,.., ·, \
U.O.L v.AKMITRA[DRANAND,J.] 373
' ; ' . . - ......._._.: ___, --~--~- .......... -
Twelfth-'-Every pe;son- A
(a) in the serVice o; pay of the ~~v~rnment or re~unerated
by
fees or commission for the performance of any public duty by the
Government;
'' '
(b) in the service or pay of a local authority, a corporation estab- B
lished by or under a Central, Provincial or State Act. or a Govern-
ment company_ as ~efmed in Section 617 of the Companies Act,
1956.'
\ ..
On a plain reading of the above promiori, it follows that the view of C
the Calcutta High Court in the impugned judgment holding that the Branch
Manager of Bank of India is not a 'public servant' under Section 21 of IPC
is erroneous and cannot be sustained.
Dr. Ghosh appearing for the respondents, however, stated that right
to speady trial having been held by this Court to be a fundamental right, D
the prosecutio';, in this case in which charge-sheet was fded almost ten years
ago in 1985, should be quashed on account of the inordinate delay in
completiog the same. In the fact situation of this case, the argument does
not appeal to us. The High Court itself, after considering the facts of the
case, came to the conclusion that the delay was not attributable only to the
prosecution and that the respondent had himself 'handsomely contributed' E
to the delay. We agree v.ith the above fmding of the High Court which is
based on facts and hold that. on the ground of delay, not attributable only
to the proseciition; the. respondent ciinliot challenge his prosecution for
various offences for which he wa5 standing trial before the Special Court.
The respondent, having himself contributed to the delay in the dispos'a! of F
the trial, in no small measure, cannot be perinitted t~ tiike advantage of
his own wrong and take shelter under 'speady trial' to escape from prosecu-
tion. ·",
As a result of the above discussion lhese appe~s succeed. and ..;e G
allowed. The impugned judgment of the High Court is set aside. The trial
court shall proceed v.ith the case and conclude it expeditiously.
AG . Appeal allowed.
. _.·
;-,_
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