2012 (11) TMI 1330 - HC - Indian Laws

Summary

Issues involved: Challenge to order of Additional Sessions Judge rejecting revision application u/s 409, 420, 120B, 467, 468, 471/34 IPC in connection with Gardanibagh (Shastri Nagar) P.S. Case No. 860 of 2002.

Summary:

In the present case, the petitioner, a former member of the Indian Administrative Service, challenged the order passed by the Additional Sessions Judge, Patna, rejecting the revision application related to a criminal case involving financial irregularities. The FIR alleged that the petitioner, while serving as Administrator cum-Managing Director at Bihar State Housing Co-operative Federation Ltd., was involved in financial irregularities, specifically in granting loans to a private company. The petitioner contended that no offence was made out against him as there was no misappropriation of funds and no sanction was obtained u/s 197 Cr. P.C. before taking cognizance. The petitioner's counsel argued that all the money involved had been recovered by the Federation, thus no offence was committed.

On the other hand, the State argued that the FIR, when read in its entirety, established the offence against the petitioner and other accused individuals, indicating misappropriation of funds. The State emphasized that at the stage of cognizance, only a prima facie case needed to be established. The State also highlighted that the requirement of sanction u/s 197 Cr. P.C. depended on whether the allegations had a nexus with the petitioner's official duty.

The Court referred to a Supreme Court judgment and reiterated that the issue of sanction depended on the nature of the allegations and their connection to official duty. The Court found that the statement in the FIR constituted a prima facie case against the petitioner, and the recovery of money by the Federation did not absolve the petitioner of his actions as an Administrator. Consequently, all petitions were dismissed, with the petitioner retaining the liberty to raise points at the appropriate stage, including the applicability of sanction.