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TMI Blog2003 (11) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... e Chief Minister or any Minister. Hence , Section 13(1)(c) of the Prevention of Corruption Act is not attracted to the facts of the case. The only evidence against A-6 is that he spoke about the disposal of file relating to sale of land in question to be expedited. This fact is spoken to by PW-12. PW 12 stated in her evidence that she voluntarily appeared before the Magistrate and gave a statement without being sponsored by the Investigating Officer though PW 23, Investigating Officer stated that he gave a requisition for recording her statement. A-6 did not participate in the meeting held on 14.10.1991 nor did he participate in the meeting held on 6.11.1991. The High Court did not accept the evidence of PW-12. This evidence does not in any manner advance the case of the prosecution to establish that A-6 has committed any offence. In the present case, purchase of the TANSI Foundry land was prohibited by law to A-1 and, therefore, contended that a high official like a Chief Minister cannot purchase Government property or property over which the Government has control when such an elementary obligation is imposed on smaller officials. It is submitted that Rule 2(b) of the G.O.No.1012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the properties by a Chief Minister or a Minister it cannot be treated as entrustment of the properties creating a trust which is an obligation annexed to the ownership of the properties and arises out of the confidence reposed and accepted by the owner. Indeed there is no material in the whole case to come to the conclusion that any such trust has been or deemed to have been created in respect of the said properties and that the relationship between A-1 and TANSI is one of trustee and beneficiary. Therefore, the ingredients of Section 409 IPC are not attracted to the present case at all. There is absolutely no entrustment of the properties in any manner, which allows a dominion over it except approving or disapproving, an act on the part of the Corporation either to sell or to alienate the properties. It cannot be said that a public servant who holds a particular port folio and has an element of supervisory control in certain matters, has a dominion over the property so as to exercise any legal incidents attached to the right of ownership. Therefore, there was no entrustment of the said properties and it cannot be said that A-1 had dominion over the said properties either as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Roxna Swamy, Advs For the Respondent : Altaf Ahmed, Additional Solicitor General, K.K. Venugopal, V.A. Bobde and Ranjit Kumar, Sr. Advs., K.V. Viswanathan, K.V. Venkataraman, N. Jothi, B. Raghunath, Ajit Mohan Singh, A.K. Sinha, Seema Bengani, K.V. Vijay Kumar, A.T.M. Sampath, V. Balaji, C. Manishankar, P. Venugopal, P.S. Sudheer, C.S. Kiran, P.N. Ramalingam, N. Annapoorani, Raj Shekhar, Pillai, C.S.S. Pillai and Rajnish Pathiyil, Advs. S. Rajendra Babu And P. Venkatarama Reddi, JJ. JUDGMENT S. Rajendra Babu, J. 1. These two sets of criminal appeals arise out of two criminal cases filed against Respondents Nos. 1 to 6 and the fall out thereof unfolding against currents and cross currents of political vicissitudes. Facts leading to these appeals are as under: 2. The Government of Tamil Nadu formed a Tamil Nadu Small Industries Corporation Limited (for short 'TANSI'). It was registered under the Companies Act, 1956 as a Government Company. The entire shares, namely, 100% of the shares of the said Corporation, were held by the government. In the Memorandum of Association it is stated that the said company is formed 'to take over from the Government of Tamil Nadu a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losses. Therefore a report was sent by TANSI to the Government to the effect that some of the industrial units are consistently incurring losses. On 30th September, 1985 the Government decided that eight units mentioned in the G.O.Ms. 832 can never be made viable whatever measures to be adopted to achieve the objects for which they were set up in the public sector and therefore their continuance will cause a drain on the finance of TANSI. TANSI Enamelled Wires, Guindy and TANSI Foundry, Guindy, situate in Thiru. vi. ka. Industrial Estate were two of the units among the eight identified as the units incurring losses mentioned in the said G.O. Therefore, the Government decided that TANSI should close down the 8 units and explore the possibility of disposing the properties by inviting offers through advertisements in newspapers. 4. In pursuance of the G.O., Ex.P-21, TANSI Foundry unit was officially close as per Ex.P.-33. Out of the total extent of 5.535 acres of land and 3267 sq.mts. of buildings in TANSI Foundry, an extent of 0.545 acres of land and 569 sq.mts. of building were transferred to Tamil Nadu Corporation for Development of Women on 15.5.1987 by TANSI after collecting &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd valuation report on record. It was also decided that TANSI must identify more such properties for sale and can send a proposal to the Government along with all details and topography sketches recommending the sale and that the vacant sites available for the running units can be plotted out into industrial lots for selling them at market value with a view to raise some resources. On 6.11.1991 Government directed all public sector undertakings to obtain prior approval of the Government in respect of all tenders for works, equipment, etc and all purchases whether by open tender or by limited tender enquiries etc. where the value of the contract exceeds ₹ 1 crore. It also directed that the proposals should be sent with the recommendation of the Board to the Administrative Department concerned and that Administrative Department may follow circuit procedures to circulate the file to concerned Minister, Minister for Finance and Chief Minister. 6. The Board of Directors of TANSI resolved to constitute a Sub-Committee consisting of the Directors for evaluating the offers received in respect of TANSI Enamelled Wires pursuant to the advertisement issued on 10.10.1991 and to make rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Corporation (SIDCO) also submitted a tender. Jaya Publications offered to purchase the entire land at the rate of ₹ 3.01 lakhs per ground. Aban Constructions offered to purchase the landed property at the rate of ₹ 1,77,325/- per ground, but it offered to purchase only 1.72 acres and not the entire property. ENCOFED offered to purchase 2000 sq.mts of land at rate of ₹ 1,33,333 per ground while SIDCO offered to purchase the land at ₹ 502/- per sq.mt. 7. All the offers were placed before the Sub-Committee for consideration and it decided that A-3 who is the Chairman-cum-Managing Director, TANSI, should negotiate with Jaya Publications since the offer of Jaya Publications was ₹ 1,82,13,150/- which is the highest of all the four bids and they should take up the matter with the Board by a note in circulation for a decision regarding the disposal of the property. Ex. P-30 are the Minutes of the meeting of the Sub- Committee and the same were initiated by P.W. 8 and A-3. The Board considered the matter and it was noticed that the value offered for the land by the highest bidder was ₹ 1,62,93,150 which worked out to ₹ 3.01 lakhs and that thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations on 4.3.1992 and the said document was registered conditionally because the value of the land and building was less than the market value and guideline value. Board of Directors of TANSI took note of the fact that the actual extent of land sold was 3.0786 acres when it was measured. 8. Under Section 47-A of the Indian Stamp Act (as in force in Tamil Nadu), Sub-Registrar, Adayar, P.W.1, referred to the Special Deputy Collector (Stamps) - A-5 - for fixing the market value of the TANSI Foundry land by his proceedings Ex. P-3 as the value was less. By proceedings dated 7.12.1992, Ex.P.-6, he fixed ₹ 3.00 lakhs per ground as the market value for the TANSI Foundry land. In Writ Petition No. 472 of 1993 in the High Court of Madras relief is sought for setting aside the sale deeds executed in favour of Jaya Publications and Sasi Enterprises on the ground that the sale deeds are invalid documents and for resumption of land by the Government. We are not concerned with this writ petition in these proceedings. 9. A private complaint was lodged before the IX Metropolitan Magistrate Court, Saidapet, seeking to punish J. Jayalalitha, respondent No. 1 herein, for offence under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct read with 109 IPC, under Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act read with 109 IPC and under Section 409 read with 109 IPC. A-3 to A-5 were convicted under Sections 120-B IPC read with 13(2) read with 13(1)(c) and (d) of the Prevention of Corruption Act and under Sections 13(2) read with Section 13(1)(d) of the Prevention of Corruption act and each of them was sentenced to suffer rigorous imprisonment for a period of three years and to pay a fine of ₹ 10,000/- in default of which each of them was directed to suffer simple imprisonment for three months for each charge. A-6 was convicted under Sections 120-B IPC read with 13(2) read with 13(1)(c) and (d) of the Prevention of Corruption Act and he was sentenced to suffer rigorous imprisonment for three years and to pay a fine of ₹ 10,000/- with a default sentence of simple imprisonment for three months. The learned trial Judge further directed that the sentences imposed upon the accused will run concurrently. A-1 was acquitted of the charge framed under Section 420 IPC and also the charge under Section 169 IPC. A-2 was acquitted of the charges framed under Section 169 read with 109 IPC and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongful loss to one party or gain to another party. 5. Price paid for small extents of land or additional stamp duty claimed on that basis are paid without demur cannot form a test for fixing the market value of the land in question. 6. The value mentioned in Ex. P.5 for the building or the super-structure ought to have been taken into consideration by the Trial Court as the same contained the necessary details and though it is stated that Exs.P.58 and P.59 were prepared after ascertaining relevant details, no material was placed in support of the same before the court and, therefore, it could not be said that the properties had been purchased at a lesser value than what is just. 7. The sale effected by TANSI Enamelled Wires to M/s Sasi Enterprises is not vitiated. The Sub-Committee rejected the offer of M/s R.R.Industries of ₹ 4.12 lakhs on the basis of guideline value. It is only much later the Sub- Committee realised from Ex.D-39, letter of the Sub-Registrar, that the subject matter of sale therein is only of an extent of 240 sq. feet and is in respect of a small shed. There are other reasons also to reject the offer of R.R. Industries. 8. The charge of conspiracy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ongful loss to the Government Company and wrongful gain to A1 and A2. 16. Examination of the evidence on record would indicate that the witnesses had admitted that the properties in question had no guideline value and hence the charge framed that the properties were purchased below the guideline value is defective. Though charge was not based on market value, the learned trial Judge proceeded to consider the prosecution version by taking ₹ 7.32 lakhs as the 'market value' per ground and held that TANSI suffered loss; the High Court, however, having examined as to what exactly was the market value of the properties in question, held in effect that the trial court took into account irrelevant materials and overlooked relevant evidence. As observed by the High Court, the property was sold by tender process and the bidders quoted their offers and the highest offer was that of firms of respondents Nos. 1 and 2 and under the circumstances, unless the tender process was shown to be vitiated, the price quoted by the highest bidder had to be normally taken as the market value. Market value being a variable factor and if a price was quoted and if it was not shown that the tend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a private party and the price of ₹ 3 lakhs per ground offered by the Sugar Federation could be taken into consideration for reflecting the market value of the property in question. Ex. D-20 and Ex. P-61 in connection with that sale indicating that the value of ₹ 3 lakhs per ground fixed by the Collector, Madras and Commissioner of Land Administration could be relied upon. 17. While on this point the High Court referred to the fact that in Ex.D.20, the Collector stated that the market value of the land in Block No.4 works out to ₹ 1,68,649 per ground and the disputed property which is situate in Block No.5 is only 180 meters from that land. The Collector, however, took into account the sale under Ex.P.60, according to which the sale price per ground is ₹ 3,12,613. The High Court then adverted to the argument of the learned Public Prosecutor that Ex.P.60 should be eschewed from consideration on the ground that it lies within the jurisdiction of a different revenue district and observed that if Ex.P.60 is to be ignored, the market value of the disputed property would only be ₹ 1,68,649 and not even ₹ 3,00,000. 18. In view of the failure of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, it stands on the same footing as Ex.P-8. 20. It is strongly contended that the recommendation of ₹ 3 lakhs per ground in respect of a transaction to be entered into with Tamil Nadu Sugar Cooperative Federation is stated not to offer a good guide for fixing the value of the properties in the present case. The High Court took note of the fact that Tamil Nadu Sugar Cooperative Federation is not a Governmental organisation to which a concession has been shown on that basis. It is to be noticed that the Trial Court relied upon four documents, viz., Exs. P-8, P-57, P-70 and P-71, to show that the market value of the land in question is ₹ 7.32 lakhs per ground. Each of these documents was accompanied by Form No.1A wherein the parties acquiesced in the claim for the payment of excess stamp duty. It is correctly assessed by the High Court that the price ranged between ₹ 76,344 to ₹ 4,78,484/- per ground. Indeed, Exs.P-70 and P-71 indicated that ₹ 8 lakhs per ground would be the value but those documents involve transfer of a running business. The High Court also gave importance to the history of the efforts on the part of TANSI to bring the properties t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand to reason. 21. The argument of Sri Andhyarujina and Shri Natarajan is that officers had proceeded initially on the basis that the land in question had a Guideline Value of ₹ 7.32 lakhs per ground and hence the same constituted a benchmark. The High Court has gone on to examine the case as if it is a valuation court and did not examine the matter in the perspective in which charges are framed against the accused. This argument ignores that the gist of the charge is causing wrongful loss or gain in the sale of the land which could be only on the basis of its market value and not on assumed figures or notional value. Thus, the finding of the High Court that the prosecution has not succeeded in establishing that the market value of TANSI Foundry land sold to Jaya Publications as ₹ 7.32 lakhs per ground cannot at all be said to be a perverse finding. 22. We may now proceed to consider the valuation of superstructure. Exhibit P-5 showed that the building was worth ₹ 18,22,654/- which is less than the value offered by M/s Jaya Publications. This amount of ₹ 18,22,654/- was assessed by one Sivaraman at the instance of PW-1 after the sale was effected. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e "Guidelines Register" supplied to the officers is intended merely to assist them to ascertain prima facie, whether the market value has been truly set forth in the instruments. The entries made therein regarding the value of properties cannot be a substitute for market price. Such entries will not foreclose the enquiry of the Collector under section 47-A of the Act or fetter the discretion of the authorities concerned to satisfy themselves on the reasonableness or otherwise of the value expressed in the documents." 24. This explanation also will have to be read in conjunction with explanation to Section 47-A of the Indian Stamp Act (as amended by TN Act 24 of 1967) which reads :- "Explanation.- For the purpose of this Act, market value of any property shall be estimated to be the price which, in the opinion of the Collector or the Chief Controlling Revenue Authority or the High Court, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange gift, release of benami right or settlement." 25. This scheme of the enactment and Rules contemplate that gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the advertisement was sold to the firm of respondents. We do not think that this aspect assumes any significance especially in view of the fact that one of the terms in the advertisement itself stipulates that the actual area to be sold will be according to measurement. Thus the view taken by the High Court in this regard is perfectly in order and calls for no interference. 28. The contention that there was enough material on record to show that A-1 had knowledge of the purchase of the TANSI Foundry land and A-1 had signed several documents in relation thereto need not be examined because even proceeding on the basis on which the learned counsel contended would not carry the matter any further. The stand of respondents Nos. 1 and 2 is not that the firms of which they are partners have not purchased the properties in question, but only that respondent No. 1 has not signed some of the documents leading to sale of the properties in question. There is overwhelming evidence on record to indicate that accused No. 1 has signed the documents in question, but the denial of respondent No. 1 appears to be too naove to be accepted in a court of law. May be respondent No. 1 might have trie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases whether by open tender or by limited tender enquiries, etc. where the value of the contract exceeds ₹ 1 crore. Therefore, the said note file should have been circulated to A-1 for approval and not circulating the said note file to A-1, offence of conspiracy could be held to have been made out. The learned Judge held that G.O. Ms. No. 836 of 1991 had to be read in its entirety and if it is so read, it would show that it would be applicable only in respect of financial outgo by means of tender for works or for purchase of equipments and all purchases as noted in different paragraphs thereof and this G.O. was issued only as a financial discipline measure and to monitor the expenditure above ₹ 1crore and the word 'tender' used in the said G.O. did not mean that the sale of land by TANSI will also come within the ambit of the said G.O. since it was clear from the word 'contracts' used in the said paragraphs that the G.O. was applicable to the tenders for works, equipments, etc. if it is for purchase and not for sale of property. Inasmuch as in the markings in the note file there was reference to 'Minister (Rural Industries)', 'Minister ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased at a lesser price so as to cause wrongful loss or wrongful gain or to enable A-1 and A-2 to obtain the property at a price less than its value. 33. Section 13(1)(d) of the Act states as follows :- "A public servant is said to commit the offence of criminal misconduct, if he (i) by corrupt or illegal means, obtains for himself or for any other person any valuable thing or pecuniary advantage; or (ii) by absuing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or (iii) while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest." 34. To attract provisions of Section 13(1)(d) of the Prevention of Corruption Act, public servant obtains for himself or any other person any valuable thing or pecuniary advantage (i) by corrupt or illegal means, or (ii) by abusing his position as public servant, or (iii) without any public interest. 35. The circumstances under which the properties were purchased by M/s Jaya Publications and M/s Sasi Enterprises cannot be treated as one obtained in the circumstances arising in Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor was it entrusted to or under the control of the Chief Minister or any Minister. Hence, Section 13(1)(c) of the Prevention of Corruption Act is not attracted to the facts of the case. 37. The only evidence against A-6 is that he spoke about the disposal of file relating to sale of land in question to be expedited. This fact is spoken to by PW-12. PW 12 stated in her evidence that she voluntarily appeared before the Magistrate and gave a statement without being sponsored by the Investigating Officer though PW 23, Investigating Officer stated that he gave a requisition for recording her statement. A-6 did not participate in the meeting held on 14.10.1991 nor did he participate in the meeting held on 6.11.1991. The High Court did not accept the evidence of PW-12. This evidence does not in any manner advance the case of the prosecution to establish that A-6 has committed any offence. 38. Regarding the charge against A3, who was the Chairman-cum-Managing Director of TANSI from 1.8.1991 to 10.7.1992, we have to bear in mind certain facts. The decision to accept the offer of Jaya Publications was that of the Board and not of A-3 alone. PW 8 the General Manager and Company Secretary o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le by Wazir Begum to Capro Industries and through this transaction an extent of 5393 sq.ft. of land was sold which is about two ground. The executant in the deed had shown the value of land per ground as ₹ 1,89,120/- and A-5 fixed the value at ₹ 3 lakhs per ground but in the course of his proceedings - Ex. P-6 - had referred to this document but only made a factual error in stating that the property was sold to SIDCO. Ex.P-68 is a deed registered on 31.5.1991 by which an extent of 5538.5 sq.ft. of land was transferred. The executant had valued the land at ₹ 2,07,984/- per ground and on being referred under Section 47-A of the Stamp Act, A-5 fixed the value of the land at ₹ 2,78,184/- per ground. These three sale deeds related to the sale of property falling within Block No. 6 of Adayar village and the properties covered by the said documents were smaller in extent. Since the maximum extent being 2.78 acres which was conveyed under Ex.D-10 and even for that property A-5 had fixed ₹ 2,17,008/- as value per ground and, therefore, he held that the value fixed by A-5 at ₹ 3 lakhs per ground for the property in dispute could not be stated to be an unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging to or owned by the Government. It was also held that the Code of Conduct cannot be construed to spell out a legal prohibition. 44. On behalf of the appellants, it is urged that A-1 had purchased the TANSI Foundry land as a public servant and she was legally bound not to bid for purchase for this property and thereby she had abused her position as a public servant to obtain for herself and A-2 the valuable property TANSI Foundry and also a pecuniary advantage of ₹ 3.5 crores. There cannot be serious dispute that A-1 was a public servant at the relevant time. According to the prosecution Section 169 IPC embodies a prohibition on a public servant not to purchase or bid for certain property being legally bound as such a public servant not to purchase or bid for that property. The emphasis laid is that the principle underlying under Section 169 IPC is that a public servant is in fiduciary obligation in relation to property which is in his charge or over which he could have control and he should not put himself in a position of conflict of interest between his public duty in relation to that property and his private interest in purchasing that property and the general law in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision also provides for a definition of what is "illegal", that is, everything which is an offence or which is prohibited by law or which furnishes a ground for civil action. In the present case, purchase of the TANSI Foundry land was prohibited by law to A-1 and, therefore, contended that a high official like a Chief Minister cannot purchase Government property or property over which the Government has control when such an elementary obligation is imposed on smaller officials. It is submitted that Rule 2(b) of the G.O.No.1012 issued by the Tamil Nadu Government states that after taking office and so long as he remains in office a Minister shall refrain from buying from, or selling to, the Government any immovable property. This order of the Government has been issued in exercise of the executive power of the State vested in the Governor under Article 154 read with Article 162 of the Constitution and the executive have power to make any regulation which would have the effect of a law so long as it does not contravene any legislation already covering the field and such executive orders having been made under Article 73 of the Constitution have for their operation an equa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... improper conduct or to evade an existing obligation or to protect crime. In this context, heavy reliance is placed on the Code of Conduct. 45. We may now advert to the contentions of the learned senior counsel appearing for the 1st Respondent: 46. The arguments of the learned counsel for the appellant goes beyond the scope of the charge, that the phrase "legally bound not to" has not been defined in the IPC but what is defined in Section 43 is the opposite concept i.e. "legally bound to do", that in order to attract Section 169 there must be a prohibition under the statute or statutory rules or regulations and there is no such law in the present case. The Code of Conduct is not statutory and cannot be enforced by the Court. It is more in the nature of internal guidelines meant for governing the conduct of Ministers and does not give a right to third party to maintain a civil action, much less, the violation thereof attracts any penal provision. The enormity of the result of the appellant's argument being accepted would be that a public servant would be guilty of an offence under Section 169 if there is any contravention arising out of a plethora of admini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bid 'certain property', and (3) either in his name or in the name of another or jointly, or in shares with others. 49. The offence under Section 169 IPC is incomplete without the assistance of some other enactment which imposes the legal prohibition required. "The enactment containing the prohibition naturally and necessarily defines the area which is covered by it, both as to the class of public servants to whom it applies and the nature of the dealings in which those servants are prevented from engaging" [Vide 11 Cr.L.J. Reports 613, Narayan v. Emperor]. Therefore, in order to come within the clutches of Section 169 IPC, there should be a law which prohibits a public servant from purchasing certain property and if he does it, it becomes an offence under Section 169 IPC. Section 481 Criminal Procedure Code, Section 189 of the Railways Act, 1989 and Section 19 of the Cattle Trespass Act, 1871 and instances of that nature in several enactments are available in which persons mentioned therein shall not directly or indirectly purchase any property at a sale under those Acts. Similarly Section 136 of the Transfer of Property Act provides that no Judge, legal practit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it illegal. A Code of Conduct prescribed by the Government under certain notification by itself cannot be elevated to the level of law as has been rightly held by the Andhra Pradesh High Court in the case of Vidadala Harinadhababu vs. N.T. Ramarao, [AIR 1990 A.P. 20]. Although there are certain strong expressions used in the course of the said decision to the effect that "no minister or Chief Minister can have the temerity to act contrary to such a Code" and it is binding on the Minister, still it cannot be elevated to the level of prohibition under law. Following observations made by a full Bench of the A.P. High Court in V. Harinathababu's case are quite apposite. "The Codes of Conduct issued by the Union Government and the State Government are not statutory in nature. They lay down rules of conduct which the Ministers must observe. They are in the nature of guidelines. They also prescribe the authority who should ensure compliance with the said Code; it is to him that the statements contemplated by paragraphs 1(a), 2(a) and 2(e) have to be furnished. Even the procedure to be followed in the case of an alleged or suspected breach of the Code is also left to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporations or any public sector undertaking affording a cause for civil action especially when no fraud or illegal gain is involved. Therefore, we are constrained to hold that the offence under the aforesaid provision has not been established. In fact, there is nothing in the charge to indicate nor did the prosecution take a specific stand at any stage of the trial that the purchase of TANSI foundry property by A-1 from the Government would furnish a ground for a particular civil action. The nature of civil action that could be initiated cannot be left to the guess work and the accused cannot be expected to meet such case at this stage. 54. In the view we have taken, it is not necessary to consider the further questions debated at the bar, namely, whether the prohibition extends to the property of Government Undertaking as well, whether the State can legislate in respect of the conduct of Ministers and whether the expression 'legally bound not to purchase' should be necessarily construed in the light of the definition of 'legally bound to do'. But, we would like to observe one thing-whether or not the word 'Government' in para 2(b) of the Code of Cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts attached to the right of ownership. Therefore, there was no entrustment of the said properties and it cannot be said that A-1 had dominion over the said properties either as the Chief Minister or as the Minister of Industries and in any case, the evidence does not establish the ingredient of dishonest disposal or conversion of property for personal use . Thus the charge under the aforesaid section is also not established as rightly held by the High Court. 57. Though learned counsel wanted us to re-appreciate the evidence with reference to the files of the Government and other material on record, we refrain from doing so but have only broadly looked at facts adduced in evidence so as to judge whether in a proceeding under Article 136 of the Constitution we should interfere with the order of acquittal. For the reasons stated above, we think that none of the offences charged against the accused are established. There is no ground to interfere with the order under appeal. Hence, these appeals are liable to be dismissed. 58. Before we part with the matter, it is necessary to notice certain aspects of the matter. 59. Crime is applied to those acts, which are against social order an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent has to give permission in respect of the sale of property of these two companies, it certainly exercises powers over the same and thus there is conflict of interest. Where there is conflict of interest law has always avoided such sales being effected in favour of those who can jeopardise the fair outcome of the transaction. Whatever may be our findings on the question of valuation of the property whether it resulted in a pecuniary advantage to A-1 or not, we are clear in our mind that if the officers and others become aware of the fact that the Chief Minister of the State is interested in purchasing some properties, the bureaucracy will be over-enthusiastic to see that the sale goes through smoothly and at a price desired by such Chief Minister. Though we can visualise such situation, such facts have to be established by concrete evidence to be convicted in a criminal case and is hard or difficult to get. At any rate, it is plain that such conduct is opposed to the spirit of the Code of Conduct if not its letter. Morally speaking, Can there be one law for small officials of the Government and another law for the Chief Minister ? In matters of such nature, is the Code of Con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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