Prevention of Money Laundering Act, 2002 – ss.3, 4, 44(1) (b), 65 and 71 – Code of Criminal Procedure, 1973 – s.197 – Respondents contended before the High Court that it was necessary to obtain prior sanction under subsection (1) of s.197 of the CrP.C. before taking cognizance of the complaints – The High Court upheld the respondents' contentions and quashed the orders of taking cognizance passed by the Special Court on the complaints only as against the said respondents – Propriety:
Held: There are two conditions for applicability of s.197(1) – The first condition is that the accused must be a public servant removable from his office by or with the government's sanction – The second condition is that the offence alleged to have been committed by the public servant while acting or purporting to act in the discharge of his duty – The first condition is satisfied in the case of both the respondents as they are civil servants – In the case of both respondents, the acts alleged against them are related to the discharge of the duties entrusted to them – It is not the allegation in the complaints that the two respondents were not empowered to do the acts they have done – There is a connection between their duties and the acts complained of – The second condition for the applicability of s.197(1) also stands satisfied, and therefore, in this case, s.197(1) of CrPC applies to the respondents, assuming that s.197(1) of CrPC applies to the proceedings under the PMLA – As far as the applicability of s.197 of CrPC to the PMLA is concerned, there are two relevant provisions in the form of s.65 and 71 of the PMLA – S.65 makes the provisions of the CrPC applicable to all proceedings under the PMLA, provided the same are not inconsistent with the provisions contained in the PMLA – The words ‘All other proceedings’ in s.65 include a complaint u/s.44 (1)(b) of the PMLA – There is no provision therein which is inconsistent with the provisions of s.197(1) of CrPC – Therefore, the provisions of s.197(1) of CrPC are applicable to a complaint u/s.44(1)(b) of the PMLA – When a particular provision of CrPC applies to proceedings under the PMLA by virtue of s.65 of the PMLA, s.71 (1) cannot override the provision of CrPC which applies to the PMLA – In the instant case, the cognizance of the offence u/s.3, punishable u/s.4 of the PMLA, was taken against the respondents accused without obtaining previous sanction u/s.197(1) of CrPC – Therefore, the view taken by the High Court is correct. [Paras 11, 13, 15, 16, 17, 18, 19] Code of Criminal Procedure, 1973 – s.197 – Object of: Held: The object is to protect the public servants from prosecutions – It ensures that the public servants are not prosecuted for anything they do in the discharge of their duties – This provision is for the protection of honest and sincere officers – However, the protection is not unqualified – They can be prosecuted with a previous sanction from the appropriate government. [Para 6]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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