Legal Vidhiya

Prevention Of Corruption Act – HC Cannot Reverse Special Court Findings on Validity of Sanction Unless It Finds That Failure of Justice Had Occurred:

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Date: August 4, 2023

The Supreme Court of India recently issued a ruling in the case of State of Karnataka Lokayukta Police vs. S. Subbegowda, regarding the validity of sanction under the Prevention of Corruption Act, 1988. The court held that the High Court cannot reverse the findings recorded by the Special Court in Corruption Cases on the validity of sanction, without recording any opinion as to how a failure of justice had in fact been occasioned to the accused.

In this case, the Karnataka High Court allowed a petition by discharging the accused from the offences charged under Section 13(1) (e) read with Section 13(2) of the Prevention of Corruption Act, 1988 on the ground that the sanction accorded to prosecute the respondent-accused by the Government was illegal and without jurisdiction. The State of Karnataka appealed this decision to the Supreme Court.

The issues raised in appeal by the State were twofold. First, whether the High Court in exercise of its powers under Section 482 of CrPC could have discharged the respondent-accused from the charges levelled against him for the offences under Section 13(1)(e) punishable under Section 13(2) of the said Act, despite the fact that the accused had not pressed for his second application for discharge by submitting the Memo dated 02.12.2014 and despite the fact that after framing of the charge by the Special Court on 23.12.2014, the trial had proceeded further and the prosecution had examined 17 witnesses in support of its case. Second, whether the High Court in the criminal petition filed under Section 482 of the CrPC could reverse the findings recorded by the Special Court with regard to the validity of sanction, ignoring the bar contained in sub-section (3) read with subsection (4) of Section 19 of the said Act.

The Supreme Court noted that neither the accused had pleaded nor the High Court opined whether any failure of justice had occasioned to the respondent, on account of error if any, occurred in granting the sanction by the authority. Referring to Section 19(3) and (4), which are pari material with Section 465(1) of CrPC, the bench of Justices Aniruddha Bose and Bela M. Trivedi observed that the combined reading of these two sections makes it clear that notwithstanding anything contained in the Code, no finding, sentence or order passed by the Special Judge shall be reversed or altered by a Court in appeal, confirmation or revision on the ground of the absence of, or any error, omission or irregularity in the sanction required under sub-section (1), unless in the opinion of the Court, a failure of justice has in fact been occasioned thereby. Sub-section (4) further postulates that in determining whether the absence of, or any error, omission or irregularity in the sanction has occasioned, or resulted in failure of justice, the Court shall have regard to the fact whether the objection could and should have been raised at an earlier stage in the proceedings. The explanation to sub-section (4) further provides that for the purpose of Section 19, error includes “competency of the authority to grant sanction”.

The Supreme Court clarified that sub-section (3) of Section 19 has application to the proceedings before the Court in appeal, confirmation or revision, and not to the proceedings before the Special Judge. The said sub-section (3) clearly forbids the court in appeal, confirmation or revision, the interference with the order passed by the Special Judge on the ground that the sanction was bad, save and except in cases where the appellate or revisional court finds that the failure of justice had occurred by such invalidity.

The court further added that an interlocutory application seeking discharge in the midst of trial would also not be maintainable. Once the cognizance was taken by the Special Judge and the charge was framed against the accused, the trial could neither have been stayed nor scuttled in the midst of it in view of Section 19(3) of the said Act. In the instant case, though the issue of validity of sanction was raised at the earlier point of time, the same was not pressed for. The only stage open to the respondent-accused in that situation was to raise the said issue at the final arguments in the trial in accordance with law.

In summary, the Supreme Court held that the High Court cannot reverse the findings of the Special Court on the validity of sanction without recording any opinion as to how a failure of justice had in fact been occasioned to the accused. The court also clarified that an interlocutory application seeking discharge in the midst of trial would not be maintainable, and that the issue of validity of sanction should be raised at the earliest possible stage of the proceedings. This ruling has significant implications for cases involving the Prevention of Corruption Act, 1988, and provides important guidance on the role of the High Court and Special Court in such cases.

 Judgement : https://www.livelaw.in/supreme-court/supreme-court-prevention-corruption-validity-sanction-state-of-karnataka-lokayukta-police-vs-s-subbegowda-2023-livelaw-sc-595-234340

Written by- Shriya Ayalasomayajula, College name – Nyaya Vidya Parishad, Intern Under Legal Vidhiya

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