2000 (2) TMI 829 - SC - Indian Laws

Co-operative society chairperson's 'public servant' status for IPC s.21 and PCA s.5 bribery prosecution rejected

The dominant issue was whether the chairperson of a co-operative society under the Maharashtra Co-operative Societies Act could be treated as a 'public ... Co-operative Society - Whether the Chairman of a Co-operative Society under the Maharashtra Co-operative Societies Act, can be held to be a public servant for the purpose of Section 21 of the Indian Penal Code and as such, can be proceeded against for offences under Section 5(1) read with Section 5(2) of the Prevention of Corruption Act, 1947 - HELD THAT:- A legal fiction in terms enacted for the purposes of one Act is normally restricted to that Act and cannot be extended to cover another Act. When the State Legislatures make the Registrar, a person exercising the power of the Registrar, a person authorised to audit the accounts of a society under Section 81or a person to hold an inquiry under Section 83 or to make an inspection under Section 84 and a person appointed as an Administrator under Section 78 or as a Liquidator under Section 103 shall be deemed to be public servant within the meaning of Section 21 of the Indian Penal Code. Obviously, they would not otherwise come within the ambit of Section 21, the legislative intent is clear that a specific category of officers while exercising powers under specific sections have by legal fiction become public servant and it is only for the purposes of the co-operative Societies Act. That by itself does not make those persons public servants under the Indian Penal Code, so as to be prosecuted for having committed the offence under the Penal Code. When a person is deemed to be something, the only meaning possible is that whereas he is not in reality that something, the Act of legislature requires him to be treated as if obviously for the purposes of the said Act and not otherwise. In a somewhat similar situation in Ramesh Balkrishna Kulkarni vs. State of Maharashtra, the question for consideration was whether a Municipal Councillor can be prosecuted for having committed an offence under the Indian Penal Code, since under Section 302 of the Municipalities Act, a Councillor shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code. Every councillor and every officer or servant of a Council, every contractor or agent appointed by it for the collection of any tax and every person employed by such contractor or agent for the collection of such tax, shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code. Thus, we see no infirmity with the impugned judgment of the High Court to be interfered with by this Court. The appeals fail and are dismissed. Issues Involved: The judgment deals with whether the Chairman of a Co-operative Society under the Maharashtra Co-operative Societies Act can be considered a public servant for the purpose of Section 21 of the Indian Penal Code and be proceeded against for offenses under the Prevention of Corruption Act, 1947.Analysis of the Judgment:Issue 1: Public Servant Status under Indian Penal Code and Prevention of Corruption ActThe accused persons, members of the Managing Committee and Chairman of co-operative societies, contested their status as public servants under Section 21 of the Indian Penal Code and the Prevention of Corruption Act. The Special Judge and the High Court analyzed the provisions of Section 161 of the Maharashtra Co-operative Societies Act and Section 21 of the Indian Penal Code. The High Court concluded that the accused persons cannot be prosecuted for certain offenses under the Indian Penal Code and the Prevention of Corruption Act, despite being able to be prosecuted for other offenses. The State contended that officers under the Co-operative Societies Act should be deemed public servants under the Indian Penal Code, but the High Court's decision was upheld.Issue 2: Interpretation of Legal ProvisionsThe High Court determined that the Co-operative Societies Act and the Indian Penal Code operate in distinct fields, with separate provisions and offenses. The State Legislature's power to amend Section 21 of the Indian Penal Code was highlighted, emphasizing that the deeming provision in the Co-operative Societies Act does not automatically extend the public servant status under the Indian Penal Code. Legal precedents were cited to support the argument that specific categories of officers, while deemed public servants under the Co-operative Societies Act, cannot be prosecuted under the Indian Penal Code without an amendment to Section 21.Conclusion:The Supreme Court dismissed the appeals, upholding the High Court's decision that the accused persons, despite being deemed public servants under the Co-operative Societies Act, cannot be prosecuted for offenses under the Indian Penal Code. The judgment emphasized the distinct nature of the two statutes and the need for a specific amendment to Section 21 of the Indian Penal Code to enable prosecution of such officers.