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Issues: Whether sanction for prosecution under Section 197 of the Code of Criminal Procedure, 1898 was necessary for prosecuting customs officers for alleged criminal breach of trust under Section 409 of the Indian Penal Code, 1860 on the facts alleged.
Analysis: The governing test is whether the act complained of had a reasonable connection with the discharge of official duty, so that the accused could claim to have acted in virtue of office, and not merely that the office furnished an opportunity to commit the alleged offence. Seizure and custody of the goods were acts done in the course of official duty, but the complaint alleged a later dishonest misappropriation or conversion of the goods. That subsequent act did not bear the character of an official act, nor was it inseparably connected with the performance of duty. The earlier decisions relied upon turned on their special facts, where the dishonest act itself was intertwined with an official act; those decisions did not apply to the present case.
Conclusion: Sanction under Section 197 of the Code of Criminal Procedure, 1898 was not required, and the prosecution could proceed against the appellants.
Final Conclusion: The appeal was dismissed because the alleged misappropriation was held to be outside the protective scope of official-duty sanction.
Ratio Decidendi: Sanction for prosecution is required only when the alleged offence has a direct and reasonable connection with the discharge of official duty; where a public servant merely uses official custody or position as an occasion for a later dishonest misappropriation, Section 197 does not apply.