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Issues: (i) Whether section 409 of the Indian Penal Code stood impliedly repealed, in so far as it applied to public servants, by section 5(1)(c) and section 5(2) of the Prevention of Corruption Act, 1947; (ii) whether the application of section 409 of the Indian Penal Code to a public servant offended Article 14 of the Constitution of India; and (iii) whether a prosecution under section 409 of the Indian Penal Code nevertheless required sanction under the Prevention of Corruption Act, 1947.
Issue (i): Whether section 409 of the Indian Penal Code stood impliedly repealed, in so far as it applied to public servants, by section 5(1)(c) and section 5(2) of the Prevention of Corruption Act, 1947.
Analysis: Section 405 of the Indian Penal Code and section 5(1)(c) of the Prevention of Corruption Act were held to differ in material respects. The latter created the distinct offence of criminal misconduct and was wider in amplitude, using different ingredients and language from the offence of criminal breach of trust under the Indian Penal Code. The Act was treated as creating a separate and additional offence, not as occupying the field to the exclusion of the earlier provision.
Conclusion: Section 409 of the Indian Penal Code was not impliedly repealed by section 5(1)(c) and section 5(2) of the Prevention of Corruption Act, 1947, and the point was answered against the appellants.
Issue (ii): Whether the application of section 409 of the Indian Penal Code to a public servant offended Article 14 of the Constitution of India.
Analysis: Since the offences under the two enactments were distinct, the availability of prosecution under one provision and not the other did not create unconstitutional discrimination. The existence of different ingredients, punishments, presumptions, and procedural incidents did not make the Indian Penal Code provision invalid under the equality clause.
Conclusion: The application of section 409 of the Indian Penal Code to public servants did not violate Article 14, and the contention failed.
Issue (iii): Whether a prosecution under section 409 of the Indian Penal Code required sanction under the Prevention of Corruption Act, 1947.
Analysis: The requirement of sanction under section 6 of the Prevention of Corruption Act was confined to prosecutions under the offences specified thereunder. A prosecution launched under section 409 of the Indian Penal Code stood on a different footing, and a public servant committing criminal breach of trust was not treated as acting in official capacity so as to attract the sanction requirement on the facts considered.
Conclusion: No sanction under the Prevention of Corruption Act, 1947 was necessary for a prosecution under section 409 of the Indian Penal Code, and the contention was rejected.
Final Conclusion: The judgment upheld the distinct existence of the Indian Penal Code offence, rejected the plea of implied repeal and constitutional invalidity, and negatived the asserted sanction requirement under the Corruption Act.
Ratio Decidendi: A later statute creating a distinct and wider offence does not impliedly repeal an earlier penal provision unless the two are wholly incompatible or cannot reasonably stand together; differences in ingredients and procedure do not, by themselves, displace the earlier offence.