Sanction for corruption prosecution not required after compulsory retirement, as misconduct was outside official duty and cognizance was later taken.

Prior sanction under Section 19 of the Prevention of Corruption Act was not required because the relevant time is when the court takes cognizance, and the public servant had already been compulsorily retired and was not in service then. Section 197 CrPC also did not apply because the alleged criminal misconduct, conspiracy, and abuse of official position were not acts done in discharge of official duty or under colour of duty, and a corporation or public undertaking officer cannot claim that protection merely by virtue of holding office. No sanction was therefore necessary for prosecution.

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Issues: Whether prior sanction under Section 19 of the Prevention of Corruption Act, 1988 or Section 197 of the Code of Criminal Procedure, 1973 was necessary to prosecute a compulsorily retired public servant for offences under the Prevention of Corruption Act, 1988 and Section 120B of the Indian Penal Code, 1860.

Analysis: The relevant time for applying Section 19 of the Prevention of Corruption Act, 1988 is the stage when the Court takes cognizance. Since the petitioner had already been compulsorily retired and the Tribunal order restoring him had remained stayed, he was no longer in service when the charge-sheet was filed and cognizance was taken. The alleged criminal misconduct was also not an act done in discharge of official duty or under the colour of such duty, because entering into criminal misconduct, criminal conspiracy, or obtaining pecuniary advantage by abusing official position cannot form part of official functions. In addition, an officer of a corporation or public undertaking cannot claim the protection of Section 197 of the Code of Criminal Procedure, 1973 merely because of his position in that body.

Conclusion: No sanction under Section 19 of the Prevention of Corruption Act, 1988 or Section 197 of the Code of Criminal Procedure, 1973 was required.

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