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Issues: Whether sanction under Section 197 of the Code of Criminal Procedure, 1973 is required to prosecute public servants for alleged offences of cheating, forgery, falsification of accounts, criminal conspiracy and abetment committed while they were in service.
Analysis: Sanction under Section 197 is attracted only when the alleged act has a reasonable nexus with official duty and is committed while acting or purporting to act in discharge of that duty. Acts such as cheating, fabrication of records, falsification of accounts, criminal conspiracy or misappropriation are not part of a public servant's official functions. The protection under Section 197 is meant to shield honest public servants from vexatious prosecution, not to protect corrupt conduct. The requirement of sanction is also not to be mechanically decided at the threshold if the question depends on evidence and may arise at a later stage.
Conclusion: Sanction under Section 197 was not required on the allegations in question, and the quashing of the criminal proceedings solely on that ground was unsustainable.