Prior sanction for public servants is mandatory before cognizance under money-laundering proceedings; absence of sanction invalidates the process.

Prior sanction under Section 197(1) of the Code of Criminal Procedure is a condition precedent to taking cognizance against a public servant for acts done or purportedly done in discharge of official duty. In proceedings under the Prevention of Money Laundering Act, that requirement continues to apply through Section 65 and is not displaced by the overriding clause in Section 71. As the accused were public servants and sanction had not been obtained when cognizance was taken, the cognizance order and process were unsustainable and were set aside.

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Issues: Whether the order taking cognizance under the Prevention of Money Laundering Act could be sustained in the absence of previous sanction under Section 197(1) of the Code of Criminal Procedure, 1973.

Analysis: Section 197(1) of the Code of Criminal Procedure, 1973 makes previous sanction a condition precedent before a court can take cognizance of offences alleged against a public servant acting or purporting to act in the discharge of official duty. The accused were public servants, and the sanction was not obtained on the date cognizance was taken. The settled position that Section 197(1) applies to proceedings under the Prevention of Money Laundering Act by virtue of Section 65 of that Act, and is not displaced by the overriding clause in Section 71, governed the decision.

Conclusion: The cognizance order and process could not be sustained and were set aside for want of prior sanction.

Ratio Decidendi: Where prior sanction under Section 197(1) of the Code of Criminal Procedure, 1973 is required, cognizance taken against a public servant in proceedings under the Prevention of Money Laundering Act without such sanction is invalid, and the special statute does not override that requirement where the Criminal Procedure Code is made applicable by Section 65.

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