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The State Of Madhya Pradesh vs Allahabad Bank
2022 Latest Caselaw 16491 MP

Citation : 2022 Latest Caselaw 16491 MP
Judgement Date : 13 December, 2022

Madhya Pradesh High Court
The State Of Madhya Pradesh vs Allahabad Bank on 13 December, 2022
Author: Sheel Nagu
                                                        1
                            IN    THE     HIGH COURT OF MADHYA PRADESH
                                               AT JABALPUR
                                                    BEFORE
                                        HON'BLE SHRI JUSTICE SHEEL NAGU
                                                       &
                                      HON'BLE SHRI JUSTICE VIRENDER SINGH
                                           ON THE 13 th OF DECEMBER, 2022
                                             WRIT PETITION No. 888 of 2018

                           BETWEEN:-
                           1.    THE STATE OF MADHYA PRADESH THR. THE
                                 SECRETARY   GOVT.  OF   M.P. GENERAL
                                 ADMINISTRATION DEPARTMENT MANTRALAYA
                                 BHOPAL (MADHYA PRADESH)

                           2.    THE ECONOMIC OFFENCE WING M.P. E.O.W.
                                 ARERA HILLS BHOPAL (MADHYA PRADESH) THR.
                                 ITS DIRECTOR GENERAL.

                                                                               .....PETITIONERS
                           (SHRI MADHUR SHUKLA - ADVOCATE FOR PETITIONER NO.2)

                           AND
                           1.    ALLAHABAD    BANK    CENTRAL     OFFICE,
                                 ALLAHABAD BANK, HEAD OFFICE, 2 NETAJI
                                 SUBHAS ROAD, KOLKATA 700001 STATE (WEST
                                 BENGAL)

                           2.    GENERAL MANAGER HR ALLAHABAD BANK
                                 HEAD OFFICE 2 NETAJI SUBHAS ROAD, 700001
                                 KOLKATA STATE (WEST BENGAL)

                           3.    MR. S. K. DEY, THE THEN CHIEF MANAGER AT
                                 THE ALLAHABAD BANK BHOPAL (MADHYA
                                 PRADESH)

                                                                             .....RESPONDENTS
                           (BY SHRI ANOOP NAIR - ADVOCATE)

                                 This petition coming on for admission this day, JUSTICE SHEEL
                           NAGU passed the following:
                                                         ORDER

Signature Not Verified Signed by: ANAND KRISHNA SEN Signing time: 12/14/2022 2:16:25 PM

This petition has been filed by the prosecuting agency-Economic Offence Wing, Bhopal assailing the refusal to grant sanction for prosecuting respondent No.3.

2. The Coordinate Bench of this Court vide order dated 01.07.2022 passed in W.P.No.13776/2022 (The State of Madhya Pradesh vs. Sandeep Kumar Lohani & ors.), in a petition filed by Lokayukta, has held that Investigating/prosecuting agency has no locus to challenge an order of refusal to grant sanction. The relevant extract of the said judgment is reproduced below for ready reference and convenience :

"5. A specific question was put to the counsel for the writ petitioner that under which provisions of law the Authorities of the Lokayukt have challenged the impugned order because their work is only to investigate the matter and place the report before the State Government for consideration. The impugned order reflects the application of mind by the Authorities and a detailed order has been passed by the Authorities holding that the involvement of the respondent No.1 in the aforesaid offence is not clearly reflected, therefore, a reasoned and speaking order was passed refusing sanction.

6. The Hon’ble Supreme Court in the case of Mohd. Iqbal Ahmad Vs. State of Andhra Pradesh reported in AIR 1979 SC 677 has held that the grant of sanction is not an idle formality but a solemn and sacrosanct act which affords protection to government servants against frivolous prosecutions and must, therefore, be strictly complied with before any prosecution could be launched against public servants. It is well known that the purpose of granting sanction by the Competent Authority is neither a mere formality nor a ritual. It is in the nature of a safe ground provided to public servant of falsely being harassed, implicated and then prosecuted. It is also aimed at infusing confidence in the fair working of the public servants and also for keeping a check of unscrupulous elements to deter the working of public servants by roping them in vexatious cases. But at the same time, it is to be ensured that those who are found guilty prima facie of having committed some offence may be dealt with in accordance with law.

7. The Hon’ble Supreme Court in the case of State of Punjab Vs. Mohammad Iqbal Bhatti reported in 2010 Cr.L.J. 1436 has held that it is also well settled that the Supreme Court cannot direct the Signature Not Verified sanctioning authority either to grant sanction or not to do so. The Signed by: ANAND KRISHNA SEN Signing time: 12/14/2022 2:16:25 PM

work of the Lokayukt Authorities is only to investigate into the matter and submit the report before the Government for seeking sanction. It is for the Government to analyse the report; and it is the discretion and the domain of the State Government to grant or not to grant sanction for prosecution. Under no provisions, the State Government can be compelled to grant sanction for prosecution.

8. Counsel appearing for the petitioner could not point out any relevant provisions of law to enable the Lokayukt Authorities to ask for a mandamus to the State Government to grant sanction for prosecution. It is the prerogative of the State Government to consider and decide the factum of grant of sanction.

9. In such circumstances, no relief can be extended to the petitioner.

10. Petition sans merit and is hereby rejected."

3. It is submitted that order passed in Sandeep Kumar Lohani (supra) has been challenged before the Apex Court by the Lokayukta organization.

4. Be that as it may. Since the Coordinate Bench has taken a view and this Court sees no reason to take a different view than the one taken by the Coordinate Bench, the present petition stands dismissed with liberty to the prosecuting agency to revive the same by preferring an appropriate interlocutory application in case any favourable order is passed by the Apex Court.

                             (SHEEL NAGU)                                                   (VIRENDER SINGH)
                                 JUDGE                                                           JUDGE
                           anand




Signature Not Verified
Signed by: ANAND KRISHNA
SEN
Signing time: 12/14/2022
2:16:25 PM
 

 
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