Employees of a registered cooperative society are not 'public servants'
Gauhati High Court: Employees of Cooperative Societies Not 'Public Servants' under IPC. Court Dismisses Revision Petition, Upholds Distinction Between Cooperative Societies and Statutory Corporations
In a significant ruling, the Gauhati High Court has upheld a decision distinguishing employees of registered cooperative societies from 'public servants' as defined under Section 21 of the Indian Penal Code (IPC). The judgment came in response to a criminal revision petition filed by Sri Binod Kr. Agarwala, acting as the Liquidator of the Assam State Cooperative Marketing & Consumers Federation Ltd. (M/s Statfed), against a previous decision of the Sessions Judge, Dibrugarh.
The case stemmed from allegations of mismanagement and embezzlement of funds by employees of M/s Statfed, leading to the framing of charges under Section 409 of the IPC, which deals with criminal breach of trust by public servants, bankers, or agents. However, the central question before the court was whether the accused employees could be classified as 'public servants' under the IPC.
Delivering the judgment, Justice Manish Choudhury clarified that employees of registered cooperative societies do not fall within the definition of 'public servants' under Clause 'Twelfth' of Section 21 of the IPC. The court emphasized that cooperative societies are distinct entities governed by the Cooperative Societies Act and are not established by or under a Central, Provincial, or State Act.
The court drew upon precedents set by the Supreme Court in cases such as Dalco Engineering Private Limited v. Satish Prabhakar Padhye and S.S. Dhanoa v. Municipal Corporation, Delhi, which elucidate the difference between statutory corporations and cooperative societies. It was noted that cooperative societies are formed by individuals and governed by state statutes, not directly created by legislative acts.
Despite acknowledging the prima facie case for criminal breach of trust, the court agreed with the Revisional Court's decision to remand the matter to the Trial Court to frame charges under the appropriate provisions of the IPC, excluding Section 409. The court asserted that the trial should proceed expeditiously, given the FIR was filed back in 2008.
The judgment underscored the necessity of clear legal definitions and the importance of adhering to statutory distinctions in criminal proceedings. It also addressed procedural aspects, noting that the issue of abatement due to the reported deaths of two of the accused would be determined by the Trial Court based on presented evidence.
Bottom Line:
Employees of a registered cooperative society are not 'public servants' under Clause 'Twelfth' of Section 21 of the Indian Penal Code, 1860. A cooperative society registered under the Cooperative Societies Act is not a corporation established by or under a Central, Provincial, or State Act.
Statutory provision(s): Indian Penal Code, 1860 Section 21 Clause 'Twelfth', Section 409; Cooperative Societies Act, 1949
Sri Binod Kr. Agarwala v. Sri Ram Borah, (Gauhati) : Law Finder Doc Id # 2785042
