Kerala High Court Upholds Criminal Liability Despite Repayment in Liquor Misappropriation Case
Court dismisses petition to quash proceedings against public servants for misappropriating foreign liquor worth over Rs. 27 lakhs.
In a significant judgment, the Kerala High Court has dismissed a petition to quash criminal proceedings against several public servants accused of misappropriating foreign liquor worth Rs. 27,92,523 from a Kerala State Beverages Corporation outlet. The judgment, delivered by Justice A. Badharudeen on September 24, 2025, reinforces the principle that repayment of misappropriated funds does not absolve criminal liability, emphasizing the need for prosecution and trial.
The petitioners, including P.N. Suresh Kumar, sought quashing of the criminal proceedings under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, arguing that the repayment of the misappropriated amount should nullify the charges against them. The court, however, held that the intentional act of misappropriation was completed prior to the repayment, and therefore, criminal liability remains intact.
The case involves the alleged misappropriation of foreign liquor stock by public servants working at the Muvattupuzha Beverages outlet. The accused are charged under various sections of the Indian Penal Code, including Sections 403, 409, and 420, as well as under the Prevention of Corruption Act, 1988 and its subsequent amendment in 2018.
The prosecution, represented by Special Public Prosecutor Rajesh A, argued that the repayment of the misappropriated amount does not efface the criminal case since the intentional misappropriation was completed before the repayment. The court agreed, noting the significant quantity of liquor misappropriated and the delayed repayment, which did not include any interest for the period of misappropriation.
Justice Badharudeen emphasized that the misappropriation involved a substantial quantity of foreign liquor, suggesting intentional misconduct rather than inadvertent error. The court further stated that the petitioners enjoyed the benefits of the misappropriation between the time of theft and repayment, strengthening the case for prosecution.
This judgment underscores the court's stance that mere repayment of misappropriated funds cannot erase criminal culpability, particularly in cases involving significant misappropriation by public servants. The ruling mandates that the accused face trial to address the charges, reinforcing accountability and the need for legal redress in cases of public sector corruption.
The petition was dismissed, and any interim stay granted by the court was vacated, allowing the prosecution to proceed with framing charges and conducting a trial.
Bottom Line:
Misappropriation of government property—Mere repayment of misappropriated amount at a later stage does not efface the criminal liability—Intentional misappropriation of a large quantity of foreign liquor establishes prima facie culpability—Prosecution and trial are necessary despite repayment.
Statutory provision(s):
Bharatiya Nagarik Suraksha Sanhita, 2023 Section 528, Indian Penal Code Sections 403, 409, 420 r/w Section 34, Prevention of Corruption Act, 1988 Sections 13(1)(c) and 13(2), Prevention of Corruption (Amendment) Act, 2018 Section 13(1)(a)
P.N.Suresh Kumar v. State of Kerala, (Kerala) : Law Finder Doc Id # 2783793
