In Brief
An Assistant General Manager at State Bank of India was prosecuted for conspiracy, cheating, forgery and criminal breach of trust in sanctioning loans without proper compliance. He claimed protection under Section 197 of the Criminal Procedure Code, arguing that without sanction declined under the Prevention of Corruption Act, he could not be tried for offences under the Indian Penal Code. The Supreme Court held that bank managers, though public servants, cannot claim Section 197 protection because they are removable without government sanction. Section 197 and Section 19 of the PC Act operate differently. Declining sanction under the PC Act does not bar prosecution for general criminal law offences if the necessary legal nexus exists. The appeal was dismissed; prosecution could proceed for IPC offences.
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