In Brief
Punjab State Warehousing Corporation prosecuted its employee (Godown Assistant) for criminal breach of trust and forgery (Sections 409/467/468/471 IPC). He was convicted and sentenced. The High Court set aside the conviction, holding that as a government corporation employee qualifies as a 'public servant', prosecution required prior sanction under Section 197 CrPC, which was not obtained. The Supreme Court allowed the appeal, holding that sanction under Section 197 is required only when the alleged offence has a reasonable connection with discharge of official duty or was done 'under colour of office'. Misappropriation of entrusted goods is not done in official capacity but merely exploits opportunity from position. Employees of government corporations also do not qualify for Section 197 protection. Trial was valid and conviction restored.
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