Page 1 REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

WRIT PETITION (CIVIL) NO. 38 OF 1997

Dr. Subramanian Swamy …… Petitioner

Versus

Director, Central Bureau of Investigation & Anr. …… Respondents

WITH

WRIT PETITION (CIVIL) NO. 21 OF 2004

Centre for Public Interest Litigation …… Petitioner

Versus

Union of India …… Respondent

JUDGMENT

R.M. LODHA, CJI.

Section 6-A of the Delhi Special Police Establishment Act,

1946 (for short, ‘the DSPE Act’), which was inserted by Act 45 of 2003,

reads as under:

“Section 6-A. Approval of Central Government to conduct inquiry or

investigation.- (1) The Delhi Special Police Establishment shall not

conduct any inquiry or investigation into any offence alleged to

have been committed under the Prevention of Corruption Act, 1988

1

Page 2 (49 of 1988) except with the previous approval of the Central

Government where such allegation relates to-

(a) the employees of the Central Government of the Level of

Joint Secretary and above; and

(b) such officers as are appointed by the Central

Government in corporations established by or under any

Central Act, Government companies, societies and local

authorities owned or controlled by that Government.

(2) Notwithstanding anything contained in sub-section (1), no such

approval shall be necessary for cases involving arrest of a person

on the spot on the charge of accepting or attempting to accept any

gratification other than legal remuneration referred to in clause (c)

of the Explanation to section 7 of the Prevention of Corruption Act,

1988 (49 of 1988).”

2. The constitutional validity of Section 6-A is in issue in these

two writ petitions, both filed under Article 32 of the Constitution. Since

Section 6-A came to be inserted by Section 26(c) of the Central Vigilance

Commission Act, 2003 (Act 45 of 2003), the constitutional validity of

Section 26(c) has also been raised. It is not necessary to independently

refer to Section 26(c). Our reference to Section 6-A of the DSPE Act,

wherever necessary, shall be treated as reference to Section 26(c) of the

Act 45 of 2003 as well.

Reference to the Constitution Bench

2

Page 3 3. On February 4, 2005 when these petitions came up for

consideration, the Bench thought that these matters deserved to be heard

by the larger Bench. The full text of the reference order is as follows:

“In these petitions challenge is to the constitutional validity of

Section 6-A of the Delhi Special Police Establishment Act, 1946

(for short, “the Act”). This section was inserted in the Act

w.e.f. 12-9-2003. It, inter alia, provides for obtaining the

previous approval of the Central Government for conduct

of any inquiry or investigation for any offence alleged to have

been committed under the Prevention of Corruption Act, 1988

where allegations relate to officers of the level of Joint Secretary

and above. Before insertion of Section 6-A in the Act,

the requirement to obtain prior approval of the Central Government

was contained in a directive known as “Single Directive” issued by

the Government. The Single Directive was a consolidated set of

instructions issued to the Central Bureau of Investigation (CBI) by

various Ministries/Departments regarding modalities of

initiating an inquiry or registering a case against certain

categories of civil servants. The said directive was stated to have

been issued to protect decision-making-level officers from the

threat and ignominy of malicious and vexatious

inquiries/investigations and to give protection to officers at the

decision-making level and to relieve them of the anxiety from the

likelihood of harassment for taking honest decisions. It was

said that absence of such protection to them could adversely affect

the efficiency and efficacy of these institutions because of the

tendency of such officers to avoid taking any decisions which

could later lead to harassment by any malicious and

vexatious inquiries/investigations.

2. The Single Directive was quashed by this Court in a

judgment delivered on 18-12-1997 (Vineet Narain & Ors. v.

Union of India & Anr. (1998) 1 SCC 226). Within a few

months after Vineet Narain judgment, by the Central Vigilance

Commission Ordinance, 1998 dated 25-8-1998, Section 6-A was

sought to be inserted providing for the previous approval of

the Central Vigilance Commission before investigation of the

officers of the level of Joint Secretary and above. On the

intervention of this Court, this provision was deleted by issue of

another Ordinance promulgated on 27-10-1998. From the date of

the decision in Vineet Narain case and till insertion of Section 6-

A w.e.f. 12-9-2003, there was no requirement of seeking previous

3

Page 4 approval except for a period of two months from 25-8-1998 to

27-10-1998.

3. The validity of Section 6-A has been questioned on the

touchstone of Article 14 of the Constitution. Learned amicus curiae

has contended that the impugned provision is wholly subversive

of independent investigation of culpable bureaucrats and strikes

at the core of rule of law as explained in Vineet Narain case and

the principle of independent, unhampered, unbiased and

efficient investigation. The contention is that Vineet Narain

decision frames a structure by which honest officers could

fearlessly enforce the criminal law and detect corruption

uninfluenced by extraneous political, bureaucratic or other

influences and the result of the impugned legislation is

that the very group of persons, namely, high-ranking

bureaucrats whose misdeeds and illegalities may have to

be inquired into, would decide whether CBI should even start

an inquiry or investigation against them or not. There will be no

confidentiality and insulation of the investigating agency from

political and bureaucratic control and influence because the

approval is to be taken from the Central Government which

would involve leaks and disclosures at every stage. The

very nexus of the criminal-bureaucrat-politician which is subverting

the whole polity would be involved in granting or refusing

prior approval before an inquiry or investigation can take place.

Pointing out that the essence of a police investigation is

skilful inquiry and collection of material and evidence in a

manner by which the potential culpable individuals are not

forewarned, the submission made is that the prior sanction of the

same department would result in indirectly putting to notice the

officers to be investigated before commencement of

investigation. Learned Senior Counsel contends that it is wholly

irrational and arbitrary to protect highly-placed public servants

from inquiry or investigation in the light of the conditions

prevailing in the country and the corruption at high places as

reflected in several judgments of this Court including that of

Vineet Narain. Section 6-A of the Act is wholly arbitrary and

unreasonable and is liable to be struck down being

violative of Article 14 of the Constitution is the

submission of learned amicus curiae.

4. In support of the challenge to the constitutional

validity of the impugned provision, besides observations

made in the three-Judge Bench decision in Vineet Narain

case reliance has also been placed on various decisions

including S.G. Jaisinghani v. Union of India [(1967) 2 SCR 703],

Shrilekha Vidyarthi v. State of U.P. [(1991) 1 SCC 212], Ajay Hasia

v. Khalid Mujib Sehravardi [(1981) 1 SCC 722] and Mardia

4

Page 5 Chemicals Ltd. v. Union of India [(2004) 4 SCC 311] to

emphasize that the absence of arbitrary power is the

first essential of the rule of law upon which our whole constitutional

system is based. In Mardia Chemicals case a three-Judge Bench

held Section 17(2) of the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002 to

be unreasonable and arbitrary and violative of Article 14 of the

Constitution. Section 17(2) provides for condition of deposit

of 75% of the amount before an appeal could be

entertained. The condition has been held to be illusory

and oppressive. Malpe Vishwanath Acharya v. State of

Maharashtra [(1998) 2 SCC 1], again a decision of a three-

Judge Bench, setting aside the decision of the High Court

which upheld the provisions of Sections 5(10)(b), 11(1)

and 12(3) of the Bombay Rents, Hotel and Lodging

House Rates Control Act, 1947 pertaining to standard rent

in petitions where the constitutional validity of those provisions

was challenged on the ground of the same being

arbitrary, unreasonable and consequently ultra vires Article 14 of

the Constitution, has come to the conclusion that the said

provisions are arbitrary and unreasonable.

5. Learned Solicitor General, on the other hand, though very

fairly admitting that the nexus between criminals and some

elements of establishment including politicians and various

sections of bureaucracy has increased and also that there is a

disturbing increase in the level of corruption and these

problems need to be addressed, infractions of the law need to

be investigated, investigations have to be conducted quickly

and effectively without any interference and the

investigative agencies should be allowed to function

without any interference of any kind whatsoever and that

they have to be insulated from any extraneous influences

of any kind, contends that a legislation cannot be struck

down on the ground of arbitrariness or unreasonableness

as such a ground is available only to quash executive

action and orders. Further contention is that even a delegated

legislation cannot be quashed on the ground of mere arbitrariness

and even for quashing such a legislation, manifest arbitrariness is

the requirement of law. In support, reliance has been placed

on observations made in a three-Judge Bench decision in

State of A.P.. v. McDowell & Co. [(1996) 3 SCC 709] that no

enactment can be struck down by just saying that it is arbitrary

or unreasonable and observations made in Khoday Distilleries

Ltd. v. State of Karnataka [1996 (10) SCC 304] that

delegated legislation can be struck down only if there is manifest

arbitrariness.

5

Page 6 6. In short, the moot question is whether arbitrariness and

unreasonableness or manifest arbitrariness and

unreasonableness, being facets of Article 14 of the

Constitution are available or not as grounds to invalidate a

legislation. Both counsel have placed reliance on observations

made in decisions rendered by a Bench of three learned Judges.

7. Further contention of learned Solicitor General is that the

conclusion drawn in Vineet Narain case is erroneous that the

Constitution Bench decision in K. Veeraswami v. Union of India

[(1991) 3 SCC 655] is not an authority for the proposition that in

the case of high officials, requirement of prior

permission/sanction from a higher officer or Head of the

Department is permissible, the submission is that conclusion

reached in para 34 of Vineet Narain decision runs

contrary to observations and findings contained in para 28 of

Veeraswami case.

8. Having regard to the aforesaid, we are of the view that the

matters deserve to be heard by a larger Bench, subject to

the orders of Hon'ble the Chief Justice of India.”

Background of Section 6-A

4. We may first notice the background in which Section 6-A was

inserted in the DSPE Act. In 1993, Vineet Narain approached this Court

under Article 32 of the Constitution of India complaining inertia by the

Central Bureau of Investigation (CBI) in matters where the accusation made

was against high dignitaries. The necessity of monitoring the investigation

by this Court is indicated in paragraph 1 of the judgment

1

, which reads:

“These writ petitions under Article 32 of the Constitution of India

brought in public interest, to begin with, did not appear to have the

potential of escalating to the dimensions they reached or to give rise

to several issues of considerable significance to the implementation

of rule of law, which they have, during their progress. They began as

yet another complaint of inertia by the Central Bureau of Investigation

(CBI) in matters where the accusation made was against high

1

Vineet Narain & Ors. v. Union of India & Anr.; [(1998) 1 SCC 226]

6

Page 7 dignitaries. It was not the only matter of its kind during the recent

past. The primary question was: Whether it is within the domain of

judicial review and it could be an effective instrument for activating

the investigative process which is under the control of the executive?

The focus was on the question, whether any judicial remedy is

available in such a situation? However, as the case progressed, it

required innovation of a procedure within the constitutional scheme

of judicial review to permit intervention by the court to find a solution

to the problem. This case has helped to develop a procedure within

the discipline of law for the conduct of such a proceeding in similar

situations. It has also generated awareness of the need of probity in

public life and provided a mode of enforcement of accountability in

public life. Even though the matter was brought to the court by certain

individuals claiming to represent public interest, yet as the case

progressed, in keeping with the requirement of public interest, the

procedure devised was to appoint the petitioners’ counsel as the

amicus curiae and to make such orders from time to time as were

consistent with public interest. Intervention in the proceedings by

everyone else was shut out but permission was granted to all, who so

desired, to render such assistance as they could, and to provide the

relevant material available with them to the amicus curiae for being

placed before the court for its consideration. In short, the

proceedings in this matter have had great educative value and it

does appear that it has helped in future decision-making and

functioning of the public authorities.”

5. In Vineet Narain

1

, Single Directive No.4.7(3), which contained

certain instructions to CBI regarding modalities of initiating an inquiry or

registering a case against certain categories of civil servants, fell for

consideration. We shall refer to Single Directive No. 4.7(3) at some length a

little later but suffice to say here that this Court struck down Single Directive

No.4.7(3). While doing so, the Court also made certain recommendations in

respect of CBI and Central Vigilance Commission (CVC). One of such

recommendations was to confer statutory status to CVC.

7

Page 8 6. Initially, the Government decided to put the proposed law in

place through an Ordinance so as to comply with the directions of this Court

in Vineet Narain

1

. Later on the Government introduced the CVC Bill, 1998 in

the Lok Sabha on 7.12.1998. The CVC Bill, 1998 was referred to the

Department-related Parliamentary Standing Committee on Home Affairs for

examination and report, which presented its report to the Parliament on

25.2.1999 and made certain recommendations on the CVC Bill, 1998. The

Lok Sabha passed the CVC Bill, 1998 as the CVC Bill, 1999 on 15.3.1999

after adopting the official amendments moved in this regard. However,

before the Bill could be considered and passed by the Rajya Sabha, the

12

th

Lok Sabha was dissolved on 26.4.1999 and, consequently, the CVC

Bill, 1999 lapsed. The CVC Bill was re-introduced with the title “The Central

Vigilance Commission Bill, 2003”. The Bill was passed by both the Houses

of Parliament and received the assent of the President on 11.9.2003. This

is how the Central Vigilance Commission Act, 2003 (for short, ‘Act 45 of

2003’) came to be enacted.

7. Act 45 of 2003 provides for the constitution of a Central

Vigilance Commission to inquire or cause inquiries to be conducted into

offences alleged to have been committed under the Prevention of

Corruption Act, 1988 (for short, ‘PC Act, 1988’) by certain categories of

public servants of the Central Government, corporations established by or

under any Central Act, government companies, societies and local

8

Page 9 authorities owned or controlled by the Central Government and for matters

connected therewith or incidental thereto. Section 26 of the Act 45 of 2003

provides for amendment of DSPE Act and clause (c) thereof enacts that

after Section 6, Section 6-A shall be inserted in the DSPE Act.

8. Section 6-A(1) of the DSPE Act requires approval of the

Central Government to conduct inquiry or investigation where the

allegations of commission of an offence under the PC Act, 1988 relate to

the employees of the Central Government of the level of Joint Secretary

and above.

Genesis of Challenge to Section 6-A

9. On 24.2.1997, the Writ Petition (Civil) No.38/1997 came up for

admission before a three-Judge Bench. On hearing the petitioner, the writ

petition was entertained but it was confined to relief in paragraph 12(a)

only. The notice was directed to be issued to respondent No.1 (Director,

CBI) and respondent No.5 (Union of India through Cabinet Secretary) and

other respondents were deleted from the array of parties. The Court on that

date requested Shri Anil B. Divan, learned senior counsel to appear as

amicus curiae in the case. It is not necessary to narrate the proceedings

which took place on various dates. It may, however, be mentioned that on

5.4.2002 when the matter was mentioned before the Bench, learned amicus

curiae expressed his concern regarding the attempt to restore the Single

9

Page 10 Directive, which was struck down in Vineet Narain

1

, in the proposed

legislation. Thereupon, the matter was adjourned and Court requested the

presence of learned Attorney General on 19.4.2002. On 19.4.2002, the

matter was ordered to be listed in September, 2002. As noted above, on

11.9.2003, Act 45 of 2003 received Presidential assent and Section 6-A

was inserted in the DSPE Act.

10. On 19.1.2004, Writ Petition (C) No.21/2004 was ordered to be

listed along with Writ Petition (C) No.38/1997. On 23.1.2004, notice was

issued in Writ Petition (C) No. 21/2004. In this writ petition, the counter was

filed by the Union on 7.4.2004 and rejoinder affidavit was filed by the

petitioner.

11. We have heard Mr. Anil B. Divan, learned senior counsel and

amicus curiae in Writ Petition (C) No.38/1997 and Mr. Prashant Bhushan,

learned counsel for the petitioner in Writ Petition (C) No.21/2004. In one

matter, Mr. L. Nageswara Rao, learned Additional Solicitor General

appeared for Union of India while in the other, Mr. K.V. Viswanathan,

learned Additional Solicitor General appeared on behalf of Union of India.

We have heard both of them on behalf of the Union of India. We have also

heard Mr. Gopal Sankaranarayanan, learned counsel for the intervenor.

Submissions of Mr. Anil B. Divan

10

Page 11 12. Mr. Anil B. Divan, learned amicus curiae argues that Section 6-

A is an impediment to the rule of law and violative of Article 14, which is

part of the rule of law; that the impugned provision creates a privileged

class and thereby subverts the normal investigative process and violates

the fundamental right(s) under Article 14 of every citizen. He submits that if

the impugned provision is replicated at the State level and provision of

‘previous approval’ by respective State Governments is required, then the

rule of law would completely collapse in the whole of India and no high level

corruption would be investigated or punished. He relies upon decision of

this Court in Vineet Narain

1.

He also relies upon the decision in

I.R. Coelho

2

in support of the proposition that Article 14 is a part of the rule of law and it

is the duty of the judiciary to enforce the rule of law.

13. According to learned amicus curiae, Section 6-A directly

presents an illegal impediment to the insulation of CBI and undermines the

independence of CBI to hold a preliminary enquiry (PE) or investigation.

Citing the judgments of this Court in Centre for Public Interest Litigation (2G

Spectrum case)

3

and Manohar Lal Sharma

4

following Vineet Narain

1

,

learned amicus curiae submits that trend of these judgments is to preserve

the rule of law by insulating the CBI from executive influence which could

derail and result in inaction in enforcing the criminal law against high level

corruption. Learned amicus curiae highlighted that there was no

2

I.R. Coelho v. State of Tamil Nadu; [(2007) 2 SCC 1].

3

Centre for Public Interest Litigation & Ors. v. Union of India & Ors.; [(2012) 3 SCC 1].

4

Manohar Lal Sharma v. Principal Secretary & Ors.; [(2014) 2 SCC 532].

11

Page 12 requirement of previous approval as contained in the impugned provisions

between 18.12.1997 (the date of Vineet Narain

1

judgment striking down the

Single Directive) and 11.9.2003 (when CVC Act came into force) except the

period between 25.8.1998 and 27.10.1998 when the CVC Ordinance, 1998

was in force and till the deletions by CVC Amendment Ordinance, 1998. He

referred to N.N. Vohra Committee report which paints a frightening picture

of criminal-bureaucratic-political nexus – a network of high level corruption

– and submitted that the impugned provision puts this nexus in a position to

block inquiry and investigation by CBI by conferring the power of previous

approval on the Central Government.

14. Mr. Anil B. Divan, learned amicus curiae wants us to take

judicial notice of the fact that high level bureaucratic corruption goes hand

in hand, on many occasions, with political corruption at the highest level.

This very group of high ranking bureaucrats, whose misconduct and

criminality, if any, requires to be first inquired into and thereafter

investigated, can thwart, defeat and impair this exercise. In substance, the

potential accused would decide whether or not their conduct should be

inquired into. He argues that the essence of skillful and effective police

investigation is by collection of evidence and material secretly, without

leakage so that the potential accused is not forewarned leading to

destruction or tempering of evidence and witnesses. Such investigation is

compromised by the impugned provision, viz., Section 6-A of the DSPE Act.

12

Page 13 The requirement of previous approval in the impugned provision would

mean leakages as well as breach of confidentiality and would be wholly

destructive of an efficient investigation. The provision, such as Section 6-A,

offers an impregnable shield (except when there is a court monitored

investigation) to the criminal-bureaucratic-political nexus. If the CBI is not

even allowed to verify complaints by preliminary enquiry, how can the case

move forward? In such a situation, the very commencement of enquiry /

investigation is thwarted and delayed. Moreover, a preliminary enquiry is

intended to ascertain whether a prima facie case for investigation is made

out or not. If CBI is prevented from holding a preliminary enquiry, it will not

be able to even gather relevant material for the purpose of obtaining

previous approval.

15. Learned amicus curiae submits that for judging the validity of

classification or reasonableness or arbitrariness of State action, the Court is

entitled to take notice of conditions prevailing from time to time. He

referred to certain portions of the N.N. Vohra Committee report, 2G

Spectrum case

3

and the facts of a case before Delhi High Court entitled

‘Telecom Watchdog’

5

and the case of M. Gopalakrishnan, Chairman and

Managing Director (CMD of Indian Bank). Learned amicus curiae also relied

upon decisions of this Court in V.G. Row

6

and D.S. Nakara

7

.

5

Telecom Watchdog v. Union of India; (Delhi High Court W.P.(C) No. 9338/2009).

6

State of Madras v. V.G. Row; [1952 SCR 597].

7

D.S. Nakara and Ors. v. Union of India; [(1983) 1 SCC 305].

13

Page 14 16. It is submitted by the learned amicus curiae that pervasive

corruption adversely affects welfare and other activities and expenditures of

the state. Consequently, the rights of Indian citizens not only under Article

14 but also under Article 21 are violated. In this regard, he has relied upon

the observations made by this Court in Vineet Narain

1

, Ram Singh

8

,

Subramanian Swamy

9

, R.A. Mehta

10

, Balakrishna Dattatrya Kumbhar

11

and

In re. Special Courts Bill, 1978

12

.

17. Learned amicus curiae submits that Section 6-A confers on the

Central Government unguided, unfettered and unbridled power and the

provision is manifestly arbitrary, entirely perverse and patently

unreasonable. He relies upon the decisions of this Court in Travancore

Chemicals and Manufacturing Co.

13

, Krishna Mohan (P) Ltd.

14

, Canara

Bank

15

and Nergesh Meerza

16

.

18. It is vehemently contended by the learned amicus curiae that

the classification as contained in Section 6-A creating a privileged class of

the government officers of the level of Joint Secretary and above level and

certain officials in public sector undertakings, etc. is directly destructive and

runs counter to the whole object and reason of the PC Act, 1988 read with

8

State of M.P. and Ors. v. Ram Singh; [(2000) 5 SCC 88].

9

Subramanian Swamy v. Manmohan Singh and Anr.; [(2012) 3 SCC 64].

10

State of Gujarat and Anr. v. Justice R.A. Mehta(Retd.) and Ors.; [(2013) 3 SCC 1].

11

State of Maharashtra v. Balakrishna Dattatrya Kumbhar; [(2012) 12 SCC 384].

12

Special Courts Bill, 1978, In re,; [(1979) 1 SCC 380].

13

State of Kerala and Ors. v. Travancore Chemicals and Manufacturing Co. and Anr.; [(1998) 8 SCC

188].

14

Krishna Mohan (P) Ltd. v. Municipal Corporation of Delhi and Ors.; [(2003) 7 SCC 151].

15

District Registrar and Collector, Hyderabad and Anr. v. Canara Bank and Ors.; [(2005) 1 SCC 496].

16

Air India v. Nergesh Meerza and Ors.; [(1981) 4 SCC 335].

14

Page 15 the DSPE Act and undermines the object of detecting and punishing high

level corruption. In this regard, learned amicus curiae referred to protection

given to Government officials under Section 197 of the Code of Criminal

Procedure (Cr.P.C.) and under Section 19 of the PC Act, 1988. He argues

that the well-settled two tests: (i) that classification must be founded on

intelligible differentia and (ii) that differentia must have a rational relation

with the object sought to be achieved by the legislation, are not satisfied by

Section 6-A. A privileged class of Central Government employees has

been created inasmuch as the protection offered to the category of the

government officers of the level of Joint Secretary and above regarding

previous approval does not extend to: (a) official / employees who are not

employees of the Central Government, (b) employees of the Central

Government below Joint Secretary level, (c) employees of Joint Secretary

level and above in the states, (d) enquiry and investigation of offences

which are not covered by the PC Act, 1988, and (e) other individuals

including ministers, legislators and private sector employees. Learned

amicus curiae relies upon the decision of this Court in Vithal Rao

17

.

Submissions of Mr. Prashant Bhushan for Centre for Public Interest

Litigation (CPIL-petitioner)

19. Mr. Prashant Bhushan, learned counsel for the petitioner in the

connected writ petition filed by Centre for Public Interest Litigation (CPIL)

17

Nagpur Improvement Trust and Anr. v. Vithal Rao and Ors.; [(1973) 1 SCC 500].

15

Page 16 has adopted the arguments of the learned amicus curiae. He submits that

Section 6-A makes criminal investigation against a certain class of public

servants unworkable and it completely militates against the rule of law. He

referred to the United Nations document entitled “United Nations

Convention Against Corruption” and submitted that Section 6-A of the

DSPE Act interdicts enquiry or investigation in respect of certain class of

officers and puts direct hindrance in combating corruption and, therefore,

the provision is violative of Article 14 of the Constitution.

Submissions of Mr. Gopal Sankaranarayanan (intervenor)

20. Mr. Gopal Sankaranarayanan, appearing on behalf of

intervenor submits that Section 6-A of the DSPE Act breaches the basic

feature of rule of law. He argues that the basic structure test can be applied

to the statutes as well. By enactment of Section 6-A, the rule of law has

suffered a two-fold violation: (i) resurrection of the single directive in the

form of legislation without in any way removing the basis of the Vineet

Narain

1

judgment, and (ii) impediment of the due process (criminal

investigation) by imposing a condition at the threshold. In this regard, he

has relied upon decisions of this Court in State of Karnataka

18

, L. Chandra

18

State of Karnataka v. Union of India and Anr.; [(1977) 4 SCC 608].

16

Page 17 Kumar

19

, Kuldip Nayar

20

, Madras Bar Association

21

, K.T. Plantation (P)

Ltd.

22

, G.C. Kanungo

23

, Indra Sawhney (2)

24

, and I.R. Coelho

2

.

21. Mr. Gopal Sankaranarayanan, learned counsel for the

intervenor, also submits that there is an unreasonable classification among

policemen and among the accused and, in any case, the classification even

if valid has no nexus with the object sought to be achieved by Section 6-A,

which is apparently to protect the officers concerned. According to learned

counsel, Section 6-A is also inconsistent with the Cr.P.C. In this regard, he

refers to CBI Manual, Sections 19 and 22 of the PC Act, 1988 and Section

197 of Cr.P.C.

Submissions of Mr. L. Nageswara Rao, ASG.

22. Mr. L. Nageswara Rao, learned Additional Solicitor General

stoutly defends Section 6-A. He submits that the rationale behind Section 6-

A of the DSPE Act can be seen in the reply to the debate in Parliament on

the Central Vigilance Commission Bill by the then Union Minister of Law

and Justice, Mr. Arun Jaitley. The provision is defended on the ground that

those who are in decision making positions, those who have to exercise

discretion and those who have to take vital decisions could become target

of frivolous complaints and need to be protected. Therefore, some

19

L. Chandra Kumar v. Union of India and Ors.; [(1997) 3 SCC 261].

20

Kuldip Nayar and Ors. v. Union of India and Ors.; [(2006) 7 SCC 1].

21

Union of India v. R. Gandhi, President, Madras Bar Association; [(2010) 11 SCC 1].

22

K.T. Plantation (P) Ltd. & Anr. v. State of Karnataka; [(2011) 9 SCC 1].

23

G.C. Kanungo v. State of Orissa; [(1995) 5 SCC 96].

24

Indra Sawhney (2) v. Union of India and Ors.; [(2000) 1 SCC 168].

17

Page 18 screening mechanism must be put into place whereby serious complaints

would be investigated and frivolous complaints can be thrown out. If such

protection is not given to senior decision makers, anyone can file a

complaint and the CBI or the police can raid the houses of such senior

officers. This may affect governance inasmuch as instead of tendering

honest advice to political executives, the senior officers at the decision-

making level would only give safe and non-committal advice. He argues

that the object of Section 6-A is to provide screening mechanism to filter out

frivolous or motivated investigation that could be initiated against senior

officers to protect them from harassment and to enable them to take

decision without fear. In this regard, the legal principles enunciated in K.

Veeraswami

25

were strongly pressed into service by Mr. L. Nageswara Rao.

23. It is argued by the learned Additional Solicitor General that

Section 6-A is not an absolute bar because it does not prohibit investigation

against senior government servants as such. It only provides a filter or pre-

check so that the Government can ensure that senior officers at decision-

making level are not subjected to unwarranted harassment.

24. Emphasizing that the Central Government is committed to

weeding out vice of corruption, learned Additional Solicitor General submits

that requests for approval under Section 6-A are processed expeditiously

after the Government of India had constituted a Group of Ministers to

25

K. Veeraswami v. Union of India and Ors.; [(1991) 3 SCC 655].

18

Page 19 consider certain measures that could be taken by Government to tackle

corruption and the Group of Ministers suggested the measures to ensure

that the requests received from CBI under Section 6-A are examined on

priority and with objectivity.

25. Mr. L. Nageswara Rao, learned Additional Solicitor General

submits that arbitrariness and unreasonableness cannot by themselves be

a ground to strike down legislation. With reference to the decision of this

Court in E.P. Royappa

26

he argues that while proposing a new dimension of

arbitrariness as an anti-thesis to equality in Article 14, the Court used

arbitrariness to strike down administrative action and not as a ground to test

legislations. He submits that in Maneka Gandhi

27

the Court has not held that

arbitrariness by itself is a ground for striking down legislations under Article

14. Ajay Hasia

28

, learned Additional Solicitor General contends, also does

not make arbitrariness a ground to strike down legislation. Distinguishing

Malpe Vishwanath Acharya

29

, he submits that this Court used the

classification test to hold legislation to be arbitrary and the provision of

standard rent in Bombay Rent Control Act was struck down as having

become unreasonable due to passage of time. Learned Additional Solicitor

General also distinguished Mardia Chemicals Ltd

30

. He vehemently

contends that Courts cannot strike down legislations for being arbitrary and

26

E.P. Royappa v. State of T.N. and Anr.; [(1974) 4 SCC 3]

27

Maneka Gandhi v. Union of India and Anr.; [(1978) 1 SCC 248].

28

Ajay Hasia and Ors. v. Khalid Mujib Sehravardi and Ors.; [(1981) 1 SCC 722].

29

Malpe Vishwanath Acharya and Ors. v. State of Maharashtra and Anr.; [(1998) 2 SCC 1]

30

Mardia Chemicals Ltd. and Ors. v. Union of India and Ors.; [(2004) 4 SCC 311].

19

Page 20 unreasonable so as to substitute their own wisdom for that of the

legislature.

26. Mr. L. Nageswara Rao submits that wisdom of legislature

cannot be gone into for testing validity of a legislation and, apart from

constitutional limitations, no law can be struck down on the ground that it is

unreasonable or unjust. In this regard, he relies upon Kesavananda

Bharati

31

. He also referred to In re. Special Courts Bill, 1978

12

, which

explained the principles enshrined in Article 14. In support of principle that

legislations can be declared invalid or unconstitutional only on two grounds:

(a) lack of legislative competence, and (b) violation of any fundamental

rights or any provision of the Constitution, learned Additional Solicitor

General relies upon Kuldip Nayar

20

. He also relies upon Ashoka Kumar

Thakur

32

in support of the proposition that legislation cannot be challenged

simply on the ground of unreasonableness as that by itself does not

constitute a ground. He submits that a Constitution Bench in K.T. Plantation

(P) Ltd.

22

has held that plea of unreasonableness, arbitrariness,

proportionality, etc., always raises an element of subjectivity on which Court

cannot strike down a statute or a statutory provision. Unless a constitutional

infirmity is pointed out, a legislation cannot be struck down by just using the

word ‘arbitrary’. In this regard, he heavily relies upon the decisions of this

31

His Holiness Kesavananda Bharati Sripadagalvaru v. State of Kerala and Anr.; [(1973) 4 SCC 225].

32

Ashoka Kumar Thakur v. Union of India and Ors.; [(2008) 6 SCC 1].

20

Page 21 Court in In re. Natural Resources Allocation

33

, McDowell

34

and Rakesh

Kohli

35

. The decision of the US Supreme Court in Heller

36

is also cited by

the learned Additional Solicitor General in support of the proposition that

Court should not sit as super legislature over the wisdom or desirability of

legislative policy.

27. Mr. L. Nageswara Rao, learned Additional Solicitor General

argues that rule of law cannot be a ground for invalidating legislations

without reference to the Constitution. He submits that rule of law is not a

concept above the Constitution. Relying upon Indira Nehru Gandhi

37

,

learned Additional Solicitor General argues that meaning and constituent

elements of rule of law must be gathered from the enacting provisions of

the Constitution; vesting discretionary powers in the Government is not

contrary to the rule of law. Moreover, he submits that exceptions to the

procedure in Cr.P.C. cannot be violative of Articles 14 and 21 and such

exceptions cannot be termed as violating the rule of law. In this regard,

learned Additional Solicitor General refers to Section 197 of Cr.P.C. and

relies upon Matajog Dobey

38

, wherein this Court upheld constitutional

validity of Section 197 and held that the said provision was not violative of

Article 14. He also referred to Section 187 of Cr.P.C., Section 6 of the

33

Natural Resources Allocation, In re, Special Reference No. 1 of 2012; [(2012) 10 SCC 1].

34

State of A.P. and Ors. v. McDowell & Co. and Ors.; [(1996) 3 SCC 709].

35

State of M.P. v. Rakesh Kohli and Anr.; [(2012) 6 SCC 312].

36

Heller v. Doe; [509 U.S. 312 (1993)].

37

Indira Nehru Gandhi v. Raj Narain [1975 (Suppl.) SCC 1]

38

Matajog Dobey v. H. C. Bhari; [(1955) 2 SCR 925]

21

Page 22 Armed Forces (Special Provisions) Act, 1958 and Section 187-A of the Sea

Customs Act and submitted that these provisions have been held to be

constitutionally valid by this Court. Naga People’s Movement of Human

Rights

39

was cited by learned Additional Solicitor General wherein Section

6 of the Armed Forces (Special Provisions) Act, 1958 was held

constitutional and Manhar Lal Bhogilal

40

was cited wherein Section 187-A

of the Sea Customs Act was held valid. Learned Additional Solicitor

General has also referred to Section 42 of the Food Safety and Standards

Act, 2006, Section 50 of the Prevention of Terrorism Act, 2002, Section 12

of the Suppression of Unlawful Acts Against Safety Of Maritime Navigation

And Fixed Platforms On Continental Shelf Act, 2002, Section 23 of the

Maharashtra Control of Organised Crime Act, 1999, Section 45 of the

Unlawful Activities (Prevention) Act, 1967, Section 20-A of the Terrorist and

Disruptive Activities (Prevention) Act, 1987, Section 137 of the Customs

Act, 1962, Section 11 of the Central Sales Tax Act, 1956, Section 7 of the

Explosive Substances Act, 1908, Section 20 of the Prevention of Food

Adulteration Act, 1954, Section 23 of Lokpal and Lokayuktas Act, 2013,

Section 11 of Cotton Ginning and Pressing Factories Act, 1925, Section 12

of Andhra Pradesh Land Grabbing (Prohibition) Act, 1982, Section 16 of

Gujarat Electricity Supply Undertakings (Acquisition) Act, 1969, Section 24

of Karnataka Control of Organized Crimes Act, 2000 and Section 9 of Bihar

Non-Government Educational Institution (Taking Over) Act, 1988 to

39

Naga People’s Movement of Human Rights v. Union of India;[(1998) 2 SCC 109]

40

Manhar Lal Bhogilal Shah v. State of Maharashtra; [(1971) 2 SCC 119]

22

Page 23 demonstrate that there are large number of provisions where permission of

the Government is required before taking cognizance or for institution of an

offence.

28. Learned Additional Solicitor General submits that Section 6-A

satisfies the test of reasonable classification. The public servants of the

level of Joint Secretary and above take policy decisions and, therefore,

there is an intelligible differentia. As they take policy decisions, there is a

need to protect them from frivolous inquiries and investigation so that policy

making does not suffer. Thus, there is rational nexus with the object sought

to be achieved. In this regard, learned Additional Solicitor General has

relied upon the decisions of this Court in Ram Krishna Dalmia

41

, Union of

India

42

and Re: Special Courts Bill, 1978

12

. He also referred to the

proceedings of the Joint Parliamentary Committee, Law Minister’s Speech,

the Government of India (Transaction of Business) Rules and the Central

Secretariat Manual of Procedure.

29. Mr. L. Nageswara Rao submits that conferment of unbridled /

un-canalized power on the executive cannot be a ground for striking down

legislation as being violative of Article 14. Mere possibility of abuse of

power cannot invalidate a law. He cited the judgments of this Court in Re

41

Ram Krishna Dalmia v. Justice S.R. Tendolkar & Ors.; [1959 SCR 279]

42

Union of India & Ors. v. No.664950 IM Havildar/ Clerk SC Bagari; [(1999) 3 SCC 709]

23

Page 24 Special Courts Bill, 1978

12

, N.B. Khare

43

, Mafatlal Industries

44

and Sushil

Kumar Sharma

45

.

30. Learned Additional Solicitor General submits that conferment

of power on high authority reduces the possibility of its abuse to minimum.

In support of this submission, learned Additional Solicitor General relies

upon the decision of this Court in Maneka Gandhi

27

, Matajog Dubey

38

, V.C.

Shukla

46

and V.C.Shukla (IInd)

47

. He also submits that absence of

guidelines can only make the exercise of power susceptible to challenge

and not the legislation. In this regard, Pannalal Binjraj

48

and Jyoti Pershad

49

are cited by him.

Submissions of Mr. K.V. Viswanathan, ASG

31. Mr. K.V. Viswanathan, learned Additional Solicitor General

submits that there is presumption of constitutionality and mutual respect

inherent in doctrine of separation of powers. He relies upon Bihar Distillery

Ltd.

50

.

32. Mr. K.V. Viswanathan, learned Additional Solicitor General

referred to Sections 7, 11 and 13 of the PC Act, 1988 in order to show that

all these provisions relate to discharge of official functions. The officers

43

N.B.Khare (Dr.) v. State of Delhi;[1950 SCR 519]

44

Mafatlal Industries Ltd. & Ors. v. Union of India & Ors.; [(1997) 5 SCC 536]

45

Sushil Kumar Sharma v. Union of India & Ors.; [(2005) 6 SCC 281]

46

V.C. Shukla v. State through CBI; [1980 Supp SCC 92]

47

V.C. Shukla v. State (Delhi Administration); [1980 Supp SCC 249]

48

Pannalal Binjraj & Anr. etc., etc. v. Union of India & Ors.; [1957 SCR 233]

49

Jyoti Pershad v. Administrator for the Union Territory of Delhi & Ors. [(1962) 2 SCR 125]

50

State of Bihar & Ors. v. Bihar Distillery Ltd. & Ors.;[(1997) 2 SCC 453]

24

Page 25 above the Joint Secretary level are bestowed with crucial decision making

responsibilities. Citing Kripalu Shankar

51

and the speech of the then

Minister of Law and Justice, he submits that people in decision making

process need to be given an environment to take decisions without any

undue extraneous pressure. He relies upon P. Sirajuddin

52

to highlight the

observations of this Court that lodging of FIR against a government official

especially, one who occupies top position in a department, even if

baseless, would do incalculable harm not only to the officer in particular, but

to the department he belongs to, in general.

33. Mr. K.V. Viswanathan has highlighted that corruption has two

aspects: (a) aspect related to decision making – abuse of position,

pecuniary loss to the Government etc. and (b) aspect of illegal pecuniary

gain – bribery etc. That abuse of position in order to come within the

mischief of corruption must necessarily be dishonest so that it may be

proved that the officer caused deliberate loss to the department. Mere

violation of codal provisions, or ordinary norms of procedural behaviour

does not amount to corruption. He cites decisions of this Court in S.P.

Bhatnagar

53

, Major S. K. Kale

54

, C. Chenga Reddy

55

and Abdulla

Mohammed Pagarkar

56

.

51

State of Bihar & Ors. v. Kripalu Shankar & Ors.; [(1987) 3 SCC 34]

52

P. Sirajuddin, etc. v. State of Madras, etc.; [(1970) 1 SCC 595]

53

S.P. Bhatnagar v. State of Maharashtra; [(1979) 1 SCC 535]

54

Major S. K. Kale v. State of Maharashtra; [(1977) 2 SCC 394]

55

C. Chenga Reddy & Ors. v. State of A.P.; [(1996) 10 SCC 193]

56

Abdulla Mohammed Pagarkar v. State (UT of Goa, Daman & Diu); [(1980) 3 SCC 110]

25

Page 26 34. Learned Additional Solicitor General submits that the State is

the first victim of corruption and the executive is in the best position to

adjudge whether it has been a victim of corruption. Section 6-A has been

enacted to protect the decision making process of the executive from undue

harassment and exercise of police powers by CBI. He cites the judgment of

this Court in A.R. Antulay

57

.

35. Mr. K.V. Viswanathan has referred to other provisions under

law providing for the aggrieved authority to take a decision whether the

offence has been made out or not. In this regard, he has invited our

attention to Section 195 of Cr.P.C. and the decision of this Court in Patel

Laljibhai Somabhai

58

. He also referred to Section 340 of Cr.P.C. which

allows the court to adjudge whether perjury was committed, and if it was,

then whether it required prosecution. He relies upon the decision of this

Court in Iqbal Singh Marwah

59

.

36. Citing Manohar Lal Sharma

4

, learned Additional Solicitor

General submits that even in a court monitored investigation, the concerned

officer could approach the concerned court for an opportunity to be heard.

Moreover, in Manohar Lal Sharma

4

,

this court has noticed the office

memorandum dated 26.09.2011 approving the

recommendations made by

the Group of Ministers which provides inter alia for the concerned authority

57

R.S. Nayak v. A.R. Antulay; [(1984) 2 SCC 183]

58

Patel Laljibhai Somabhai v. State of Gujarat [(1971) 2 SCC 376]

59

Iqbal Singh Marwah & Anr. v. Meenakshi Marwah & Anr.; [(2005) 4 SCC 370]

26

Page 27 to give reasons for granting/rejecting sanction under Section 6-A. He

submits that when there is denial of sanction order under Section 6-A, such

order of the Central Government could be challenged in a writ petition

before a High Court. He says that United Nations recognizes such a

protection as Section 6-A in Article 30 of the UN Convention against

corruption.

Principles applicable to Article 14

37. Article 14 reads:

“14. Equality before law.—The State shall not deny to any

person equality before the law or the equal protection of the

laws within the territory of India.”

38. The first part of Article 14, which was adopted from the Irish

Constitution, is a declaration of equality of the civil rights of all persons

within the territories of India. It enshrines a basic principle of

republicanism. The second part, which is a corollary of the first and is

based on the last clause of the first section of the Fourteenth Amendment

of the American Constitution, enjoins that equal protection shall be secured

to all such persons in the enjoyment of their rights and liberties without

discrimination of favouritism. It is a pledge of the protection of equal laws,

that is, laws that operate alike on all persons under like circumstances

12

.

39. Article 14 of the Constitution incorporates concept of equality

and equal protection of laws. The provisions of Article 14 have engaged

27

Page 28 the attention of this Court from time to time. The plethora of cases dealing

with Article 14 has culled out principles applicable to aspects which

commonly arise under this Article. Among those, may be mentioned, the

decisions of this Court in Chiranjit Lal Chowdhuri

60

, F.N. Balsara

61

, Anwar

Ali Sarkar

62

, Kathi Raning Rawat

63

, Lachmandas Kewalram Ahuja

64

, Syed

Qasim Razvi

65

, Habeeb Mohamed

66

, Kedar Nath Bajoria

67

and innovated to

even associate the members of this Court to contribute their V.M. Syed

Mohammad & Company

68

. The most of the above decisions were

considered in Budhan Choudhry

69

. This Court exposited the ambit and

scope of Article 14 in Budhan Choudhry

69

as follows:

“It is now well-established that while article 14 forbids class

legislation, it does not forbid reasonable classification for the

purposes of legislation. In order, however, to pass the test of

permissible classification two conditions must be fulfilled, namely,

(i) that the classification must be founded on an intelligible

differentia which distinguishes persons or things that are grouped

together from others left out of the group, and (ii) that differentia

must have a rational relation to the object sought to be achieved by

the statute in question. The classification may be founded on

different bases; namely, geographical, or according to objects or

occupations or the like. What is necessary is that there must be a

nexus between the basis of classification and the object of the Act

under consideration. It is also well-established by the decisions of

this Court that article 14 condemns discrimination not only by a

substantive law but also by a law of procedure.”

60

Chiranjit Lal Chowdhuri v. Union of India & Ors.; [(1950) SCR 869]

61

State of Bombay & Anr. v. F. N. Balsara; [(1951) SCR 682]

62

State of West Bengal v. Anwar Ali Sarkar[(1952) SCR 284]

63

Kathi Raning Rawat v. State of Saurashtra [1952 SCR 435]

64

Lachmandas Kewalram Ahuja v. State of Bombay [1952 SCR 710]

65

Syed Qasim Razvi v. State of Hyderabad & Ors. [(1953) 4 SCR 589)

66

Habeeb Mohamed v. State of Hyderabad [1953 SCR 661]

67

Kedar Nath Bajoria v. State of West Bengal [(1954) SCR 30]

68

V.M. Syed Mohammad & Company v. State of Andhra Pradesh [(1954) SCR 1117]

69

Budhan Choudhry & Ors. v. State of Bihar [(1955) 1 SCR 1045]

28

Page 29 40. In Ram Krishna Dalmia

41

, the Constitution Bench of five

Judges further culled out the following principles enunciated in the above

cases -

“(a) that a law may be constitutional even though it relates to a

single individual if, on account of some special circumstances or

reasons applicable to him and not applicable to others, that single

individual may be treated as a class by himself;

(b) that there is always a presumption in favour of the

constitutionality of an enactment and the burden is upon him who

attacks it to show that there has been a clear transgression of the

constitutional principles;

(c) that it must be presumed that the legislature understands

and correctly appreciates the need of its own people, that its laws

are directed to problems made manifest by experience and that its

discriminations are based on adequate grounds;

(d) that the legislature is free to recognise degrees of harm and

may confine its restrictions to those cases where the need is

deemed to be the clearest;

(e) that in order to sustain the presumption of constitutionality

the court may take into consideration matters of common

knowledge, matters of common report, the history of the times and

may assume every state of facts which can be conceived existing

at the time of legislation; and

(f) that while good faith and knowledge of the existing conditions

on the part of a legislature are to be presumed, if there is nothing

on the face of the law or the surrounding circumstances brought to

the notice of the court on which the classification may reasonably

be regarded as based, the presumption of constitutionality cannot

be carried to the extent of always holding that there must be some

undisclosed and unknown reasons for subjecting certain

individuals or corporations to hostile or discriminating legislation.”

41. In Ram Krishna Dalmia

41

, it was emphasized that the above

principles will have to be constantly borne in mind by the court when it is

29

Page 30 called upon to adjudge the constitutionality of any particular law attacked

as discriminatory and violative of the equal protection of laws.

42. Having culled out the above principles, the Constitution Bench

in Ram Krishna Dalmia

41

, further observed that statute which may come up

for consideration on the question of its validity under Article 14 of the

Constitution may be placed in one or other of the following five classes:

“(i) A statute may itself indicate the persons or things to whom

its provisions are intended to apply and the basis of the

classification of such persons or things may appear on the face of

the statute or may be gathered from the surrounding circumstances

known to or brought to the notice of the court. In determining the

validity or otherwise of such a statute the court has to examine

whether such classification is or can be reasonably regarded as

based upon some differentia which distinguishes such persons or

things grouped together from those left out of the group and

whether such differentia has a reasonable relation to the object

sought to be achieved by the statute, no matter whether the

provisions of the statute are intended to apply only to a particular

person or thing or only to a certain class of persons or things.

Where the court finds that the classification satisfies the tests, the

court will uphold the validity of the law.

(ii) A statute may direct its provisions against one individual

person or thing or to several individual persons or things but no

reasonable basis of classification may appear on the face of it or

be deducible from the surrounding circumstances, or matters of

common knowledge. In such a case the court will strike down the

law as an instance of naked discrimination.

(iii) A statute may not make any classification of the persons or

things for the purpose of applying its provisions but may leave it to

the discretion of the Government to select and classify persons or

things to whom its provisions are to apply. In determining the

question of the validity or otherwise of such a statute the court will

not strike down the law out of hand only because no classification

appears on its face or because a discretion is given to the

Government to make the selection or classification but will go on to

30

Page 31 examine and ascertain if the statute has laid down any principle or

policy for the guidance of the exercise of discretion by the

Government in the matter of the selection or classification. After

such scrutiny the court will strike down the statute if it does not lay

down any principle or policy for guiding the exercise of discretion

by the Government in the matter of selection or classification, on

the ground that the statute provides for the delegation of arbitrary

and uncontrolled power to the Government so as to enable it to

discriminate between persons or things similarly situate and that,

therefore, the discrimination is inherent in the statute itself. In such

a case the court will strike down both the law as well as the

executive action taken under such law.

(iv) A statute may not make a classification of the persons or

things for the purpose of applying its provisions and may leave it to

the discretion of the Government to select and classify the persons

or things to whom its provisions are to apply but may at the same

time lay down a policy or principle for the guidance of the exercise

of discretion by the Government in the matter of such selection or

classification.

(v) A statute may not make a classification of the persons or

things to whom their provisions are intended to apply and leave it

to the discretion of the Government to select or classify the

persons or things for applying those provisions according to the

policy or the principle laid down by the statute itself for guidance of

the exercise of discretion by the Government in the matter of such

selection or classification. If the Government in making the

selection or classification does not proceed on or follow such policy

or principle, then in such a case the executive action but not the

statute should be condemned as unconstitutional.”

43. In Vithal Rao

17

, the five-Judge Constitution Bench had an

occasion to consider the test of reasonableness under Article 14 of the

Constitution. It noted that the State can make a reasonable classification

for the purpose of legislation and that the classification in order to be

reasonable must satisfy two tests: (i) the classification must be founded on

intelligible differentia and (ii) the differentia must have a rational relation

with the object sought to be achieved by the legislation in question. The

31

Page 32 Court emphasized that in this regard object itself should be lawful and it

cannot be discriminatory. If the object is to discriminate against one

section of the minority, the discrimination cannot be justified on the ground

that there is a reasonable classification because it has rational relation to

the object sought to be achieved.

44. The constitutionality of Special Courts Bill, 1978 came up for

consideration in re. Special Courts Bill, 1978

12

as the President of India

made a reference to this Court under Article 143(1) of the Constitution for

consideration of the question whether the “Special Courts Bill” or any of its

provisions, if enacted would be constitutionally invalid. The seven Judge

Constitution Bench dealt with the scope of Article 14 of the Constitution.

Noticing the earlier decisions of this Court in Budhan Choudhry

69

, Ram

Krishna Dalmia

41

, C.I. Emden

70

, Kangsari Haldar

71

, Jyoti Pershad

49

and

Ambica Mills Ltd.

72

, in the majority judgment the then Chief Justice Y.V.

Chandrachud, inter alia, exposited the following propositions relating to

Article 14:

“(1)xxx xxx xxx

(2) The State, in the exercise of its governmental power, has of

necessity to make laws operating differently on different groups or

classes of persons within its territory to attain particular ends in

giving effect to its policies, and it must possess for that purpose

large powers of distinguishing and classifying persons or things to

be subjected to such laws.

70

C.I. Emden v. State of U.P.; [(1960) 2 SCR 592]

71

Kangsari Haldar & Anr. v. State of West Bengal; [(1960) 2 SCR 646]

72

State of Gujarat & Anr. v. Shri Ambica Mills Ltd., Ahmedabad & Anr.; [(1974) 3 SCR 760]

32

Page 33 (3) The constitutional command to the State to afford equal

protection of its laws sets a goal not attainable by the invention and

application of a precise formula. Therefore, classification need not

be constituted by an exact or scientific exclusion or inclusion of

persons or things. The courts should not insist on delusive

exactness or apply doctrinaire tests for determining the validity of

classification in any given case. Classification is justified if it is not

palpably arbitrary.

(4) The principle underlying the guarantee of Article 14 is not that

the same rules of law should be applicable to all persons within the

Indian territory or that the same remedies should be made

available to them irrespective of differences of circumstances. It

only means that all persons similarly circumstanced shall be

treated alike both in privileges conferred and liabilities imposed.

Equal laws would have to be applied to all in the same situation,

and there should be no discrimination between one person and

another if as regards the subject-matter of the legislation their

position is substantially the same.

(5) By the process of classification, the State has the power of

determining who should be regarded as a class for purposes of

legislation and in relation to a law enacted on a particular subject.

This power, no doubt, in some degree is likely to produce some

inequality; but if a law deals with the liberties of a number of well-

defined classes, it is not open to the charge of denial of equal

protection on the ground that it has no application to other persons.

Classification thus means segregation in classes which have a

systematic relation, usually found in common properties and

characteristics. It postulates a rational basis and does not mean

herding together of certain persons and classes arbitrarily.

(6) The law can make and set apart the classes according to the

needs and exigencies of the society and as suggested by

experience. It can recognise even degree of evil, but the

classification should never be arbitrary, artificial or evasive.

(7) The classification must not be arbitrary but must be rational,

that is to say, it must not only be based on some qualities or

characteristics which are to be found in all the persons grouped

together and not in others who are left out but those qualities or

characteristics must have a reasonable relation to the object of the

legislation. In order to pass the test, two conditions must be

fulfilled, namely, (1) that the classification must be founded on an

intelligible differentia which distinguishes those that are grouped

33

Page 34 together from others and (2) that that differentia must have a

rational relation to the object sought to be achieved by the Act.

(8) The differentia which is the basis of the classification and the

object of the Act are distinct things and what is necessary is that

there must be a nexus between them. In short, while Article 14

forbids class discrimination by conferring privileges or imposing

liabilities upon persons arbitrarily selected out of a large number of

other persons similarly situated in relation to the privileges sought

to be conferred or the liabilities proposed to be imposed, it does

not forbid classification for the purpose of legislation, provided

such classification is not arbitrary in the sense above mentioned.

(9) If the legislative policy is clear and definite and as an effective

method of carrying out that policy a discretion is vested by the

statute upon a body of administrators or officers to make selective

application of the law to certain classes or groups of persons, the

statute itself cannot be condemned as a piece of discriminatory

legislation. In such cases, the power given to the executive body

would import a duty on it to classify the subject-matter of legislation

in accordance with the objective indicated in the statute. If the

administrative body proceeds to classify persons or things on a

basis which has no rational relation to the objective of the

Legislature, its action can be annulled as offending against the

equal protection clause. On the other hand, if the statute itself does

not disclose a definite policy or objective and it confers authority on

another to make selection at its pleasure, the statute would be held

on the face of it to be discriminatory, irrespective of the way in

which it is applied.

(10) Whether a law conferring discretionary powers on an

administrative authority is constitutionally valid or not should not be

determined on the assumption that such authority will act in an

arbitrary manner in exercising the discretion committed to it. Abuse

of power given by law does occur; but the validity of the law cannot

be contested because of such an apprehension. Discretionary

power is not necessarily a discriminatory power.

(11) Classification necessarily implies the making of a distinction or

discrimination between persons classified and those who are not

members of that class. It is the essence of a classification that

upon the class are cast duties and burdens different from those

resting upon the general public. Indeed, the very idea of

classification is that of inequality, so that it goes without saying that

the mere fact of inequality in no manner determines the matter of

constitutionality.

34

Page 35 (12) Whether an enactment providing for special procedure for the

trial of certain offences is or is not discriminatory and violative of

Article 14 must be determined in each case as it arises, for, no

general rule applicable to all cases can safely be laid down. A

practical assessment of the operation of the law in the particular

circumstances is necessary.

(13) A rule of procedure laid down by law comes as much within

the purview of Article 14 as any rule of substantive law and it is

necessary that all litigants, who are similarly situated, are able to

avail themselves of the same procedural rights for relief and for

defence with like protection and without discrimination.”

45. In Nergesh Meerza

16

, the three-Judge Bench of this Court

while dealing with constitutional validity of Regulation 46(i)(c) of Air India

Employees’ Service Regulations (referred to as ‘A.I. Regulations’) held that

certain conditions mentioned in the Regulations may not be violative of

Article 14 on the ground of discrimination but if it is proved that the

conditions laid down are entirely unreasonable and absolutely arbitrary,

then the provisions will have to be struck down. With regard to due

process clause in the American Constitution and Article 14 of our

Constitution, this Court referred to Anwar Ali Sarkar

62

, and observed that

the due process clause in the American Constitution could not apply to our

Constitution. The Court also referred to A.S. Krishna

73

wherein

Venkatarama Ayyar, J. observed: “The law would thus appear to be based

on the due process clause, and it is extremely doubtful whether it can have

application under our Constitution.”

73

A.S. Krishna v. State of Madras; [1957 S.C.R. 399]

35

Page 36 46. In D.S. Nakara

7

, the Constitution Bench of this Court had an

occasion to consider the scope, content and meaning of Article 14. The

Court referred to earlier decisions of this Court and in para 15 (pages 317-

318), the Court observed:

“Thus the fundamental principle is that Article 14 forbids class

legislation but permits reasonable classification for the purpose of

legislation which classification must satisfy the twin tests of

classification being founded on an intelligible differentia which

distinguishes persons or things that are grouped together from

those that are left out of the group and that differentia must have a

rational nexus to the object sought to be achieved by the statute in

question.”

47. In E.P. Royappa

26

, it has been held by this Court that the basic

principle which informs both Articles 14 and 16 are equality and inhibition

against discrimination. This Court observed in para 85 (page 38 of the

report) as under:

“….From a positivistic point of view, equality is antithetic to

arbitrariness. In fact equality and arbitrariness are sworn enemies;

one belongs to the rule of law in a republic while the other, to the

whim and caprice of an absolute monarch. Where an act is

arbitrary, it is implicit in it that it is unequal both according to

political logic and constitutional law and is therefore violative of

Article 14, and if it affects any matter relating to public employment,

it is also violative of Article 16. Articles 14 and 16 strike at

arbitrariness in State action and ensure fairness and equality of

treatment.”

Court’s approach

48. Where there is challenge to the constitutional validity of a law

enacted by the legislature, the Court must keep in view that there is always

36

Page 37 a presumption of constitutionality of an enactment, and a clear

transgression of constitutional principles must be shown. The fundamental

nature and importance of the legislative process needs to be recognized by

the Court and due regard and deference must be accorded to the

legislative process. Where the legislation is sought to be challenged as

being unconstitutional and violative of Article 14 of the Constitution, the

Court must remind itself to the principles relating to the applicability of

Article 14 in relation to invalidation of legislation. The two dimensions of

Article 14 in its application to legislation and rendering legislation invalid

are now well recognized and these are (i) discrimination, based on an

impermissible or invalid classification and (ii) excessive delegation of

powers; conferment of uncanalised and unguided powers on the executive,

whether in the form of delegated legislation or by way of conferment of

authority to pass administrative orders – if such conferment is without any

guidance, control or checks, it is violative of Article 14 of the Constitution.

The Court also needs to be mindful that a legislation does not become

unconstitutional merely because there is another view or because another

method may be considered to be as good or even more effective, like any

issue of social, or even economic policy. It is well settled that the courts do

not substitute their views on what the policy is.

Consideration

37

Page 38 49. Several objections have been raised against this provision in

the context of Article 14. First, we shall consider the challenge against the

validity of classification which Section 6-A(1) makes and the lack of

relationship between the basis of that classification and the object which it

seeks to achieve.

50. The impugned provision, viz., Section 6-A came to be enacted

after the decision of this Court in Vineet Narain

1

. It is important to bear in

mind that the three-Judge Bench of this Court in Vineet Narain

1

was directly

concerned with constitutional validity of the Single Directive No. 4.7(3),

which to the extent relevant for the present purposes, reads:

“4.7(3)(i) In regard to any person who is or has been a decision-

making level officer (Joint Secretary or equivalent or above in the

Central Government or such officers as are or have been on

deputation to a Public Sector Undertaking; officers of the Reserve

Bank of India of the level equivalent to Joint Secretary or above in

the Central Government, Executive Directors and above of the

SEBI and Chairman & Managing Director and Executive Directors

and such of the bank officers who are one level below the Board of

Nationalised Banks), there should be prior sanction of the

Secretary of the Ministry/Department concerned before SPE takes

up any enquiry (PE or RC), including ordering search in respect of

them. Without such sanction, no enquiry shall be initiated by the

SPE.

(ii) xxx xxx xxx

(iii) xxx xxx xxx

(iv)xxx xxx xxx.”

51. The above provision contained in Single Directive 4.7(3)(i) was

sought to be justified by the learned Attorney General in Vineet Narain

1

on

38

Page 39 the ground that the officers at the decision making level need the protection

against malicious or vexatious investigations in respect of honest decisions

taken by them. Learned Attorney General in Vineet Narain

1

submitted that

such a structure to regulate the grant of sanction by a high authority

together with a time-frame to avoid any delay was sufficient to make the

procedure reasonable and to provide for an objective decision being taken

for the grant of sanction within the specified time. It was urged that refusal

of sanction would enable judicial review of that decision in case of any

grievance.

52. This Court in Vineet Narain

1

took notice of the report submitted

by IRC, which recorded:

“In the past several years, there has been progressive increase in

allegations of corruption involving public servants. Understandably,

cases of this nature have attracted heightened media and public

attention. A general impression appears to have gained ground

that the Central investigating agencies concerned are subject to

extraneous pressures and have been indulging in dilatory tactics in

not bringing the guilty to book. The decisions of higher courts to

directly monitor investigations in certain cases have added to the

aforesaid belief.”

53. The Court then discussed the earlier decisions of this Court in

J.A.C. Saldanha

74

and K. Veeraswami

25

and also the provisions of the

DSPE Act and held that: “Powers of investigation which are governed by

the statutory provisions and they cannot be curtailed by any executive

instruction.” Having said that, this Court stated that the law did not classify

74

State of Bihar & Anr. v. J.A.C. Saldanha & Ors.; [(1980) 1 SCC 554]

39

Page 40 offenders differently for treatment thereunder, including investigation of

offences and prosecution for offences, according to their status in life.

Every person accused of committing the same offence is to be dealt with in

the same manner in accordance with law, which is equal in its application

to everyone. The Single Directive is applicable only to certain persons

above the specified level who are described as decision-making officers.

Negativing that any distinction can be made for them for the purpose of

investigation of an offence of which they are accused, this Court in

paragraphs 45 and 46 held as under:

“45. Obviously, where the accusation of corruption is based on

direct evidence and it does not require any inference to be drawn

dependent on the decision-making process, there is no rational

basis to classify them differently. In other words, if the accusation

be of bribery which is supported by direct evidence of acceptance

of illegal gratification by them, including trap cases, it is obvious

that no other factor is relevant and the level or status of the

offender is irrelevant. It is for this reason that it was conceded that

such cases, i.e., of bribery, including trap cases, are outside the

scope of the Single Directive. After some debate at the Bar, no

serious attempt was made by the learned Attorney General to

support inclusion within the Single Directive of cases in which the

offender is alleged to be in possession of disproportionate assets.

It is clear that the accusation of possession of disproportionate

assets by a person is also based on direct evidence and no factor

pertaining to the expertise of decision-making is involved therein.

We have, therefore, no doubt that the Single Directive cannot

include within its ambit cases of possession of disproportionate

assets by the offender. The question now is only with regard to

cases other than those of bribery, including trap cases, and of

possession of disproportionate assets being covered by the Single

Directive.

46. There may be other cases where the accusation cannot be

supported by direct evidence and is a matter of inference of corrupt

motive for the decision, with nothing to prove directly any illegal

gain to the decision-maker. Those are cases in which the inference

40

Page 41 drawn is that the decision must have been made for a corrupt

motive because the decision could not have been reached

otherwise by an officer at that level in the hierarchy. This is,

therefore, an area where the opinion of persons with requisite

expertise in decision-making of that kind is relevant and, may be

even decisive in reaching the conclusion whether the allegation

requires any investigation to be made. In view of the fact that the

CBI or the police force does not have the expertise within its fold

for the formation of the requisite opinion in such cases, the need

for the inclusion of such a mechanism comprising of experts in the

field as a part of the infrastructure of the CBI is obvious, to decide

whether the accusation made discloses grounds for a reasonable

suspicion of the commission of an offence and it requires

investigation. In the absence of any such mechanism within the

infrastructure of the CBI, comprising of experts in the field who can

evaluate the material for the decision to be made, introduction

therein of a body of experts having expertise of the kind of

business which requires the decision to be made, can be

appreciated. But then, the final opinion is to be of the CBI with the

aid of that advice and not that of anyone else. It would be more

appropriate to have such a body within the infrastructure of the CBI

itself.”

54. This Court, accordingly, declared Single Directive 4.7(3)(i)

being invalid.

55. Section 6-A replicates Single Directive 4.7(3)(i), which was

struck down by this Court. The only change is that executive instruction is

replaced by the legislation. Now, insofar as the vice that was pointed out

by this Court that powers of investigation which are governed by the

statutory provisions under the DSPE Act and they cannot be estopped or

curtailed by any executive instruction issued under Section 4(1) of that Act

is concerned, it has been remedied. But the question remains, and that is

what has been raised in these matters, whether Section 6-A meets the

touchstone of Article 14 of the Constitution.

41

Page 42 56. Can classification be made creating a class of the government

officers of the level of Joint Secretary and above level and certain officials

in public sector undertakings for the purpose of inquiry/investigation into an

offence alleged to have been committed under the PC Act, 1988? Or, to put

it differently, can classification be made on the basis of the status/position

of the public servant for the purpose of inquiry/investigation into the

allegation of graft which amounts to an offence under the PC Act, 1988?

Can the Legislature lay down different principles for investigation/inquiry

into the allegations of corruption for the public servants who hold a

particular position? Is such classification founded on sound differentia? To

answer these questions, we should eschew the doctrinaire approach.

Rather, we should test the validity of impugned classification by broad

considerations having regard to the legislative policy relating to prevention

of corruption enacted in the PC Act, 1988 and the powers of

inquiry/investigation under the DSPE Act.

57. The Constitution permits the State to determine, by the

process of classification, what should be regarded as a class for purposes

of legislation and in relation to law enacted on a particular subject. There

is bound to be some degree of inequality when there is segregation of one

class from the other. However, such segregation must be rational and not

artificial or evasive. In other words, the classification must not only be

based on some qualities or characteristics, which are to be found in all

42

Page 43 persons grouped together and not in others who are left out but those

qualities or characteristics must have a reasonable relation to the object of

the legislation. Differentia which is the basis of classification must be

sound and must have reasonable relation to the object of the legislation. If

the object itself is discriminatory, then explanation that classification is

reasonable having rational relation to the object sought to be achieved is

immaterial.

58. It seems to us that classification which is made in Section 6-A

on the basis of status in the Government service is not permissible under

Article 14 as it defeats the purpose of finding prima facie truth into the

allegations of graft, which amount to an offence under the PC Act, 1988.

Can there be sound differentiation between corrupt public servants based

on their status? Surely not, because irrespective of their status or position,

corrupt public servants are corrupters of public power. The corrupt public

servants, whether high or low, are birds of the same feather and must be

confronted with the process of investigation and inquiry equally. Based on

the position or status in service, no distinction can be made between public

servants against whom there are allegations amounting to an offence under

the PC Act, 1988.

59. Corruption is an enemy of the nation and tracking down corrupt

public servants and punishing such persons is a necessary mandate of the

PC Act, 1988. It is difficult to justify the classification which has been made

43

Page 44 in Section 6-A because the goal of law in the PC Act, 1988 is to meet

corruption cases with a very strong hand and all public servants are warned

through such a legislative measure that corrupt public servants have to

face very serious consequences. In the words of Mathew, J. in Ambica

Mills Ltd.

72

, “The equal protection of the laws is a pledge of the protection

of equal laws. But laws may classify...... A reasonable classification is one

which includes all who are similarly situated and none who are not”.

Mathew, J., while explaining the meaning of the words, ‘similarly situated’

stated that we must look beyond the classification to the purpose of the

law. The purpose of a law may be either the elimination of a public mischief

or the achievement of some positive public good. The classification made

in Section 6-A neither eliminates public mischief nor achieves some

positive public good. On the other hand, it advances public mischief and

protects the crime-doer. The provision thwarts an independent,

unhampered, unbiased, efficient and fearless inquiry / investigation to track

down the corrupt public servants.

60. The essence of police investigation is skilful inquiry and

collection of material and evidence in a manner by which the

potential culpable individuals are not forewarned. The previous approval

from the Government necessarily required under Section 6-A would result

in indirectly putting to notice the officers to be investigated before

commencement of investigation. Moreover, if the CBI is not even

44

Page 45 allowed to verify complaints by preliminary enquiry, how can the case

move forward? A preliminary enquiry is intended to ascertain whether a

prima facie case for investigation is made out or not. If CBI is prevented

from holding a preliminary enquiry, at the very threshold, a fetter is put to

enable the CBI to gather relevant material. As a matter of fact, the CBI is

not able to collect the material even to move the Government for the

purpose of obtaining previous approval from the Central Government.

61. It is important to bear in mind that as per the CBI Manual,

(Paragraph 9.10) a preliminary enquiry relating to allegations of bribery and

corruption should be limited to the scrutiny of records and interrogation of

bare minimum persons which being necessary to judge whether there is

any substance in the allegations which are being enquired into and whether

the case is worth pursuing further or not. Even this exercise of scrutiny of

records and gathering relevant information to find out whether the case is

worth pursuing further or not is not possible. In the criminal justice system,

the inquiry and investigation into an offence is the domain of the police. The

very power of CBI to enquire and investigate into the allegations of bribery

and corruption against a certain class of public servants and officials in

public undertakings is subverted and impinged by Section 6-A.

62. The justification for having such classification is founded

principally on the statement made by the then Minister of Law and Justice

that if no protection is to be given to the officers, who take the decisions and

45

Page 46 make discretions, then anybody can file a complaint and an inspector of the

CBI or the police can raid their houses any moment. If this elementary

protection is not given to the senior decision makers, they would not tender

honest advice to political executives. Such senior officers then may play

safe and give non-committal advice affecting the governance. The

justification for classification in Section 6-A is also put forth on the basis of

the report of the Joint Parliamentary Committee to which CVC Bill, 1999

was referred particularly at the question relating to Clause 27 regarding

amendment of the DSPE Act (the provision which is now Section 6-A). The

Joint Parliamentary Committee, in this regard noted as follows:

“The Committee note that many witnesses who

appeared before the Committee had expressed the

need to protect the bonafide actions at the decision

making level. At present there is no provision in the Bill

for seeking prior approval of the Commission or the

head of the Department etc. for registering a case

against a person of the decision making level. As such,

no protection is available to the persons at the decision

making level. In this regard, the Committee note that

earlier, the prior approval of the Government was

required in the form of a ‘Single Directive’ which was set

aside by the Supreme Court. The Committee feel that

such a protection should be restored in the same format

which was there earlier and desire that the power of

giving prior approval for taking action against a senior

officer of the decision making level should be vested

with the Central Government by making appropriate

provision in the Act. The Committee, therefore,

recommend that Clause 27 of the Bill accordingly

amended so as to insert a new section 6A to the DSPE

Act, 1946, to this effect.”

46

Page 47 63. As a matter of fact, the justification for Section 6-A which has

been put forth before us on behalf of the Central Government was the

justification for Single Directive 4.7(3)(i) in Vineet Narain

1

as well.

However, the Court was unable to persuade itself with the same. In Vineet

Narain

1

in respect of Single Directive 4.7(3)(i), the Court said that every

person accused of committing the same offence is to be dealt with in the

same manner in accordance with law, which is equal in its application to

everyone. We are in agreement with the above observation in Vineet

Narain

1

, which, in our opinion, equally applies to Section 6-A. In Vineet

Narain

1

, this Court did not accept the argument that the Single Directive is

applicable only to certain class of officers above the specified level who

are decision making officers and a distinction can be made for them for the

purpose of investigation of an offence of which they are accused. We are

also clearly of the view that no distinction can be made for certain class of

officers specified in Section 6-A who are described as decision making

officers for the purpose of inquiry/investigation into an offence under the PC

Act, 1988. There is no rational basis to classify the two sets of public

servants differently on the ground that one set of officers is decision making

officers and not the other set of officers. If there is an accusation of bribery,

graft, illegal gratification or criminal misconduct against a public servant,

then we fail to understand as to how the status of offender is of any

relevance. Where there are allegations against a public servant which

amount to an offence under the PC Act, 1988, no factor pertaining to

47

Page 48 expertise of decision making is involved. Yet, Section 6-A makes a

distinction. It is this vice which renders Section 6-A violative of Article 14.

Moreover, the result of the impugned legislation is that the very group of

persons, namely, high ranking bureaucrats whose misdeeds and

illegalities may have to be inquired into, would decide whether the

CBI should even start an inquiry or investigation against them or not.

There will be no confidentiality and insulation of the investigating agency

from political and bureaucratic control and influence because the approval

is to be taken from the Central Government which would involve leaks

and disclosures at every stage.

64. It is true that sub-Section (2) of Section 6-A has taken care of

observations of this Court in Vineet Narain

1

insofar as trap cases are

concerned. It also takes care of the infirmity pointed out by this Court that

in the absence of any statutory requirement of prior permission or sanction

for investigation, it cannot be imposed as a condition precedent for

initiation of investigation, but, Section 6-A continues to suffer from the other

two infirmities which this Court noted concerning Single Directive, viz.; (a)

where inference is to be drawn that the decision must have been for corrupt

motive and direct evidence is not there, the expertise to take decision

whether to proceed or not in such cases should be with the CBI itself and

not with the Central Government and (b) in any event the final decision to

commence investigation into the offences must be of the CBI with the

48

Page 49 internal aid and advice and not of anybody else. Section 6-A also suffers

from the vice of classifying offenders differently for treatment thereunder for

inquiry and investigation of offences, according to their status in life. Every

person accused of committing the same offence is to be dealt with in the

same manner in accordance with law, which is equal in its application to

everyone.

65. Way back in 1993, the Central Government constituted a

Committee under the Chairmanship of the former Home Secretary (Shri

N.N. Vohra) to take stock of all available information about the activities of

the crime syndicates/mafia organizations, which had developed links with

and were being permitted by Government functionaries and political

personalities. In para 14.3 of the report, the Committee has observed that

linkages of crime syndicate with senior Government functionaries or

political leaders in the States or at the Centre could have a destabilizing

effect on the functioning of the Government. The report paints a frightening

picture of criminal-bureaucratic-political nexus – a network of high level

corruption. The impugned provision puts this nexus in a position to block

inquiry and investigation by CBI by conferring the power of previous

approval on the Central Government.

66. A class of Central Government employees has been created in

Section 6-A inasmuch as it offers protection to a class of the Government

officers of the level of Joint Secretary and above to whom DSPE Act

49

Page 50 applies but no such protection is available to the officers of the same level,

who are posted in various States. This position is accepted by CBI. Mr.

Sidharth Luthra, learned Additional Solicitor General placed before us the

following questions and answers to clarify the legal position:

“Question No.1 : Whether an officer of the public sector

bank / public sector undertaking of Central

Govt. in the rank of Joint Secretary and

above while posting in the State and

alleged to have committed an offence under

P.C. Act, can be investigated by State

Police or CBI?

Answer No.1 :Yes, both State Police and CBI have

jurisdiction under P.C. Act over such

officers. The jurisdiction of CBI is,

however, subject to Section 6(A) of DSPE

Act and consent of the State Govt. u/s 6 of

the DSPE Act, 1946.

Question No.2 :Whether an employee of All India Service

i.e. IPS, IAS and Indian Forest Services

while posted in the State Govt. at the JS

level and above can claim protection under

6(A)?

Answer No.2 :No, as the very wording of Section 6(A)

mentions only the employees of the Central

Govt.

Question No.3 :Whether in a Union Territory, the State

Police and the CBI will have concurrent

jurisdiction over employees of Central Govt.

for PC Act offences?

Answer No.3 :Yes, both the State UT Police and CBI

have jurisdiction over Central Govt.

employees under P.C. Act. Section 6(A) of

DSPE Act is operative for CBI for officers of

the level of JS and above.

50

Page 51 Question No.4 :What will be the position regarding

employees of the Central Govt. in the Allied

/ Central Civil Services such as Indian

Revenue Service, Postal Service etc. Who

are working in the territory of the State but

not posted in the State?

Answer No.4 ;Yes, both State Police and CBI have

jurisdiction under P.C. Act over such

officers. The jurisdiction of CBI is, however,

subject to Section 6(A) of DSPE Act and

consent of the State Govt. u/s 6 of the

DSPE Act, 1946.”

67. Can it be said that the classification is based on intelligible

differentia when one set of bureaucrats of Joint Secretary level and above

who are working with the Central Government are offered protection under

Section 6-A while the same level of officers who are working in the States

do not get protection though both classes of these officers are accused of

an offence under PC Act, 1988 and inquiry / investigation into such

allegations is to be carried out. Our answer is in the negative. The

provision in Section 6-A, thus, impedes tracking down the corrupt senior

bureaucrats as without previous approval of the Central Government, the

CBI cannot even hold preliminary inquiry much less an investigation into the

allegations. The protection in Section 6-A has propensity of shielding the

corrupt. The object of Section 6-A, that senior public servants of the level

of Joint Secretary and above who take policy decision must not be put to

any harassment, side-tracks the fundamental objective of the PC Act, 1988

to deal with corruption and act against senior public servants. The CBI is

51

Page 52 not able to proceed even to collect the material to unearth prima facie

substance into the merits of allegations. Thus, the object of Section 6-A

itself is discriminatory. That being the position, the discrimination cannot be

justified on the ground that there is a reasonable classification because it

has rational relation to the object sought to be achieved.

68. The signature tune in Vineet Narain

1

is, “However high you may

be, the law is above you.” We reiterate the same. Section 6-A offends this

signature tune and effectively Article 14.

69. Undoubtedly, every differentiation is not a discrimination but at

the same time, differentiation must be founded on pertinent and real

differences as distinguished from irrelevant and artificial ones. A simple

physical grouping which separates one category from the other without any

rational basis is not a sound or intelligible differentia. The separation or

segregation must have a systematic relation and rational basis and the

object of such segregation must not be discriminatory. Every public servant

against whom there is reasonable suspicion of commission of crime or

there are allegations of an offence under the PC Act, 1988 has to be treated

equally and similarly under the law. Any distinction made between them on

the basis of their status or position in service for the purposes of inquiry /

investigation is nothing but an artificial one and offends Article 14.

52

Page 53 70. Office of public power cannot be the workshop of personal

gain. The probity in public life is of great importance. How can two public

servants against whom there are allegations of corruption or graft or bribe-

taking or criminal misconduct under the PC Act, 1988 can be made to be

treated differently because one happens to be a junior officer and the other,

a senior decision maker.

71. Corruption is an enemy of nation and tracking down corrupt

public servant, howsoever high he may be, and punishing such person is a

necessary mandate under the PC Act, 1988. The status or position of

public servant does not qualify such public servant from exemption from

equal treatment. The decision making power does not segregate corrupt

officers into two classes as they are common crime doers and have to be

tracked down by the same process of inquiry and investigation.

72. It is argued on behalf of the Central Government that now

office memorandum (dated 26.09.2011) approving the

recommendations

made by the Group of Ministers has been issued which provides inter alia

for quick consideration of the request by the CBI for approval and also to

give reasons for granting / rejecting sanction under Section 6-A. It is

submitted that delay in disposal of the requests by the CBI is now taken

care of and if there is denial of sanction order under Section 6-A, such order

of the Central Government can be challenged in a writ petition before the

High Court. Such protection, it is submitted, is even recognized by United

53

Page 54 Nations in Article 30 of the UN Convention against corruption. This aspect

has been considered by this Court in Manohar Lal Sharma

4

to which we

shall refer appropriately a little later.

73. The PC Act, 1988 is a special statute and its preamble shows

that it has been enacted to consolidate and amend the law relating to the

prevention of corruption and for the matters connected therewith. It is

intended to make the corruption laws more effective by widening their

coverage and by strengthening the provisions. It came to be enacted

because Prevention of Corruption Act, 1947 as amended from time to time

was inadequate to deal with the offences of corruption effectively. The new

Act now seeks to provide for speedy trial of offences punishable under the

Act in public interest as the legislature had become aware of corruption

amongst the public servants.

74. Corruption corrodes the moral fabric of the society and

corruption by public servants not only leads to corrosion of the moral fabric

of the society but also harmful to the national economy and national

interest, as the persons occupying high posts in the Government by

misusing their power due to corruption can cause considerable damage to

the national economy, national interest and image of the country

75

.

75. The PC Act, 1988 has also widened the scope of the definition

of the expression ‘public servant’ and incorporated offences under Sections

75

J. Jayalalitha v. Union of India & Anr.; [(1999) 5 SCC 138]

54

Page 55 161 to 165A of the Indian Penal Code (IPC). By Lokpal and Lokayuktas

Act, 2013 (Act 1 of 2014), further amendments have been made therein.

The penalties relating to the offences under Sections 7, 8, 9, 12, 13 and 14

have been enhanced by these amendments.

75.1 Section 7 makes taking gratification by a public servant other

than legal remuneration in respect of an official act as an offence and

provides penalties for such offence. The expressions ‘gratification’ and

‘legal remuneration’ have been explained in clauses (b) and (c) of the

Explanation appended to Section 7. Taking gratification by corrupt or

illegal means to influence public servant is an offence under Section 8

while under Section 9, taking gratification for exercise of personal influence

with a public servant is an offence. Section 10 provides for punishment for

abetment by public servant of offences defined in Section 8 or 9. Section

11 provides for an offence where a public servant obtains valuable thing

without consideration from person concerned in proceeding or business

transacted by such public servant. The punishment for abetment of

offences defined in Section 7 or 11 is provided in Section 12.

75.2 Section 13 is a provision relating to criminal misconduct by a

public servant. It reads as follows:

“13. Criminal misconduct by a public servant.- (1) A public

servant is said to commit the offence of criminal misconduct,-

55

Page 56 (a) if he habitually accepts or obtains or agrees to accept or

attempts to obtain from any person for himself or for any

other person any gratification other than legal remuneration

as a motive or reward such as is mentioned in section 7; or

(b) if he habitually accepts or obtains or agrees to accept or

attempts to obtain for himself or for any other person, any

valuable thing without consideration or for a consideration

which he knows to be inadequate from any person whom he

knows to have been, or to be, or to be likely to be concerned

in any proceeding or business transacted or about to be

transacted by him, or having any connection with the official

functions of himself or of any public servant to whom he is

subordinate, or from any person whom he knows to be

interested in or related to the person so concerned; or

(c) if he dishonestly or fraudulently misappropriates or

otherwise converts for his own use any property entrusted to

him or under his control as a public servant or allows any

other person so to do; or

(d) if he,-

(i) by corrupt or illegal means, obtains for himself or

for any other person any valuable thing or pecuniary

advantage; or

(ii) by abusing his position as a public servant,

obtains for himself or for any other person any

valuable thing or pecuniary advantage; or

(iii) while holding office as a public servant, obtains

for any person any valuable thing or pecuniary

advantage without any public interest; or

(e) if he or any person on his behalf, is in possession or has,

at any time during the period of his office, been in

possession for which the public servant cannot satisfactorily

account, of pecuniary resources or property disproportionate

to his known sources of income.

Explanation.-For the purposes of this section, "known sources of

income" means income received from any lawful source and such

receipt has been intimated in accordance with the provisions of any

law, rules or orders for the time being applicable to a public

servant.

(2) Any public servant who commits criminal misconduct shall be

punishable with imprisonment for a term which shall be not less

56

Page 57 than four years but which may extend to ten years and shall also

be liable to fine.”

75.3 Section 17 authorizes only certain level of police officers to

investigate the offences under the PC Act, 1988. An investigation into such

offences by any other police officer can be carried out only after having

proper authorization from the competent court or competent authority as

provided therein.

75.4 Section 19 mandates that no Court shall take cognizance of an

offence punishable under Sections 7, 10, 11, 13 and 15 alleged to have

been committed by a public servant except with the previous sanction as

provided in that section. Section 19 does not permit any court to take

cognizance of an offence punishable under Sections 7, 10, 11, 13 and 15 of

the PC Act, 1988 without previous sanction from the competent authority

where the offence has been committed by a public servant who is holding

the office and by misusing or abusing the powers of the office, he has

committed the offence. Section 19, thus, provides to every public servant,

irrespective of his position in service, protection from frivolous and

malicious prosecution.

76. The menace of corruption has been noticed by this Court in

Ram Singh

8

. The court has observed:

“Corruption, at the initial stages, was considered confined to the

bureaucracy which had the opportunities to deal with a variety of

57

Page 58 State largesse in the form of contracts, licences and grants. Even

after the war the opportunities for corruption continued as large

amounts of government surplus stores were required to be

disposed of by the public servants. As a consequence of the wars

the shortage of various goods necessitated the imposition of

controls and extensive schemes of post-war reconstruction

involving the disbursement of huge sums of money which lay in the

control of the public servants giving them a wide discretion with the

result of luring them to the glittering shine of wealth and property.”

77. This Court in Shobha Suresh Jumani

76

, took judicial notice of

the fact that because of the mad race of becoming rich and acquiring

properties overnight or because of the ostentatious or vulgar show of

wealth by a few or because of change of environment in the society by

adoption of materialistic approach, there is cancerous growth of corruption

which has affected the moral standards of the people and all forms of

governmental administration.

78. The PC Act, 1988 enacts the legislative policy to meet

corruption cases with a very strong hand. All public servants are warned

through such a legislative measure that corrupt public servants have to

face very serious consequences.

77

79. The two-Judge Bench of this Court observed in Sanjiv Kumar

78

that the case before them had brought to the fore the rampant corruption in

the corridors of politics and bureaucracy.

76

Shobha Suresh Jumani v. Appellate Tribunal, forfeited Property and Anr; [(2001) 5 SCC 755]

77

State of A.P. v. V. Vasudeva Rao [(2004) 9 SCC 319]

78

Sanjiv Kumar v. State of Haryana and Ors. [(2005) 5 SCC 517]

58

Page 59 80. In a comparatively recent decision of this Court in

Subramanian Swamy

9

, this court was concerned with the question whether

a complaint can be filed by a citizen for prosecuting the public servant for

an offence under the PC Act, 1988 and whether the authority competent to

sanction prosecution of a public servant for offences under that Act is

required to take appropriate decision within the time specified in Clause (I)

(15) of the directions contained in paragraph 58 of the judgment of this

Court in Vineet Narain

1

and the guidelines issued by the Central

Government, Department of Personnel and Training and the Central

Vigilance Commission. In the supplementing judgment, A.K. Ganguly, J.

while concurring with the main judgment delivered by G.S. Singhvi, J.

observed:

“Today, corruption in our country not only poses a grave danger to

the concept of constitutional governance, it also threatens the very

foundation of the Indian democracy and the Rule of Law. The

magnitude of corruption in our public life is incompatible with the

concept of a socialist secular democratic republic. It cannot be

disputed that where corruption begins all rights end. Corruption

devalues human rights, chokes development and undermines

justice, liberty, equality, fraternity which are the core values in our

Preambular vision. Therefore, the duty of the court is that any anti-

corruption law has to be interpreted and worked out in such a

fashion as to strengthen the fight against corruption……….”

Dealing with Section 19 of the PC Act, 1988 which bars a court from taking

cognizance of the cases of corruption against a public servant under

Sections 7, 10, 11, 13 and 15 of the PC Act, 1988, unless the Central or the

State Government, as the case may be, has accorded sanction observed

59

Page 60 that this provision virtually imposes fetters on private citizens and also on

prosecutors from approaching court against corrupt public servants. Public

servants are treated as a special class of persons enjoying the said

protection so that they can perform their duties without fear and favour and

without threats of malicious prosecution but the protection against

malicious prosecution which is extended in public interest cannot become a

shield to protect corrupt officials.

81. In Balakrishna Dattatrya Kumbhar

11

, this Court observed that

corruption was not only a punishable offence but also, “undermines human

rights, indirectly violating them, and systematic corruption, is a human

rights’ violation in itself, as it leads to systematic economic crimes”.

82. In R.A. Mehta

10

, the two-Judge Bench of this Court made the

following observations about corruption in the society:

“Corruption in a society is required to be detected and eradicated

at the earliest as it shakes “the socio-economic-political system in

an otherwise healthy, wealthy, effective and vibrating society”.

Liberty cannot last long unless the State is able to eradicate

corruption from public life. Corruption is a bigger threat than

external threat to the civil society as it corrodes the vitals of our

polity and society. Corruption is instrumental in not proper

implementation and enforcement of policies adopted by the

Government. Thus, it is not merely a fringe issue but a subject-

matter of grave concern and requires to be decisively dealt with.”

83. Now we turn to the recent decision of this Court in Manohar

Lal Sharma

4

. A three-Judge Bench of this Court in that case leaving the

60

Page 61 question of constitutional validity of Section 6-A untouched and touching

upon the question whether the approval of the Central Government is

necessary under Section 6-A in a matter where the inquiry/investigation

into the crime under the PC Act, 1988 is being monitored by the Court,

speaking through one of us (R.M. Lodha, J., as he then was) on the inquiry

into allegations of corruption observed that for successful working of the

democracy it was essential that public revenues are not defrauded and

public servants do not indulge in bribery and corruption and if they do, the

allegations of corruption are to be inquired into fairly, properly and promptly

and those who are guilty are brought to book. It was observed:

“Abuse of public office for private gain has grown in scope and

scale and hit the nation badly. Corruption reduces revenue; it

slows down economic activity and holds back economic growth.

The biggest loss that may occur to the nation due to corruption is

loss of confidence in the democracy and weakening of the rule of

law.”

83.1 Madan B. Lokur, J. in his supplementing judgment dealt with

Office Memorandum dated 26

th

September, 2011. The relevant extract of

the Office Memorandum has been quoted in paragraph 74 of the judgment,

which reads:

“The undersigned is directed to state that the provision of

section 6-A of the DSPE Act, 1946 provides for safeguarding

senior public officials against undue and vexatious harassment

by the investigating agency. It had been observed that the

requests being made by the investigating agency under the said

provision were not being accorded due priority and the examination

of such proposals at times lacked objectivity. The matter was

under consideration of the Group of Ministers constituted to

61

Page 62 consider measures that can be taken by the Government to tackle

Corruption.

The Government has accepted the following recommendation of

the Group of Ministers, as reflected in para 25 of the First Report of

the Group of Ministers, as reflected in para 25 of the first report of

the Group of Ministers:-

(a). The competent authority shall decide the

matter within three months of receipt of requests

accompanied with relevant documents.

(b). The competent authority will give a speaking

order, giving reasons for its decision.

(c) In the event a decision is taken to refuse

permission, the reasons thereof shall be put up to the

next higher authority for information within one week

of taking the decision.

(d) Since Section 6-A specifically covers officers

of the Central Government, above the rank of Joint

Secretary, the competent authority in these cases will

be the Minister in charge in the Government of India.

In such cases, intimation of refusal to grant permission

along with reasons thereof, will have to be put up to

the Prime Minister.

The above decision of the Government is

brought to the notice of all Ministries/Departments for

due adherence and strict compliance.”

83.2 The above office memorandum has not been found to be

efficacious in Manohar Lal Sharma

4

as it does not effectively prevent

possible misuse of law. There is no guarantee that the time schedule

prescribed in the office memorandum shall be strictly followed. In any

case, what can CBI do if the time schedule provided in the office

memorandum is not maintained. Even otherwise, office memorandum is

not of much help in adjudging the constitutional validity of Section 6-A.

62

Page 63 84. Learned amicus curiae highlighted that there was no

requirement of previous approval as contained in the impugned provisions

between 18.12.1997 (the date of Vineet Narain

1

judgment striking down the

Single Directive) and 11.9.2003 (when Act 45 of 2003 came into force)

except the period between 25.8.1998 and 27.10.1998 when the CVC

Ordinance, 1998 was in force and till the deletions by the CVC Amendment

Ordinance, 1998. It is not the stand of the Central Government before us

nor any material is placed on record by it to suggest even remotely that

during the period when the Single Directive was not in operation or until

Section 6-A was brought on the statute book, CBI harassed any senior

government officer or investigated frivolous and vexatious complaints. The

high-pitched argument in justification of Section 6-A that senior government

officers may be unduly and unnecessarily harassed on frivolous and

vexatious complaints, therefore, does not hold water.

85. Criminal justice system mandates that any investigation into

the crime should be fair, in accordance with law and should not be tainted.

It is equally important that interested or influential persons are not able to

misdirect or highjack the investigation so as to throttle a fair investigation

resulting in the offenders escaping the punitive course of law. These are

important facets of rule of law. Breach of rule of law, in our opinion,

amounts to negation of equality under Article 14. Section 6-A fails in the

context of these facets of Article 14. The argument of Mr. L. Nageswara

63

Page 64 Rao that rule of law is not above law and cannot be a ground for

invalidating legislations overlooks the well settled position that rule of law

is a facet of equality under Article 14 and breach of rule of law amounts to

breach of equality under Article 14 and, therefore, breach of rule of law

may be a ground for invalidating the legislation being in negation of Article

14.

86. Section 156 of the Cr.P.C. enables any officer in charge of a

police station to investigate a cognizable offence. Insofar as non-

cognizable offence is concerned, a police officer by virtue of Section 155 of

Cr.P.C. can investigate it after obtaining appropriate order from the

Magistrate having power to try such case or commit the case for trial

regardless of the status of the officer concerned. The scheme of Section

155 and Section 156 Cr.P.C. indicates that the local police may investigate

a senior Government officer without previous approval of the Central

Government. However, CBI cannot do so in view of Section 6-A. This

anomaly in fact occurred in Centre for PIL

79

. That was a matter in which

investigations were conducted by the local police in respect of senior

Government official without any previous approval and a challan filed in the

court of Special Judge dealing with offences under the PC Act, 1988.

Dealing with such anomaly in Centre for PIL

79

, Madan B. Lokur, J. in

Manohar Lal Sharma

4

observed, “It is difficult to understand the logic

79

Centre for PIL and Anr. v. Union of India and Anr.; [(2011) 4 SCC 1]

64

Page 65 behind such a dichotomy unless it is assumed that frivolous and

vexatious complaints are made only when the CBI is the investigating

agency and that it is only CBI that is capable of harassing or victimizing a

senior Government official while the local police of the State Government

does not entertain frivolous and vexatious complaints and is not capable of

harassing or victimizing a senior government official. No such assumption

can be made.”

The above clearly indicates that Section 6-A has brought

an anomalous situation and the very object of the provision to give

protection to certain officers (Joint Secretary and above) in the Central

Government has been rendered discriminatory and violative of Article 14.

87. It is pertinent to notice that in Subramanian Swamy

9

this Court

noted that as per supplementary written submissions tendered by the

learned Attorney General, 126 cases were awaiting sanction for

prosecution from the Central Government for periods ranging from one

year to few months. Moreover, in more than one-third of the cases of

requests for prosecution in corruption cases against public servants,

sanctions have not been accorded. Whether an enactment providing for

special procedure for a certain class of persons is or is not discriminatory

and violative of Article 14 must be determined in its own context. A

practical assessment of the operation of the law in particular circumstances

is necessary and the court can take judicial notice of existing conditions

from time to time. The scenario noted in Subramanian Swamy

9

and the

65

Page 66 facts in Telecom Watchdog

5

- to illustrate the few – show that differentia in

Section 6-A is directly destructive and runs counter to the object and

reason of the PC Act, 1988. It also undermines the object of detecting and

punishing high level corruption.

88. Mr. K.V. Viswanathan, learned Additional Solicitor General has

strongly relied upon the observations made by this Court in P. Sirajuddin

52

that if baseless allegations are made against senior Government officials, it

would cause incalculable harm not only to the officer in particular but to

the department that he belonged to, in general. He, particularly, referred

to the following observations in P. Sirajuddin

52

(para 17, page 601 of the

report):

“………..Before a public servant, whatever be his status, is publicly

charged with acts of dishonesty which amount to serious

misdemeanour or misconduct of the type alleged in this case and

a first information is lodged against him, there must be some

suitable preliminary enquiry into the allegations by a responsible

officer. The lodging of such a report against a person, specially

one who like the appellant occupied the top position in a

department, even if baseless, would do incalculable harm not

only to the officer in particular but to the department he

belonged to, in general.”

89. In our opinion, P. Sirajuddin

52

also emphasizes equality before

law. This decision, in our opinion, cannot be read as laying down the

proposition that the distinction can be made for the purposes of inquiry /

investigation of an offence of which public servants are accused based on

their status.

66

Page 67 90. It is pertinent to notice that in Manohar Lal Sharma

4

, the

learned Attorney General made a concession to the effect that in the event

of CBI conducting an inquiry, as opposed to an investigation into the

conduct of a senior government officer, no previous approval of the Central

Government is required since the inquiry does not have the same adverse

connotation that an investigation has. To that extent, Section 6-A, as it is,

does not survive. Insofar as investigation is concerned, an investigation

into a crime may have some adverse impact but where there are

allegations of an offence under the PC Act, 1988 against a public servant,

whether high or low, whether decision-maker or not, an independent

investigation into such allegations is of utmost importance and unearthing

the truth is the goal. The aim and object of investigation is ultimately to

search for truth and any law that impedes that object may not stand the test

of Article 14.

91. In the referral order, the contention of learned Solicitor General

has been noted with regard to inconsistency in the two judgments of this

Court in Vineet Narain

1

and K. Veeraswami

25

.

92. In K. Veeraswami

25

, this Court in para 28 (pages 693-694 of

the report) observed:

“28. … Section 6 is primarily concerned to see that prosecution for

the specified offences shall not commence without the sanction of

a competent authority. That does not mean that the Act was

intended to condone the offence of bribery and corruption by public

67

Page 68 servant. Nor it was meant to afford protection to public servant from

criminal prosecution for such offences. It is only to protect the

honest public servants from frivolous and vexatious prosecution.

The competent authority has to examine independently and

impartially the material on record to form his own opinion whether

the offence alleged is frivolous or vexatious. The competent

authority may refuse sanction for prosecution if the offence alleged

has no material to support or it is frivolous or intended to harass

the honest officer. But he cannot refuse to grant sanction if the

material collected has made out the commission of the offence

alleged against the public servant. Indeed he is duty-bound to

grant sanction if the material collected lend credence to the offence

complained of. There seems to be another reason for taking away

the discretion of the investigating agency to prosecute or not to

prosecute a public servant. When a public servant is prosecuted

for an offence which challenges his honesty and integrity, the issue

in such a case is not only between the prosecutor and the offender,

but the State is also vitally concerned with it as it affects the morale

of public servants and also the administrative interest of the State.

The discretion to prosecute public servant is taken away from the

prosecuting agency and is vested in the authority which is

competent to remove the public servant. The authority competent

to remove the public servant would be in a better position than the

prosecuting agency to assess the material collected in a

dispassionate and reasonable manner and determine whether

sanction for prosecution of a public servant deserves to be granted

or not.”

93. In Vineet Narain

1

, the above observations in K. Veeraswami

25

have been considered in paras 34 and 35 of the report (pages 259-260)

and the three-Judge Bench held that the position of Judges of High Courts

and the Supreme Court, who are constitutional functionaries, is distinct,

and the independence of judiciary, keeping it free from any extraneous

influence, including that from executive, is the rationale of the decision in K.

Veeraswami

25

. The Court went on to say: “…. In strict terms the Prevention

of Corruption Act, 1946 could not be applied to the superior Judges and,

therefore, while bringing those Judges within the purview of the Act yet

68

Page 69 maintaining the independence of judiciary, this guideline was issued as a

direction by the Court. The feature of independence of judiciary has no

application to the officers covered by the Single Directive. The need for

independence of judiciary from the executive influence does not arise in the

case of officers belonging to the executive…..”

94. The observations in K. Veeraswami

25

, as noted above, were

found to be confined to the Judges of the High Courts and the Supreme

Court, who are constitutional functionaries, and their position being distinct

and different from the Government officers. In our opinion, the Constitution

Bench decision in K. Veeraswami

25

has no application to the senior public

servants specified in Section 6-A. We have, therefore, no hesitation in

holding that the conclusion reached in para 34 in Vineet Narain

1

, in no

manner, can be said to be inconsistent with the findings recorded in para

28 of K. Veeraswami

25

.

95. Various provisions under different statutes were referred to by

Mr. L. Nageswara Rao where permission of the government is required

before taking cognizance or for institution of an offence. Section 197 of

Cr.P.C. was also referred to, which provides for protection to Judges and

public servants from prosecution except with the previous sanction by the

competent authority. It may be immediately stated that there is no similarity

between the impugned provision in Section 6-A of the DSPE Act and

69

Page 70 Section 197 of Cr.P.C. Moreover, where challenge is laid to the

constitutionality of a legislation on the bedrock or touchstone of

classification, it has to be determined in each case by applying well-settled

two tests: (i) that classification is founded on intelligible differentia and (ii)

that differentia has a rational relation with the object sought to be achieved

by the legislation. Each case has to be examined independently in the

context of Article 14 and not by applying any general rule.

96. A feeble attempt was made by Mr. K.V. Viswanathan, learned

Additional Solicitor General that Section 6-A must at least be saved for the

purposes of Section 13(1)(d)(ii) and (iii) of the PC Act, 1988. In our opinion,

Section 6-A does not satisfy the well-settled tests in the context of Article

14 and is not capable of severance for the purposes of Section 13(1)(d)(ii)

and (iii).

97. Having considered the impugned provision contained in

Section 6-A and for the reasons indicated above, we do not think that it is

necessary to consider the other objections challenging the impugned

provision in the context of Article 14.

98. In view of our foregoing discussion, we hold that Section 6-

A(1), which requires approval of the Central Government to conduct any

70

Page 71 inquiry or investigation into any offence alleged to have been committed

under the PC Act, 1988 where such allegation relates to (a) the employees

of the Central Government of the level of Joint Secretary and above and (b)

such officers as are appointed by the Central Government in corporations

established by or under any Central Act, government companies, societies

and local authorities owned or controlled by the Government, is invalid and

violative of Article 14 of the Constitution. As a necessary corollary, the

provision contained in Section 26 (c) of the Act 45 of 2003 to that extent is

also declared invalid.

99. Writ petitions are allowed as above.

.…...………..……………………...CJI.

(R.M. Lodha)

.…...………..……………………...J.

(A.K. Patnaik)

.…...………..……………………...J.

(Sudhansu Jyoti Mukhopadhaya)

.…...………..……………………...J.

(Dipak Misra)

.…...………..……………………...J.

(Fakkir Mohamed Ibrahim Kalifulla)

NEW DELHI

MAY 06, 2014.

71