High CourtDivision BenchAppeal dismissed

N. Naveen Kumar and Ors. v. State of A.P.

Case / Petition Number:Criminal Appeal No. 1627 of 2008
Neutral Citation:[2008] 14 S.C.R. 728

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • P. Sathasivam
Judgment Date
2008-10-17
Court Decision / Holding
The Supreme Court dismissed the appeal. It affirmed the High Court’s view that the inherent powers under Cr.P.C. s. 482 do not permit a review of its own judgment in these circumstances, while noting that the appellants may participate in the auction when conducted. The decision effectively upholds the order directing sale of assets and rejects substitution by deposit, thereby leaving the confiscation process intact.
Final Disposition
Appeal dismissed

Parties to the Case

Appellants / Petitioners

  • N. Naveen Kumar and Ors.

Respondents

  • State of A.P.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sarvesh Bisaria
  • • Anil Nag

Counsels for Respondents

  • • Altaf Fathima
  • • D. Bharathi Reddy

Case Synopsis & Summary

This is a criminal appeal arising from a conviction under Sections 5(1)(e) read with 5(2) of the Prevention of Corruption Act, 1947 (old Act) for possessing pecuniary resources disproportionate to known sources of income. The Trial Court sentenced the accused to one year of simple imprisonment, plus a fine, and directed four identified assets to be sold at public auction with the sale proceeds confiscated to the State. During the pendency of the appeal in the Andhra Pradesh High Court, the accused died; his children sought permission to deposit a sum in lieu of the auction of the assets, arguing that the present value of the properties should govern confiscation and that the High Court could exercise inherent powers to review or modify its order. The High Court rejected the application, holding that Section 482 Cr.P.C. does not empower the Court to review its own judgment. The appellants challenged this decision before the Supreme Court. The Court held that the present value of the properties is the relevant measure and that the appellants may participate in the auction when held; however, it dismissed the appeal, effectively upholding the High Court’s ruling and leaving the auction process to proceed. The decision restates the limits of inherent powers under Cr.P.C. and confirms that relief by deposit cannot substitute for auction in this context.

Provisions of Law Cited

Prevention of Corruption Act, 1947, ss. 5(1)(e) and 5(2)

Legal Doctrines & Maxims

  • Inherent powers of the High Court to review its own judgments (Cr.P.C. s. 482)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that because they are prepared to deposit the amount determined by the court, the High Court should permit delivery of the confiscated properties in favor of the legal heirs as a substitute for the auction. They argued that Cr.P.C. section 482 authorizes the inherent powers of the High Court to review its own judgments, and the present case presents special circumstances arising from the death of the accused during the pendency of the appeal. They urged that the public interest would be served by the heirs fulfilling the monetary obligation and avoiding sale of family property with sentimental value, and that present value should govern confiscation rather than the value at the time of seizure. They maintained that the High Court erred in ruling that Section 482 Cr.P.C. cannot empower a review and urged the Court to exercise its inherent powers to revisit and modify the order rather than allow auction.

Contentions of Respondents

The respondents argued that the matter had become functus officio after dismissal of the main appeal and that Section 482 Cr.P.C. does not authorize a court to review its own judgment. They contended that the sale of assets constitutes the proper mechanism for confiscation and that the court should not substitute the auction with deposit-based relief. They asserted that the present value question does not alter the settled remedy and that allowing deposit in lieu of auction would undermine the State’s interest in realising the value through sale. They emphasized that the High Court’s view—lack of inherent power to review—should stand and the appeal ought to be dismissed with no further relief to the appellants.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A _r_ ## [2008] 14 S.C.R. 728 ## N. NAVEEN KUMAR AND ORS. ~- _v._ STATE OF A.P. (Criminal Appeal No. 1627 of 2008) B OCTOBER 17, 2008 [DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.] _Prevention of Corruption Act, 1947; Ss.5(1)(e) and 5(2):_ _Pecuniary resource disproportionate to known source of_ c _income_ - Possession _of, by accused government servant_ - _Sentencing the accused to undergo simple imprisonment for 1 year; trial Court directed to sell by auction item_ Nos. _1 to 4 of assets and sale proceeds therefrom to be confiscated to State_ - _During pendency of the appeal before High Court, convict_ D _died_ - _Filing of application by children of the deceased for grant of permission to deposit the appropriate amount in lieu of auction of certain items of assets_ - _Dismissed by High Court holding that_ s. _482 Cr.PC. not empowered the Court to review its own order- Correctness of- Held: Correct_ - _However; It_ is E _open to appellants to participate in the auction_ sale _of the assets in question_ - _Code of Criminal Procedure, 1973_ - _s.482._ c E +- .... _Code of Criminal Procedure, 1273_ - _S.482_ - _Inherent power of High Court- Invoking of, to review its own judgment._ F Accused, a government servant was allegedly possessing the pecuniary resources disproportionate to the known source of income. He was charged for committing the offence under Section 5 (1)(e) read with Section 5 (2) of the Prevention of Corruption Act, 1947. Trial Court G[found ][him ][guilty ][of ][committing ][the offence and sentenced ] him to undergo simple imprisonment for one year, to pay a fine of Rs.20,0001- and directed that item No 1 to 4 of the assets shall be sold in public auction and the sale proceeds s.hall be confiscated to the State. The accused pre728 H '¥ N. NAVEEN KUMAR AND ORS. _v._ STATE OF A.P. 729 ·' ~ ;. 'f ""'Y" _--i_ ferred criminal appeal. During pendency of the appeal A before the High Court, the appellant died. Appeal was dismissed by ~he High Court. Appellants, children of the deceased, filed an application praying for grant of permission to deposit the amount as considered appropriate in lieu of the confiscation of Item Nos. 1 to 4 of the assets, B which were directed to be sold in public auction. The High Court dismissed the application holding that Section 482 Cr.P.C. did not empower the Court to review its own judgment by exercising inherent powers. Hence the present appeal. c Dismissing the appeal, the Court HELD: 1.1 The High Court has rightly noted that it is the present value of the properties which is of relevance and not the value of the assets at the relevant point of D time of seizure. [Para - 7] [732-A] 1.2 It is open to the appellants to participate in the auction for sale of the properties in question as and when held. [Para - 7] [732-8] ,_ CRIMINALAPPELLATE JURISDICTION: Criminal Appeal[E ] No. 1627 of 2008 From the Judgment and Order dated 27.4.2006 of the High Court of Judicature, Andhra Pradesh at Hyderabad in Criminal Misc. Petition No. 24 7 of 2006 in Crl. Appeal No. 1524 of 1998 F _,,__I_ Sarvesh Bisaria and Anil Nag for the Appellant. Altaf Fathima and D. Bharathi Reddy for the Respondents. The Judgment of the Court was delivered by G DR. ARIJIT PASAYAT, J 1. Leave granted. =1' _l.J \:_ ..-· -:i. 2. Challenge in this appeal is to the order passed by a learned Single Judge of the Andhra Pradesh High Court dismissing the application filed by the appellants. H 730 SUPREME COURT REPORTS [2008] 14 S.C.R. j ## 3. Background facts in a nutshell are as follows; A The appellants are the sons and daughters of the accused N. Ramakrishnaiah in C.C. No.64of1992 on the file of the Principal Special Judge, for SPE & ACB Cases, Hyderabad. He was charged for the offence under Section 5 (1 )(e) read with Section 5 (2) of the Prevention of Corruption Act, 194 7 (in short the 'Old Act') possessing the pecuniary resources disproportionate to the known sources of income. The accused worked as Executive Engineer as on the date of search of his house and other properties. Evidence was adduced and the Special Judge found the accused guilty, convicted him for the above mentioned offence and sentenced him to undergo simple imprisonment for one year and to pay a fine _of_ Rs.20,000/- in default to suffer simple imprisonment for three months. The Special Judge also directed that item No 1 to 4 of the assets shall be sold in public auction and the sale proceeds shall be confiscated to the State. The accused, being aggrieved by the conviction and the sentence imposed by the Special Judge preferred Criminal Appeal No.1524 of 1998. The High Court dismissed the appeal. As noted above, during the pendency of the appeal before the High Court, the appellant died, therefore, the sentence of imprisonment stood abated against the appellant. B c D E Prayer before the High Court _wo.:s_ that the appellants may be permitted to deposit entire amount of Rs.6,37,850.92 on such sum as r:nay be considered appropriate in lieu of the confiscaF tion of Item Nos.1 to 4 of the assets possessed by the accused in the case. It was pointed out that Item No.1 was a house property. The appellants had sentimental attachment to the properties. Stand of the State was that since Criminal Appeal was dismissed there was no scope for passing the order as the Court G had become functus officio. The appellants' stand was that Section 482 of the Code of Criminal Procedure, 1973 (in short 'Cr.P.C.') permitted the course to be adopted. The High Court did not find any substance in the plea and it was held that Section 482 Cr.P.C. did not empower the Court to review its own H[judgment by exercising inherent powers. ] ·~ -~ I ~-.., _t-_ > _y_ " _-tt_ \ , ;+~ ... .. - N. NAVEEN KUMAR AND ORS. _v._ STATE OF A.P. 731 ~ 8 _-i_ ' c 4. Learned counsel for the appellants submitted that since A the appellants are willing to deposit money there is no reason as to why the High Court should not permit release of the properties in favour of the legal heir of deceased accused. Undisputedly, when the offence was committed Section 5(2) of the Old Act was in force which reads as follows: "5(2)-Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to seven years and shall also be liable to fine: Provided that the Court may, for any special reasons recorded in writing, impose a sentence of imprisonment of less than one year." J~ _-f_ 5. The corresponding Section 13(2) of the Prevention of Corruption Act, 1988 (in short the 'Act') reads as follows: "Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall be not less than one year but which may extend to seven years and shall also be liable to fine." D E 6. According to the appellants in an appropriate case the fine amount as imposed can be enhanced and the custodial sentence can be reduced. We need not go into that question because Section 16 of the Act reads as follows: _"'1_ ~ _ _., ·+- _r_ .. "Matters to be taken into consideration for fixing fine- Where[F ] a sentence of fine is imposed under sub-section (2) of Section 13 or Section 14, the court fixing the amount of the fine shall take into consideration the amount or the value of the property, if any, which the accused person has obtained by committing the offence or where the conviction G is for an offence referred to in clause (c) of sub-section (1) of section 13, the pecuniaty resources or property _referred_ to in that clause for which the accused person is unable to account satisfactorily." H 732 SUPREME COURT REPORTS [2008] 14 S.C.R. A 7. The High Court has rightly noted that it is the present value of the properties which is of relevance and not the value of the assets at the relevant point of time of seizure. We find no substance in the plea of the appellants as canvassed in this appeal. It is open to the appellants to particjpate in the auction B for sale of the properties in question as and when held. A 8. The appeal is dismissed. S.K.S. Appeal dismissed.