Supreme Court Sets Aside Conviction & Dismissal From Service Of Retired Army Lt General In Alleged Ration Scam

The Supreme Court on Wednesday set aside the conviction and dismissal from service of former Lt Gen SK Sahni for allegations relating to procurement of ration by Army purchase organisation. The bench of Justices L Nagswara Rao and BR Gavai set aside the conviction and dismissal of service while considering a criminal appeal preferred by Union of India assailing order dated 10th October 2013 passed by Armed Forces Tribunal, Chandigarh Regional Bench at Chandimandir ("AFT") dated 10th October 2013. In the impugned order, the AFT had reduced the sentence of three years rigorous imprisonment and cashiering imposed on the Lt. Gen. (Retd.) S.K. Sahni to dismissal from the service u/s Section 71(e) of the Armed Forces Tribunal Act, 2007 ("AFT Act"). The bench was also considering a transferred case preferred by Lt Gen SK Sahni which was originally before Punjab and Haryana High Court challenging the General Court Martial ("GCM") on February 18, 2011 had held Sahni guilty of first, third, fourth, fifth, seventh and ninth charges. While dismissing Union's appeal and allowing officer's appeal, the bench in Union of India & Ors v Lt Gen SK Sahni noted that the AFT had come to a finding that the officer had committed the offence under Section 52(e) of the Army Act which says "does any other thing with intent to defraud, or to cause wrongful gain to one person or wrongful loss to another person."However, the Supreme Court wondered how the AFT could make an inference that the officer made attempts to cause wrongful gain when it had come to a specific finding that he had not committed any fraud or any act which resulted in actual loss or wrongful gain. "We are afraid as to whether such a finding would be sustainable in law. The learned AFT has specifically come to a finding that the respondent has not committed any fraud or did not commit any act which resulted in actual loss or wrongful gain to any person. We are unable to appreciate as to on what basis the learned AFT comes to a conclusion that the acts lead to an inference that the attempts were made to cause a wrongful gain. The finding as recorded by the learned AFT is totally contrary to the material placed on record. We, therefore, find that the orders passed by the learned AFT as well as the GCM are not sustainable in law. The appeal of the appellants deserves to be dismissed and the Transferred Case (Criminal) No. 1 of 2017 filed by the petitioner (respondent in Criminal Appeal No. 2169 of 2014) be allowed." The bench directed that the retired Lieutenant General would be entitled to all pensionary and consequential benefits in accordance with law. Directions were also issued to compute and pay the arrears of such benefits to him within three months. Factual Background Lt Gen SK Sahni was commissioned in the Indian Army on 16th December 1967 and earned promotions and was promoted to the rank of Lieutenant General in May 2003. The respondent was thereafter appointed as Director General, Supplies and Transport ("DGST") with effect from 1st February 2005. An anonymous complaint was received in the Directorate of Supplies and Transport ("Directorate") on 4th April 2005. On 8th April 2005, the complaint was forwarded and a request was made to the respondent to examine the complaint and forward his comments on the file on priority for perusal of the Directorate. A Court of Inquiry was ordered against the respondent under the directions of General Officer CommandinginChief, Western Command ("GOCinC"), to investigate into the following seven allegations. One of the allegation was with regards to procurement of kabuli chana through a contract finalized during the relevant period by the Army Purchase Organization. Although the Court of Inquiry only recommended for award of recordable censure against the respondent while recommending disciplinary action qua other officials under the Army Act, 1950 but the direction of Army Commander, respondent's name was included in the list for disciplinary action. On retirement, the respondent preferred a writ before the Delhi High Court seeking for quashing and setting aside of the proceedings and recommendations of the Court of Inquiry in terms of order dated 26th May 2005 and order dated 18th July 2006 directing attachment of the respondent. The High Court of Delhi on January 11, 2007 allowed the writ petition. The appellants however instead of granting opportunity to the respondent, issued a fresh notice and passed an order for attachment. Aggrieved, the respondent approached the Delhi High Court. The case was transferred to AFT, New Delhi. The AFT while declaring appellant's order for attachment as illegal directed the appellants to resort to Court of Inquiry after giving opportunity to the respondent. On September 22nd, 2009 the GOC in C directed reconvening/reassembling of the Court of Inquiry and on April 12, 2010 directed ...

Supreme Court Sets Aside Conviction & Dismissal From Service Of Retired Army Lt General In Alleged Ration Scam

Shruti Kakkar

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