Full Judgment Text
1
Reportable
IN THE SUPREME COURT OF INDIA
| AL APPE | LLATE J |
|---|---|
CRIMINAL APPEAL NO. 1222 OF 2016
(Arising out of S.L.P. (Criminal) No. 7675 of 2015)
Sharat Babu Digumarti …Appellant(s)
Versus
Govt. of NCT of Delhi …Respondent(s)
J U D G M E N T
Dipak Misra, J.
JUDGMENT
Leave granted.
2. The appellant along one Avnish Bajaj and others was
arrayed as an accused in FIR No. 645 of 2004. After the
investigation was concluded, charge sheet was filed before the
learned Metropolitan Magistrate who on 14.02.2006 took
cognizance of the offences punishable under Sections 292 and
294 of the Indian Penal Code (IPC) and Section 67 of the
Page 1
2
Information Technology Act, 2000 (for short, “the IT Act”)
against all of them. Avnish Bajaj filed Criminal Misc. Case No.
| igh Cour | t of Del |
|---|
29.05.2008 came to the conclusion that prima facie case was
made out under Section 292 IPC, but it expressed the opinion
that Avinish Bajaj, the petitioner in the said case, was not
liable to be proceeded under Section 292 IPC and, accordingly,
he was discharged of the offence under Sections 292 and 294
IPC. However, he was prima facie found to have committed
offence under Section 67 read with Section 85 of the IT Act
and the trial court was directed to proceed to the next stage of
passing of order of charge uninfluenced by the observations
JUDGMENT
made in the order of the High Court.
3. Being grieved by the aforesaid order, Avnish Bajaj
preferred Criminal Appeal No. 1483 of 2009. The said appeal
was tagged with Ebay India Pvt. Ltd. v. State and Anr.
(Criminal Appeal No. 1484 of 2009). The said appeals were
heard along with other appeals that arose from the lis relating
Page 2
3
to interpretation of Sections 138 and 141 of the Negotiable
Instruments Act, 1881 (for short, “NI Act”) by a three-Judge
| Aneeta H | ada v. |
|---|
1
Tours (P) Ltd. .
4. Regard being had to the pleas raised by Avnish Bajaj and
also the similarity of issue that arose in the context of NI Act,
the three-Judge Bench stated the controversy that emerged for
consideration thus:-
“2. In Criminal Appeals Nos. 1483 and 1484 of
2009, the issue involved pertains to the
interpretation of Section 85 of the Information
Technology Act, 2000 (for short “the 2000 Act”)
which is in pari materia with Section 141 of the Act.
Be it noted, a Director of the appellant Company
was prosecuted under Section 292 of the Penal
Code, 1860 and Section 67 of the 2000 Act without
impleading the Company as an accused. The
initiation of prosecution was challenged under
Section 482 of the Code of Criminal Procedure
before the High Court and the High Court held that
offences are made out against the appellant
Company along with the Directors under Section 67
read with Section 85 of the 2000 Act and, on the
said base, declined to quash the proceeding.
JUDGMENT
3. The core issue that has emerged in these two
appeals is whether the Company could have been
1 (2008) 13 SCC 703
Page 3
4
| of Sectio | n 141 o |
|---|
thus:-
“58. Applying the doctrine of strict construction, we
are of the considered opinion that commission of
offence by the company is an express condition
precedent to attract the vicarious liability of others.
Thus, the words “as well as the company” appearing
in the section make it absolutely unmistakably clear
that when the company can be prosecuted, then
only the persons mentioned in the other categories
could be vicariously liable for the offence subject to
the averments in the petition and proof thereof. One
cannot be oblivious of the fact that the company is a
juristic person and it has its own respectability. If a
finding is recorded against it, it would create a
concavity in its reputation. There can be situations
when the corporate reputation is affected when a
Director is indicted.”
JUDGMENT
6. As far as the appeal of Avnish Bajaj is concerned, the
Court referred to Section 85 of the IT Act which is as follows:-
“ 85. Offences by companies .—(1) Where a person
committing a contravention of any of the provisions
of this Act or of any rule, direction or order made
thereunder is a company, every person who, at the
time the contravention was committed, was in
charge of, and was responsible to, the company for
the conduct of business of the company as well as
Page 4
5
the company, shall be guilty of the contravention
and shall be liable to be proceeded against and
punished accordingly:
| nothing c<br>ny such<br>that the | ontaine<br>person li<br>contra |
|---|
(2) Notwithstanding anything contained in
sub-section (1), where a contravention of any of the
provisions of this Act or of any rule, direction or
order made thereunder has been committed by a
company and it is proved that the contravention has
taken place with the consent or connivance of, or is
attributable to any neglect on the part of, any
director, manager, secretary or other officer of the
company, such director, manager, secretary or
other officer shall also be deemed to be guilty of the
contravention and shall be liable to be proceeded
against and punished accordingly.”
7. Interpreting the same, the Court opined thus:-
JUDGMENT
“64. Keeping in view the anatomy of the aforesaid
provision, our analysis pertaining to Section 141 of
the Act would squarely apply to the 2000
enactment. Thus adjudged, the Director could not
have been held liable for the offence under Section
85 of the 2000 Act. Resultantly, Criminal Appeal
No. 1483 of 2009 is allowed and the proceeding
against the appellant is quashed. As far as the
Company is concerned, it was not arraigned as an
accused. Ergo, the proceeding as initiated in the
existing incarnation is not maintainable either
against the company or against the Director. As a
logical sequitur, the appeals are allowed and the
Page 5
6
proceedings initiated against Avnish Bajaj as well as
the Company in the present form are quashed.”
| n before | the t |
|---|
proceedings against him. The trial court partly allowed the
application and dropped the proceedings against the appellant
for offences under Section 294 IPC and Section 67 of the IT
Act, however, proceedings under Section 292 IPC were not
dropped, and vide order 22.12.2014, the trial court framed the
charge under Section 292 IPC.
9. Being aggrieved by the order framing of charge, the
appellant moved the High Court in Criminal Revision No. 127
of 2015 and the learned Single Judge by the impugned order
JUDGMENT
declined to interfere on the ground that there is sufficient
material showing appellant’s involvement to proceed against
him for the commission of the offence punishable under
Section 292 IPC. It has referred to the allegations made
against him and the responsibility of the appellant and
thereafter referred to the pronouncements in P. Vijayan v.
Page 6
7
2
State of Kerala and Anr. and Amit Kapoor v. Ramesh
3
Chander and Anr. which pertain to exercise of revisional
| nder Sec | tion 228 |
|---|
Procedure.
10. The central issue that arises for consideration is whether
the appellant who has been discharged under Section 67 of
the IT Act could be proceeded under Section 292 IPC.
11. Be it noted, on the first date of hearing, Dr. A.M. Singhvi,
learned senior counsel appearing for the appellant urged that
the dispute raised require interpretation of various provisions
of the IT Act and bearing that in mind, the Court thought it
appropriate to hear the learned Attorney General for the Union
JUDGMENT
of India. In the course of hearing, the Court was assisted by
Mr. Mukul Rohatgi, learned Attorney General for India, Mr.
Ranjit Kumar, learned Solicitor General and Mr. R.K. Rathore,
learned counsel for the Union of India.
2 (2010) 2 SCC 398
3 (2012) 9 SCC 460
Page 7
8
12. It is not disputed that the appellant is the senior
manager of the intermediary and the managing director of the
| Hada (s | upra). |
|---|
charge that has been framed against the appellant is in
respect of Section 292 IPC. It is submitted by Dr. Singhvi that
the appellant could not have been proceeded under Section
292 IPC after having been discharged under Section 67 of the
IT Act. Mr. Rohatgi, learned Attorney General assisting the
Court submitted that Section 67 of the IT Act is a special
provision and it will override Section 292 IPC. He has made a
distinction between the offences referable to the internet and
the offences referable to print/conventional media or whatever
JUDGMENT
is expressed in Section 292 IPC. Mr. D.S. Mahra, learned
counsel appearing for the NCT of Delhi, would contend that
publishing any obscene material as stipulated under Section
67 of the IT Act cannot be confused or equated with sale of
obscene material as given under Section 292 IPC, for the two
offences are entirely different. It is urged by him that an
Page 8
9
accused can be charged and tried for an offence independently
under Section 292 IPC even if he has been discharged under
| try for th | e offenc |
|---|
after discharge from Section 67 of the IT Act. Learned counsel
would further contend that the role of person in charge of the
intermediary is extremely vital as it pertains to sale of obscene
material which is punishable under Section 292 IPC and not
under Section 67 of the IT Act. It is put forth by the learned
counsel that the plea advanced by the appellant is in the
realm of technicalities and on that ground, the order of charge
should not be interfered with.
13. Dr. Singhvi has taken us through the legislative history
JUDGMENT
of proscription of obscenity in India. He has referred to the
Obscene Books and Pictures Act, 1856. The primary object of
the said Act was to prevent the sale or exposure of obscene
books and picture. It prohibited singing of obscene songs, etc.
to the annoyance of others. Any person found indulging in the
said activities was liable to pay a fine of Rs. 100/- or to
Page 9
10
imprisonment up to 3 years or both. Be it noted, learned
senior counsel has also referred to the Obscene Publications
| C in its o | riginal sh |
|---|
“ 292. Sale, etc., of obscene books, etc .—Whoever
—
(a) sells, lets to hire, distributes, publicly exhibits or
in any manner puts into circulation, or for purposes
of sale, hire, distribution, public exhibition or
circulation, makes, produces or has in his
possession any obscene book, pamphlet, paper,
drawing, painting, representation or figure or any
other obscene object whatsoever, or
(b) imports, exports or conveys any obscene object
for any of the purposes aforesaid, or knowing or
having reason to believe that such object will be
sold, let to hire, distributed or publicly exhibited or
in any manner put into circulation, or
JUDGMENT
(c) takes part in or receives profits from any
business in the course of which he knows or has
reason to believe that any such obscene objects are
for any of the purposes aforesaid, made, produced,
purchased, kept, imported, exported, conveyed,
publicly exhibited or in any manner put into
circulation, or
(d) advertises or makes known by any means
whatsoever that any person is engaged or is ready
to engage in any act which is an offence under this
Page 10
11
section, or that any such obscene object can be
procured from or through any person, or
| his secti | on, |
|---|
Exception.—This section does not extend to any
book, pamphlet, paper, writing, drawing or painting
kept or used bona fide for religious purposes or any
representation sculptured, engraved, painted or
otherwise represented on or in any temple, or on
any car used for the conveyance or idols, or kept or
used for any religious purpose.”
15. The constitutional validity of Section 292 IPC was
4
challenged in Ranjit D. Udeshi v. State of Maharashtra .
Assailing the constitutional validity, it was urged before the
JUDGMENT
Constitution Bench that the said provision imposes
incompatible and unacceptable restrictions on the freedom of
speech and expression guaranteed under Section 19(1)(a) of
the Constitution. The Constitution Bench opined as follows:-
“7. No doubt this article guarantees complete
freedom of speech and expression but it also makes
an exception in favour of existing laws which
4 AIR 1965 SC 881
Page 11
12
| ression<br>gned by | of or<br>India in |
|---|
JUDGMENT
x x x x
| 9. | The former he thought so because it dealt with | |
|---|---|---|
| excretory functions and the latter because it dealt | ||
| -with sex repression. (See Sex, Literature and | ||
| Censorship pp. 26 201). Condemnation of obscenity | ||
| depends as much upon the mores of the people as | ||
| upon the individual. It is always a question of |
Page 12
13
| degree or as the lawyers are accustomed to say, of<br>where the line is to be drawn. It is, however, clear<br>that obscenity by itself has extremely "poor value in<br>the-propagation of ideas, opinions and information<br>of public interest or profit." When there is<br>propagation of ideas, opinions and information of<br>public interest or profit, the approach to the<br>problem may become different because then the<br>interest of society may tilt the scales in favour of<br>free speech and expression. It is thus that books on<br>medical science with intimate illustrations and<br>photographs, though in a sense immodest, are not<br>considered to be obscene but the same illustrations<br>and photographs collected in book form without the<br>medical text would certainly be considered to be<br>obscene. Section 292, Indian Penal Code deals with<br>obscenity in this sense and cannot thus be said to<br>be invalid in view of the second clause of Article 19.”<br>. Eventually, the Court upheld the constitutional valid | degree or as the lawyers are accustomed to say, of | ||
|---|---|---|---|
| where the line is to be drawn. It is, however, clear | |||
| that obscenity by itself has extremely "poor value in | |||
| the-propagation of ideas, opinions and information | |||
| of public interest or profit." When there is | |||
| propagation of ideas, opinions and information of | |||
| public interest | or profit, the approach to the | ||
| problem may become different because then the | |||
| interest of society may tilt the scales in favour of | |||
| free speech and expression. It is thus that books on | |||
| medical science with intimate illustrations and | |||
| photographs, though in a sense immodest, are not | |||
| considered to be obscene but the same illustrations | |||
| and photographs collected in book form without the | |||
| medical text would certainly be considered to be<br>obscene. Section 292, Indian Penal Code deals with | |||
| obscenity in this sense<br>be invalid in view of the | and cannot thus be said to<br>second clause of Article 19.” | ||
the said provision. After the pronouncement by the
JUDGMENT
Constitution Bench, the legislature amended Section 292
which presently reads thus:-
“ 292. Sale, etc., of obscene books, etc .—(1) For
the purposes of sub-section (2), book, pamphlet,
paper, writing, drawing, painting, representation,
figure or any other object, shall be deemed to be
obscene if it is lascivious or appeals to the prurient
interest or if its effect, or (where it comprises two or
more distinct items) the effect of any one of its
items, is, if taken as a whole, such as to tend to
Page 13
14
deprave and corrupt person who are likely, having
regard to all relevant circumstances, to read, see or
hear the matter contained or embodied in it.
(2) Whoever—
(b) imports, exports or conveys any obscene object
for any of the purposes aforesaid, or knowing or
having reason to believe that such object will be
sold, let to hire, distributed or publicly exhibited or
in any manner put into circulation, or
(c) takes part in or receives profits from any
business in the course of which he knows or has
reason to believe that any such obscene objects are,
for any of the purposes aforesaid, made, produced,
purchased, kept, imported, exported, conveyed,
publicly exhibited or in any manner put into
circulation, or
JUDGMENT
(d) advertises or makes known by any means
whatsoever that any person is engaged or is ready
to engage in any act which is an offence under this
section, or that any such obscene object can be
procured from or through any person, or
(e) offers or attempts to do any act which is an
offence under this section,
Page 14
15
| housand<br>or subs<br>of either | rupees,<br>equent<br>descripti |
|---|
Exception.—This section does not extend to—
(a) any book, pamphlet, paper, writing, drawing,
painting, representation or figure—
(i) the publication of which is proved to be justified
as being for the public good on the ground that
such book, pamphlet, paper, writing, drawing,
painting, representation or figure is in the interest
of science, literature, art or learning or other objects
of general concern, or
(ii) which is kept or used bona fide for religious
purposes;
JUDGMENT
(b) any representation sculptured, engraved, painted
or otherwise represented on or in—
(i) any ancient monument within the meaning of the
Ancient Monuments and Archaeological Sites and
Remains Act, 1958 (24 of 1958), or
(ii) any temple, or on any car used for the
conveyance of idols, or kept or used for any
religious purpose.”
Page 15
16
17. At the outset, we may clarify that though learned counsel
for the appellant has commended us to certain authorities
| sion is n | ot covere |
|---|
we are not disposed to enter into the said arenas. We shall
only restrict to the interpretative aspect as already stated. To
appreciate the said facet, it is essential to understand certain
provisions that find place in the IT Act and how the Court has
understood the same. That apart, it is really to be seen
whether an activity emanating from electronic form which may
be obscene would be punishable under Section 292 IPC or
Section 67 of the IT Act or both or any other provision of the IT
Act.
JUDGMENT
18. On a perusal of material on record, it is beyond dispute
that the alleged possession of material constitutes the
electronic record as defined under Section 2(1)(t) of the IT Act.
The dictionary clause reads as follows:-
“Section 2(1)(t). electronic record” means data,
record or data generated, image or sound stored,
received or sent in an electronic form or micro film
or computer generated micro fiche;”
Page 16
17
Thus, the offence in question relates to electronic record.
5
19. In Shreya Singhal v. Union of India , the Court was
| utional | validity o |
|---|
Act and the two-Judge Bench declared the said provision as
unconstitutional by stating thus:-
“85. These two cases illustrate how judicially
trained minds would find a person guilty or not
guilty depending upon the Judge’s notion of what is
“grossly offensive” or “menacing”. In Collins case ,
both the Leicestershire Justices and two Judges of
the Queen’s Bench would have acquitted Collins
whereas the House of Lords convicted him.
Similarly, in the Chambers case, the Crown Court
would have convicted Chambers whereas the
Queen’s Bench acquitted him. If judicially trained
minds can come to diametrically opposite
conclusions on the same set of facts it is obvious
that expressions such as “grossly offensive” or
“menacing” are so vague that there is no
manageable standard by which a person can be said
to have committed an offence or not to have
committed an offence. Quite obviously, a
prospective offender of Section 66-A and the
authorities who are to enforce Section 66-A have
absolutely no manageable standard by which to
book a person for an offence under Section 66-A.
This being the case, having regard also to the two
English precedents cited by the learned Additional
Solicitor General, it is clear that Section 66-A is
unconstitutionally vague.
JUDGMENT
5 (2015) 5 SCC 1
Page 17
18
| en such<br>t may be | right a<br>imposed |
|---|
20. Thereafter the Court referred to Kameshwar Prasad
8 9
State of Bihar and Central Prison v. Ram Manohar Lohia
and came to hold as follows:-
“94. These two Constitution Bench decisions bind
us and would apply directly on Section 66-A. We,
therefore, hold that the section is unconstitutional
also on the ground that it takes within its sweep
protected speech and speech that is innocent in
nature and is liable therefore to be used in such a
way as to have a chilling effect on free speech and
would, therefore, have to be struck down on the
ground of overbreadth.”
JUDGMENT
21. While dealing with obscenity, the Curt referred to Ranjit
D. Udeshi (supra) and other decisions and opined thus:-
“48. This Court in Ranjit D. Udeshi v. State of
Maharashtra (supra) took a rather restrictive view of
what would pass muster as not being obscene. The
Court followed the test laid down in the old English
10
judgment in Hicklin case which was whether the
6 Chintaman Rao v. State of M.P ., AIR 1951 SC 118
7 State of Madras v. V.G. Row , AIR 1952 SC 196
8 1962 Supp. (3) SCR 369 : AIR 1962 SC 1166
9 AIR 1960 SC 633
10 R v. Hicklin, (1868) LR 3 QB 360
Page 18
19
| as well<br>eneral o | as in ou<br>f Door |
|---|
49. In a recent judgment of this Court, Aveek
12
Sarkar v. State of W.B. , this Court referred to
English, US and Canadian judgments and moved
away from the Hicklin (supra) test and applied the
contemporary community standards test.
50. What has been said with regard to public order
and incitement to an offence equally applies here.
Section 66-A cannot possibly be said to create an
offence which falls within the expression “decency”
or “morality” in that what may be grossly offensive
or annoying under the section need not be obscene
at all—in fact the word “obscene” is conspicuous by
its absence in Section 66-A.”
JUDGMENT
22. In Devidas Ramachandra Tuljapurkar v. State of
13
Maharashtra and Ors analyzing the said judgment another
11 (2006) 8 SCC 433
12 (2014) 4 SCC 257
13 (2015) 6 SCC 1
Page 19
20
two-Judge Bench has opined that as far as test of obscenity is
concerned, the prevalent test is the contemporary community
| with the | issue, w |
|---|
applied when personalities like Mahatma Gandhi are alluded.
The Court held:-
“142. When the name of Mahatma Gandhi is
alluded or used as a symbol, speaking or using
obscene words, the concept of “degree” comes in. To
elaborate, the “contemporary community standards
test” becomes applicable with more vigour, in a
greater degree and in an accentuated manner. What
can otherwise pass of the contemporary community
standards test for use of the same language, it
would not be so, if the name of Mahatma Gandhi is
used as a symbol or allusion or surrealistic voice to
put words or to show him doing such acts which are
obscene. While so concluding, we leave it to the poet
to put his defence at the trial explaining the manner
in which he has used the words and in what
context. We only opine that view of the High Court
pertaining to the framing of charge under Section
292 IPC cannot be flawed.”
JUDGMENT
23. Reference to Shreya Singhal (supra) is only to show that
in the said case the Court while dealing with constitutional
validity of Section 66-A of the IT Act noticed that the said
provision conspicuously did not have the word “obscene”. It
Page 20
21
did not say anything else in that regard. In the case at hand,
it is required to be seen in which of the provision or both an
| the prese | nt incar |
| ction 292 IPC in the present incarnation. Section 67 o<br>Act which provides for punishment for publishin<br>ansmitting obscene material in electronic form read<br>lows:-<br>“67. Punishment for publishing or transmitting<br>obscene material in electronic form. – Whoever<br>publishes or transmits or causes to be published or<br>transmitted in the electronic form, any material<br>which is lascivious or appeals to the prurient<br>interest or if its effect is such as to tend to deprave<br>and corrupt persons who are likely, having regard to<br>all relevant circumstances, to read, see or hear the<br>matter contained or embodied in it, shall be<br>punished on first conviction with imprisonment of<br>either description for a term which may extend to<br>JUDGMENT<br>three years and with fine which may extend to five<br>lakh rupees and in the event of second or<br>subsequent conviction with imprisonment of either<br>description for a term which may extend to five<br>years and also with fine which may extend to ten<br>lakh rupees.” | |||
|---|---|---|---|
| “67. Punishment for publishing or transmitting<br>obscene material in electronic form. – Whoever | |||
| publishes or transmits<br>transmitted in the ele | or causes to be published or<br>ctronic form, any material | ||
| which is lascivious o | r appeals to the prurient | ||
| interest or if its effect i | s such as to tend to deprave | ||
| and corrupt persons wh | o are likely, having regard to | ||
| all relevant circumstances, to read, see or hear the | |||
| matter contained or embodied in it, shall be | |||
| punished on first conviction with imprisonment of | |||
| either description for a term which may extend to | |||
| JUDGMENT<br>three years and with fine which may extend to five | |||
| lakh rupees and in the event of second or | |||
| subsequent conviction with imprisonment of either | |||
| description for a term which may extend to five | |||
| years and also with fine which may extend to ten | |||
| lakh rupees.” |
24. Section 67A stipulates punishment for publishing or
transmitting of material containing sexually explicit act, etc.,
in electronic form. Section 67B provides for punishment for
Page 21
22
publishing or transmitting of material depicting children in
sexually explicit act, etc., in electronic form. It is as follows:-
| “67B. Punishment for publishing or transmitting<br>of material depicting children in seually explicit<br>act, etc., in electronic form. – Whoever –<br>(a)publishes or transmits or causes to be published<br>or transmitted material any electronic form which<br>depicts children engaged in sexually explicit act<br>or conduct; or<br>(b) creates text or digital images, collects, seeks,<br>browses, downloads, advertises, promotes,<br>exchanges or distributes material in any<br>electronic form depicting children in obscene or<br>indecent or sexually explicit manner; or<br>(c) cultivates, entices or induces children to online<br>relationship with one or more children for and on<br>sexually explicit act or in a manner that may<br>offend a reasonable adult on the computer | “ | 67B. Punishment for publishing or transmitting | |
|---|---|---|---|
| of material depicting children in seually explicit | |||
| act, etc., in electronic form. | – Whoever |
JUDGMENT
(d)facilitates abusing children online; or
(e) records in any electronic form own abuse or that
of others pertaining to sexually explicit act with
children,
shall be punished on first conviction with
imprisonment of either description for a term which
may extend to five years and with a fine which may
extend to ten lakh rupees and in the event of second
or subsequent conviction with imprisonment of
either description for a term which may extend to
Page 22
23
seven years and also with fine which may extend to
ten lakh rupees:
| aper, w<br>or figure | riting,<br>in electr |
|---|
(i) the publication of which is proved to be
justified as being for the public good on the
ground that such book, pamphlet, paper,
writing drawing, painting representation or
figure is in the interest of science, literature,
art or learning or other objects of general
concern; or
(ii) which is kept or used for bona fide heritage or
religious purposes.
Explanation.-For the purpose of this section
“children” means a person who has not completed
the age of 18 years.”
25. Section 69 of the IT Act provides for power to issue
JUDGMENT
directions for interception or monitoring or decryption of any
information through any computer resource. It also carries a
penal facet inasmuch as it states that the subscriber or
intermediary who fails to comply with the directions issued
under sub-section (3) shall be punished with imprisonment for
a term which may extend to seven years and shall also be
liable to fine.
Page 23
24
26. We have referred to all these provisions of the IT Act only
to lay stress that the legislature has deliberately used the
| Act that | occurs in |
|---|
intermediaries not to be liable in certain cases. Learned
counsel has also relied on Shreya Singhal (supra) as to how
the Court has dealt with the challenge to Section 79 of the IT
Act. The Court has associated the said provision with
exemption and Section 69A and in that context, expressed
that:-
“121. It must first be appreciated that Section 79 is
an exemption provision. Being an exemption
provision, it is closely related to provisions which
provide for offences including Section 69-A. We have
seen how under Section 69-A blocking can take
place only by a reasoned order after complying with
several procedural safeguards including a hearing
to the originator and intermediary. We have also
seen how there are only two ways in which a
blocking order can be passed—one by the
Designated Officer after complying with the 2009
Rules and the other by the Designated Officer when
he has to follow an order passed by a competent
court. The intermediary applying its own mind to
whether information should or should not be
blocked is noticeably absent in Section 69-A read
with the 2009 Rules.
JUDGMENT
Page 24
25
| ble acces<br>t otherw | s to that<br>ise it wo |
|---|
123. The learned Additional Solicitor General
informed us that it is a common practice worldwide
for intermediaries to have user agreements
containing what is stated in Rule 3(2). However,
Rule 3(4) needs to be read down in the same
manner as Section 79(3)( b ). The knowledge spoken
of in the said sub-rule must only be through the
medium of a court order. Subject to this, the
Information Technology (Intermediaries Guidelines)
Rules, 2011 are valid.”
27. We have referred to the aforesaid aspect as it has been
JUDGMENT
argued by Dr. Singhvi that the appellant is protected under
the said provision, even if the entire allegations are accepted.
Page 25
26
According to him, once the factum of electronic record is
admitted, Section 79 of the IT Act must apply ipso facto and
| gest and | keeping |
|---|
internet world where service providers of platforms do not
control and indeed cannot control the acts/omissions of
primary, secondary and tertiary users of such internet
platforms, protects the intermediary till he has the actual
knowledge. He would contend that Act has created a separate
and distinct category called ‘originator’ in terms of Section 2(1)
(z)(a) under the IT Act to which the protection under Section
79 of the IT Act has been consciously not extended. Relying
on the decision in Shreya Singhal (supra), he has urged that
JUDGMENT
the horizon has been expanded and the effect of Section 79 of
the IT Act provides protection to the individual since the
provision has been read down emphasizing on the conception
of actual knowledge. Relying on the said provision, it is
further canvassed by him that Section 79 of the IT Act gets
automatically attracted to electronic forms of publication and
Page 26
27
transmission by intermediaries, since it explicitly uses the
non-obstante clauses and has an overriding effect on any
| Section | s 67, 79 |
|---|
provisions, according to Dr. Singhvi, constitute a holistic
trinity. In this regard, we may reproduce Section 81 of the IT
Act, which is as follows:-
“81. Act to have overriding effect.- The provisions of
this Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law
for the time being in force.
Provided that nothing contained in this Act shall
restrict any person from exercising any right
conferred under the Copyright Act 1957 or the
Patents Act 1970.”
JUDGMENT
The proviso has been inserted by Act 10 of 2009 w.e.f.
27.10.2009.
28. Having noted the provisions, it has to be recapitulated
that Section 67 clearly stipulates punishment for publishing,
transmitting obscene materials in electronic form. The said
provision read with Section 67A and 67B is a complete code
Page 27
28
relating to the offences that are covered under the IT Act.
Section 79, as has been interpreted, is an exemption
| has be | en expa |
|---|
Shreya Singhal (supra) and we concur with the same.
Section 81 also specifically provides that the provisions of the
Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law for the time being in
force. All provisions will have their play and significance, if
the alleged offence pertains to offence of electronic record. It
has to be borne in mind that IT Act is a special enactment. It
has special provisions. Section 292 of the IPC makes offence
sale of obscene books, etc. but once the offence has a nexus or
JUDGMENT
connection with the electronic record the protection and effect
of Section 79 cannot be ignored and negated. We are inclined
to think so as it is a special provision for a specific purpose
and the Act has to be given effect to so as to make the
protection effective and true to the legislative intent. This is
the mandate behind Section 81 of the IT Act. The additional
Page 28
29
protection granted by the IT Act would apply. In this regard,
14
we may refer to Sarwan Singh and Anr. v. Kasturi Lal .
| learance | ) Act, 19 |
|---|
the provisions of the said Act and the rules made thereunder
shall have effect notwithstanding anything inconsistent
therewith contained in any other law. The Delhi Rent Control
Act, 1958 also contained non-obstante clauses. Interpreting
the same, the Court held:-
“When two or more laws operate in the same field
and each contains a non-obstante clause stating
that its provisions will override those of any other
law, stimulating and incisive problems of
interpretation arise. Since statutory interpretation
has no conventional protocol, cases of such conflict
have to be decided in reference to the object and
purpose of the laws under consideration. A piquant
situation, like the one before us, arose in Shri Ram
15
Narain v. Simla Banking & Industrial Co. Ltd. the
competing statutes being the Banking Companies
Act, 1949 as amended by Act 52 of 1953, and the
Displaced Persons (Debts Adjustment) Act, 1951.
Section 45-A of the Banking Companies Act, which
was introduced by the amending Act of 1953, and
Section 3 of the Displaced Persons Act, 1951
contained each a non-obstante clause, providing
that certain provisions would have effect
JUDGMENT
14 (1977) 1 SCC 750
15 AIR 1956 SC 614
Page 29
30
| g: |
|---|
“It is, therefore, desirable to determine the
overriding effect of one or the other of the
relevant provisions in these two Acts, in a given
case, on much broader considerations of the
purpose and policy underlying the two Acts and
the clear intendment conveyed by the language of
the relevant provisions therein” (p. 615)
As indicated by us, the special and specific purpose
which motivated the enactment of Section 14-A and
Chapter III-A of the Delhi Rent Act would be wholly
frustrated if the provisions of the Slum Clearance Act
requiring permission of the competent authority were
to prevail over them. Therefore, the newly introduced
provisions of the Delhi Rent Act must hold the field
and be given full effect despite anything to the
contrary contained in the Slum Clearance Act.”
JUDGMENT
29. In Talcher Municipality v. Talcher Regulated Market
16
Committee , the Court was dealing with the question
whether the Orissa Municipal Act, 1950 or Orissa Agricultural
Produce Markets Act, 1956 should apply. Section 4(4) of the
16 (2004) 6 SCC 178
Page 30
31
1956 Act contained a non-obstante clause. In that context,
the Court opined:-
| ver, con<br>ection 4(<br>g anythi | tains spe<br>4) of th<br>ng to the |
|---|
30. In Ram Narain (supra), the Court faced a situation
where both the statutes, namely, Banking Companies Act,
1949 and the Displaced Persons (Debts Adjustment) Act, 1951
contained non-obstante clause. The Court gave primacy to the
JUDGMENT
Banking Companies Act. To arrive at the said conclusion, the
Court evolved the following principle:-
“ 7 . … It is, therefore, desirable to determine the
overriding effect of one or the other of the relevant
provisions in these two Acts, in a given case, on
much broader considerations of the purpose and
policy underlying the two Acts and the clear
17 (2003) 7 SCC 110
18 (2003) 7 SCC 589
19 (2004) 9 SCC 755
Page 31
32
intendment conveyed by the language of the
relevant provisions therein.”
| is Court | while |
|---|
statutes, namely, Section 13 of Special Court (Trial of Offences
Relating to Transactions in Securities) Act, 1992 and Section
32 of Sick Industrial Companies (Special Provisions) Act, 1985,
observed as follows:-
“Where there are two special statutes which contain
non obstante clauses the later statute must prevail.
This is because at the time of enactment of the later
statute, the Legislature was aware of the earlier
legislation and its non obstante clause. If the
Legislature still confers the later enactment with a
non obstante clause it means that the Legislature
wanted that enactment to prevail. If the Legislature
does not want the later enactment to prevail then it
could and would provide in the later enactment that
the provisions of the earlier enactment continue to
apply.”
JUDGMENT
32. The aforesaid passage clearly shows that if legislative
intendment is discernible that a latter enactment shall prevail,
the same is to be interpreted in accord with the said intention.
We have already referred to the scheme of the IT Act and how
20 (2001) 3 SCC 71
Page 32
33
obscenity pertaining to electronic record falls under the
scheme of the Act. We have also referred to Sections 79 and
| cover a | criminal |
|---|
gets out of the net of the IPC and in this case, Section 292. It
is apt to note here that electronic forms of transmission is
covered by the IT Act, which is a special law. It is settled
position in law that a special law shall prevail over the general
and prior laws. When the Act in various provisions deals with
obscenity in electronic form, it covers the offence under
Section 292 IPC.
21
33. In Jeewan Kumar Raut v. CBI , in the context of
Transplantation of Human Organs Act, 1994 (TOHO) treating
JUDGMENT
it as a special law, the Court held:-
“22. TOHO being a special statute, Section 4 of the
Code, which ordinarily would be applicable for
investigation into a cognizable offence or the other
provisions, may not be applicable. Section 4 provides
for investigation, inquiry, trial, etc. according to the
provisions of the Code. Sub-section (2) of Section 4,
however, specifically provides that offences under any
other law shall be investigated, inquired into, tried
and otherwise dealt with according to the same
21 (2009) 7 SCC 526
Page 33
34
provisions, but subject to any enactment for the time
being in force regulating the manner or place of
investigating, inquiring into, tried or otherwise
dealing with such offences.
| g a speci<br>th offenc | al Act an<br>es ther |
|---|
And again:-
“27. The provisions of the Code, thus, for all intent
and purport, would apply only to an extent till
conflict arises between the provisions of the Code and
TOHO and as soon as the area of conflict reaches,
TOHO shall prevail over the Code. Ordinarily, thus,
although in terms of the Code, the respondent upon
completion of investigation and upon obtaining
remand of the accused from time to time, was
required to file a police report, it was precluded from
doing so by reason of the provisions contained in
Section 22 of TOHO.”
JUDGMENT
34. In view of the aforesaid analysis and the authorities
referred to hereinabove, we are of the considered opinion that
the High Court has fallen into error that though charge has
not been made out under Section 67 of the IT Act, yet the
appellant could be proceeded under Section 292 IPC.
35. Consequently, the appeal is allowed, the orders passed
by the High Court and the trial court are set aside and the
Page 34
35
criminal prosecution lodged against the appellant stands
quashed.
………………. J
(Dipak Misra)
….……………… J
(Praffula C. Pant)
New Delhi
December 14, 2016
JUDGMENT
Page 35