SC sets aside AFT order, acquits retired Lt General in ration procurement case

Mar 24, 2022

New Delhi [India], March 24 : The Supreme Court on Wednesday acquitted a former Lieutenant General of Army from all charges, including irregularities in the procurement of ration by Army purchase organisation.
Lieutenant General (retd) SK Sahni was previously held guilty by the General Court Martial (GCM).
A bench of Justices L Nageswara Rao and B R Gavai also directed that he would be entitled to all pensionary and consequential benefits in accordance with law and the arrears of such benefits shall be computed and paid to him within three months.
The apex court quashed the Armed Forces Tribunal (AFT) order of dismissal from service against Lieutenant General Sahni, who was held guilty by GCM on certain charges and was sentenced cashiered and rigorous imprisonment for three years. The AFT, however, had held that three years' rigorous imprisonment was harsh and thus modified it to dismissal from service.
The top court also set aside the February 2011 order passed by the GCM.
The findings recorded by the AFT are "totally contrary" to the material placed on record, the bench stated in its judgment.
"We, therefore, find that the orders passed by the AFT as well as the GCM are not sustainable in law. The appeal of the appellants (Union of India) deserves to be dismissed," the bench said.
"The petitioner is acquitted of all the charges levelled against him. The petitioner would be entitled to all pensionary and consequential benefits in accordance with the law. The arrears of such benefits shall be computed and paid to the petitioner within a period of three months from the date of this judgment," it added
The judgement further stated, "The order dated February 18, 2011, passed by the GCM holding the petitioner (Lt. General) guilty and imposing penalty on him and the impugned order dated October 10, 2013, passed by the AFT are quashed and set aside."
Lieutenant General (retd) Sahni was represented in the top court by advocates KK Tyagi and Rajeev Kumar Bansal. Senior advocate colonel R. Balasubramanian appeared for the Central Government.
The verdict of the top court came on an appeal filed by the Centre and others challenging the orders passed by the AFT, Chandigarh regional bench, including the October 10, 2013 order which had reduced the sentence of three years rigorous imprisonment and cashiering imposed on Lt Gen (retd) Sahni to dismissal from the service as provided in section 71(e) of the Armed Forces Tribunal Act, 2007.
Sahni was commissioned in the Indian Army in December 1967 and was promoted to the rank of Lieutenant General in May 2003. Thereafter, he was appointed as the Director-General, Supplies and Transport with effect from February 1, 2005.
In its judgment, the bench noted that an anonymous complaint was received in the Directorate of Supplies and Transport on April 4, 2005, and later, a Court of Inquiry was ordered against the officer under the directions of the General Officer Commanding-in-Chief, Western Command, to investigate into seven allegations, including on procurement of 'kabuli chana' through contract finalised during the relevant period by the Army Purchase Organization.
The Court of Inquiry only recommended for award of recordable censure against him while recommending disciplinary action to other officials under the Army Act, 1950 and Army Rules, 1954.
Sahni's plea said that the records pertaining to the office of convening authority reveal that without any basis and rather against the recommendation of the Court of Inquiry his name was included in the list for disciplinary action on the dictates of an Army commander.
The judgement stated that on attaining the compulsory retirement age of 60 years, Sahni retired on September 30, 2006.
Sahni then moved the Delhi High Court seeking quashing of proceedings and recommendations of the Court of Inquiry and also the order of July 18, 2006, directing his attachment.
The High Court allowed his plea and later, the authority resorted to Rule 22 of the Army Rules and issued a fresh notice and ordered attachment under section 123 of the Army Act on August 31, 2007.
Lt General (Retd) Sahni was accused of irregularities in procuring rations for soldiers in Jammu and Kashmir, who were stationed in Siachen and other high altitude areas.
The case then reached AFT Delhi and on September 3, 2009, it held that resorting to Rule 22 of the Army Rules was totally unwarranted and illegal and the authority was directed to resort to the Court of Inquiry while permitting Lt. General Sahni to present his case.
Later, on February 18, 2011, the GCM found Lt. General Sahni guilty of certain charges and on January 13, 2012 the Chief of Army Staff confirmed the findings and sentence of the GCM. The officer thereafter filed an appeal before the AFT, Chandigarh against the GCM order. The AFT, Chandigarh held that the findings of the GCM against him were liable to be affirmed, however, modified sentencing of three years and cashiering to dismissal from service.
The officer then filed the case in Punjab and Haryana High Court and Centre and others approached the top court.