The Supreme Court, emphasizing the vital role of Indian Railways in national infrastructure, stressed on Thursday the importance of safeguarding the ticketing system from any attempts to undermine its stability.

A bench comprising Justices Dipankar Datta and Prashant Kumar Mishra was adjudicating two separate appeals involving allegations of fraud under Section 143 of the Railways Act, 1989. This provision prescribes penalties for unauthorized procurement and supply of railway tickets.

"The Indian Railways is a keystone of our country's infrastructure. It carries around 673 crore passengers annually and has a tremendous impact on the economy of this country. Any effort to disrupt the integrity and stability of the ticketing system has to be stopped on its tracks," the bench said.

The first appeal concerned a Kerala High Court order that quashed criminal proceedings under Section 143 against Mathew K. Cherian. Cherian was accused of fraudulently creating user IDs on the IRCTC portal to procure and sell railway tickets for profit, despite not being an authorized agent.

The Supreme Court ruled that Cherian, lacking authorization as a railway agent, should face prosecution under Section 143.

"Any breach has to be remedied by civil action and not criminal action. To sum up, Mathew not being an authorised agent has to face the proceedings against him while Ramesh, being an authorised agent, cannot be proceeded against under Section 143 of the Act for alleged breach of any of the terms and conditions of the contract. If, at all, he would be liable to face civil action," the bench held.

In the second appeal, J. Ramesh, an authorized agent, contested a Madras High Court decision refusing to quash criminal proceedings against him under the same section. Ramesh was accused of using multiple user IDs to supply e-tickets to various customers.

The Supreme Court quashed the proceedings against Ramesh, observing that Section 143 penalizes actions by unauthorized agents but does not explicitly cover unauthorized actions by authorized agents. The bench noted, “Even if the facts in the FIR are taken at face value, no offence under Section 143 can be attributed to Ramesh.”

The court recognized Section 143 as a tool to combat a social crime, reinforcing its importance in preserving the integrity of railway ticketing. It clarified, however, that its application is limited to the actions of unauthorized agents, as per the provision's wording.

The ruling underscores the judiciary's nuanced approach in interpreting penal provisions, ensuring they align with their legislative intent while safeguarding the fairness of criminal proceedings.