STATE OF ANDHRA PRADESHversusV. VASUDEVA RAO
- Citation
- 2003 INSC 630
- Decided
- 13 November 2003
- Disposal
- Appeal(s) allowed
- Bench
- DORAISWAMY RAJU
Holding
Section 4(1) of the Prevention of Corruption Act imposes a compulsory legal presumption of acceptance of gratification when the accused is proved to have received money, and this presumption applies irrespective of direct evidence of demand, thereby upholding the conviction.
Summary
The State of Andhra Pradesh prosecuted V. Vasudeva Rao, an Assistant Controller, for demanding a bribe to prevent his transfer and for accepting the money, which he claimed was a hand loan. A trap was arranged, the accused was caught with the money, and the complainant died before he could be examined. The trial court convicted Rao under IPC s.161 and the Prevention of Corruption Act, 1947 s.5(2) read with s.5(1)(d); the High Court acquitted him, holding that no evidence of demand existed and that the statutory presumption under Section 4 could not be applied. On appeal, the Supreme Court held that Section 4(1) creates a compulsory legal presumption that the accused accepted gratification when he is proved to have received money, even without direct proof of demand, and that this presumption applied. Consequently, the conviction was reinstated, but the sentence was reduced only to the statutory minimum of one year, as long pendency and the accused’s age did not qualify as "special reasons" for further reduction.
Issues considered
- The applicability and nature of the presumption under Section 4(1) of the Prevention of Corruption Act, 1947 in cases where the accused has received money but no direct evidence of demand exists.
- Whether the hand‑loan explanation defeats the statutory presumption of acceptance of gratification.
- Whether the sentence can be reduced below the statutory minimum on account of the case’s long pendency and the accused’s advanced age.
Legislation cited
- Code of Criminal Procedure, 1973s. 313
- Indian Evidence Act, 1872s. 114, s. 4, s. 508, s. 509
- Indian Penal Code, 1860s. 161
- Prevention of Corruption Act, 1947s. 4(1), s. 5(1)(d), s. 5(2)
Subjects
Judgment
A STATE OF ANDHRA PRADESH
v.
V. VASUDEVA RAO
NOVEMBER 13, 2003
B [DORAISWAMY RAJU AND ARJJIT PASAYAT, JJ.]
Penal Code, 1860/Prevention of Corruption Act, 1947-Section 1611
Sections 4(1) and 5(2) rlw Section 5(1}(d)-1//egal gratification-
C Complaint-Trap arranged-Accused caught with tainted amount-
Prosecution-Acceptance of money admitted, but the same pleaded to be
return of hand-loan-Non-examination of complainant as witness due to his
death-Conviction by trial Court-Acquittal by High Court on the ground
that in absence of evidence to prove acceptance of money, presumption not
available-On appeal, held: Accused liable to be convicted as receipt and
D recovery of tainted money is accepted-Presumption u/s 4 being legal
presumption, is compulsory presumption-For drawing such presumption the
only condition is that it should be proved that accused had accepted or
agreed to accept any gratification-Such condition need not be proved
through direct evidence-Evidence Act, 1872-Sections 4 and 114.
E Sentencing
Case of acceptance of illegal gratification-sentence-Criteria for-
Plea for lesser sentence in view of long pendency of case and advance age
of accused-Held: Jn such cases there is no scope for any leniency-Long
F pendency cannot be considered a special reason-In view of age of accused
sentence reduced to minimum.
Words and Phrases: 'Presumption '-Meaning of in the context ofSection
4(1) of Prevention of Corruption Act, 1947.
Respondent-accused was prosecuted for offences punishable u/s 61 IPC
G and Section 5(2) r/w Section S(l)(d) of Prevention of Corruption Act, 1947. It
was alleged that the respondent had demanded a bribe from complainant-his
subordinate staff. On complaint, a trap was arranged and the accused was
caught with the tainted amount. Accused pleaded innocence and took the plea
that the said amount was by way of return of hand-loan to the complainant.
H 500 •
STATEOFA.P.v. V.V.RAO 501
Due to death of the complainant, he could not be examined as a witness during A
trial. Trial court convicted the accused holding that though complainant could
not be eumined there was sufficient evidence that the accused demanded bribe
and he received the tainted amount on the date of trap from the Complainant;
and that the plea of hand-loan was not established. On appeal, High Court
acquitted the accused holding that the statement of accused u/s 313 Cr.P.C.
did not relieve the prosecution of its duty to prove acceptance of money; that B
since there was no evidence to prove acceptance of money, the presumption
available u/s 4 of the Act was not applicable; that statement u/s 313 Cr.P.C.
does not become evidence.
In appeal to this Court, appellant-State contended that presumption u/s C
4 of the Act was available particularly when there was no denial about recovery
of the money; and that even if presumption was not available, the Court could
presume that in ordinary course most probable inference was supportable by
the evidence on record.
Respondent-accused contended that when the evidence on record does D
not establish any demand, mere recovery would not suffice; that for the
presumption u/s 4 of the Act, the amount must have been received as
gratification, and since there was no evidence in that regard, presumption
u/s 4 was not applicable; and that in view of the fact that the case was pending
since long and the accused was of old age, the sentence should be reduced.
E
Allowing the appeal, the Court
HELD: 1.1 Accused was rightly convicted under Section 161 IPC and
Section 5(2) read with Section 5(l)(d) of Prevention of Corruption Act, 1947
by the trial Court. Illustration (a) to Section 114 of the Evidence Act, 1872
can be used in the present context as well, when prosecution brought reliable F
materials that there was recovery of money from the accused. In fact the
receipt and recovery is accepted. The other factor is the acceptability of the
plea of loan, which the High Court itself has not held cogent or credible.
(509-F-G; 513-FJ
G
Raghubir Singh v. State of Punjab, (1974) 4 SCC 560; C.I. Emden v.
State ofUttar Pradesh, AIR (1960) SC 548 and V.D. Jhagan v. State ofUttar
Pradesh, (1966) 3 SCR 736, relied on.
Hazari Lal v. State (Delhi Admn.), (1980) 2 SCC 390; Madhukar
Bhaskarrao Joshi v. State of Maharashtra (2000] 8 SCC 571; Mohmoodkhan H
502 SUPREME COURT REPORTS [2003] SUPP. 5 S.C.R.
A Mahboobkhan Pathan v. State of Maharashtra, (1997( IO SCC 600 and The
State of Assam v. Krishna Rao, (1973( 3 SCC 227, referred to.
Black's Law Dictionary; Oxford Advance Learner's Dictionary ofCurrent
English, referred to.
B 1.2. Expressions "may presume" and "shall presume" are defined in
Section 4 of the Indian Evidence Act, 1872. The presumptions falling under
the former category are compendiously known as "factual presumptions" or
"discretionary presumptions" and those falling under the latter as "legal
presumptions" or "compulsory presumptions". When the expression "shall
be presumed" is employed in Section 4(1) of the Act, it must have the same
C import of compulsion.
1.3. When Section 4(1) deals with legal presumption, it is to be
understood as in terrorem i.e. in tone of a command that it has to be presumed
that the accused accepted the gratification as a motive or reward for doing or
forbearing to do any official act etc., if the condition envisaged in the former
D part of the Section is satisfied. The only condition for drawing such a legal
presumption under Section 4 is that during trial it should be proved that the
accused has accepted or agreed to accept any gratification. The Section does
not say that the said condition should be satisfied through direct evidence. Its
only requirement is that it must be proved that the accused has accepted or
E agreed to accept gratification. Direct evidence is one of the modes through
which a fact can be proved. But that is not the only mode envisaged in the
Evidence Act (508-D-E]
M Narsinga Rao v. State ofA.P., (2001) I SCC 691, referred to.
1.4. Proofof the fact depends upon the degree of probability of its having
F existed. The standard required for reaching the supposition is that of a prudent
man acting in any important matter concerning him. (508-F)
Hawkins v. Powells Tillery Steam Coal Co. Ltd., (1911) I KB 988,
referred to.
G 1.5. In reaching the conclusion the Court can use the process of
inferences to be drawn from facts produced or proved. Such inferences are
akin to presumptions in law. Law gives absolute discretion to the Court to
presume the existence of any fact, which it thinks likely to have happened. In
that process the Court may have regard to common course of natural events,
H human conduct, public or private business vis-a-vis the facts of the particular
STATE OF A.P. v. V.V. RAO 503
case. The discretion is clearly envisaged in Section 114 of the Evidence Act. A
[508-H; 509-A-Bl
1.6. Presumption is an inference of a certain fact drawn from other
proved facts. While inferring the existence of a fact from another, the Court
is only applying a process of intelligent reasoning which the mind of a prudent
man would do u,nder similar circumstances. Presumption is not the final B
conclusion to be drawn from other facts. But it could as well as be final if it
remains undisturbed later. Presumption in law of evidence is a rule indicating
the state of shifting the burden of proof. From a certain fact or facts the Court
can draw an inference and that would remain until such inference is either
disproved or dispelled.1509-8-DI C
1.7. For the purpose of reaching one conclusion the Court can rely on
a factual presumption. Unless the presumption is disproved or dispelled or
rebutted the Court can treat the presumption as tantamounting to proof.
However, as a caution of prudence it may be unsafe to use that presumption to
draw yet another discretionary presumption unless there is a statutory D
compulsion. [509-D-El
Suresh Budharmal Kalani v. State of Maharashtra, (1998[ 7 SCC 337,
relied on.
2. In case involving acceptance of illegal gratification there is no scope E
for any leniency. No power whatsoever is given to the Court to impose a
sentence less than the minimum, even if there are special reasons for doing
so. If any public servant is given the impression that if he si.;cceeds in
protracting the proceedings that would help him to have the advantage of
getting a very light sentence even if the case ends in conviction its fallout
would afford incentive to public servants who are susceptible to corruption to F
indulge in such nefarious practices with immunity. Increasing the fine after
reducing the imprisonment to a nominal period can also defeat the purpose
as the corrupt public servant could easily raise the fine amount through the
same means. In the present case, the mere fact that this case was pending for
such a long time cannot be considered as a "special reason". If that is to be G
regarded as sufficient for reducing the minimum sentence mandated by
Parliament the legislative exercise would stand defeated. Considering the age
of the accused the sentence is reduced to the minimum of one year without
touching the fine imposed, bet there is no justifiable reason to reduce it below
the minimum. [513-G; 514-B, F-H; 515-A. B-CI
H
504 SUPREME COURT REPORTS (2003) SUPP. 5 S.C.R.
A CRIMINAL APP ELLA TE JURISDICTION : Criminal Appeal No. 208
of 1997.
From the Judgment and Order dated 3.7.96 of the Andhra Pradesh High
Court in Crl. A. No. 800 of 1993.
B Ms. T. Anamika and G. Prabhakar for the Appellant.
R. Mohan, G. Ramakrishna Prasad, Md. Wasay Khan and S. Udaya
Kumar Sagar for the Respondent.
The Judgment of the Court was delivered by
C ARIJIT PASAYAT, J. It is a strange co-incidence that the Prevention
of Corruption Act, 1947 (hereinafter referred to as the 'Act') was enacted in
the year of our country's independence.
Corruption is one of the most talked about subjects today in the country
since it is believed to have penetrated into every sphere of activity. It is
D described as wholly widespread and spectacular.
Corruption as such has reached dangerous heights and dangerous
potentialities. The word 'corruption' has wide connotation and embraces
almost all the spheres of our day to day life the world over. In a limited sense
it connotes allowing decisions and actions of a person to be influenced not
E by rights or wrongs of a cause, but by the prospects of monetary gains or
other selfish considerations. Avarice is a common frailty of mankind, and
while Robert Walpole's observation that every man has a price, may be a little
generalized, yet it cannot be gainsaid that it is not far from truth. Burke
cautioned "Among a people generally corrupt, liberty cannot last long".
F In this appeal, the State of Andhra Pradesh has questioned legality of
judgment rendered by a learned Single Judge of Andhra Pradesh High Court
directing acquittal of the respondent-V. Vasudeva Rao (hereinafter referred to
as the 'accused') who faced trial for alleged commission of offences punishable
under Section 161 of the Indian Penal Code, 1860 (for short the '!PC') and
G Section 5(2) read with Section 5 (l)(d) of the Act. He was sentenced to
undergo rigorous imprisonment for two years and to pay a fine of Rs. 5,000
on each count by the trial Judge i.e. the Principal Special Judge for SPE and
ACB Cases, City Civil Court, Hyderabad.
Prosecution version which led to the trial of the case is essentially as
H follows:
STATE OF A.P. v. V.V. RAO[PASAYAT, J.) 505
The accused respondent was substantively posted as Assistant A
Controller, Weights and Measures in the year 1988-89. He was kept in charge
of superior post of Deputy Controller, Weights and Measures, Warangal in
the year 1988. He was working as such between the period 31.1.1988 to
8.6.1988 and was thus a public servant within the meaning of Section 21 IPC.
Complainant-D. Raghunath was working as Inspector of Weights and Measures B
at Warangal between August 1985 to April 1988. On 3.4.1988, the accused
sent for the complainant-Raghunath and hinted that his transfer from Warangal
to Karimnagar was on the cards. Complainant-Raghunath requested him not
to transfer him to Karimnagar as he had personal difficulties. It is alleged that
the accused thereupon demanded a bribe of Rs.I 0,000 for retaining him at
Warangal itself. Complainant-Raghunath showed his inability to pay such a C
large amount. The accused then reacted by saying that in case the said
amount was not paid to him, the complainant-Raghunath would be transferred.
He next asked Raghunath to give choice of posting in case he was to be
transferred from Warangal. Complainant then requested that if at all he was
to be.transferred he may be posted to Jangaon. For such desired posting the
accused made a demand of Rs. 2,000 as a bribe from the complainant. D
Complainant agreed to pay the said amount. On 13.4.1988 Raghunath received
posting orders accordingly. The accused on the very same night made a
demand of Rs. 2,000 from the complainant. Complainant-Raghunath requested
that he may be allowed to make the payment in instalments and, promised that
he would pay Rs. 1,000 in first instalment and the remaining would be paid E
during the next visit of the complainant to Warangal. In reality, complainant
was not willing to make any payment of bribe amount; and therefore went and
lodged a complaint on 14.5.1988 with DSP of Anti Corruption Bureau in the
matter. The D.S.P. then arranged for a trap for catching the accused and
accordingly the usual procedure was adopted, and complainant was asked to
bring the amount for being paid to the accused, on the next day in the office F
of DSP. After the currency notes were produced by the complainant on the
next day in office, they were smeared with phenolphthalein powder after
selector the mediator's name. Later, complainant accompanied by policy party
inclusive of mediator went towards the office of accused. Complainant entered
in and passed the amount to the accused, and thereafter gave a pre-planned G
signal to the raiding party. The raiding party then entered and the tainted
amount was found to be possessed by the accused. After usual panchanama
etc. the case was registered against the accused and he was prosecuted
before the learned Special Judge for ACB cases at Hyderabad. Thirteen
witnesses were examined to substantiate the accusations.
H
506 SUPREME COURT REPORTS (2003) SUPP. 5 S.C.R.
A The accused pleaded innocence. His defence was that he had never
taken or accepted any amount by way of bribe. The amount of Rs. 1,000 was
advanced by way of hand loan to the complainant-Raghunath who died some
times around July, 1990. There was no acceptance of any bribe money. Four
witnesses were examined to further the plea of innocence. As noted above,
B the complainant-Raghunath had died and as a result he could not be examined
as a witness at the time of trial before the trial Court.
Learned Special Judge on the basis of evidence adduced held that
though the complainant-Raghunath could not be examined there was sufficient
evidence otherwise to prove that th.! accused had tnade demand of the bribe
C amount as alleged by the prosecution and he in fact received the tainted
amount of Rs. 1,000 on the date of trap from the complainant-Raghunath. The
plea that he had given a hand loan was held to have not been established.
The conviction and sentence were challenged in appeal before the High
Court.
D The High Court came to hold that there was no material to show that
any demand was made for the amount as bribe. It was therefore observed that
Section 4 of the Act has no application. The evidence of PW-6, the Panch
and that of the concerned D.S.P. (PW-I I) was found not sufficient to further
the prosecution version. It was noted that as per the evidence of Panch (PW-
6) and that of the DSP (PW-11) the signal was given by the deceased-
E Raghunath at about 9.50 a.m. Both of them had stated in their evidence that
.they have left the DSP's office at about 9.05 a.m. According to the High Court,
the complainant-Raghunath must have been inside the office ohhe appellant
for considerable length of time and there is absolutely no evidence as to what
was going on during all this period of more than 15 to 20 minutes. Though
p it was held that the theory of hand loan as advanced by the accused is not
convincing and may not be accepted, yet the prosecution was required to
establish by cogent and convincing evidence that the accused had demanded
the amount and that towards such demand the decoy-witness had gone and
paid the amount and it was accepted as such. Further the High Court observed
that though there was no explanation offered for the presence of
G phenolphthalein powder that was ._not sufficient to hold the accused guilty.
Finally, it was observed that the prosecution was not relieved of its
duty to prove acceptance of money by accused merely because the accused
stated in his explanation that the amount seized was towards re-payment of
H loan. The proof of prosecution case must precede the stage of examination
STATE OF A.P. v. V.V. RAO[PASAYAT,J.] 507
of accused and that there was no evidence to prove acceptance of money by A
the appellant the presumption available under Section 4 was still born and
what was stated in the statement of the accused under Section 313 of the
Code of Criminal Procedure, 1973 (for short the 'Code') does not become
evidence. With these findings, the conviction and sentence were set aside.
In appeal, learned counsel for the State submitted that the approach of B
the High Court is erroneous. The presumption under Section 4 of the Act was
clearly available particularly when there was no denial about recovery of the
money. In fact the positive stand of the accused was that the money had been
received by him, but as an act of receiving back the money advanced. It was
further submitted that even if presumption is not available the Court can C
presume that in ordinary course most probable inference was supportable by
the evidence on record.
In response, learned counsel for the accused submitted that the High
Court's conclusions are on terra firma. When the evidence on record does not
establish any demand mere recovery would not suffice. The High Court has D
also analysed the factual position to conclude that presence of the
phenolphthalein powder is not an incriminating circumstance. What is important
for the purpose of the presumption under Section 4 of the Act is that the
amount must have been received as gratification. There is no evidence in that
regard.
E
Reliance was placed on V.K. Sharma v. State (Delhi Admn.), [1975] l
SCC 784, Sita Ram v. The State ofRajasthan, [1975] 2 SCC 227 andSuraj Mal
v. State (Delhi Admn.), [1979] 4 SCC 725 to contend that mere recovery in the
absence of any evidence to show payment of money was not sufficient. Mere
recovery without proof of its payment by or on behalf of the complainant F
would not bring in application of Section 4 of the Act.
For appreciating rival stands it would be proper to quote Section 4(1)
of the Act, which reads as follows:
"4.(1) Presumption where public servant accepts gratification other G
than legal remuneration.-( 1) Where in any trial or an offence
punishable under Section 161 or Section 165 of the IPC or of an
offence referred to in clause (a) or clause (b) of sub-section (I) of
Section 5 of this Act punishable under sub-section (2) thereof, it is
proved that an accused person has accepted or obtained, or has
agreed to accept or attempted to obtain, for himself or for any other H
508 SUPREME COURT REPORTS [2003] SUPP. 5 S.C.R.
A person any gratification (other than legal remuneration) or any valuable
thing from any person, it shall be presumed unless the contrary is
proved that he accepted or obtained, or agreed to accept or attempted
to obtain, that gratification or that valuable thing, as the case may be,
as a motive or reward such as is mentioned in the said Section 161,
or, as the case may be, without consideration or for a consideration
B which he knows to be inadequate." Before proceeding further, we may
point out that the expressions "may presume" and "shall presume" are
defined in Section 4 of the Indian Evidence Act, 1872 (in short the
'Evidence Act'). The presumptions falling under the former category
are compendiously known as "factual presumptions" or "discretionary
c presumptions" and those falling under the latter as "legal
presumptions" or "compulsory presumptions". When the expression
"shall be presumed" is employed in Section 4(1) of the Act, it must
have the same import of compulsion.
When the sub-section deals with legal presumption, it is to be understood
D as in terrorem i.e. in tone of a command that it has to be presumed that the
accused accepted the gratification as a motive or reward for doing or forbearing
to do any official act etc., if the condition envisaged in the former part of the
section is satisfied. The only condition for drawing such a l1:gal presumption
under Section 4 is that during trial it should be proved that the accused has
E accepted or agreed to accept any gratification. The Section does not say that
the said condition should be satisfied through direct evidence. Its only
requirement is that it must be proved that the accused has accepted or agreed
to accept gratification. Direct evidence is one of the modes through which a
fact can be proved. But that is not the only mode envisaged in the Evidence
Act. (See M Narsinga Rao v. State of A.P., [2001] I SCC 691.
F
Proof of the fact depends upon the degree of probability of its having
existed. The standard required for reaching the supposition is that of a
prudent man acting in any important matter concerning him. Fletcher Moulton
L.J. in Hawkins v. Powells Tillery Steam Coal Co. Ltd., (1911) I KB 988
observed as follows:
G
"Proof does not mean proof to rigid mathematical demonstration,
because that is impossible; it must mean such evidence as would
induce a reasonable man to come to a particular conclusion".
The said observation has stood the test of time and can now be
H followed as the standard of proof. In reaching the conclusion the Court can
STATE OF A.P. v. V.V. RAO[PASAYAT,J.) 509
use the process of inferences to be drawn from facts produced or proved. A
Such inferences are akin to presumptions in law. Law gives absolute discretion
to the Court to presume the existence of any fact which it thinks likely to have
happened. In that process the Court may have regard to common course of
natural events, human conduct, public or private business vis-a-vis the facts
of the particular case. The discretion is clearly envisaged in Section 114 of B
the Evidence Act.
Presumption is an inference of a certain fact drawn from other proved
facts. While inferring the existence of a fact from another, the Court is only
applying a process of intelligent reasoning which the mind of a prudent man
would do under similar circumstances. Presumption is not the final conclusion C
to be drawn from other facts. But it could as well be final if it remains
undisturbed later. Presumption in law of evidence is a rule indicating the stage
of shifting the burden of proof. From a certain fact or facts the Court'°Cah draw
an inference and that would remain until such inference is either disproved
or dispelled.
D
For the purpose of reaching one conclusion the Court can rely on a
factual presumption. Unless the presumption is disproved or dispelled or
rebutted the Court can treat the presumption as tantamounting to proof.
However, as a caution of prudence we have to observe that it may be unsafe
to use that presumption to draw yet another discretionary presumption unless>
there is a statutory compulsion. This Court has indicated so in Suresh E
Budharmal Kalani v. State ofMaharashtra, [1998) 7 SCC 337 "A presumption
can be drawn only from facts and not from other presumptions by a.process
of probable and logical reasoning".
Illustration (a) to Section 114 of the Evidence Act says that the Court F
may presume that "a man who is in the possession of stolen goods soon after
the theft is either the thief or has received the goods knowing them to be
stolen, unless he can account for his possession". That illustration can
profitably be used in the present context as well when prosecution brought
reliable materials that there was recovery of money from the accused. In fact
the receipt and recovery is accepted. The other factor is the acceptability of G
the plea of loan, which the High Court itself has not held cogent or credible.
. We may note that a three-Judge Bench in Raghubir Singh v. State of
Punjab, [1974) 4 SCC 560 held that the very fact that the accused was in
possession of the marked currency notes against an allegation that he demanded
and received the amount is "res ipsa loquitur". H
510 SUPREME COURT REPORTS [2003] SUPP. 5 S.C.R.
A In Hazari Lal v. State (Delhi Admn.), [1980] 2 SCC 390 it was observed
that there is no requirement to prove passing of money by direct evidence.
It may also be proved by circumstantial evidence. In Madhukar Bhaskarrao
Joshi v. State of Maharashtra, [2000] 8 SCC 571 it was observed thus:
"The premise to be established on the facts for drawing the
B presumption is that there was payment or acceptance of gratification.
Once the said premise is established the inference to be drawn is that
the said gratification was accepted "as motive or reward" for doing
or forbearing to do any official act. So the word "gratification" need
not be stretched to mean reward because reward is the outcome of the
presumption which the court has to draw on the factual premise that
c there was payment of gratification. This will again be fortified by
looking at the collocation of two expressions adjacent to each other
like "gratification or any valuable thing". If acceptance of any valuable
thing can help to draw the presumption that it was accepted as motive
or reward for doing or forbearing to do an official act, the word
D "gratification" must be treated in the context to mean any payment for
giving satisfaction to the public servant who received it".
It is to be noted that decisions relied upon by the learned counsel for the
accused were considered in Narsinga Rao 's case (supra) and it was held that
the principles had no application as the findings recorded depend upon the
E veracity of the testimony of the witnesses, so far as Suraj Mal's case (supra)
is concerned, and the observations in Sita Ram's case (supra), were to be
confined to the facts of that case and no legal principle for future ap~lication
could be discerned therefrom.
In Black's Law Dictionary, "gratification" is defined as "a recompense
.·
F or reward for services or benefits, given voluntarily, without solicitation or
promise". But in Oxford Advance Leamer' s Dictionary of Current English the
said word is given the meaning "to give pleasure or satisfaction to". Among
the above two descriptions for the word "gratification" with slightly differing
nuances as between the two, what is more appropriate for the context has to
G be found out. The context in which the word is used in Section 4( I) of the
Act is, hence, important.
In Mohmoodkhan Mahboobkhan Pathan v. State of Maharashtra,
[ 1997] I 0 SCC 600 this Court has taken the same meaning for the word
"gratification" appearing in Section 4(1) of the Act. We quote the following
H observations:
STATE OF A.P. v. V.V. RAO[PASAYAT,J.] 511
"7. The primary condition for acting on the legal presumption A
under Section 4( 1) of the Act is that the prosecution should have
proved that what the accused received was gratification. The word
'gratification' is not defined in the Act. Hence, it must be understood
in its literal meaning. In the Oxford Advanced Learner's Dictionary of
Current English, the word 'gratification' is shown to have the meaning B
'to give pleasure or satisfaction to'. The word 'gratification' is used
in Section 4(1) to denote acceptance of something to the pleasure or
satisfaction of the recipient."
What is the concept of gratification has been succinctly stated by this
Court in The State of Assam v. Krishna Rao, [1973) 3 SCC 227, in following C
illuminating words:
"21.-In our opinion, there is merit in the appellant's contention that
the High Court has taken an erroneous view of Section 4 of the
Prevention of Corruption Act. That section reads:
"4. Presumption where public servant accepts gratification other D
than legal remuneration.-( 1) Where in any trial or an offence
punishable under Section 161 or Section 165 of the !PC or of an
offence referred to in clause (a) or clause (b) of sub-section (I)
of Section 5 of this Act punishable under sub-section (2) thereof,
it is proved that an accused person has accepted or obtained, or E
has agreed to accept or attempted to obtain, for himself or for any
other person any gratification (other than legal remuneration) or
any valuable thing from any person, it shall be presumed unless
the contrary is proved that he accepted or obtained, or agreed
to accept or attempted to obtain, that gratification or that valuable
thing, as the case may be, as a motive or reward such as is F
mentioned in the said Section 161, or, as the case may be, without
consideration or for a consideration which he knows to be
inadequate.
(2) Where in any trial of an offence punishable under Section
165-A of the Indian Penal Code or under clause (ii) of sub-section G
(3) of Section 5 of this Act, it is proved that any gratification
(other than legal remuneration) or any valuable thing has been
given or offered to be given or attempted to be given by an
accused person, it shall be presumed unless the contrary is
proved that he gave or offered to give or attempted to give that H
512 SUPREME COURT REPORTS [2003] SUPP. S S.C.R.
A gratification or that valuable thing, as the case may be, as a
motive or reward such as is mentioned in Section 161 !PC or as
the case may be without consideration or for a consideration
which he knows to be inadequate.
(3) Notwithstanding anything contained in sub-sections (I) and
B (2) the court may decline to draw the presumption referred to in
either of the said sub-sections, if the gratification or thing
aforesaid is, in its opinion, so trivial that no inference of corruption
may fairly be drawn."
22.-In State of Madras v. A. Vaidiaratha Iyer, [1958] SCR 580 after
C reproducing the relevant provisions of Section 4 of the Act this Court observed
that where it is proved that a gratification has been accepted the presumption
under Section 4 of the Act shall at once arise. It is a presumption of law and
it is obligatory on the Court to raise it in every case brought under Section
4. In the reported case this Court allowed the appeal of the State of Madras
and setting aside the impugned order of acquittal passed by the High Court
D restored that of the Special Judge convicting the respondent there. In C./.
Emden v. The State o/U.P., AIR(l960) SC 548 the appellant who was working
as a local foreman, was found to have accepted a sum ofRs.375 from a railway
contractor. The appellant's explanation was that he had borrowed the amount
as he was in need of money for meeting the expenses of the clothing of his
E children who were studying in school. The Special Judge accepted the evidence
of the contractor and held that the money had been taken as a bribe, that the
defence story was improbable and untrue, that the presumption under Section
4 of the Act had to be raised and that the presumptiOI\ had not been rebutted
by the appellant and accordingly convicted him under Section 161 !PC and
Section 5 of the Act. On appeal the High Court held that on the facts of that
F case the statutory presumption under Section 4 had to be raised, that the
explanation offered by the appellant was improbable and palpably unreasonable
and that the presumption had not been rebutted, and upheld the conviction.
The appellant contended, on appeal in this Court, inter ulia: (i) that the
presumption under Section 4 could not be raised merely on proof of acceptance
G of money but it had further to be proved that the money was accepted as a
bribe, (ii) that even ifthe presumption arose it was rebutted when the appellant
offered a reasonably probable explanation. This Court, dealing with the
presumption under Section 4, observed that such presumption arose when it
was shown that the accused had received the stated amount and that the said
amount was not legal remuneration. The word 'gratification in Section 4(1)
H
-
'
STATEOFA.P. v. V.V. RAO[PASAYAT,J.] 513
was to be given its literal dictionary meaning of satisfaction or appetite or
desire; it could not be construed to mean money paid by way of a bribe. The
A
High Court was justified in raising the presumption against the appellant as
it was admitted that he had received the money from the contractor and the
amount received was other than legal remuneration. On the facts the explanation
given by the accused, in agreement with the opinion of the High Court was
held to be wholly unsatisfactory and unreasonable. [n Dhanvantrai v. State B
ofMaharashtra, AIR (1964) SC 575 it was observed that in order to raise the
presumption under Section 4(1) of the Act what the prosecution has to prove
is that the accused person has received 'gratification other than legal
remuneration' and when it is shown that he has received a certain sum of
money which was not a legal remuneration, then, the condition prescribed by C
this section is satisfied and the presumption thereunder must be raised. In
Jhangan v. State ofU.P., [1968] 3 SCR 766 the above decisions were approved
and it is observed that mere receipt of money is sufficient to raise the
presumption under Section 4(1) of the Act."
In C./. Emden v. State of Uttar Pradesh, AIR (1960) SC 548 and V.D. D
Jhangan v. State of Uttar Pradesh, [1966] 3 SCR 736 it was observed that if
any money is received and no convincing, credible and acceptable explanation
is offered by the accused as to how it came to be received by him, the
presumption under Section 4 of the Act is available. When the receipt is
admitted it is for the accused to prove as to how the presumption is not E
available as perforce the presumption arises and becomes operative.
When the factual position is examined in the background of legal
principles culled out from various decisions of this Court, the inevitable
conclusion is that the High Court's judgment is indefensible. We set aside the
judgment and hold that the accused was rightly convicted under Section 161 p
IPC and Section 5 (2) read with Section 5 (l)(d) of the Act by the trial Court.
Coming to the question of sentence, learned counsel for the accused
submitted that the accused is presently aged 75 years. At the relevant point
of time, the minimum sentence was one year and for special reasons this
sentence could be reduced. In a case involving acceptance of illegal G
gratification there is no scope for any leniency. The tentacles of corruption
are spreading fast in the society corroding the moral fibre and consequentially
in most cases the economic structure of the country. It has assumed alarming
proportions in recent times. Though the occurrence at hand took place nearly
14 years back, yet as noted at the threshold, the Act was brought into anvil H
514 SUPREME COURT REPORTS [2003] SUPP. 5 S.C.R.
A in the year of country's independence. The object appeared to be to nip th•! ...
propensity for being corrupt in the bud. The growth of corruption has to a
great extent frustrated the purpose for which the Act was enacted, and both
the Act and its successor Act in 1988 do not appear to have curbed th~:
growth of corruption, and to have achieved the intended results.
B As observed in Madhukar 's case (supra), there is no such proviso as
in Section 5(2) of the earlier Act and no power whatsoever is given to the
Court to impose a sentence less than the minimum, even if there are special
reasons for doing so. Parliament fixed the minimum sentence of imprisonment
of one year even under the Act of 1947 by making an amendment to it in 1958
C for which the legislative language is apparently peremptory i.e. "shall not be
less than one year". The proviso is in the form of a rare exception by giving
power to the Court for reducing the imprisonment period below one year only
when there are "special reasons" and the law required that those special
reasons must be recorded in writing by the Court.
D When corruption was sought to be eliminated from the polity all possible
stringent measures are to be adopted within the bounds of law. One such
measure is to provide condign punishment. Parliament measured the parameters
for such condign punishment and in that process wanted to fix a minimum
sentence of imprisonment for giving deterrent impact on other public servants
who are prone to corrupt deals. That was precisely the reason why the
E sentence was fixed as 7 years and directed that even if the said period of
imprisonment need not be given the sentence shall not be less than the
imprisonment for one year. Such a legislative insistence is reflection of
Parliament's resolve to meet corruption cases with a very strong hand and to
give signals of deterrence as the most pivotal feature of sentencing of corrupt
F public servants. All public servants were warned through such a legislative
measure that corrupt public servants have to face very serious consequences.
If on the other hand any public servant is given the impression that if he
succeeds in protracting the proceedings that would help him to have the
advantage of getting a very light sentence even if the case ends in conviction,
we are afraid its fallout would afford incentive to public servants who are
G susceptible to corruption to indulge in such nefarious practices with immunity.
Increasing the fine after reducing the imprisonment to a nominal period can
also defeat the purpose as the corrupt public servant could easily raise the
fine amount through the same means.
In the present case, how could the mere fact that this was pending for
H
STATE OF A.P. v. V.V. RAO (PASAYAT, J.] 515
such a long time be considered as a "special reason"? That is a general A
feature in almost all convictions under the Act and it is not a speciality of
this particular case. It is the defect inherent in implementation of the system
that longevity of the cases tried under the Act is too lengthy. If that is to
be regarded as sufficient for reducing the minimum sentence mandated by
Parliament the legislative exercise would stand defeated.
B
Considering the age of the accused, we reduce only the sentence to the
minimum of one year without touching the fine imposed, but do not find any
justifiable reason to reduce it below the minimum. The appeal is allowed to
the extent indicated above.
K.K.T. Appeal allowed. C
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