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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 13(1)(d) read with Section 13(2) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 7 of the Prevention of Corruption Act
  • Prevention of Corruption Act, 1988 (Sections 7 and 13(1)(d) read with Section 13(2))
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 13(1)(d) read with Section 13(2) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 7 of the Prevention of Corruption Act
  • Prevention of Corruption Act, 1988 (Sections 7 and 13(1)(d) read with Section 13(2))
Smart Summary

Factual and Procedural Background

The appellant was the In-charge General Manager of the District Industries Centre, Ongole. On 29-07-1991 the complainant (PW-1), who said he wished to register a small-scale industrial unit, allegedly met the appellant. The appellant demanded Rs 200, later reduced to Rs 150, for issuing the registration certificate, while an attender demanded Rs 20. PW-1 reported the demand to the Deputy Superintendent of Police, Anti-Corruption Bureau (DSP, ACB). A trap was laid on 31-07-1991; marked currency notes totaling Rs 150 were recovered from the appellant’s trouser pocket, and Rs 20 from the co-accused attender.

The Special Judge for SPE & ACB Cases, Nellore convicted the appellant under Sections 7 and 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988, sentencing him to one year’s rigorous imprisonment (RI) under Section 7 and 1½ years’ RI under Sections 13(1)(d)/13(2). The co-accused was acquitted. Both the appellant and the State appealed; the High Court of Andhra Pradesh affirmed the conviction but reduced the sentence under Sections 13(1)(d)/13(2) to one year’s RI. The State’s appeal against the co-accused’s acquittal was dismissed.

The appellant, having died on 17-05-2004, was represented before the Supreme Court by his legal representatives. The present judgment decides the appellant’s special leave appeal challenging the High Court’s decision.

Legal Issues Presented

  1. Whether the sum of Rs 150 recovered from the appellant constituted illegal gratification or was tendered for a lawful purpose, namely payment of the statutory challan fee.

Arguments of the Parties

Appellant’s Arguments

  • PW-1 was a journalist, not a bona fide applicant; he allegedly bore a personal grudge against the appellant for forwarding an earlier complaint to the police.
  • No illegal demand was made; PW-1 voluntarily left three Rs 50 notes on the appellant’s table, saying he would return with two more applications, each requiring a Rs 50 challan.
  • The money was meant for deposit towards challan fees; the appellant merely put the notes in his pocket after they fell from the table.
  • The defense explanation was reiterated in the appellant’s Section 313 CrPC statement.

State/Respondent’s Arguments

The opinion does not contain a detailed account of the State’s legal arguments, and no counsel appeared for the State at the Supreme Court hearing.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court observed that the appellant did not dispute receipt of Rs 150 from PW-1. The core question was whether the money was illegal gratification. The Court found the appellant’s explanation “most unconvincing” for several reasons:

  • The statutory application fee (Rs 50) must be deposited in the treasury against a challan; it is implausible that an applicant would hand cash directly to the General Manager.
  • The amount recovered (Rs 150) exceeded the Rs 50 fee, and the claim that the excess represented advance payment for two future applications lacked credibility.
  • The defense provided no “special reason” for the appellant to deviate from normal procedure by accepting cash.
  • The timing of demand, complaint, and trap corroborated PW-1’s testimony.

Accordingly, both the trial court and the High Court were correct in rejecting the appellant’s explanation. The Supreme Court endorsed their concurrent findings.

Holding and Implications

DISMISSED – The Supreme Court dismissed the appeal, affirming the appellant’s conviction and the modified one-year sentences under Sections 7 and 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act.

Implications: The conviction and sentence remain operative, affecting any service or pensionary benefits payable to the deceased appellant’s family. The decision is fact-specific and sets no new legal precedent beyond reaffirming the evidentiary standards for corruption traps.

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    V. Radhakrishna Reddy v. State Of A.P .

    B.P Singh, J.— Delay condoned.

    2. Application for substitution is allowed.

    3. In this appeal by special appeal the judgment and order of the High Court of Judicature of Andhra Pradesh at Hyderabad dated 20-11-1998 in Criminal Appeal No. 196 of 1994 has been challenged.

    4. The High Court by its impugned judgment and order affirmed the conviction of the appellant under Sections 7 and 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 (hereinafter referred to as “the Act”). The High Court upheld the sentence of one-year rigorous imprisonment under Section 7 of the Act but reduced the sentence of one-and-a-half years under Section 13(1)(d) read with Section 13(2) of the Act to one-year rigorous imprisonment.

    5. The facts of the case are that at the relevant time the appellant was In-charge General Manager of the District Industries Centre at Ongole. His co-accused was an attender in the District Industries Centre.

    6. The case of the prosecution is that PW 1 Samapathkumar wanted to set up a small-scale industry and for that purpose he was required to apply for registration of the industry as a small-scale industry. On 29-7-1991 at 10.00 a.m he met the appellant in his office, who demanded a sum of Rs 200 for granting him the requisite certificate. On the persuasion of PW 1 he reduced the amount to Rs 150. Similarly, the co-accused who was an attender in the same office initially demanded Rs 30 and later reduced the sum to Rs 20 for getting the certificate signed and issued from the office. On the very next day i.e 30-7-1991 the complainant PW 1 went to the Deputy Superintendent of Police, Anti-Corruption Branch and lodged a report, but the same was not registered immediately. On the following day, however, i.e on 1-7-1991 a first information report was registered and a trap was arranged by DSP, ACB, PW 5. Thereafter, PW 1 went to the office of the appellant and after handing over the marked currency notes to the appellant as well as to the co-accused gave a signal pursuant to which DSP, ACB, PW 5 who was waiting outside for a signal, entered the room of the appellant and recovered tainted currency notes from the right-side pocket of his trousers. In fact, the appellant himself took out the currency notes and handed them over to PW 5. Similarly, the tainted currency notes were recovered from the co-accused. At that time the appellant gave the explanation that the amount had been paid to him towards payment of challan. It is stated before us that every application made for the registration of a small-scale industrial unit has to be accompanied with a challan of Rs 50 being the fees payable on such application.

    7. The appellant as well as co-accused A-2 were put up for trial before the Special Judge for SPE&ACB Cases, Nellore. The trial court after considering the evidence of witnesses produced by the prosecution including the evidence of PW 1 Samapathkumar and the DSP, ACB, PW 5 found the appellant guilty of the offences with which he was charged and sentenced him to undergo one year's rigorous imprisonment and to pay a fine of Rs 500 under Section 7 of the Prevention of Corruption Act. In default of payment of fine, he was to undergo imprisonment for one month. Under Section 13(1)(d) read with Section 13(2) of the Act, the appellant was sentenced to undergo one-and-a-half year's rigorous imprisonment and to pay fine of Rs 500, in default to undergo one month's imprisonment. The trial court, however, acquitted the co-accused A-2 of the charges levelled against him.

    8. The State of Andhra Pradesh as well as the appellant herein preferred appeals before the High Court. The High Court by its impugned judgment and order affirmed the conviction of the appellant while reducing the sentence to one year under Section 13(1)(d) read with Section 13(2) of the Act. The appeal preferred by the State against the acquittal of A-2 was rejected.

    9. In this appeal, it was contended by learned counsel appearing on behalf of the appellant that PW 1 Samapathkumar is, in fact, a journalist. He was not a bona fide applicant interested in setting up a small-scale industry. He only wanted to get the appellant involved in a criminal case out of personal grudge. It was submitted that another journalist, namely, one Prasad had misbehaved with one Chander Shekhar, who was working in the office of the District Industries Centre and since the aforesaid Chander Shekhar had reported the matter to the appellant herein, the appellant had forwarded his complaint to the police for registration of a case. For this reason PW 1 bore a grudge against the appellant and he got him falsely involved in this case. Learned counsel also drew our attention to the explanation offered by the appellant in the course of investigation as also his statement under Section 313 CrPC. The explanation furnished by the appellant was that PW 1 had indeed approached him for filing an application for registration of the unit which he intended to set up as a small-scale industry. He had not demanded any amount from him by way of illegal gratification. On the date and time in question he had given him three currency notes of Rs 50 each. The amount payable by way of challan was only Rs 50 for one application. However, PW 1 left his office leaving the three currency notes on his table stating that he shall be making two more applications and that he shall come back within half an hour with those two applications. So saying PW 1 Samapathkumar left his chamber and thereafter re-entered his chamber along with DSP, ACB, PW 5. He has also explained that since the amount had been kept on a corner of the table, it fell on the ground and he picked up the currency notes and put them in his pocket.

    10. It thus appears that the appellant had not denied the fact that PW 1 gave him a sum of Rs 150 which was recovered from his pocket by PW 5.

    11. The only question which arises for consideration is whether the amount was paid to him by way of illegal gratification or it was paid for any other lawful purpose. The sole question, therefore, is whether the explanation offered by the appellant can be accepted.

    12. We do not attach much importance to the fact that PW 1 may not be a genuine applicant for registration of a small-scale industrial unit. That fact is wholly immaterial in judging the guilt of the appellant. PW 1 has stated that he had met the appellant on 29-7-1991 at 10.00 a.m and the appellant had made the demand. On the next day, he had reported the matter to the police and thereafter, on 31-7-1991 a trap was arranged and the amount was recovered from him.

    13. The explanation offered by the appellant is most unconvincing. If an applicant is required to pay a sum of Rs 50 by way of fee on the application for registration of a small-scale industrial unit, the same has to be paid in the treasury under a challan. It is unbelievable that an applicant would go to the General Manager of the District Industries Centre and pay him in cash the amount which is required to be deposited in the treasury with a challan. Apart from this, the fact remains that the sum recovered is Rs 150 and not Rs 50 which was the fee payable for one application. The explanation of the appellant is that Rs 100 had been paid to him in advance for two applications which were yet to be made. The explanation is wholly unconvincing and there appears to be no special reason for the appellant to show such a favour to the complainant PW 1. In normal course it was expected that the applicant would deposit the amount in the treasury and file a receipted challan with his application for registration of his small-scale industrial unit.

    14. We have, therefore, no hesitation in rejecting the explanation offered by the appellant as has been done by the courts below. We, therefore, find no reason to set aside the conviction and sentence passed against the appellant.

    15. It was stated before us that the appellant died on 17-5-2004 and his legal representatives have been brought on record. Since the result of this appeal may affect the payment of dues to the family of the appellant, the legal representatives have pursued this appeal before this Court.

    16. In the result, this appeal is dismissed.

    17. We may, however, observe that no counsel appeared for the State of Andhra Pradesh in this matter to oppose the appeal.

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    Comments

    V. Radhakrishna Reddy v. State Of A.P .
    (Jan 11, 2005)