IMPORTANT POINT
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, it may be unsafe to use that presumption to draw yet another discretionary presumption unless there is a statutory compulsion.

Headnote:(i) Prevention of Corruption Act, 1988-Section 20-Presumption as to acceptance of gratification-Compulsory presumption-Scope and ambit of- Shall presume -Meaning of-Can a legal presumption be based on a factual presumption?-To draw presumption u/s 20 prosecution need not establish with direct evidence that delinquent public servant accepted or obtained gratification.
       The expressions "may presume" and "shall presume" are defined in Section 4 of the Evidence Act. 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 20(1) of the Act it must have the same import of compulsion. (Para 12)
       When the sub-section deals with legal presumption it is to be understood as in terrorum 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 legal presumption under Section 20 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 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. (Para 13)
       The word "proof" need be understood in the sense in which it is defined in the Evidence Act because proof depends upon the admissibility of evidence. A fact is said to be proved when, after considering the matters before it, the court either believes it to exist, or consider its existence so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists. This is the definition given for the word "proved" in the Evidence Act. What is required is production of such materials on which the court can reasonably act to reach the supposition that a fact exists. 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. (Para 14)
       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, human conduct, public or private business vis-a-vis the facts of the particular case. The discretion is clearly envisaged in Section 114 of the Evidence Act. (Para 15)
       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 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 can draw an inference and that would remain until such inference is either disproved or dispelled. (Para 16)
       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. (Para 17)
       (ii) Evidence-Presumption-Meaning of-It is an inference of certain facts from other proved facts-Court is only applying a process of intelligent reasoning-Unless presumption is disproved or rebutted Court can treat presumption as tantamounting to proof-Presumption cannot be drawn from another discretionary presumption unless there is statutory compulsion. (Paras 14 to 17)
       (iii) Prevention of Corruption Act, 1988-Sections 7 and 13(2) r/w Section 13(1)(d)-Conviction for offence of demand and receipt of illegal gratification-Deceased caught red handed-During trial that took place PW1 and PW2 denied having paid bribe-Defence that amount was forcibly stuffed in his pocket-Trial Court and High Court disbelieved defence evidence and ordered prosecution of witnesses for perjury-Presumption proved facts arises that accused received or accepted currency notes on his own volition-Prosecution had proved that accused had received gratification-Concurrent findings of trial Court and High Court warrants no interference-Conviction justified.
       PW-7 DSP said that PW-1 approached him on the previous day and lodged Ext. P-2 complaint stating that appellant was persistently demanding Rs. 500/- from him. The currency notes were actually prepared by PW-7 by smearing them with phenolphthalein powder. When appellant was caught red handed with those currency notes he never demurred to PW-7 that those notes were not received by him. In fact, the story that such currency notes were stuffed into his pocket was concocted by the appellant only after lapse of a period of 4 years and that too when appellant faced the trial in the court. (Para 19)
       From those proved facts the court can legitimately draw a presumption that appellant received or accepted the said currency notes on his own volition. Of course, the said presumption is not an inviolable one, as the appellant could rebut it either through cross-examination of the witnesses cited against him or by adducing reliable evidence. But if the appellant fails to disprove the presumption the same would stick and then it can be held by the court that the prosecution has proved that appellant received the said amount. (Para 20)
       We, therefore, agree with the finding of the trial court as well as the High Court that prosecution has proved that appellant has received gratification from PW1. In such a situation that court is under a legal compulsion to draw the legal presumption that such gratification was accepted as a reward for doing the public duty. Of course, the appellant made a serious endeavour to rebut the said presumption through two modes. One is to make PW1 and PW2 speak to the version of the appellant and the other is by examining two witnesses on the defence side. True PW1 and PW2 obliged the appellant. The two defence witnesses gave evidence to the effect that the appellant was not present at the station on the date when the alleged demand was made by PW1. But the trial court and the High Court have held their evidence unreliable and such a finding is supported by sound and formidable reasoning. The concurrent finding made by the two courts does not require any interference by this Court. (Para 22)

JUDGMENT

Thomas, J.-Can a legal presumption be based on a factual presumption? The latter is discretionary whereas the former is compulsory. Such a question arose in this appeal and in view of the importance of the issue a two-Judge Bench has referred this case to be heard by a larger bench. The legal presumption envisaged in Section 20 of the Prevention of Corruption Act 1988 (for short "the Act") is that no proof of certain fact the court "shall presume" certain other fact. When there is no direct evidence for establishing the primary fact the court has to depend upon the process of inference drawn from other facts to reach the said primary fact. The crux of the question involved, therefore, is whether an inference thus made could be used as a premise for the compulsory presumption envisaged in Section 20 of the Act.

2. The aforesaid question arose from the following assortment of facts. Appellant was manager of a Milk Chilling Centre attached to Andhra Pradesh Dairy Development Co-operative Federation. He is alleged to have received bribe money of Rs. 500/- from a milk-transporting contractor (PW1-Satya Prasad). He was caught red handed on 20.4.1989 in a trap arranged by the officials of the Anti Corruption Bureau (ACB). They charge-sheeted him before a Special Court for offences under Sections 7 and 13(2) read with Section 13(1)(d) of the Act. After trial the Special Judge convicted him and sentenced him to rigorous imprisonment for two years and a fine of Rs. 2000/- under each of the above counts. The High Court of Andhra Pradesh confirmed the conviction but reduced the sentence of imprisonment to a period of one year. This appeal is in challenge of the said conviction and sentence.

3. A summary of the allegations made against the appellant are these: PW1-Satya Prasad was to get some amount from Andhra Pradesh Dairy Development Corporation for transporting milk to or from the Milk Chilling Centre at Luxettipet Adilabad district). He approached the appellant for taking prompt steps so as to enable him to get the money disbursed. But appellant demanded Rs.500/- for sending the recommendation in favour of payment of the amount due to PW1. As the appellant persisted with his demand PW1 yielded to the same, but before handing over the money to the appellant PW1 lodged a complaint (Ex.P2) with the DSP of Anti Corruption Bureau. On the basis of the said complaint PW7 (DSP) registered Ex.P18 FIR and then made all arrangements for a trap to catch the corrupt public servant red handed.

4. On 20.4.1989, PW1 brought the currency notes to the office of the ACB for making up the demanded bribe amount. The said currency notes were treated with phenolphthalein powder by or at the direction of PW7 as preparation for the trap. PW1 and the already arranged witness PW2 together went to the house of the appellant by about noon. When appellant asked whether the amount was brought PW1 handed over the phenolphthalein smeared currency notes to the appellant. He accepted the amount and put the currency notes in his pocket. Thereupon, a pre-scheduled signal was transmitted to the members of the ACB team who were waiting outside. They suddenly rushed to the place where the appellant was then standing, caught the appellant red-handed and the tainted currency notes were recovered from his pocket. All the usual follow up steps were thereafter adopted by the ACB team and on completion of the investigation the case was chargesheeted against the appellant.

5. It took four years thereafter for the Special Judge to commence evidence taking for the prosecution. The said long interval, perhaps, helped the appellant as is reflected from the fact that PW1 and PW2 made a volte-face in the trial court and they denied having paid any bribery to the appellant and also denied that appellant demanded the bribe amount. PW1 said, for the first time, that he acted at the behest of one Dr. Krishna Rao and went to the office of the appellant and did everything as direc

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2000 Supreme(SC) 2021

Cases Referred (5)