IMPORTANT POINT
Definition of public servant under Section 2(c)(ix) of Prevention of Corruption Act, 1988 includes employee of a banking co-operative society which is controlled or aided by the government as present the position in present case.

Headnote:Prevention of Corruption Act, 1988-Section 2(c)(ix)-Definition of Public Servant -Respondent was working as Supervisor in the District Co-operative Central Bank Ltd., Nellore-Charge of accepting bribe-Whether respondent is a public servant under 1988 Act? High Court holding "No"-Whether correct? (No)-Result-High Court was not justified in quashing criminal prosecution against -Respondent on this ground-Appeal allowed-Case remanded to trial Court-Case law discussed.
       Held : After hearing the learned counsel appearing for the parties, our conclusion is that the High Court is clearly in error in relying on Sub-clause (ix) and overlooking Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act for quashing the proceedings on the ground that the respondent/accused is not covered by the definition of public servant . From the above quoted Sub-clause (ix) of Clause (c) of Section 2 of the 1988 Act, it is evident that in the expansive definition of public servant , elected office-bearers with President and Secretary of a registered co-operative society which is engaged in trade amongst others in banking and receiving or having received any financial aid from the Central or State Government, are included although such ejected office bearers are not servants in employment of the co-operative societies. But employees or servants of a co-operative society which is controlled or aided by the government, are covered by Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act. Merely because such employees of co-operative societies are not covered by Sub-clause (ix) along with holders of elective offices, High Court ought not to have overlooked that the respondent, who is admittedly an employee of a co-operative bank which is controlled and aided by the government, is covered within the comprehensive definition of public servant as contained in Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act. It is not disputed that the respondent/accused is in service of a co-operative Central Bank which is an authority or body controlled and aided by the government. (Paras 7 and 8)
       After discussing Old Act and Objects and Reasons of New Act and case law, Held finally : The appeals, therefore, succeed and are allowed. The impugned order of the High Court dated 26.9.2001 is hereby set aside. The trial court is directed to proceed with the trial of the case against the respondent in accordance with law. (Para 15)

ORDER

Dharmadhikari, J.-Special Leave to appeal is granted.

2. The learned counsel appearing for the parties are heard finally on merits of the case.

3. Government of Andhra Pradesh and District Co-operative Central Bank Limited, Nellore, through its General Manager, have preferred this appeal challenging the Order dated 26.9.2001 of the Division Bench of High Court of Andhra Pradesh whereby criminal case instituted against the respondent/accused, who was working as Supervisor in the District Co-operative Central Bank Limited, Nellore, for alleged offence of accepting bribe punishable under provisions of the Prevention of Corruption Act, 1988 [for short the 1988 Act ] has been quashed in proceedings under Section 482 of Criminal Procedure Code [for short Cr.P.C. ].

4. The High Court by the impugned order quashed the criminal case pending against the respondent No. 1 under the 1988 Act on the sole ground that the accused is not a public servant as defined in Sub-clause (ix) of Clause (c) of Section 2 of the 1988 Act . In the opinion of the High Court, definition contained in Sub-clause (ix) of Clause (c) of Section 2 of the 1988 Act covers only President, Secretary and other office bearers of a registered co-operative society engaged amongst other businesses in banking. Section 2 of the 1988 Act with relevant Clause (C) and Sub-clauses (iii) & (ix) read as under :-

"2. Definition.-In this Act, unless the context otherwise requires,-

(a) ..................

(b) ..................

(iii) any person in the service or pay of a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

...........

(ix) any person who is the President, Secretary or other office-bearer of a registered co-operative society engaged in agriculture, industry, trade or banking, receiving or having received any financial aid from the Central Government or a State Government or from any corporation established by or under a Central, Provincial or State Act, or any authority or body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

[Underlining for emphasis by court]

5. The learned counsel appearing for the State and the District Co-operative Central Bank Limited, Nellore submit that the definition of public servant in Clause (c) of Section 2 of the 1988 Act is very wide and the respondent/accused who is employed as Supervisor in the District Co-operative Central Bank Limited which is "an authority or a body owned or controlled or aided by the Government" in terms of Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act, clearly falls within the definition of public servant .

6. On the other hand, learned counsel appearing for the respondent/accused, who supports the impugned judgment of High Court by placing reliance on the decisions of the Supreme Court in the cases of State of Gujarat & Anr. Vs. Patel Ramjibhai Danabhai & Ors. etc. etc. [1979 (3) SCC 347] and Maharashtra State Board of Secondary and Higher Secondary Education & Anrs. etc., etc., [1984 (4) SCC 27] contends that on comparative reading of Sub-clauses (iii) & (ix) of Clause (c) of Section 2 of the 1988 Act, the principle of Interpretation Generalia specialibus non derogant would apply. There being a special provision in Sub-clause (ix) which covers only certain holders of offices of the specified co-operative societies, and does not include other employees of such societies, the general provision contained in Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act shall have no application. It is argued that the special provision in Sub-clause (ix) shall exclude the general p

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2002 Supreme(SC) 959

IMPORTANT POINTDefinition of public servant under Section 2(c)(ix) of Prevention of Corruption Act, 1988 includes employee of a banking co-operative society which is controlled or aided by the government as present the position in present case.

Cases Referred (4)

IMPORTANT POINT
Definition of public servant under Section 2(c)(ix) of Prevention of Corruption Act, 1988 includes employee of a banking co-operative society which is controlled or aided by the government as present the position in present case.