Judgment

S.B. Sinha, J.—Union of India is in appeal before us from a judgment and order dated 14.1.2003 passed by a Division Bench of the Madras High Court whereby and whereunder an appeal from a judgment of conviction and sentence dated 12th April, 1996 passed by the Special Court for Central Bureau of Investigation in O.P. No. 7 of 1995 was allowed.

2. The Respondent herein was working as a Surveryor in the Mercantile Marine Department of Government of India at Tuticorin Port. While on duty on 15.7.1992, he allegedly demanded a sum of Rs. 50,000/- by way of illegal gratification from one D.G. Rajan (PW 3) of M/s. Raja Agencies for giving clearance certificate in respect of the vessel M.V. Lilly. It is not in dispute that an inspection of the said vessel was made by the Respondent herein and certain defects were found which having been rectified by the Master thereof, it was released. It is alleged that the demand of gratification continued purported to be on the premise that unless the amount was paid, other vessels of which the said M/s. Raja Agencies was acting as sub-agent would be detained.

3. Hunter Shipping and Trading Company was an agent for loading and unloading the goods carried out from the ships. M/s. Raja Agencies of Tuticorin was sub-agent of the said company. It is alleged that normally the ships are anchored in sea upon entering into the harbour. However, for loading and unloading of the goods, ships are permitted to be berthed at the place allotted in harbour for two hours only. If goods are not loaded or unloaded within that period, penalty can be imposed.

4. The vessel M.V. Lilly came from Bombay. It was brought to VOC 2 berth at 5 p.m. on 13.7.1992. The Respondent by a letter addressed to the Deputy Conservator asked him not to release the said vessel without his permission. An inspection of the said vessel was taken and some defects were found which were intimated to the Master thereof. It is alleged that PW3 was asked by the Appellant herein to see him at 7.30 p.m. on 15.7.1992. He requested the Respondent to release the ship whereupon he demanded a sum of Rs. 50,000/- therefor. Allegedly, PW3 asked the Respondent to reduce the amount and upon refusal on his part so to do, allegedly he expressed his inability to pay the amount stating that as he is a sub-agent and he would ask the agent therefor and he would inform him the next day. PW3 allegedly informed Chandramohan (PW2) on the same night that the notice had been issued for the defects found in the ship and the ship was not being permitted to leave the harbour wherefor an amount of Rs. 50,000/- was demanded by the Respondent. PW2 allegedly told PW3 that the owner of the ship would be informed. On 16.7.1992, PW3 met the Respondent herein and told that the loading would be completed in the ship and, thus, the ship may be permitted to leave the harbour. It was further alleged that PW3 promised to arrange the money from the main agent or otherwise another ship “Villa Ali” belonging to their agency anchored outside the harbour may be retained.

5. On 16.7.1992, PW2 informed PW3 that the owner of the ship refused to pay the amount whereupon PW3 suggested that the same may be reported to CBI. PW2 as per the said suggestion gave a complaint to the Superintendent of Chennai Central Bureau of Investigation. A trap was arranged on 17.7.1992. The Superintendent of Chennai Central Bureau of Investigation having received the said report called the Inspector Ramasamy (PW8) to register a case whereupon a First Information Report was prepared and sent to Special Judge of Madurai. A committee was formed under the control of the Deputy Superintendent Jones, Inspector Vijaykumar, R.S.O. Raju who came to Tuticorin in a hired taxi bearing registration No. TSE 2828. A room in a hotel known as Sugam International was booked. PW3 was asked by PW8 to meet him in the said room. PW3 issued a cheque for the company’s account drawn on the Federal Bank of India Branch of Tuticorin (mark