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2008 Supreme(SC) 1533

IN THE SUPREME COURT OF INDIA
Dr. ARIJIT PASAYAT, P. SATHASIVAM, JJ.
N. Ramakrishnaiah (dead) thr. Lrs. - Appellants
Versus
State of A.P. - Respondent
CRIMINAL APPEAL NO. 1627 OF 2008
Arising out of SLP (Crl) No. 5476 of 2006
Decided on : October 17, 2008

Headnote:

Prevention of Corruption Act, 1947 - Section 5 (2), 5 (1) (e), 13(2) - Indian Evidence Act, 1872 - Section 106 - legal heirs were brought on record - Died during pendency of appeal - Accused joined government service as a Supervisor in Andhra Pradesh Panchayat Raj Department - He was promoted as a Deputy Executive Engineer on and further promoted as an Executive Engineer on - He continued to work as an Executive Engineer District till he was kept under suspension on - On reliable information that he had acquired assets disproportionate to his known sources of income a case was registered on and investigation was taken up - During course of investigation search was conducted - Documents found during search disclosed acquisition of number of assets by accused in his name and in name of his dependents - During check period acquired assets worth amount - His income from all known sources was and expenditure during check period was amount - After deducting expenditure from the income he would have saved But he had acquired the assets worth - After deducting the likely saving of disproportionate assets in possession of accused from his known sources of income was worked out at and he could not give satisfactory account for acquisition of those assets - He was therefore liable for punishment under Section 5 (1)(e) read with Section 5 (2) of the Prevention of Corruption Act, 1947 – Held, Emphasis of phrase known sources of income in Section 13 (1) (e) (old Section 5(1) (e)) is clearly on word income - It would be primary to observe that qua public servant income would be what is attached to his office or post commonly known as remuneration or salary - Term income by itself is classic and has a wide connotation - Whatever comes in or is received is income – But however wide import and connotation of term income it is incapable of being understood as meaning receipt having no nexus to ones labor or expertise or property or investment and being further a source which may or may not yield regular revenue - These essential characteristics are vital in understanding term Income - Therefore it can be said that though income in receipt in hand of its recipient every receipt would not partake into character of income - For public servant whatever return he gets of his service will be primary item of his income - Other income which can conceivably be income qua public servant will be in regular receipt from his property or (b) his investment - A receipt from windfall or gains of graft crime or immoral secretions by persons would not be receipt for known sources of income of a public servant - legislature has advisedly used expression satisfactorily account - Appeal is dismissed.

JUDGMENT

Dr. ARIJIT PASAYAT, J

1. Leave granted.

2. Challenge in this appeal is to the judgment of a learned Single Judge of the Andhra Pradesh High Court dealing with Criminal Appeal preferred by appellant No.1-N. Ramakrishnaiah who died during the pedency of the appeal and his legal heirs were brought on record as appellants in this appeal.

3. The factual matrix leading to the conviction of the accused N. Ramakrishnaiah was as follows:

The accused joined government service as a Supervisor on 02.11.1955 in the Andhra Pradesh Panchayat Raj Department. He was promoted as a Deputy Executive Engineer on 02.01.1967 and further promoted as an Executive Engineer on 01.03.1979. He continued to work as an Executive Engineer, Kamareddy of Karimnagar District till he was kept under suspension on 26.05.1986. On reliable information that he had acquired assets disproportionate to his known sources of income, a case was registered on 12.05.1986 and the investigation was taken up. During the course of investigation, search was conducted. The documents found during the search disclosed acquisition of number of assets by the accused in his name and in the name of his dependents. During the check period i.e. from 2.11.1955 to 13.5.1986, he acquired assets worth Rs.14,71,578. His income from all known sources was Rs.8,23,634/- and the expenditure during the check period was Rs.7,88,574/-. After deducting the expenditure from the income, he would have saved Rs.35,040/-. But he had acquired the assets worth Rs.17,71,578/-. After deducting the likely saving of Rs.35,040/-, the disproportionate assets in possession of accused from his known sources of income was worked out at Rs.14,36,538/- and he could not give satisfactory account for acquisition of those assets. He was, therefore, liable for punishment under Section 5 (1)(e) read with Section 5 (2) of the Prevention of Corruption Act, 1947 (hereinafter referred to as the "Old Act").

The following was the charge framed against the accused:

"That you being a public servant employed as Supervisor on 02.11.1955 subsequently promoted as Dy. Executive Engineer on 02.01.1967 and Executive Engineer on 01.03.1979 in the Panchayat Raj Department of Government of Andhra Pradesh, during the period between 02.11.1955 and 13.05.1986 acquired assets, which were disproportionate to your known sources of income and on or about the 13th day of May, 1986 you had been in possession of pecuniary resources or property in your name and in the names of your wife and children to the extent of Rs.14,36,538.00 which were disproportionate to your known sources of income and for which you could not satisfactorily account and you thereby committed an offence under section 13 (1) (e) of the Prevention of Corruption Act, 1988 .(Sec. 5(1) (e) of the Old Act) punishable under Section 13(2) of the said Act (Sec. 5(2) of the Old Act) and within my cognizance."

He denied the above charge and claimed for trial. The prosecution in order to prove the guilt of the accused examined P.Ws. 1 to 52, and marked Exs. P.1 to P.195. No oral evidence was adduced on defence side. But, Ex.D-1 relating to the agricultural income for some period was marked.

The learned Special Judge after considering the oral and documentary evidence, found the accused guilty for the offence punishable under Section 5(1(e) read with Section 5(2) of the Act, convicted and sentenced him to undergo simple imprisonment for one year and to pay a fine of Rs.20,000/- in default to suffer simple imprisonment for three months. The learned Special Judge also directed that Item Nos.1 to 4 of assets to be sold in public auction and the sale proceeds was directed to be confiscated to the State. Being aggrieved by the judgment of the trial Court accused preferred the appeal in the High Court, which was dismissed.

4. It is to be noted that in the appeal before the High Court, the dispute was restricted to only Item No.26 of the assets (movables) and agricultural income. It was stated that














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