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SUPREME COURT OF INDIA
H.L. Dattu, V. Gopala Gowda, Amitava Roy, JJ.
P. Satyanarayana Murthy — Appellant
versus
The Dist. Inspector of Police and Anr. — Respondents
Criminal Appeal No. 31 of 2009
Decided on : 14-09-2015

IMPORTANT POINTS
Proof of demand of illegal gratification is the gravamen of the offence under Sections 7 and 13(1)(d)(i)&(ii).
An offence cannot be inferred.
In absence of conclusive proof of demand, a person cannot be convicted merely on recovery of the amount from him.
Suspicion, however grave, cannot take the place of proof.

Headnote:(a) Prevention of Corruption Act, 1988 – Section 7 and 13(1) (d)(i)&(ii) – Proof of demand of illegal gratification is the gravamen of the offence under Sections 7 and 13(1)(d)(i)&(ii) – Prosecution’s failure to prove demand for illegal gratification would be fatal – A person cannot be convicted merely on recovery of the amount from him. (Para 21, 22)

        (2014) 13 SCC 55; (2009) 6 SCC 587; (2011) 6 SCC 450 – Relied upon

        (b) Prevention of Corruption Act, 1988 – Section 7 and 13(1)(d)(i)&(ii) read with section 13(2) – Complainant dying – Primary evidence of demand of illegal gratification not forthcoming – High Court acquitting appellant u/s 7 – State not challenging it – In the circumstances demand could only be inferred – Not permissible in law – Suspicion, however grave, cannot take the place of proof – Conviction u/s 13(1)(d)(i)&(ii) read with section 13(2) can also not be sustained. (Para 24, 25, 26)

        (2013)12 SCC 406 – Relied upon

       Facts of the case:

        Appellant was convicted and sentenced u/s 7 and 13(1)(d)(i) & (ii) read with Section 13(2) of the Prevention of Corruption Act, 1988.

        High Court while sustaining the conviction of the appellant under Section 13(1)(d)(i) & (ii) read with Section 13(2) and sentence thereunder, set aside his conviction and sentence under Section 7.

       Finding of the Court:

        Impugned judgment cannot be sustained.

       Result : Appeal allowed.

JUDGMENT

Amitava Roy, J.

The instant appeal calls in question the judgment and order dated 25.4.2008 rendered by the High Court of Judicature, Andhra Pradesh at Hyderabad in Criminal Appeal No. 262 of 2002, sustaining the conviction of the appellant under Section 13(1)(d)(i) & (ii) read with Section 13(2) of the Prevention of Corruption Act 1988 (for short hereinafter referred to as “the Act”) and sentence thereunder, however setting aside his conviction and sentence under Section 7 of the Act.

2. We have heard Mr. A.T.M. Ranga Ramanujam, learned senior counsel for the appellant and Ms. Prerna Singh, learned counsel for the respondents.

3. The prosecution case stems from a complaint laid by one S. Jagan Mohan Reddy (since deceased) to the Deputy Superintendent of Police, Anti Corruption Bureau, Kurnool alleging that the appellant who, at the relevant time was the Assistant Director, Commissionerate of Technical Education, Hyderabad had on 3.10.1996 demanded by way of illegal gratification Rs. 1000/-for effecting renewal of the recognition of his (complainant) typing institute, being run in the name and style of Rama Typewriting Institute in Laxminagar B. Camp, Kurnool since 1992. The complaint disclosed that on negotiation, the demand was scaled down to Rs. 500/-and the appellant asked him (complainant) to meet him on 4.10.1996 in Room No. 68 of Meenakshi Lodge, Kurnool with the money demanded. Acting on the complaint, a case was registered and a trap was laid on 4.10.1996 and the tainted currency notes were recovered, in the process thereof, from the possession of the appellant. On completion of the investigation, charge-sheet was filed against the appellant, whereafter the charges under Sections 7 & 13(1)(d)(i) & (ii) read with Section 13(2) of the Act were framed against him to which he pleaded “not guilty”. At the trial, the prosecution examined seven witnesses and also adduced documentary evidence in support of the charges. As the complainant-S. Jagan Mohan Reddy had expired prior thereto, he could not be examined by the prosecution.

4. After the closure of the evidence of the prosecution, the appellant was examined under Section 313 Cr.P.C. and was confronted with all the incriminating materials brought on record. He, however, denied the same.

5. The learned trial court, on an elaborate analysis of the evidence available, convicted the appellant under Sections 7 and 13(1)(d)(i) & (ii) read with Section 13(2) of the Act and sentenced him to undergo R.I. for one year on each count and to pay fine of Rs. 1000/-, in default to suffer S.I. for three months for each offence. The sentences of imprisonment were, however, ordered to run concurrently.

6. As adverted to hereinabove, the High Court in the appeal preferred by the appellant, while upholding his conviction under Section 13(1)(d)(i) & (ii) read with Section 13(2) of the Act, did set at naught his conviction under Section 7 of the Act. The sentence qua his conviction under Section 13(1)(d)(i) & (ii) read with Section 13(2) of the Act was, as a corollary, sustained.

7. The learned senior counsel for the appellant has insistently urged that the prosecution had failed to prove any demand for the alleged illegal gratification involved and, thus, the vitally essential ingredient of the offences both under Sections 7 and 13 of the Act being conspicuously absent, the appellant ought to have been acquitted of the charge on both counts. The learned senior counsel has maintained that even assuming without admitting that the recovery of the tainted notes from the appellant had been established, sans the proof of demand which is a sine qua non for an offence both under Sections 7 and 13 of the Act, the appellant’s conviction as recorded by the High Court is on the face of the record unsustainable in law and on facts. Without prejudice to the above, learned senior counsel has asserted that the money shown to have been recovered from the possession of the appellant was by no mea

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