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KARNATAKA HIGH COURT
S. Vishwajith Shetty, J.
G. Krishnegowda, S/o Gopalagowda – Appellant
Versus
State of Karnataka, Anti Corruption
Bureau – Respondent
Crl.P. No.2801/2021
Decided on 15-07-2021

Advocates:
Counsel for the Parties:
For the Appellant :By Sri Papegowda B., Advocate.
For the Respondent:Sri Manmohan. P. N., Advocate

IMPORTANT POINTS
(1) Employee of a co-operative society which is controlled or aided by Government is covered within comprehensive definition of word ‘public servant’ as defined under P.C. Act.
(2) A public servant need not be a Government/civil servant, but a Government/civil servant is always a public servant.
(3) Courts should not place reliance on decisions without discussing as to how factual situation fits in with fact situation of decision on which reliance is placed.



Headnote:

(A) Prevention of Corruption Act, 1988 – Sections 13(1)(b) read with 13(2) – Criminal Procedure Code, 1973 – Section 482 – Possession of disproportionate assets as against known sources of his income – Quashing petition – Petitioner is said to be Project Manager of an institution which undertakes contracts taking no assistance of State Government or Central Government and it is a is a body registered under Karnataka Societies Registration Act, 1960 – Kendra has been receiving funds from State as well as from Central Government – A person who holds an office by virtue of which he is authorized or required to perform any public duty, and any person or employee of any institution if it has been receiving or if it has received any financial assistance from the State or Central Government, shall be considered as a public servant – A public servant need not be a Government/civil servant, but a Government/civil servant is always a public servant – Corruption in our country is a growing menace and P.C. Act being a welfare legislation is required to be interpreted keeping in mind object and spirit of statute – In furtherance of fight against corruption broad interpretation to provisions of this statute is required to be given and arms of this Act is required to be extended to the maximum – Offences under P.C. Act can be invoked not only against a public servant but also against a person, who by virtue of his office has been discharging ‘public duty – Good laws alone would be not sufficient to make our country corruption free, but there has to be effective enforcement of same and efforts should be towards making concerned accountable – Demanding bribe is a crime so is offering bribe – Criminal Petition dismissed. (Paras 9, 11, 13, 21, 24, 25, 26 and 27)

(B) Precedent – Courts should not place reliance on decisions without discussing as to how factual situation fits in with fact situation of decision on which reliance is placed – Dismissal of a special leave petition in limine by a non-speaking order does not justify any inference that by necessary implication contentions raised in special leave petition on merits of case have been rejected by Supreme Court – Effect of a non-speaking order of dismissal of a special leave petition without anything more indicating grounds or reasons of its dismissal must, by necessary implication, be taken to be that Supreme Court had decided only that it was not a fit case where special leave should be granted – It cannot be assumed that it had necessarily decided by implication all questions in relation to merits of award, which was under challenge before Supreme Court in special leave petition. (Paras 16, 17 and 18)

Result: Criminal Petition dismissed.

ORDER

Corruption hurts everyone. Corruption erodes the trust of a common man in the system. Corruption effects the society, the industry, the economy, the mankind and the nation at large. Corruption has been in existence even during ancient times and it will continue to exist and our vision has to be to curb the same and make our nation corruption free.

2. Petitioner who is the sole accused in Crime No.2/2021 registered by the Anti Corruption Bureau (ACB), Chickkaballapura, for the offences punishable under Sections 13(1)(b) read with 13(2) of the Prevention of Corruption Act, 1988 (for short, ‘P.C. Act’), has filed this petition under Section 482 Cr.PC with a prayer to quash the FIR and all further proceedings in Crime No.2/2021 which is now pending before the Court of Principal District & Sessions Judge, Chickkaballapura.

3. Brief facts of the case as revealed from the records are, petitioner is working as a Project Manager in Nirmithi Kendra, Chikkaballapura Taluk and District, which is a society registered in the year 2008 under the provisions of the Karnataka Societies Registration Act, 1960. The Governing Body of the Nirmithi Kendra comprises of the Deputy Commissioner of the District as the Chairman, Chief Executive Officer of the Zilla Panchayat as the Executive Chairman, Deputy Secretary (Development) of the Zilla Panchayat as the Member Secretary, the Project Manager of Kolar District Nirmithi Kendra, the Executive Engineer, Zilla Panchayat Engineering Division, the District Welfare Officer, Chikkaballapur, the DDPI, Chikkaballapura, the Project Manager, Chickkaballapura Nirmithi Kendra, amongst others as members. The administration of the Kendra is governed by the Governing Body. The principal object of the Kendra is to develop skills in construction and to undertake the civil construction works assigned by the Government.

4. On receipt of a source report that the petitioner who is working as a Project Manager in District Nirmithi Kendra, Chikkaballapura, was possessing disproportionate assets as against the known sources of his income, the Inspector of Police, ACB, Chikkaballapura, had forwarded the said report to the Superintendent of Police, ACB Central Zone, Bengaluru, based on which, FIR in Crime No.2/2021 was registered against the petitioner. Being aggrieved by the same, petitioner has approached this Court with a prayer to quash the same.

5. Learned Counsel for the petitioner submits that the respondent-authority has no power to register a case against the petitioner under the provisions of the P.C. Act, for the simple reason that the petitioner is not a public servant. He submits that the petitioner is an employee of Nirmithi Kendra which is a society and the said society has not been receiving any funds either from the State Government or the Central Government. He submits that in identical circumstances, this Court in the case of Gopinath alias Gopinathsa v. The Superintendent of Police, Karnataka Lokayukta, Bijapur & Another, 2014(4) KCCR 3668, has held that the employee of the Nirmithi Kendra cannot be termed as a public servant, and therefore, had quashed the criminal proceedings initiated against the petitioner therein under the P.C. Act by the Karnataka Lokayukta Police. He submits that the said judgment was challenged by the State before the Hon’ble Supreme Court and the special leave petition was dismissed. He also submits that relying upon the judgment in Gopinath’s case (supra), a coordinate bench of this Court in Crl.P.No.169/2014 had quashed the entire proceedings in respect of the petitioner therein who was also an employee of the Nirmithi Kendra. He refers to Annexure-D which is a communication issued by the Principal Secretary to the Government, Housing Department, to the President of Bengaluru Nirmithi Kendra, and submits that in the said communication, the request for deputation of employees of the Nirmithi Kendra to other departments of the State was declined on the ground that the e

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