The judgment underscores the requirement to establish the demand for bribe and the need for impartial investigation in corruption cases.

Anjana Prakash, J.

1. The appellant has been convicted for the offence under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 and sentenced to rigorous imprisonment for a period of six months and one year respectively by judgment dated 31.7.2001 by the Special Judge, CBI, North Bihar, Patna, in Special Case No. 14/96/R.C. Case No. 13(A) of 1996.

2. The facts of the case are that on 15.6.1994 the complainant had given an application to the District Industry Centre, Madhubani, for loan of Rs. 80,000/- for setting up an ice factory. The District Industry Centre after having processed the application sanctioned the same and sent it to the Allahabad Bank for releasing the said loan amount. On 28.8.1995, Rs. 4,000/- i.e. 5% was paid to the complainant and the same was deposited in the bank. The bank also disbursed additionally a sum of Rs. 10,000/- for the foundation. On 20.10.1995, the quotation was filed by the complainant and thereafter on 23.12.1995, the bank passed the delivery order to the Orient Refrigeration Company. On 8.1.1996, all the articles allegedly were delivered to the complainant. The complainants grouse was that after he received the articles concerned, he submitted the bill to the Appellant-the Branch Manager for release of the further amount but instead of making payments he deferred payment of the same and instead demanded Rs. 4,000/- as bribe.

3. The appellant being the Branch Manager, Allahabad Bank, Laukahi Branch, Madhubani, was charged for having accepted rupees four thousand as bribe money for releasing the balance loan amount of Rs. 17,000/- payable to the complainant. The charge reads as follows:-

"Firstly.-That you, being a public servant employed as Branch Manager, Allahabad, Laukahi Branch, District-Madhubani (Bihar) on 23.2.96 at Laukahi Branch, Allahabad Bank demanded and accepted an amount of Rs. 4,000/- from Shri Ram Nath San for yourself, as gratification other than legal remuneration as a motive or reward for releasing the loan instalments to him under Prime Minister Rojgar Yojna and thereby committed an offence punishable under Section 7 of the P.C. Act and within my cognizance.

Secondly.-That you, being a public servant employed as Branch Manager, Allahabad Bank, Laukahi Branch, District-Madhubani (Bihar) on 23.2.96 at Laukahi Branch, Allahabad Bank by corrupt or illegal means or by otherwise abusing your position as such public servant obtained for yourself pecuniary advantage to the extent of Rs. 4,000/- from Shri Ram Nath Sah and Specified in Section 13(1)(d) of the P.C. Act, 1988 and thereby committed an offence punishable under Section 13(2) of that Act and within my cognizance."

4. To prove its case the prosecution examined 14 witnesses out of whom PW-1 Anil Kumar Sinha is the employee of the bank, who has certified the sanction order and is, therefore, formal in nature. PW-2 Chitranjan Singh, an employee of the Industry Department is also formal in nature, who has explained procedure of disbursement of loan. PW-3 Shashi Shekhar Pandey was the Branch Manager of the Allahabad Bank and he also explained the procedure of loan disbursement.

5. The salient features of disbursement of loan is that once an application was made by the loanee the same was processed either at the District Industry Office or at the bank and if the project was found feasible the project was sanctioned. Once the project was sanctioned, the bank issues a delivery order to the company which was supposed to deliver the goods to the loanee. After the supply of goods, the company concerned was supposed to furnish a copy of the bill to the bank for payment in lieu of articles supplied. Thereafter the payments were made to the supplier company but it was only done after the bank was satisfied at its end that the articles had actually been supplied to the loanee.

6. PW-4 Jivachh Jha is an employee of the bank who also substantiated the procedure of loan disbursement.