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2020 Supreme(Del) 1248
IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, J.
Central Bureau Of Investigation - Appellant
Versus
Vasant S Bhat & Ors. - Respondent
Criminal Leave Petition No. 533 of 2017
Decided On : 06-01-2020
Rajesh Kumar, Advocate, Saumya Johari, Advocate, Radhesh Makrandi, Advocate, Sumit Madan, Advocate, Sudarshan Rajan, Advocate, Mahesh Kumar, Advocate, Rohit Kumar, Advocate
The main legal point established is the requirement for the prosecution to prove misuse of official position and pecuniary advantage obtained by the accused to establish the alleged offenses.
Headnote:
Corruption - Prevention of Corruption Act, 1988 - IPC, 1860 - Section 13(2), Section 13(1)(d), Section 420, Section 120B - The judgment discusses the offenses under Sections 420/120B of the Indian Penal Code, 1860 (IPC) and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.
Fact of the Case:
The case involved allegations of abuse of official position, criminal conspiracy, and cheating in awarding supply contracts of pharmaceuticals and medical kits under certain projects. The Trial Court acquitted the accused of the offenses.
Finding of the Court:
The Court found that the prosecution failed to prove misuse of official position and unauthorized issuance of certificates. It also concluded that the accused did not obtain any pecuniary advantage or cause a loss to the Government, thus acquitting them of the alleged offenses.
Issues: The issues revolved around the misuse of official position, unauthorized issuance of certificates, and pecuniary advantage obtained by the accused.
Ratio Decidendi: The prosecution's failure to prove misuse of official position and unauthorized issuance of certificates led to the acquittal of the accused.
Final Decision: The petition seeking leave to appeal against the judgment of the Trial Court was dismissed.
JUDGMENT
Vibhu Bakhru, J. - The petitioner has filed the present petition, inter alia, seeking leave to appeal against a judgment dated 10.03.2017 passed by the Special Judge (PC Act) (CBI)-6, Patiala House Courts, New Delhi. By the impugned judgment dated 10.03.2017, the Trial Court acquitted the accused therein of the offences under Sections 420/120B of the Indian Penal Code, 1860 (IPC) and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.
2. The case before the Trial Court was registered pursuant to a complaint dated 21.08.2006 made by Mr MK Kejriwal, Under Secretary to the Government of India, Ministry of Health and Family Welfare. Thereafter, FIR No. RC SI8 2006 E 0007 under Sections 420/120B of the IPC and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988 (hereafter the ''PC Act'') was registered against Mr Vasant S Bhat (hereafter ''VSB); M/s Nestor Pharmaceuticals Ltd. (hereafter ''Nestor''); M/s Pure Pharma Ltd.; and unknown officials of M/s Hindustan Latex Ltd. (hereafter ''HLL'') and the Ministry of Health and Family Welfare.
3. In was alleged that between the years 1997 and 2002, VSB had abused his official position. He had entered into a criminal conspiracy with the other accused and showed undue favour to Nestor and M/s Pure Pharma Ltd in awarding supply contracts of pharmaceuticals and medical kits under the Child Survival and Safe Motherhood (CSSM) and Reproductive and Child Health (RCH-I) projects.
4. It was inter alia, alleged that (i) L1 bids (lowest bids) were ignored on flimsy grounds on several occasions and orders were placed with the two aforesaid firms, resulting in the contracts being awarded at abnormally higher rates; (ii) single bids were accepted from the two aforesaid firms, in violation of tender norms; (iii) the aforesaid two firms had systematically evaded procurement controls by colluding with other accused; (iv) substandard quality pharmaceuticals were supplied by the firms and accepted by HLL; and (v) there was short supply of the requisite drugs by the two aforesaid firms.
5. On 11.08.2015, the Trial Court framed the following charges against the accused:
5.1. VSB - That between the years 2001 and 2004, VSB had abused his position as a public servant by allowing Nestor to the supply drugs from its Goa unit even though Nestor had secured the contract for supply of drugs by submitting documents pertaining to its Faridabad unit. VSB did not use his discretion to terminate the contract and thereby, caused pecuniary gain to Nestor amounting to Rs.8.70 crores and a corresponding pecuniary loss to the Ministry of Health, Government of India. He, therefore, committed an offence punishable under Section 13(2) read with Section 13(1)(d) of the PC Act.
5.2. Nestor - Nestor was charged through Mr Pradeep Choudhary, Vice President (Institutional Sales) (hereafter ''PC''). Nestor was charged with cheating the Ministry of Health, Government of India between the years 2001 to 2004 by dishonestly inducing the said department to pay an amount of Rs.8.70 crores despite submission of documents of its Faridabad unit against contract agreement bids for the years 2001-02, 2002-03 and 2003-04 in respect of MEM tablets. Further, Nestor was charged with submitting documents (COPPs bearing no. 233/2001 dated 09.11.2001) in respect of bidding year 2001-02 and capacity and qualification certificate dated 09.11.2001, which was unauthorizedly issued from Mr Suresh K Dua (co-accused). It was alleged that this resulted in Nestor obtaining the contract for the supply of MEM tablets worth Rs.2.77 crores and this constituted an offence punishable under Section 420 of the IPC.
5.3 Mr Suresh K Dua (hereafter ''SKD'') - That between the years 2001 and 2004, SKD abused his position as a public servant (Deputy Drug Controller cum Licensing Authority, Haryana) and dishonestly issued COPP certificate bearing no. 233/2001 dated 09.11.2001 in respect of MEM tablets. Fu
