IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
S. Murtaza Fazl Ali, J.
Shanti Swarup Malhotra - Appellant
Versus
State - Respondent
Cr. Ist Appeal No. 24 And 28/972
Decided On : 24 July, 1973
PREVENTION OF CORRUPTION ACT - SECTION 5(2) - PUBLIC SERVANT - ABUSE OF POSITION - OBTAINING VALUABLE THING OR PECUNIARY ADVANTAGE - INTERPRETATION - APPLICATION TO FACTS - CONVICTION AND SENTENCE - APPEAL.
Fact of the Case:
The appellant, Shanti Swarup Malhotra, was convicted under S. 5 (2) of the Prevention of Corruption Act and sentenced to one year's rigorous imprisonment and a fine of Rs. 1000/-, in default to undergo further rigorous imprisonment for three months, for having been guilty of criminal misconduct in the discharge of his duty as provided for by S. 5. (1) (d),of the Act. The appellant, Om Prakash, was convicted under S. 420 Ranbir P. C. and sentenced to two years rigorous imprisonment and a fine of Rs. 1000/-, in default to undergo rigorous imprisonment for a further period of three months.
Finding of the Court:
The court found that the appellant, Malhotra, had abused his position as a public servant by discarding the statutory rules, by not acting as a prudent officer, by showing undue accommodation to the accused Om Prakash and by not trying to verify the antecedents of the firm of the accused before making advance payment. The court also found that Malhotra had obtained a substantial benefit for Om Prakash by making advance payment of Rs. 19,800/- to him even before the package was delivered to the department, and that he had caused wrongful loss to the Government to the tune of Rs. 19,800/- and Rs. 660/- which had to be deposited as security by Om Prakash even before making the supplies.
Issues: Whether the appellant, Malhotra, had abused his position as a public servant and obtained a valuable thing or pecuniary advantage for himself or any other person, thereby committing an offence under S. 5 (2) of the Prevention of Corruption Act.
Ratio Decidendi: The court held that the appellant, Malhotra, had committed an offence under S. 5 (2) of the Prevention of Corruption Act by abusing his position as a public servant and obtaining a substantial benefit for Om Prakash by making advance payment of Rs. 19,800/- to him even before the package was delivered to the department, and by causing wrongful loss to the Government to the tune of Rs. 19,800/- and Rs. 660/- which had to be deposited as security by Om Prakash even before making the supplies.
Final Decision: The court dismissed the appeals and affirmed the convictions and sentences imposed on the appellants, Om Prakash and S.S. Malhotra.
The appellant, Shanti Swarup Malhotra, has been convicted by the Special Judge under S. 5 (2) of the Prevention of Corruption Act and sentenced to one years rigorous imprisonment and to a fine of Rs. 1000/-, in default to undergo further rigorous imprisonment for three months, for having been guilty of criminal misconduct in the discharge of his duty as provided for by S. 5. (1) (d),of the Act.
There are two other cases of a similar nature against the accused, but the learned judge has ordered the sentences in all the cases to run concurrently.
The appellant, Om Prakash, has been convicted under S. 420 Ranbir P. C. and sentenced to two years rigorous imprisonment and to a fine of Rs. 1000/-, in default to undergo rigorous imprisonment for a further period of three months.
2. Put briefly, the prosecution case is that the appellant, Malhotra, was on the relevant date Director of Geology and Mining of the State of Jammu and Kashmir. The office ubmitted a proposal to the appellant for obtaining some tools and machines and accordingly Malhotra called tenders or supply of a Cylinder Boring Machine, an Air Compressor and a few GI pipes. The tenders were called on 12-2-1966 and were to be opened in the presence of the enderers on 4-3-1966. The tender notice clearly provided that the tenderers should deposit a call deposit receipt equivalent to 3% of the cost of the articles ordered which would be refunded to the successful tenderer and treated as security from the successful tenderer. It was further provided that the security would be liable to forfeiture at he discretion of the appellant, Malhotra, if the firm concerned failed to comply with the supply order. In response to the tender notice the accused, Om Prakash, who was one of the so-called proprietors of the firm, Prakash Sales Corporation having its headquarters at 907, Rangmahal, SP Mukerji Marg, Delhi-6, submitted his tender for all the three articles. On opening the tenders, the appellant Malhotra accepted the tender of the accused, Om Prakash for all the three articles and placed an order with him for supply of the articles. This order was placed on 22-3-1966 and the firm was directed to make the supply by 25-3-1966.
In his tender the accused, Om Prakash, had stipulated that the rates would be charged for Jammu CST extra 90% through Bank against RR. In other words in his tender the appellant Om Prakash had clearly intimated to the Director that he was prepared to make the supplier if an advance payment of 90% was paid to him against the receipt. By his letter dated 24-3-1966 the Director accepted this condition of the appellant Om Prakash and placed an order for supply of the three articles. He also made it clear that 90% advance payment would be made against proof of despatch and the balance would be paid on receipt and inspection of the goods. The Director further ordered the firm to deposit a security of Rs. 100/- immediately before making the supplies. This supply order is Ex. P. G. and is admittedly signed by the accused Malhotra. Thereafter vide Ex. PH the accused Om Prakash informed the Director that the goods ordered had already been despatched and submitted a bill for payment of Rs. 2,157-30. In the case of supply of pipe fittings the Director by his letter Ex. PI (dated 24-3-1966) wrote to the firm that the supplies should be completed by 25-3-1966 and that a security of Rs. 400/- should be deposited Accordingly the accused, Om Prakash, sent his bill for these items totalling Rs, 7,622.46 out of which he claimed 90% advance payment. The letter enclosing the bill is marked Ex. PJ.
It may be pertinent to note here that in spite of the clear directions of the Director, the accused Om Prakash neither deposited the security of 3% as provided for in the tender notice nor the securities of Rs. 100/- and Rs. 400/- as dire
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.