The court affirmed that an Insolvency Professional, while performing public duties, qualifies as a public servant under the Prevention of Corruption Act, and the acceptance of bribes constitutes money laundering under the Prevention of Money Laundering Act.

JUDGMENT :

SUJIT NARAYAN PRASAD, J.

1.The instant revision application is being filed against order dated 08.06.2023 passed in Misc. Criminal Application No. 1291 of 2023 by learned Additional Judicial Commissioner XVIII-cum-Special Judge, PML Act, Ranchi, wherein the application filed by the petitioner for discharge in connection with ECIR Case No. 05 of 2021 registered under Section 3 punishable under Section 4 of the Prevention of Money Laundering Act, 2002 has been dismissed.

Facts of the case

2. The prosecution case, in brief, as per the complaint filed under Section 44 and 45 of the Prevention of Money Laundering Act, 2002 [in short 'PML Act, 2002'], is that a complaint case under the PML Act, 2002 was initiated against the petitioner on the basis of FIR registered by the CBI, ACB, Dhanbad being RC1(A)/2020-D dated 10.02.2020.

3.It is alleged in the aforesaid FIR, which was registered on the basis of complaint made by one Amit Sarawgi, Director of M/s Adi Ispat (P) Limited, that the petitioner had demanded a bribe of Rs.2,00,000/- per month for showing leniency in the insolvency resolution process for extending CIR process from 09 months to 02 years and also demanded Rs.20,00,000/- for obtaining favourable forensic audit/valuation report from his chosen Forensic Auditor/Valuer and for helping in re-possession of plant/company. The petitioner had offered him that SME, the complainant was entitled to participate in the auction proceeding of the Bank and if he met the demands, he would prepare his report leniently enabling him re-possess his plant/company. The complaint was discreetly verified. Trap team was constituted and raid was conducted at Giridih at the Company office, where the petitioner was caught read handed on 11.2.2020 in the presence of independent witnesses accepting the illegal gratification from the complainant.

4.The CBI, ACB Dhanbad, after investigation of the matter submitted charge-sheet on 31.12.2020 under Section 7 of the PC Act and, therefore, the present complaint under Section 44 and 45 of the PML Act, 2002 was initiated against the petitioner.

5. After submission of charge-sheet, the petitioner filed discharge petition being Misc. Criminal Application No. 1291 of 2023 in connection with ECIR Case No. 05 of 2021 before the learned Additional Judicial Commissioner XVIII- cum-Special Judge, PML Act, Ranchi, which was dismissed vide order dated order dated 08.06.2023, hence the present application has been filed.

Argument on behalf of the learned counsel for the petitioner:

6.Mr. Sumeet Gadodia, learned counsel for the petitioner has assailed the impugned order, inter alia, on the following grounds.

7.It has been submitted that even if the allegations made in the complaint case is accepted on its face, then also no offence under Section 3 of the PML Act, 2002 is made out against the petitioner.

8.The petitioner is an 'Insolvency Professional' having unimpeachable experience of 25 years. It has been submitted that under the scheme of Insolvency and Bankruptcy Code, 2016 ,(I & B Code 2016) before filing an insolvency application the applicant has to propose the name of an 'Interim Resolution Professional '[IRP], accordingly, herein, the financial creditor in this case i.e., State Bank of India, Antaghat, Patna being the applicant sought the consent of the petitioner to act as the IRP for the Corporate Insolvency Resolution Process [CIRP], which the petitioner consented vide letter dated 03.06.2019. Accordingly, the Financial Creditor [SBI] filed an insolvency petition against the corporate debtor before the National Company Law Tribunal, Kolkata Branch [NCLT], which was allowed and the petitioner was appointed as Interim Resolution Professional [IRP].

9.After being appointed as IRP, the petitioner in compliance of the Code and Regulation made thereunder, made a public announcement of the initiation of CIRP of the Corporate Debtor on 27.11.2019 and invited claims from the creditors of the Corporate Debtor. The petit