Supreme Court Dismisses Appeal by Lokayuktha Police Against Acquittal in Bribery Case — Demand Not Proved. The Court held that the prosecution failed to establish demand of illegal gratification beyond reasonable doubt, and the contradictory testimony of the trap witness entitled the accused to benefit of doubt under Sections 7, 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988.

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Case Note & Summary

The Supreme Court dismissed the appeal filed by the State of Lokayuktha Police, Davanagere, against the acquittal of the respondent, C B Nagaraj, by the High Court of Karnataka. The respondent, an Extension Officer in the Taluka Panchayath, Davanagere, was convicted by the Special Judge, Davanagere, under Sections 7, 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988, for allegedly demanding and accepting a bribe of Rs. 1,500 from the complainant, E R Krishnamurthy, to forward a spot inspection report. The High Court set aside the conviction, holding that the demand was not proved beyond reasonable doubt. The Supreme Court, after analyzing the evidence, found that the only evidence of demand came from the complainant (PW1) and a trap witness (PW2), whose testimony was contradictory and incoherent. PW2 initially stated he did not hear the conversation inside the chamber but later claimed he saw the demand and acceptance from a distance. The Court noted that the complainant himself had signed the spot inspection report, which undermined his credibility. The Supreme Court held that the prosecution failed to prove the demand beyond reasonable doubt, and therefore, the presumption under Section 20 of the Act could not be invoked. The Court affirmed the High Court's judgment, emphasizing that the benefit of doubt must go to the accused when the prosecution's evidence is not clear and reliable. The appeal was dismissed, and the respondent's acquittal was upheld.

Headnote

A) Prevention of Corruption Act - Demand and Acceptance - Sections 7, 13(1)(d) read with 13(2) - Proof of Demand - The prosecution must prove demand of illegal gratification beyond reasonable doubt; presumption under Section 20 arises only after demand and acceptance are established. In the present case, the only evidence of demand came from the complainant (PW1) and a trap witness (PW2) whose testimony was contradictory and incoherent. The High Court rightly held that demand was not proved, and the Supreme Court affirmed, noting that the benefit of doubt must flow to the accused when the prosecution's evidence is not clear and reliable (Paras 21-24).

B) Prevention of Corruption Act - Presumption under Section 20 - Rebuttable Presumption - Section 20 - The presumption under Section 20 of the Act is rebuttable and arises only when it is proved that the public servant accepted or agreed to accept gratification other than legal remuneration. In this case, since the foundational fact of demand was not proved, the presumption could not be invoked against the respondent (Paras 9-10, 24).

C) Evidence Act - Credibility of Witness - Contradictory Testimony - Benefit of Doubt - When a prosecution witness (PW2) gives contradictory statements regarding the demand, the benefit of such inconsistency must go to the accused. The Supreme Court held that PW2's deposition was not coherent and slightly self-contradictory, and therefore, the respondent was entitled to the benefit of doubt (Paras 21-23).

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Issue of Consideration

Whether the High Court was justified in setting aside the conviction of the respondent under Sections 7, 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988 on the ground that the demand of illegal gratification was not proved beyond reasonable doubt.

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Final Decision

The Supreme Court dismissed the appeal and upheld the High Court's judgment acquitting the respondent. The Court held that the prosecution failed to prove the demand of illegal gratification beyond reasonable doubt, and the benefit of doubt must go to the accused.

Law Points

  • Presumption under Section 20 of Prevention of Corruption Act
  • 1988 arises only after demand and acceptance are proved
  • Demand must be proved beyond reasonable doubt
  • Benefit of doubt to accused when prosecution witness testimony is contradictory
  • Sole testimony of complainant requires greater scrutiny when uncorroborated
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Case Details

2025 INSC 736

Criminal Appeal No.1157 of 2015

2025-01-01

Ahsanuddin Amanullah

2025 INSC 736

State of Lokayuktha Police, Davanagere

C B Nagaraj

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Nature of Litigation

Criminal appeal against acquittal in a corruption case under the Prevention of Corruption Act, 1988.

Remedy Sought

The appellant (State of Lokayuktha Police) sought reversal of the High Court's acquittal of the respondent and restoration of the trial court's conviction.

Filing Reason

The appellant challenged the High Court's judgment setting aside the conviction of the respondent for demanding and accepting a bribe of Rs. 1,500.

Previous Decisions

The trial court convicted the respondent under Sections 7, 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988. The High Court set aside the conviction and acquitted the respondent.

Issues

Whether the demand of illegal gratification was proved beyond reasonable doubt. Whether the presumption under Section 20 of the Prevention of Corruption Act, 1988 could be invoked in the absence of clear proof of demand. Whether the contradictory testimony of the trap witness (PW2) entitled the respondent to the benefit of doubt.

Submissions/Arguments

Appellant argued that once recovery of bribe amount is proved, presumption under Section 20 arises, and the respondent's explanation of repayment of loan was not credible. Respondent argued that the complainant's evidence was not credible, the spot inspection report had already been sent, and the money was repayment of a loan given earlier.

Ratio Decidendi

In a prosecution under the Prevention of Corruption Act, 1988, the demand of illegal gratification must be proved beyond reasonable doubt. The presumption under Section 20 arises only after demand and acceptance are established. When the only evidence of demand comes from a complainant whose credibility is questionable and a trap witness whose testimony is contradictory and incoherent, the accused is entitled to the benefit of doubt.

Judgment Excerpts

The reference in PW2’s deposition being not very coherent and slightly self-contradictory, the benefit thereof has to flow to the Respondent, in the absence of PW2’s testimony being clear on this point. For it to be taken as fully reliable and made the sole basis to convict the Respondent, the same would require greater scrutiny apropos its veracity and reliability.

Procedural History

The trial court convicted the respondent on 23.12.2011. The respondent appealed to the High Court of Karnataka, which set aside the conviction on 09.07.2013. The State appealed to the Supreme Court, which dismissed the appeal on the date of judgment.

Acts & Sections

  • Prevention of Corruption Act, 1988: 7, 13(1)(d), 13(2), 20
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