Supreme Court Upholds Acquittal of Public Servant in Prevention of Corruption Act Case Due to Unproven Demand. Demand of Illegal Gratification Not Established Beyond Reasonable Doubt as Complainant Turned Hostile and Key Independent Witness Not Examined Under Sections 7 and 13(1)(d) of Prevention of Corruption Act, 1988.

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Case Note & Summary

The dispute arose from a prosecution under the Prevention of Corruption Act, 1988, against a Taluk Supply Officer accused of demanding and accepting a bribe of Rs.500 from an Authorized Ration Dealer for countersigning an 'Abstract' required for ration shop operations. The trial court convicted the accused under Section 7 and Section 13(1)(d) read with Section 13(2) of the Act, imposing a sentence of two years and a fine. The High Court acquitted the accused, finding that the demand was not proved due to the complainant's prevaricating deposition and the non-examination of an independent witness who accompanied the complainant during the trap. The State appealed to the Supreme Court. The core legal issue was whether the demand of illegal gratification was established beyond reasonable doubt. The State argued that despite inconsistencies, the complainant's evidence, corroborated by independent witnesses and the trap officer, sufficed to prove demand and acceptance. The accused contended that the acquittal order fortified the presumption of innocence, and the complainant's denial of his prior statement under Section 161 of the Code of Criminal Procedure, 1973, vitiated the prosecution case. The Supreme Court analyzed the deposition of the complainant, who admitted making a complaint and participating in pre- and post-trap proceedings but denied the specific demand during cross-examination. The Court referred to precedents, including Neeraj Dutta v. State (NCT of Delhi), which emphasized that proof of demand and acceptance is essential for conviction under the Act, and Sat Paul v. Delhi Administration, which outlined principles for evaluating hostile witness testimony. The Court found that the complainant's prevarication, absence of an offer at the time of handing over the money, and failure to examine a key independent witness created a lacuna in proving the demand. Consequently, the Supreme Court upheld the High Court's acquittal, holding that the prosecution failed to establish the demand beyond reasonable doubt, and thus the offences under Sections 7 and 13(1)(d) were not made out.

Headnote

A) Criminal Law - Prevention of Corruption - Proof of Demand - Prevention of Corruption Act, 1988, Sections 7, 13(1)(d), 13(2) - The prosecution alleged that the accused, a Taluk Supply Officer, demanded a bribe of Rs.500 for countersigning an 'Abstract' from the complainant, an Authorized Ration Dealer. The trial court convicted the accused, but the High Court acquitted him, finding the demand not proved due to the complainant's prevaricating deposition and non-examination of an independent witness who accompanied the complainant during the trap. The Supreme Court upheld the acquittal, holding that proof of demand and acceptance of illegal gratification is a sine qua non for conviction under Sections 7 and 13(1)(d) of the Act, and the prosecution failed to establish the demand beyond reasonable doubt. (Paras 2, 5, 10-11)

B) Evidence Law - Hostile Witness - Credibility Assessment - Indian Evidence Act, 1872 - The complainant (PW1) turned hostile at trial, making inconsistent statements and denying his Section 161 statement regarding the demand during cross-examination. The Supreme Court, relying on Neeraj Dutta v. State (NCT of Delhi) and Sat Paul v. Delhi Administration, held that the testimony of a hostile witness cannot be treated as washed off the record altogether; the court must assess whether the witness is completely discredited or if part of the testimony remains creditworthy. In this case, the Court found the complainant's prevarication and denial of the demand, coupled with the non-examination of a key independent witness, rendered the evidence insufficient to prove the demand. (Paras 4, 6, 9, 12-13)

C) Criminal Law - Prevention of Corruption - Presumption Under Section 20 - Prevention of Corruption Act, 1988, Section 20 - The prosecution did not allege any offer of bribe by the complainant at the time of handing over the money to the accused. The Supreme Court noted that for invoking the presumption under Section 20 of the Act to establish guilt under Section 7, proof of an offer by the bribe giver along with acceptance by the public servant is necessary. Since there was no case of any offer made, the presumption could not be applied to prove the offence under Section 7. (Paras 5, 9)

Issue of Consideration: Whether the demand of illegal gratification by the accused public servant was proved beyond reasonable doubt to establish offences under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988.

Final Decision

The Supreme Court dismissed the appeal and upheld the High Court's acquittal of the accused. The Court held that the prosecution failed to prove the demand of illegal gratification beyond reasonable doubt, and thus the offences under Section 7 and Section 13(1)(d) of the Prevention of Corruption Act, 1988, were not established.

2026 LawText (SC) (04) 53

Criminal Appeal No. of 2026 (@Special Leave Petition (Crl.) No. 1808 of 2026)

2026-04-15

SANJAY KUMAR J. , K. VINOD CHANDRAN J.

2026 INSC 365

Shri Raghenth Basant, Shri P.B. Suresh Kumar

The State of Kerala

K.A. Abdul Rasheed

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

Remedy Sought

The State of Kerala appealed to the Supreme Court seeking reversal of the High Court's acquittal order and restoration of the trial court's conviction.

Filing Reason

Divergent findings between the trial court (conviction) and the High Court (acquittal) regarding proof of demand in the corruption case.

Previous Decisions

Trial court convicted the accused under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988, and imposed a sentence of two years with fine. High Court acquitted the accused, finding the demand not proved.

Issues

Whether the demand of illegal gratification by the accused public servant was proved beyond reasonable doubt to establish offences under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988.

Submissions/Arguments

State argued that despite inconsistencies, the complainant's evidence, corroborated by independent witnesses and the trap officer, proved demand and acceptance. Accused argued that the acquittal order fortified the presumption of innocence, and the complainant's denial of his prior statement under Section 161 CrPC vitiated the prosecution case.

Ratio Decidendi

Proof of demand and acceptance of illegal gratification is a sine qua non for conviction under Section 7 and Section 13(1)(d) of the Prevention of Corruption Act, 1988. The testimony of a hostile witness cannot be entirely disregarded but must be evaluated to determine if any part remains creditworthy; in this case, the complainant's prevarication and denial of demand, along with the non-examination of a key independent witness, rendered the evidence insufficient to prove demand.

Judgment Excerpts

The High Court found that the prevaricating deposition of the complainant who was examined as PW1 failed to establish the necessary ingredients to prove offences under both the sections; particularly the demand. Neeraj Dutta held that proof of demand and acceptance of illegal gratification by a public servant as a fact in issue is a sine qua non in order to establish the guilt of the public servant under Section 7 and 13(1)(d) of the Act. If the Judge finds that in the process, the credit of the witness has not been completely shaken, he may, after reading and considering the evidence of the witness, as a whole, with due caution and care, accept, in the light of the other evidence on the record, that part of his testimony which he finds to be creditworthy and act upon it.

Procedural History

Prosecution initiated under Prevention of Corruption Act, 1988. Trial court convicted the accused. High Court acquitted the accused. State filed special leave petition (Crl.) No. 1808 of 2026, which was granted leave and heard as Criminal Appeal No. of 2026.

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