Prevention of Corruption Act, 1988 – s.2(c) – Public servant – Stamp vendors, if public servants – Appellant-licensed stamp vendor, apprehended for selling Rs.10/- stamp paper at Rs.12/- – Trial court held the appellant guilty for offences punishable u/ss.7, 13(1)d, 13(2) – High Court holding that the stamp vendor is a public servant for the purpose of PC Act, upheld the conviction – Sustainability:
Held: Not sustainable – Stamp vendors across the country, by virtue of performing an important public duty and receiving remuneration from the Government for the discharge of such duty, are public servants within the ambit of s.2(c)(i) – Appellantlicensed stamp vendor was eligible for receiving discount on the purchase of stamp papers owing to the license that he was holding – Discount is traceable to and is governed by the 1934 Rules framed by the State Government – Thus, the appellant could be said to be “remunerated by the government” for the purposes of s.2(c)(i) – Appellant was discharging a duty in which both the State and the public have an interest, thus, falls within the ambit of a public servant – However, the prosecution failed in establishing the allegation of demand for illegal gratification and acceptance thereof in a trap laid beyond reasonable doubt, thus presumption u/s.20 does not arise – Conviction and sentence of the appellant for the offences u/s.7 and 13(1)(d) rw s.13(2) cannot be sustained, and thus, set aside – Delhi Province Stamp Rules, 1934. [Paras 52, 55, 56-58, 63, 64, 67, 69]
Prevention of Corruption Act, 1988 – s.2(c) – “Public servant” – Definition of – Legislative intent of the statute: Held: Legislature has used a comprehensive definition of “public servant” to achieve the purpose of punishing and curbing growing menace of corruption in government and semi-government departments – Definition of “public servant” should be given a wide and purposive construction so as to advance the object underlying the statute – In construing the definition of “public servant” the Court is required to adopt a purposive approach as would give effect to the intention of the legislature. [Paras 12, 68.1] Prevention of Corruption Act, 1988 – s.2(c)(i) – Public servant – Stamp vendors, if public servants – Interpretation of ‘Remuneration’ – Meaning of ‘Commission’:
Held: For the stamp vendor to be a public servant u/s.2(c)(i), two conditions to be fulfilled are that he is to be remunerated by the Government through fees or commission, and such remuneration is for the performance or discharge of a public duty – In terms of the 1934 Rules, when a licensed vendor procures stamps from the treasury at a discounted rate which is lower than their face value, and subsequently sells them to purchasers at their face value, the difference between the two amounts constitutes the vendor’s remuneration – Discount serves as a form of remuneration and operates as a commercial incentive, enabling the vendor not only to recoup the purchase amount but also to earn a commission in the nature of the differential amount between the procurement cost and the face value, hence, the discount is the only form of commission – Government remunerates a stamp vendor as he is facilitating the accessibility of stamps on behalf of the Government, and thus the role being performed by licensed stamp vendor is nothing short of a highly important public duty, essential for ensuring the efficient collection of revenue on behalf of the State – Term “commission” as used and understood in the context of s.194H of the 1961 Act is not stricto sensu similar to its usage in s.2(c)
(i) – Terms “fees or commission” must be construed so as to give full effect to the definition and the other provisions of the statute – Structure of the definition reduces the emphasis on the strictness of the relationship between the Government and the public servant, while placing greater focus on the performance of a public duty – Delhi Province Stamp Rules, 1934 – Income Tax Act, 1961 – s.194H. [Paras 19, 26, 28, 33, 41, 42] Prevention of Corruption Act, 1988 – s.2(c) – “Public servant” – Determination of status of public servant – Public duty as the determinant:
Held: It is the nature of duty being discharged by a person which assumes paramount importance when determining whether such person falls within the ambit of the definition of public servant as defined under the PC Act – Primary test of qualification for inclusion in the definition of “public servant” is whether the concerned person is performing any public duty – Once the nature of performance of duties gets crystallized, any person remunerated by the Government for the performance of any public duty or who holds an office by virtue of which he is authorized or required to perform any public duty, is a “public servant” within the meaning of the term defined u/s.2(c). [Paras 45, 46, 68.2] Interpretation of statutes – Rule of interpretation: Held: Every interpretation of statute must be undertaken by considering the statute in its entirety, the prior state of the law, other statutes in pari materia, the general scope and purpose of the legislation, and the mischief that the legislature intended to address – It is essential not only to consider the words used but also to examine the statement of objects and reasons. [Paras 43, 44]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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