Created byFuzzy Cloud

Supreme Court of India

RAJESH GUPTAversusSTATE THROUGH CENTRAL BUREAU OF INVESTIGATION

Citation
2022 INSC 359
Decided
29 March 2022
Disposal
Appeal(s) allowed

Holding

A conviction under s.7 of the Prevention of Corruption Act cannot stand unless the prosecution proves beyond reasonable doubt both a demand for bribe and the accused’s voluntary acceptance of the same.

Summary

The appellant, a senior Income Tax officer, was convicted under the Prevention of Corruption Act for allegedly demanding and accepting a bribe of Rs.15,000 from the complainant, Madhu Bala, during a CBI‑operated trap. The prosecution relied primarily on the complainant’s testimony and on the recovery of currency notes laced with phenolphthalein powder found under a dak‑pad in the officer’s office. The Supreme Court held that for an offence under s.7 of the PC Act, proof of a demand for illegal gratification is essential and that a mere recovery of money, without corroborated evidence of demand and voluntary acceptance, does not satisfy the statutory requirement. The Court found the recorded conversations inaudible and the transcript unreliable, and it rejected the reliance on the sole testimony of the interested complainant without independent corroboration. It further ruled that the presumption under s.20 can be drawn only after demand and acceptance are proved beyond reasonable doubt. Consequently, the convictions were set aside and the appellant was acquitted.

Issues considered

  • The prosecution must prove a demand for illegal gratification as a sine qua non for conviction under s.7 of the Prevention of Corruption Act, 1988.
  • Whether the recovery of currency notes laced with phenolphthalein powder, without proof of demand and voluntary acceptance, suffices to establish the offence.
  • The admissibility and evidentiary value of inaudible tape‑recorded statements and transcripts prepared under s.161 Cr.P.C.
  • The applicability of the presumption under s.20 of the PC Act in the absence of proved demand and acceptance.

Legislation cited

Subjects

CorruptionPrevention of Corruption ActDemand of bribeAcceptance of bribeSection 20 presumptionTape‑recorded evidencePhenolphthalein testTrap operationBurden of proof

Judgment

864           SUPREME COURT
                        [2022]REPORTS
                               2 S.C.R. 864               [2022] 2 S.C.R.


A                             RAJESH GUPTA
                                      v.
       STATE THROUGH CENTRAL BUREAU OF INVESTIGATION
                      (Criminal Appeal No.1769 of 2014)
B                             MARCH 29, 2022
            [VINEET SARAN AND J. K. MAHESHWARI, JJ.]
             Prevention of Corruption Act, 1988: s.7 – For an offence
      under s.7, the demand of illegal gratification is a sine qua non to
      prove the guilt – Mere recovery of currency notes cannot constitute
C
      an offence under s.7 unless it is proved beyond reasonable doubt
      that accused voluntarily accepted the money, knowing it to be a
      bribe – The proof of acceptance of illegal gratification can follow
      only if there is proof of demand – In the instant case there are no
      sufficient evidence available which points towards such demand
D     except of the evidence of the complainant whose sole testimony
      cannot be relied upon without having corroboration with the
      independent witness as she being interested witness.
             Prevention of Corruption Act, 1988: s.20 – Presumption –
      When Applicable – The presumption under s.20 can be drawn only
E     when the demand is proved and the money is voluntarily accepted,
      knowing the fact that the said money has been delivered by way of
      bribe – In absence of proof of demand for illegal gratification and
      mere possession or recovery of the currency notes is not sufficient
      to constitute such offence – Presumption under s.20 can be drawn
      only after demand and acceptance of illegal gratification is proved
F
      beyond reasonable doubt – In absence of proving the recovery from
      the person or the drawer of the table or acceptance of the currency
      notes by accused with relevant material on record in furtherance to
      the proved demand, the guilt cannot be proved – In the case at
      hand, the currency notes were found on the table underneath dak
G     pad towards the visitors side – It is merely alleged that the said
      currency notes were wrapped in a note-sheet on which the traces of
      the finger prints of the appellant were found, which is treated as
      acceptance by the appellant – Merely the note sheet, in which the
      money was wrapped, on dipping in the Sodium Carbonate solution
      turned pink, traces of which were found in CFSL report, is not
H
                                     864
   RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                        865
                     INVESTIGATION

sufficient to prove the guilt of the appellant, in particular, when the   A
currency notes laced with phenolphthalein powder were found
towards the visitors side on the table and not recovered from the
person or drawer of his table and the solution in which the hands
of appellant were dipped, did not turn pink – In the facts and
circumstances of the case, the evidence so brought is not cogent
                                                                          B
and sufficient to prove the acceptance of bribe by the accused/
appellant – The findings as recorded by the trial court and the High
Court, drawing presumption under s.20 are completely perverse in
law as there is no evidence to prove the demand and the acceptance
and therefore the theory of preponderance of probabilities, is not
sustainable.                                                              C
      Evidence Act, 1872: Tape recorded statement – Evidentiary
value of – Discussed.
      Ram Singh v. Col. Ram Singh 1985 (Suppl) SCC 611 :
      [1985] Suppl. SCR 399; Panna Damodar Rathi v. State
      of Maharashtra (1979) 4 SCC 526; Ayyasami v. State                  D
      of Tamil Nadu (1992) 1 SCC 304; Meena (Smt) w/o
      Balwant Hemke v. State of Maharashtra (2000) 5 SCC
      21 : [2000] 3 SCR 12; B. Jayaraj v. State of Andhra
      Pradesh (2014) 13 SCC 55 : [2014] 4 SCR 554; C.M.
      Girish Babu v. CBI (2009) 3 SCC 779 : [2009] 2 SCR                  E
      1021 – relied on.
                       Case Law Reference
[1985] Suppl. SCR 399           relied on                 Para 12
(1979) 4 SCC 526                relied on                 Para 16         F
(1992) 1 SCC 304                relied on                 Para 16
[2000] 3 SCR 12                 relied on                 Para 19
[2014] 4 SCR 554                relied on                 Para 20
      CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No.                G
1769 of 2014.
      From the Judgment and Order dated 25.03.2014 of the High Court
of Delhi at New Delhi in Crl. A. No.89 of 2009.

                                                                          H
866             SUPREME COURT REPORTS                           [2022] 2 S.C.R.


A           V. Giri, Sr. Adv., Mehul M. Gupta, Ms. Ranjeeta Rohatgi, Ms.
      Samten Doma, Shrirang Varma, Ms. Pragya Bhagel, Advs. for the
      Appellant.
           Ms. Aishwarya Bhati, ASG, Ms. Arunima Dwivedi, Mohd. Akhi,
      Sughosh Subramanyam, Amit Sharma, Raghav Sharma, Ms. Poornima
B     Singh, Manvendra Bhati, Arvind Kumar Sharma, Advs. for the
      Respondent.
            The following Order of the Court was passed:
                                       ORDER
C           1. This appeal has been filed questioning the validity of the judgment
      passed on 25.3.2014 in Criminal Appeal No. 89 of 2009 by the High
      Court of Delhi confirming the judgment dated 24.1.2009 passed by Special
      Judge, Central District-02, Delhi in C.C. No. 195 of 2001 convicting the
      appellant for the offences under Sections 7 & 13 (2) read with Section
D     13(1)(d) of the Prevention of Corruption Act, 1988 (for short “PC Act”)
      and the order of sentence dated 27.1.2009 whereby for the offence
      under Section 7 of PC Act, the appellant was sentenced to 2 years
      rigorous imprisonment with a fine of Rs. 15,000/- and in default, further
      simple imprisonment for 30 days and for the offence under Section 13(2)
      read with Section 13(1)(d) of PC Act, rigorous imprisonment for 2½
E     years and fine of Rs. 15,000/-, in default, simple imprisonment for 30
      days. Both the sentences were directed to run concurrently.
            2. The appellant is an accused in a corruption case under the PC
      Act. As per prosecution allegations, the appellant, who was the Assistant
      Commissioner of Income Tax, Circle 20(1) at the concerned point of
F     time demanded and accepted the bribe of Rs.15,000/- from the
      complainant PW-3 Madhu Bala in regard to scrutiny of her case, which
      was pending with the appellant.
             3. The Trial Court, vide judgment dated 24.1.2009, concluded that
      on 7.3.2000, the appellant, while working as public servant (Assistant
G     Commissioner of Income Tax, Circle 20(1)), demanded bribe from the
      complainant PW3- Madhu Bala and in pursuance of his demand,
      accepted bribe/illegal gratification of Rs. 15,000/- from her on 9.3.2000
      in his office (cabin/chamber). Thus by corrupt and illegal means, he
      abused his position as a public servant and obtained pecuniary advantage
H     for himself. The appellant was found guilty for the charge under Sections
    RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                          867
                      INVESTIGATION

7 & 13(2) read with Section 13(1)(d) of PC Act. The High Court relying       A
upon the testimony of PW3-Madhu Bala, who was able to identify the
conversation Exb. P2 (cassette) from the transcript though found inaudible
and without proof of non-tampering the same, concluded that the demand
was proved. On the point of acceptance, relying upon the version of
PW3 Madhu Bala, who was said to put Rs. 15,000/- in a note sheet
                                                                             B
towards visitors side of the table underneath a dak-pad and in reference
to the CFSL report, proved the acceptance of bribe demanded by the
appellant. In addition, drawing presumption under Section 20 of PC Act,
confirmed the findings of the Trial Court and the sentence so awarded.
Aggrieved by the said judgments, this appeal has been filed.
                                                                             C
      4. We have heard Mr. V. Giri, learned senior counsel for the
appellant and Ms. Aishwarya Bhati, learned Additional Solicitor General,
appearing for the respondent at length and have perused the record.
        5. In a case of corruption under the PC Act, what is essentially
required to be proved is demand of money or illegal gratification by the
                                                                             D
accused, as well as acceptance and recovery of the same from the
accused with motive. In the present case, as per the prosecution, the
demand by the appellant from the complainant is alleged to be on four
occasions. Twice on 07.03.2000 and again twice on 09.03.2000. On the
first occasion on 07.03.2000, according to the complainant, the demand
is said to have been made by the appellant through the Chartered             E
Accountant namely; Mr. Rajiv Jain, according to whom, the appellant
had demanded a sum of Rs.50,000/- for settlement of the case in favour
of the complainant. Again on the said date itself, i.e. 07.03.2000, when
she visited the office of the appellant along with her employee (Mr.
Krishan Kumar), the demand made initially from her was of Rs.75,000/
                                                                             F
-, which is said to have been reduced to Rs.50,000/-.
       6. The complainant then approached Central Bureau of
Investigation (CBI) through some high-level connection of her (whose
name she did not disclose), and then on 09.03.2000 she visited the office
of the CBI and met the concerned Officer (Mr. Awasthi) who, after
                                                                             G
talking to her, advised her to speak to the appellant on phone with regard
to the matter of closing her scrutiny case, for which the alleged demand
of money was made by the appellant. The complainant made the call to
the appellant and the telephone conversation between the complainant
and the appellant accused is said to have been recorded, in which
admittedly the offer of money was being made by the complainant to the       H
868             SUPREME COURT REPORTS                            [2022] 2 S.C.R.


A     appellant when she said that she would give only Rs.15,000/- to which
      no acknowledgement or acceptance from the side of the appellant was
      there, except that the appellant agreed to meet the complainant in his
      office in the evening at about 04.00 p.m. The said conversation has been
      produced before the Court as Exb.P-2.
B             7. The second incident on 09.03.2000 is said to be when the
      complainant went to the office of the appellant at about 04.00 p.m.,
      accompanied by two independent witnesses, being Constable Babita
      Kapoor, who was not examined and PW5-B.S. Chauhan (shadow
      witnesses), who were both independent government officers, having been
      asked by the officials of the CBI to accompany the complainant so that
C
      they could be witnesses of the alleged illegal demand and gratification
      being handed over to the appellant. However, the said two independent
      shadow witnesses did not go inside the chamber of the appellant when
      the alleged demand and transaction of money is said to have taken place.
      It is the case of the prosecution that the complainant had gone there
D     alone inside the chamber of the appellant, which was a shared room in
      which there was a partition and other officers namely; PW6-N.C. Swain,
      DCIT and PW10-T. Kipgen, ACIT were also present on the other side
      of the partitioned room. The complainant had been given a Micro-Cassette
      Recorder with a Credit-Card Type Transmitter and the shadow witness
      PW5-B.S. Chauhan was given the ear-piece to the Credit-Card
E
      Transmitter to listen and record the conversation between the appellant
      and the complainant. The said conversations have been produced as
      Exb. P-1 and P-3. The currency notes, which were to be handed over
      by the complainant to the appellant, were laced with phenolphthalein
      powder. The complainant is said to have placed currency notes, totaling
F     Rs.15,000/-, on the visitor side of the office table of the appellant, wrapped
      in a piece of paper, which was then covered with the dak pad. There is
      no allegation of the money having been handed over personally to the
      appellant or kept inside the drawer of his table.
             8. The complainant is said to have then gone out of the office of
G     the appellant and thereafter the officers of the CBI entered and conducted
      the trap proceedings. They checked the appellant in person and also the
      drawers of his office table and his briefcase, but did not find any money,
      which was later recovered from the visitors side of the table underneath
      the dak pad, which was only on the indication of complainant after she
      was called again in chamber. The phenolphthalein test of the appellant
H
    RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                           869
                      INVESTIGATION

was conducted by asking the appellant to dip his hands in Sodium              A
Carbonate solution, but the colour of the solution did not change pink.
However, still the water which was collected and sent for CFSL
examination, and in such examination report, traces of phenolphthalein
are said to have been found. While the complainant was in the chamber
of the appellant, the conversation was to be recorded by her and also
                                                                              B
through the Credit Card Transmitter, but she skipped to push the button
of recorder, therefore, it could not be recorded. The other two officers
namely; PW6-Mr. N.C. Swain, Dy. CIT and PW10-Kipgen, ACIT, who
were in the same room with a partition, did not support the allegation of
demand and acceptance of bribe by the appellant. It was in these facts
that the appellant is said to have been made accused and convicted in         C
the case.
       9. As regards the alleged demand at the pre-trap stage, it is said
to have been made first time on 07.03.2000 through the Chartered
Accountant namely, Mr. Rajiv Jain and second time when complainant
visited the office of the appellant on the same date i.e. 7.3.2000 along      D
with her employee, Krishan Kumar. To prove the said two demands on
7.3.2000, neither Rajiv Jain, Chartered Accountant nor Krishan Kumar
(employee of the complainant) have been examined in the Court. It is to
be observed that before the accused is called upon to explain the
foundational fact of demand and acceptance, it must be proved by the
                                                                              E
prosecution by cogent evidence. The testimony of the complainant, who
is an interested or partisan witness with the success of trap, must be
tested in the same way as that of any other interested witness. Except
the testimony of PW3 Madhu Balal, no other material has been brought
on record to prove the said demand. Therefore, in our considered view,
pre-trap demand on 7.3.2000 has not been proved by the prosecution,           F
which is a foundational fact of the case. In our view, the finding recorded
by the Trial Court to prove the pre-trap demand i.e. on 7.3.2000 is without
any evidence on record and based on erratic evaluation, which is
mechanically confirmed by the High Court.
       10. At pre-trap stage, the third demand, as alleged, was made on       G
9.3.2000 on the basis of a telephonic conversation recorded in the office
of CBI. As per the testimony of PW3-Madhubala, second cassette Exb
P-2 is the conversation recorded in the office of CBI. The transcript is
in the shape of a statement of complainant under Section 161 Cr.P.C..
The said recording Exb. P2 was inaudible when played in the court
                                                                              H
870             SUPREME COURT REPORTS                            [2022] 2 S.C.R.


A     during the statement of PW3 Madhu Bala. As per her request, it was re-
      played, then only PW3 could identify part of the conversation taking
      clue from the transcript. About some part of the recording in the statement,
      she said that her car became out of order and she offered about Rs.
      15,000/-, but she could not gather other dialogue spoken by the accused,
      Rajesh Gupta clearly, except to agree for meeting the appellant at 4
B
      P.M. The net conclusion is that the said conversation was inaudible, as
      has rightly been observed by the High Court in paragraph 48 of the
      impugned judgment.
             11. The argument of the counsel for the appellant has substance
      that transcript cannot be produced in the form of a statement of the
C
      complainant under Section 161 Cr.P.C. because it was a conversation
      with the accused and cannot be her own version. At the same time,
      from the evidence brought on record, the said statement in the shape of
      transcript was of 11.6.2001, whereas the alleged incidence occurred 15
      months prior thereto i.e. on 9.3.2000. The accused applied to the Trial
D     Court to supply the transcript of the conversation, if any, prepared in the
      office of CBI, but at the time of hearing of the said application, the
      Public Prosecutor made a statement before the Court on 1.4.2002 and
      said that no transcript was prepared from the audio cassette Exb. P2,
      hence could not be supplied to the accused by Court, and his application
      for supply of transcript was disposed of on the basis of the statement
E
      made at the Bar by the Public Prosecutor. Had the transcript, if any,
      been with the prosecution on 11.6.2001, there was no reason for the said
      statement having been made before the Court. Thus, the said transcript,
      on the basis of which the clue is taken by the appellant while hearing the
      inaudible cassette Exb. P2 in the Court, was highly doubtful which, in
F     our view, cannot be relied upon. It is not out of place to observe that
      conversation of complainant and appellant in the office of CBI was
      recorded on the aid and advise of Mr. Awasthi and entire set-up for
      recording was arranged by him, but he was not produced as a witness
      by prosecution to prove the same.
G            12. On the issue of evidentiary value and credibility of the recording
      in the cases of trap, the law is well-settled in the case of Ram Singh vs.
      Col. Ram Singh 1985 (Suppl) SCC 611, wherein this Court held that
      tape-recorded statement is admissible in evidence if the voice of the
      speaker is identified by the maker of the record and other persons
      recognizing his voice. In case, the maker is unable to identify the voice,
H
    RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                            871
                      INVESTIGATION

strict proof would be required to determine whether or not, the said           A
voice is of alleged speaker. The accuracy of the tape-recorded statement
must be proved by the maker of the record by satisfactory evidence,
direct or circumstantial. The possibility of tampering with, or erasure of
any part of the tape-recorded statement must be totally excluded. The
voice of the particular speaker must be clearly audible and must not be
                                                                               B
lost or distorted by other sounds or disturbances, otherwise, the transcript
as prepared, is inadmissible in evidence.
        13. In view of the above discussion, it is clear that the pre-trap
recording made in the office of CBI and produced as Exb. P2 and stated
by PW3 Madhu Bala in her statement with the clue of transcript is not
                                                                               C
testified with the touchstone of the law laid down in the case of Ram
Singh (supra). As apparent from the record, the finding recorded by the
High Court that the said cassette is inaudible, PW3- Madhu Bala, during
playing of the cassette in the court, stated about some of the portion of
the recording looking to the transcript. Once the preparation of the
transcript itself is in question, as discussed above, clue cannot be taken     D
from the same and the inaudible cassette cannot be relied upon. Therefore,
in the opinion of this Court, the pre-trap recording for demand in the
office of CBI vide Exb. P2 on 9.3.2000 has not been proved.
       14. The shadow witness PW4-Virendra Prasad was present at
the time of conversation of the complainant and the appellant on 9.3.2000      E
in CBI office. In his Court statement, he said that the offer was made by
the complainant to the appellant and no demand at the instance of the
appellant was made. While, analyzing the testimony of this witness, the
Trial Court has rightly observed that from the testimony of PW4, it is
clear that no money was demanded by the appellant/accused. The other
                                                                               F
shadow witness PW5 B.S. Chauhan, who heard about the talk and was
present in the office of CBI states that the complainant had given offer
of Rs. 50,000/- but there was no positive response showing demand on
behalf of the appellant. He said in examination-in-chief that “aajao dekh
lege”, but in cross-examination, it is specifically stated by him that there
was no demand of money from the side of the appellant/accused. After           G
due appreciation of the aforesaid, it is clear that the conversation Exb.
P2 is inaudible and not proved. The said conversation which was tried to
be explained on the basis of the transcript is inadmissible in evidence
and that too in a statement recorded under Section 161 Cr.P.C. of the
complainant. The transcript dated 11.6.2001 is doubtful, more so in view
                                                                               H
872            SUPREME COURT REPORTS                           [2022] 2 S.C.R.


A     of the Trial Court order dated 1.4.2002 when it was recorded that there
      was no transcript avaibable. Thus, in reference to inadmissible transcript,
      no inference or even the preponderance of probability of demand can be
      established.
              15. The fourth demand, as alleged, was on 9.3.2000 in the office
B     of the appellant at the time of trap. In this regard, the complainant was
      advised to accompany PW5 B.S. Chauhan and lady Constable Babita
      Kapoor. As per the testimony of PW3 Madhu Bala, it is clear that PW5
      B.S. Chauhan and lady Constable Babita Kapoor did not accompany
      her to the chamber, which initially she said was out of their own will, but
C     later she stated that she herself asked them not to accompany her
      otherwise the accused would not accept the bribe. Therefore, at the
      time of the trap, it is only the complainant who went inside the chamber
      of the accused. She went in the chamber along with Micro-Cassette
      Recorder and a Credit Card Type Transmitter, the ear-piece of which
      was with PW 5 B.S. Chauhan. As per the testimony of the complainant,
D     it is clear that she skipped to start the Micro-Cassette Recorder, which
      she was having at the time of trap. Therefore, there is no recording of
      the conversation between the accused and the complainant during trap
      on 9.3.2000 and its transmission in the Credit Card Transmitter was also
      not possible. Further the Court has rightly found that both these exhibits
E     Exb. P1 & P3 were inaudible as admitted in the statement of PW3
      Madhu Bala itself.
            16. In view of the above discussion, except for the testimony of
      PW3 Madhu Bala (complainant), there is no corroborative evidence of
      demand, either on 7.3.2000 or 9.3.2000. The law is well-settled by the
F     judgments of this Court in Panna Damodar Rathi vs. State of
      Maharashtra (1979) 4 SCC 526 and Ayyasami vs. State of Tamil Nadu
      (1992)1SCC304, whereby it has been clarified that the sole testimony of
      the complainant, who is the interested witness, cannot be relied upon
      without having corroboration with the independent evidence.

G             17. For an offence under Section 7 of PC Act, the demand of
      illegal gratification is a sine qua non to prove the guilt. Mere recovery
      of currency notes cannot constitute an offence under Section 7 of PC
      Act, unless it is proved beyond reasonable doubt that accused voluntarily
      accepted the money, knowing it to be a bribe. The proof of acceptance
      of illegal gratification can follow only if there is proof of demand.
H
    RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                          873
                      INVESTIGATION

       18. In view of the foregoing, there is no iota of evidence by which   A
the demand can be proved. Thus, the conclusion of the Trial Court and
the High Court to prove the demand is based on surmises and erratic
approach ignoring the legal position as enunciated, which cannot be
sustained on the facts of the case.
       19. Reverting to the issue of acceptance of demand, it is not out     B
of place to refer the judgment of Meena (Smt) w/o Balwant Hemke
vs. State of Maharashtra (2000) 5 SCC 21 wherein this Court held that
mere recovery of the currency notes and positive result of the
phenolphthalein test is not enough in the peculiar circumstances of the
case to establish guilt of the appellant. The charge must be proved beyond   C
reasonable doubt. In absence of proving the recovery from the person
or the drawer of the table or acceptance of the currency notes by accused
with relevant material on record in furtherance to the proved demand,
the guilt cannot be proved. In the case at hand, the currency notes were
found on the table underneath dak-pad towards the visitors side. According
to the prosecution, the currency notes were laced with phenolphthalein       D
powder. As per the testimonies of PW3- Madhu Bala, PW4-Virendra
Prasad and PW5-B.S. Chauhan, it is clear that the recovery of currency
notes was made after calling PW3-Madhu Bala again in the chamber of
the appellant by the trap party and on her indication that the money was
lying at that particular place. When the hands of appellants were dipped     E
in the solution of sodium carbonate, the colour did not change into pink.
It is merely alleged that the said currency notes were wrapped in a note-
sheet on which the traces of the finger prints of the appellant were
found, which is treated as acceptance by the appellant. In addition to the
aforesaid, the note sheet paper, in which the currency notes were
wrapped, on being dipped in the solution of sodium carbonate turned          F
pink. After evaluation of the evidence, it is to be observed, safe seizure
of the solution of sodium carbonate has not been brought on record.
Merely the note sheet, in which the money was wrapped, on dipping in
the Sodium Carbonate solution turned pink, traces of which were found
in CFSL report, is not sufficient to prove the guilt of the appellant, in    G
particular, when the currency notes laced with phenolphthalein powder
were found towards the visitors side on the table and not recovered
from the person or drawer of his table and the solution in which the
hands of appellant were dipped, did not turn pink. In the facts and
circumstances of the case, in our opinion, the evidence so brought is not
                                                                             H
874             SUPREME COURT REPORTS                            [2022] 2 S.C.R.


A     cogent and sufficient to prove the acceptance of bribe by the accused/
      appellant.
              20. On the said issue, the judgments of this Court in B. Jayaraj
      vs. State of Andhra Pradesh (2014) 13 SCC 55 C.M. Girish Babu vs.
      CBI (2009) 3 SCC 779 are relevant, whereby this Court has clearly
B     spelt out that the recovery shall follow the proof of demand. The
      presumption under Section 20 of PC Act can be drawn only when the
      demand is proved and the money is voluntarily accepted, knowing the
      fact that the said money has been delivered by way of bribe. In absence
      of proof of demand for illegal gratification and mere possession or
      recovery of the currency notes is not sufficient to constitute such offence.
C
      It is clarified that presumption under Section 20 PC Act can be drawn
      only after demand and acceptance of illegal gratification is proved beyond
      reasonable doubt. In our considered opinion, the findings as recorded by
      the Trial Court and the High Court, drawing presumption under Section
      20 of the PC Act, are completely perverse in law. There is no evidence
D     to prove the demand and the acceptance. The theory of preponderance
      of probabilities, as applied in this case, is not sustainable and the finding
      of the High Court is liable to be set-aside.
             21. As per the discussion made hereinabove, it is clear that the
      concurrent findings recorded by the Trial Court, and affirmed by the
E     High Court, are not based on due appreciation of the material brought on
      record in the right perspective. In fact, it is a case in which no cogent
      evidence is available to prove the guilt of the accused for an offence
      under Sections 7 & 13(2) read with Section 13(1)(d) of PC Act. As per
      discussion made above, in the case at hand, the concurrent findings in
      the judgments of the Courts below cannot dissuade this Court from
F
      interfering in a case like this where the findings of conviction have been
      recorded merely on conjectures and erratic evaluation of evidence. The
      Court is always having an obligation of judicial conscience to correct the
      errors where the same are manifest. In our considered opinion, the
      judgments of the Courts below suffer from serious infirmities and manifest
G     error. There is no proof of demand at pre-trap stage or during trap. The
      Courts must not over-look the fundamental principle of ignorance of
      accused till the charge levelled against the appellant is established beyond
      reasonable doubt. Therefore, in our view, the conviction of the appellant
      has not been proved and the evaluation is based on conjectures and
      erratic evaluation.
H
    RAJESH GUPTA v. STATE THROUGH CENTRAL BUREAU OF                            875
                      INVESTIGATION

       22. As such, we set aside the concurrent judgments of the Trial         A
Court as well as of the High Court and hold the appellant to be not guilty
of the charges against him. Consequently, the appeal stands allowed.
The appellant is honourably acquitted.


Devika Gujral                                                Appeal allowed.   B
(Assisted by : Mahendra Yadav, LCRA)




                                                                               C




                                                                               D




                                                                               E




                                                                               F




                                                                               G




                                                                               H


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Corruption"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.