THE HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJU CRIMINAL APPEAL No.1549 of 2004 BETWEEEN: State: A.C.B. rep. by Inspector of Police. … Appellant AND B.Balaiah … Respondent THE HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL APPEAL No.1549 of 2004 JUDGMENT: The accused/respondent was working as Mandal Revenue Inspector in Mandal Revenue Office at Sangareddy. The Principal Special Judge for SPE and ACB cases, Hyderabad by judgment dated 19.02.2004 in CC.No.12 of 1994, acquitted the accused of the charges under Sections 7 and 13(1)(d)/13(2) of the Prevention of Corruption Act, 1988 (in short, the Act). Questioning the same, the State filed this appeal. 2. It is alleged that when PW1 approached the accused in connection with issue of solvency certificate on 28.05.1993, the accused demanded bribe of Rs.1,500/- from PW1 for doing the said official favour and that when PW1 reported the matter to Deputy Superintendent of Police, Anti Corruption Bureau(ACB), Nizamabad Range, he organized trap for the accused and that on 01.06.1993, during the course of trap, the accused demanded and accepted illegal gratification of Rs.800/- from PW1 and that he was caught red handed. Plea of the accused is one of total denial and one of not guilty. After trial, the lower Court found the accused not guilty of the charges. 3. There is no dispute that PW1 applied for solvency certificate in Mandal Revenue Office, Sangareddy and that the said application was sent to the accused for verification and report. During trial in the lower Court, the de facto complainant/PW1 and accompanying witness/mediator/PW2 turned hostile to the prosecution totally. PW2 was working as teacher in a High School at Sangareddy. He and PW1 belongs to same village. PW1 did not even speak to giving of Ex.P1 report to PW6, Deputy Superintendent of Police, ACB. It is evidence of PW1 that when he and PW2 went to Mandal Revenue Office, the accused informed them that he would conduct Panchanama of his house and thereafter, solvency certificate will be issued to him. According to PW1, the accused came to his village, observed his house, prepared panchanama, obtained signatures of the neighbours and went away. PW1 says that about 20 days thereafter, he met the accused at the office and enquired him about the solvency certificate and that the accused informed him about completion of work on his part by giving his report and that the accused asked him to meet the clerk in the office. PW1 says that when he informed the incidents in the Mandal Revenue Office to PW2, two persons who were with PW2, informed him that the accused would give solvency certificate only on payment of bribe to him and that PW2 gave Rs.800/- to him and asked him to go and pay the said amount to the accused and that when he approached the accused in his office and informed him about his readiness to pay money for issuing solvency certificate, the accused informed him about completion of his work already and about he requiring no money for the same. According to PW1, the accused went inside and brought his file and showed the report which he submitted already. PW1 says that then he thrusted the currency notes in his pant pocket asking him to see that certificate is issued to him, and that the accused pushed him out of his room and thereafter, other persons who were with PW2, entered inside the office. From the above evidence of PW1, the demand and acceptance of bribe are conspicuously absent. PW2 deposed that after PW1 came out of the office, he and another constable entered into office of the accused and that the Deputy Superintendent of Police obtained Rs.800/- from the accused. Even though PW2 is one of the mediators in Ex.P7 first mediators report for pre-trap proceedings and Ex.P8 second mediators report for post-trap proceedings, he did not support contents therein. He only admitted his signatures Exs.P3 and P4 contained in those mediators’ reports respectively. 4. It is contended by the Special Public Prosecutor that Ex.P8, post-trap proceedings coupled with evidence of another mediator/PW3 and trap laying officer/PW6, proved payment of bribe by PW1 to the accused and recovery of the same from the accused. In Ex.P8, it is noted that when PW6 questioned the accused whether he had accepted illegal gratification from the complainant, the accused gave affirmative reply. The alleged confession statement of the accused contained in Ex.P8, is hit by Section 26 of the Indian Evidence Act. It is not an admissible piece of evidence. At best, Exs.P8 and evidence of PW3 and PW6 can be taken for the proof of recovery of MO.1 tainted cash of Rs.800/- from the accused. PW1 did not say that the amount thrusted by him was tainted with any phenolphthalein powder. The question of drawing presumption under Section 20(1) of the Act from the fact of recovery of tainted cash from possession of the accused, may not arise in the absence of proof of demand for bribe and proof of acceptance of the tainted amount. (See Banarsi Dass Vs. State of Haryana[1]) 5. Even as per evidence of PW1 as well as evidence of PW4, who is a Senior Assistant working in Mandal Revenue Office, the accused completed his part of the work by giving his report on the application of PW1 for issue of Solvency Certificate. Therefore, it cannot be said that there was any official favour pending with him. In the light of the above evidence and circumstances on record, the lower Court rightly acquitted the accused after finding him not guilty of the charges. There are no grounds in this appeal to reverse the said finding of acquittal. 6. In the result, the Criminal Appeal is dismissed. _____________________________ SAMUDRALA GOVINDARAJULU, J Dated: 23.06.2011 ysk THE HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJUL CRIMINAL APPEAL No.1549 of 2004 DATED:23.06.2011 ysk [1] AIR 2010 SUPREME COURT 1589