Case: Government of Andhra Pradesh Vs. District Coop. Central Bank Ltd

1. Special Leave to appeal is granted. 2. The learned counsel appearing for the parties are heard finally on merits of the case. 3. Government of Andhra Pradesh and District Cooperative Central Bank Limited, Nellore, through its General Manager, have preferred this appeal challenging the Order dated 26-9-2001 of the Division Bench of High Court of Andhra Pradesh whereby criminal case instituted against the respondent/accused, who was working as Supervisor in the District Cooperative Central Bank Limited, Nellore, for alleged offence of accepting bribe punishable under provisions of the Prevention of Corruption Act, 1988 (for short the 1988 Act) has been quashed in proceedings under S.482 of Criminal Procedure Code (for short Cr. P.C.)4. The High Court by the impugned order quashed the criminal case pending against the respondent No. 1 under the 1988 Act on the sole ground that the accused is not a public servant as defined in sub-cl. (ix) of Clause.(c) of S.2 of the 1988 Act. In the opinion of the High Court, definition contained in sub-cl. (ix) of Clause.(c) of S.2 of the 1988 Act. In the opinion of the High Court, definition contained in sub-cl. (ix) of Clause.(c) of S.2 of the 1988 Act covers only President. Secretary and other office bearers of a registered cooperative society engaged amongst other business in banking, S.2 of the 1988 Act with relevant Clause.(c) and sub-cl. (iii) & (ix) read as under:- "2. Definition.- In this Act, unless the context otherwise requires,-(a)&(b)......(c) "Public Servant" means,-(iii) any person in the service or pay of a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in S.617 of the Companies Act, 1956 (1 of 1956);(ix) any person who is the President, Secretary or other office-bearer of a registered cooperative society engaged in agriculture, industry, trade or banking, receiving or having received any financial aid from the Central Government or a State Government or from any corporation established by or under a Central, Provincial or State Act, or any authority or body owned or controlled or aided by the Government or a Government company as defined in S.617 of the Companies Act, 1956 (1 of 1956)" 5. The learned counsel appearing for the State and the District Cooperative Central Bank Limited, Nellore submit that the definition of public servant in Cl.(c) of S.2 of the 1988 Act is very wide and the respondent/accused who is employed as Supervisor in the District Cooperative Central Bank Limited which is "an authority or a body owned or controlled or aided by the Government" in terms of sub-cl. (iii) of Cl.(c) of S.2 of the 1988 Act, clearly falls within the definition of public servant. 6. On the other hand, learned counsel appearing for the respondent/ accused, who supports the impugned judgment of High Court by placing reliance on the decisions of the Supreme Court in the cases of State of Gujarat & Anr. v. Patel Ramjibhai Danabhai & Ors. etc. (1979 (3) SCC 347 ) and Maharashtra State Board of Secondary v. Higher Secondary Education & Anr. Etc. (1984 (4) SCC 27 ) contends that on comparative reading of sub-els, (iii) & (ix) of Clause.(c) of S.2 of the 1988 Act, the principle of interpretation Generalia Specialibus non derogant would apply. There being a special provision in sub-cl. (ix) which covers only certain holders of offices of the specified cooperative societies, and does not include other employees of such societies, the general provision contained in sub-cl. (iii) of Clause.(c) of S.2 of the 1988 Act shall have no application. It is argued that the special provision in sub-cl. (ix) shall exclude the general provision in sub-cl. (iii). 7. After hearing the learned counsel appearing for the parties, our conclusion is that the High Court is clearly in error in relying on sub-cl. (ix) and overlooking sub-cl. (iii) of Clause.(c) of S.2 of the 1988 Act for quashing the proceedings on the ground that the respondent/accused is not covered by the definition of public servant.8. From the above quoted sub-cl. (ix) of Clause.(c) of S.2 of the 1988 Act, it is evident that in the expansive definition of public servant, elected office-bearers with president and Secretary of a registered cooperative society which is engaged in trade among others in banking and receiving or having received any financial aid from the Central or State Government, are included although such elected office bearers are not servants in employment of the cooperative societies. But employees or servants of a cooperative society which is controlled or aided by the Government, are covered by sub-cl.(iii) of Clause.(c) of S.2 of the 1988 Act. Merely because such employees of cooperative societies are not covered by sub-cl. (ix) along with holders of elective officers, High Court ought not to have overlooked that the respondent, who is admittedly an employee of a cooperative bank which is controlled and aided by the government, is covered within the comprehensive definition of public servant as contained in sub-cl. (iii) of Clause.(c) of S.2 of the 1988 Act. It is not disputed that the respondent/accused is in service of a cooperative Central Bank which is an authority or body controlled and aided by the government.9. It cannot be lost sight of that the 1988 Act, as its predecessor that is the repealed Act of 1947 on the same subject, was brought into force with avowed purpose of effective prevention of bribery and corruption. The Act of 1988 which repeals and replaces the Act of 1947 contains a very wide definition of public servant in Clause.(c) of S.2 of the 1988 Act. The Statement of Objects and Reasons contained in the Bill by which the Act was introduced in the Legislature throws light on the intention of the legislature in providing a very comprehensive definition of word public servant, Para.3 of the Statement of Objects and Reasons reads :- "3. The bill, inter alia, envisages widening the scope of the definition of the expression public servant, incorporation of offences under S.161 to 165A of the Indian Penal Code, enhancement of penalties provided for these offences and incorporation of a provision that the order of the trial Court upholding the grant of sanction for prosecution would be final if it has not already been challenged and the trial has commenced. In order to expedite the proceedings, provisions for day-to-day trial of cases and prohibitory provisions with regard to grant of stay and exercise of powers of revision on interlocutory orders have also been included." 10. C1.2 of the Notes on Clauses in Gazette of India Extraordinary, Part II, S.2, further clarifies the legislative intent thus:- "Cl. 2. The clause defines the expressions used in the Bill, Clause.2(c) defines "public servant". In the existing definition the emphasis is on the authority employing and the authority remunerating. In the proposed definition the emphasis is on public duty. The definition of "election" is based on the definition of this expression in the Indian Penal Code." 11. Under the repealed Act of 1947 as provided in S.2 of the 1988 Act, the definition of public servant was restricted to public servants as defined in S.21 of the Indian Penal Code. In order to curb effectively bribery and corruption not only in government establishments and departments but also in other semi-governmental authorities and bodies and their departments where the employees are entrusted with public duty, a comprehensive definition of public servant has been given in Clause.(c) of S.2 of the 1988 Act.12. In constructing definition of pubic servant in Cl.(c) of S.2 of the 1988 Act, the Court is required to adopt a purposive approach as would give effect to the intention of legislature. In that view Statement of Objects and Reasons contained in the Bill leading to the passing of the Act can be taken of assistance of. It gives the background in which the legislation was enacted. The present Act, with much wider definition of public servant, was brought in force to purify public administration. When the legislature has used such comprehensive definition of public servant to achieve the purpose of punishing and curbing growing corruption in government and semi-government departments, it would be appropriate not to limit the contents of definition clause by construction which would be against the spirit of the statute. The definition of public servant, therefore, deserves a wide construction. (See State of Madhya Pradesh v. Shri Ram Singh (AIR 2000 SC 575).13. As a matter of f act, we find that the point arising before us on the definition of public servant that it does include employee of a banking cooperative society which is controlled or aided by the Government is clearly covered against the respondent/ accused by the judgment in the case of State of Maharashtra & Anr. v. Prabhakarrao & Anr. (2002 (1) JT (Suppl. 1) (SC) 5).14. The other decision relied on behalf of the respondent in the case of State of Maharashtra v. Laljit Rajshi Shah & Ors. (2000 (2) SCC 699 ) is distinguishable as it was based on interpretation of the definition of public servant as was contained in the repealed Act of 1947 which restricted it to cover only such public servants as are included in S.21 of Indian Penal Code.

Decision reasoning: 1[ds]7. After hearing the learned counsel appearing for the parties, our conclusion is that the High Court is clearly in error in relying on(ix) and overlooking(iii) of Clause.(c) of S.2 of the 1988 Act for quashing the proceedings on the ground that the respondent/accused is not covered by the definition of public servant.8. From the above quoted(ix) of Clause.(c) of S.2 of the 1988 Act, it is evident that in the expansive definition of public servant, electedwith president and Secretary of a registered cooperative society which is engaged in trade among others in banking and receiving or having received any financial aid from the Central or State Government, are included although such elected office bearers are not servants in employment of the cooperative societies. But employees or servants of a cooperative society which is controlled or aided by the Government, are covered byof Clause.(c) of S.2 of the 1988 Act. Merely because such employees of cooperative societies are not covered by(ix) along with holders of elective officers, High Court ought not to have overlooked that the respondent, who is admittedly an employee of a cooperative bank which is controlled and aided by the government, is covered within the comprehensive definition of public servant as contained in(iii) of Clause.(c) of S.2 of the 1988 Act. It is not disputed that the respondent/accused is in service of a cooperative Central Bank which is an authority or body controlled and aided by the government.9. It cannot be lost sight of that the 1988 Act, as its predecessor that is the repealed Act of 1947 on the same subject, was brought into force with avowed purpose of effective prevention of bribery and corruption. The Act of 1988 which repeals and replaces the Act of 1947 contains a very wide definition of public servant in Clause.(c) of S.2 of the 1988 Act. The Statement of Objects and Reasons contained in the Bill by which the Act was introduced in the Legislature throws light on the intention of the legislature in providing a very comprehensive definition of word public servant, Para.3 of the Statement of Objects and Reasons readsThe bill, inter alia, envisages widening the scope of the definition of the expression public servant, incorporation of offences under S.161 to 165A of the Indian Penal Code, enhancement of penalties provided for these offences and incorporation of a provision that the order of the trial Court upholding the grant of sanction for prosecution would be final if it has not already been challenged and the trial has commenced. In order to expedite the proceedings, provisions fortrial of cases and prohibitory provisions with regard to grant of stay and exercise of powers of revision on interlocutory orders have also been included.C1.2 of the Notes on Clauses in Gazette of India Extraordinary, Part II, S.2, further clarifies the legislative intent2. The clause defines the expressions used in the Bill, Clause.2(c) defines "public servant". In the existing definition the emphasis is on the authority employing and the authority remunerating. In the proposed definition the emphasis is on public duty. The definition of "election" is based on the definition of this expression in the Indian Penal Code.Under the repealed Act of 1947 as provided in S.2 of the 1988 Act, the definition of public servant was restricted to public servants as defined in S.21 of the Indian Penal Code. In order to curb effectively bribery and corruption not only in government establishments and departments but also in otherauthorities and bodies and their departments where the employees are entrusted with public duty, a comprehensive definition of public servant has been given in Clause.(c) of S.2 of the 1988 Act.12. In constructing definition of pubic servant in Cl.(c) of S.2 of the 1988 Act, the Court is required to adopt a purposive approach as would give effect to the intention of legislature. In that view Statement of Objects and Reasons contained in the Bill leading to the passing of the Act can be taken of assistance of. It gives the background in which the legislation was enacted. The present Act, with much wider definition of public servant, was brought in force to purify public administration. When the legislature has used such comprehensive definition of public servant to achieve the purpose of punishing and curbing growing corruption in government anddepartments, it would be appropriate not to limit the contents of definition clause by construction which would be against the spirit of the statute. The definition of public servant, therefore, deserves a wide construction. (See State of Madhya Pradesh v. Shri Ram Singh (AIR 2000 SC 575).13. As a matter of f act, we find that the point arising before us on the definition of public servant that it does include employee of a banking cooperative society which is controlled or aided by the Government is clearly covered against the respondent/ accused by the judgment in the case of State of Maharashtra & Anr. v. Prabhakarrao & Anr. (2002 (1) JT (Suppl. 1) (SC) 5).14. The other decision relied on behalf of the respondent in the case of State of Maharashtra v. Laljit Rajshi Shah & Ors. (2000 (2) SCC 699 ) is distinguishable as it was based on interpretation of the definition of public servant as was contained in the repealed Act of 1947 which restricted it to cover only such public servants as are included in S.21 of Indian Penal Code.