Case: GOVT. OF ANDHRA PRADESH Vs. GEN. MG. DIST. CO-OP. CENTRAL BANK LTD

specified co-operative societies, and does not include other employees of such societies, the general provision contained in Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act shall have no application. It is argued that the special provision in Sub-clause (ix) shall exclude the general provision in Sub-clause (iii). 6. After hearing the Learned Counsel appearing for the parties, our conclusion is that the High Court is clearly in error in relying on sub-clause (ix) and overlooking Sub-clause (iii) of Clause (c) of Section 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. 7. From the above quoted Sub-clause (ix) of Clause (c) of Section 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 co-operative societies. But employees or servants of a co-operative society which is controlled or aided by the Government, are covered by Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act. Merely because such employees of co-operative societies are not covered by subclause (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 subclause (iii) of Clause (c) of Section 2 of the 1988 Act. It is not disputed that the Respondent/accused is in service of a co-operative Central Bank which is an authority or body controlled and aided by the government. 8. It cannot be lost sight of that the 1988 Act, as its predecessor that is the repealed Act of 1947 on the same subject, was brought into force with avowed purpose of effective prevention of bribery and corruption.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 Section 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, Paragraph 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 Sections 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. 9. Clause 2 of the Notes on Clauses in Gazette of India Extraordinary, Part II, Section 2, further clarifies the legislative intent thus: Clause 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. 10. Under the repealed Act of 1947 as provided in Section 2 of the 1988 Act, the definition of public servant was restricted to public servants as defined in Section 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 Section 2 of the 1988 Act. 11. In constructing definition of pubic servant in Clause (c) of Section 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. 12. As a matter of fact, we find that the point arising before us on the definition of public servant that it does include employee of a banking co-operative 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 and Anr. v. Prabhakarrao and Anr. 2002 (1) JT (Suppl. 1) (SC) 5 13. The other decision relied on behalf of the Respondent in the case of State of Maharashtra Vs. Laljit Rajshi Shah and Others, 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 Section 21 of Indian Penal Code.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]6. After hearing the Learned Counsel appearing for the parties, our conclusion is that the High Court is clearly in error in relying on sub-clause (ix) and overlooking Sub-clause (iii) of Clause (c) of Section 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.7. From the above quoted Sub-clause (ix) of Clause (c) of Section 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 co-operative societies. But employees or servants of a co-operative society which is controlled or aided by the Government, are covered by Sub-clause (iii) of Clause (c) of Section 2 of the 1988 Act. Merely because such employees of co-operative societies are not covered by subclause (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 subclause (iii) of Clause (c) of Section 2 of the 1988 Act. It is not disputed that the Respondent/accused is in service of a co-operative Central Bank which is an authority or body controlled and aided by the government.8. 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 Section 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, Paragraph 3 of the Statement of Objects and Reasons reads:11. In constructing definition of pubic servant in Clause (c) of Section 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 575.12. As a matter of fact, we find that the point arising before us on the definition of public servant that it does include employee of a banking co-operative 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 and Anr. v. Prabhakarrao and Anr. 2002 (1) JT (Suppl. 1) (SC) 513. The other decision relied on behalf of the Respondent in the case of State of Maharashtra Vs. Laljit Rajshi Shah and Others, 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 Section 21 of Indian Penal Code.