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

2. Government of Andhra Pradesh and District Co-operative 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 u/s 482 of Code of Criminal Procedure (for short Code of Criminal Procedure)3. 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-clause (ix) of Clause (c) of Section 2 of the 1988 Act. In the opinion of the High Court, definition contained in Subclause (ix) of Clause (c) of Section 2 of the 1988 Act. In the opinion of the High Court, definition contained in Sub-clause (ix) of Clause (c) of Section 2 of the 1988 Act covers only President.

Court's reasoning:
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.