DHANESHWAR NARAIN SAXENA versus THE DELHI ADMINISTRATION

3S.C.R. SUPREME COURT REPORTS

Act must follow. Such law is not capable of being called in question on the ground that it abridges any fundamental right conferred by Arts.14 19 and 31, if it has been assented to by the Preside~t. The notification was thus valid, if the law was valid.

In the result, the appeals fail, and are dis· missed with costs, one set only.

Appeals dismissed.

A1 ahant Sankarshan Ramanuja Das Goswami Etc. FJtc Etv. v. The State of Oriasa Hidayatullah J.

DHANESHW AR NARAIN SAXENA

v. THE DELHI ADMINISTRATION

(B. P. SINHA, c. J.,'S. K. DAS, A. K. SARKAR, N. RAJAGOPALAAYYANGAR andJ.R. MuDHOLKAR, JJ.)

Prevention of Corruption-Public servant-Misconduct, not in the discharge of one's duty-Corrupting other public servant--Criminal Misconduct-Ingredients of offence-Prevention of Cor1'uption Act, 1947 (2 of 1947), ss. 5 (1) (d), ti (1) (d).

The appellant who was an Upper Division Clerk in the office of the Chief Commissioner of Delhi was convicted of an offence under s. 5 (1) ( d) of the Prevention of Corruption Act, 1947, punishable under s. 5 (2) of the Act. The prosecution case was that R who was anxious to obtain licente for double· barralled shot-gun sought the assistance of the appellant who knew him, that the appellant who had nothing to do with the issuing of licences for firearms which was done by the office of the Deputy Commissioner, offered to use his good offices in ex-pediting and furthering the progress of R's application for licence in the appropriate department if he was paid Rs. 2501-, and that when the licence was cancelled on its being found that R was not entitled to it the appellant promised to have it restored if he was paid further sum of Rs. 180/-. The trial Judge found that the appellant taking advantage of his position as an em-ployee in the Chief Commissioner's office and of R's ignorance and anxiety to get the licence, had induced him to part with the money on the promise that he would get his licence restored. The appellant pleaded that on the facts found no offence under s. 5( 1) ( d) of the Act had been made out and relied on State o/ Ajmer v. Shivji Lal, (1959) Supp. 2 S. C. R. 739.

1961 August 24.

260; ~SUPREl\IE COURT REPORTS

19fJ1 . ·Held, that in order to constitute an offence under cl. ( d) DhaneBhwar of s. 5 (I) of the Prevention of Corruption Act, 194 7, it is not Naraitt Saxena '_ necCssary, that the public servant in question, while misconduct·. v: ing himself, should have done so in the discharge of his duty; TM Delhi Adlniniatration. , Supp. [and ][.that ]2 S: [the ]C. R. [decision in ]739, to the [State oJAjmer ]contrary, is wrong. · · [v. ][Shivji Lal. ][(1959) ]

If public. servant takes money from third perwn, by - corrupt or illegal means or otherwise -abusing his ufficial posi-tion,. in order to c;:orrupt some other public.· servant, · he commits an offence under s. 5 (I) (d), even though there was no question of his misconducting hitnself in the dis-. charge of his own duty; ·

· CruMINAL APPELLATE Jun1snwnoN : Criminal Appeal No. 6 of 1959.

. AppeaLby speciaUeave Jrom:..the judgment and order dated the February 4, 1957, ofthe Punjab . High. Court. (Circuit Bench) at . Delhi. in Criminal Appeal No. 173-C of 1956. '' • · ' . T. o: 1llathur, p; 0. Mathur and A. N. G0yal, for the Appellants. . .. , , · . B. K. Khanna, and T. M. Sen; for the Respon-dents. i · · · · .dl~6h~dugust,24. ~The_Judgment,ofthe Court was elivere . by .. . . . . . ·

· ., SiNnl, C. J.-·· This'ajipeai' was fir~t .heard by

Sinha C. J.

, ., Division Bench of three-judges, composed of the . Chief Justice, Imam and Shah, JJ., on the· 19th of •February last year.'" In the course of the ·argument, the learned counsel for · the ·a pp&llant invited ·the · ·attentfon of'the Court to the decision.of Division . Bench-.of.·this. Comt,:.in ··.the ,State of '.Ajmerv. · ,, Shivji Lal (1) •. '.Ihe·Bench hearing the case, being of. opinion that the decision aforesaid of this Court '. 'required reconsideration, referred the·'case ·to ', .. larger bench; and' that is how it has come before "!ls.

•. 'It is necessary necessary ~o· state state the' following facts in following facts in in

-.·.:c •. 'It is necessary necessary ~o· state state the' following facts in following facts in in ~ ·order to' bring out tlie question offaw to' be. de.ter-:i; milled in)his case.' Th~ . appellant was an' upper -.Division ,Clerk in. the office ;of the. Chief Com-\• missioner ·of Delhi'· He " had· ·.come · · to ' know . - , _ . -. I i . . -: : _· ~ '. ; i -'_:..: \ ·.~ \ r (I) [1959J Supp. 2. s.c.R. 739.'

:! S.C.R. SUPREME COURT REPORTS

• Ram Narain, who is the chief prosecution witness in this case and who is fireman serving in Delhi Fire Brigade. Ram Narain, aforesaid, had for long time been anxious to obtain licence for double-barrelled shot-gun. It is alleged that in this connection he had sought the assistance of the appellant, who had nothing to do with the issuing of licences for firearms, which is done by the office of the Deputy Commissioner, Delhi. The prose-cution story, which, as indicated above, rests mainly on the statement of Ram Narain, is that he had submitted two applications during the year 1953 for the purpose of obtaining the licence aforesaid, with the assistance of the appellant. Those applications did not produce any results. In 1954, he made another attempt iii. the same direction and approached the appellant to help him. The appellant held out hopes Gf su00ess in obtaining the licence if he was paid Rs. 250. Ram Narain paid only Rs. 140 and held out promise to pay the remaining amount after his sister's marriage. Thus, the third application for the licence was made in which Ram Narain's salary was declared to be Rs. 105 per month. This• third attempt proved successful and Ham Narain was ·granted the necessary licence. Before the learned single Judge of the High Court at Delhi, before whom the case came up on appeal, it was not disputed that the appellant had used his good offices in expediting and furthering the progress of the application in the appropriate department. It appearn that eventually the authorities concerned were appraised of the fact that the salary of Ram N°arain was only Rs. 85 P"r mori.th and that the declaration in the form that his salary was Rs. 105 per month had been falsely made with ,·iew to get over the difficulty that applications for licences for firearms by Governmmit servants drawing lf·ss than Rs. 100 per month woul<l not ordinarily be considered. When the authorities came to know the true facts about Ram Narain's status in Government service.

Dlianeshwar ;Vara in Saxena v. The Delhi Admi11i;tration Si11ha C. J.

Dhantt1hwar Ntlrai11 Saxena v. Thi! l)rlhi Admini8trution Sinha C. J,

his licence was <',ancelled and he was called upon to show cause why ho should not be prosecut<'d for having made false statement. Ram Xarain marle his reprcHentation to the authoritie~ and showed cauRe against the action proposr·d to be taken against him, alh•ging that his monthly salary had hecn falselv declared in the relevant form for applicati<1n for· the firearm on tho advice of the appellant. The prosecution story further is that when Ram Narain got into the trouble, as aforesaid, about the false Htakm<'nt in his appliration form, he again approachccl the nppellant. Tho appellnnt dcmandecl anothPr Rs. 180 as reward for his getting the licc'lce restored. Ultimntely, Ram :N"arain agreed to PRY the appellant Rs. 90 in advance and promis<'d to pay the remaining Rs. 90 after tho lir,.nce had actullv been restored to him. Ham !\arain for rcasrms of his own, appeared to have approached his superior officers and thus the mattt>r reached the Chief Fire Officer, who appraised the police of the proposed illeual transaction between Ram N'arain and the ap1wllant. The police deciclecl to lay trnp for catching the appellant rcd-hand<·d. AccordingJ:v, Ram Narain saw the appellant in the Chief Commissioner's office and accompanied him to tho canteen run hy Kishorilal, who hns been examined as Defence \Vitness 1. This canteen is situated on the Aliporc Road near the Chief Commis.~ioncr's office. There, 8arwan Singh taxi drh·er, and Head Constable Gurbachan Singh in plain clothes, \1 ho were exam incd as prosecution witnesses, \1·pre pr<·sC'nt by arrnngem<·nt. Rnm Narain lmn<lrd O\'er the ninety rupc<'S, which he had been given by the polic:P, to the appellant. On the pre-nrrangcd ;;ignal bei11g gi\'en by Sarwan Singh, Inspector Snrendra Pal Sinf!h Prosecution Witn<·ss lli, at once entered th1~ c~nt<·<·n. At thnt time the ap1wllant, i;us1x·eting that he was hPing trapped, attempted to hand over the money received by him from R;;m ;'\ram.in to Ki8horilal, the proprietor of tho cant<'el.. Tho head constable Gurbacban

3 S.C.R. SUPREME COURT REPORTS 263

~. Singh, however, seized the accused and prevented ~ him from handing over ·the currency notes to Kishorilal. That is the story which was recited in the First Information Report drawn up in the Civil Lines Police Station at 2-30 P.M. th11t very day, August 5, 1954. After investigation by com pet'ent police officer under permission from the l\Iagistrate, the appellant Was placed on his trial before Shri JawalB DasA, Special Judge Delhi. He framed the following charge against him.

"I, Jawala Dass, Special Judge, Delhi, hereby charge you (Dhaneshwar Narain) son of Babu Lakshmi Narain resident of 21, Todar Mal Lane, New Delhi as follows :

That you on or about 5th August 1954 in the canteen on 6, Alipore Road, being public servant employed in the office of the Chief Commissioner, Delhi by corrupt and illegal moans and by otherwise busing your position as public servant obtained for ynurself sum of Rs. 90 from Ram Narain at ihe aforesaid Canteen for the restoration of his cancelled licence for- the double-barrelled gun which had beon originally granted to him by the District Magistrate Delhi and thereby committed an offence u/s 161 I.P.C. or in the alternative u/s 5( l)(d) punishable u/s 5(2) of the Prevention of Corruption Act, which is within my cognizance.

And I hereby direct that you be tried by this Court for the aforesaid offences mentioned in the charge".

The learned Judge came to the conclusion that the evidence produced by the prosecution brought the charge home to the accused, and that the accused, taking advantage of his own position as an em-ployee in the Chief Co~mis~ioner's office and of Ram Na.rain's ignorance and anxiety to get the licence had in:luced him to part with the money on the pro-mise that he will get his licence restored, He also

1961 DhGne$hwar Narain Sa:e,na v. The D1lhi Administration Sinha C.J.

[1962] .

264 ·~ ; SUPREME COpRT REPORTS ,.

1961 found th~t at the time of making . this . demand the Dha ... ... hwa~ appellant. had. not told Ram .Narain that he.wanted Narain Suena . the money for ~omeone who. was .. fn, :a· position to.' The Delhi Delhi issue the, licence . and .that therefore, the case did ·• Adminiatra•ion. not fall .within 8~ 161 of the Indian.Pen.al Ccide. On" Sin~ C,I •. \!that reasonin~ .he c.onvicted the.-appelJant. under · s.5(1) (d) punishable under 8. 5 (2) of the Prevention . of Corl'llptii:m ,A~t ·(II of 19.J.7)-hereipafter called the· Act-. and. sentenced him 'to. six months, rigorous imprisonment'. The' appellant. preferred an appeal which was.heard, by Mr. Justice Falshaw_of . . the Punjs,b-High Court .. The learrn:id Judge, by his judgment and order dated February 4,1957. 8ubstan· tially affirmed the. fin.dings. of'the·;Iearned Special Judge and maintained 'the order of conviction and 8enterice. ~ He· f< accordingly': dismissed'. the. appeal. The· appellant; failing-_ to obtain ·a certificate from the High Court that his was• :i;•ifit ·'case ·for further appeal to this'. Court,: applied for, and· obtained fr oni this Court, special leave. to oni this Court, special leave. to this Court, special leave. to Court, special leave. to leave. to to appeal from the

Dha ... ... hwa~ Narain Suena The Delhi Delhi Adminiatra•ion.

fr oni this Court, special leave. to oni this Court, special leave. to this Court, special leave. to Court, special leave. to leave. to to appeal from . ju?g~ent of th~ siI_igl~; ~,ud~e of ~he High Cou~t .

.. · . Before this . Court· it has · been ··strenuously argued 'that :on 'the: findings' of fact arrived at by t~e courts ,below, ,acct:pting tho pr?secution story as told' by the main prosecution witness. ,Ram Narain', no offence uridcr s. 5(1)(d) of the Act has been' ·made out. Reliance was placed mainly upon the deCision of the DivisiOn ·Bench of.this' Court in State ' of 'Ajmer v. Shivji Lal. ([1]).' : That case, if correctly: decided,. 'certainly supports the appellant, contenti~n/ · because it' has been laid down in that . case• that ·il1 order to 'attract :'the operation of . s. I\ (l)(d) of the Act it wasnecessal'y element of the crime charged: that the public servant should haye miHconducted himself in :the diecharge. of his own . .. _. duty, aml · that : if the . official favour proznised. by. the public s0rvant to the giver': of the.• money was . not· hi the hands of the public ~ervant; he could not be::said 'to have misconducte.d himself in. •he dis-charge of.his .own•duty.;[1]. In that, case, 'the; accused .. (!) [1959] Sopp. 2.s.C.R;:739.' ., .. .. ! . . .. .... ' . .... ' . ' .

., .. .. ! . . .. .... ' . .... ' . ' .

J.. .....

.... ' . I

3 S.C.R.

person was school teacher and the charge against him was that he had promised to the giver of the money to secure job for him in the Railway Run-ning Shed at Mount Abu. It was not part of his duty to make any SUC'h appointment and, therefore, when he took the money for procuring job for the complainant, he could not be convicted for commit-ting misconduct within the meaning of s. 5 (2) of the Act. The ratio of the d6cision is contained in the fol101Ying paragraph of the judgment in that case :

"The offence under this provision consists of criminal misconduct in the discharge of his duty. In order, therefore, that this offence is committed there should be misconduct bv the public servant in the discharge of his duty. In other words the public servant must do something in connection with his own duty and thereby obtain money for himself or for any other person by corrupt or illegal means or by otherwise abusing his position. If public gervant takes money from third per-son in order to corrupt some other public servant and there is no question of his mis-conducting himself in the discharge of his own duty, that action may be an offence under s. l61 of the Indian Penal Code but would not be an offence s. 5(2) read with s. 5(1 )(d) of the Prevention of Corruption Act. The Pssence of an offence under s. 5(2) read withs. 5 (l) (d) is that the public servant should do som<>tbing in the discharge of his own duty and thPrebv obtain any valuable thing or pecuniary advan-tage for himself or for any other pPrson by corrupt or illegal means or by otherwise abus-ing his position. The words "by otherwise abi1sing hi>f position" read along with the words "in the discharge of his duty'' appear-ing in s. 5 (I )(d) make it quite c!Par that ~n offence under that section requires that the public servant should misconduct himself in the discharge of his own duty. In the

Dhaneshwar Narain Saxena v. The Delhi Administratf1 Sinha .•

Dharushwa1' ]l arain Saxena v.' The Delhi Admini.ttration

SinhaC.·J.

, --, __ .---

. SUPREME COURT REPORTS [1962]

\ : '. \ -present case, the accused ·was teacher and it was no part of his duty to make appoint-menta in the Running Shed at Abu Road. , There would,' therefore, 1ie no question of his · committing misconduct in the discharge of his duty when he took money for procuring job ·for PremSingh in the Running Shed. So far, therefore, as the charge under s. 5( l}(d) is con-cerned, we are of opinion that there was no question of th!i accused misconducting himself.

in the discharge of' his 'own duty in the circumstances of this case arid it must fail." The relevant portion of s. 5 of the Act is in these termg: · · · · • . -~ "5. C~iminal misconduct in discharge of·official duty-., · · -

. . · .··. (lj ·A: public· servant is ·said to commit the offence . of criminal' misconduct · · i_n ~he discharge of his duty-·

<a> •.. : ...... ••·•··

(b). ~.:~ ••. ~ ...... .

(c) ,,,-.;: ........ : .

. ( d) if he, by corrupt or illegal :means or by otherwise abusing his position as public servant,· obtains ·for himself or for any other person ·any valuable thing or , pecuniary advantage. . , · .

. . (2j Any public servant who c·ommits criminal misconduct in the discharge of his duty shall he· punishable with imprisonment for term which may extend to seven years, or with fine, or with both."

It will he observed that the heading· of s. 5 is

'.Criminal misconduct . in the discharge of official duty'. That is new:offence which was created by the Act, apart from and in addition to offences under the Indian Penal Code, like those under s.161 etc.

The legislature :i.dvisedly widened the scope of the crime by giving very wide definition in s. 5 with view to punish those who, holding public office and taking advantai(e of their official position, obtain any val!lable thing or pecuniary advantage. The nece'lsary ingredif•nt of an offence under s. 161, Indian Penal Code, is the clause "as motive or reward for doing or forbearing to do any official aet or for showing or forbearing to show, in the eirnrcise of his official functions, favour or dis-favour to any person, or for rendering or attemp-ting to rendPr any service or dis-service to any per-son, with the Central or any Stat<> Government or Parliament or t,he Leirislature of any Statf', or with any public servant." but it need not be there in order to bring an offence under s. 5 of the Act homd to the accused. The offence under this se<>-tiou is, thus. wider and not narrower, than the offonce of bribery as d"fined ins. 161, In<lian PPnal Code. The wol'ds "in the discharge of his duty'' do not constitute an esscmfoil im:redient of the off~ncc. Tbe mistake in the judgment of this nourt in the af.,resai<l ruling in the 8trzte of Ajmer v. Shinji Lill (') h.'\s arisen from reading those words, which arc part m"rely of the nomenclature of the offence creat•"l by the Statute. whose ingr0dients are set out in sub-clauses (aHo (cl) that follow. aa rleseriptivc' of an essnntial an<l additional ingredient of each of t'·1e types of offc•nce in 1he fnur sub-clauses. Th it that is the source of the mistake is app11.rent from the errnneous way in which thP section has b,,f'n quot<>d at p. 744 of the Rupreme Court l{eport, in the pELragraph preccdin2 the para· graph quoted above. The ingredi, nts of the parti· oular offence in cl. (d} of s. Ci (l} of th" Aet ar<'; (1) th1t he should be public s•:rvant ; ( :!) that he sh mid use some corrupt or illegal means or oth<'.rwise abuse his position as public servant ; (~) that he should have thereby obtained valmible thinir 0r p~c·miary advant,a\(<;; anrl (·[) for himRe]f nr fnr any other p<erwn. In orcler to hring tho chH.rge [!Tl'Jj S11 ,_ S.C fl 739.

DhaneshU'llf' 1-.lar,,in Saxena v. The D,,Ihi Adm1ni~trafion Si:.ha C. J.

Dhant1hwar ;:..·arain Saxtna v. Tht Delhi .Admi11i4trotitm ~inha C. J.

home to an accused person unckr cl. ( I) aforesaid of the section, it is not necessar~· that the public servant in question, while misconducting himself should have done so in the discharge of his duty. It would bo anomalous to say that public scn·ant has misconducted himself in the· discharge of his duty. •·Duty" and "misconduct" go ill together. If person has misconducted himself as public aa.rvant, it would not ordinarily be in the discharge of his duty, but the revers" of it. That 'mis-conduct', which has been made criminal by s. 5 of the Act, does not contain the clement of discharge of his duty, by public servant, is also made clear by reference to the provisions of cl. (c) of s. 5 (l). It is well settled that if public servant dishonestly or fraudulently misappropriates propert~· entrust-ed to him, ho cannot be saicl to have been doing eo in the discharge of his officia.l duty (Yide the case of Hori Ram Singh Y. The Crou:n (I). An application for special leave to appeal from that decision was refused by tho Privv Council in Hori Ram Singh v. The king-Empe~or ('). This Court therefore, misread the section when it obscrycd that the offence consists in criminal miscomlnct in the discharge of official duty. The error lies in import· ing the description of the offence into the definition portion of it. It is n.ot necessary to constitute the offence under cl. (d) of the section that th11 public servant must do something in connection with his own duty and thereby obtain any valuable thing or pecuniary advantage. It is equally wrong to Ray that if public servant were to take money from third person, by corrupt or illegal means or other· wise abusing his official position, in order to corrupt some other public servant, without there being an~' question of his misconducting himself in the diA· charge of hie own duty, he has not committed an offence under s. 5(l)(d). It is also erroneous to hold that the essence of an offence under s. 5 (2), read with s. 5(1) (d), is that the public scn·ant (I) :1939] F.C.R. 1;9. (2) [1940] F.C.R. IS.

3 S.C.R. SUPREME COURT REPOR'.l'S

should do something in the discharge of his own duty and thereby obtain valuable thing or pecu-niary advantage.

These observations dispose of the present appeal and it must be held that there is no merit in the contentions raised in support of the appeal. As the only point raised in support of the appeal fails, it is accordingly dismissed.

Appeal dismissed.

ALL INDIA BANK EMPLOYEES' ASSOCIATION

NATIONAL INDUSTRIAL TRIBUNAL & OTHERS (And Connected Petitions)

(B. P. SINHA, c. J., s. K. DAS, A. K. SARKAR,

N. RAJAGOPALA AYYANGAR and

J. R. MunHOLKAR, JJ.)

Fundamental Right-Right to form association or union-Scope of-Stature protecting Banks from disclosure of information regarding secret reserves etc.-Oonstitutionality of-Bankinll Companies Act, 1949 (X of 1949), s. 34-A-Oonstitution of India, Arts. 14, 19(1)(c).

Section 34-A of the Banking Companies Act, I 949, intro-duced in 1960, provides that no banking company shall be compelled to produce or give inspection of its books of account or other document or furnish or disclose any statement or in-formation which the company claims to be of confidential 4 nature and the production etc., of which would involve di•-closure of information relating to any reserves not sho\crn as suc_h in its published balance sheet or any particulars not shown therein in respect of provisions made for bad and doubtful debts and other usual or necessary provisions. Sub-section (2) of '· 34-A provides that any authority, before whom the question as to whether any amount out of such reserves or provisions should be taken into account, may refer the question to the Reserve Bank and the Reserve Bank shall furni•h to the autho-rity certificate stating that the authority shall or shall not take -~ •-into account the amount specified therein. Sub-section (3) makes s. 34-A applicable to only such banking companies whose operations extend beyond one State. The Appellant contended

Dhane81twar Na rain Saxen• v. The Delhi ~4dminiatratio11 Sinha C. J.