M. NARAYANAN NAMBIAR versus STATE OF KERALA

STATE OF KERALA

{S. J. IMAM, K. SUJJBA RAO, N. lU.TAGOPALA AYYANGAR and J. R. MuoHOLKAR, JJ.)

Prevention of Corruption-Public aervanl-Abuae of official po8ition-Violalion of principle• of natural jualice-Prevention of Corruption Act, 1947 (2 of 1947), s. 5 (1) (d).

The appellant was convicted under s. 5 (l)(d) of the Pre-vention of Corruption Act, 1947, on the ground that by abusing his position as puhlk servant he obtained an assignment of Government land in the name of his brother-in-law without revealing the relationship and by undervaluing the trees 1tand· ing on the land. The High Court on appeal directed that statement showing the value of the timber calculated on the basis contended by the appellant may be submitted by either of the parties. The appellant did not file any statement but statement was filed on behalf of the prosecution. The High Court without giving ·an opportunity to the appellant to file objections to the correctness of the report and the reliability of the statement filed by the prosecution relied upon the statement to come to the conclusion that there had been an under-valua· tion by the appellant. It was contended thats. 5(l)(d) did not apply to the case and that before the High Court there had been failure of natural justice.

Htld, that penal statute must be construed strictly and only such thing< arc offences as come within not merely the letter but also the spirit of the statute.

Dyle. v. Elliot, (1872) L.R. 4 P.C. 184, referred to.

He/,d, further, that considering the object and scope of the Prcvtntion of Corr11ptio11 Act, 1947, the expression 'otherwise' ins. 5 (l)(d) is emp!oycd to bring i11 eve;t abll'!'. of official position by pubhc servant. But the JUX!aposttmn of the word 'otherwise' with the WC.,rds 'corrupt' or 'illegal means' and the fact that dishonesty is implicit in the word •abuse', indicate the necessity for dishonest intention as an ingredient of the offence and innocuous a~t~ wi/) nvt l>c covel'Cd by the .aid clau'f:,

2 S.C.R. SUPREME COURT REPOR'i's

Held, further, that the spirit of the Act which is in accord with the words used therein is to take in every form of corrup-tion, and the facts in the instant case if established constitute an offence under s. 5(l)(d).

Ram Kriahna v. State of Delhi, [1956] S.C.R. 182 and Dlianuhwar Narain Saxcna v. Dellii Adminiatration, [1962] 3 S.C.R. 259, referred to.

Held, also that before the High C'.ourt, there had been violation of the principles of natural justice and that the matter had to go back to the High Court for the appellant being given an opportunity to meet the material put in by the prosecution before the High Court.

CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 155 of 1961.

Appeal by special leave from the judgment and order dated April 10, 1961 of the Kerala High Court in Criminal Appeal No. 143 of 1960.

. .R. L. Iyengar and T. S. Venkataraman, for

the appellant.

V. Narayana Menon and Sardar Bahadur, for

the respondent.

1962. December 5. The Judgment of the Court was delivered by

SUBBA R.Ao, J .-This appeal by special leave is preferred against the judgment of the High Court of Kerala, confirming that of the Special Judge, Trivandrum, convicting the accused under s, 5(2), read withs. 5(1) (d) of the Prevention of Corruption Act, 1947, (2 of 1947), hereafter called the Act, and sentencing him to pay fine of Rs. l,OOOj-, or in default to undergo · simple imprisonment for four months.

The appellant. was Special Revenue Inspector

for land assignment at Manantoddy in Wynad Talu~ in the old Malabar district.

1961 M. Nu•fllWI ./taNMr v. Stale of K1ralo

Sub/la R .. ,J,

1962 M. Narayanan Nambi1r v. Slate of Kera/a Subba Rao, J.

726 SUPREME COUR.'I' REPORTS [1963] SUPP.

The case of the prosecution was that he, by

abusing his position as public servant, got 4 acres and 80 cents of Government land in R. S. No. 376/2 of Tavinhal village assigned in the name of his brother-in-law P. V. Gopinathan Nambiar without revealing the fact that he was his brother-in~law and by making false entries in the relevant records show· ing that the said land contained only 97 trees valued at Rs. 165/-, whereas the land had actually 150 trees worth Rs. 1450/·. The suppression of the fact that the assignee was his brother-in-law and the under-estimate of the value of the land were dishonestly made to circumvent the rules governing the assign· mcnt of lands to landless poor.

The Special Judge and on appeal the High

Court held that the appellant dishonestly under· estimated the extent and the value of the trees in the said land with view to help his brother-in-law and thereby committed an offence under s. 5(2), read with s. 1(4) ·of the Act. Hence the appeal.

Learned counsel for the appellant raised before

us 2 points: (1) Section 5(l)(d) of the Act does not apply to case of wrongful loss caused to Government by public servant who by deceit induced it to part with its property: (2) The High Court acted errone· ousl y in relying upon report dated April 5, 1961, made by the District Forest Officer, Kozhikode, filed by the Public Prosecutor after the appeal was reserv· ed for judgment without giving an opportunity to the appellant to file objections thereto or contesting the correctness of the valuation given therein.

As the first contention turns upon the provisions first contention turns upon the provisions contention turns upon the provisions

· As the first contention turns upon the provisions first contention turns upon the provisions contention turns upon the provisions of s. 5( I), it will be convenient to read the same :-

5. (I) public servant is said to commit the offence of criminal misconduct in the discharge of hisduty-

(a) if he habitually accepts or obtains or

l! S.C.R.

agrees to accept or attempts to obtain from any person for himself or for any other person, any gratification (other than legal remuneration) as motive or reward such as is mentioned in s. 161 of the Indian Penal Code, or

(b) if he habitually accepts or obtains or

agrees to accept or attempts to obtain for him-self or for any other person, any valuable thing without consideration or for considera-tion which he knows to be inadequate, from any person whom he knows to have been or to be, or to be likely to be concerned in any pro-ceeding or business transacted or about to be transacted by him, or having any connection with the official functions of himself or of any public servant to whom he is subordinate, or from any person whom he knows to be interest-ed in or related to the person so concerned, or

(c) if he dishonestly or fraudulently mis-

appropriates or otherwise converts for his own use any property entrusted to him or under his control as public servant or allows any other person so to do, or

( 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 advan-tage.

We are concerned in this case with 5(l)(d) of the Act.

Under that clause if public servant by corrupt or illegal means or by otherwise abusing his position as public servant obtains for himself or for any other person valuable thing or pecuniary advantage, .he will be guilty of criminal mis-conduct, punishable under s. 5(2) of the Act with imprisonment for term which shall not be less than one year and which may extend to 7 years, and shall also be liable to fine.

1961 M. Narayanan Namliar v. State oj· n·eral~ Subba Rao, J.

1962 M.Ntrqyanan Natlf/Jial •• Stule of Kerala S•bbaRao, J.

The learned counsel contends that clause (d) being penal provision, shall be strictly construed; and that if so construed, it would only take in cases of direct benefit obtained by public servant for himself or for any other person from third party in the manntr described therein and does not cover case of wrongful loss caused to the Government by abuse of his power.

This conclusion, the argument proceeds, flows from three circumstances: ( 1) The benefit obtained in clause (b) must be similar to that provided for in clauses (a) & (b) i. e., benefit obtained from third party; ( 2) The case of wrongful loss to the Government is provided by clause (c) and any oth1:r loss which does not fall within that clause is outside the scope of the section; (3) Though the word 'obtains' has wide meaning in the setting in which it appears in clause (d) but in view of the fact that the same word is used in limited sense in clauses (a) & (b), it should he given limited meaning, namely, "gets benefit from third party". It takes colour from the same word used in clauses (a) & (b). He finally contends that the construction he is seeking to put forward for our acceptance fits in the general scope and scheme of the Act and that the Legislature intended to leave the losses caused to the Government by the deception caused by its public servant to be dealt with in accordance with the provisions of the Indian Penal Code or other appropriate laws. At the outset we may say that the argument is. rather subtle but on deeper scrutiny of the provisions and the clear phraseology used therein, we find that the contention is not sound.

Before we construe the relevant provisions oi the section in the light of the criticism levelled by the learned counsel, it will be useful and convenient to know briefly the scope and the object of the Act. The long title of the Act reads:

2 S.C;R.

'An Act for the more effe tive prevention of bribery and corruption'.

The preamble indicates that the Act was passed as it was expedient to make more effective provision for the prevention of bribery ·and corruption. The long title as well as the preamble indicate that the Act was passed to put down the said social evil i. e. bribery and corruption by public servant. Bribery is form of corruption. The fact that in addition to the word "bribery" the word "corruption" is used shows that the legislation was intended to combat also other evils in addition to bribery. The existing Jaw i.e. Penal Code was found insufficient to eradi · cate or even to control the growin~ evil of bribery and corruption corroding the pubhc service of our country. The provisions broadly include the existing offences under ss. 161 & 165 of the Indian Penal Code committed by public servants and enact new rule of presumptive . evidence against the accused. The Act also creates new offence of' criminal mis· conduct by public servants though to some extent it overlaps on the pre-existing offences and enacts rebuttable presumption contrary to the well-known principles of Crimmal Jurisprudence. It also . aims to protect honest public servants from harassment by prescribing that the investigatfon against.them could be made only by pol.ice officials of particular status and by making die sanction of the Government or other appropriate officer pre-condition for their prosecution. As it is socially useful measure conceived in public interest, it should be liberally construed so as to bring about the desired object. i.e. to prevent corruption among public servants and to prevent harassment of the honest among them.

decision of.the Judicial Committee in Dyke

v. Elliot, (1) cited by the learned counsel as an. aid for constru~tion neatly states the principle and there-fore may be extracted :-Lord Justice James speaking (I) (1172) L. R. P. C. UH, 191,

IHI M. NaraJRMll Nmnbiar ... Stah ef K1rala Subia Roa, J.

1962 M.Naropon Na111biar v. Stale [1]!/ J,·erala Subba Rao, J.

1:10 SUPREME COURT REPORTS [1963] SUPP.

for the Board observes at p. 191 :-

"No doubt all penal Statutes arc to be construed strictly, that is to say, the Court must see that the thing charged as an offence is within the plain meaning of the words used, and must not strain the words on any notion that there has been slip, that there has been casus omi8sus, that the thing is so clearly within the mischief that it must have been intended to be included and would have been included if thought of. On the other hand, the person. charged has right to say that the thing charged, although within the words, is not within the spirit ·of the enactment. But where the thing is brought within the words and within the spirit, there penal enactment to be construed, like any other instrument, according to the fair common-sense meaning of the language used, and the Court is not to find or make any doubt or ambiguity in the language of penal statute, where such doubt or ambiguity would clearly not be found or mad!' in the same language in any other instrument."In our view this passage, if we may say so, restates the rule of construction of penal provision from correct perspective. As we will presently show the case of the appellant on the facts found clearly falls not only within the words of clause (d) but also within its spirit. Indeed if his argument be accept· ed not only we will be doing violence to the language but also to the spirit of the enactment. First taking the phraseology used in the clause, the case of public servant causing wrongful loss to the Govern· ment be benefiting third party squarely falls within it. Let us look at the clause "by otherwise abusing the position of public servant", for the argument mainly turns upon the said clause. The phraseology is very comprehensive. It covers acts done "other· wise" than by corrupt or illegal means by an officer

2 s.c.R.

abusing his position. The gist of the offence under this clause is that public officer abusing his position as public servant obtains for himself or for any other person any valuable thing or pecuniary ad-vantage. "Abuse" means lilis-use i.e. using his position for something for which it is not intended. That abuse may be by corrupt or illegal means or otherwise than those means. The word 'otherwise' has wide connotation and if no limitation is placed on it, the words 'corrupt', 'illegal', and 'otherwise' men-tioned in the clause become surplusage, for on that construction every abuse of position is gathered by the clause. So some limitation will have to be put on that word and that limitation is that it takes colour from the preceding words along with which it appears in the clause, that is to say something savour-ing of dishonest act on his part. The contention of the learned counsel that if the clause is widely construed even recommendation made by public servant for securing job for another may come within the clause and that could not have been the intention of the Legislature. But in our view such innocuous acts will not be covered by the said clause. The juxtaposition of the word 'otherwise' with the words "corrupt or illegal means" and the dishonesty implicit in the word "abuse" indicate the necessity for dis-honest intention on his part to bring him within the meaning of the clause. Whether he abused hill position or not depends upon the facts of each case; nor can the word 'obtains' be sought in aid to limit the express words of the section. 'Obtain' means acquire or get. If corrupt officer by the said means obtains valuable thing or pecuniary advantage, he can certainly be said to obtain the said thing or pecuniary advantage; but it is said that in clauses (a) & (c) the same word is med and in the context of those clauses it can only mean getting from third party other than the Govern-ment and therefore the same meaning must be given to the said word in clause (d). 'Obtains' in clause

1961 Al. Narayanan J{ambiar •• State of Kerala Subha RM, J.

1962 M. NDTayanan Nombiar v. State of Kerala SubOa Uao, J.

'732 SUPREME COURT REPORTS (1963] SUPP.

(a) & (b) in the context of those provisions may mean taking bribe from third party, but there is no reason why the same meaning shall be given to that word used in different context when that word is comprehensive enough to fit in the scheme of that provision. Nor can we agree that as dishonest misappropriation has . been provided for in clause ( c), the other cases of wrongful loss caused to the Government by the deceit practised by public offi-cer should fall outside the section. There is no rea-r.on why when comprehensive statute was passed to prevent corruption, this particular category of corrup-tion should have been excluded therefrom because the consequences of such acts are equally harmful to the public as acts of bribery. On plain reading of the express words used in the clause, we have no doubt that every benefit obtained by public servant for himself, or for any other person, by abusing his position as public servant falls within the mischief of the said clause.

Coming to the spirit of the provision, there can-not be two views. As we have expressed earlier, the object of the Act was to make more effective provision for the prevention of bribery and corrup-tion. Bribery means the conferring of benefit by one upon another, in cash or in kind, to procure an illegal or dishonest action iu favour of the giver. Corruption includes bribery but has wider conno-tation. It may take in the use of all kind of corrupt practices. The Act was brought in to purify public administration. When the Legislature used cmnprc-hensive terminology in ~. 5( l )(d) to achieve the said purpose, it would be appropriate not to limit the content by r:onstruction when particularly the sipirit of the statute is in accord with the words u~cd thcrei11,

Two uecisions of this court cited at the Bar

indicate that wide construction was placed by this Court on the provisions of s. 5(1 )( d) of the Act.

2S.C.R. SUPREME COURT REPORTS

Krishrm v. The Strite of Delhi, (')

In Rmn Krishrm v. The Strite of Delhi, (') the appellants were prosecuted for offering brihr to Railway Officer for hu~hing up the case against them. In that context, s. :\( l)(d) was construed hy this court. At p. 188 Chandrasekhara Ayyar, J., speaking for the court made the following observa-tion:

"Apart from 'corrupt and illegal means', we have also the words 'or by otherwise abusing his position as public servant'. If man obtains pecuniary advantage by the abuse of his position, he will be guilty under sub-clause ( d). Sections Hil, 162 & Hl:l refer to motive or reward for doing <lr forbearing to do something, showing favour or disfavour to any person, or for inducing such conduct by the exercise of personal influence. It is not neces-sary for an offence under clause (d) to prove all this. It is enough if by abusing his position as public servant man obtains for himself any pecuniary advantage, entirely irrespective of motive or reward for showing favour or dis-favour."

This Court again in DhaMshwar Narain Saxena v. The Delhi Atlministration. (') pointed the wide net cast by this provision in order to put down corruption. There the appellant was an Upper Division Clerk in the office of the Chief Commissioner of Delhi. He knew one Ram Nara who was fireman serving in Delhi Fire Brigade. The latter sought the assis-tance of the appellant who had nothing to do with the issuing of licences of fire-arms which was done by the office of the Deputy Commissioner, Delhi. The appellant took bribe in order to get the licence for him. It was argued that a'! it was not the duty of the appellant to issue licences or do something in connection therewith, he did not commit any offence within the meaning of s. 5 (l)(d) of the Act. This fl) l19'6J 8.C.ll. 182, ~2) ~1962) S 8.0.R, ~$9.

Jlf. J{.Jrd')J1mm1 .Yambinr v. S/11/e oj· Ktr11l•

M . .1YaraJanan .J{ambiar v. Stat1 of Keralr! Subha Rao, J.

Court rejected his contention. Sinha, C.J., speaking for the Court observed at p. l!l8 : "The legislature advisedly widened the scope of the crime by giving very wide defimtion in s.5 with view to punish those who, holding public office and taking advantage of their position obtain any valuable thing or pecuniary advantage." .

The observations made by this Court in the

above two cases though made in different context show the comprehensive nature of the said provision. We therefore hold that the accused in order to assign the land to his brother-in-law underestimated the value of the said land to conform with the rules and thereby abused his position as public servant and obtained for him valuable thing or pecuniary advantage within the meaning of the said clause and therefore is guilty of an offence under sub·s. (2) thereof.

It is next contended that the said finding was

vitiated by the fact that the High Court in arriving at the finding relied upon valuation list prepared by the District Forest Officer and filed into court without giving an opportunity to the appellant to canvass its correctness. The admitted facts relevant to the argument may be stated. The arguments in the appeal were concluded on March 22, l!J6 l.. 0 n April 6, 1961, the Public Prosecutor filed Valua-tion list purporting to have been made by the District Forest Officer, Kozhikode. No notice of this list was given to the appellant and therefore he did not-fiie any objections. On April 10, 1961, the High Court delivered the judgment basing its finding on the said Valuation list and rejecting the appeal. Before the Special Leave was granted by this court, report was called for from the High Court with regard to the said facts. The report sent by the Registrar is as follows :-

"The learned Counsel for the appellant conteµded before the High Court that the

2 S.C.R. SUPREME COURT REPORTS

method of calculation adopted by P.W. 15 in assessing the value of the timber was not co;rect and that the following method should have been adopted viz., 'in the case of timber trees to calculate the value of each tree at the rate given in the Madras Forest Manual for that particular species, and for fuel trees, to calculate the value at the official rate for cart load fixed by the Government.' Thereupon the Court . directed in open court that state-nent showing the value of the timber calculat· =d by the above method may be submitted by either of the parties. No statement was filed by the appellant's counsel and on 6-4-1961 the State filed statement. Since the statement was meant only to ass:st the Court in calculating the correct value of the timber along the lines suggested by the appe-llant's counsel the matter was not posted for further argument.''

The appellant denied in his affidavit filed before us that any direction was given by the court before the judgment was reserved but the Public Prosecutor filed an affidavit to the effect that such statement was made in the open court. We have no reason to reject the report of the Registrar and the affidavit filed by the Public Prosecutor. Even so, the fact remains that the learned Judge acted upon docu· ment filed by the respondent without giving an opportunity to the appellant to file objections or to contest its reliability. We think the principles of natural justice require that no court shall give finding whether on fact or law and particularly on facts without giving an opportunity to all the con-testing parties. As that principle has been violated in this case, we have no option but to set aside the finding of the learned Judge on the question of the valuat~on of the trees on the plot assigned to the appel1~1tt's brotl)er-iIJ·l~w. We, therefore, set aside

1962 M. NaT0.)'11411 .Namhiar v. Stai. of 1' 11•la Suiba Roo, J,

1962 Al. J\'ftr"J'tlnan ,f\·(1111bf11r v. Statr '!l J(aalrr Subba Ran, J.

1962 Dernnbtr, G.

this finding and request the High f'..ourt to submit revised finding' on the said question within two months from tbe receipt of the record. The res-pondent may file further statement if I so chooses to explain or even to correct the valuation list al-ready filed by it. Thereafter an opportunity will be given tq the appellant to file his objections. The objections filed by the appellant in this Court may be also considered by the High Court. The High Court will s,1bmit the finding. on the evidence already on record including the said objections and statements. The parties may file ob-jections to the finding within two weeks from the date the said finding is received. The appeal will be posted a.~ early as possible after obj~cti, 'llS are filed or after the expiry of the time given for filing the objections.

011se rem-itted for suhrnission of fresl1 finding.

THE INDIAN OXYGEN LIMITED

WORKMEN A~D OTHERS

(B. P. SINHA, c. J., P. B. GAJENDRAGADKAR,

K. N. WANCHOO, K. C. DAS GuPTA and J. C. SHAH, JJ.)

In<!ustrial Dispute-II' age scales-0/assijical ion.

The appellant contended that though the wage scales were fixed in 1949, as in 1957, the question of revi•ion of wage scales had hc•n brought hefore another Tribunal which rcfuse<l 1evision except in the case of Maz<loors I and 2, revision ought not to have been allowed and that. the Tribunal had compared the wage scales of the appellant with those with which they were not comparable and further that the Tribum1)