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High Court of Bombay Deliberates Whether Manager of Cooperative Bank Is Public Servant under Prevention of Corruption Act; Employee of Cooperative Bank Under Liquidation Challenges Dismissal of Discharge Application. The Court Examines the Scope of 'Public Servant' Under Section 2(c) in Light of Arguments That Cooperative Bank Not Aided or Controlled by Government.

High Court: Bombay High Court Bench: BOMBAY
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2026-09-21 06:35:53
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Issue of Consideration

Whether the Applicant, who has been appointed as a Manager by the Liquidator of M/s. Indira Cooperative Bank Limited, is a 'Public Servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988.

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Law Points

  • Definition of public servant under Prevention of Corruption Act
  • 1988
  • Section 2(c) interpretation
  • Public duty element in liquidation proceedings
  • Distinction between nationalized banks and cooperative banks
  • Application of anti-corruption law to employees of non-government aided cooperative societies
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Case Details

2013 LawText (BOM) (05) 9

Criminal Revision Application No.353 of 2012

2013-05-06

S.C. Dharmadhikari, J.

2013 BHC-AS 10801

Uday Warunjikar, A.A. Mane

Shri. Sadashiv Krishna Sutar

State of Maharashtra, Through A.C.B., Mumbai

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Nature of Litigation

Criminal Revision Application against dismissal of discharge application by the Special Judge in a bribery case registered under the Prevention of Corruption Act, 1988.

Remedy Sought

The Applicant/Accused sought discharge from Special Case No. 45 of 2011 on the ground that he is not a Public Servant under the Prevention of Corruption Act, 1988.

Filing Reason

The Applicant was charged with demanding and accepting a bribe of Rs. 5,00,000/- and was caught in a trap accepting Rs. 50,000/-; the Applicant contends that as an employee of a cooperative bank in liquidation, he does not fall within the definition of Public Servant.

Previous Decisions

The Special Judge, Greater Bombay, by order dated 24th July 2012, dismissed the Applicant's discharge application, holding that the Applicant is a Public Servant under the PC Act.

Issues

Whether the Applicant, appointed as Manager by the Liquidator of M/s. Indira Cooperative Bank Limited, is a 'Public Servant' within the meaning of Section 2(c) of the Prevention of Corruption Act, 1988.

Submissions/Arguments

Applicant argued that the cooperative bank is not aided or controlled by the State and therefore employees are not public servants Prosecution argued that liquidation proceedings involve public duty to protect investors, making the Applicant a public servant under Section 2(c)(viii) of PC Act.

Judgment Excerpts

The question raised for my consideration is whether the Applicant, who has been appointed as a Manager by the Liquidator of M/s. Indira Cooperative Bank Limited, is a 'Public Servant' within the meaning of the said term, as defined in the Prevention of Corruption Act, 1988.

Procedural History

The Applicant was appointed as Manager by the Liquidator of M/s. Indira Cooperative Bank Limited, which was under liquidation. A complaint was filed with the Anti-Corruption Bureau alleging that the Applicant demanded a bribe of Rs.5,00,000/- from the Khot family for handing over leased premises. A trap was laid on 16th December, 2009, and Rs.50,000/- was accepted. A charge-sheet was filed in the Court of Special Judge, Greater Bombay, for offences under Sections 7, 13(1)(d), and 13(2) of the Prevention of Corruption Act, 1988. The Applicant filed an application for discharge on 6th March, 2012, contending he was not a public servant. The Special Judge dismissed the application on 24th July, 2012, holding the Applicant was a public servant. The Applicant then filed the present Criminal Revision Application No. 353 of 2012 before the High Court.

Acts & Sections

  • Prevention of Corruption Act, 1988: 2(c), 7, 13(1)(d), 13(2)
  • Maharashtra Cooperative Societies Act, 1960:
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Tags :
public servant prevention of corruption act cooperative bank liquidation discharge application anti-corruption bureau bribe demand trap section 2(c) maharashtra cooperative societies act

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