Supreme Court Allows State Appeal, Holds Trustee of Deemed University as Public Servant Under PC Act. Interpretation of 'University' in Section 2(c)(xi) of Prevention of Corruption Act, 1988 includes Deemed Universities.

  • 10
Judgement Image
Font size:
Print

Case Note & Summary

The Supreme Court allowed the appeal filed by the State of Gujarat against the judgment of the Gujarat High Court which had discharged the respondent, Mansukhbhai Kanjibhai Shah, from charges under the Prevention of Corruption Act, 1988. The respondent was a trustee of Sumandeep Charitable Trust, which established and sponsored Sumandeep Vidyapeeth, a deemed university. An FIR was lodged alleging that the respondent demanded a bribe of Rs. 20 lakhs from the complainant to allow her daughter to take the final MBBS examination. After investigation, a chargesheet was filed under Sections 7, 8, 10, 13(1)(b) and 13(2) of the PC Act read with Section 109 IPC. The trial court rejected the respondent's discharge application, but the High Court allowed it, holding that the respondent was not a public servant under Section 2(c)(xi) of the PC Act as the institution was a 'deemed to be university' and not a 'University' as defined. The Supreme Court reversed this, holding that the term 'University' in Section 2(c)(xi) includes deemed universities declared under the UGC Act. The court emphasized that the PC Act is a social welfare legislation aimed at eradicating corruption and must be interpreted purposively. It noted that the respondent, as a trustee of the trust that runs the deemed university, was a member of the governing body and thus fell within the definition of public servant. The court also held that the High Court erred in discharging the respondent at the stage of framing of charges, as there was sufficient material to proceed. The appeal was allowed, the High Court's order was set aside, and the trial court was directed to proceed with the case.

Headnote

A) Criminal Law - Prevention of Corruption Act - Public Servant - Definition - Section 2(c)(xi) PC Act - The term 'University' in Section 2(c)(xi) includes a 'Deemed to be University' declared under the UGC Act, 1956. The court held that the definition of public servant under the PC Act is broad and purposive, and a deemed university performs public functions of imparting education, thus its governing body members are covered. (Paras 18-30)

B) Criminal Procedure - Discharge - Section 227 CrPC - Standard for discharge is whether there is sufficient ground for proceeding against the accused. The High Court erred in discharging the respondent at the stage of framing of charges, as the allegations and material on record prima facie showed the respondent's involvement in corruption. (Paras 31-35)

C) Interpretation of Statutes - Penal Statutes - Strict Construction - While penal statutes are strictly construed, the Prevention of Corruption Act being a social welfare legislation aimed at curbing corruption must be interpreted purposively to advance its object. The court clarified that strict interpretation does not mean literal interpretation in all cases. (Paras 22-24)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a trustee of a trust that establishes and sponsors a 'Deemed to be University' is a 'public servant' under Section 2(c) of the Prevention of Corruption Act, 1988; and whether the accused can be discharged under Section 227 of CrPC.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed. Impugned judgment and order of the High Court dated 02.02.2018 is set aside. The order of the District and Sessions Court dated 29.11.2017 rejecting the discharge application is restored. The trial court is directed to proceed with the case in accordance with law.

Law Points

  • Strict interpretation of penal statutes
  • Purposive interpretation of welfare legislation
  • Definition of public servant under Section 2(c)(xi) PC Act includes deemed universities
  • Discharge under Section 227 CrPC requires no prima facie case
Subscribe to unlock Law Points Subscribe Now

Case Details

2020 LawText (SC) (4) 49

Criminal Appeal No. 989 of 2018

2020-04-27

N. V. Ramana

State of Gujarat

Mansukhbhai Kanjibhai Shah

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Criminal appeal against High Court order discharging accused in corruption case

Remedy Sought

State of Gujarat sought setting aside of High Court order discharging the respondent and restoration of trial court proceedings

Filing Reason

High Court discharged the respondent-accused from charges under PC Act on the ground that he was not a public servant

Previous Decisions

Trial court rejected discharge application; High Court allowed revision and discharged the accused

Issues

Whether a trustee of a trust that establishes and sponsors a 'Deemed to be University' is a 'public servant' under Section 2(c) of the PC Act? Whether the accused can be discharged under Section 227 of CrPC?

Submissions/Arguments

Appellant: PC Act is a social welfare legislation to be construed liberally; deemed universities perform public function; respondent as trustee is a public servant; no requirement of master-servant relationship; sanction obtained from Charity Commissioner is valid. Respondent: Criminal statute must be strictly construed; trustee is not a public servant; no allegation that respondent held any position in the university; High Court correctly discharged; sanction from Charity Commissioner invalid.

Ratio Decidendi

The term 'University' in Section 2(c)(xi) of the Prevention of Corruption Act, 1988 includes a 'Deemed to be University' declared under the UGC Act, 1956. A trustee of a trust that establishes and sponsors such a deemed university is a member of its governing body and thus a 'public servant' under the said provision. The PC Act, being a social welfare legislation aimed at curbing corruption, must be interpreted purposively to advance its object, and strict construction does not mean literal interpretation in all cases.

Judgment Excerpts

Corruption is the malignant manifestation of a malady menacing the morality of men. The PC Act is a social legislation intended to curb illegal activities of public servants and is designed to be construed so as to advance its objectives. The golden rule of interpretation for any penal legislation is to interpret the same strictly, unless any constitutional considerations are involved, and in cases of ambiguity, the benefit of the same should enure in favour of the accused. Strict interpretation does not necessarily mean literal interpretation in all cases, rather the interpretation should have regards to the genuine import of the words, taken in their usual sense.

Procedural History

FIR registered on 28.02.2017; chargesheet filed on 25.04.2017; respondent filed discharge application under Section 227 CrPC before District and Sessions Court, which was rejected on 29.11.2017; respondent filed Criminal Revision Application No. 1188 of 2017 before Gujarat High Court, which allowed the revision and discharged the respondent on 02.02.2018; State of Gujarat appealed to Supreme Court.

Acts & Sections

  • Prevention of Corruption Act, 1988: 2(c), 2(c)(xi), 7, 8, 10, 13(1)(b), 13(2)
  • Indian Penal Code, 1860: 109
  • Code of Criminal Procedure, 1973: 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows State Appeal, Holds Trustee of Deemed University as Public Servant Under PC Act. Interpretation of 'University' in Section 2(c)(xi) of Prevention of Corruption Act, 1988 includes Deemed Universities.
Related Judgement
Supreme Court Supreme Court Allows Appeal in Specific Performance Suit — Karta's Authority to Sell Joint Hindu Family Property Upheld. The Court held that a Karta can execute an agreement to sell joint family property without consent of other coparceners if supp...