Supreme Court Dismisses State's Appeal Against Acquittal of Central Excise Officers in Bribery Case. Demand and Acceptance of Bribe Not Proved Beyond Reasonable Doubt Under Prevention of Corruption Act, 1988.

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Case Note & Summary

The present appeals arise from an order dated 27.05.2019 passed by the High Court of Judicature at Allahabad, Lucknow Bench, which allowed the appeals of the accused-respondents and acquitted them of charges under the Prevention of Corruption Act, 1988. The State of Uttar Pradesh, aggrieved by the acquittal, preferred the present appeals before the Supreme Court. The factual matrix involves a complaint by Kuldeep Tiwari, a Retainer Consultant, alleging that on 05.01.1995, R.K. Srivastava, Superintendent of Central Excise, along with A.K. Gaba and Alok Gupta, Inspectors of Central Excise, visited M/s Prime Products and M/s Amoli Ceraplast Ltd., seized records without acknowledgment, and later demanded Rs.80,000 as illegal gratification for returning the documents. On 14.01.1995, a CBI trap was laid, and Rs.60,000 was recovered from R.K. Srivastava's bedroom and Rs.20,000 from the jacket pocket of P.K. Srivastava. The trial court convicted the accused, but the High Court reversed the conviction. The Supreme Court examined the evidence, noting that the complainant (PW-1) and the shadow witness (PW-2) turned hostile and gave contradictory statements. The court found that the prosecution failed to prove the demand and acceptance of bribe beyond reasonable doubt. The Supreme Court held that the High Court's findings were not perverse and were based on a proper appreciation of evidence. Consequently, the appeals were dismissed, and the acquittal was upheld.

Headnote

A) Criminal Law - Bribery - Demand and Acceptance - Prevention of Corruption Act, 1988, Sections 7, 13(1)(d) read with 13(2) - The prosecution failed to prove the demand and acceptance of bribe beyond reasonable doubt as the complainant and shadow witness turned hostile and their testimony was unreliable - Held that the presumption under Section 20 of the Act cannot be invoked without proof of demand and acceptance (Paras 1-10).

B) Evidence Law - Hostile Witness - Credibility - Indian Evidence Act, 1872, Section 154 - The complainant and shadow witness were declared hostile and their evidence was found to be contradictory and untrustworthy - Held that conviction cannot be based on such unreliable testimony (Paras 5-8).

C) Criminal Procedure - Appeal against Acquittal - Scope - Code of Criminal Procedure, 1973, Section 378 - The Supreme Court declined to interfere with the High Court's order of acquittal as the findings were not perverse and were based on proper appreciation of evidence - Held that the appellate court's interference is limited when the view taken by the High Court is plausible (Paras 9-10).

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Issue of Consideration

Whether the High Court was justified in acquitting the accused-respondents by reversing the conviction recorded by the trial court under the Prevention of Corruption Act, 1988.

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Final Decision

The Supreme Court dismissed the appeals and upheld the High Court's order of acquittal, finding no perversity in the High Court's appreciation of evidence.

Law Points

  • Presumption under Section 20 of Prevention of Corruption Act
  • 1988 arises only when demand and acceptance are proved
  • Standard of proof in criminal cases is beyond reasonable doubt
  • Appellate court's interference with acquittal is limited unless perverse
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Case Details

2026 INSC 568

Criminal Appeal No(s). 3383-3385 of 2025

2026-01-01

Prasanna B. Varale

2026 INSC 568

State of Uttar Pradesh

A.K. Gaba etc.

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Nature of Litigation

Criminal appeal against acquittal in a bribery case under the Prevention of Corruption Act, 1988.

Remedy Sought

The State of Uttar Pradesh sought reversal of the High Court's order acquitting the accused-respondents of charges under the Prevention of Corruption Act, 1988.

Filing Reason

The State was aggrieved by the High Court's order dated 27.05.2019 which acquitted the accused-respondents of charges of demanding and accepting illegal gratification.

Previous Decisions

The trial court convicted the accused-respondents under the Prevention of Corruption Act, 1988. The High Court of Judicature at Allahabad, Lucknow Bench, by order dated 27.05.2019, allowed the appeals and acquitted the accused.

Issues

Whether the High Court was justified in acquitting the accused-respondents by reversing the conviction recorded by the trial court under the Prevention of Corruption Act, 1988. Whether the prosecution proved the demand and acceptance of bribe beyond reasonable doubt.

Submissions/Arguments

The State argued that the High Court erred in acquitting the accused despite sufficient evidence of demand and acceptance of bribe. The respondents argued that the prosecution witnesses turned hostile and the evidence was unreliable, justifying the acquittal.

Ratio Decidendi

The presumption under Section 20 of the Prevention of Corruption Act, 1988 arises only when demand and acceptance are proved. In the absence of reliable evidence proving demand and acceptance, the accused cannot be convicted. The appellate court's interference with an acquittal is limited unless the findings are perverse.

Judgment Excerpts

The present appeal(s) arise from the impugned order dated 27.05.2019 passed by the High Court of Judicature at Allahabad, Lucknow Bench in Criminal Appeal No(s). 967, 964 and 963 of 2014, wherein the High Court allowed all the three appeals of the accused respondents and acquitted the respondents of the charges levelled against them. The complainant and shadow witness turned hostile and their testimony was found to be contradictory and untrustworthy.

Procedural History

The trial court convicted the accused-respondents under the Prevention of Corruption Act, 1988. The accused appealed to the High Court of Judicature at Allahabad, Lucknow Bench, which allowed the appeals and acquitted them on 27.05.2019. The State of Uttar Pradesh then appealed to the Supreme Court, which dismissed the appeals on the date of judgment.

Acts & Sections

  • Prevention of Corruption Act, 1988: 7, 13(1)(d), 13(2), 20
  • Indian Evidence Act, 1872: 154
  • Code of Criminal Procedure, 1973: 378
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Supreme Court Supreme Court Dismisses State's Appeal Against Acquittal of Central Excise Officers in Bribery Case. Demand and Acceptance of Bribe Not Proved Beyond Reasonable Doubt Under Prevention of Corruption Act, 1988.
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