Saturday, 27 September 2014

When explanation given by accused in statement U/S 313 of crpc should not be rejected ?


  On the contrary, law relied on behalf of the appellant in the 
case of  Punjabrao ..vs.. State of Maharashtra, reported in  (2002)10 
SCC 371 can be applied in the instant case wherein it is observed that if 

the explanation offered by the accused under Section 313 of Code of 
Criminal Procedure  is found to be reasonable, then it cannot be thrown 
away merely on the ground that  he did not offer the said explanation at 
the time when the amount was seized.     For the reasons stated herein 
above, as well as on facts, explanation offered by appellant involved in 
this appeal appears to be probable, reasonable and acceptable.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
CRIMINAL APPEAL NO.333 OF 2002.
Balkrishna s/o Lakshmi hand Didwani,

                          : VERSUS :
RESPONDENT:         The State of Maharashtra
through A.C.B.Akola.
              
                       
                                 
  CORAM:     P.N.DESHMUKH, J.
   DATED:     23rd JUNE, 2014.
Citation;2014 ALLMR(cri)3182 Bom

By this appeal, the appellant takes exception to the judgment 
and   order   passed   by   the   learned   Additional   Sessions   Judge,   Akola, 
dated   1st  of   June,   2002   in   Special   Case   No.6   of   1992   convicting 
appellant for the offences punishable under Sections 7, 13(1)(d) read 
with   Section   13(2)   of   the   Prevention   of   Corruption   Act,   1988   and 
sentencing to suffer rigorous imprisonment for one year for the offence 

punishable under Section 7 of the Prevention of Corruption Act and to 
pay a fine of Rs.2000/­, in default to suffer R.I. for four months and for 
the   offence   punishable   under   Section   13(1)(d)   r/w   13(2)   of   the 
Prevention of Corruption Act, appellant is sentenced to suffer R.I. for 
Prosecution case can briefly be stated as follows ­
2.

suffer R.I. for four months.
one year and six months and to pay a fine of Rs.2000/­ in default to 
At   the   time   of   incident,   appellant   was   working   as   Upper 
Division Clerk in the office of Income Tax, Ward II, Akola and as such 
was required to process the income tax return.   PW 1, the complainant, 
and his brother PW 3 Manoj were having their ready made garments 
shop   styled   as   “Metro   Mens   Collection”   and   “Metro   Dressers’   both 
situated at Akola.   They were filing income tax returns through PW 4 
Sakharam Kulkarni, their Advocate.  The income tax returns for the year 
1987­89   was   filed   on   29/11/1989   and   the   required   income   tax   was 
paid.   
On 1/6/1990, PW 4 Advocate Sakharam Kulkarni informed 
complainant that appellant has called him on 4/6/1990.   Accordingly, 
complainant met appellant who informed the complainant that his case 
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would go for special scrutiny and in that case complainant may face 
trouble by paying more income tax and thus said that if he wanted to 
avoid   the   same,   he   should   pay   appellant   Rs.7000/­   and   appellant 
would give him assessment order and refund voucher.  The amount so 
demanded was negotiated to Rs.4000/­ and was agreed to be paid on 
5/6/1990.   On  this day, appellant visited the shop of complainant and 
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gave him assessment order dated 23/5/1990 and refund voucher dated 
31/5/1990 and had obtained acknowledgment (Exh.60).   At the same 
time,   appellant   demanded   Rs.4000/­   as   agreed,   upon   which   the 
complainant informed that he would arrange for same by evening and 
informed the appellant to come to his ‘Metro Dresses’ shop by 6 to 7 
p.m.
3.
According to prosecution, as complainant was not willing to 
pay the bribe amount, he lodged report with Anti­Corruption Bureau 
(ACB), Akola vide Exh.61.   Accordingly, the authorities of A.C.B., Akola 
arranged for two panch witnesses being PW 2 Sudhakar Khot and one 
Laxman   Bhagat   and   then   gave   demonstration   to   complainant   and 
panchas of effect of phenolphthalein powder with solution of Sodium 
Carbonate,   by   which   they   learnt   that   when   said   powder   comes   in 
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contact with above stated solution, it changes its colour to violate.   On 
applying   Phenolphthalein   powder   to   the   bribe   amount   of   Rs.4000/­, 
necessary instructions were given to complainant as well as to PW 2 
Sudhakar   to   accompany   the   complainant   and   to   Laxman   Bhagat   to 
accompany the raiding team and trap came to be laid at the shop of 
4.
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to be prepared (Exh.64). 
complainant.  Before proceeding to the spot, pre­trap panchanama came 
According   to   the   prosecution,   on   reaching   to   his   shop, 
complainant Mukesh sat on the counter while PW 2 Sudhakar was in 
shop   at a  distance  of  2  to  3 ft.  from  the   complainant,  watching  the 
clothes.     About half an hour thereafter, the appellant arrived in the 
shop and told complainant that his work was over and he should give 
him Rs.4000/­, as agreed, saying that he would manage other things 
and the complainant should not worry.   Upon which, complainant took 
out Rs.4000/­ from his right side pant pocket by his right hand and gave 
it to the appellant which he accepted and on counting by both of his 
hands, kept in his left side shirt pocket.     On complainant’s giving the 
proposed   signal,   raiding   team   officials   arrived   in   the   shop   and 
apprehended the appellant.     PW 6 Dashrat Gawande, P.I., dipped the 
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fingers of appellant in the solution of sodium Carbonate which turned 
into violate colour.   The amount of Rs.4000/­ was recovered from the 
shirt pocket of appellant.   Similarly, when complainant’s fingers were 
treated with sodium carbonate solution, the solution turned in to violate 
PW 6 Gawande, P.I., forwarded report to the City Kotwali 
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5.
colour.   Panchanama of these facts was done vide Exh.164.  
Police Station for registering an offence.   The FIR is at Exh.166. During 
the course of investigation, he deposited the Muddemal in City Kotwali 
Police Station, Akola and forwarded bottle containing sodium carbonate 
liquid   for   analysis.     He   then   recorded   statements   of   witnesses   and 
forwarded   the   same   to   Central   Bureau   of   Investigation,   Mumbai,   as 
appellant was Central Government employee.     PW 7 Raman Rajaram 
Tyagi,   Police   Inspector,   C.B.I.   Anti   Corruption   Bombay   registered   an 
offence vide Crime No.47 of 1990.   On finding that prima facie case 
exists against the appellant, he forwarded the investigation papers to 
PW   8   Shivakant   Jaha,   Commissioner   of   Income   Tax   for   according 
sanction to prosecute the appellant which was accorded as per Exh.180. 
On completion of investigation, charge­sheet came to be filed before the 
Special Court.

Charge   was   framed   against   appellant   for   the   offences 
6.
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punishable under Section 7, 13(1)(d) read with 13(2) of the Prevention 
of Corruption Act to which he  pleaded not guilty and claimed to be 
tried.       The   defence   of   appellant   is   that   he   had   never   met   the 
complainant nor had demanded any bribe. It is his specific case that his 

father was running a tailoring shop styled as ‘Gidwani Tailor’ at Akola 
where  complainant used to  send ready made  clothes  of  his  shop  for 
alteration purpose against which amount of Rs.7000/­ was to be paid by 
the complainant and after the death of appellant’s father appellant was 
demanding said amount from the complainant who was avoiding to pay 
the   same   in   spite   of   appellant’s   visiting   him   on   5   to   6   occasions. 
According   to   the   appellant,   due   to   intervention   of   PW   4   Advocate 
Kulkarni   complainant   agreed   to   make   payment   of   Rs.4000/­   against 
Rs.7000/­ and as such on the day of incident when he visited the shop 
of   complainant   and   accepted   the   said   amount,   he   was   falsely 
apprehended.  
7.
On considering the evidence, learned Trial Court convicted 
appellant as aforesaid.   Hence, this appeal.

Heard   Smt.S.P.Kulkarni,   learned   counsel   for   the   appellant 
8.

and Mrs.T.H.Udeshi, learned APP for the State.   To effectively evaluate 
the  submissions  advanced by learned Advocates  for  both  the  sides, I 
PW 1 complainant, Mukesh has stated that he along with his 

9.
have scrutinized the evidence with their assistance.
brother PW 3 Manoj are looking after the affairs of two ready made 
garments shops at Akola of which income tax work is looked after by 
PW 4 Advocate Kulkarni.     On 1/6/1990, Advocate Kulkarni informed 
him that appellant had called him to meet.   Accordingly, on 4/6/1990 
he met appellant and appellant told that if his income tax return is sent 
for   scrutiny,   he   may   face   trouble   and   informed   that   if   he   pays   him 
Rs.7000/­,   he   will   issue   the   necessary   orders.       According   to 
complainant, said amount was, however, negotiated to Rs.4000/­ and 
agreed to be paid on 5/6/1990.   In pursuance to the talks as above, it is 
further stated by the complainant that on 5/6/1990 appellant visited to 
his shop at 11 a.m. and gave the assessment order and refund voucher 
and   had   obtained   his   acknowledgment   vide   Exh.60   and   thereafter 
demanded Rs.4000/­ as agreed, upon which complainant informed that 

he had not arranged for the same and would pay on the same day by 5 
to   6   p.m.   at   his   ‘Metro   Collection’   shop,   upon   which   the   appellant 
agreed to come to collect the same.  Complainant further stated that he 
then visited the office of A.C.B.Akola and lodged his report at Exh.61. 
Complainant thereafter further stated about the demonstration given to 
him and panchas about effect of Phenolphthalein powder and sodium 

carbonate solution  and necessary instructions, etc.     On the  point of 
incident, he has further stated that he along with PW 2 Sudhakar, the 
panch, were present in the shop when appellant arrived within half an 
hour   and   informed   the   complainant   that   the   work   was   over   and   he 
should pay him  Rs.4000/­ as  agreed.   Appellant further  said that he 
would manage by saying, ‘Saltaloonga’ and the complainant should not 
worry, upon which the complainant paid Rs.4000/­ which he counted 
and kept in his shirt’s pocket.   Immediately thereafter, members of the 
raiding team arrived and apprehended the appellant.
 10.
It has come in his cross­examination that both the shops of 
complainant   are   situated   nearby   and   the   income   tax   returns   of   his 
business are filed by PW 4 Advocate Kulkarni since last ten years.   He 
has admitted that the income tax return for the period 1987­89 was 

filed on 29/11/1989 of which he had not received any notice and was 
not   aware   whether   any   notice   in   this   respect   was   received   by   his 
Advocate.     Complainant   admitted   that   after   he   was   informed   by 
Advocate Kulkarni to meet the appellant, he did not make any enquiry 
as to for what purpose he was called and has admitted that he learnt 
about the decision of income tax returns when he was supplied with the 

assessment   order   dated   23/5/1990,   on   5/6/1990.     Complainant   has 
thus   admitted   that   he   was   aware   that   his   income   tax   return   was 
accepted   on   that   day   i.e.   on   23/5/1990   and   further   admitted   that 
refund order was also issued dated 31/5/1990.   In view of admission of 
complainant   as   stated   above,   there   appears   much   force   when   it   is 
submitted on behalf  of the appellant that no work was left with the 
appellant   or   with   the   office   of   income   tax,   as   income   tax   return   of 
complainant   was   filed   on   29/11/1989,   the   assessment   order   was 
already   issued   on   23/5/1990   while   the   refund   order   was   issued   on 
31/5/1990.     In   that   view   of   the   matter,   I   find   substance   when   it   is 
submitted   on   behalf   of   the   appellant   that   he   had   never   met   the 
complainant on 4/6/1990 and demanded bribe of Rs.4000/­ saying that 
if   complainant’s   income   tax   return   comes   into   scrutiny,   he   may   face 
trouble and may be required to pay additional income tax.  
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Moreovr, evidence of complainant on the material aspect of 
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demand and acceptance of bribe money involved in this appeal also do 
not find convincing, as he has admitted that though he had mentioned 
in his statement recorded by police that appellant said that his work 
was over and that he should pay Rs.4000/­ as agreed, same do not find 
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place in his statement for which he is unable to give any reason.   Above 
omission on the part of complainant thus creates reasonable doubt in 
his evidence that appellant on arriving in his shop on 5/6/1990 had 
said to complainant that his work was over and demanded Rs.4000/­ as 
agreed.       The   case   of   prosecution   also   creates   reasonable   doubt 
establishing   involvement   of   appellant   in   this   case   as,   admittedly, 
complainant   had   received   the   copy   of   assessment   order   and   refund 
voucher   on   5/6/1990   itself   at   12.15   noon   from   the   appellant. 
According   to   the   complainant,   thereafter   at   about   1   p.m.   he   visited 
office of A.C.B.Akola and lodged his report where he was present till 6 
p.m.   where   panchanama   was   drawn   and   trap   was   laid.       Though 
complainant had denied that he knows father of the appellant who was 
running   tailoring   shop,   and   that   alteration   work   from   complainant’s 
shop was provided to the father of the appellant and has also denied 
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that any amount was due to be paid by the complainant to the father of 
appellant for carrying out alteration work, it is found that the case as 
suggested above  has been denied by the complainant as he wanted to 
falsely implicate the appellant probably, since appellant was insisting 
complainant   for   payment   of   due   amount.       Above   fact   is   found 
substantiated   from   further   evidence   of   complainant   when   he   has 
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admitted that on making payment of Rs.4000/­ he informed appellant 
that he should count money.   He further admitted that in the office of 
A.C.B., no such instructions were given to him to inform appellant to 
count the money but according to his evidence he said so, so that the 
Phenolphthalein powder should go on the hands of appellant.   Above 
piece   of   evidence   further   establishes   the   intention   of   complainant   to 
falsely   implicate   the   appellant   when   he   would   arrive   to   his   shop   to 
collect the amount due towards his father. 
12.
Evidence   of   PW   3   Manoj,   brother   of   complainant, 
corroborates the complainant on the aspect of appellant visiting their 
shop on 5/6/1990 at 12.30 noon and supplying the income tax return 
order   and  refund   voucher.      He   has   also   stated  about  complainant’s 
issuing   acknowledgment   vide   Exh.60   on   receiving   said   documents. 
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Evidence of this witness thus also substantiates the case of appellant 
establishing that no work was left with him, as according to the income 
tax order, it is dated 23/5/1990 while refund order is dated 31/5/1990. 
In the circumstances, though it has further come in the evidence of PW 
3 Manoj that on providing these documents appellant demanded money 
from complainant,   said evidence does not inspire confidence, while I 
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find much substance when it is suggested to this witness that no such 
demand was made though said suggestion is denied by him, in view of 
the specific case of appellant that on 5/6/1990 he was to visit the shop 
of complainant for collecting the due amount.   
13.
In   the   background   of   evidence   of   complainant   when 
evidence of PW 2, panch, who had accompanied him in the shop, is 
perused, it reveals that after he attended the office of A.C.B. along with 
one Bhagat at 2 p.m., he was introduced to complainant and they were 
given demonstration of  Phenolphthalein powder and sodium carbonate 
solution   and   after   giving   necessary   instructions   to   complainant   and 
panchas the trap came to be laid.   On the point of incident, he stated 
that after reaching the shop of complainant he was seeing the clothes 
and in the meantime the appellant arrived and demanded money saying 
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that   he   would   manage,   upon   which   complainant   paid   him   currency 
notes  by  removing  from   right   side   pocket   of   his  pant  and  thereafter 
complainant gave a proposed signal upon which the members of the 
raiding team arrived and apprehended the appellant.   
When   evidence   of   said  independent  witness   is   considered, 
particularly on the point of demand and acceptance, he has admitted 
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that till the appellant arrived at the spot, he was not aware who he was, 
and   it   is   only   when   he   heard   the   talk   between   complainant   and 
appellant   in   a   loud   voice,   he   came   to   know   about   the   appellant. 
Evidence of said panch is totally silent about the conversation on the 
point of demand and acceptance as what has come in his evidence is, 
complainant said to the appellant to count the notes if it was Rs.4000/­ 
or Rs.5000/­ except for this his evidence is totally silent.   In view of 
above   evidence,   it   is   found   that   said   witness   has   spoken   only   with 
reference to complainant’s directing the  appellant to count the notes 
and   his   evidence   is   totally   silent   on   the   point   of   demand   and 
acceptance.       On the contrary, it has come in his evidence that the 
appellant   and   complainant   were   talking   in   a   low   voice   till   the 
authorities of A.C.B. arrived in the shop.     In that view of the matter, 
prosecution   cannot   said   to   have   brought   substantiative   evidence   on 
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record to corroborate complainant’s version. 
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It is well settled that where witnesses make two inconsistent 
statements in their evidence either at one stage or at two stages, the 
testimony   of   such   witnesses   becomes   unreliable   and   unworthy   of 
credence and in the absence of special circumstances no conviction can 
PW 4  Sakharam  Kulkarni, Advocate, had  stated that  he   is 
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be based on the evidence of such witnesses.
looking   after   the   income   tax   work   of   complainant’s   firm   by   filing 
returns, etc. and, totally in contrast to the evidence of complainant, has 
stated  that  prior   to  4/6/1990  complainant  visited   him   and  informed 
that appellant was calling him in the office, upon which he said that as 
he had no work in Income Tax Office for two days, he would be going 
on 4/6/1990 and thus the complainant should accompany him on that 
day   to   meet   the   appellant   while,   according   to   the   complainant’s 
evidence,   on   1/6/1990   it   is   PW   4   Kulkarni   Advocate   who   gave   him 
massage that appellant has called him to meet.     From this piece of 
evidence again it can reasonably held that it is complainant who wanted 
to meet the appellant to involve him in a false case as appellant wanted 
to recover due amount from the complainant.   
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PW 4 Kulkarni further stated that accordingly on 4/6/1990 
he   along   with   complainant   went   to   Income   Tax   Officer   when 
complainant met appellant who was talking about money and he left to 
do his work.   It has further come in his evidence that if the income tax 
return is to be scrutinized, the Income Tax Office has to issue notice 
under the relevant provisions of Income Tax Act within six months from 
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the   date   of   filing   of   returns.       It   has   also   come   in   the   evidence   of 
Advocate   Kulkarni   that   he   had   filed   income   tax   return   in   respect   of 
complainant’s establishment on 29/11/1989.  It is material to note that 
the  incident involved in  this   case  is  dated 5/6/1990, the  assessment 
order   is   dated   23/5/1990   and   refund   voucher   is   dated   30/5/1990 
which established that the income tax returns of complainant were not 
to   be   scrutinized   and   in   fact   refund   order   was   already   issued   on 
30/5/1990 which fact shows that there was no reason for appellant to 
demand money.   In fact, it has further come in the evidence of PW 4 
Kulkarni   that   on   1/6/1990   complainant   told   him   that   he   had   met 
appellant on 5 or 6 occasions, however, he had not asked him as to 
what was the talk which took place between them.   No explanation is 
put forth by prosecution for appellant’s meeting the complainant on so 
many   occasions   prior   to   1/6/1990   and   in   the   absence   of   any   such 
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explanation, thus, the case set out on behalf of appellant appears to be 
more   probable   that   appellant   during   this   period   contacted   the 
complainant for receiving the due amount.  
15.
Evidence   of   PW   5   Fakirchand   Ambadas   Ambekar   when 
perused   it   reveals   that   at   the   time   of   incident   he   was   working   as   a 
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Income Tax Officer at Akola and was required to assess the income tax 
returns while the appellant was working as Upper Division Clerk and 
was assigned with job to process the return by placing the same along 
with his report before the Income Tax Officer which he used to verify 
and to decide if it was suitable for placing for scrutiny or otherwise. 
PW 5 Ambekar stated that Exh.162 is Income Tax return of complainant 
in a  pro forma bearing his  signature  at Exh.163 and has stated that 
since he has signed it, complainant’s case was not referred for scrutiny. 
He   has   also   stated   that   refund   order   (Exh.65)   was   also   sent   to 
complainant.   Evidence of this officer also established fact that nothing 
was left with the office of income tax or with the appellant with regard 
to complainant’s income tax return for the year 1988­89 and thus, it is 
difficult to believe that appellant on the false pretext of not sending the 
case of complainant for scrutiny had demanded bribe, more particularly 
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when   the   assessment   order   as   well   as   refund   order   was   admittedly 
received by the complainant prior to the incident.   
Above case, as set out on behalf of appellant, is found further 
substantiated when PW 5 Ambekar admitted that as per Exh.162, which 
is   return   filed   by   complainant   dated   29/11/1990,   was   accepted   on 
In   view   of   specific   defence   of   appellant   as   already   stated 
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23/5/1990 and thereafter refund voucher was issued on 31/5/1990.  
above and to substantiate the same, the appellant has examined D.W.1 
Advocate Narayan Lokras who was knowing the complainant as at the 
material time PW 4 Advocate Kulkarni was working with him and as 
such the complainant’s income tax returns were filed through him.   He 
has stated that on 2/6/1990 complainant came to his office where PW 4 
Kulkarni, DW 3 Warulkar were present and there was a talk that father 
of   complainant   was   to   receive   approximately   Rs.7000/­   from 
complainant and accordingly this witness informed complainant that he 
should make said payment, upon which complainant said that he would 
make the payment as per his convenience as that much amount was not 
with him and at the same time requested PW 4 Kulkarni to settle the 
amount to a reasonable figure.  Advocate Lokras further stated that the 
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complainant   had   not  denied   said   fact   and  in   his   presence   agreed   to 
make payment of Rs.5000/­ to be paid as per his convenience.   Nothing 
is   elicited   in   the   cross­examineation   of   this   witness   which,   as   such, 
established the probable case of appellant.   In fact, it has come in his 
cross­examination that he has not advised the appellant to issue any 
legal  notice  to complainant having  friendly relations  and particularly 
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when  complainant  admitted  the  liability.    It   has  further   come  in  his 
cross­examination that prior to said meeting there were 2 – 3 meetings 
held   amongst   them   which   were   arranged   by   him   at   the   instance   of 
appellant who insisted to call at his (DW 1’s) office.  
Evidence   of   defence   witness   DW   2   Rampher   Pohar   also 
established fact of assessment order and refund voucher in respect of 
income tax return filed by complainant having been completed much 
prior to the incident, while DW 3 Warulkar further established the case 
of appellant when he has stated that he knows the appellant as he too 
was working in the office of income tax in the same capacity of Upper 
Division Clerk as that of appellant, whose father was a tailor having 
shop   styled   as   ’Gidwani   Tailor’   at   Akola.       He   further   stated   that 
complainant   had   to   pay   Rs.7000/­   to   the   father   of   appellant   and 
therefore  after   the  death  of   his  father   this   witness   had  accompanied 
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appellant to the complainant and demanded Rs.7000/­ with reference 
to   the   tailoring   charges   which   was   avoided   to   be   paid   by   the 
complainant.   He further stated that he had accompanied appellant to 
the   complainant   on   5   to   6   occasions   and   thereafter   had   decided   to 
inform   complainant   through   his   Advocates   DW   1   Lokras   and   PW   4 
Kulkarni.     It has further come in his evidence that on 2/6/1990 he 

accompanied   appellant   to   the   office   of   PW   4   Kulkarni   where 
complainant was called and on that day with regard to the amount of 
Rs.7000/­, which was due, it was agreed that the complainant should 
pay Rs.4000/­ to the appellant.     As such from his evidence it reveals 
that amount of Rs.7000/­, which was due, was agreed to be paid by the 
complainant   to   the   appellant   which   was   negotiated   to   Rs.4000/­. 
Above stated evidence also further establishes the case of accused of his 
false implication.     Nothing is elicited in the cross­examination of this 
witness creating any doubt.   On the contrary, it is denied that he has 
not   accompanied   appellant   to   meet   the   complainant   in   the   office   of 
Advocate Lokras.     It is also denied that he is deposing in favour of 
appellant being his friend.  
17.
Having considered above discussed evidence, appellant can 

said to have established his case as has been set out in his statement 
recorded under Section 313 of Code of Criminal Procedure by way of 
reply to question Nos.51, 93, as well as, written statement filed in reply 
to question No.96 wherein it is the specific case of appellant that during 
life time his father, he owed Rs.7000/­ from the complainant which fact 
was informed to him and note to that effect was also taken by him in his 
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note   book   and   thus   appellant   time   and   again   was   contacting 
complainant for recovery of said amount.   However, complainant was 
avoiding to make said payment.   He  has  further  stated that prior to 
incident on 1/6/1990 with the assistance of his Advocates Shri Kulkarni 
and Shri Lokras, meeting was held between him and complainant in the 
presence of both his Advocates, who were looking after his income tax 
work, who had informed complainant, that amount should be paid to 
appellant,   upon   which   complainant   agreed   to   make   payment   of   Rs.
4000/­ and thus as per the message from complainant he visited his 
shop on 5/6/1990 for collecting his due and came to be apprehended 
on the basis of a false report lodged by complainant.
18.
Learned   APP,   in   the   background   of   facts   involved   in   the 
appeal, has relied upon the case of Ramesh Kumar Gupta ..vs.. State 
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Apeal333.02
of   Madhya   Pradesh  reported   in  1995   CRI.L.J.3656.    However   law 
relied cannot be made applicable having distinguishing facts, as in that 
case the Police Inspector who was apprehended for having accepting 
bribe, gave bare denial that he had no knowledge of notes, which was 
held to be without substance observing that there can be no question of 
false implication as it was proved that it was only by way of harassment 
ig
to   the   complainant   made   by   appellant   by   demand,   complainant   was 
compelled to borrow the amount for making payment.     Moreover, in 
that   case   there   was   sufficient   corroboration   to   the   evidence   of 
complainant by surrounding circumstances, unlike the appeal on hand 
where   there   is   no   corroboration   to   the   complainant’s   evidence   even 
from the evidence of PW 2, panch, on the material aspect of demand 
and acceptance.
19.
Prosecution has also relied  on the case of State of Andhra 
Pradesh   ..vs..   V.Vasudeva   Rao  reported   in  AIR   2004   S.C.960, 
according to which presumption is required to be drawn and it is to be 
understood   as   in   terrorem   i.e.   having   some   import   of   compulsion. 
However, said authority also cannot be made applicable to the instant 
appeal in absence  of  proof  that appellant had accepted or agreed  to 

accept any gratification.     In the absence of above necessary evidence, 
20.
no presumption can be raised. 
On the contrary, law relied on behalf of the appellant in the 
case of  Punjabrao ..vs.. State of Maharashtra, reported in  (2002)10 
SCC 371 can be applied in the instant case wherein it is observed that if 

the explanation offered by the accused under Section 313 of Code of 
Criminal Procedure  is found to be reasonable, then it cannot be thrown 
away merely on the ground that  he did not offer the said explanation at 
the time when the amount was seized.     For the reasons stated herein 
above, as well as on facts, explanation offered by appellant involved in 
this appeal appears to be probable, reasonable and acceptable.
21.
With   reference   to   presumption   as   contemplated   under 
Section 20 of the Act, learned counsel for appellant has placed reliance 
in the case of State of Maharashtra ..vs.. Dnyaneshwar Laxman Rao 
Wankhede reported in (2009) 15 SCC 200 wherein para No.16 of the 
judgment it is laid down that ­
“16.   Indisputably, the demand of illegal gratification 
is a  sine qua non for constitution of an offence under 

the provisions of the Act. For arriving at the conclusion 
as   to   whether   all   the   ingredients   of   an   offence   viz. 
demand,   acceptance   and   recovery   of   the   amount   of 
illegal   gratification   have   been   satisfied   or   not,   the 
court   must   take   into   consideration   the   facts   and 
circumstances brought on  the record in  the entirety. 

For   the   said   purpose,   indisputably,   the   presumptive 
evidence,   as   is   laid   down   in   Section   20   of   the   Act, 
must   also   be   taken   into   consideration   but   then   in 
respect thereof, it is trite, the standard of burden of 
proof on the accused vis­a­vis the standard of burden 
of   proof   on   the   presumption   would   differ.     Before, 
however, the accused is called upon to explain as to 
how   the   amount   in   question   was   found   in   his 
possession, the foundational facts must be established 
by   the   prosecution.       Even   while   invoking   the 
provisions   of   Section   20   of   the   Act,   the   court   is 
required   to   consider   the   explanation   offered   by   the 
accused,   if   any,   only   on   the   touchstone   of 
preponderance   of   probability   and   not   on   the 

22.
touchstone of proof beyond all reasonable doubt.”

In the circumstance and having considering the evidence of 
complainant PW 1 Mukesh Karia and PW 2 – Sudhakar Khot since is at 
variance in respect of demand and acceptance, according to me, the 
appellant would be entitled for benefit of doubt as mere recovery of the 

tainted   currency   notes   by   itself   would   not   raise   any   presumption 
against the appellant/accused, nor this  fact is sufficient to prove the 
offence against the appellant.  A reference at this stage may usefully be 
made to the judgment of the Supreme Court in the case of  Banarasi 
Dass ..vs..   State of Haryana (AIR 2010 SC 1589) : [2010 ALL MR 
(Cri) 1608 (S.C.)].  The Supreme Court in the said judgment has held 
that recovery of the tainted notes divorced from the evidence in respect 
of   demand   and   acceptance   would   not   amount   to   establishing   the 
offence against the accused beyond reasonable doubt.
23.
Thus,   in   view   of   above   discussed   evidence   and   law, 
prosecution cannot said to have established involvement of appellant 
for   having   demanded   and   accepted   the   bribe   amount   within   the 
provisions of Prevention of Corruption Act for which he was charged, 

beyond reasonable doubt, while the case set out on behalf of appellant 
acquitted by giving benefit of doubt. 
24.
appears to be more probable.   The appellant is, therefore, entitled to be 
At   this   stage,   I   must   record   appreciation   for 
Mrs.S.P.Kulkarni,   Advocate,   who   was   appointed   to   represent   the 

appellant.   I found that she had meticulously prepared the matter and 
she has very ably argued the appeal.   As Mrs.Kulkarni is an appointed 
Advocate, I quantify legal fees to be paid to her for this appeal by the 
High   Court   Legal   Services   Committee   at   Rs.5000/­   (Rupees   five 
thousand only).
25.
Accordingly, following order is passed.
Criminal appeal is allowed.
The conviction and sentence imposed upon the appellant for 
the offence under Section 7, 13(1)(d) r/w 13(2) of the Prevention of 
Corruption Act is hereby quashed and set aside  and the appellant is 
acquitted of the offences with which he was charged and convicted.
Fine, if any, paid by the appellant be refunded to him.
His bail bond stands cancelled.


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