P. Satyanarayana Murthy v. The Dist. Inspector of Police and Anr.
Background
The appellant, then Assistant Director at the Commissionerate of Technical Education, Hyderabad, was accused of demanding Rs. 500 as a bribe from the principal of a private typing institute in exchange for renewing the institute's recognition. A police trap was laid, and marked currency notes were allegedly recovered from the appellant's possession. The trial court convicted him under both Sections 7 and 13 of the Act; the High Court upheld the conviction under Section 13(1)(d) but acquitted him under Section 7. The complainant had died before trial and so could not testify, leaving the demand element to be proved through other witnesses.
Decision Breakdown
The Supreme Court held that proof of an actual demand for illegal gratification is an indispensable, non-negotiable ingredient of offences under both Sections 7 and 13(1)(d) of the Prevention of Corruption Act: mere recovery of money from the accused, without independently proved demand, cannot sustain a conviction (relying on its own recent decisions in B. Jayaraj v. State of A.P. and State of Kerala v. C.P. Rao). Examining the key prosecution witness's testimony closely, the Court found it fell short of actually describing any demand being made by the appellant: it only showed money changing hands, not that it was demanded as a bribe. Since the complainant (the only person who could have given direct evidence of the demand) had died before trial, the gap in proof could not be filled. The Court held the conviction under Section 13(1)(d) could not stand either, and allowed the appeal, setting aside the High Court's judgment.
Lesson Learnt
In bribery prosecutions, simply catching someone with marked/tainted money is not enough to convict: the prosecution must separately and clearly prove that the money was actually demanded as a bribe, and the loss of the only witness who could prove that demand can be fatal to the case.