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Issues: (i) whether repeal of section 5(3) of the Prevention of Corruption Act, 1947, prevented its application to offences committed while it was in force and to pending proceedings; (ii) whether the retrospective revival and application of section 5(3) by Act No. 16 of 1967 violated Article 20(1) of the Constitution of India.
Issue (i): whether repeal of section 5(3) of the Prevention of Corruption Act, 1947, prevented its application to offences committed while it was in force and to pending proceedings.
Analysis: Section 5(3) was treated as a rule of evidence and not as a separate offence. The repeal did not extinguish the legal effect of the provision for offences already committed, because the savings principle embodied in section 6 of the General Clauses Act, 1897 preserved prior operation, accrued consequences, and pending proceedings unless a contrary intention appeared. The use of the presumption in pending cases was therefore not barred merely because the provision had been repealed prospectively.
Conclusion: The repeal did not bar reliance on section 5(3) for offences committed before repeal and pending trials continued to be governed by it.
Issue (ii): whether the retrospective revival and application of section 5(3) by Act No. 16 of 1967 violated Article 20(1) of the Constitution of India.
Analysis: Article 20(1) prohibits conviction or enhanced punishment under an ex post facto law. The retrospective amendment here did not create a new offence or impose a greater penalty; it revived the earlier evidentiary rule for conduct already committed when that rule was in force. A change in procedure or evidence, in these circumstances, did not amount to an unconstitutional ex post facto enactment.
Conclusion: The retrospective application of section 5(3) did not violate Article 20(1) and was constitutionally valid.
Final Conclusion: The appeal failed on all substantial challenges, and the order directing further trial was sustained.
Ratio Decidendi: A repealed evidentiary provision may continue to govern pending proceedings and past offences by virtue of the savings rule in section 6 of the General Clauses Act, 1897, and its retrospective revival does not offend Article 20(1) unless it creates a new offence or imposes a greater punishment.