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Issues: Whether the accused could be convicted under Section 5(1)(e) read with Section 5(2) of the Prevention of Corruption Act, 1947 for possession of disproportionate assets found before the insertion of clause (e), in view of Article 20(1) of the Constitution of India.
Analysis: Clause (e) of Section 5(1) was inserted only by the Amending Act of 1964 and therefore created a distinct offence only from the date it came into force. Possession of pecuniary resources or property disproportionate to known sources of income, when found prior to the commencement of that clause, could not be treated as an offence under a provision that did not then exist. The earlier Section 5(3) operated as a rule of evidence and did not itself create a substantive offence. Since the accused was found in possession before the new clause became operative, the constitutional protection against conviction for an act not punishable under the law then in force applied.
Conclusion: The conviction under Section 5(1)(e) read with Section 5(2) was not sustainable and the accused was entitled to the protection of Article 20(1).
Final Conclusion: The appeal failed because the newly inserted offence could not be applied to pre-enactment possession, and the acquittal was maintained.
Ratio Decidendi: A person cannot be convicted for conduct made criminal only by a later enactment when the alleged act or possession occurred before that provision came into force.