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Issues: (i) whether a Member of Parliament falls within the definition of a public servant under the Prevention of Corruption Act, 1988; (ii) whether sanction was required for prosecuting Shri V.C. Shukla for the alleged offences; and (iii) whether the diaries and loose sheets relied upon by the prosecution furnished sufficient admissible material to justify framing of charges.
Issue (i): Whether a Member of Parliament falls within the definition of a public servant under the Prevention of Corruption Act, 1988.
Analysis: The definition of public servant in Section 2(c) of the Act is wider than the corresponding provision in the Indian Penal Code and extends to a person who holds an office by virtue of which he is authorised or required to perform any public duty. A Member of Parliament occupies an office, performs public duties, and is within the legislative intent of the 1988 enactment, which was designed to enlarge the anti-corruption net by purposive interpretation.
Conclusion: A Member of Parliament is a public servant within Section 2(c)(viii) of the Prevention of Corruption Act, 1988.
Issue (ii): Whether sanction was required for prosecuting Shri V.C. Shukla for the alleged offences.
Analysis: Sanction under Section 19 of the Act depends on the status of the person on the date cognizance is taken and on whether the alleged acts were committed in relation to the office then held. The allegations against Shri V.C. Shukla related to a period when he belonged to the earlier Lok Sabha, whereas the charge-sheet was filed after the dissolution of that House and when he was a member of the newly constituted House. On that footing, the prosecution did not require prior sanction for the acts alleged in the charge-sheet.
Conclusion: Prior sanction was not required for the prosecution on the facts presented.
Issue (iii): Whether the diaries and loose sheets relied upon by the prosecution furnished sufficient admissible material to justify framing of charges.
Analysis: At the stage of framing charge, the material must disclose a prima facie case and be capable of becoming legal evidence. The diaries and loose sheets were not proved to be books of account regularly kept in the course of business, their contents were not independently established by admissible evidence, and they did not form a complete chain of circumstantial evidence capable of sustaining the prosecution case. Mere entries, without corroboration, could not justify presumption of acceptance of illegal gratification or conspiracy.
Conclusion: The material was insufficient to sustain the framing of charges against the petitioners.
Final Conclusion: The impugned orders framing charges were set aside and the criminal proceedings were quashed.
Ratio Decidendi: Under the Prevention of Corruption Act, 1988, a purposive reading of Section 2(c)(viii) brings Members of Parliament within the definition of public servant, but charges cannot be sustained unless the prosecution places admissible material showing a prima facie case, because uncorroborated diary entries not proved as books of account do not by themselves establish illegal gratification or conspiracy.