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Issues: Whether the prosecution proved demand of illegal gratification beyond reasonable doubt so as to sustain conviction under Sections 7 and 13(1)(d)(i) and (ii) read with Section 13(2) of the Prevention of Corruption Act, 1988.
Analysis: Demand of illegal gratification is an indispensable ingredient of offences under Sections 7 and 13(1)(d)(i) and (ii) of the Prevention of Corruption Act, 1988. Mere recovery of tainted currency, without reliable proof of demand and voluntary acceptance, does not by itself establish the offence. The presumption under Section 20 can arise only when acceptance is proved, and acceptance in turn must rest on proof of demand. The evidence of the accompanying witness did not reproduce a clear and legally acceptable demand, and the absence of the complainant's direct testimony left the prosecution case short of proof beyond reasonable doubt. In such circumstances, an inferential finding of guilt was impermissible.
Conclusion: The prosecution failed to prove demand of illegal gratification beyond reasonable doubt and the conviction could not be sustained; the appellant was entitled to acquittal.
Ratio Decidendi: In prosecutions under Sections 7 and 13(1)(d)(i) and (ii) of the Prevention of Corruption Act, 1988, proof of demand of illegal gratification is essential, and mere recovery of tainted money without such proof is insufficient to sustain conviction.