# STATE OF MADHYA PRADESH v. M. V. NARASIMHAN

- **Citation:** [1976] 1 S.C.R. 6
- **Court:** Supreme Court of India
- **Decided:** 1975-07-15
- **Bench:** N. L. Untwalia, Azal Ali
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/state-of-madhya-pradesh-v-m-v-narasimhan-6670
- **Pages:** 10

## Headnote

Prevention of Corruption Act, 1947, Section 2-lncorporation of provisJon.t
o1 s. 21 of Pl·rtal Code in the definition of public servant-Amendment to s. 21
including l·mployee of Government company-Definition of public servant in s.
2 of the Act, if unaffected.
Section 2 of the Prevention of Corruption Act, 1947, provides that, for the
purposes of this Act, "public servant" means a public servant as defined in s. 21
of the Indian Penal Code.
Before the Criminal Law (Amendment) t\ct, 1958
(Act No. 11 of 1958) W:\S passed add'..ng clause 12 to this section, s. 21 of the
Penal Cod::! consisted only of eleven clauses and an employee under the Corpora~
tion or a Government Company did no fall within the purview of any of the
clauses of s. 21 of the Penal Code. Clause 12 was further amended by the AntiCorruption Laws (Amendment) Act. 1964 (Act No. XL of 1964) enlarging the
definition of "public servant".
_ The respondent who was an employee in the Heavy Electricals (India) Ltd.,
Bhopal, which is a Government Company, was conv!cted by the Special Judge,
Indore, under s 420 I.P.C. ands. 5(2) read withs. 5(1)(d) of the Act and was
ientencerl to one year rigorous imprisonment on each count. The appeal filed by
the respondent before the High Court of Madhya Pradesh was allowed mainly on
tbe ground that as the respondent was not a public servant as contemplated by
the provisions of the- Act, his trial under the Act was \Vithout jurisdiction. The
H£gh Court took the view that as the Act had incorporated the definition of the
Penal Code prior to its amendment, it became an integral and independent part
of the Act and wouJd remain unaffected by any rePeal or change in the previous
Aot, namely, the Penal Code. This appeal has been preferred on the basis of
the certificat~ granted by the High Court.
· Allowing the appeal,
' I-IELD: (i) It is \Yell-settled that, after the provision of the prev:ons Act is
incorporated in the subsequent Act, the off-spring, namely, the incorpora~ed proTisions, "Survives even if the previous Act is repealed, amended, declared a nutlity
or erased from· the statute book.
But the Act being a social legislation its proA
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c
D
E
visions must be construed liberally so as to advance the object of the Act. Though
F
the Act and the Penal Code are not statutes in pari materia, there can be no doubt
that the Evidence Act and the Prevention of Corruption Act form part of one
system, because the rules of Evidence Act, with minor exceptions, apply to trials·
of offences created under the Act. The Act, no doubt, contains a penal flavour
but i.t is in effect a piece of social legislation directed towards eradication of the
evil of corrurtion amongst the services alone. In other words, the public servants
alone fall within the mischief of the Act and no one else._ [llE; 12A-C]
Clarke v. BradlauRh. [1881] 8 Q.B.D. 63,69, Ram S~rup v. Munshi and
G
Othf'rs, [1963] 3 S.C.R. 858, 868-869, In re Wood's Estate, Ex parte Her Majesty's
Commissioners of Works and Buildings, [18861 31 Ch. D. 607, 615-616, Secr~tary
of State for India in Council v. Hindustan Co-operative Insurance Society Ltd.
L.R. 58 I.A. 259. 266-267. referred to.
•
State of Madras v. Vaidyanath Aiyar, A.LR. 19.58 S.C. 61, relied on.
(
(ii) The object of the Act is to eradicate corruption from various levels either
H
in Government services or in servk~es under the Corporation or ('70vemment
Companies. The Penal Code no doubt creates offences like those mentioned in
iS. 161 and 165 of the Code but they were not found sufficient to cope with the
present situation and the exvanding need9 of the nation. In these circumstances,
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M.r. STATE v. M. v. NARASIMHAN (Fazal Ali, J.)
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it was considered necessary to evolve a quick, expeditious and effective machinery
to destroy the evil of corruption existing in anv form.
If, therefore, the Penal
Code with the same object enlarged the definition of s. 21 by adding the twdfth
clause by virtue of the Criminal Law (Am

## Text

6
STATE OF MADHYA PRADESH
v.
M. V. NARASIMHAN
July 15, 1975
[N. L. UNTWALIA AND S. M. F,AZAL ALI, JJ.]
Prevention of Corruption Act, 1947, Section 2-lncorporation of provisJon.t
o1 s. 21 of Pl·rtal Code in the definition of public servant-Amendment to s. 21
including l·mployee of Government company-Definition of public servant in s.
2 of the Act, if unaffected.
Section 2 of the Prevention of Corruption Act, 1947, provides that, for the
purposes of this Act, "public servant" means a public servant as defined in s. 21
of the Indian Penal Code.
Before the Criminal Law (Amendment) t\ct, 1958
(Act No. 11 of 1958) W:\S passed add'..ng clause 12 to this section, s. 21 of the
Penal Cod::! consisted only of eleven clauses and an employee under the Corpora~
tion or a Government Company did no fall within the purview of any of the
clauses of s. 21 of the Penal Code. Clause 12 was further amended by the AntiCorruption Laws (Amendment) Act. 1964 (Act No. XL of 1964) enlarging the
definition of "public servant".
_ The respondent who was an employee in the Heavy Electricals (India) Ltd.,
Bhopal, which is a Government Company, was conv!cted by the Special Judge,
Indore, under s 420 I.P.C. ands. 5(2) read withs. 5(1)(d) of the Act and was
ientencerl to one year rigorous imprisonment on each count. The appeal filed by
the respondent before the High Court of Madhya Pradesh was allowed mainly on
tbe ground that as the respondent was not a public servant as contemplated by
the provisions of the- Act, his trial under the Act was \Vithout jurisdiction. The
H£gh Court took the view that as the Act had incorporated the definition of the
Penal Code prior to its amendment, it became an integral and independent part
of the Act and wouJd remain unaffected by any rePeal or change in the previous
Aot, namely, the Penal Code. This appeal has been preferred on the basis of
the certificat~ granted by the High Court.
· Allowing the appeal,
' I-IELD: (i) It is \Yell-settled that, after the provision of the prev:ons Act is
incorporated in the subsequent Act, the off-spring, namely, the incorpora~ed proTisions, "Survives even if the previous Act is repealed, amended, declared a nutlity
or erased from· the statute book.
But the Act being a social legislation its proA
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c
D
E
visions must be construed liberally so as to advance the object of the Act. Though
F
the Act and the Penal Code are not statutes in pari materia, there can be no doubt
that the Evidence Act and the Prevention of Corruption Act form part of one
system, because the rules of Evidence Act, with minor exceptions, apply to trials·
of offences created under the Act. The Act, no doubt, contains a penal flavour
but i.t is in effect a piece of social legislation directed towards eradication of the
evil of corrurtion amongst the services alone. In other words, the public servants
alone fall within the mischief of the Act and no one else._ [llE; 12A-C]
Clarke v. BradlauRh. [1881] 8 Q.B.D. 63,69, Ram S~rup v. Munshi and
G
Othf'rs, [1963] 3 S.C.R. 858, 868-869, In re Wood's Estate, Ex parte Her Majesty's
Commissioners of Works and Buildings, [18861 31 Ch. D. 607, 615-616, Secr~tary
of State for India in Council v. Hindustan Co-operative Insurance Society Ltd.
L.R. 58 I.A. 259. 266-267. referred to.
•
State of Madras v. Vaidyanath Aiyar, A.LR. 19.58 S.C. 61, relied on.
(
(ii) The object of the Act is to eradicate corruption from various levels either
H
in Government services or in servk~es under the Corporation or ('70vemment
Companies. The Penal Code no doubt creates offences like those mentioned in
iS. 161 and 165 of the Code but they were not found sufficient to cope with the
present situation and the exvanding need9 of the nation. In these circumstances,
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M.r. STATE v. M. v. NARASIMHAN (Fazal Ali, J.)
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it was considered necessary to evolve a quick, expeditious and effective machinery
to destroy the evil of corruption existing in anv form.
If, therefore, the Penal
Code with the same object enlarged the definition of s. 21 by adding the twdfth
clause by virtue of the Criminal Law (Amendment) Act, 1958 and the Anti-corruption Laws (Amendment) Act, 1964, there :s no reason why the extended meaning to the provision of s. 2 of the Act as borrowed from s. 21 of the Penal Code
be not given to that section.
Otherw'.se the
Act would
become who11y unworkablo.
[12D-FJ
St•crefary of State for India in Council v. Hindustan Co-operative Insurance
Society Ltd. L.R. 58 I.A. 259, 266-267, S. Gango/i v. The State of Uttar Pradesh,
{1960] 1 S. C. R. 290 and M.
Narayanan Nambiar
v. State of Kera/a, [1963}
Supp. 2 S.C.R. 724. referred to.
(iii.) Even if s. 2 of the Act had not applied the provisions of the Penal Code
~tnd had not defined public servant, then the provisiort<; of the Penal Code would
have come inro operation by implied reference because the Act was a supnlemen·
tat Act to the Penal Code. It was only by way of abundant cauti.on that s. 2
of the Act incorporated the definition of "public servant" as mentioned in s. 21
of the .Penal Code and in that sense alone tho Act can be treated as being p6ri
materia with the Penal Code.
[15A-B]
CRIMINAL APPELLATE JUR?SDICTION : Criminal Appeal No. 284
of 1974.
From the judgment and order dated the 12th April, 1973 of the
Madhya Pradesh High Court in Criminal Appeal No. 43 of 1971.
F. S. Nariman, Addi. Solicitor General of India, P. P. Rao and
R. N. Sachthey, for the appellant.
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The respondent appeared in person.
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The Judgment of the Court was delivered by
FAZAL Au, J.
This is an appeal by State of M.P. by certificate
ganted by the.High Court of Madhya Pradesh under Art. 134(l)(c)
of the Constitution against its judgment and order dated April 12,
1973 by which the respondent who was convicted by the Special
Judge, Indore, under s. 220 I.P.C. and s.5(2) read with s. 5(l)(d)
of the Prevention of Corruption Act, 1947 and sentenced to one year
rigorous imprisonment on each count, was acquitted by the
High
Court.
Briefly
put,
the
prosecution
case
against
the
respondent was. that
he was
an
employee
in
the Heavy
F.Jectncals (fadta) Ltd, Bhopal which is a Government company
and was workmg at the relevant time as Personal Assistant to Shri
K;. C. Rae, Manager, Purch~sing & Main Stores of the Campany .
Mr. Rae was al.otted a new Frat Car at Bombay on priority basis and
the respondent and Mr. Rae had arrived at Bombay to take delivery
oJ1 the car on March 10, 1965 and they stayed there till March 13,
I ?65" Mr. Rae, however, left .on the morning of March 13, 1965
directmg the respondent to obtain debvery of the Fiat Car on March
14, 1965 and then proceed to Ind'Dre. Ultimately the car was brought
to Bhopal on March 16, 1965 at about 2-30 P.M.
On March 23
1965 the respondent submitted his T.A. bill Ext. P-21 showing hi~
departure from Bombay on March 16, 1965 by car at 2--00 P.M.
8
SUPREME COURT REPORTS
[1976] 1 S.C.R.
and arrival
at
Bhopal
on March 17,
1965 at 6-30 P.M.
and claimed daily allowance at the rate of Rs. 12/- per day for halt
at Bombay. The respondent accordingly received the full amount of
.the T.A. Bill on April 3, 1965. The allegation against the respondent was that he had prepared a false T.A. Bill and had cheated the
Government Company and was guilty of serious criminal misconduct
ru; envisaged by the Prevention of Corruption Act.
The learned
Special Judge, Indore, accepted the prosecution case and
convicted
the respondent as indicated above.
The respondent then filed an
appeal before the High Court of Madhya Pradesh which
allowed
appeal, mainly on the ground that as the respondent was not a public
servant as contemplated by the provisions of the
Prevention
of
Corruption Act, his trial under the said Act was without jurisdiction.
The High Court, however, left it open to the Government to prosecute
the respondent under the relevant law, if necessary. It is against this
order of the High Court that the State of M.P. has filed this appeal
before us after obtaining certificate of fitness from the High Court.
The short point taken by the respondent before the High Court
was that as the word "public servant" has not been expressly defined
in the Prevention of Corruption Act, 1947, it has borrowed the
definition from s. 21 of the Indian Penal Code, such a definition
amounts to legislation by incorporation, and therefore any subsequent
amendment, addition or alteration in the Indian Penal Code would
not at all affect the incorporated provision in
the Prevention of
Corruption Act.
The High Court seems to have readily accepted
this contention and has accordingly held that as the various amendments to s. 21 of the Indian Penal Code cannot apply to the provisions
of the Prevention of Corruption Act, and therefore the respondent
being only an employee of the Government Company does not fall
within the ambit of public servant as defined in s. 21 0£ the Indian
Penal Code prior to the amendment.
In order of appericate this
point, it may be necessary to set out the scheme of the Prevention
of Corrupthln Act-hereinafter referred to as 'the Act'-with particular reference to
s. 21 of the Indian Penal Code-hereinafter
referred to as 'the Penal Code'-which has been incorporated in the
kt. To begin with, the preamble to the Act clearly
shows that
the Act has been passed for more effective prevention o~ bribery
and corruption, bribery being
a form of corruption. Section 2 of
the Act runs thus :
"For the purpose of this Act, "Public servant" means
a public servant as defined in section 21 of the
Indian
Penal Code."
It would be seen that s. 2 of the Act completely incorporates
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the prcwision of s. 21 of the Penal Code in order to define a "public
servant".
The Legislature in its wisdom did not think it necessa!Y
to give a separate definition of "oub'ic servant" in the Act, b~t. m
order to achieve brevity in legislation
incorporated the
provmon
H
o~ s. 21 of the Penal Code into it. Before the Criminal Law (Amendment) Act, 1958 (Act No. II of 1958) was passed s. 21 of the Penal
Code consisted only of eleven clauses and an employee under the
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M.P. STATE v. M. v. NARASIMHAN (Fazal Ali, J.)
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Oorporation or a Government Company did not fall within
the
purview of any of the clauses of s. 21 of the Penal Code.
Thus
when the Legislature incorporated the provisions of s. 21
of the
Penal Code in the A.ct in the year 1947, cl. 12 was not there
at
all on tho statute book of the Penal Code.
The High Court took
the view that as the Act had incorporated the definition of the Penal
Code prior to its amendment, therefore, it became an integral and
independent part of the Act and would remain unaffected by any
repeal or change in the previous Act, namely the Penal Code. It
appears, however, that by virtue of the Criminal Law (Amendment)
Act, 1958, twelfth clause was inserted in s. 21 of .the Penal Code,
which runs as follows :
"Twelfth . .:_Every officer in the service or pay of a
local authority or of a corporation engaged in any trade or
industry which is established by a Central, Provincial or
State Act or of a Government company as defined ii.I sectiun
617 of the Companies Act, 1956."
This Act also amended certain provisions of the Prevention of
Corruption Act, 1941 in enlarging the concept of criminal misconduct
but it did not at all amend any portion of s. 2 of the Act, perhaps
the reason being that in view of the enlargement of the definition of
"public servant" in s. 21 of the Penal Code express amendment of
s. 2 of the Act was not necessary.
By virtue of the Anti-Corruption Laws (Amendment) Act, 1964
(Act No. XL of 1964), clause 12 of s. 21 of the Penal Code was substituted as follows :
"Twelfth.-Every person-
(a) in the service or pay of the Government or remunerated by fees or commission for the
performance of any
public duty by the Government;
(b) in the service or pay of a local authority, a corporation established by or under a Central, Provincial or State
Act or a Government company as defined in section 617
of the Companies Act, 1956,"
It would thus appear that by virtue of these two amendments the
Parliament sought to enlarge the definition of "public servant" so as
to include even an employee of a Government company or a corporaHon with the avowed object of stamping out corruption at
various
levels prevailing in the country.
The question that arises for consideration is whether the subsequent amendments to s. 21 of the Penal Code after its incorporation
in the Act would have to be read into the Act or not. It is true that
if the doctrine of legislation by incorporation is strictly applied in this
10
SUPREME COURT REPORTS
[1976] 1 S.C.R.
case, then the definition of s. 21 of the Penal Code prior to its amendment by Act II of 1958 and Act XL of 1964 would alone stand and,
if this is so, the respondent would not be a public servant within the
meaning oll s. 21 of the Penal Code. It is well settled that where the
subsequent Act incorporates a provision of the previous Act, the position is that the borrowed provision is bodily lifted from the previous
Act and placed in the subsequent Act and becomes an integral and
independent part of it so as to remain unaffected by any repeal, change
or amendment in the previous Act.
In Clarke v. Bradlaugh,(') Brett,
L.J., observed as follows:
" .......... but there is a rule of construction that, where
a statute is incorporated by reference into a second statute,
A
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the repeal of the first statute by a third does not affect the
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second."
These observations were noticed and approved by this Court in
Ram Sarup
v.
Munshi and Others('), where this Court made the
following observations ;
"Where the provision of an Act are
incorporated by
reference in a later Act the repeal of the earlier Act has,
in general, no effect upon the construction or effect of the
Act in which its provisions have been incorporated.
The
effect of incorporation is stated by Brett, L.J., in Clarke v.
Bradiaugh:
"Where a statute is incorporated, by reference into a
second statute the repeal of the first statute by a third does
not affect the second."
In the circumstances, therefore, the repeal of the Punjab
Alienation of Land Act of 1900 has no effect on the continued operation of the Pre-emption Act and the expression
'agricultural land' in the later Act has to be read as if the
definition in the Alienation of Land Act had been bodily
transposed into it."
The doctrine of incorporation by reference to earlier legislation
has been very aptly described by Lord Esher, M. R., in In re Wood's
Estate, Ex parte Her Majesty's Commissioners of Works and Buildings,(•) where he observed as follows:
"If a subsequent Act brings into itself by reference some
of the clauses of a former Act, the legal effect of that, as
has often been held, is to write those sections into the new
Act just as if they had been actually written in it with the
pen, or printed in it, and, the moment you have those clauses
in the later Act you have no occasion to refer to the former
Act at all.
F~r all practical purposes, therefore,
those
sections of the Act of 1840 are to be dealt with as if they
were actually in the Act of 1855."
(I) [18811 8 Q. B. D. 63, 69.
(2) [1963! 3 S.C.R. 858, 868-869.
(3) [1886] 31 Ch. D. 607, 615-616.
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M.P. STATE v. M. Y. NARASIMHAN (Fazal Ali, I.)
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Craies on Statute Law, (7th Edition), while referring to the observa-·
lions of Brett, L.J., 'Observed at p. 361 as fo1lows
"There is a rule of construction that where a statute
is incorporated by reference into a second statute, the repeal
of the first statute by a third does not atfect the second,
as the incorporated provisions have become part of
the
second statute."
The Privy Council in Secretary of Stale for India in Council v.
Hindustan Co-operative Insurance Society Ltd.(1), while amplifying
this doctrine, observed as follows :
"Their Lordship regard the local Act as doing nothing
more than incorporating certain provisions from an existing Act, and for convenience of drafting doing so by reference to that Act, instead of setting uut for itself at length
the provisions which it was desired to adopt. ........ The
independent existence of the two Acts is therefore recognized; despite the death of the parent Act, its offspring survives in the incorporating Act. Though no such saving caluse
appears in the General Clauses Act, their Lordships think
that the principle involved is as applicable in India as it is in
this country."
Thus, the position is that after the provision of the previous Act
is incorporated in the subsequent Act, the off-spring, namely the incorporated provisions, survives even if the previous Act is repealed,
amended, declared a nullity or erased from the statute book. The
High Court appears to have relied on all these decisions in order to
come to its conclusion that as the Act has incorported the provisions
of s. 21 uf the Penal Code in s. 2 thereof, any amendment in the
previous Act, namely the Penal Code, will not affect the subsequent
Act, namely the Prevention of Corruption Act
It was argued before the High Court as also before us that the
Act and the Penal Code are statutes in pari materia and form part of
one system and they should, therefore, be interpreted as enforcing
each o.her. Thus any change in the definition of s. 21 of the Penal Code
would have to be implicitly read into s.2 of the Act.
The Additional
Solicitor General Mr. Nariman appearing for the State, however,
conceded later un, and in our opinion rightly, that it may not be
possible to hold that the Act and the Penal Code were statutes
in
pari, materia.
It would appear that the Act is a completely selfcontained statute with its own provisions and has created a specific
offence of criminal misconduct which is quite
different from
the
offence uf bribery as defined in the Penal Code.
Both these statutes have different objects and create offem:es with
ioeparate ingredients. No authority has been cited before us in support
of the proposition that the Act, namely, the Prevention of Corruption
Act, and the Penal Code are statutes in pari materia so as to form one
system.
(I) L. R. 58 I. A. 259, 266-267.
12
SUPREME COURT REPORTS
[1976] 1 S.C.R.
In the State of Madras v. Vaidyanath Aiyar, ( ') this Court while
construing the meaning of the phrase 'it shall be presumed' appearing
in s. 4 of the Act utilised the construction placed on the phrase 'shall
presume' in the Evidence Act by holding that the Evidence Act was
a statute in pari materia with the
Prevention of Corruption Act.
There can be no doubt that the Evidence Act and the Prevention of
Corruption Act form part of one system, because the rules of the
Evidence Act, with minor exceptions,
apply to trials of offences
created under the Act.
This principle, however, cannot apply to the
present case, where, as we have already stated the areas of the two
statutes, namely the Act and the Penal Code are entirely different.
Secondly, while the Indian Penal Code is essentially a penal statute of
a much wider scope than the Act, the Act no doubt contains a penal
flavour but it is in effect a piece of social legislation directed towards
eradication of the evil of corruption amongst the services alone.
In
,other words, public servants alone fall within the mischief 0£ the Act
i.e. the Prevention of Corruption Act, and no one else.
Mr. N ariman then argued that having regard to the preamble and
the object of the Act and the Penal Code there can be no doubt that
the Act was undoubtedly a statute supplemental to the Penal Code
and that being the position any amendment in the definition of
s.
21 of the Penal Code wou'd have to be read into s. 2 of the Act, because
-0nce the definition of s.21 of the Penal Code was incorporated in the
Act it had to be imported into the other Act and considered pari passu
the Penal Code.
Jn our opinion, this argument is well founded and
must prevail.
We have already indicated that the object of the
Act was to eradicate corruption from various levels either in Government services or in services under the Corporations or Government
companies.
The Penal Code no doubt creates offences like those
mentioned in ss. 161 and 165 o~ the Code but they were not found
sufficient to cope with the present situation and the expanding needs
of the nation.
In these circumstances, it was considered necessary to
evolve a quick, expenditious and effective machinery to destroy the
evil of corruption existing in any from. If, therefore, the Penal Code
with the same object enlarged the definition of s.21 by adding the
twelfth clause by virtue of the Criminal Law (Amendment) Act, 1958
and the Anti-corruption Laws (Amendment) Act, 1964, there is no
reason why the extended meaning to the provision of s.2 of the Act as
borrowed from s. 21 'Of the Penal Code be not given to that section.
This Court in S. Gangoli v. The State of Uttar Pradesh(2) while
interpreting s. 2 of the Prevention of Corruption Act, that the accused were public servants within the meaning of tlie Act, being emplo-
·yees of the East Indian Railway, which was managed and owned by
the Government of India, observed as follows :
"The East Indian Railway which has employed the appellants was at the material time owned bv the Government
of India and managed and run by it, and so if the status of
the appellants had to be judged at the material date solely
(1) A.LR. 1958 S. C .. 6t.
(2) [1960] I S.C.R. 290.
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by reference to s.21 of the Code there would be no difficulty
in holding that they are public servants as defined by the said
section."
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Even while discussing the exact ambit and sC1Jpe
lion of Corruption Act, this
Court observed
in
Nambiar v. State of Kerala(•I) as follows :
of the PrevenM. Narayanan
"The preamble indicates that the Act was passed as it was
expedient to make more effective provision for the prevention of bribery and corruption.
The long title as well as
the preamble indicate that the Act was passed to put down
the said social evil i.e. bribery and corruption by public
servant. . . . . . . . . . . . . It also aims to protect honest public
servants from harassment by prescribing that the investigation against them could be made only by police officials of
particular status and by making the sanction of the Government or other appropriate officer a pre-condition for their
prosecution.
As it is a socially useful! measure conceived
in public interest, it should be liberally construed so as to
bring about the desired object, i.e. to prevent
corruption
among public servants and to prevent harassment of the
honest among them.''
These observations regarding the object of the Act obviously were
based on the footing that the Act must be read as supplemental to
the Penal Code, and therefore the definition bonowed from the Penal
Code must be read into s. 2 of the Act not only at the time when il
was borrowed but even at the material date when the offence is committed.
This being the position it is manifest that by virtue of the
amendments referred to a!Jove in the Penal Code which
inserted
twelfth clause to s.21 of the Penal Code the respondent clearly comes
within the meaning of "public servant" and the High Court was
in
error in taking a view to the contrary.
Further'the Prevention
of
Corruption Act being
a social legislation its provisions
must be
liberally construed so as to advance the object of the Act.
This
can only be done if we give extended meaning to the term "public
servant" as referred to in s. 2 of the Act by applying the enlarged
definition contained in clause 12 inserted in the Penal Code by the
two amendments referred to above.
There is yet another aspect of the matter which is spelt out from
the decision
of the Priv,y Council in the
Hindustan
Co-operative
Insurance Society's case (supra) which has been relied upon by the
High Court itself.
While reiterating the principle that after certain provisions from an existing Act have been incorporated into a
subsequent Act, no addition to the fopmer Act can be made, their
Lordships of the Privy Council made it clear that this principle would
not apply where the subsequent Act is rendered unworkable or is not
able to function effectually.
In this connection their Lordships observed, as follows :
(1) [1963] Supp.2S.C. R. 724.
14
SUPREME COURT REPORTS
[1976] 1 s.c.R.
"It seems to be no less logical to hold that where certain
provisions from an existing Act have been incorporated into
a subsequent Act, no addition to the former Act, which is
not expressly made applicable to the subsequent Act, can
be deemed to be incorporated in it,
at all events if it is
possible for the subsequent Act to function effectually without the addition."
On a consideration of these authorities, therefore, it seems that
the following proposition emerges :
Where a subsequent Act incorporates provisions of a
previous Act then the borrowed provisions become an integ-
.ral and independent part of the subsequent Act and are totally unaffected by any repeal or amendment in the previous
Act.
This principle, however, will not apply in the following cases :
(a) where the subsequent Act and the previous Act are supplemental to each other;
(bl where the two Acts arc in pari materia;
A
B
c
(c) where the amendment in the previous Act, if not imported
D
tnto the subsequent Act also, would render the sub,equeiit
Act wholly unworkable and ineITcctual; and
(d) where the amendment of the previous Act, either expressly
or by necessary intcndment, applies
the
said
provisions
to the subsequent Act.
The Additional Solicitor General vehemently contended that
if the enlarged definition by the insertion of clause 12 in s. 21 of the
Penal Code is not imported into s.2 of the Act, then the Act would
become wholly unworkable.
For instance, if two persons are serving
under a Government company and have committed an offence of accenting ilbgal gratification, and if one is prosecuted under s. 161 of the
Penal Code and the other under the Act, it is obvious that the prosecution against the employee under the Penal Code would succeed
on proof o~ facts, whereas the employee of the same company who
is prosecuted under the Act will fail because such an employee will
not be a public servant, according to the extended meaning given by
the amendments to s. 21 of the Penal Code.
This will, therefore,
defeat and frustrate not only the object of the Act but will render
it absolutely unworkable.
In view of these circumstances, therefore.
we are inclined to hold that in the facts and circumstances of the present case and having regard to the nature and scope of the Prevention
of Corruption Act, the extended definition of s.21 of the Penal Code
would have to be imported into s. 2 of the Act.
That being the
position there can be no doubt that the respondent was a public servant
within the meaning of s. 2 of the Act and his conviction by the 10arned
Special Judge, Indore, did not suffer from any legal infirmity.
There is yet another aspect of the matter.
It seems to us that
even if s. 2 of the Act had not applied the provisions of the Penal
•Code and had not defined public servant, !hen the provisions of the
E
F
G
H
•
'
A
n
c
D
•
I
M.P. STATE v. M. v. NARASIMHAN (Faza/ Ali, J.)
15
Penal Code would have come into operation by implied reference
.l•ecause the Act was a supplemental Act to the Penal Code. It was
only by way of abundant caution that s. 2 of the Act incorporated the
definition of '·public servant" as mentioned in s. 21 of th~ Penal Code
and in that sense alone the Act can be treated as being pari muteria
with the Penal Code.
For these reasons, therefore IH are clearly of
the opinion that the judgment of the High Court holding that the
respondent '!'as not a public servant is legally erroneous and cannot
be allowed to stand.
The other point is regarding the question of sentence. The High
Court has itself pointed out that the respondent had been forced under
duress exercised by his superior officer in drawing the inflated travelling
allowance.
The High Court has also expressed the view that having
regard to the fact that as the accused had to face a trial for a number
of years, the Government will consider the desirability of not prosecuting him again. In view of these circumstances, therefore, we feel the
respondent
has
committed only a technical offence and a token
sentence is called for.
We, therefore, allow the appeal, set aside the judgment of the High
Court dated April 12, 1973, acquitting the respondent.
We convict
lhe respondent under s. 420 I.P.C. and s. 5 (2) read with s. 5 ( 1) ( d)
of the Prevention of Corruption Act but reduce his sentence to the
imprisonment already cerved.
V.M.K.
Appeal allowed .