N. RAMAKRISHNAIAH (DEAD) THR. LRS. v. STATE OF A.P.

The Judgment of the Court was delivered by H

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A DR. ARIJIT PASAYAT, J 1. Leave granted.

2Copy pinpoint2. Challenge in this appeal is to the judgment of a learned Single Judge of the Andhra Pradesh High Court dealing with Criminal Appeal preferred by appellant No.1-N. Ramakrishnaiah who died during the pedency of the appeal and his legal heirs 8 were brought on record as appellants in this appeal.

3Copy pinpoint3. The factual matrix leading to the conviction of the ac- t- cused N. Ramakrishnaiah was as follows: The accused joined government service as a Supervisor C on 02 .11 .1955 in the Andhra Pradesh Panchayat Raj Depart- ment. He was promoted as a Deputy Executive Engineer on 02.01.1967 and further promoted as an E.xecutive Engineer on 01.03.1979. He continued to work as an Executive Engineer, Kamareddy of Karimnagar District till he was kept under sus- D pension on 26.05.1986. On reliable information that he had ac- quired assets disproportionate to his known sources of income, a case was registered on 12.05.1986 and the investigation was taken up. During the course of investigation, search was con- ducted. The documents found during the search disclosed ac- E quisition of number of assets by the accused in his name and in the name of his dependents. During the check period i.e. from 2.11.1955 to 13.5.1986, he acquired assets worth Rs.14, 71,578. His income from all known sources was Rs.8,23,634/- and the expenditure during the check period was F Rs.7,88,574/-. After deducting the expenditure from the income, he would have saved Rs.35,040/-. But he had acquired the as- sets worth Rs.17,71,578/-. After deducting the likely saving of Rs.35,040/-, the disproportionate assets in possession of·ac- cused from his known sources of income was worked out at G Rs.14,36,538/- and he could not give satisfactory account for acquisition of those assets. He was, therefore, liable for pun- ishment under Section 5 (1)(e) read with Section 5 (2) of the Prevention of Corruption Act, 194 7 (hereinafter referred to as the "Old Act"). H The following was the charge framed against the accused:

N. RAMAKRISHNAIAH (DEAD) THR. LRS. v. 737 STATE OF A.P. ) "That you being a public servant employed as Supervisor A on 02.11.1955 subsequently promoted as Dy. Executive Engineer on 02.01.1967 and Executive Engineer on 01.03.1979 in the Panchayat Raj Department of Government of Andhra Pradesh, during the period between 02.11.1955 and 13.05.1986 acquired assets, which were B disproportionate to your known sources of income and on -r· or about the 13th day of May, 1986 you had been in possession of pecuniary resources or property ,in your name and in the names of your wife and children to the extent of Rs.14,36,538.00 which were disproportionate to c your known sources of income and for which you could not satisfactorily account and you thereby committed an offence under section 13 (1) (e) of the Prevention of Corruption Act, 1988 .(Sec. 5(1) (e) of the Old Act) punishable under Section 13(2) of the said Act (Sec. 5(2) D of the Old Act) and within my cognizance." '·--r' . He denied the above charge and claimed for trial. The pros- ecution in order to prove the guilt of the accused examined P.Ws. 1 to 52, and marked Exs. P.1 to P.195. No oral evidence was adduced on defence side. But, Ex.D-1 relating to the agricul- E > tural income for some period was marked. The learned Special Judge after considering the oral and documentary evidence, found the accused guilty for the offence punishable under Section 5(1 (e) read with Section 5(2) of the ....._i Act, convicted and sentenced him to undergo simple imprison- F ment for one year and to pay a fine of Rs.20;000/-_ in default to suffer simple imprisonment for three months. The learned Spe- cial Judge also directed that Item Nos.1 to 4 of assets to be sold in public auction and the sale proceeds was directed to be confiscated to the State. Being aggrieved by the judgment of G ~~

-" the trial Court accused preferred the appeal in the High Court, which was dismissed.

4Copy pinpoint4. It is to be noted that in the appeal before the High Court, the dispute was restricted to only Item No.26 of the assets (mov- H

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-f--· A ables) and agricultural income. It was stated that the former was ' over estimated and deserved to be scaled down and there was underestimation of the latter and the same was to be increased. The High Court with reference to the evidence and materials on record did not find any substance in the plea and upheld the 8 conclusions.

5Copy pinpoint5. The stand was re-iterated by the learned counsel for the +- appellants.

6Copy pinpoint6. On the other hand, learned counsel for the State sup- c ported the judgments of the trial Court and the High Court.

7Copy pinpoint7. One of the items as far as income is concerned was interests on deposits. The High Court noted that the same re- lated to interest accrued on deposits. Since total income and expenditure formed the basis of computation, the accrued in- D come has been duly taken note of. The accrual of interest was on the deposits made, in a sense that it is not·an investment. •• That was accrued income. If it is excluded, the income earned "'r- would be reduced to that extent. Thus, it would not be a factor in favour of the accused. E

8Copy pinpoint8. Similar is the position in respect of deposits in Pratibha Finance Corporation and Sapthagin Finance Corporation.

9Copy pinpoint9. So far as movables covered by item No.26 are con- cerned, the trial Court and the High Court relied upon the evi- F dence of PW 36 and PW 52 and Ext P-112 (list of movables).

10Copy pinpoint10. The movables covered are those which were listed in the inventory made at the time of search room wise. The details contained are the year of acquisition, the value of each article and other particulars given by the accused himself. The details were recorded by PW-36. Further, PW-52 also corroborated the evidence by deposing to similar effect. Though suggestion +-- ··~ ~ was made that the accused did not give the detail to PW-36, significantly PW-52 was not cross-examined in this regard. High Court noticed t.hat it was not specified by the accused as to in respect of which particular item there was over valuation. Sig-

N. RAMAKRISHNAIAH (DEAD) THR. LRS. v. 739 STATE OF A.P.

nificantly, signature of the accused is there in the inventory. The A ·--r· conclusions of the High Court to reject contentions of the ac- cused do not suffer from any infirmity to warrant interference.

11Copy pinpoint11. So far as the agricultural income is concerned, pros- ecution relied upon the evidence of Manda! Revenue Officer (PW-23). He furnished details relating to yield, cultivation, in- B spection remarks in respect of the agricultural properties for -~ Faslis 1378 to 1395. The details are Ext. P91 and P92. An- other witness was PW-24 who gave Ext P94 statement giving details of land in Agadala Lanka Village. He also gave details ~ for Faslis 1379 to 1394. Similarly, PW-25 gave details by c Ext.P95 for Fastis 1376 to 1390 in respect of Pydichinthalapadu Village. As per Ext.P96 details were given from 1968 to 1985 relating to market rate of Paddy at Eluru. Other witnesses ex- amined to prove the agricultural income aspect were PWs 40, 41, 27. An agriculturist PW-39 was examined to show the yield. D His lands were adjacent to that of the accused. ,_ -.,' 12. It is interesting to note that accused placed reliance on Ext.01 purporting to show yields in certain Faslis. It was re- covered from the house of the accused. But interestingly no ma- terial was adduced to show who was the author of the docu- E -+ ment and as to on what basis the entries were made. There was not even a signature of the person who had prepared it. The High Court did not attach any importance to it.

13Copy pinpoint13. We notice that the figure indicated in Ext.01 is F Rs.1,34, 160/- for the period from 1961 to 1976. The trial Court .;.'i has in fact gone to the extent of adopting the figures of these 15 years for the next 10 years. The entries in Exts. P92 to 95 have not been established to be erroneous and therefore the trial Court and the High Court have rightly refused to accept G accused's stand of under-estimation.

--~ ;. 14. Section 13 of Prevention of Corruption Act, 1988 (in short the 'Act') deals with various situations when a public ser- vant can be said to have committed criminal misconduct. Clause (e) of Sub-section (1) of the section is applicable when the pub- H

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A lie servant or any person on his behalf, is in possession or has, ·--y- at any time during the period of his office, been in possession I

for which the public servant cannot satisfactorily account of pe- cuniary resources or property disproportionate to his known source of income. Clause (e) of Sub-section (1 ), of Section 5 of B the Old Act was in similar lines. But there have been drastic amendments. Under the new clause, the earlier concept of "known sources of income" has undergone a radical change. As per the explanation appended, the prosecution is relieved '4- of the burden of investigating into "source of income" of an ac- c cused to a large extent, as it is stated in the explanation that "known sources of income" mean income received from any lawful sources, the receipt of which has been intimated in ac- ~ cordance with the provisions of any law, rules or orders for the time being applicable to a public servant. The expression "known source of income" has reference to sources known to the pros- D ecution after thorough investigation of the case. It is not, and cannot be contended that "known sources of income" means ~ sources known to the accused. The prosecution cannot, in the y very nature of things be expected to know the affairs of an ac- cused person. Those will be matters "specially within the knowl- E edge" of the accused, within the meaning of Section 106, of the Indian Evidence Act, 1872 .(in short, the 'Evidence Act'). \--- "

15Copy pinpoint15. The emphasis of the phrase "known sources of income" in Section 13(1) (e) (old Section 5(1) (e)) is clearly on the word F "income." It would be primary to observe that qua the public servant, the income would be what is attached to his office or post, commonly known as remuneration or salary. The term "in- r1 come" by itself, is classic and has a wide connotation. What- ever comes in or is received is income. But, however, wide the -G import and connotation of the term "income", it is incapable of being understood as meaning receipt having no nexus to one's labour, or expertise, or property, or investment, and being fur- -1-· ther a source which may or may not yield a regular revenue. "" """ These essential characteristics are vital in understanding the term "Income". Therefore, it can be said that, though "income" H

N. RAMAKRISHNAIAH (DEAD) THR. LRS. v. 741 STATE OF A.P.

41,..in receipt in the hand of its recipient, every receipt would not A \ partake into the character of income. For the public servant, whatever return he gets of his service, will be the primary item of his income. Other income which can conceivably be income qua the public servant will be in the regular receipt from (a) his property, or (b) his investment. A receipt from windfall, or gains B of graft, crime or immoral secretions by persons prima facie would not be receipt for the "known sources of income" of a ~ public servant.

16Copy pinpoint16. The legislature has advisedly used the expression "sat- • isfactorily account." The emphasis must be on the word "satis- C factorily" and the legislature has, thus, deliberately cast a bur- den on the accused not only to offer a plausible explanation as to how he came by his large wealth, but also to satisfy the Court that his explanation was worthy of acceptance. D

17Copy pinpoint17. The analysis made by the trial Court and the High Court and evidence on record leave no manner of doubt that the con- ' 1:....,.. viction as recorded does not suffer from any infirmity. We find no infirmity with the order of the High Court. The appeal is dis- missed. E R.P. Appeal dismissed.

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