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Supreme Court of India
Criminal Law

Supreme Court Sets Aside PC Act Conviction: Every Demand For Money Is Not A Demand For Gratification

Neeraj Dutta vs. State (Govt. of NCT of Delhi) 2023 INSC 245 Decided 17 March 2023

Published: · NyayVidhan · 2 min read

The Supreme Court has set aside the Prevention of Corruption Act conviction of Neeraj Dutta, a Delhi electricity department employee. The shadow witness only heard her ask for the meter papers and Rs. 10,000, which the Court held is not a demand for gratification. Proof of demand must still meet the standard of beyond reasonable doubt.

Supreme Court Sets Aside PC Act Conviction: Every Demand For Money Is Not A Demand For Gratification
File photo: Supreme Court of India, New Delhi Photo: Subhashish Panigrahi Source: Wikimedia Commons Licence: CC BY-SA 4.0

Judgment Intelligence

Conviction Set Aside
Neeraj Dutta vs. State (Govt. of NCT of Delhi)
2023 INSC 245
Criminal Appeal No. 1669 of 2009
Court
Supreme Court of India
Date of Decision
17 March 2023
Bench
Justice Abhay S. Oka, Justice Rajesh Bindal
Relevant Acts & Sections
Prevention of Corruption Act, 1988 (pre-2018 amendment) -- Sections 7, 13(1)(d)(i)-(ii), 13(2) and 20
Final Outcome

The appeal was allowed; the judgments of the High Court and the Special Court were set aside, and the appellant's conviction and sentence under Sections 7 and 13(2) of the Prevention of Corruption Act, 1988 were set aside (para 20).

Source Supreme Court of India, decided 17 March 2023

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Key holdings

  1. The Constitution Bench ruling permits proof of demand by circumstantial evidence, but it does not dilute the requirement of proof beyond reasonable doubt (paras 13-14).
  2. Where demand is proved circumstantially, every circumstance must be established and consistent only with a demand for gratification (para 14).
  3. A shadow witness who only heard the accused ask for papers and Rs. 10,000, without knowing its purpose, does not prove a demand for gratification (paras 15-16).
  4. Every demand for payment of money is not a demand for gratification; it has to be something more than a mere demand for money (para 17).
  5. The Section 20 presumption arises only after demand and acceptance are proved; without proof of demand, the Section 13(1)(d) offence also fails (paras 11, 19).

Case explainer by NyayVidhan: an account of this judgment and the law it laid down, not the court's text. The judgment itself is the authoritative version.

Brief Facts

Complainant Ravijit Singh, a car dealer, alleged that Neeraj Dutta of the Delhi electricity department demanded Rs. 15,000, settled at Rs. 10,000, to install an electricity meter at his shop. A trap was laid on 17 April 2000. The complainant died before the trial. The Special Judge convicted her under Sections 7 and 13(2) of the PC Act, and the High Court affirmed. Her appeal was first referred to a Constitution Bench.

Court's Findings

Applying the Constitution Bench's answer to the reference, the Court held that demand and acceptance may be proved by circumstantial evidence, but the requirement of proof beyond reasonable doubt is not diluted; every circumstance must be established and consistent only with guilt (paras 13-14). The only evidence of demand was the shadow witness, PW-5, who said the appellant merely asked for the meter papers and Rs. 10,000 as she was in a hurry (para 15). He knew nothing of earlier dealings or the purpose of the payment, and every demand for money is not a demand for gratification (paras 16-17). Her defence of a dues-collection drive was supported by the Rs. 71,900 found in her car (para 17). The application for a meter was never proved, and the stolen-meter complaint was registered eight days after the alleged demand, making the prosecution's case extremely doubtful (para 18).

Legal Principle

Proof of demand and acceptance of illegal gratification is a sine qua non under Sections 7 and 13(1)(d) of the PC Act and must be established beyond reasonable doubt, even when proved circumstantially. A mere request for money is not a demand for gratification (paras 9, 14, 17).

Precedents Relied Upon

  1. Applied Discussed at ¶ 5, 10, 11, 13, 14

    Demand and acceptance of illegal gratification may be proved by circumstantial evidence in the absence of direct oral or documentary evidence; the Section 20 presumption arises only on proof of the facts in issue. The Court added that this does not dilute proof beyond reasonable doubt.

  2. B. Jayaraj v. State of Andhra Pradesh (2014) 13 SCC 55
    Relied Upon Discussed at ¶ 4, 11, 12

    The Section 20 presumption applies only to Section 7, not Sections 13(1)(d)(i) and (ii), and arises only on proof of acceptance, which in turn requires proof of demand.

  3. Relied Upon Discussed at ¶ 4, 11

    Approved by the Constitution Bench; followed with B. Jayaraj on proof of demand as a sine qua non.

View all precedents (6)
  1. M. Narsinga Rao v. State of Andhra Pradesh (2001) 1 SCC 691
    Referred To Discussed at ¶ 4

    The earlier three-Judge decision said to conflict with B. Jayaraj and P. Satyanarayana Murthy, leading to the reference.

  2. N. Vijayakumar v. State of Tamil Nadu
    Relied Upon Discussed at ¶ 11, 12

    Mere recovery cannot prove the charge; voluntary acceptance knowing it to be a bribe must be proved beyond reasonable doubt, and the Section 20 presumption follows only after demand and acceptance are proved.

  3. C.M. Girish Babu v. CBI (2009) 3 SCC 779
    Referred To Discussed at ¶ 12

    Mere possession or recovery of currency notes without proof of demand does not constitute the offence (as cited in N. Vijayakumar).

Cited on NyayVidhan

Judgments reported on NyayVidhan that cite this decision, from verified citation links.

  1. Rajasthan High Court 6 October 2026 Relied Upon
  2. Rajasthan High Court 17 April 2026 Relied Upon
  3. Rajasthan High Court 4 September 2023 Referred To
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