In a significant ruling, the Supreme Court has held that licensed stamp vendors are ‘public servants’ under the Prevention of Corruption Act, 1988 (PC Act), as they perform an essential public function on behalf of the State. The decision was delivered by a Bench comprising Justices JB Pardiwala and R Mahadevan in Aman Bhatia v. NCT of Delhi.
Emphasizing a purposive interpretation of the statute, the Court underscored that the definition of ‘public servant’ under Section 2(c)(i) of the PC Act encompasses individuals who, though not government employees, discharge public duties and are remunerated by the government through fees or commissions.
“Stamp vendors across the country, by virtue of performing an important public duty and receiving remuneration from the Government for the discharge of such duty, are undoubtedly public servants,” the Court held.
Referring to the Delhi Province Stamp Rules, 1934, the Court noted that licensed vendors procure stamps from the treasury at a discounted rate. This discount, it held, constitutes their remuneration and serves as a commercial incentive for performing a public function vital to revenue collection.
The judgment clarifies that the nature of the duty performed—rather than the mode of appointment or manner of payment—is the key determinant of whether an individual falls within the ambit of a ‘public servant’ under the Act.
The Court was hearing an appeal against a conviction under the PC Act. The appellant, Aman Bhatia, a licensed stamp vendor, had been convicted in 2013 for allegedly overcharging for stamp paper. The Delhi High Court had upheld his conviction, ruling that a stamp vendor is a public servant under the PC Act.
However, while the Supreme Court affirmed that stamp vendors are indeed public servants, it set aside Bhatia’s conviction. It found that the prosecution failed to prove a crucial element: the demand for a bribe.
“It is well-settled that mere recovery of tainted money is not sufficient to establish an offence under the PC Act. Proof of demand is a sine qua non for conviction under Section 7,” the Court reiterated.
Accordingly, the Court allowed the appeal and acquitted Bhatia, holding that the prosecution had not proved the allegation of bribery beyond reasonable doubt.
Senior Advocate SK Rungta and Advocate-on-Record Rameshwar Prasad Goyal represented the appellant. Additional Solicitor General Aishwarya Bhati appeared for the State.
