Bank Manager appointed by liquidator can be tried under PCA:HC

The Bombay High Court has held that the manager of a co-operative bank appointed by liquidator is a 'public servant' as defined under the Prevention of Corruption Act and hence, can be prosecuted for taking bribe.
The ruling was delivered recently by Justice S C Dharmadhikari on a petition filed by Sadashiv Sutar challenging a special court order refusing to discharge him in a case of accepting bribe from a family.
Sutar was appointed as the manager of Indira Cooperative Bank Ltd by the liquidator. The bank was under liquidation since 1998 and ten years later, the liquidator appointed a manager to help him in the process of winding up of the bank.

The bank was operating from the premises of a property in suburban Borivali. When the family wanted the premises back from the bank, the manager had allegedly demanded Rs five lakh bribe for returning the favour.
A complaint was filed by an investor with the Anti- Corruption Bureau who arrested Sutar under the Act. Sutar took a stand that he was not a public servant as defined under the Act and hence, he cannot be tried.
The special court had dismissed his discharge plea holding that he was a public servant and hence, he could be tried under the Act. Sutar had then moved the high court.

Justice Dharmadhikari observed that the special court judge cannot be said to be vitiated by any error of law apparent on the face of the record or perversity.
"The view taken by him (judge) does not result in miscarriage of justice and in doing so, the judge has not acted with material irregularity or illegality resulting in manifest injustice," he said.
"To my mind, the petitioner is not right in only relying upon the bye-laws of a Cooperative Society or a Cooperative Bank such as in this case. It is not the status of the entity or its set up which is important, but the nature of the duty performed by it as well," Justice Dharmadhikari said.