Insolvency Resolution Professionals are also Public Servants: Jharkhand High Court

A bench of Justice Gautam Kumar Choudhury of the Jharkhand High Court stated that the " Resolution Professional" shall come under the purview of the meaning of public servant under Sections 2(C)(v) and 2(c)(viii) of the Prevention of Corruption Act, 1988.

The complainant in this case was a Director of one of the two companies to whom an Interim Resolution Professional ( herein the petitioner) was appointed whereby the latter demanded a bribe of Rs. 2,00,000 per month to influence the Corporate Insolvency Resolution Process and stretch it to 24 months from the initial 9 months. He further demanded Rs. 20,00,000 for assisting in securing a favourable Forensic audit.

The petitioner was caught red handed and FIR under Section 7 of the Prevention of Corruption Act, 1988 was registered against which the present petition has been filed for quashing the FIR as he claimed to not fall under the purview of Section 2(c) of the Prevention of Corruption Act, that is within the purview of the definition of a Public Servant. Justice Choudhury was of the opinion that the meaning of Public Servant is wide and those who are not drawing salary from government, government bodies or exchequer, but are serving public functions shall also come under the said definition.