State Of M.P vs Rameshwar & Ors

The Supreme Court held that the respondents, as members of the Loan Committee of the Indore Premier Co-operative Bank, could not be prosecuted under Sections 409 IPC or the Prevention of Corruption Act, 1988, as they were not considered 'public servants' in light of the precedent set in State of Maharashtra vs. Laljit Rajshi Shah [(2000) 2 SCC 699]. The Court affirmed the High Court's decision to discharge the respondents from charges, emphasizing that the Loan Committee's role did not involve direct verification of loan eligibility, which was the responsibility of the Bank Manager. Consequently, the appeals by the State of Madhya Pradesh were dismissed, upholding the High Court's order.