Report No. 50

15. Recommendation in 42nd Report as to private employees.-

We may, in this connection, note that the Law Commission has, in its Report on the Code,1 already recommended the insertion of a provision punishing private employees who take bribes. Now that the question has arisen as regards persons who are not in "employment", we think that opportunity should be taken to extend the law to them also.

The new section recommended as to private employees in that Report is as follows:-

'420B. Employee taking bribe in respect of employer's affairs or business.-Whosoever, being employed by another, accepts or obtains or agrees to accept or attempts to obtain, from any person, for himself or for any other person, any gratification, other than legal remuneration, as a motive, or reward-

(a) for doing or forbearing to do any act in relation to his employer's affairs or business; or

(b) for showing or forbearing to show, in the exercise of his functions, favour or disfavour to any person in relation to is employer's affairs or business, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

Explanations.-(1) The word "gratification" is not restricted to pecuniary gratification, or to gratifications estimable in money.

(2) The words "legal remuneration" are not restricted to remuneration which any employee can lawfully demand, but include all remuneration which he is permitted by his employer to accept.

(3) "A motive or reward for doing"-A person who receives a gratification as a motive or reward for doing what he does not intend or is not in a position to do or has not done, comes within these words.

Exception.-This provision does not extend to a case in which the employee is a public servant acting as such.

1. 42nd Report (Penal Code), para. 17.54 and suggested new section 420B.