# Sanjay Kumar Agarwal v. Union of India

> HC judgment dated 2025-02-14. Citation: TCN-2025-HC-00044. The case involves a criminal revision application filed by Sanjay Kumar Agarwal against an order…

- **Court:** HC
- **Order date:** 14 Feb 2025
- **Citation:** TCN-2025-HC-00044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/sanjay-kumar-agarwal-vs-union-of-india-a138000c

## Summary

### Background

The case involves a criminal revision application filed by Sanjay Kumar Agarwal against an order dismissing his discharge petition in connection with ECIR Case No. 05 of 2021, registered under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA), 2002. The prosecution alleges that Agarwal, while serving as an Interim Resolution Professional (IRP), demanded a bribe from Amit Sarawgi, Director of M/s Adi Ispat (P) Limited, for showing leniency in the insolvency resolution process. A trap was set, and Agarwal was allegedly caught accepting a portion of the demanded bribe. The CBI filed a charge-sheet under Section 7 of the Prevention of Corruption Act, leading to the PMLA case.

## Facts

Sanjay Kumar Agarwal, an Insolvency Professional, is accused of demanding a bribe from Amit Sarawgi, Director of M/s Adi Ispat (P) Limited. Sarawgi alleged that Agarwal demanded Rs. 2,00,000 per month for showing leniency in the insolvency resolution process and Rs. 20,00,000 for a favorable forensic audit report. Agarwal allegedly offered Sarawgi the opportunity to participate in an auction proceeding if his demands were met. A trap was set by the CBI, and Agarwal was allegedly caught accepting Rs. 3,00,000 as part of the bribe on 11.02.2020. The CBI filed a charge-sheet under Section 7 of the Prevention of Corruption Act, and a complaint was lodged under the PMLA. Agarwal filed a discharge petition, which was dismissed, leading to the current criminal revision

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## Issues and analysis

### Issue 1: Whether the petitioner, being a Resolution Professional, falls within the definition of a 'public …

**Ratio:** The definition of 'public servant' under Section 2(c) of the Prevention of Corruption Act

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**Reasoning:** The court relies on a previous order of a Single Judge of the same High Court, which held

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**Interpretation:** The court interprets the definition of 'public servant' expansively to include

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**Application:** The court applies the ratio to the facts of the case, finding that Agarwal, as

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## Parties

- **Judges:** Sujit Narayan…
- **Appellants:** Sanjay Kumar…
- **Respondents:** Adi Ispat Pvt.…; Union of…
- **Other parties:** 8th Edition…; Resolution…; +12 more

## Timeline

- **2019-11-22 — NCLT Ord…**: NCLT, Kolkata Bench passed orders for Corporate Insolvency Resolution Process (CIRP) of…
- **2019-11-27 — Public Annou…**: Public announcement of the initiation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7(3) — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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