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2.
This appeal is against a judgment and order dated
15th December, 2020 passed by the High Court of Judicature at
Allahabad dismissing the application of the Appellant under
Section 482 of the Code of Criminal Procedure (hereinafter
referred to as the ‘Cr.P.C.’).
3.
As recorded in the judgment and order impugned, the
application under Section 482 of the Cr.P.C. had been filed for
quashing of proceedings in Crime Case No.5973/2020 (State v. Rajan
Kumar) under Sections 420, 467, 468 and 471 of the Indian Penal
Code (hereinafter referred to as the ‘I.P.C.’), Police Station
Shahpur, District Gorakhpur pending in the Court of the Additional
2
Chief Judicial Magistrate, IIIrd District Gorakhpur and also to
quash the charge sheet dated 18th January, 2020 and summoning order
dated 26th June, 2020. The High Court has, in detail, recorded the
arguments of the applicants which are very briefly summarised
hereinbelow :-
(i)
The case lodged was false and baseless;
(ii) Charge-Sheet had been submitted without proper investigation
and evidence;
(iii) No prima facie case was disclosed against the applicants.
4.
It is the case of the Appellant that one Arjun Dev and his
wife Bela Rani were recorded as Bhumidhar of Plot No. 971M area
918 Aire (hereinafter referred to as the ‘plot in question’) and
that they had executed a registered Power of Attorney in favour of
the Applicant No.1 Rajan Kumar, who has since died.
5.
It is said that on the basis of the said Power of Attorney,
the said Rajan Kumar (since deceased) executed sale deeds in
favour of the Appellant and his family members on 16th July, 2014,
1st August, 2014, 6th August, 2014 and 23rd July, 2014, pursuant to
which, the name of the Appellant and others were mutated in the
Revenue records.
6.
From the facts, as recorded in the judgment and order under
appeal, it appears that during the mutation proceedings, one Smt.
Beena Srivastava had filed objections before the Naib Tehsildar
but the same were rejected and the property was duly mutated in
favour of the Appellant and his family members by an order dated
28th February, 2015.
3
7.
Smt. Beena Srivastava filed an Original Suit No. 971 of 2014
for cancellation of the Power of Attorney dated 4th June, 2014 and
the sale deeds executed by Rajan Kumar (since deceased) in favour
of the Appellant and his family members but that suit was
dismissed under Order VII Rule 11 of the Code of Civil Procedure,
by order dated 18th September, 2015.
8.
The order dated 18th September, 2015 was challenged in First
Appeal No.531 of 2015 before the High Court. That appeal was
partly allowed by an order dated 26th November, 2015 with a
direction on the Trial Court to return the plaint of the plaintiff
for presentation before the appropriate Court.
9.
Being aggrieved by the order of the High Court dated 26th
November, 2015, Smt. Beena Srivastava, approached this Court by
filing Special Leave Petition (Civil) No. 2848 of 2016 which had
been dismissed by an order dated 8th September, 2016. From the
judgment and order impugned, it appears that it had been submitted
before the High Court that Chandra Prakash Srivastava and Smt.
Beena Srivastava had also filed a Contempt Application No. 706 of
2016 which had been dismissed by an order dated 10th February,
2016. Before the High Court, it was submitted that when Beena
Srivastava could not get any relief from the Trial Court right
upto this Court, she filed a Writ Petition No. 12275 of 2016 which
had also been dismissed by an order dated 28th March, 2016. The
said Beena Srivastava’s son, Dr. Virat Swaroop Saxena also filed a
contempt application which had been dismissed by an order dated
29th July, 2016.
4
10. Pursuant to the order dated 28th March, 2016 passed by the
High Court in Writ Petition No.12275/2016, the Appellant
instituted Original Suit No.608 of 2016 in the Court of Civil
Judge, Senior Division, Gorakhpur for permanent injunction in
respect of the plots in question. It appears that by an order
dated 12th April, 2016, temporary injunction had been granted in
favour of the Appellant. This is recorded in the judgment and
order under appeal.
11. It was the case of the applicants before the High Court,
(including Rajan Kumar, since deceased), that having failed to get
relief from the courts, Beena Srivastava brought in Ratnesh
Mishra, Smt. Afroz Athar and Abdul Gani into the picture to harass
the Appellant. We are not really concerned with these allegations
for the purpose of this appeal.
12. Suffice it to mention that the judgment and order under appeal
records the submission of the applicants that the Power of
Attorney holder of Bela Rani, namely, Rajan Kumar (since deceased)
had executed the sale deed dated 22nd June, 2017 in favour of the
Applicant No.2 (that is, the Appellant before us) after receiving
5
the sale consideration. Later, a supplementary deed was executed
on 16.09.2017. On the basis of Sale Deed dated 22nd June, 2017,
the name of the Appellant was mutated in the records. Further
details of what transpired are not recorded to avoid unnecessary
prolixity. Suffice it to mention that the Respondent No.2 filed an
FIR in this Court. The relevant extracts from the said FIR,
lodged on 16th September, 2017 are reproduced hereinbelow for
convenience :-
“The applicant has purchased on 21.08.2017 one house with
courtyard in which shops are also present from Smt. Afroz wife
of Ghani Athar Resident of Moh. Basharpur, Gorakhpur and
Virendra Kumar Abrol son of Ram Swarop Abrol Resident of Jail
Road Shahpur currently residing at Raghav Nagar Deoria by way of
registered Sale Deed in which one shop made by asbestos sheet
and one residential Room with Gate at back side is constructed.
……………………….
……………………..
……………………..
The said house with boundary wall & shop is registered in the
name of Afroz Athar at the Municipal Corporation and she has
been paying the applicable house Tax on the same and nobody had
interfered in her possession. In the meanwhile, Afroz Athar
was in dire need of money and proposed to sell the said Land
and house to the applicant. The Applicant purchased the said
House No. 239/B with the house and courtyard by way of Sale
Deed and as a precautinary measure also got the signatures of
the erstwhile owner Virendra Kumar Abrol on the Sale Deed so
that no dispute remains in the future. In the meantime, one
other person Rajan Kumar son of Late Ramswaroop 77 Geeta
Vatika, Shahpur Gorakhpur currently residing at Ragav Nagar
Deoria on the basis of a false Power of Attorney of Bela Rani
executed a Sale Deed to Randheer Singh son of Late Shiv Shanker
House No. 11C Divya Nagar Colony P.S Khorabar, Gorakhpur by
connivance whereas Bela Rani had no right to sell the Afroz
Athar’s House intact with Boundary wall. On the basis of the
same False Sale Deed Randheer Singh and Rajan Kumar in
association with the witnesses of the said sale deed Vishal
Sharma son of Ram Chandra & Sunil Kumar son of Sh. Rajdev, who
are Criminal natured persons, are attempting to trespass the
house by breaking open the Lock and today night have also got
written their name in my absence. When in the morning the
applicant got the knowledge of the same he went to the police
station to lodge First Information Report but due to their
influence our report could not be lodged and for which the
applicant is making this application before you. The above
stated Randheer Singh and Rajan Kumar have done this to obtain
6
their benefit & have created a False document and by intention
to cause loss to us & to forcibly grab my house and therefore
for this reason it is necessary in the interest of justice to
registered a case against them. Hence it is prayed that the
case be registered ………….”
13. As pointed out by Mr. Sanjeev Agarwal, learned counsel
appearing on behalf of Respondent No.2, the FIR was challenged in
the High Court of Judicature at Allahabad under Article 226 of the
Constitution of India. The said writ petition was disposed of by
order dated 5th October, 2017 with the following order:
“It is contended that the dispute in respect of the
property as to whether the petitioners have any right
therein on the basis of conveyance deed executed by
power of attorney holder or the first informant has the
right is purely civil in nature and does not give rise
to any criminal liability.
Learned AGA and Sri Sudhanshu Pandey, appearing for
complainant-respondent no. 3 opposed the petition.
We have gone through the allegations contained in the
impugned F.I.R., which, prima-facie, discloses
commission of cognizable offence, as such, we are not
inclined to interfere in the F.I.R.
However, in view of the facts and the allegations made
in the FIR, writ petition stands finally disposed of
with the direction that the petitioners shall not be
arrested in the aforesaid case crime number till
submission of police report under Section 173(2)
Cr.P.C. before the Court concerned, subject to their
cooperation in the investigation, which will go on and
shall be brought to a logical end.”
14. Mr. Agarwal, submitted that the order dated 5th October, 2017
of the High Court disposing of the Writ Petition (Criminal
Miscellaneous) No.20919 of 2017 had not been challenged by the
Appellants and had, thus, assumed finality. It was not open to
the Appellant to reopen the same issues by filing an application
under Section 482 of the Cr.P.C.
7
15. The scope of interference by the High Court under Section 482
of the Cr.P.C. is wide as recorded by the High Court by the
judgment and order impugned. The High Court itself has said that
though inherent power under Section 482 of the Cr.P.C. is very
wide, it has to be exercised in exceptional cases.
16. There can be no doubt that the jurisdiction under Section 482
is not exercised for the asking, it is exercised with care in
exceptional cases. The scope of interference with an FIR is much
more restricted and ordinarily the Court does not interfere under
Article 226 of the Constitution of India, when there is an
alternative remedy available to the applicant. Furthermore, from
the tenor of the order of the High Court rejecting the writ
petition, it is patently clear that one of the reasons why the
High Court did not intervene at that stage was that the Police
report had also not been submitted. The Police report has since
been submitted and the charge sheet has been filed. It is true
that about 12-13 witnesses have been named. However, the said
Bela Rani who executed the Power of Attorney has not even been
cited as a witness. Apparently, the said Bela Rani was not even
examined by the Investigating Authorities.
17. In this appeal, we are not concerned with the underlying civil
disputes between the parties which are the subject matter of
diverse civil proceedings which are pending between the Appellant
and the private respondent in the concerned civil courts. All
those civil suits will obviously be decided on their own merits.
8
18. The only question is whether there is any criminal offence
disclosed in the FIR so far as the Appellant is concerned. When
the High Court passed its order dated 5th October, 2017, Rajan
Kumar (since deceased), the executant of the sale deed and the
Power of Attorney holder was also an applicant before the Court.
Today, there has been a change in situation, in that, criminal
proceedings against Rajan Kumar have abated since Rajan Kumar is
no longer alive. It is the case of the private respondent that the
private respondent purchased property. In the meantime, Rajan
Kumar, who is no longer alive, on the basis of a false Power of
Attorney of Bela Rani, executed a sale deed in favour of Randheer
Singh, i.e., the Appellant herein. There is only a vague averment
“by connivance”. The next part of the sentence reads “Bela Rani
had no right to sell the aforesaid plot.”
19. As recorded in the judgment and order, the property in
question has even been mutated in the name of the Appellant. Of
course, mutation records are not a document of title. Whether
Bela Rani had title, whether she validly executed a power of
attorney, whether any right has accrued to the Appellant, are
matters for the civil court to adjudicate.
9
20. There is a further allegation that on the basis of the false
sale deed, the Appellant and Rajan Kumar (since deceased) in
association with the witnesses of the sale deed who are “criminal
natured persons” were attempting to trespass the house by breaking
open the lock and had got written their name in the absence of the
complainant.
21. It is interesting that a charge sheet was filed, the relevant
part whereof is extracted hereinbelow for convenience :-
“16. Brief fact of the case :
The case was successful on the basis of the plaintiff.
Further, the investigation was transferred from police
station Shahpur to the Crime Branch.
The above investigation was done by me. So for during
the investigation the statements of the witness and
sec. 420, 467, 468, 471 of IPC has been registered
against the accused.
The accused is send to the court, punished the accused
by summing.”
22. The charge sheet is totally vague. There is not even a whisper
in the charge-sheet of what transpired from the investigation
against the Appellant herein.
23. Even though an FIR need not contain every detail, an offence
has to be made out in the FIR itself. It is the case of the
Private Respondents that Bela Rani has no title. Bela Rani
executed a false Power of Attorney in favour of Rajan Kumar (since
deceased). Alternatively, the Power of Attorney, in itself, was a
forged document.
10
24. A fraudulent, fabricated or forged deed could mean a deed
which was not actually executed, but a deed which had fraudulently
been manufactured by forging the signature of the ostensible
executants. It is one thing to say that Bela Rani fraudulently
executed a Power of Attorney authorising the sale of property
knowing that she had no title to convey the property. It is
another thing to say that the Power of Attorney itself was a
forged, fraudulent, fabricated or manufactured one, meaning
thereby that it had never been executed by Bela Rani. Her
signature had been forged. It is impossible to fathom how the
investigating authorities could even have been prima facie
satisfied that the deed had been forged or fabricated or was
fraudulent without even examining the apparent executant Bela
Rani, who has not even been cited as a witness.
25. Ms. Deepika Kalia, learned counsel appearing on behalf of the
State, competently argued the matter and vehemently tried to
persuade this Court not to intervene. She even sought time to
produce further documents. However, the charge-sheet speaks for
itself and there could be no question of improvement of the
charge-sheet read with the FIR, either by adducing documents or by
filing affidavit or by making oral submissions.
26. Mr. Chandra Prakash, learned counsel appearing on behalf of
the Appellant cited certain judgments of this Court in <cite>Mohd.
Ibrahim & Others
v.
State of Bihar [(2009) 8 SCC 751]</cite>; <cite>Paramjeet
Batra
v.
State of Uttarakhand [(2013) 11 SCC 673]</cite>; <cite>Uma Shankar
Gopalika
v. State of Bihar & Anr. [(2005) 10 SCC 336]</cite>; <cite>Vesa
11
Holdings Private Limited & Anr.
v.
State of Kerala & Ors. [(2015)
8 SCC 293]</cite>; <cite>Robert John D’Souza & Ors.
v.
Stephen V. Gomes & Anr.
[(2015 (9) SCC 96]</cite>; and <cite>Kapil Agarwal & Ors.
v.
Sanjay Sharma &
Ors. [(2021) 5 SCC 524]</cite>.
27. In <cite>Mohd. Ibrahim (supra)</cite>, this Court held as under :-
“19.
To constitute an offence under Section 420, there should
not only be cheating, but as a consequence of such cheating, the
accused should have dishonestly induced the person deceived
to deliver any property to any person, or
(i)
(ii) to make, alter or destroy wholly or in part a
valuable security (or anything signed or sealed and
which is capable of being converted into a valuable
security).
When a sale deed is executed conveying a property
20.
claiming ownership thereto, it may be possible for the purchaser
under such sale deed to allege that the vendor has cheated him
by making a false representation of ownership and fraudulently
induced him to part with the sale consideration. But in this
case the complaint is not by the purchaser. On the other hand,
the purchaser is made a co-accused.
It is not the case of the complainant that any of the
21.
accused tried to deceive him either by making a false or
misleading representation or by any other action or omission,
nor is it his case that they offered him any fraudulent or
dishonest inducement to deliver any property or to consent to
the retention thereof by any person or to intentionally induce
him to do or omit to do anything which he would not do or omit
if he were not so deceived. Nor did the complainant allege that
the first appellant pretended to be the complainant while
executing the sale deeds. Therefore, it cannot be said that the
first accused by the act of executing sale deeds in favour of
the second accused or the second accused by reason of being the
purchaser, or the third, fourth and fifth accused, by reason of
being the witness, scribe and stamp vendor in regard to the sale
deeds, deceived the complainant in any manner.
As the ingredients of cheating as stated in Section 415
22.
are not found, it cannot be said that there was an offence
punishable under Sections 417, 418, 419 or 420 of the Code.
A clarification
12
23.
When we say that execution of a sale deed by a person,
purporting to convey a property which is not his, as his
property, is not making a false document and therefore not
forgery, we should not be understood as holding that such an act
can never be a criminal offence. If a person sells a property
knowing that it does not belong to him, and thereby defrauds the
person who purchased the property, the person defrauded, that
is, the purchaser, may complain that the vendor committed the
fraudulent act of cheating. But a third party who is not the
purchaser under the deed may not be able to make such complaint.
24.
The term “fraud” is not defined in the Code. The
dictionary definition of “fraud” is “deliberate deception,
treachery or cheating intended to gain advantage”. Section 17 of
the Contract Act, 1872 defines “fraud” with reference to a party
to a contract.
27.
“dishonestly” which is defined in Section 24 as follows:
The term “fraudulently” is mostly used with the term
“24. ‘Dishonestly’.—Whoever does anything with the intention of
causing wrongful gain to one person or wrongful loss to another
person is said to do that thing ‘dishonestly’.”
28
[Ed.: Para 28 corrected vide Official Corrigendum No.
F.3/Ed.B.J./149/2009 dated 6-10-2009.] . To “defraud” or do
something fraudulently is not by itself made an offence under
the Penal Code, but various acts when done fraudulently (or
fraudulently and dishonestly) are made offences. These include:
(i)
Fraudulent removal or concealment of property
(Sections 206, 421 and 424).
(ii) Fraudulent claim to property to prevent seizure
(Section 207).
(iii) Fraudulent suffering or obtaining a decree
(Sections 208 and 210).
(iv) Fraudulent possession/delivery of counterfeit
coin (Sections 239, 240, 242 and 243).
(v)
Fraudulent alteration/diminishing weight of coin
(Sections 246 to 253).
(vi) Fraudulent acts relating to stamps (Sections 255
to 261).
(vii) Fraudulent
false
instrument/weight/measure (Sections 264 to 266).
of
use
(viii) Cheating (Sections 415 to 420).
(ix) Fraudulent prevention of debt being available to
creditors (Section 422).
13
(x)
Fraudulent execution of deed of transfer
containing false statement of consideration
(Section 423).
(xi) Forgery making or executing a false document
(Sections 463 to 471 and 474).
(xii) Fraudulent cancellation/destruction of valuable
security, etc. (Section 477).
(xiii) Fraudulently going through marriage ceremony
(Section 496).
It follows therefore that by merely alleging or showing that a
person acted fraudulently, it cannot be assumed that he
committed an offence punishable under the Code or any other law,
unless that fraudulent act is specified to be an offence under
the Code or other law.
Section 504 of the Penal Code
29.
The allegations in the complaint do not also
make out the ingredients of an offence under Section
504 of the Penal Code. Section 504
refers to intentional insult with intent to provoke breach of
peace.
The allegation of the complainant is that when he enquired with
Accused 1 and 2 about the sale deeds, they asserted that they
will obtain possession of land under the sale deeds and he can
do whatever he wants. The statement attributed to Appellants 1
and 2, it cannot be said to amount to an “insult with intent to
provoke breach of peace”. The statement attributed to the
accused, even if it was true, was merely a statement referring
to the consequence of execution of the sale deeds by the first
appellant in favour of the second appellant.
Conclusion
30.
The averments in the complaint if assumed to be true, do
not make out any offence under Sections 420, 467, 471 and 504 of
the Code, but may technically show the ingredients of offences
of wrongful restraint under Section 341 and causing hurt under
Section 323 IPC.”
28. In <cite>Paramjeet Batra (supra)</cite>, this Court held that :-
“12. While exercising its jurisdiction under Section 482 of the
Code the High Court has to be cautious. This power is to be used
sparingly and only for the purpose of preventing abuse of the
process of any court or otherwise to secure ends of justice.
Whether a complaint discloses a criminal offence or not depends
14
upon the nature of facts alleged therein. Whether essential
ingredients of criminal offence are present or not has to be
judged by the High Court. A complaint disclosing civil
transactions may also have a criminal texture. But the High
Court must see whether a dispute which is essentially of a civil
nature is given a cloak of criminal offence. In such a
situation, if a civil remedy is available and is, in fact,
adopted as has happened in this case, the High Court should not
hesitate to quash the criminal proceedings to prevent abuse of
process of the court.”
29. In <cite>Uma Shankar Gopalika (supra)</cite>, this Court found that the
complaint, in that case, did not disclose any criminal offence at
all, much less any offence under Section 420 or Section 120B IPC.
The case was purely a civil dispute between the parties for which
remedy lay before the civil Court.
30. In <cite>Vesa Holdings Private Limited (supra)</cite>, this Court held :-
“13.
It is true that a given set of facts may make out a civil
wrong as also a criminal offence and only because a civil remedy
may be available to the complainant that itself cannot be a
ground to quash a criminal proceeding. The real test is whether
the allegations in the complaint disclose the criminal offence
of cheating or not. In the present case there is nothing to show
that at the very inception there was any intention on behalf of
the accused persons to cheat which is a condition precedent for
an offence under Section 420 IPC. In our view the complaint does
not disclose any criminal offence at all. The criminal
proceedings should not be encouraged when it is found to be mala
fide or otherwise an abuse of the process of the court. The
superior courts while exercising this power should also strive
to serve the ends of justice. In our opinion, in view of these
facts allowing the police investigation to continue would amount
to an abuse of the process of the court and the High Court
committed an error in refusing to exercise the power under
Section 482 of the Criminal Procedure Code to quash the
proceedings.”
31. In <cite>Robert John D’Souza (supra)</cite>, this Court held :
“12. As far as the offence of cheating is concerned, the same is
defined in Section 415 IPC, for which the punishment is provided
under Section 420 IPC. Section 415 reads as under:
15
“415.
Cheating.—Whoever, by deceiving any person,
fraudulently or dishonestly induces the person so
deceived to deliver any property to any person, or to
consent that any person shall retain any property, or
intentionally induces the person so deceived to do or
omit to do anything which he would not do or omit if he
were not so deceived, and which act or omission causes or
is likely to cause damage or harm to that person in body,
mind, reputation or property, is said to ‘cheat’.
Explanation.—A dishonest concealment of facts is a
deception within the meaning of this section.
Illustrations
***”
From the above language of the section, one of the
essential ingredients for the offence of cheating is
deception, but in the present case, from the contents of
the complaint it nowhere reflects that the complainant
was deceived or he or anyone else was induced to deliver
the property by deception. What was done, was so
reflected in the resolutions, and sale deeds.
13. In <cite>Madhavrao Jiwajirao Scindia v. Sambhajirao
Chandrojirao Angre [(1988) 1 SCC 692 : 1988 SCC (Cri) 234]</cite>
a three-Judge Bench of this Court has laid down the law as
to quashment of proceedings under Section 482 CrPC as
follows: (SCC p. 695, para 7)
“7. The legal position is well settled that when
a prosecution at the initial stage is asked to be
quashed, the test to be applied by the court is
as to whether the uncontroverted allegations as
made prima facie establish the offence. It is
also for the court to take into consideration any
special features which appear in a particular
case to consider whether it is expedient and in
the interest of justice to permit a prosecution
to continue. This is so on the basis that the
court cannot be utilised for any oblique purpose
and where in the opinion of the court chances of
an ultimate conviction are bleak and, therefore,
no useful purpose is likely to be served by
allowing a criminal prosecution to continue, the
court may while taking into consideration the
special facts of a case also quash the proceeding
even though it may be at a preliminary stage.”
15. In <cite>Inder Mohan Goswami v. State of Uttaranchal [(2007)
12 SCC 1 : (2008) 1 SCC (Cri) 259]</cite> , this Court in paras 25
and 46 has observed as under: (SCC pp. 10-11 & 16)
16
“25.
Reference to the following cases would
reveal that the courts have consistently taken the
view that they must use this extraordinary power to
prevent injustice and secure the ends of justice.
The English courts have also used inherent power to
achieve the same objective. It is generally agreed
that the Crown Court has inherent power to protect
its process from abuse. In Connelly v. Director of
Public Prosecutions [1964 AC 1254 : (1964) 2 WLR
1145 : (1964) 2 All ER 401 (HL)] Lord Devlin stated
that where particular criminal proceedings
constitute an abuse of process, the court is
empowered to refuse to allow the indictment to
proceed to trial. <cite>Lord Salmon in Director of
Public Prosecutions v. Humphrys [1977 AC 1 : (1976)
2 WLR 857 : (1976) 2 All ER 497 (HL)]</cite> stressed the
importance of the inherent power when he observed
that it is only if the prosecution amounts to an
abuse of the process of the court and is oppressive
and vexatious that the Judge has the power to
intervene. He further mentioned that the court's
power to prevent such abuse is of great
constitutional importance and should be jealously
preserved.
******
The court must ensure that criminal
46.
prosecution is not used as an instrument of
harassment or for seeking private vendetta or with
an ulterior motive to pressurise the accused. On
analysis of the aforementioned cases, we are of the
opinion that it is neither possible nor desirable
to lay down an inflexible rule that would govern
the exercise of inherent jurisdiction. Inherent
jurisdiction of the High Courts under Section 482
CrPC though wide has to be exercised sparingly,
carefully and with caution and only when it is
justified by the tests specifically laid down in
the statute itself and in the aforementioned cases.
In view of the settled legal position, the impugned
judgment cannot be sustained.”
16. In view of the above discussion and the facts and
circumstances of the case, we are of the view that none of
the offences for which the appellants are summoned, is made
out from the complaint and material on record. We further
find that it is nothing but abuse of process of law on the
part of the complainant to implicate the appellants in a
criminal case after a period of twelve years of execution
of registered sale deeds in question, who is neither party
to the sale deeds nor a member of the Society. Therefore,
we allow the appeal and set aside the orders passed by the
High Court and that of the courts below. Accordingly, the
order passed by the Magistrate summoning the appellants in
the criminal complaint filed by Respondent 1, in respect of
the offences punishable under Sections 406, 409 and 420
IPC, also stands quashed.”
17
32. In <cite>Kapil Agarwal (supra)</cite>, this Court observed that Section 482
is designed to achieve the purpose of ensuring that criminal
proceedings are not permitted to generate into weapons of
harassment.
33. In this case, it appears that criminal proceedings are being
taken recourse to as a weapon of harassment against a purchaser.
It is reiterated at the cost of repetition that the FIR does not
disclose any offence so far as the Appellant is concerned. There
is no whisper of how and in what manner, this Appellant is
involved in any criminal offence and the charge sheet, the
relevant part whereof has been extracted above, is absolutely
vague. There can be no doubt that jurisdiction under Section 482
of the Cr.P.C. should be used sparingly for the purpose of
preventing abuse of the process of any court or otherwise to
secure the ends of justice. Whether a complaint discloses
criminal offence or not depends on the nature of the allegation
and whether the essential ingredients of a criminal offence are
present or not has to be judged by the High Court. There can be no
doubt that a complaint disclosing civil transactions may also have
18
a criminal texture. The High Court has, however, to see whether
the dispute of a civil nature has been given colour of criminal
offence. In such a situation, the High Court should not hesitate
to quash the criminal proceedings as held by this Court in
<cite>Paramjeet Batra (supra)</cite> extracted above.
34. The given set of facts may make out a civil wrong as also a
criminal offence. Only because a civil remedy is available may
not be a ground to quash criminal proceedings. But as observed
above, in this case, no criminal offence has been made out in the
FIR read with the Charge-Sheet so far as this Appellant is
concerned. The other accused Rajan Kumar has died.
35. The appeal is, thus, allowed. The impugned judgment and order
of the High Court is set aside and the proceedings in Crime Case
No.5973/2020 are quashed as against the Appellant.
CRIMINAL APPEAL NO. 933 OF 2021
36. Leave granted.
37. The issues involved in this appeal are identical to the issues
involved in Appeal No. 932 of 2021 disposed of earlier today. We
may add that in this case, the Appellants are only witnesses to
the sale deed and there is not a word anywhere in the FIR about
these witnesses except the vague averment that they acted in
collusion.
38. For the reasons discussed in Criminal Appeal No. 932 of 2021,
this appeal is also allowed and Crime Case No.5973 of 2020 is set
aside so far as these Appellants are concerned.
|
1.
2.
The challenge in the present appeal is to an order passed by the
High Court of Uttarakhand at Nainital on 20.7.2020 whereby the
petition filed by the appellant under Section 482 of the Code of
Criminal Procedure, 19731 for quashing the charge-sheet as well as
the summoning order dated 25.6.2020 was dismissed.
The FIR No. 173 in question was lodged by the respondent No. 2 on
11.12.2019 at 23:24 hours in respect of an incident alleged to have
occurred on 10.12.2019 at 10:00 hours against the appellants and
others. The FIR was lodged for the offences under Sections 452,
1
For short, the ‘Code’
1
504, 506 IPC and Section 3(1)(x) and 3(1)(e) of the Scheduled
Castes and the Scheduled Tribes (Prevention of Atrocities) Act,
19892. The said FIR, when translated, reads as under:
“Respected SHO with respect of registering of FIR, the
complainant is presently resident of Gram New Bajeti
Patti Chandak Tehsil & District Pithoragarh. I am
constructing my house on my Khet No. 6195, 6196 &
6199 but Banshilal, Pyarelal S/o Late Har Lal, Hitesh
Verma S/o Sh. Pyarelal, Pawan Verma S/o Banshilal, Uma
Verma w/o Pyarelal and their Nepali Domestic help Raju
from past 6 months are not allowing the applicant to
work on her fields. All the above persons used to abuse
the applicant her husband and other family members
and use to give death threats and use Caste coloured
abuses. On 10.12.2019 at around 10 am, all these
persons entered illegally in to four walls of her building
and started hurling abuses on myself and my labourers
and gave death threats and used castes’
remarks/abuses and took away the construction
material such as Cement, Iron, Rod, Bricks. The
Applicant is a Scheduled Caste and all of the above
person uses castes’ remarks/abuses (used bad
language) and said that you are persons of bad caste
and that we will not let you live in this mohalla/vicinity.
Respect Sir, the applicant and her family has threat to
her life from such persons. Thus, it is requested that an
FIR may be lodged against such persons and necessary
action may be taken against them…..”
3.
4.
Pursuant to the FIR filed by Respondent No. 2, Police filed a report
disclosing offences under Sections 504, 506 IPC and Section 3(1)(x)
of the Act, cognizance for the same was taken by the Trial Court on
25.6.2020. It is the said order which was challenged along with the
charge-sheet before the High Court, which was unsuccessful.
On the other hand, on the basis of the statement of Mr. Pawan
Verma, an FIR No. 174 at about 23:47 hours was lodged on
2
For short, “the Act”.
2
5.
11.12.2019 in respect of an occurrence which had taken place
allegedly at 9:45 hours on 11.12.2019. A charge-sheet in the said
matter has been submitted against respondent No. 2 and others.
Thereafter, the learned Chief Judicial Magistrate, Pithoragarh had
taken cognizance for the offences under Sections 323 and 354 IPC
against respondent No. 2 and others on 2.7.2020.
The Appellant invoked the jurisdiction of the High Court by way of a
petition under Section 482 of the Code to challenge the charge-
sheet and the order taking cognizance. The Appellant relied upon
<cite>Gerige Pentaiah v. State of Andhra Pradesh & Ors.3</cite> wherein
the allegation was of abusing the complainant in the name of their
caste and this Court quashed the complaint. The attention of the
High Court was drawn to another judgment reported as <cite>Ashabai
Machindra Adhagale v. State of Maharashtra & Ors.4</cite> wherein
this Court refused to quash the FIR on the ground that the caste of
the accused was not mentioned in the first information report. The
High Court found that both the abovementioned cases dealt with
the same issue with regard to applicability of the provisions of the
Act. It was observed by the High Court that the appellant had
categorically admitted that the informant belonged to Scheduled
Caste and that she and her labourers were abused. Therefore, the
provisions of the Act were found to be applicable and accordingly,
after investigation, charge-sheet has been submitted. The High
Court dismissed the petition with the aforesaid findings.
3
4
(2008) 12 SCC 531
(2009) 3 SCC 789
3
6.
7.
8.
The learned counsel for the appellant argued that the disputes
relating to the property are pending before the Civil Court and that,
the present FIR has been filed on patently false grounds by
respondent No. 2 only to harass the appellant and to abuse the
process of law. It is argued that the allegations levelled in the FIR
and the subsequent report submitted by the Police after
investigations does not disclose any offence under the Act.
Furthermore, it is argued that the report neither discloses the caste
of the informant nor the allegations are that they were made in
public view. Also, the offending words are not purported to be made
for the reason that the informant is a person belonging to
Scheduled Caste.
The learned counsel for the State on the contrary, submitted that
during investigations, certain persons have supported the version
of the informant. It is argued on behalf of respondent No. 2 that in
fact the appellant and his family are encroacher on the informant’s
land. Therefore, the appellant was rightly not granted any
indulgence by the High Court.
Against the backdrop of these facts, it is pertinent to refer to the
Statement of Objects and Reasons of enactment of the Act. It is
provided as under:
“Despite various measures to improve the socio-
economic conditions of the Scheduled Castes and the
Scheduled Tribes, they remain vulnerable. They are
denied number of civil rights. They are subjected to
4
indignities,
various offences,
humiliations and
harassment. They have, in several brutal incidents,
been deprived of their life and property. Serious crimes
are committed against them for various historical, social
and economic reasons.
2. Because of the awareness created amongst the
Scheduled Castes and the Scheduled Tribes through
spread of education, etc., they are trying to assert their
rights and this is not being taken very kindly by the
others. When they assert their rights and resist
practices of untouchability against them or demand
statutory minimum wages or refuse to do any bonded
and forced labour, the vested interests try to cow them
down and terrorise them. When the Scheduled Castes
and the Scheduled Tribes try to preserve their self-
respect or honour of their women, they become irritants
for the dominant and the mighty. Occupation and
cultivation of even the Government allotted land by the
Scheduled Castes and the Scheduled Tribes is resented
and more often these people become victims of attacks
by the vested interests. Of late, there has bene an
increase in the disturbing trend of commission of certain
atrocities like making the Scheduled Caste persons eat
inedible substances like human excreta and attacks on
and mass killings of helpless Scheduled Castes and the
Scheduled Tribes and rape of women belonging to the
Scheduled Castes and the Scheduled Tribes. Under the
circumstances, the existing laws like the Protection of
Civil Rights Act, 1955 and the normal provisions of the
Indian Penal Code have been found to be inadequate to
check these crimes. A special Legislation to check and
deter crimes against them committed by non-Scheduled
Castes and non-Scheduled Tribes has, therefore, become
necessary.”
9.
The long title of the Act is to prevent the commission of offences of
atrocities against the members of the Scheduled Castes and the
Scheduled Tribes, to provide for Special Courts and Exclusive
Special Courts for the trial of such offences and for the relief and
rehabilitation of the victims of such offences and for matters
connected therewith or incidental thereto.
5
10.
The Act was enacted to improve the social economic conditions of
the vulnerable sections of the society as they have been subjected
to various offences such as indignities, humiliations and
harassment. They have been deprived of life and property as well.
The object of the Act is thus to punish the violators who inflict
indignities, humiliations and harassment and commit the offence
as defined under Section 3 of the Act. The Act is thus intended to
punish the acts of the upper caste against the vulnerable section of
the society for the reason that they belong to a particular
community.
11.
It may be stated that the charge-sheet filed is for an offence under
Section 3(1)(x) of the Act. The said section stands substituted by
Act No. 1 of 2016 w.e.f. 26.1.2016. The substituted corresponding
provision is Section 3(1)(r) which reads as under:
“3(1)(r) intentionally insults or intimidates with intent to
humiliate a member of a Scheduled Caste or a
Scheduled Tribe in any place within public view;”
12.
13.
The basic ingredients of the offence under Section 3(1)(r) of the Act
can be classified as “1) intentionally insults or intimidates with
intent to humiliate a member of a Scheduled Caste or a Scheduled
Tribe and 2) in any place within public view”.
The offence under Section 3(1)(r) of the Act would indicate the
ingredient of intentional insult and intimidation with an intent to
humiliate a member of a Scheduled Caste or a Scheduled Tribe.
6
All insults or intimidations to a person will not be an offence under
the Act unless such insult or intimidation is on account of victim
belonging to Scheduled Caste or Scheduled Tribe. The object of the
Act is to improve the socio-economic conditions of the Scheduled
Castes and the Scheduled Tribes as they are denied number of civil
rights. Thus, an offence under the Act would be made out when a
member of the vulnerable section of the Society is subjected to
indignities, humiliations and harassment. The assertion of title over
the land by either of the parties is not due to either the indignities,
humiliations or harassment. Every citizen has a right to avail their
remedies in accordance with law. Therefore, if the appellant or his
family members have invoked jurisdiction of the civil court, or that
respondent No.2 has invoked the jurisdiction of the civil court, then
the parties are availing their remedies in accordance with the
procedure established by law. Such action is not for the reason that
respondent No.2 is member of Scheduled Caste.
14.
Another key ingredient of the provision is insult or intimidation in
“any place within public view”. What is to be regarded as “place in
public view” had come up for consideration before this Court in the
judgment reported as <cite>Swaran Singh & Ors. v. State</cite> through
Standing Counsel & Ors.5. The Court had drawn distinction
between the expression “public place” and “in any place within
public view”. It was held that if an offence is committed outside the
building e.g. in a lawn outside a house, and the lawn can be seen
5
(2008) 8 SCC 435
7
by someone from the road or lane outside the boundary wall, then
the lawn would certainly be a place within the public view. On the
contrary, if the remark is made inside a building, but some
members of the public are there (not merely relatives or friends)
then it would not be an offence since it is not in the public view.
The Court held as under:
“28. It has been alleged in the FIR that Vinod Nagar, the
first informant, was insulted by Appellants 2 and 3 (by
calling him a “chamar”) when he stood near the car
which was parked at the gate of the premises. In our
opinion, this was certainly a place within public view,
since the gate of a house is certainly a place within
public view. It could have been a different matter had
the alleged offence been committed inside a
building, and also was not in the public view. However, if
the offence is committed outside the building e.g. in a
lawn outside a house, and the lawn can be seen by
someone from the road or lane outside the boundary
wall, the lawn would certainly be a place within the
public view. Also, even if the remark is made inside a
building, but some members of the public are there (not
merely relatives or friends) then also it would be an
offence since it is in the public view. We must, therefore,
not confuse the expression “place within public view”
with the expression “public place”. A place can be a
private place but yet within the public view. On the
other hand, a public place would ordinarily mean a place
which is owned or leased by the Government or the
municipality (or other local body) or gaon sabha or an
instrumentality of the State, and not by private persons
or private bodies.”
15. As per the FIR, the allegations of abusing the informant were within
the four walls of her building. It is not the case of the informant
that there was any member of the public (not merely relatives or
friends) at the time of the incident in the house. Therefore, the
basic ingredient that the words were uttered “in any place within
8
public view” is not made out. In the list of witnesses appended to
the charge-sheet, certain witnesses are named but it could not be
said that those were the persons present within the four walls of
the building. The offence is alleged to have taken place within the
four walls of the building. Therefore, in view of the judgment of this
Court in Swaran Singh, it cannot be said to be a place within
public view as none was said to be present within the four walls of
the building as per the FIR and/or charge-sheet.
16. There is a dispute about the possession of the land which is the
subject matter of civil dispute between the parties as per
respondent No.2 herself. Due to dispute, appellant and others were
not permitting respondent No.2 to cultivate the land for the last six
months. Since the matter is regarding possession of property
pending before the Civil Court, any dispute arising on account of
possession of the said property would not disclose an offence under
the Act unless the victim is abused, intimated or harassed only for
the reason that she belongs to Scheduled Caste or Scheduled Tribe.
17.
In another judgment reported as <cite>Khuman Singh v. State of
Madhya Pradesh6</cite>, this Court held that in a case for applicability
of Section 3(2)(v) of the Act, the fact that the deceased belonged
to Scheduled Caste would not be enough to inflict enhanced
punishment. This Court held that there was nothing to suggest
that the offence was committed by the appellant only because the
deceased belonged to Scheduled Caste. The Court held as under:
6
2019 SCC OnLine SC 1104
9
“15. As held by the Supreme Court, the offence must be
such so as to attract the offence under Section 3(2)(v) of
the Act. The offence must have been committed against
the person on the ground that such person is a member
of Scheduled Caste and Scheduled Tribe. In the present
case, the fact that the deceased was belonging
to “Khangar”-Scheduled Caste is not disputed. There is
no evidence to show that the offence was committed
only on the ground that the victim was a member of the
Scheduled Caste and therefore, the conviction of the
appellant-accused under Section 3(2)(v) of the
Scheduled Castes and Scheduled Tribes (Prevention of
Atrocities) Act is not sustainable.”
18. Therefore, offence under the Act is not established merely on the
fact that the informant is a member of Scheduled Caste unless
there is an intention to humiliate a member of Scheduled Caste or
Scheduled Tribe for the reason that the victim belongs to such
caste. In the present case, the parties are litigating over
possession of the land. The allegation of hurling of abuses is
against a person who claims title over the property. If such person
happens to be a Scheduled Caste, the offence under Section 3(1)(r)
of the Act is not made out.
19.
This Court in a judgment reported as <cite>Dr. Subhash Kashinath
Mahajan v. State of Maharashtra & Anr.7</cite> issued certain
directions in respect of investigations required to be conducted
under the Act. In a review filed by the Union against the said
judgment, this Court in a judgment reported as <cite>Union of India v.
State of Maharashtra & Ors.8</cite> reviewed the directions issued by
this Court and held that if there is a false and unsubstantiated FIR,
7
8
(2018) 6 SCC 454
(2020) 4 SCC 761
10
the proceedings under Section 482 of the Code can be invoked.
The Court held as under:
“52. There is no presumption that the members of the
Scheduled Castes and Scheduled Tribes may misuse the
provisions of law as a class and it is not resorted to by
the members of the upper castes or the members of the
elite class. For lodging a false report, it cannot be said
that the caste of a person is the cause. It is due to the
human failing and not due to the caste factor. Caste is
not attributable to such an act. On the other hand,
members of the Scheduled Castes and Scheduled Tribes
due to backwardness hardly muster the courage to
lodge even a first information report, much less, a false
one. In case it is found to be false/unsubstantiated, it
may be due to the faulty investigation or for other
various reasons including human failings irrespective of
caste factor. There may be certain cases which may be
false that can be a ground for interference by the Court,
but the law cannot be changed due to such misuse. In
such a situation, it can be taken care of in proceeding
under Section 482 CrPC.”
20.
Later, while examining the constitutionality of the provisions of the
Amending Act (Central Act No. 27 of 2018), this Court in a
judgment reported as <cite>Prathvi Raj Chauhan v. Union of India &
Ors.9</cite> held that proceedings can be quashed under Section 482 of
the Code. It was held as under:
“12. The Court can, in exceptional cases, exercise
power under Section 482 CrPC for quashing the cases to
prevent misuse of provisions on settled parameters, as
already observed while deciding the review petitions.
The legal position is clear, and no argument to the
contrary has been raised.”
21.
In Gerige Pentaiah, one of the arguments raised was non-
disclosure of the caste of the accused but the facts were almost
9
(2020) 4 SCC 727
11
similar as there was civil dispute between parties pending and the
allegation was that the accused has called abuses in the name of
the caste of the victim. The High Court herein has misread the
judgment of this Court in Ashabai Machindra Adhagale as it was
not a case about the caste of the victim but the fact that the
accused was belonging to upper caste was not mentioned in the
FIR. The High Court of Bombay had quashed the proceedings for
the reason that the caste of the accused was not mentioned in the
FIR, therefore, the offence under Section 3(1)(xi) of the Act is not
made out. In an appeal against the decision of the Bombay High
Court, this Court held that this will be the matter of investigation as
to whether the accused either belongs to or does not belong to
Scheduled Caste or Scheduled Tribe. Therefore, the High Court
erred in law to dismiss the quashing petition relying upon later
larger Bench judgment.
The appellant had sought quashing of the charge-sheet on the
ground that the allegation does not make out an offence under the
Act against the appellant merely because respondent No. 2 was a
Scheduled Caste since the property dispute was not on account of
the fact that respondent No. 2 was a Scheduled Caste. The
property disputes between a vulnerable section of the society and
a person of upper caste will not disclose any offence under the Act
unless, the allegations are on account of the victim being a
Scheduled Caste. Still further, the finding that the appellant was
aware of the caste of the informant is wholly inconsequential as the
12
22.
knowledge does not bar, any person to protect his rights by way of
a procedure established by law.
23. This Court in a judgment reported as <cite>Ishwar Pratap Singh & Ors.
v. State of Uttar Pradesh & Anr.10</cite> held that there is no
prohibition under the law for quashing the charge-sheet in part. In
a petition filed under Section 482 of the Code, the High Court is
required to examine as to whether its intervention is required for
prevention of abuse of process of law or otherwise to secure the
ends of justice. The Court held as under:
“9. Having regard to the settled legal position on
external interference in investigation and the specific
facts of this case, we are of the view that the High Court
ought to have exercised its jurisdiction under Section
482 CrPC to secure the ends of justice. There is no
prohibition under law for quashing a charge-sheet in
part. A person may be accused of several offences
under different penal statutes, as in the instant case. He
could be aggrieved of prosecution only on a particular
charge or charges, on any ground available to him in
law. Under Section 482, all that the High Court is
required to examine is whether its intervention is
required for implementing orders under the Criminal
Procedure Code or for prevention of abuse of process, or
otherwise to secure the ends of justice. A charge-sheet
filed at the dictate of somebody other than the police
would amount to abuse of the process of law and hence
the High Court ought to have exercised its inherent
powers under Section 482 to the extent of the abuse.
There is no requirement that the charge-sheet has to be
quashed as a whole and not in part. Accordingly, this
appeal is allowed. The supplementary report filed by the
police, at the direction of the Commission, is quashed.”
24.
In view of the above facts, we find that the charges against the
appellant under Section 3(1)(r) of the Act are not made out.
Consequently, the charge-sheet to that extent is quashed. The
10 (2018) 13 SCC 612
13
appeal is disposed of in the above terms.
25.
The FIR in respect of other offences will be tried by the competent
Court in accordance with law along with the criminal case11, though
separately initiated, for the reason that it relates to interparty
dispute and is in respect of same subject matter of property,
despite of the fact that two different dates of the incident have
been provided by the parties.
|
In the present appeals, the appellants have come to this
Court, being aggrieved by the judgment and order dated 6th
February 2023, passed by the Division Bench of the High
Court of Judicature at Patna vide which the judgment and
1
order 17th February 2020 passed by the learned Single Judge
of the High Court dismissing the writ petitions filed by the
respondents herein has been reversed.
3.
These appeals arise out of the peculiar facts and
circumstances.
4.
The parties are referred to herein as they are referred to
in the original writ petition being CWJC No. 22943 of 2018.
5.
The erstwhile Bihar Intermediate Education Council
(hereinafter referred to as the ‘Council’) had gone for
computerization and in pursuance thereof, the N.I.C.T.
Computering System Private Limited was engaged for
computerization work on contract basis.
6.
The original writ petitioners were initially taken on
service by N.I.C.T. and sent to the said Council for
computerization work. They continued to work for the
Council as employees of the said N.I.C.T. from 1999 to 2005.
7.
Since the writ petitioners were working for a period of
almost six years, the Council requested the Government to
create different posts in the Computer Section of the Council.
Accordingly, 63 posts came to be sanctioned in different
grades. In the meanwhile, the contract between N.I.C.T. and
2
the Council came to be terminated in the year 2005.
However, the respondents, who were earlier employees of the
N.I.C.T. came to be appointed against the sanctioned posts
by the Chairman of the Council.
8.
Subsequently, the Government of Bihar decided to
amalgamate Bihar School Education Examination Board
along with the said Council. Accordingly, the Bihar
Intermediate Education Council (Repeal) Act, 2007
(hereinafter referred to as the “said Act”) was enacted. As per
the said Act, the Government of Bihar constituted a
Committee of three Secretaries to formulate the scheme for
regularization of the services of the employees, who were
working in the said Council.
9.
A scheme came to be framed for regularization under
the Government Resolution dated 12th July 2012. It appears
that, in terms of the said scheme, the services of the writ
petitioners came to be terminated on 18th August 2017.
Being aggrieved thereby, the writ petitioners filed the writ
petition being CWJC No.12242 of 2017 before the High
Court. The learned Single Judge, vide order dated 18th May
2018 partly allowed the writ petition and directed the State
3
Government to take a decision with regard to absorption of
the services of the writ petitioners. Vide order dated 9th
October 2018, the claim of the writ petitioners for
regularization in service came to be rejected by the Education
Department. Being aggrieved thereby, the CWJC No.22943
of 2018 was filed. The learned Single Judge, vide order dated
17th February 2020 dismissed the same. Being aggrieved
thereby, a Letters Patent Appeal being No. 180 of 2021 was
filed before the High Court by the original writ petitioners.
The same was allowed by the Division Bench of the High
Court. Hence, the present appeals.
10. We have heard Mr. Shyam Divan, learned Senior
Counsel appearing on behalf of the appellants and Shri
Dinesh Dwivedi, learned Senior Counsel appearing on behalf
of the respondents-employees (writ petitioners).
11. Shri Shyam Divan submits that the reasoning given by
the Division Bench of the High Court is totally perfunctory.
He submits that the learned Single Judge, by an elaborate
well-reasoned order, found that the writ petitioners were not
entitled for absorption. He further submits that as per the
scheme, four conditions were required to be fulfilled and the
4
writ petitioners did not comply with the said conditions.
Finding this, the learned Single Judge dismissed the writ
petition. He submits that the Division Bench, however, on a
ground that, the report of the Committee was signed by only
one member and not all the three members, has erroneously
reversed the well-reasoned order passed by the learned
Single Judge. He further submits that the personal affidavit
filed by the Additional Chief Secretary of the State
Government dated 6th December 2022 would reveal that the
report of the Committee was accepted by the Cabinet of the
State of Bihar and as such, the reasoning that, the report
was not signed by all the three officers, is totally without
substance.
12. Shri Dinesh Dwivedi, on the contrary, submits that the
writ petitioners have been continuously working from 1999
till 2017. He submits that the writ petitioners have
continuously worked for a period of almost 18 years. He
submits that all the writ petitioners complied with all the
four conditions, as stipulated in the Scheme of 2012. He
further submits that the learned Single Judge, in the first
round of litigation, has also found that the writ petitioners
5
complied with all the four conditions.
13.
In the peculiar facts and circumstances, we are not
inclined to go into the legal issues. At the outset, we may say
that we are not satisfied with the manner in which the
Division Bench has dealt with the matter in the present
litigation. When the Division Bench was considering the
well-reasoned order passed by the learned Single Judge, the
least that was expected of it was to give reasonings as to why
it disagreed with the findings given by the learned Single
Judge.
14.
Insofar as the finding of the Division Bench that the
report was not signed by three members is concerned, it
ought to have taken into consideration that much water had
flown subsequently, inasmuch as the affidavit of the
Additional Chief Secretary dated 6th December 2022 would
have shown that the report of the Committee was accepted
by the State Government, which was fructified in the scheme
dated 12th July 2012, which was published in the gazette
notification. As such, the High Court, at the most could have
examined the correctness of the scheme as notified in the
gazette notification. It appears that the Division Bench
6
found an easy way to deal with the litigation.
15.
In any case, if the directions as issued by the Division
Bench are to be complied with, it will lead to more than one
complications. The Division Bench has granted liberty to the
State Government to again start the process and in the
meantime directed the writ petitioners to be taken back to
work. It has further directed honorary benefits to be
calculated and disbursed for the intervening period.
16. We are of the considered view that if the order, as
passed by the Division Bench, is permitted to continue, it will
give rise to third round of litigation and would not provide
any solace to the employees, who have been fighting for
justice from 2017.
17. The facts as recorded hereinabove would clearly show
that the writ petitioners have been working since 1999
continuously in the said Council, may be initially from 1999
to 2005 they were working as employees of N.I.C.T. However,
undisputedly they were working for the Council.
18. Subsequently, on account of the posts being sanctioned
by the State for the Council and the contract between the
Council and N.I.C.T. being terminated, they were absorbed
7
on the posts so sanctioned by the State Government.
Undisputedly, the appointment was issued by the Chairman
of the said Council, who was the competent authority.
19. On account of subsequent fortuitous development i.e.
the merger of the Council with the Board, the petitioners
became surplus and a scheme was required to be evolved for
their absorption/regularization. Finally, a scheme was
finalized and notified in the Official Gazette on 12th July
2012.
20. Even after the scheme was notified in the year 2012, the
writ petitioners were permitted to continue to work till 2017
and only in the year 2017, their services came to be
terminated.
21.
It could thus be seen that the writ petitioners have been
continuously working since 1999 i.e. much before the
judgment in the case of <cite>Secretary, State of Karnataka
and Ors. v. Uma Devi (3) and Others1</cite>, was delivered on 10th
April 2006.
22. Uprooting the writ petitioners at this stage of life would
have devastating effects on them as well as on their families.
1
(2006) 4 SCC 1
8
23.
In that view of the matter, we find that, in the present
case, taking into consideration the peculiar facts and
circumstances of the case and without this being treated as a
precedent in any manner, a relief needs to be moulded so as
to do complete justice.
24. We are, therefore, inclined to exercise our extraordinary
powers under Article 142 of the Constitution of India and
directed thus:
“The writ petitioners shall be absorbed on the
posts on which they are appointed in the year
2005. They would be permitted to rejoin with
effect from 1st May 2023. Though the writ
petitioners would be entitled to continuity in
service for all the purposes including retiral
benefits, they would not be entitled for any
backwages for the period during which they
were out of employment.”
25. The appeals are disposed of in the above terms. Pending
application(s), if any, shall stand disposed of.
9
|
There was delay of 2659 and 3017 days in preferring the special leave
petitions. Since there was no satisfactory explanation for delay, the petitions were
dismissed on the ground of limitation, which order is now subject matter of the
instant review petition.
We have gone through the grounds raised in the instant review petition and
do not find any error apparent on record to justify interference. This review petition
is, therefore, dismissed.
|
1
These proceedings have been initiated under Article 32 of the Constitution by a
purchaser, seeking directions in respect of a real estate project called “Sushant
Megapolis”, which is being developed by the fifth, sixth and seventh
respondents. The reliefs which have been sought, while invoking the jurisdiction
of this Court under Article 32, as noted above, are in the following terms:
“i.
ii.
…a writ in the nature of Mandamus directing the
Respondent No. 1 & 2 to cancel all the agreements with
respondent no.5,6 & 7 and to ensure that all the projects
in which money has been taken from the buyers their
money is refunded or the same is constructed and
handed over in a reasonable period of time;
…a writ in the nature of Mandamus appointing a court
receiver or form a committee headed by a retired judge
of this Hon'ble Court along with other suitable persons
from different fields to monitor / handle the projects of
Respondent 6 & 7 in which money has been taken from
the buyers;
Iii.
iv.
v.
vi.
2
…a writ of mandamus, or order or direction to conduct a
detailed forensic audit for all the projects launched by
respondent no. 5,6 & 7 in its project under the Flagship
of "SUSHANT MEGAPOLIS";
…a writ in the nature of mandamus or order or direction
to conduct investigation by the CBI-Central Bureau of
Investigation of the large scale fraud and cheating done
by the officers of respondent no. 1 together with officers
and directors of respondent no. 5,6 & 7 as the state
agency has completely failed in its duty to investigate
the matter;
…writ order or direction to direct all investigation
agencies such as Serious Fraud Investigation Office,
Enforcement Directorate and others to investigate the
money siphoned off by the respondent no. 5, 6 & 7.
…any other writ, order or direction in favour of the
Petitioner and such similarly placed persons, as this
Hon'ble court may deem fit and proper in the
circumstances of the case.”
2
3
1
The above extract would indicate that the primary relief which has been sought
is (i) cancellation of all the agreements; (ii) refund of moneys to purchasers; and
in the alternative (iii) ensuring that the construction is carried out and that the
premises are handed over within a reasonable period of time. Incidental to the
above reliefs, the petitioner seeks the constitution of a Committee headed by a
former Judge of this Court together with other persons to monitor and handle the
projects of the developer in the present case. The petitioner also seeks a
forensic audit, an investigation by CBI and by other authorities such as the
Serious Fraud Investigation Office and Enforcement Directorate.
Mr Manoj V George, learned counsel appearing on behalf of the petitioner,
submits that, in another project of the developer which is being implemented at
Lucknow, notice was issued on a petition under Article 32 of the Constitution
(<cite>Pawan Kumar Kushwaha and Ors. v Lucknow Development Authority
and Ors.1) on 20 November 2020 by a two-Judge Bench of this Court</cite> of which
one of us was a member. On the above grounds, it has been submitted that it
Writ Petition (Civil) No 1001 of 2020
3
would be appropriate for this Court to issue notice and tag the writ petition
under Article 32 with the earlier proceedings.
4
On 7 January 2021, a three-Judge Bench of this Court [of which one of us was a
member] has dealt with the maintainability of a petition under Article 32 in
similar circumstances. In <cite>Shelly Lal v Union of India 2</cite>, this Court declined to
entertain the petition. The order of the Court is extracted below:
“
ORDER
1 A proposed construction project at NOIDA which did not
take off from the drawing board has given rise to proceedings
under Article 32 of the Constitution by twenty five purchasers of
commercial premises.
Invoking the jurisdiction under Article 32, the petitioners
2
have sought, inter alia, the following directions:
(i)
A writ, order or direction to the respondents to protect
the interests and investments of customers/buyers in the larger
public interest;
(ii)
A writ, order or direction for the revival of the project
failing which the amounts invested by the petitioners be
returned with interest at the rate of 18% per annum; and
(iii)
A court-monitored probe.
3
Having considered the cause which has been espoused
by the petitioners through their counsel, Mr Shikhil Suri, we are
of the view that the exercise of the jurisdiction under Article 32
of the Constitution would not be warranted in the facts of the
present case.
Essentially, the writ petition requires the Court to step
4
into the construction project and to ensure that it is duly
completed. This would be beyond the remit and competence of
the Court under Article 32. Managing a construction project is
not within the jurisdiction of the court.
5. Several provisions of law confer statutory rights on
purchasers of real estate and invest them with remedies
enforceable at law. These include the Consumer Protection Act
1986, the Real Estate (Regulation and Development) Act 2016
and the Insolvency and Bankruptcy Code 2016. Parliament has
2
Writ Petition (Civil) No 1390 of 2020
4
enacted a statutory regime to protect the rights of purchasers
of real estate and created fora which are entrusted with
decision making authority.
6. A decision of a public authority which is entrusted with a
public duty is amenable to judicial review. But it is quite another
hypothesis to postulate that the decision making authority
should be taken over by the court. The latter is impermissible.
It would be inappropriate for this Court to assume the
jurisdiction to supervise the due completion of a construction
project especially in facts such as those presented in the
present case. This will inevitably draw the court into the day to
day supervision of the project, including financing, permissions
and execution – something which lies beyond the ken of judicial
review and the competence of the court. The court must
confine itself to its core competencies which consist in the
adjudication of disputes amenable to the application of legal
standards. We, consequently, leave it open to the petitioners to
pursue the remedies available in law.
[sic 7]The writ petition is disposed of, subject to the
5
aforesaid liberty.
6
[sic 8] Pending application, if any, stands disposed of.”
5
A definitive view on whether it would be appropriate for the Court to entertain a
petition under Article 32 seeking prayers similar to those sought in the instant
case has been taken in the above terms. The above reasons would ex facie
apply to the facts of the present case. The reliefs which have been extracted
earlier would involve the Court in an adjudicative process in determining
whether (i) all the agreements should be cancelled; (ii) whether money which is
paid by the home buyers should be refunded; or in the alternative (iii) whether
judicial directions are necessary to ensure that the project is constructed and the
premises are handed over within a reasonable time. The writ petition under
Article 32 has been filed by a singular home buyer without seeking to represent
the entire class of home buyers. The petition proceeds on the implicit
assumption that the interest of all the buyers are identical. There is no basis to
make such an assumption. All buyers may not seek a cancellation and refund of
consideration. Apart from this aspect, the petitioner seeks other reliefs in aid of
the primary relief, including the constitution of a Committee presided over by a
5
former Judge of this Court for the purpose of handling the projects of the
developer where moneys have been taken from home buyers.
Following the earlier view which has been taken on 7 January 2021, we are of the
considered opinion that it would be inappropriate to entertain a petition under
Article 32 for more than one reason. There are specific statutory provisions
holding the field, including among them:
(i)
(ii)
The Consumer Protection Act 19863 and its successor legislation;
The Real Estate (Regulation and Development) Act 20164; and
(iii)
The Insolvency and Bankruptcy Code 20165.
Each of these statutory enactments has been made by Parliament with a specific
purpose in view. The 1986 Act as well as the subsequent legislation contain
provisions for representative consumer complaints. One or more home buyers
can consequently seek relief to represent a common grievance for a whole class
of purchasers of real estate. The RERA similarly contains specific provisions and
remedies for dealing with the grievance of purchasers of real estate. The
provisions of the IBC have specifically taken note of the difficulties which are
faced by home buyers by providing for remedies within the fold of the statute.
Entertaining a petition of this nature will involve the Court in virtually carrying
out a day to day supervision of a building project. Appointing a Committee
presided over by a former Judge of this Court would not resolve the problem
because the Court will have nonetheless to supervise the Committee for the
reliefs sought in the petition under Article 32. Insofar as the remedies of a
“1986 Act”
“RERA”
“IBC”
6
7
8
3
4
5
6
criminal investigation are concerned, there is reason for this Court not to
entertain a petition directly under Article 32 in the present set of facts.
Adequate remedies are available in terms of the Code of Criminal Procedure
1973. The statutory procedures which are enunciated have to be invoked.
Adequate provisions have been made in the statute to deal with the filing of a
complaint and for investigation in accordance with law. Judicial intervention is
provided at appropriate stages by competent courts in that regard. In <cite>Devendra
Dwivedi v. Union of India and Ors.6, a three-Judge Bench</cite> of this Court [of
which one of us was a member] held that, determining “whether recourse to the
jurisdiction under Article 32 be entertained in a particular case is a matter for
the calibrated exercise of judicial discretion.” It was further held that this remedy
cannot be used as a ruse to flood this Court with petitions that must be filed
before the competent authorities set up pursuant to the appropriate statutory
framework. In view of the statutory framework, both in terms of civil and
criminal law and procedure, we are of the view that entertaining a petition under
Article 32 would be inappropriate. The Court has no reason to doubt the
genuineness of the grievance which has been espoused by the petitioner.
However, the issue is whether his recourse to Article 32 is the correct remedy
when alternative modalities are available and particularly since the engagement
of the Court in a petition of this nature would involve a supervision which does
not lie within the province of judicial review. Real estate projects across the
country may be facing difficulties. The intervention of the Court cannot be
confined to one or a few selected projects. Judicial time is a precious resource
which needs to be zealously guarded. We have to always be mindful of the
opportunity cost involved in exercising our discretion to admit a petition and to
intervene, in terms of diversion of time and resources away from other matters
where our intervention would be more apposite and necessary. In certain cases
6
Writ Petition (Criminal) 272 of 2020
in the past, this court has intervened on behalf of home buyers. These include :
7
(i)
(ii)
Projects of <cite>Amrapali Group (Bikram Chatterji v Union of India7)</cite>; and
Unitech matter (<cite>Bhupinder Singh v Unitech Ltd8</cite>).
Nothing contained in the present judgment will affect those proceedings or
similar cases which have been monitored. In the present case, there is no reason
to assume that the petitioner represents a class, apart from the other reasons
set out earlier for declining intervention. Hence, on a considered view and for
the reasons we have indicated above, we decline to entertain the petition under
Article 32. However, in terms of the order dated 7 January 2021, we clarify that
this will not come in the way of the petitioner espousing the remedies which are
available to him under the relevant statutory provisions.
9
Subject to the aforesaid clarification, the petition shall stand disposed of.
The petition is disposed of in terms of the signed reportable judgment.
Pending application, if any, stands disposed of.
|
1 On 22 February 2023, the Council of Ministers of the Government of Punjab
recommended the summoning of the Budget Session of the Sixteenth Punjab
Vidhan Sabha on 3 March 2023 under Article 174(1) of the Constitution.
2 On 23 February 2023, the Governor of Punjab addressed a communication to the
Chief Minister of the State. The subject of the letter was:
WP(C) 302/2023
3
4
2
“Cabinet decision on summoning of the house of the legislature of
the State on 3rd March 2023.”
The letter of the Governor refers to a prior exchange of correspondence between
the Governor and the Chief Minister; the Governor having addressed an earlier
communication of 13 February 2023 to which the Chief Minister had responded
through a letter dated 14 February 2023 and a ’tweet’ of the same date.
In his communication of 13 February 2023 to the Chief Minister, the Governor
highlighted his concern on certain specific issues, namely:
(i)
The basis on which Principals were selected for being sent to Singapore for
training; and
(ii)
The appointment of the Chairman of the Punjab Information and
Communication Technology Corporation Limited.
The Governor noted that while the Chief Minister had
5
in his previous
correspondence underscored the mandate with which he has assumed the
office of Chief Minister, in terms of Article 167 of the Constitution, the Chief Minister
is bound to furnish full details and information sought by the Governor.
6
Besides the above two issues, the Governor sought a clarification on the following
matters:
“(a) About two lacs Scheduled Castes students were compelled
3
to discontinue their studies due to non disbursal of scholarship
by the Government. (letter No.Spl.Secy.Gov/2022/95 dated
21-07-2022).
To remove the illegally appointed Vice Chancellor of PAU
vide letter No.5/1/2021-PRB-PAU-2G/6904 dated 23-11-22.
Inspite of my detailed letter dated 14-12-2022 you chose to
ignore all misdeeds of Sh. Kuldeep Singh Chahal, IPS. You
have not only promoted him but also posted him as
Commissioner of Jalandhar and that too the orders being
issued just before 26th January, knowing very well that
Governor is to unfurl the national flag at Jalandhar. I had to
instruct the DGP that concerned officer should maintain
distance during ceremony. On this issue it seems that this
officer was your blue eyed boy and you chose to ignore facts
that were brought to your notice by this office.
(d) Vide letter dated 4-1-2023 I wrote about the presence of Sh.
Naval Aggarwal in meetings of senior officers, where sensitive
and confidential matters of security of the country are
discussed. I have not received any reply till date.
(e) My letters asking for details of advertisements where you were
asked for complete details, is also perhaps lying in cold
storage.”
WP(C) 302/2023
(b)
(c)
7
8
Responding to the above communication, the Chief Minister (@ Bhagwant Mann)
issued a tweet in the following terms:
“Hon’ble Governor Sir, your letter was received through the
media..all the subjects mentioned in the letter are all state
subjects...I and my government are accountable to 3 crore
Punjabis according to the Constitution and not to any Governor
appointed by the Central Government. Consider this as my reply.”
This was followed by another communication of the Chief Minister dated 14
February 2023, in which he stated thus:
WP(C) 302/2023
9
4
“DO No.CMO/CONFI-2023/132
Dated:14.02.2023
Honorable Governor Sahib,
I have received your letter No.Spl.Secy.Gov/2023/34 dated 13th
February, 2023.
All the subjects mentioned in your letter are the subjects of the state
government. In this regard, I would like to clarify that according to
the Indian Constitution, I and my government are answerable to 3
crore Punjabis.
You have asked me, on what basis the principals are selected for
training in Singapore. The people of Punjab want to ask, on what
basis are the Governors in different states elected by the Central
Government in the absence of any specific qualification in the
Indian Constitution?
Please increase the knowledge of Punjabis by telling this.”
In the backdrop of the aforesaid communication by the Chief Minister and his
tweet, the Governor while responding to the request of the Cabinet for
summoning the Budget Session of the Vidhan Sabha from 3 March 2023 stated
that:
“ Since your tweet and
letter, both are not only patently
unconstitutional but extremely derogatory also, therefore, I am
compelled to take legal advice on this issue. Only after getting
legal advice, I will take decision on your request”.
10
The inaction of the Governor in summoning the Assembly for the Budget Session
has led to the invocation of the jurisdiction of this Court under Article 32 of the
Constitution by the State of Punjab.
WP(C) 302/2023
5
11
The Government of Punjab seeks (a) a declaration that the Governor of Punjab is
duty bound to act on the aid and advice of the Council of Ministers in matters of
summoning or proroguing of the Vidhan Sabha of the State of Punjab; (b) a writ
of certiorari quashing the communication of the Governor dated 23 February
2023 stating that a decision on the recommendation of the Council of Ministers
for summoning the Vidhan Sabha for its Budget Session would be taken only after
obtaining legal advice; and (c) a direction to the Principal Secretary to the
Governor of Punjab to facilitate the issuance of appropriate orders for summoning
the Legislative Assembly for its Budget Session at 10 am on 3 March 2023.
12
Since the date for the convening of the Budget Session is barely three days away,
the petition was mentioned for urgent orders, on which it was directed to be listed
at 3.50 pm today.
13 Dr Abhishek Manu Singhvi, senior counsel has appeared on behalf of the
petitioner. Mr Tushar Mehta, Solicitor General of India appears on behalf of the
first respondent. Mr Ajay Pal, counsel has appeared for the second respondent.
14 At the outset, the Solicitor General has placed on the record an order dated 28
February 2023 of the Governor of Punjab. For convenience of reference, the order
is extracted below:
“In exercise of the powers conferred upon me by virtue of
WP(C) 302/2023
6
Clause(1) of Article 174 of the Constitution of India, I, Banwarilal
Purohit, Governor of Punjab, hereby summon the Sixteenth Vidhan
Sabha of the State of Punjab to meet for its Fourth (Budget) Session
at 10.00 am on Friday, the 3rd March 2023 in the Punjab Vidhan
Sabha Hall, Vidhan Bhavan, Chandigarh.”
15
In terms of the above order, the Governor of Punjab has summoned the Sixteenth
Vidhan Sabha of the State of Punjab to meet for its Fourth (Budget) Session at 10
am on 3 March 2023.
16 With the issuance of the above order by the Governor, the reliefs which have
been sought in the petition have been substantially fulfilled. However, before
disposing of the petition, there are certain facets which must be highlighted by
this Court in the exercise of its constitutional duty.
17
The institution of these proceedings has its genesis in the communications issued
by the Governor for the disclosure of information by the State government. Article
167 of the Constitution enunciates the duty of the Chief Minister to furnish
information to the Governor. The provision is in the following terms:
“167. Duties of Chief Minister as respects the furnishing of
information to Governor, etc– It shall be the duty of the Chief
Minister of each State–
(a)
to communicate to the Governor of the State all decisions of
the Council of Ministers relating to the administration of the
affairs of the State and proposals for legislation;
(b)
to furnish such information relating to the administration of the
WP(C) 302/2023
7
affairs of the State and proposals for legislation as the
Governor may call for; and
if the Governor so requires, to submit for the consideration of
the Council of Ministers any matter on which a decision has
been taken by a Minister but which has not been considered
by the Council.”
(c)
18
19
The Chief Minister has the duty to communicate to the Governor all decisions of
the Council of Ministers relating to the administration of the affairs of the State and
proposals for legislation. Going beyond the duty to communicate, the Chief
Minister has a duty to furnish such information relating to the administration of the
affairs of the State and proposals for legislation as the Governor may require.
Moreover, if the Governor so requires, the Chief Minister is duty bound to submit
for consideration to the Council of Ministers any matter on which the decision is
taken by a Minister which has not been considered by the Council of Ministers.
The power of the Governor to seek information under Article 167 must be read
holistically with reference to their duties as constitutional head under the
Constitution. The information that the Governor seeks under Article 167 would
enable them to effectively discharge their duties. To illustrate, the Governor has
the power to direct reconsideration of bills that are passed in the assembly. For
the Governor to make this decision, it is necessary that all the relevant information
that would aid them in making the said decision must be made available.
Similarly, the governor requires all relevant information to identify if a decision has
been taken by a Minister individually without the consideration of the council. The
WP(C) 302/2023
8
Governor might be unable to discharge their duty under Article 167(c) if the Chief
Minister does not discharge their duty under Article 167(a) and Article 167 (b) by
providing the Governor with relevant information as requested. Thus, the Chief
Minister is required to discharge their duties under Article 167 to enable the
Governor to effectively discharge their duties stipulated in the Constitution. The
framers of the Constitution were prescient in incorporating the above provisions.
They ensure that while on the one hand the administration of the State is entrusted
to a democratically elected Chief Minister who heads the Council of Ministers,
which in turn, owes collective responsibility to the state legislature, the Governor
as a constitutional authority appointed by the President is entrusted with the duty
to ensure a just, fair, and honest administration. In this context, it is important to
refer to the speech of Dr. BR Ambedkar on Article 167 (draft Article 147) in the
Constitution Assembly:1
“A distinction has been made between the functions of the
Governor and the duties which the Governor has to perform. My
submission is that although the Governor has no functions still, even
the constitutional Governor, that he is, has certain duties to
perform. His duties, according to me, may be classified in two parts.
One is, that he has to retain the Ministry in office. Because the
Ministry is to hold office during his pleasure, he has to see whether
and when he should exercise his pleasure against the Ministry. The
second duty which the Governor has, and must have, is to advise
the Ministry, to warn the Ministry, to suggest to the Ministry an
alternative and to ask for a reconsideration. I do not think that
anybody in this House will question the fact that the Governor
should have this duty cast upon him; otherwise, he would be an
absolutely unnecessary functionary: no good at all: He is the
representative not of a party, he is representative of the people as
1 Dr BR Ambedkar in response to Biswanath Das, Constituent Assembly of India Debates (Proceedings)- Volume
VIII (2 June 1949)
WP(C) 302/2023
20
9
a whole of the State. It is in the name of the people that he carries
on the administration. He must see that the administration is carried
on a level which may be regarded as good, efficient, honest
administration. Therefore, having regard to these two duties which
the Governor has namely, to see that the administration is kept
pure, without corruption,
impartial, and that the proposals
enunciated by the Ministry are not contrary to the wishes of the
people, and therefore to advise them, warn them and ask them to
reconsider-I ask the House, how is the Governor in a position to
carry out his duties unless he has before him certain information? I
submit that he cannot discharge the constitutional functions of a
Governor which I have just referred to unless he is in a position to
obtain the information.”
The power to summon, prorogue and dissolve the legislative assembly is enshrined
in Article 174 of the Constitution which is extracted below:
“174. Sessions of the State Legislature, prorogation and dissolution.–
(1) The Governor shall form time to time summon the House or each
House of the Legislature of the State to meet at such time and
place as he thinks fit, but six months shall not intervene between its
last sitting in one session and the date appointed for its first sitting in
the next session.
(2) The Governor may from time to time–
(a) prorogue the House or either House;
(b) dissolve the Legislative Assembly.”
21
The decision of a seven-Judge Constitution Bench in <cite>Shamsher Singh vs State of
Punjab2</cite> has laid down that the Governor is a constitutional or formal Head of the
State and exercises powers and functions on the aid and advice of the Council
2 (1974) 2 SCC 831
WP(C) 302/2023
10
of Ministers. The relevant extracts from the decision make the position of law clear:
“28. Under the Cabinet system of Government as embodied in our
Constitution the Governor is the constitutional or formal head of the
State and he exercises all his powers and functions conferred on
him by or under the Constitution on the aid and advice of his
Council of Ministers save in spheres where the Governor is required
by or under the Constitution to exercise his functions in his
discretion.
32. It is a fundamental principle of English Constitutional law that
Ministers must accept responsibility for every executive act. In
England the Sovereign never acts on his own responsibility. The
power of the Sovereign is conditioned by the practical rule that the
Crown must find advisers to bear responsibility for his action. Those
advisers must have the confidence of the House of Commons. This
rule of English Constitutional law is incorporated in our Constitution.
The Indian Constitution envisages a Parliamentary and responsible
form of Government at the Centre and in the States and not a
Presidential form of Government. The powers of the Governor as the
constitutional head are not different.
142. The extraordinary powers of
legislation by ordinances,
dispensing with enquiries against public servants before dismissal,
declaration of emergency and imposition of President's rule by
proclamation upon States, are vast powers of profound
the power of summoning and
significance.
proroguing and dissolving the House of the People and returning
Bills passed by the Parliament belongs to him. If only we expand
the ratio of Sardari Lal and Jayantilal to every function which the
various articles of the Constitution confer on the President or the
Governor, Parliamentary democracy will become a dope and
national elections a numerical exercise in expensive futility. We will
be compelled to hold that there are two parallel authorities
exercising powers of governance of the country, as in the dyarchy
days, except that Whitehall is substituted by Rashtrapati Bhavan
and Raj Bhavan. The Cabinet will shrink at Union and State levels in
political and administrative authority and, having solemn regard to
the gamut of his powers and responsibilities, the Head of State will
be reincarnation of Her Majesty's Secretary of State for India,
untroubled by even the British Parliament — a little taller in power
than the American President. Such a distortion, by interpretation, it
Indeed, even
WP(C) 302/2023
11
appears to us, would virtually amount to a subversion of the
structure, substance and vitality of our Republic, particularly when
we remember that Governors are but appointed functionaries and
the President himself is elected on a limited indirect basis. As we
have already indicated, the overwhelming catena of authorities of
this Court have established over the decades that the cabinet form
of Government and the Parliamentary system have been adopted
in India and the contrary concept must be rejected as incredibly
allergic to our political genius, constitutional creed and culture.”
(emphasis supplied)
22
This position was reiterated by a Constitution Bench in <cite>Nabam Rebia v. Dy.
Speaker, Arunachal Pradesh Legislative Assembly3</cite>. In view of the constitutional
provision and the judgments of this Court, there can be no manner of doubt that
the authority which is entrusted to the Governor to summon the House or each
House of the Legislature of the State is to be exercised on the aid and advice of
the Council of Minsters. This is not a constitutional arena in which the Governor is
entitled to exercise his own discretion. In the present case, the Governor was not
summoning the House for the first time following a general election, but was
advised by the Council of Ministers to convene the Budget Session, at the behest
of a government which has been duly elected in the general election. Plainly, the
Governor was duty bound to do so.
23 While responding to the request by the Council of Ministers for summoning the
House, the communication of the Governor dated 23 February 2023 referred to
the Cabinet decision. However, the Governor also referred to the tweet of the
3 (2016) 8 SCC 1
WP(C) 302/2023
12
Chief Minister and to his letter dated 14 February 2023 and then proceeded to
state that since both the tweet and the letter were “patently unconstitutional”
and “extremely derogatory”, he was compelled to take legal advice “on this
issue” and that he would decide on the request thereafter. There was no occasion
to seek legal advice on whether or not the Budget Session of the Legislative
Assembly should be convened. The Governor was plainly bound by the advice
tendered to him by the Council of Ministers.
24 Having said this, it would also be necessary to underscore that both the Chief
Minister and the Governor are constitutional functionaries who have specified
roles and obligations earmarked by the Constitution. The Governor has a right to
seek information from the Chief Minister in terms of Article 167(b) on matters
relating to the administration of the affairs of the State and proposals for
legislation. Once such information is sought, the Chief Minister is duty bound to
furnish it. The tone and tenor of the tweet and the letter by the Chief Minister leave
much to be desired. Not furnishing the information which was sought by the
Governor would be plainly in dereliction of the constitutional duty which is
imposed on the Chief Minister in terms of Article 167(b). Yet on the other hand,
WP(C) 302/2023
13
the dereliction of the Chief Minister to do so would not furnish a justification for the
Governor not to comply with the constitutional obligation to summon the House
for its Budget Session in terms of the advice which was tendered by the Council
of Ministers. It was after the institution of the petition under Article 32 that the
Assembly was summoned.
25
The genesis of the controversy has required the intervention of this Court at two
distinct levels: first, to ensure that the constitutional duty of the Governor to act on
the aid and advice of the Council of Ministers to summon the Legislative Assembly
is fulfilled without delay or demur; and second, to ensure that the obligation of
the Chief Minister to furnish information to the Governor in terms of Article 167(b)
of the Constitution is fulfilled. There are two equally important aspects for the
functioning of a parliamentary democracy. First, the failure of a constitutional
authority to fulfill its obligation under a distinct provision of the Constitution does
not furnish a justification to another to decline to fulfill its own constitutional
obligation. Second, while this Court is cognizant of the importance of free speech
and expression and the fundamental value embodied in Article 19(1)(a), it
becomes necessary to emphasize that constitutional discourse has to be
conducted with a sense of decorum and mature statesmanship.
26 Political differences in a democratic polity have to be worked upon and sorted
out with a sense of sobriety and maturity. The dialogue between constitutional
functionaries cannot degenerate into a race to the bottom. Unless these
principles were to be borne in mind, the realization of constitutional values may
WP(C) 302/2023
14
be placed in jeopardy. Such a situation emerged before this Court, leading to the
institution of a petition under Article 32 of the Constitution for a direction to the
Governor to summon the Legislative Assembly. It is inconceivable that the Budget
Session of the Legislative Assembly would not be convened. We can only hope
that mature constitutional statesmanship will ensure that such instances do not
occur in the future as much as we reiterate our expectation that constitutional
functionaries must be cognizant of the public trust in the offices which they
occupy. The public trust which is entrusted to them is intended to sub-serve the
cause of our citizens and to ensure that the affairs of the nation are conducted
with a sense of equanimity so as to accomplish the objects of the Preamble to the
Constitution.
27 With these observations, the Petition shall stand disposed of.
28 Pending applications, if any, stand disposed of.
|
1.
2.
The appellants approached the High Court seeking
freedom fighters' pension. The High Court declined
the prayer of the appellants. Hence, these appeals.
A few similarly situated persons had approached
3.
this Court leading to the order dated 25th November,
2013 in Civil Appeal Nos. 10624-10636 of 2013. The
Judgment reads as follows :-
“1. Leave granted.
2. The appellants, in this batch of
appeals, are calling in question the
judgment and order passed by the High
Court of Judicature at Bombay, Bench
at Aurangabad in Writ Petition No.
2106/2008, WP No. 2107/2008, WP No.
2112/2008, WP No. 2123/2008, WP No.
2144/2008, WP No. 2146/2008, WP No.
2147/2008, WP No. 2148/2008, WP No.
2152/2008, WP No. 2153/2008, WP No.
2156/2008, WP No. 2164/2008, WP No.
2165/2008 dated 14.10.2011. By the
impugned judgment and order, the High
Court has affirmed the orders passed
3
by the State Government cancelling
the pensionary benefits granted to
the appellants, presumably by relying
on the report of Justice Palkar
Commission.
3. In the appeals so filed, it is
specifically averred by the
appellants that they are all senior
citizens. They also submit that at
this ripe age, if they are deprived
of the pensionary benefits, they
would not be in a position to eke out
of their livelihood. They also submit
that the freedom fighters pensionary
benefit so granted by the State
Government ought not to have been
withdrawn by passing the order/(s) on
subsequent dates.
4. Per contra, the learned counsel
appearing for the State of
Maharashtra submits that since the
appellants had obtained the freedom
fighters pension by producing forged
documents, they are not entitled for
grant of any pensionary benefits and,
therefore, the State Government was
justified in withdrawing the
pensionary benefits so granted to
them earlier.
5. We have heard the learned counsel
appearing for the parties to the lis.
4
6. In our opinion, keeping in view
the age of the appellants and also
keeping in view the fact that at this
old age, if small benefit that was
already granted to them is withdrawn,
it may be difficult for them to
sustain themselves. In that view of
the matter, in the peculiar facts and
circumstances of the case, the
impugned judgment and order passed by
the High Court requires to be set
aside.
7. Accordingly, we allow these
appeals and set aside the impugned
judgment and order passed by the High
Court. We further direct that the
pensionary benefits granted by the
State Government will enure only to
the benefit of the appellants and not
to their legal heirs/representatives.
After the bereavement of the
appellant(s), the pensionary benefit
so granted by the State Government
will come to an end.
8. Since we have decided these
appeals purely on facts and
circumstances of each case, we
clarify that this Judgment shall not
be treated as a precedent in any
other case.
5
9. We quantify the arrears from the
date of cancellation of the
pensionary benefits till date at
Rs.3,000/- each payable to the
appellants within three months from
the date of receipt of a copy of this
Court's order. No order as to costs.”
4.
Having gone through the pleadings, we are of the
view that in the peculiar facts of the case, in the
interest of justice and for doing complete justice, a
similar treatment is to be meted out to the
appellants herein also. Accordingly, these appeals
are disposed of in terms of the order as extracted
above, making it further clear that the same may not
be treated as a precedent.
The civil appeals are disposed of in terms of the signed
non-reportable Judgment.
Pending Interlocutory Applications, if any, stand disposed of.
|
The question involved in the present matter is whether possession of
land has been taken after passing of award on 21.7.2003 in land
acquisition proceedings initiated vide Notification dated 24.8.2000 issued
under Section 4 of the Land Acquisition Act, 1894 for acquisition of land
measuring 189.93 acres for the development and utilisation of land for
residential, commercial and institutional area in Sector 57 of Gurgaon inter
alia at village Tigra. On the date of passing of award, according to
appellants, possession had been obtained and handed over to the
representative of Haryana Urban Development Authority (for short, ‘HUDA’)
vide Rapat No.583. The compensation has admittedly been collected by the
respondent vide cheque no.191045 dated 31.7.2003.
3.
The respondent herein filed a writ petition in the year 2015 in the
2
High Court of Punjab & Haryana at Chandigarh. He has set up the case
that he owned the land measuring two Kanal. The same was acquired by
the issuance of Notification under Section 4 of the Land Acquisition Act,
1894 and the award was also passed. Compensation has been obtained.
However, the acquisition has lapsed as per provisions contained in Section
24(2) of the Right of Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, ‘the Act of
2013’), as the possession has not been taken. He has constructed
residential houses and shops.
4.
The High Court by the impugned judgment and order has held that
the two constructed rooms existed admeasuring 15’x12’ and 18’x12’ with
boundary wall in Khasra No.16//23/1/2(20). Though the State has
claimed that the possession had been taken, there is no proof that the
respondent was physically dispossessed. The Act of 2013 has come into
force on 1.1.2014. The State may, if needed, acquire the property again for
a public purpose. The development has not been undertaken so far.
Owners of such land/property are entitled to compensation under the Act of
2013. Direction has been issued to Land Acquisition Collector, Gurgaon to
determine the total amount to be refunded by the respondent within one
month. Aggrieved by the same, the appeal has been preferred by the State
of Haryana.
5.
Dr. Monika Gosain, learned counsel appearing for the appellants has
submitted that possession had been taken. She has attracted the attention
3
of this Court to the Rapat dated 21.7.2003. She has further submitted that
in several decisions, this Court has held that mode of taking possession is
by way of drawing of panchnama on the spot. Admittedly, compensation
has been paid to the respondent in the year 2003 itself. The acquisition has
attained finality and encroachment made thereafter is not going to help the
respondent.
6. Mr. Siddharth Mittal learned counsel appearing for the respondent
has submitted that there were two rooms in existence, of which possession
has not been taken following the law. Paper possession cannot tantamount
to taking physical possession. The physical possession remains with the
respondent. As such as mandated by the provisions contained in Section
24(2) of the Act of 2013, the acquisition has lapsed. He has further
submitted that ‘the Policy for Return of Unutilized Land’ has been framed
under the provisions of Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement (Haryana Amendment)
Act, 2017 and notified on 14.9.2018, by the State Government. He has also
submitted that on two sides of land in question in the case of similarly
situated landowners, the State Government has already passed release
orders on 30.10.2006 and 21.2.2014. The respondent cannot be
discriminated with. He has also attracted the attention of this Court to the
photographs (Annexure R6) and the site plan (Annexure R5).
7.
The first question to be examined is whether possession had been
taken over by the State Government and handed over to HUDA. Rapat of
4
possession dated 21.7.2003, clearly shows that possession of total 172.52
acres has been taken over in the presence of landowners and interested
persons by offering compensation. The award was also announced,
possession was taken by the Land Acquisition Collector, Urban Estates,
Gurgaon by walking around the land and marking land using Kassi. Shri
Om Prakash Kanungo, Representative of Estate Officer, Gurgaon was
handed over the possession of the same and the possession was handed
over to HUDA. A watchman was also posted to look after the land and the
announcement was also made of taking possession by beating drums. The
panchnama was signed by the Land Acquisition Collector, Watchman, and
the concerned Patwari.
8.
The drawing of panchnama of taking over of possession is not
disputed. However, it was submitted that since there were two rooms,
possession could not have been taken over in the manner in which it is
stated in the aforesaid panchnama.
9.
It is a settled proposition of law that when the State acquires the large
tract of land and draws the panchnama of taking possession, the same is
enough for taking possession of the land. In the instant case not only the
panchnama had been drawn, State has taken the possession by marking
the land and a watchman was also posted to look after the land.
10.
In <cite>Balwant Narayan Bhagde v. M.D. Bhagwat, (1976) 1 SCC 700</cite>, it
has been opined that the act of Tahsildar in going to the spot and
inspecting the land was sufficient to constitute a taking of possession.
5
Therefore, it was not open to withdraw the land acquired under Section
48(1) of the Act. The Court observed:
“28. We agree with the conclusion reached by our brother Untwalia,
J., as also with the reasoning on which the conclusion is based. But
we are writing a separate judgment as we feel that the discussion in
the judgment of our learned Brother Untwalia, J., in regard to
delivery of ‘symbolical’ and ‘actual’ possession under Rules 35, 36,
95 and 96 of Order 21of the Code of Civil Procedure, is not
necessary for the disposal of the present appeals and we do not wish
to subscribe to what has been said by our learned Brother Untwalia,
J., in that connection, nor do we wish to express our assent with the
discussion of the various authorities made by him in his judgment.
We think it is enough to state that when the Government proceeds
to take possession of the land acquired by it under the Land
Acquisition Act, 1894, it must take actual possession of the land
since all interests in the land are sought to be acquired by it. There
can be no question of taking ‘symbolical’ possession in the sense
understood by judicial decisions under the Code of Civil Procedure.
Nor would possession merely on paper be enough. What the Act
contemplates as a necessary condition of vesting of the land in the
Government is the taking of actual possession of the land. How
such possession may be taken would depend on the nature of the
land. Such possession would have to be taken as the nature of the
land admits of. There can be no hard and fast rule laying down what
act would be sufficient to constitute a taking of possession of land.
We should not, therefore, be taken as laying down an absolute and
inviolable rule that merely going on the spot and making a
declaration by the beat of drum or otherwise would be sufficient to
constitute a taking of possession of land in every case. But here, in
our opinion, since the land was lying fallow and there was no crop
on it at the material time, the act of the Tehsildar in going on the
spot and inspecting the land for the purpose of determining what
part was waste and arable and should, therefore, be taken
possession of and determining its extent, was sufficient to constitute
taking of possession. It appears that the appellant was not present
when this was done by the Tehsildar, but the presence of the owner
or the occupant of the land is not necessary to effectuate the taking
of possession. It is also not strictly necessary as a matter of legal
requirement that notice should be given to the owner or the
occupant of the land that possession would be taken at a particular
time, though it may be desirable where possible, to give such notice
before possession is taken by the authorities, as that would
eliminate the possibility of any fraudulent or collusive transaction of
taking of mere paper possession, without the occupant or the owner
ever coming to know of it.”
6
11.
In <cite>Tamil Nadu Housing Board v. A. Viswam (Dead) by LRs., (1996) 8
SCC 259</cite>, this Court has held that recording of the memorandum by the
Land Acquisition Officer (LAO) in the presence of witnesses signed by them
would constitute taking possession of the land. The Court observed:
“9. It is settled law by series of judgments of this Court that one of
the accepted modes of taking possession of the acquired land is
recording of a memorandum or Panchnama by the LAO in the
presence of witnesses signed by him/them and that would
constitute taking possession of the land as it would be impossible to
take physical possession of the acquired land. It is common
knowledge that in some cases the owner/interested person may not
cooperate in taking possession of the land.”
12.
In <cite>Banda Development Authority, Banda v. Moti Lal Agarwal, (2011) 5
SCC 394</cite>, this Court has held that if acquisition is of a large tract of land, it
is not possible to take possession of each and every parcel of the land and it
would be sufficient that symbolic possession is taken by preparing an
appropriate document in the presence of independent witnesses and
obtaining their signatures. The Court observed:
“37. The principles which can be culled out from the abovenoted
judgments are:
(i) No hardandfast rule can be laid down as to what act would
constitute taking of possession of the acquired land.
(ii) If the acquired land is vacant, the act of the State authority
concerned to go to the spot and prepare a panchnama will
ordinarily be treated as sufficient to constitute taking of
possession.
(iii) If crop is standing on the acquired land or
building/structure exists, mere going on the spot by the
authority concerned will, by itself, be not sufficient for taking
possession. Ordinarily, in such cases, the authority concerned
will have to give notice to the occupier of the
building/structure or the person who has cultivated the land
7
and take possession in the presence of independent witnesses
and get their signatures on the panchnama. Of course, refusal
of the owner of the land or building/structure may not lead to
an inference that the possession of the acquired land has not
been taken.
(iv) If the acquisition is of a large tract of land, it may not be
possible for the acquiring/designated authority to take physical
possession of each and every parcel of the land and it will be
sufficient that symbolic possession is taken by preparing
appropriate document in the presence of independent
witnesses and getting their signatures on such document.
(v) If beneficiary of the acquisition is an agency/instrumentality
of the State and 80% of the total compensation is deposited in
terms of Section 17(3A) and substantial portion of the
acquired land has been utilised in furtherance of the particular
public purpose, then the court may reasonably presume that
possession of the acquired land has been taken.”
13. The question also came for consideration in <cite>State of T.N. v.
Mahalakshmi Ammal, (1996) 7 SCC 269</cite>, in which this Court observed that
possession would be taken by drawing memorandum. The Court observed:
“9. It is wellsettled law that publication of the declaration under
Section 6 gives conclusiveness to public purpose. Award was made
on 2691986 and for Survey No. 2/11 award was made on 318
1990. Possession having already been undertaken on 24111981, it
stands vested in the State under Section 16 of the Act free from all
encumbrances and thereby the Government acquired absolute title
to the land. The initial award having been made within two years
under Section 11 of the Act, the fact that subsequent award was
made on 3181990 does not render the initial award invalid. It is
also to be seen that there is stay of dispossession. Once there is stay
of dispossession, all further proceedings necessarily could not be
proceeded with as laid down by this Court. Therefore, the limitation
also does not stand as an impediment as provided in the proviso to
Section 11A of the Act. Equally, even if there is an irregularity in
service of notice under Sections 9 and 10, it would be a curable
irregularity and on account thereof, award made under Section 11
does not become invalid. Award is only an offer on behalf of the
State. If compensation was accepted without protest, it binds such
party but subject to Section 28A. Possession of the acquired land
would be taken only by way of a memorandum, Panchnama, which
is a legally accepted norm. It would not be possible to take any
8
physical possession. Therefore, subsequent continuation, if any,
had by the erstwhile owner is only illegal or unlawful possession
which does not bind the Government nor vested under Section 16
divested in the illegal occupant. Considered from this perspective,
we hold that the High Court was not justified in interfering with the
award.”
14.
In <cite>Balmokand Khatri Educational and Industrial Trust, Amritsar v.
State of Punjab, (1996) 4 SCC 212</cite>, it has been observed that the normal
rule of taking possession is drafting the panchnama in the presence of
panchas. This Court observed:
“4. It is seen that the entire gamut of the acquisition proceedings
stood completed by 1741976 by which date possession of the land
had been taken. No doubt, Shri Parekh has contended that the
appellant still retained their possession. It is now wellsettled legal
position that it is difficult to take physical possession of the land
under compulsory acquisition. The normal mode of taking
possession is drafting the panchnama in the presence of panchas
and taking possession and giving delivery to the beneficiaries is the
accepted mode of taking possession of the land. Subsequent thereto,
the retention of possession would tantamount only to illegal or
unlawful possession.
5. Under these circumstances, merely because the appellant
retained possession of the acquired land, the acquisition cannot be
said to be bad in law. It is then contended by Shri Parekh that the
appellantInstitution is running an educational institution and
intends to establish a public school and that since other land was
available, the Government would have acquired some other land
leaving the acquired land for the appellant. In the counteraffidavit
filed in the High Court, it was stated that apart from the acquired
land, the appellant also owned 482 canals 19 marlas of land.
Thereby, it is seen that the appellant is not disabled to proceed with
the continuation of the educational institution which it seeks to
establish. It is then contended that an opportunity may be given to
the appellant to make a representation to the State Government. We
find that it is not necessary for us to give any such liberty since
acquisition process has already been completed.”
9
15.
In <cite>P.K. Kalburqi v. State of Karnataka, (2005) 12 SCC 489</cite>, this Court
held that if the land was vacant and unoccupied, taking symbolical
possession would be enough.
16.
In <cite>Sita Ram Bhandar Society, New Delhi v. Lieutenant Governor,
Government of NCT, Delhi, (2009) 10 SCC 501</cite>, it was observed that mode of
taking possession is by way of drawing of panchnama. Similar view has
been reiterated in <cite>Omprakash Verma v. State of Andhra Pradesh, (2010) 13
SCC 158</cite>.
17.
In <cite>M. Venkatesh v. Commissioner, Bangalore Development Authority,
(2015) 17 SCC 1</cite>, again it was reiterated that mode of taking possession is
by drawing a panchnama. It is further held that the mode of taking
possession adopted by BDA was permissible.
18.
In <cite>State of Madhya Pradesh v. Narmada Bachao Andolan, (2011) 7
SCC 639</cite>, this Court held that it would depend upon the facts that of the
individual case whether possession has been taken or not. We are of the
considered opinion that possession has been taken as is apparent from the
memorandum dated 21.7.2003 placed on record.
19. Learned counsel for the respondent has submitted that there were two
rooms in existence admeasuring 15’x12’ and 18’x12’ with boundary wall.
He has taken us to the site plan, in which, now 10 shops are shown,
besides that there are three rooms, one kitchen, and verandah. Thus, most
of these structures have been erected subsequently. Even if there were two
outhouses in existence at the time of issuance of Notification under Section
10
4 of the Land Acquisition Act, 1894 in the shape of rooms admeasuring
15'x12' and 18'x12' and boundary wall, obviously it was not meant for the
residential purposes, but meant for agricultural purposes. It appears that
once possession had been taken after making a trespass upon the land,
construction has been raised. Most of these structures were not in
existence as per the finding recorded by the High Court. Thus, the site plan
rather than espousing the cause of the respondent, defeats the same. Once
possession had been taken and compensation has been admittedly collected
by the respondent, it was not open for him to apply for denotification of
land under Section 48 of the Land Acquisition Act, 1894 or for its release.
20. The submission raised that land of two other incumbents has been
released in 2006 and 2014, is of no avail. There is no concept of negative
equality and the respondent cannot be permitted to take advantage of his
wrong. The land had been acquired and thereafter respondent has
trespassed upon the land and has raised construction, in completely illegal
manner. He is not entitled to protect it. Based on such encroachment, he
is not entitled to release of the land.
21.
It cannot be said that land acquired is unutilised land, as a matter of
fact, lot of development has taken place as there is encroachment made, as
such, land could not have been utilised and by making unwarranted
interference by the High Court, the acquisition was ordered to be quashed.
We are of the opinion that the prayer made by the respondent to apply for
releasing the land as per the Notification dated 14.9.2018, cannot be
11
entertained. The respondent cannot be given such a right as he has not
come to the Court with clean hands. He is an encroacher and cannot be
said to be entitled to any indulgence.
22.
It is apparent that acquisition has attained finality, the award was
passed, compensation was collected and possession was taken long back in
the year 2003. Resultantly, we find the impugned judgment and order to be
unsustainable, the same is hereby set aside. The appeal is allowed. No
order as to costs.
|
1
This appeal is directed against the order dated 22.5.2012 in
S.B. Criminal Miscellaneous Petition No.1679 of 2012, whereby
the High Court of Rajasthan (Jaipur Bench) has allowed the
criminal miscellaneous petition filed under Section 482 of Code of
Criminal Procedure, 1908 and has set aside the order dated
2
24.04.2012 passed by Additional Sessions Judge (Fast – Track),
Sikar.
2.
A charge sheet No.22 of 2009 dated 20.3.2009 was
presented under Sections 302, 201, 342, 120-B IPC against
respondent Nos.1 and 2 and three others. Charges have been
framed under the aforesaid Sections against the accused persons.
Statements of 28 witnesses have been recorded in the trial. The
statements of Sawarmal and Chandri have been recorded as PW4
and PW5 respectively. Thereafter, both moved applications before
the Sessions Judge under Section 311 of Cr.P.C. for re-recording
their statements on the ground that the previous statements
were made under the influence of the police. In the applications,
the witnesses have stated that respondent Nos.1 and 2 had no
role in the incident.
3.
The Sessions Judge by the order dated 24.4.2012, dismissed
the applications observing that the 28 witnesses had already
been examined in the case so far. The witnesses were also
cross-examined at length and it cannot be said that they were in
any kind of pressure and that the applications were filed with a
3
view to favour the accused persons. Prahlad Jat and Mahavir, the
two accused persons, moved the petition before the High Court
for quashing the said order and the High Court has allowed the
applications of PW4 and PW5.
4.
Learned counsel for the appellant, urged that PW4 and PW5
were examined in the Court on different dates in the months of
November and December 2010 and in March 2011. Out of total
35 witnesses, 28 witnesses have already been examined and they
were cross-examined at length. PWs 4 and 5 filed applications
before the trial court for further examination on 27.2.2012 and
26.3.2012 respectively. During police investigation and
examination conducted by the prosecution, they had supported
the prosecution story. The applications have been filed with an
intention to provide assistance to the accused persons which
cannot be permitted in law. The applications are highly belated
and no reason, whatsoever, has been assigned for the delay.
Therefore, the High Court was not justified in setting aside the
well-reasoned order of the Sessions Judge.
4
5. On the other hand, learned counsel appearing for
respondent No.4 submits that the appellant has no locus standi to
file this appeal. It is contended that the Sessions Judge has
ample power to examine or re-examine any witness under
Section 311 of the Cr.P.C. to bring on record the best possible
evidence to meet the ends of justice. Keeping this principle in
mind the High Court has allowed the petition. Learned counsel
appearing for the third respondent has supported the case of the
appellant. We have carefully considered the arguments of the
learned counsel made at the Bar.
6.
The appellant is the paternal brother of the deceased and is
one of the prosecution witnesses. The evidence of PW4 and PW5
was recorded on different dates in the months of November and
December 2010 and in March 2011. Both of them had supported
the case of the prosecution. After passage of about 14 months,
PW4 and PW5 filed applications under Section 311 of the Cr.P.C.,
inter alia, praying for their re-examination as witnesses for the
reason that the statements recorded earlier were made on the
5
instructions of the police. The Sessions Judge dismissed the
application by holding as under:
“The charges have already been framed
under sections 302, 201, 342, 120 B IPC
against the accused persons. Statements of
28 witnesses have already been recorded in
the trial. The statements of applicant namely
Sawarmal has already been recorded as
witness PW4 and the statements of applicant
namely Chandri have also already been
recorded as witness PW5. Thereafter, the
said applications have been filed. Said
witnesses have already undergone a lengthy
cross examination. During the police
investigation and examination conducted by
the prosecution, wherein they have
supported prosecution story, it cannot be said
that at such time, the witnesses were under
any pressure. In such circumstances, it is
not justified to make the Court as weapon to
adjudicate in own favour and the above both
applications are without any merit and
presented with the intention to provide
assistance to the accused persons, due to
which, the same are not liable to be
admitted. Resultant, the above presented
both applications dated 27.02.2012 and
26.03.2012 under section 311 CrPC on behalf
of the applicants are not liable to be
admitted,
the same are
dismissed”.
therefore,
This order of the Sessions Judge has been set aside by the High
Court.
6
7.
Having regard to the contentions urged, the first question
for consideration is whether the appellant has locus standi to
challenge the order of the High Court.
8.
In Black’s Law Dictionary, the meaning assigned to the term
‘locus standi’ is ‘the right to bring an action or to be heard in a
given forum’. One of the meanings assigned to the term ‘locus
standi’ in Law Lexicon of Sri P.Ramanatha Aiyar, is ‘a right of
appearance in a Court of justice’. The traditional view of locus
standi has been that the person who is aggrieved or affected has
the standing before the court, that is to say, he only has a right
to move the court for seeking justice. The orthodox rule of
interpretation regarding the locus standi of a person to reach the
Court has undergone a sea change with the development of
constitutional law in India and the Constitutional Courts have
been adopting a liberal approach in dealing with the cases or
dislodging the claim of a litigant merely on hyper-technical
grounds. It is now well-settled that if the person is found to be
not merely a stranger to the case, he cannot be non-suited on the
ground of his not having locus standi.
7
9.
However, criminal trial is conducted largely by following the
procedure laid down in Cr.P.C. Locus standi of the complaint is a
concept foreign to criminal jurisprudence. Anyone can set the
criminal law in motion except where the statute enacting or
creating an offence indicates to the contrary. This general
principle is founded on a policy that an offence, that is an act or
omission made punishable by any law for the time being in force,
is not merely an offence committed in relation to the person who
suffers harm but is also an offence against the society.
Therefore, in respect of such offences which are treated against
the society, it becomes the duty of the State to punish the
offender. In <cite>A.R. Antulay v. Ramdas Sriniwas Nayak & Anr.
(1984) 2 SCC 500</cite>, a Constitution Bench of this Court has
considered this aspect as under:-
“In other words, the principle that anyone
can set or put the criminal law in motion
remains intact unless contra-indicated by a
statutory provision. This general principle of
nearly universal application is founded on a
policy that an offence i.e. an act or omission
made punishable by any law for the time
being in force [See Section 2(n) CrPC] is not
merely an offence committed in relation to
the person who suffers harm but is also an
8
offence against society. The society for its
orderly and peaceful development is
interested in the punishment of the offender.
Therefore, prosecution for serious offences is
undertaken in the name of the State
representing the people which would exclude
any element of private vendetta or
vengeance. If such is the public policy
underlying penal statutes, who brings an act
or omission made punishable by law to the
notice of the authority competent to deal
with it, is immaterial and irrelevant unless
the statute indicates to the contrary.
Punishment of the offender in the interest of
the society being one of the objects behind
penal statutes enacted for larger good of the
society, right to initiate proceedings cannot
be whittled down, circumscribed or fettered
by putting it into a strait-jacket formula of
locus standi
unknown to criminal
jurisprudence, save and except specific
statutory exception”.
10.
In <cite>Manohar Lal v. Vinesh Anand & Ors. (2001) 5 SCC
407</cite>, this Court has held that doctrine of locus standi is totally
foreign to criminal jurisprudence. To punish an offender in the
event of commission of an offence is to subserve a social need.
Society cannot afford to have a criminal escape his liability since
that would bring about a state of social pollution which is neither
9
desired nor warranted and this is irrespective of the concept of
locus.
11.
In <cite>Arunachalam v. P.S.R. SADHANANTHAM & ANR.
(1979) 2 SCC 297</cite>, this Court has considered the competence of a
private party, as distinguished from the State to invoke the
jurisdiction of this Court under Article 136 of the Constitution
against a judgment of acquittal by the High Court. It was held
that appellate power vested in the Supreme Court under Article
136 of the Constitution is not to be confused with ordinary
appellate power exercised by appellate courts and appellate
tribunals under specific statutes. Article 136 of the Constitution
vests the Supreme Court with a plentitude of plenary, appellate
power over all Courts and Tribunals in India. The power is plenary
in the sense that there are no words in Article 136 itself qualifying
that power. But, the very nature of the power has led the Court
to set limits to itself within which it has to exercise such power.
The power is vested in the Supreme Court but the right to invoke
the Court’s jurisdiction is vested in no one. The exercise of the
power of the Supreme Court is not circumscribed by any
10
limitation as to who may invoke it. The Court found that the
judgment of acquittal by the High Court has led to serious
miscarriage of justice. Therefore, it was held that Supreme Court
cannot refrain from doing its duty and abstain from interfering on
the ground that a private party and not the State has invoked the
Court’s jurisdiction.
12. The accused in <cite>Arunachalam (supra)</cite> had filed a writ
petition under Article 32 contending that the Supreme Court has
no power to grant special leave to the brother of the deceased.
This writ petition was decided by a Constitution Bench in <cite>P.S.R
Sadhanantham v. Arunachalam & Anr. (1980) 3 SCC 141</cite>.
Rejecting the contention of the petitioner, this Court held as
under:-
“In express terms, Article 136 does not
confer a right of appeal on a party as such
but it confers a wide discretionary power on
the Supreme Court to interfere in suitable
cases. It is residuary power and is
extraordinary in its amplitude. But the
Constitution makers intended in the very
terms of Article 136 that it shall be exercised
by the highest judges of the land with
scrupulous adherence to judicial principles
well established by precedents in our
11
jurisprudence. Article 136 has a composite
structure of power-cum-procedure inasmuch
as there is an in-built prescription of exercise
of judicial discretion and mode of hearing. It
is fair to assume that while considering the
petition under Article 136 the court will pay
attention to the question of liberty, the
person who seeks such leave from the court,
his motive and his locus standi and the
weighty factors which persuade the court to
grant special leave. When this conspectus of
processual circumstances and criteria play
upon the jurisdiction of the court under
Article 136, it is reasonable to conclude that
the desideratum of fair procedure implied in
Article 21 is adequately answered. Though
parties promiscuously
this
jurisdiction, the court parsimoniously invokes
the power. Moreover, the court may not,
save in special situations, grant leave to one
who is not eo nomine a party on the record.
Thus, procedural limitations exist and are
governed by well-worn rules of guidance”.
‘provoke’
13.
In <cite>Ramakant Rai v. Madan Rai & Ors. (2003) 12 SCC
395</cite>, and <cite>Esher Singh v. State of A.P. (2004) 11 SCC 585</cite>, it
was held that the Supreme Court can entertain appeals against
the judgment of acquittal by the High Court at the instance of
interested parties also. The circumstance that Criminal Procedure
Code does not provide for an appeal to the High Court against an
order of acquittal by a subordinate court at the instance of a
12
private party has no relevance to the question of power of
Supreme Court under Article 136.
14.
In <cite>Amanullah and Anr. v. State of Bihar and Ors. (2016)
6 SCC 699</cite>, this Court has held that the aggrieved party cannot
be left to the mercy of the State to file an appeal. It was held as
under :-
“19…… Now turning our attention towards the
criminal trial, which is conducted, largely, by
following the procedure laid down in CrPC.
Since, offence is considered to be a wrong
committed against the society, the
prosecution against the accused person is
launched by the State. It is the duty of the
State to get the culprit booked for the
offence committed by him. The focal point,
here, is that if the State fails in this regard
and the party having bona fide connection
with the cause of action, who is aggrieved by
the order of the court cannot be left at the
mercy of the State and without any option to
approach the appellate court for seeking
justice”.
15.
It is thus clear that Article 136 does not confer a right to
appeal on any party but it confers a discretionary power on the
Supreme Court to interfere in suitable cases. The exercise of the
power of the court is not circumscribed by any limitation as to
13
who may invoke it. It does not confer a right to appeal, it confers
only a right to apply for special leave to appeal. Therefore, there
was no bar for the appellant to apply for special leave to appeal
as he is an aggrieved person. This Court in exercise of its
discretion granted permission to the appellant to file the special
leave petition on 03.08.2012 and leave was granted on
24.02.2014.
16. That brings us to the next question as to whether the High
Court was justified in setting aside the order of the Sessions
Judge and allowing the application filed by PWs 4 and 5 for their
re-examination. For ready reference Section 311 of the Cr.P.C. is
as under:
“311. Power to summon material
witness, or examine person present.-
Any Court may, at any stage of any inquiry,
trial or other proceeding under this Code,
summon any person as a witness, or
examine any person in attendance, though
not summoned as a witness, or recall and
re-examine any person already examined;
and the Court shall summon and examine or
recall and re-examine any such person if his
evidence appears to it to be essential to the
just decision of the case”.
14
17.
In order to enable the court to find out the truth and render
a just decision, the salutary provisions of Section 311 are enacted
whereunder any court by exercising its discretionary authority at
any stage of inquiry, trial or other proceeding can summon any
person as witness or examine any person in attendance though
not summoned as a witness or recall or re-examine any person
already examined who are expected to be able to throw light
upon the matter in dispute. The object of the provision as a
whole is to do justice not only from the point of view of the
accused and the prosecution but also from the point of view of an
orderly society. This power is to be exercised only for strong and
valid reasons and it should be exercised with caution and
circumspection. Recall is not a matter of course and the
discretion given to the court has to be exercised judicially to
prevent failure of justice. Therefore, the reasons for exercising
this power should be spelt out in the order.
18.
In <cite>Vijay Kumar v. State of Uttar Pradesh and Anr.,
(2011) 8 SCC 136</cite>, this Court while explaining scope and ambit of
Section 311 has held as under:-
15
“Though Section 311 confers vast discretion
upon the court and is expressed in the widest
possible terms, the discretionary power
under the said section can be invoked only
for the ends of justice. Discretionary power
should be exercised consistently with the
provisions of CrPC and the principles of
criminal law. The discretionary power
conferred under Section 311 has to be
exercised judicially for reasons stated by the
court and not arbitrarily or capriciously”.
19.
In <cite>Zahira Habibullah Sheikh (5) and Anr. v. State of
Gujarat and Others, (2006) 3 SCC 374</cite>, this Court has
considered the concept underlining under Section 311 as under:-
“The object underlying Section 311 of the
Code is that there may not be failure of
justice on account of mistake of either party
in bringing the valuable evidence on record
or leaving ambiguity in the statements of the
witnesses examined from either side.
The determinative factor is whether it is
essential to the just decision of the case. The
section is not limited only for the benefit of
the accused, and it will not be an improper
exercise of the powers of the court to
summon a witness under the section merely
because the evidence supports the case of
the prosecution and not that of the accused.
The section is a general section which applies
to all proceedings, enquiries and trials under
the Code and empowers the Magistrate to
16
issue summons to any witness at any stage
of such proceedings, trial or enquiry. In
Section 311 the significant expression that
occurs is “at any stage of any inquiry or trial
or other proceeding under this Code”. It is,
however, to be borne in mind that whereas
the section confers a very wide power on the
court on summoning witnesses, the
discretion conferred is to be exercised
judiciously, as the wider the power the
greater is the necessity for application of
judicial mind”.
20.
In <cite>State (NCT of Delhi) v. Shiv Kumar Yadav & Anr.,
(2016) 2 SCC 402</cite>, it was held thus:-
“…………… Certainly, recall could be permitted
if essential for the just decision, but not on
such consideration as has been adopted in
the present case. Mere observation that
recall was necessary “for ensuring fair trial”
is not enough unless there are tangible
reasons to show how the fair trial suffered
without recall. Recall is not a matter of
course and the discretion given to the court
has to be exercised judiciously to prevent
failure of justice and not arbitrarily. While
the party is even permitted to correct its
bona fide error and may be entitled to further
opportunity even when such opportunity may
be sought without any fault on the part of the
opposite party, plea for recall for advancing
justice has to be bona fide and has to be
balanced carefully with the other relevant
considerations including uncalled for hardship
to the witnesses and uncalled for delay in the
17
trial. Having regard to these considerations,
there is no ground to justify the recall of
witnesses already examined”.
21. The delay in filing the application is one of the important
factors which has to explained in the application. In <cite>Umar
Mohammad & Ors. v. State of Rajasthan, (2007) 14 SCC 711</cite>,
this Court has held as under:-
“Before parting, however, we may notice that
a contention has been raised by the learned
counsel for the appellant that PW 1 who was
examined in Court on 5-7-1994 purported to
have filed an application on 1-5-1995 stating
that five accused persons named therein
were innocent. An application filed by him
purported to be under Section 311 of the
Code of Criminal Procedure was rejected by
the learned trial Judge by order dated
13-5-1995. A revision petition was filed
thereagainst and the High Court also rejected
the said contention. It is not a case where
stricto sensu the provisions of Section 311 of
the Code of Criminal Procedure could have
been invoked. The very fact that such an
application was got filed by PW 1 nine
months after his deposition is itself pointer to
the fact that he had been won over. It is
absurd to contend that he, after a period of
four years and that too after his
examination-in-chief and cross-examination
was complete, would file an application on his
18
own will and volition. The said application
was, therefore, rightly dismissed”.
22. Coming to the facts of the present case, PWs 4 and 5 were
examined between 29.11.2010 and 11.3.2011. They were
cross-examined at length during the said period. During the
police investigation and in their evidence, they have supported
the prosecution story. The Sessions Judge has recorded a finding
that they were not under any pressure while recording their
evidence. After a passage of 14 months, they have filed the
application for their re-examination on the ground that the
statements made by them earlier were under pressure. They
have not assigned any reasons for the delay in making
application. It is obvious that they had been won over. We do not
find any reasons to allow such an application. The Sessions
Judge, therefore, was justified in rejecting the application. In our
view, High Court was not right in setting aside the said order.
23.
In the result, the appeal succeeds and it is accordingly
allowed. The order of the High Court in S.B. Criminal
19
Miscellaneous Petition No.1679 of 2012, dated 22.5.2012 is
hereby set aside. All pending applications also stand disposed of.
24. We find from the records that after the order of the High
Court, PWs 4 and 5 were re-examined before the Trial Court.
The Trial Court is directed to proceed with the matter without
taking into consideration the evidence of PWs 4 and 5 recorded
after the order of the High Court.
|
2
2.
These three appeals have been filed against the
common judgment dated 27.07.2020 of the High Court of
Punjab and Haryana dismissing the Civil Writ Petition
No.13496 of 2009 which was filed by the appellants in
first two appeals. The third appeal, Sandeep Kumar and
another is an appeal filed by the two appellants who
were intervenors in the Civil Writ Petition No.13496 of
2009. The Division Bench of the High Court by the
impugned judgment dismissed the writ petition upholding
the promotion orders of all the respondent Nos.4 to 34
as Inspector in the Haryana Police.
3.
Brief facts of the case necessary to be noted for
deciding these appeals are:
The appointment and promotion in Police Force of
the State of Haryana are governed by Punjab Police
Rules, 1934. In the State of Haryana prior to 2001,
100% posts of Sub-Inspectors of Police used to be
filled by way of promotion. Rule 12.3 was amended vide
notification dated 24.12.2001 by substituting Rule 12.3
to the following effect:
3
“12.3, Direct appointment of Inspectors and
Sub-Inspectors – Except as provided in rules
12.1 and 12.4 direct appointment shall not be
made except in the rank of Inspector and Sub
Inspector of Police. Such appointment in the
rank of Inspector and Sub Inspector may be made
up
to a maximum of ten percent and fifty
percent of posts respectively.”
4.
The first direct recruitment on the post of Sub-
Inspector was held in the year 2003 in which
recruitment all the three writ petitioners, Om Prakash,
Sudeep Kumar Singh and Suresh Kumar were recommended
for direct recruitment as Sub-Inspector. All the writ
petitioners joined in May, 2003 as Sub-Inspector. The
private respondents to these appeals who were arrayed
as respondent Nos.4 to 34 in the writ petition were
promoted to the rank of Sub-Inspector from Assistant
Sub-Inspector between June, 2003 and March, 2004, i.e.,
after the writ petitioners had joined. The respondents
were promoted on the post of Inspector by orders dated
27.11.2008, 18.05.2009 and 13.08.2009. The writ
petitioners aggrieved by the above mentioned promotion
orders filed Civil Writ Petition No.13496 of 2009
praying for following reliefs:
4
“i) Issue a writ in the nature of mandamus
summoning the records of the cases.
ii) Issue a writ in the nature of certiorari
quashing the order dated 27.11.2008
(Annexure-P-8), order dated 18.05.2009
(Annexure-P-9) and order dated 13.08.2009
(Annexure-P-10) whereby the private
respondents have been promoted as
Inspectors of Police;
iii) Issue a writ in the nature of certiorari
quashing the confirmation order dated
30.06.2009 (Annexure P-2), order dated
15.06.2009 (Annexure P-3) and also order
dated 30.06.2009 (Annexure P-4);
iv) Issue a writ in the nature of certiorari
quashing the Rules 12.2, 12.8 and 13.18 of
the Punjab Police Rules being ultra vires
of Articles 14 and 16 of the Constitution
of India.
v)
Issue a writ in the nature of mandamus
directing the official respondents to
consider and promote the petitioner as
Inspector with effect from the date the
private respondents were promoted and
directing the official respondents to
grant all consequential reliefs that flow
viz. seniority in the rank of Inspector,
fixation of pay, payment of arrears of pay
along with interest at the rate of 12 per
cent per annum etc. etc.
5
vi) Issue any other suitable writ, order or
direction as this Hon’ble Court may deem
fit and proper in the facts and
circumstances of the present case may be
issued.”
5.
The writ petition was contested both by the State
as well as by the private respondents. It was pleaded
on behalf of the State that the eligibility for
promotion from the post of Sub-Inspector to Inspector
is eight years’ service of which five years’ service
should be as Sub-Inspector, none of the writ
petitioners had to their credit eight years’ service
hence they being not eligible were not promoted. The
writ petitioners were promoted in the year 2011 when
they completed eight years of service to their credit.
The State defended the vires of the Rules and contends
that the Rules were neither arbitrary nor violative of
Articles 14 and 16 of the Constitution. The High Court
framed following two issues in the writ petition for
consideration:
6
“(i) Whether Rule 13.14(2) prescribes the
eligibility criteria for consideration for
promotion to the post of Inspector ?
(ii) If the Rule 13.14(2) is applicable,
whether the conditions of eight years
experience is arbitrary and discriminatory and
is, therefore, required to be struck down being
violative of Article 16 of the Constitution ?”
6.
The High Court after considering the submissions of
the parties held that Rule 13.14(2) of the Punjab
Police Rules, 1934 prescribes the eligibility criteria
for consideration for promotion to the post of
Inspector. The High Court also held that requirement of
eight years’ experience for promotion to the post of
Inspector is neither arbitrary nor discriminatory.
After recording the conclusion, writ petition was
dismissed by the High Court. Aggrieved by the judgment
of the High Court, the writ petitioners have filed
first two appeals and the last appeal has been filed by
the intervenors.
7.
We have heard Shri P.S. Patwalia, learned senior
counsel and Shri Shyam Divan, learned senior counsel
7
appearing for the appellants. Shri Gurminder Singh,
learned senior counsel, has appeared for the private
respondents. Shri Nikhil Goel, learned Additional
Advocate General has appeared for the State of Haryana.
8.
Learned senior counsel for the appellants submits
that the appellants/writ petitioners were senior to the
private respondents in the cadre of Sub-Inspector, and
they being directly recruited before the respondents
could be promoted as Sub-Inspector. They being seniors
were entitled to be promoted on the post of Inspector
as they have also completed five years’ experience as
Sub-Inspector. It is submitted that the High Court has
wrongly relied on Rule 13.14 which Rule was not
applicable for promotion to the post of Inspector from
Sub-Inspector. It is submitted that the applicable
Rules for promotion from the rank of Sub-Inspector to
Inspector are Rules 13.1, 13.15 and 13.16 of Rules,
1934. Rule 13.14 covers a situation where a Sub-
Inspector is being promoted to and in the Selection
Grade of Sub-Inspector. The Government of Haryana vide
8
its order dated 29.04.1987 has abolished the Selection
Grade in all Groups B,C and D posts. The Sub-Inspector
being a Group-C post, there was no question of
promotion in Selection Grade of any Sub-Inspector after
29.04.1987. In fact, none of the private respondents
were promoted in the Selection Grade so as to claim
applicability of Rule 13.14. The selection criteria is
contained in sub-rule (1) of Rule 13 and Rule 13.15.
Sub-Rule (4) of Rule 13.15 does not deal with
eligibility rather it deals with inter-se seniority.
The Haryana Police (Non-Gazetted and Other Ranks)
Service Rules, 2017 now provide, by Rule 7 read with
Appendix B that five years’ service is required as Sub-
Inspector for promotion to the post of Inspector. The
position in Rules, 2017 clearly defeats the
construction placed by the High Court requiring an
eight years’ qualifying period.
9. Shri Nikhil Goel, learned Additional Advocate
General for the State of Haryana submits that
requirement for promotion to the rank of Inspector has
9
always been of eight years’ of service. The said
criteria has been followed ever since the State of
Haryana was established in 1966 and even after
selection grade was abolished in 1987. The requirement
of eight years of service for promotion to the post of
Inspector is clear from a conjoined reading of Rule
13.14 read with Rule 13.15(4) of Rules, 1934. Rule
13.14 of Rules, 1934 was never challenged in the writ
petition but rather it was only the vires of Rule 12.2,
12.8 and 13.18 that were challenged. No reliance can be
placed on Rules, 2017 which Rules have been notified
after nine years of promotion of private respondents.
Rule 13.14 is an integral and inalienable part of the
scheme of the Rules governing promotion to the rank of
Inspector. Without Rule 13.14, there cannot be any List
F and without List F, no promotion can be made to the
post of Inspector. The selection grades are in the
nature of a promotional scale. Therefore, the criteria
provided for promotion to selection grade can be taken
as criteria for further promotion. The requirement and
10
rationale of eight years of service for a Sub-Inspector
is to discharge the higher responsibility of an
Inspector. Rules, 1934 have always been interpreted so
by the State and all promotions were affected till new
Rules were enforced in 2017.
10. Learned counsel for the private respondents also
adopts the submissions raised by Shri Nikhil Goel that
impugned judgment of the High Court needs no
interference by this Court.
11. Shri P.S. Narasimha, learned senior counsel, has
also appeared for the private respondents. He, however,
submits that he is not affected by the inter-se dispute
between the writ petitioners and the private
respondents. He submits that his clients have already
been promoted as Deputy Superintendents of Police.
12. We have considered the submissions made by the
learned counsel for the parties and perused the
records.
11
13. From the submissions of the learned counsel for the
parties and materials on record following two questions
arise for consideration in these appeals:-
(i)
Whether the mode and manner of promotion in
selection grade from rank of Sub-Inspector to
Inspector as envisaged in Punjab Police Rules,
1934 has become redundant after issuance of
Government Order dated 29.04.1987 by State of
Haryana withdrawing the grant of selection
grade to Group A, B and C employees?
(ii)
Whether the Rule 13.14 of Punjab Police Rules,
1934, which contemplate promotion to the
various selection grades cannot be looked into
while considering the promotion of a Sub-
Inspector to the rank of Inspector and
requirement of having at least eight years’
approved service as an upper subordinate is no
longer attracted for promotion of direct
recruits Sub-Inspector?
12
14. Before we proceed to consider the respective
submissions, we need to look into the statutory rules
governing the promotion from the post of Sub-Inspector
to Inspector. The statutory rules are Punjab Police
Rules, 1934. The appellant’s case is that only
applicable rules for promotion from the rank of Sub-
Inspector to Inspector are Rules 13.1, 13.15 and 13.16
of the Rules, 1934. We need to notice the aforesaid
rules, which are to the following effect:-
“13.1. Promotion from one rank to
another. - (1) Promotion from one rank to
another, and from one grade to another in
the same rank shall be made by selection
tempered by seniority. Efficiency and
honesty shall be the main factors
governing
Specific
qualifications, whether in the nature of
training courses passed or practical
experience, shall be carefully considered
in each case. When the qualifications of
two officers are otherwise equal, the
senior shall be promoted. This rule does
not affect increments within a time-scale.
selection.
(2) Under the present constitution of
the police force no lower subordinate will
ordinarily be entrusted with the
independent conduct of investigations or
the independent charge of a police station
or similar unit. It is necessary,
therefore, that well-educated constables,
13
having the attributes necessary for
bearing the responsibilities of upper
subordinate rank, should receive
accelerated promotion so as to reach that
rank as soon as they have passed the
courses prescribed for, and been tested
and given practical training in, the ranks
of constable and head constable.
(3) For the purposes of regulating
promotion amongst enrolled police officers
six promotion lists - A, B, C, D, E, and F
will be maintained.
Lists A, B, C and D shall be
maintained in each district as prescribed
in rules 13.6, 13.7, 13.8 and 13.9 and
will regulate promotion to the selection
grade of constables and to the ranks of
head constables and Assistant Sub-
Inspector. List E shall be maintained in
the office of Deputy Inspector- General as
prescribed in sub-rule 13.10(1) and will
regulate promotion to the rank of Sub-
Inspector. List F shall be maintained in
the office of the Inspector-General as
prescribed in sub-rule 13.15(1) and will
regulate promotion to the rank of
Inspector.
Entry in or removal from A, B, C, D or
E lists shall be recorded in the order
book and in the character roll of the
police officer concerned. These lists are
nominal rolls of those officers whose
admission to them has been authorised. No
actual selection shall be made without
careful examination of character rolls.
14
Provided that five per cent of such
promotions may be made from amongst the
members of the Police Force, who achieve
outstanding distinction in sports field at
All India level or International level if
they are otherwise eligible for promotion
but for seniority.
13.15. List F - Promotion to
Inspectors. - (1) Recommendations on
behalf of Sergeants and Sub-Inspectors
considered fit for promotion to the rank
of Inspector shall be submitted with their
annual confidential reports on the 15th
April each year to Deputy Inspector-
General by Superintendents of Police in
Form 13.15(1). Recommendations on behalf
of Sergeants and Sub-Inspectors employed
in the Government Railway Police will be
sent direct to the Inspector-General of
Police by the Assistant Inspector-General,
Government Railway Police, in the same
form and not later than October each year.
The Deputy Inspector-General shall decide,
after seeing the officers recommended, and
in consideration of their records, and his
own knowledge of them, whether to endorse
the recommendations of Superintendents of
Police and forwarded them to the
Inspector-General. He will keep a copy of
any recommendation so forwarded in the
personal file of the officer; if he
decides not to endorse a recommendation,
he shall retain the original in the
officer’s personal file and send a copy of
his own order on it to the Superintendent
concerned. Deputy Inspector-General shall
finally submit recommendations to the
Inspector-General as soon as they are
satisfied as to the fitness of officers
15
recommended, but in no case later than
October each year.
(2) Such of the officers recommended
as the Inspector-General may consider
suitable shall be admitted to promotion
list ‘F’ (form 13.15(2) which will,
however, not be published. Deputy
Inspectors-General shall be informed, and
shall in turn inform the Superintendents
concerned, of the names of those who have
been admitted to the List; similar
information will be sent to the Assistant
Inspector-General, Government Railway
Police.
The original personal files of Sub-
Inspectors admitted to the list shall be
transferred to the Inspector-General after
duplicates have been prepared for
retention in the office of the Deputy
Inspector-General or the Assistant
Inspector-General, Government Railway
Police, as required by Rule 13.38(1).
Copies of all subsequent annual
confidential reports prepared in form
13.17 in respect both of Sergeants and
Sub-Inspectors admitted to the list will,
on return by the Inspector-General in
accordance with rule 13.17(1), be recorded
by Deputy Inspectors-General or the
Assistant Inspector-General, Government
Railway Police, with the duplicate
personal files of the officers concerned.
Copies of all entries ordered to be made
in personal files other than annual
confidential reports will be forwarded to
the Inspector-General as soon as made for
record with the original personal files;
all such copies shall be attested by the
16
Deputy Inspector-General or the Assistant
Inspector General, Government Railway
Police, personally.
(3) When submitting recommendations
for the entry of fresh names in List F,
Deputy Inspectors-General and the
Assistant Inspector-General, Government
Railway Police, will at the same time
submit specific recommendations (which
need not be accompanied by detailed
confidential reports) as to the retention
or removal of officers already admitted to
the list. On receipt of these
recommendations, the Inspector-General
will review the Provincial List, and pass
orders regarding the retention or
exclusion of names, at the same time
communicating his decision to the Deputy
Inspector-General and the Assistant
Inspector-General, Government Railway
Police.
(4) Sub-Inspectors admitted to List
‘F’ will be placed in that list in order
according to their date of permanent
promotion to selection grade, and, if the
date of permanent promotion to selection
grade is the same in the case of two or
more Sub-Inspectors admitted to list ‘F’
on one and the same date, then according
to date of permanent promotion to the
time-scale. Sergeants will be shown in
list ‘F’ according to the date of entry in
the list. When, however, two or more
Sergeants are admitted to list ‘F’ on the
same date, their names will be shown in
order of seniority among themselves.
17
13.16. Promotion to the rank of
Inspector. - (1) Substantive vacancies in
the rank of Inspector, save those which
are specially designated for the
appointment of probationers shall be
filled by promotion of officers from list
F selected according to the principles
laid down in rule 13.1. Sergeants are
eligible for promotion in the appointments
reserved for European Inspectors.
(2) Temporary vacancies in the rank of
Inspector shall be filled by the
officiating promotion of officers on F
list by the authorities empowered by rule
13.4 to make the appointment. Such
officiating promotions shall be made in
accordance with the principles laid down
in sub-rule 13.12(1) in the case of E
list, and the second part of that rule
shall, mutatis mutandis, govern the
scrutiny of the work of F list officers
and the removal from that list of the
names of those who are found unfit for the
rank of inspector.
(3) No officer whose name is not on F
list shall be appointed to officiate as
Inspector without the special sanction of
the Inspector-General. When no officer on
F list is available in the range for a
vacancy which the Deputy Inspector-General
is required to fill, application shall be
made to the Inspector-General to appoint a
man from another range.”
15. On the other hand, the respondents placed reliance
on Rule 13.14, which is to the following effect:-
18
“13.14. Promotions to and in the
selection grades of Sub-Inspectors. - (1)
Promotion to the various selection grades
of Sub-Inspectors shall be made by
Superintendents of Police and the
Assistant Superintendent, Government
Railway Police, as vacancies in the
sanctioned establishment of such
appointments occur in accordance with the
principle laid down in Rule 13.1.
(2) No Sub-Inspector shall be
considered eligible for promotion to a
selection grade unless he has at least
eight years’ approved service as an upper
subordinate, of which at least five shall
have been in the rank of Sub- Inspector,
and unless he is thoroughly efficient and
competent to hold charge of a police
station of first class importance. No Sub-
Inspector who has been punished by
reduction, stoppage of increment, or
forfeiture of approved service for
increment, shall be eligible for promotion
to a selection grade. Exceptions to this
rule may be made only with the sanction of
the Inspector- General in recognition of
distinguished service and exemplary
conduct.
(3) Sub-Inspectors promoted to the 4th
selection grade shall be on probation for
one year and may be reverted without
formal departmental proceedings during or
on the expiry of the period of their
probation if they fail to maintain an
exemplary standard of conduct and
efficiency.
Provided that the competent authority
may, if it so thinks fit in any case,
19
extend the period of probation by one year
in the aggregate and pass such orders at
any time during or on the expiry of the
extended period of probation as it could
have passed during or on the expiry of
original period of probation.”
16. We may now notice the Government Order dated
29.04.1987 issued by the State of Haryana, which
communicates the decision of the State Government that
“the present system of selection grades as it exists
for the employees of Groups B, C & D has been
discontinued”. The effect of the G.O. dated 29.04.1987
was that there was no entitlement of a Sub-Inspector or
any police personnel belonging to Group C to claim
selection grade. The statutory Rule 13.1 provides that
promotion from one rank to another and from one grade
to another in the same rank shall be made by selection
tempered by seniority. The use of expression “specific
qualifications whether in the nature of training
courses passed or practical experience, shall be
carefully considered in each case” indicate that
qualifications for promotion are not contained in Rule
13.1 and they have to be found out from other part of
20
the Rules. Rule 13.1 governs both promotions, from one
rank to another, and from one grade to another. Thus,
Rule 13.1 regulates promotion within the grade and from
one grade to another. Rule 13.14 contains the heading
“promotions to and in the selection grades of Sub-
Inspectors”. Rule 13.14(2) provides that no Sub-
Inspector shall be considered eligible for promotion to
a selection grade unless he has at least eight years’
approved service as an upper subordinate, of which five
years shall have been in the rank of Sub-Inspector.
Now, coming to Rule 13.15 which deals with “List F-
Promotion to Inspectors”, Rule 13.15(1) deals with
recommendations on behalf of Sub-Inspectors considered
fit for promotion to the rank of Inspector to be
submitted with their annual confidential reports on the
15th April each year to Deputy Inspector-General by
Superintendents of Police in Form 13.15(1).
17. Rule 13.15(4) provides that Sub-Inspectors admitted
to List ‘F’ will be placed in that list in order
according to their date of permanent promotion to
21
selection grade. Thus, date of permanent promotion to
selection grade is criteria which was required to be
followed for promotion to Inspector and as required by
Rule 13.14(2) no Sub-Inspector shall be considered
eligible for promotion to a selection grade unless he
has at least eight years’ approved service as an upper
subordinate, of which at least five years shall have
been in the rank of Sub-Inspector.
18. Thus, promotion to selection grade of a Sub-
Inspector was pre-condition for including the name of a
Sub-Inspector in List ‘F’ which is a list from which
promotion to Inspector was to be made. Even though
scheme of grant of selection grade was done away by the
State vide its common order dated 29.04.1987, the
exercise of promotion to Inspector from Sub-Inspector
even after 29.04.1987 was done on the basis of
requirement of Rule 13.14(2), i.e., names of only those
Sub-Inspectors were included in List ‘F’ who have eight
years of approved service as an upper subordinate to
their cadre. The promotion to selection grade was
22
contemplated under the Rules by following eligibility
and criteria as laid down in the Rules. The submission
of the respondents is that after the State Government
withdrew the scheme of selection grade by the
Government order dated 29.04.1987 all statutory
provisions regarding grant of selection grade became
redundant. Even if no selection grade was to be
provided to any of the personnel of the Police force
after 29.04.1987, the criteria which was adopted for in
rank promotion was followed by the State for promotion
to the next rank. The Rules contained in Chapter XIII
have to be given a conjoint and meaningful reading to
advance object and purpose of the Rules. The Rules
provided a mode and manner for assessment of an
official to move forward by means of a grant of
selection grade and thereafter by the next step on the
next rank. The criteria in the Rules for assessing a
person that he was entitled for grant of selection
grade cannot be said to be meaningless with no purpose
after withdrawal of the selection grade. The grant of
23
selection grade, in the rank in which Police official
was there, is a step for making eligible officer to
move to the higher rank. Can the argument be accepted
that promotion of Sub-Inspector to Inspector has been
on the basis of seniority alone? Whether there shall be
no cap of experience when a Sub-Inspector is considered
to be promoted to next higher rank in grade, i.e.,
Inspector? If we accept the submission of the counsel
of the respondents that the requirement as contained in
Rule 13.14(2) is no longer applicable after withdrawal
of selection grade, there will be no requirement of any
experience to any Sub-Inspector for becoming an
Inspector which was never the intendment of the
statutory Rules. For promotion to Sub-Inspector to
selection grade eight years’ approved service was
contemplated which was with intent that sufficient
experience is gained by a Police personnel to be
considered for promotion to Inspector who is to man a
Police Station and has to discharge other important
functions. It is relevant to notice that no amendments
24
in the statutory Rules were made after 29.04.1987 and
even after notification was issued dated 24.12.2001
substituting Rule 12.3. The case of the State before
the High Court and before this Court is that even after
29.04.1987 till 2017 Rules were enforced, all Sub-
Inspectors, including direct and promotees were
uniformly dealt with by insisting the requirement of
eight years’ approved service as the upper subordinate
for the purposes of inclusion of their names in List
‘F’.
19. The selection grades are in the nature of
promotional scale, therefore, the criteria provided for
promotion to selection grade can very well be taken as
criteria for further promotion which is the spirit of
the Rules followed uniformly by the State while
effecting the promotion. The object and purpose of the
Rules and methodology for evaluating the Police
personnel to move in the higher rank in the same or to
the next rank cannot be lost sight nor can be ignored
merely because the scheme was withdrawn on 29.04.1987.
25
No error has been committed by the State in continuing
the evaluation of the Sub-Inspectors on the basis of
criteria as provided in Rule 13.14 while effecting
promotion.
20. This Court has laid down time and again that while
construing statutory Rules such construction should be
adopted which may give effect to the intention or
object of the Rule and no such interpretation be put
which may make the Rule ineffective. We may refer to
the judgment of this Court in <cite>State of Gujarat and
Another vs. Justice R.A. Mehta (Retired) and Others,
(2013) 3 SCC 1</cite>, where this Court laid down following in
paragraphs 96, 97 and 98:
“96. In the process of statutory
construction, the court must construe the
Act before it bearing in mind the legal
maxim ut res magis valeat quam pereat
which means it is better for a thing to
have effect than for it to be made void
i.e. a statute must be construed in such a
manner so as to make it workable. Viscount
Simon, L.C. in <cite>Nokes v. Doncaster
Amalgamated Collieries Ltd. [1940 AC
1014 : (1940) 3 All ER 549 (HL)]</cite> stated as
follows: (AC p. 1022)
26
“… if the choice is between
two interpretations, the narrower
of which would fail to achieve the
manifest purpose of the
legislation, we should avoid a
construction which would reduce
the legislation to futility and
should rather accept the bolder
construction based on the view
that Parliament would legislate
only for the purpose of bringing
about an effective result.”
97. Similarly in <cite>Whitney v. IRC [1926 AC
37 (HL)]</cite> it was observed as under: (AC p.
52)
“… A statute is designed to be
workable, and the interpretation
thereof by a court should be to
secure that object, unless
crucial omission or clear
direction makes that end
unattainable.”
98.
The doctrine of purposive
construction may be taken recourse to for
the purpose of giving full effect to
statutory provisions, and the courts must
state what meaning the statute should
bear, rather than rendering the statute a
nullity, as statutes are meant to be
operative and not inept. The courts must
refrain from declaring a statute to be
unworkable. The rules of interpretation
require that construction which carries
27
forward the objectives of the statute,
protects interest of the parties and keeps
the remedy alive, should be preferred
looking into the text and context of the
statute. Construction given by the court
must promote the object of the statute and
serve the purpose for which it has been
enacted and not efface its very purpose.
“The courts strongly lean against any
construction which tends to reduce a
statute to futility. The provision of the
statute must be so construed as to make it
effective and operative.” The court must
take a pragmatic view and must keep in
mind the purpose for which the statute was
enacted as the purpose of law itself
provides good guidance to courts as they
interpret the true meaning of the Act and
thus legislative futility must be ruled
out. A statute must be construed in such a
manner so as to ensure that the Act itself
does not become a dead letter and the
obvious intention of the legislature does
not stand defeated unless it leads to a
case of absolute intractability in use.
The court must adopt a construction which
suppresses the mischief and advances the
remedy and “to suppress subtle inventions
and evasions for continuance of the
mischief, and pro privato commodo, and to
add force and life to the cure and remedy,
according to the true intent of the makers
of the Act, pro bono publico”. The court
must give effect to the purpose and object
of the Act for the reason that legislature
is presumed to have enacted a reasonable
28
statute. (<cite>Vide M. Pentiah v. Muddala
Veeramallappa [AIR 1961 SC 1107]</cite> , <cite>S.P.
Jain v. Krishna Mohan Gupta [(1987) 1 SCC
191 : AIR 1987 SC 222]</cite> , <cite>RBI v. Peerless
General Finance and Investment Co. Ltd.
[(1987) 1 SCC 424 : AIR 1987 SC 1023]</cite>,
<cite>Tinsukhia Electric Supply Co. Ltd. v.
State of Assam [(1989) 3 SCC 709 : AIR
1990 SC 123]</cite> , SCC p. 754, para 118, <cite>UCO
Bank v. Rajinder Lal Capoor [(2008) 5 SCC
257 : (2008) 2 SCC (L&S) 263]</cite> and <cite>Grid
Corpn. of Orissa Ltd. v. Eastern Metals
and Ferro Alloys [(2011) 11 SCC 334]</cite> .)”
21. The principle of construction of statutory Rules as
laid down above would apply to the interpretation of
Punjab Police Rules, 1934. We are of the opinion that
the High Court did not commit any error in construing
the Rules in the manner as was construed by the High
Court. We endorse the view of the High Court
interpreting the Punjab Police Rules, 1934. Chapter
XIII of the Rules have to be conjointly and
harmoniously construed and when we construe Rules 13.1,
13.14 and 13.15, we do not find any error in State
promoting the Sub-Inspectors to Inspectors who have
eight years’ approved service to their credit, at least
29
five years being as Sub-Inspectors. Thus, the High
Court has rightly upheld the promotion orders of
private respondents. No ground is made out to
interfere with the judgment of the High Court in these
appeals. The appeals are dismissed.
|
1.
These appeals have been filed by the prosecution assailing
the judgment of the High Court of Rajasthan dated 3rd January,
2012 acquitting the respondents charged for the offences under
Sections 302, 201 read with Section 34 IPC.
2.
As per case of the prosecution, on 19th October, 2002 in the
morning at 12.30 p.m., the informant Abdul Haq gave a written
1
report that in the intervening night of 18th and 19th October,
2002, while he was sleeping in his railway quarter situated at
Borkheda Culvert near the railway line, Kota at about 12.05 a.m.,
one Madan Bheel and Parmanand Bheel came to his quarter and
woke him up and stated that the dead body of one unknown
person was lying beneath the culvert at 916/8.10 km of the
railway line, Kota (Rajasthan). Thereupon, he reached there and
saw that dead body had injuries on its head, mouth and face. On
inquiry, Smt. Saroti Bai Bheel disclosed that sometime before she
woke up for urinating, she saw twothree persons coming by an
auto rikshaw, who had placed the said body on the railway line
and had gone away. One person who was standing there
revealed that the said dead body was of Bajranglal, retired
Constable. From the facts of the report made by informant Abdul
Haq, the Police Station Incharge reached at the spot and found
an offence under Sections 302, 201 read with Section 34 IPC.
This report was sent with Shri Fazlur Rehman, Head Constable
for registering a case to Police Station Nayapura, Kota.
3.
Crime No. 679/02 was registered by the Head Constable
and First Information Report was sent to the Police Station In
2
charge. Thereafter, the investigation was done and chargesheet
was submitted against the respondents Mahesh Kumar, Dinu @
Deendayal and Bhaiya @ Devkaran in the Court of Magistrate.
Learned Magistrate handed over the case to the Sessions Court,
Kota from where it was transferred to the Court of Additional
Sessions Judge, No. 2, Fast Track, Kota.
4.
The prosecution in support thereof produced 25 witnesses
and got exhibited Exhibit P1 to P45 in its documentary
evidence. Thereafter, the statements of the respondents were
recorded under Section 313 of Code of Criminal Procedure, 1973.
In defence, DW1 Rajendra Singh was produced and the
statements of prosecution witnesses Pratap and Bhupendra
recorded under Section 161 of Code of Criminal Procedure, 1973
were relied as Exhibit D1 and D2.
5.
The learned Sessions Judge, based on the material available
on record, held all the respondents guilty under Sections 302,
201 read with Section 34 IPC and sentenced them to undergo
imprisonment for life along with fine, which came to be
challenged by the respondents in Appeal under Section 374 of
3
the Code of Criminal Procedure, 1973 before the Division Bench
of the High Court of Rajasthan, Jaipur Bench, Jaipur.
6.
On appraisal of the records, the High Court in its impugned
judgment dated 3rd January, 2012 recorded a finding that the
chain of circumstantial evidence produced by the prosecution is
very doubtful, contradictory and not reliable at all. At the same
time, it was also observed that most of the prosecution witnesses
were declared hostile and many important and relevant witnesses
without any reason has not been produced by the prosecution.
7.
Dayaram and Gulab, who identified the dead body of the
deceased Bajranglal and who lifted the dead body from the
railway track and kept in side have not been produced. The
Samdhi of deceased Bajranglal and Brijgopal, father of PW5
Rajeshbai were not produced. That apart, the witnesses alleging
the reason for murder Surendrasingh, Ramgopal, Ramswarup,
Girraj Gupta, Premchand and Shyambabu were not produced.
The motive of the incident which is allegedly the illicit relation of
Sulochana and respondentMahesh, the said Sulochana has not
been produced as prosecution witness. The witnesses of Memos
4
Exhibit P13, P15, P41, etc. Dilipsingh have not been produced.
Witness Hemraj of Memos Exhibit P30, P35 and P36 and
witnesses Manoj, Vijay of Memo Exhibit P41 have not been
produced. Fazlur Rahman, Police Head Constable who took the
written report Exhibit P24 and gone to the Police Station and on
his written report, FIR was registered, has not been produced.
The aunt of Ramesh who along with PW2 Narendra is alleged to
have gone to Rajesh has not been produced. The witness of
Exhibit P20 Bharatram, Rais Mohammad, Surendrasingh and
Brijgopal have not been produced. The witness Balak @
Mansingh and Imam of the Memo of Arrest of the accused Exhibit
P26, P27, P28 and P32 have not been produced.
8.
It has further been observed that the prosecution failed to
tender any justification that all the three respondents were
arrested on 19th October, 2002 at 11.30 p.m. but why
proceedings of the recoveries were undertaken after gap of 3 to
10 days, i.e., on 23rd, 25th, 26th and 29th October, 2002. It has
also been pointed out by the High Court that the Investigating
Officer in his statement has recorded that no blood marks were
found in the auto, which could not establish that the auto as
5
alleged was carrying the body of deceased to the railway line.
PW1 Madan Bheel and PW4 Parmanand Bheel were declared
hostile and PW5 Smt. Rajeshbai, daughterinlaw of the
deceased, in crossexamination, deposed that whatever she had
told earlier with respect to the incident was hearsay and has not
supported the prosecution.
9.
It reveals from the record that most of the prosecution
witnesses have been declared hostile and the statement of
witnesses produced suffer from serious material contradictions.
In the light of statements of prosecution witnesses suffering from
material deficiencies, the High Court arrived at the conclusion
that the circumstantial evidence produced by the prosecution
appears to be doubtful, contradictory and is not safe to rely upon
and acquitted the respondents from charge under Section 302,
201 IPC and released them from judicial custody under its
impugned judgment dated 3rd January, 2012.
10.
It is well settled that in the cases of circumstantial evidence,
the circumstances from which the conclusion of guilt is to be
drawn should in the first instance be fully established, and all
6
the facts so established should be consistent only with the
hypothesis of guilt of the accused. The circumstances should be
of a conclusive nature and should be such as to exclude every
hypothesis but the one proposed to be proved. In other words,
there must be a complete chain of evidence as not to leave any
reasonable ground for a conclusion consistent with the innocence
of the accused and it must be such as to show that within all
human probability the act must have been done by the accused
and none else.
11. The enunciation of law pertaining to circumstantial
evidence, its relevance and decisiveness, as a proof of charge of a
criminal offence, is amongst others traceable decision of this
Court in <cite>Sharad Birdhichand Sarda Vs.
State of
Maharashtra 1984(4) SCC 116</cite>. The relevant excerpts from para
153 of the decision is assuredly apposite:
“153. A close analysis of this decision would show that
the following conditions must be fulfilled before a case
against an accused can be said to be fully established:
(1) the circumstances from which the conclusion of
guilt is to be drawn should be fully established.
It may be noted here that this Court indicated that the
circumstances concerned “must or should” and not
7
“may be” established. There is not only a grammatical
but a legal distinction between “may be proved” and
“must be or should be proved” as was held by this
Court in <cite>Shivaji Sahabrao Bobade & Anr. Vs. State
of Maharashtra [(1973) 2 SCC 793</cite> where the
observations were made:
accused must be
“Certainly, it is a primary principle that
the
and not
merely may be guilty before a court can
convict and the mental distance between
‘may be’ and ‘must be’ is long and divides
vague conjectures from sure conclusions.”
(2) the facts so established should be consistent only
with the hypothesis of the guilt of the accused, that is
to say, they should not be explainable on any other
hypothesis except that the accused is guilty,
(3) the circumstances should be of a conclusive nature
and tendency,
(4) they should exclude every possible hypothesis
except the one to be proved, and
(5) there must be a chain of evidence so complete as
not to leave any reasonable ground for the conclusion
consistent with the innocence of the accused and must
show that in all human probability the act must have
been done by the accused.”
12.
It has been further relied by this Court in <cite>Sujit Biswas Vs.
State of Assam 2013(12) SCC 406</cite> and <cite>Raja alias Rajinder Vs.
State of Haryana 2015(11) SCC 43</cite> and has been propounded
that while scrutinising the circumstantial evidence, it is the duty
of the Court to evaluate it to ensure the chain of events clearly
established and completely to rule out any reasonable likelihood
8
of innocence of the accused. It is true that the underlying
principle whether the chain is complete or not, indeed would
depend on the facts of each case emanating from the evidence
and there cannot be a straitjacket formula which can be laid
down for the purpose. It is always to be kept in mind that the
circumstances adduced when considered collectively, must lead
only to the conclusion that there cannot be a person other than
the accused who alone is the perpetrator of the crime alleged and
the circumstances must establish the conclusive nature
consistent only with the hypothesis of the guilt of the accused.
13. On analysis of the overall fact situation, we find that the
High Court in its impugned judgment has elaborately considered
the circumstantial evidence which has been adduced by the
prosecution and arrived to the conclusion that many important
and relevant witnesses have not been produced by the
prosecution on which a detailed reference has been made in para
23 of the impugned judgment which we consider it appropriate to
quote:
“23.
It has also to be mentioned that in the case
many important and relevant witnesses the
prosecution has not produced. As has been mentioned
9
above that the dead body of the deceased at which
place has been found, that the person who identified it
has the dead body of Bajranglal there has not been
produced. Dayaram and Gulab who lifted the dead
body from the railway track and kept in side those
Dayaram and Gulab also have not been produced.
According to P.W.5 Rajeshbhai Rameshchand to her
and her father gave information of the death of her
fatherinlaw Bajranglal, this Ramesh has not been
produced. The Samdhi of deceased Bajranglal and
Brijgopal, father of P.W. 5 Rajeshbai have not been
produced who are also the witnesses of Exhibit P.20,
P.21 and P.25 Memos. According to prosecution the
witnesses alleging the reason
for murder
Surendrasingh, Ramgopal, Ramswarup, Girraj Gupta,
Premchand and Shyambabu have not been produced.
The owner of the Auto Rickshaw Sobhagsingh has not
been produced. The motive of the incident, which
relation of Sulochana and Mahesh has been alleged
that Sulochana has not been produced. The witnesses
of Memos Exhibit P.13, P.15, P.41 etc. Dilipsingh has
not been produced. Witness Hemraj of Memos Exhibit
P.30, P.35 and P.36 an witness Manoj Vijay of Memo
Exhibit P.41 have not been produced. That Fazlur
Rahman Police Head Constable also has not been
produced who taking written report Exhibit P.24 had
gone to the police station and on this getting written
the F.I.R. Exhibit P.44 and taking that had come back
to S.H.O. at the site. P.W.2 Narendra taking with him
the aunt of Ramesh is alleged to have gone to Rajesh.
This aunt of Ramesh has not been produced. Witness
Madrasi, Bhoorsingh, Shambhusingh Kaushi etc.
shown in the site plan Exhibit P.25 the dead body lying
have not been produced. The witness of Exhibit P.20
Bharatram, Rais Mohammad, Surendrasingh and
Brijgopal have not been produced. The witness Balak
@ Mansingh and Imam of the Memo of arrest of the
accused Exhibit P.26, P.27, P.28 and P.32 have not
been produced.”
14. After hearing learned counsel for the parties and after
perusal of the impugned judgment and material of the case on
record, we are of the considered view that the prosecution has
10
failed to complete the chain of events leaving any reasonable
ground for the conclusion consistent with all human probability
that the act must have been done only by the respondents.
15. We find no error being committed by the High Court in
arriving to the conclusion as aforesaid noticed by us in the
impugned judgment dated 3rd January, 2012.
16. Consequently, both the appeals are wholly devoid of merit
and accordingly dismissed.
17. Pending application(s), if any, also stand disposed of.
|
2.
Feeling aggrieved and dissatisfied by the impugned
judgment and order dated 17.07.2015 passed by the High Court
at Guwahati in R.S.A. No. 173/2003, by which the High Court
has dismissed the said appeal preferred by the appellant
herein/plaintiff and has confirmed the judgment and decree
passed by the learned trial Court dismissing the suit, confirmed
2
by the first appellate Court, the original plaintiff has preferred the
present appeal.
3.
The facts leading to the present appeal in nut and shell are
as under:
3.1 That the appellant herein/original plaintiff (hereinafter
referred to as the ‘original plaintiff’) purchased the suit land by a
registered sale deed dated 06.01.1990 from Late Pranab Kumar
Bora, husband of original defendant no.2 and father of original
defendant nos. 3 to 8. It appears that the suit land was declared
as ceiling surplus land in the year 1988 and consequently the
same was acquired by the Government. However, subsequently
on 14.09.1990, the suit land was again declared ceiling free land.
That thereafter, the original plaintiff mutated the land in his
name vide order dated 18.12.1991 in Mutation Case No.94/91
92, and accordingly the name of the original plaintiff was
recorded in the Sadar Jamabandi. It appears that the original
defendant no.1, an ExPolice Officer. illegally entered into the suit
land on 09.04.1995. Therefore, the original plaintiff immediately
filed a suit in the Court of learned Civil Judge, Junior division,
which was numbered as Title Suit No. 230/1995, praying for
giving possession of the suit land by evicting defendant no.1. The
3
original plaintiff also prayed for a decree of declaration, declaring
that he has a right, title and interest over the suit land. The
original plaintiff also prayed for permanent injunction. That the
said suit was filed in the month of July, 1995.
3.2 That the learned trial Court decreed the suit by its judgment
and decree dated 28.08.1998 specifically holding that the original
plaintiff purchased the suit land by valid document and has got
right, title and interest over the suit land.
4.
Feeling aggrieved and dissatisfied with the judgment and
decree passed by the learned trial Court, the original defendant
no.1 filed Title Appeal No. 36/1998 before the first appellate
Court. At this stage, it is required to be noted that so far as
original defendant nos. 2 to 4 are concerned, as such, they did
not challenge the judgment and decree passed by the learned
trial Court holding that the original plaintiff purchased the suit
land by valid document. That the first appellate Court, by its
judgment and order dated 15.09.1999, allowed the said appeal
preferred by original defendant no.1 and remanded back the
matter to the learned trial Court, framing an additional issue to
the effect that “Whether the suit land was declared ceiling
surplus land and as such it was acquired by the Government in
4
the year 1988 and as such whether the vendor had any saleable
right to sell the suit land to the plaintiff on 6.1.1990”.
4.1 That thereafter on remand, the learned trial Court
considering the additional issue dismissed the suit by holding
that disputed land was declared as ceiling surplus land by the
Government and therefore as such the vendor had no right to sell
the suit land by sale deed dated 06.01.1990, and there being so,
the original plaintiff has no right, title and interest over the suit
land.
4.2 The judgment and decree passed by the learned trial Court
came to be confirmed by the first appellate Court, by judgment
and order dated 04.06.2003. At this stage, it is required to be
noted that while dismissing the appeal and concurring with the
finding recorded by the learned trial Court that the vendor of the
original plaintiff had no right to sell the suit land after the suit
land was declared as ceiling surplus land, the first appellate
Court also came to the conclusion that the defendants’ rights
over the suit land also could not be established under Section
53A of the Transfer of Property Act (hereinafter referred to as the ‘
T.P.Act’). At this stage, again it is required to be noted that
original defendant no.1 did not file any appeal against the said
5
observation, and as such, the same has attained finality, which
means original defendant no.1’s right over the suit land was also
declined. The judgment and order passed by the first appellate
Court, confirming the judgment and decree passed by the learned
trial Court dismissing the suit, has been further confirmed by the
High Court, by the impugned judgment and order. Hence, the
original plaintiff has preferred the present appeal.
5. Ms. V. Mohana, learned senior advocate, appearing on
behalf of the appellant/original plaintiff, has vehemently
submitted that all the Courts below have not at all considered
Section 43 of the Transfer of Property Act. It is vehemently
submitted by Ms. Mohana, learned senior counsel appearing on
behalf of the original plaintiff that it is an admitted position that
after the execution of the sale deed dated 06.01.1990,
subsequently the suit land was made ceiling free on 14.09.1990,
and therefore the sale deed became a valid sale deed. It is
submitted, that in view of Section 43 of the T.P. Act, the rights of
the original plaintiff in the suit land, pursuant to sale deed dated
16.01.1990 are protected. In support of her above submission,
Ms. Mohana, learned counsel appearing on behalf of the original
plaintiff has heavily relied upon the decision of this Court in the
6
case of <cite>Ram Pyare vs. Ram Narain and others, (1985) 2 SCC 162</cite>.
She has also relied upon another decision of this Court in the
case of <cite>Jumma Masjid vs. Kodimaniandra Deviah, AIR 1962 SC
847</cite>.
5.1 Ms. Mohana, learned senior counsel appearing on behalf of
the original plaintiff has further submitted that all the Courts
below have materially erred in not appreciating the fact that as
such it was the original plaintiff who approached the Court for
declaration and permanent injunction, claiming rights on the
basis of a registered sale deed dated 06.01.1990, and the cause
of action arose when original defendant no.1 illegally entered into
the suit land. It is submitted that as such the first appellate
Court has specifically held against original defendant no.1 that
the original defendant no.1 also has no right, title and interest on
the suit land on the basis of the agreement to sell as none of the
ingredients of Section 53A of the Act are satisfied. It is submitted
that as such the aforesaid finding recorded by the first appellate
Court had attained finality, and therefore it is concluded that
original defendant no.1 had no right, title and interest in the land
in question. It is further submitted by Ms. Mohana, learned
senior counsel appearing on behalf of the original plaintiff that so
7
far as original defendant nos. 2 to 8 – legal heirs of the original
vendor are concerned, they never challenged the registered sale
deed dated 06.01.1990, and they also never claimed any right,
title or interest in the suit land.
5.2 Making the above submissions, and relying upon the above
decisions, it is prayed to allow the present appeal, set aside the
judgment and decree passed by the learned trial Court,
confirmed by the first appellate Court and the High Court, and
consequently to decree the suit filed by the original plaintiff.
6.
The present appeal is opposed by Shri Hariharan, learned
advocate appearing on behalf of legal heirs nos. 1/1 and 1/6 of
the deceased original defendant no.1. Office report dated
22.12.2018 indicates that service on legal heirs nos. 1/2,1/4 and
1/5 is complete but no one has entered appearance on their
behalf. The said office report also indicates that notice sent to
legal heir no. 1/3 has been received back with postal remarks
“refused” and as such service is deemed to be complete upon her.
The said office report further indicates that service is also
complete on respondent nos. 2 to 8 but no one has entered
appearance on their behalf.
8
6.1 Shri Hariharan, learned advocate appearing on behalf of
original defendant no.1 (now on behalf of legal heirs nos. 1/1 and
1/6) has vehemently submitted that there are concurrent
findings of facts by all the Courts below that at the time when the
sale deed was executed in favour of the original plaintiff, i.e., on
06.01.1990, the land in question was ceiling surplus land, and
therefore was a government land, and therefore the original
vendor was not the owner of the suit land, and therefore had no
right, title or interest in the suit land, and therefore the plaintiff
had no right, title or interest in the suit land on the basis of the
registered sale deed dated 06.01.1990. It is submitted therefore
all the Courts below have rightly dismissed the suit.
6.2 So far as the reliance placed by the learned senior counsel
appearing on behalf of the plaintiff on Section 43 of the T.P. Act
is concerned, it is vehemently submitted by Shri Hariharan that
by getting the protection under Section 43 of the T.P. Act, the
vendee has to prove that the transferor acted fraudulently or
erroneously represented. It is submitted by Shri Hariharan,
learned counsel appearing on behalf of the legal heirs of original
defendant no.1 that in the present case the ingredients of Section
9
43 of the T.P. Act are not satisfied, and therefore the rights of the
original plaintiff are not protected under Section 43 of the Act.
6.3 Making the above submissions, it is prayed to dismiss the
appeal.
7.
Heard learned counsel on behalf of the respective parties at
length.
7.1 At the outset, it is required to be noted that the following
facts are not in dispute:
i)
that the original plaintiff purchased the suit land by a
registered sale deed dated 06.01.1990, executed by late Pranab
Kumar Bora on payment of full sale consideration;
ii)
that as on 06.01.1990, the suit land was ceiling surplus
land and the government was the owner;
iii)
that the land in question became ceiling free land on
14.09.1990;
iv)
that the name of the original plaintiff was mutated in the
revenue record – Sadar Jamabandi vide order dated 18.12.1991
in Mutation Case No. 94/9192;
v)
that neither the vendor nor the heirs of the vendor
challenged order dated 18.12.1991 by which the name of the
plaintiff was mutated in the revenue record;
10
vi)
that when the earlier suit was decreed by the learned trial
Court, it was only the original defendant no.1 who challenged the
judgment and decree passed by the learned trial Court and no
appeal was preferred by original defendant nos. 2 to 7, heirs of
the original vendor; and
vii)
that in the second round of litigation, the first appellate
Court specifically observed against original defendant no.1 that
he has also no right, title or interest in the suit land on the basis
of prior agreement to sell and the said finding had attained
finality.
7.2 It is required to be noted that as such the heirs of the
original vendor are not contesting the proceedings and it is only
original defendant no.1 (now the legal heirs of original defendant
no.1) are contesting the proceedings. Thus, it appears and/or
nothing is on record to show that it was the case on behalf of the
original defendants, more particularly on behalf of the vendor
that the original plaintiff was informed specifically at the time of
execution of the sale deed dated 06.01.1990 that the land in
question is ceiling surplus land. In the light of the aforesaid
facts, Section 43 of the T.P. Act, which is heavily relied upon on
behalf of the original plaintiff is required to be considered.
11
7.3 Section 43 of the Act reads as under:
“43. Transfer by unauthorised person who
subsequently acquires interest in property
transferred – where a person [fraudulently or]
erroneously represents that he is authorised to
transfer certain immovable property and professes
to transfer such property for consideration, such
transfer shall, at the option of the transferee,
operates on any interest which the transferor may
acquire in such property at any time during which
the contract of transfer subsists.
Nothing in this Section shall impair the right of
transferees in good faith for consideration without
notice of the existence of the said option”.
7.4 Section 43 of the T.P. Act provides that where a person
fraudulently or erroneously represents that he is authorised to
transfer certain immovable property and professes to transfer
such property for consideration, such transfer shall, at the option
of the transferee, operates on any interest which the transferor
may acquire in such property at any time during which the
contract of transfer subsists. Thus, if at the time of transfer, the
vendor/transferor might have a defective title or have no title
and/or no right or interest, however subsequently the transferor
acquires the right, title or interest and the contract of transfer
subsists, in that case at the option of the transferee, such a
transfer is valid. In such a situation, the transferor cannot be
12
permitted to challenge the transfer and/or the transferor has no
option to raise the dispute in making the transfer.
7.5 The intention and objects behind Section 43 of the T.P. Act
seems to be based on the principle of estoppel as well as the
equity. The intention and objects seems to be that after
procuring the money (sale consideration) and transferring the
land, thereafter the transferor is estopped from saying that
though he has sold/transferred the property/land on payment of
sale consideration, still the transfer is not binding to him. That is
why Section 43 of the T.P. Act gives an option to the transferee
and not the transferor. The intention of Section 43 of the Act
seems to be that no body can be permitted to take the benefits of
his own wrong. In the facts and circumstances of the case,
Section 43 of the Act would come into play and protect the rights
of the original plaintiff.
8.
An identical question came to be considered by this Court in
the case of <cite>Ram Pyare (supra)</cite>. In the aforesaid decision, on
considering Section 43 of the Act, it is observed and held by this
Court that as the sale deed in favour of the vendee was result of
an erroneous representation of the vendor, thereafter the sons of
the vendor, cannot claim to be transferees in good faith and
13
therefore their suit for cancellation of the sale deed would not be
maintainable. In the aforesaid decision, this Court considered
the following observations of this Court in another decision in the
case of <cite>Jumma Masjid (supra)</cite>:
“This reasoning is open to the criticism that it
ignores the principle underlying Section 43. That
section embodies, as already stated, a rule of
estoppel and enacts that a person who makes a
representation shall not be heard to allege the
contrary as against a person who acts on that
representation. It is immaterial whether the
transferor acts bona fide or fraudulently in making
the representation. It is only material to find out
whether in fact the transferee has been misled. It is
to be noted that when the decision under
consideration was given, the relevant word
of Section 43 were, "where a person erroneously
represents", and now, as amended by Act 20 of
1929, they are "where a person fraudulently or
erroneously represents", and that emphasises that
for the purpose of the section it matters not
whether the transferor act fraudulently or
innocently in making the representation, and that
what is material is that he did make a
representation and the transferee has acted on it.
Where the transferee knew as a fact that the
transferor did not possess the title which he
represents he has, then he cannot be said to have
acted on it when taking a transfer. Section
43 would then have no application, and the
transfer will fail under Section 6(a). But where the
transferee does act on the representation, there is
no reason why he should not have the benefit of
the equitable doctrine embodied in Section 43,
however fraudulent the act of the transferor might
have been.”
14
9.
At this stage, it is required to be noted that as observed
hereinabove in the present case as such the heirs of the original
vendor are not contesting the proceedings and they have never
disputed the right, title or interest of the original plaintiff, and it
is the original defendant no.1 and now his heirs who are
contesting the proceedings. Heirs of the original vendor have
never initiated any proceedings for cancellation of the registered
sale deed dated 06.01.1990, and/or they have never claimed any
right, title or interest in the suit land after the registered sale
deed dated 06.01.1990. As such, in the case of Ram Pyare
(supra), applying Section 43 of the Act, this Court has specifically
observed and held that once there was an erroneous
representation by the vendor, thereafter the suit by the heirs of
the vendor for cancellation of the sale deed would not be
maintainable. Under the circumstances and in the facts and
circumstances of the case, the rights of the original plaintiff in the
suit land by a sale deed dated 06.01.1990 would be protected by
operation of Section 43 of the Act. Therefore, the finding recorded
by all the Courts below that the original plaintiff has no right, title
or interest in the suit land on the basis of a registered sale deed
15
dated 06.01.1990 cannot be sustained and the same deserves to
be quashed and set aside.
10. Now so far as the other reliefs prayed in the suit, namely, (i)
to get back a decree for return of possession from original
defendant no.1; and (ii) that a decree for permanent injunction
are concerned, deserve to be granted, as the first appellate Court
has specifically observed and held against original defendant no.1
that he has no right, title or interest in the suit land and the said
finding has attained finality. Once, it is held that he has no right,
title or interest in the suit land, and that the plaintiff has a right,
title or interest on the basis of a registered sale deed dated
06.01.1990, and he claimed to be in possession on the basis of a
registered sale deed dated 06.01.1990, which came to be disputed
by original defendant no.1 subsequently, the defendant no.1
cannot be permitted to be continue in possession, and therefore
the original plaintiff is entitled to other reliefs also.
11. For the reasons stated above, the present appeal succeeds
and is allowed. The impugned judgment and order passed by the
High Court, as also, the judgment and decree passed by the
learned trial Court, confirmed by the first appellate Court, are
hereby quashed and set aside. Consequently, Title Suit No.
16
230/1995 preferred by the original plaintiff is hereby decreed in
toto. However, in the facts and circumstances of the case, there
shall be no order as to costs.
|
(2) This appeal arises out of judgment of the High Court of
Judicature at Madras in Criminal Appeal No.375 of 2007 dated 7th
September, 2015 in and by which the High Court affirmed the
conviction of the appellant-accused under Section 306 I.P.C.
and reduced the sentence of imprisonment of the appellant from
three years to three months.
(3) Case of the prosecution is that on 2nd December, 2001, the
appellant-accused advanced a sum of Rs.80,000/- by way of debt
to the deceased, by name – Rajagopal, and to that effect he
obtained a promissory note. On 7th December, 2002, the
appellant-accused demanded Rs.50,000/- towards the interest and
another Rs.50,000/- towards principal amount. On 21st June,
2003, in the presence of some witnesses, the deceased stated
2
that he would discharge the entire loan amount; but he was not
able to keep up his promise. Due to the alleged torture by the
appellant-accused, on 21st June, 2003 at about 11:50 p.m. the
deceased committed suicide. The deceased is said to have left
suicide note (M.O.1) stating that he is unable to repay the
loan and taking the extreme step.
(4) Upon consideration of oral evidence and suicide note
(M.O.1), the Trial Court held that the prosecution has
established the guilt of the accused under Section 306 I.P.C.
and sentenced him to undergo rigorous imprisonment for three
years and also imposed fine of Rs.500/-.
(5) In the appeal filed by the appellant-accused, the High
Court held that the receipt of money and the execution of the
promissory note and the alleged torture committed by the
appellant has been proved by the prosecution. Referring to the
evidence of PW-1 to PW-5, who are the wife, daughters and the
sons of the deceased, and also suicide note (M.O.1), the High
Court has held that the prosecution has clearly established the
guilt of the appellant-accused under Section 306 I.P.C. and on
those findings affirmed the conviction of the appellant-
accused; but reduced the sentence of imprisonment, as aforesaid
in para ‘2’.
(6) We have heard Mr. S. Hari Haran, learned counsel appearing
for the appellant, and Mr. M. Yogesh Kanna, learned counsel
appearing for the respondent-State of Tamil Nadu and also
3
perused the impugned judgment and the evidence/materials on
record.
(7) As pointed out by the High Court, of course PW-1 to PW-5
have spoken about the borrowing of money by the deceased and
also the execution of the promissory note. The sheet anchor of
the prosecution’s case to prove the guilt of the accused is the
suicide note (M.O.1)-written by the deceased. On perusal of
suicide note (M.O.1), it is seen that in M.O.1 the deceased has
written about the financial difficulties faced by him and his
inability to meet the financial crunch and also his inability
to repay the same. The tenor of M.O.1 only shows that the
deceased was subjected to pressure for payment and was facing
the financial difficulty. In M.O.1 (letter) there is nothing
to indicate that there was instigation by the appellant-accused
which had driven the deceased to take the extreme step of
committing suicide.
(8) The essential ingredients of the offence under Section 306
I.P.C. are: (i) the abetment; (ii) the intention of the accused
to aid or instigate or abet the deceased to commit suicide.
The act of the accused, however, insulting the deceased by
using abusive language will not, by itself, constitute the
abetment of suicide. There should be evidence capable of
suggesting that the accused intended by such act to instigate
the deceased to commit suicide. Unless the ingredients of
instigation/abetment to commit suicide are satisfied, accused
cannot be convicted under Section 306 I.P.C.
4
(9) In our considered view, in the case at hand, M.O.1-letter
and the oral evidence of PW-1 to PW-5, would not be sufficient
to establish that the suicide by the deceased was directly
linked to the instigation or abetment by the appellant-
deceased. Having advanced the money to the deceased, the
appellant-accused might have uttered some abusive words; but
that by itself is not sufficient to constitute the offence
under Section 306 I.P.C. From the evidence brought on record
and in the facts and circumstances of the case, in our view the
ingredients of Section 306 I.P.C. are not established and the
conviction of the appellant-accused under Section 306 I.P.C.
cannot be sustained.
(10)
In the result, the impugned order is set aside and
the appeal is allowed.
|
1. The petitioners made an application for establishment of a
new medical college at Banthra, Shahjahanpur, U.P., in the
name and style of Varunarjun Medical College from
academic session 2016-17 onwards, to the Ministry of
Health and Family Welfare, Government of India. The
Ministry forwarded that application to the Medical Council
of India (for short “MCI”) for evaluation and making
recommendations under Section 10A of the Indian Medical
Council Act, 1956 (for short “the 1956 Act”). The MCI
conducted an assessment of the petitioner college on 12th
2
and 13th January, 2016. On the basis of the assessment
report, the Executive Committee of MCI, in its meeting held
on 30th January, 2016, decided to make negative
recommendations, in view of a large number of deficiencies
noticed in the assessment report. A formal communication
in that behalf was sent to the Central Government by MCI
vide letter dated 31st January, 2016. The Ministry then
afforded an opportunity of hearing to the college before a
Hearing Committee on 25th February, 2016. The Hearing
Committee concurred with the recommendation of MCI and
submitted its observations to the Ministry to disapprove the
proposal. Later on, compliance verification assessment was
done by MCI on 30th March, 2016, which report was duly
considered by the Executive Committee of MCI in its
meeting held on 13th May, 2016. Once again, MCI in its
meeting held on 13th May, 2016 decided to give negative
recommendations in view of the deficiencies noticed in the
compliance verification assessment. That opinion was
formally communicated by the MCI to the Ministry vide
letter dated 14th May, 2016. The Ministry accepted the
recommendation of MCI and disapproved the application for
3
establishment of a new medical college for academic session
2016-17 vide letter dated 8th June, 2016.
2. The Oversight Committee (for short “OC”) constituted by
this Court, however, issued a directive to the Ministry to
obtain fresh compliance from the college and forward it to
MCI. Pursuant to the said directive, MCI submitted its
compliance to the Ministry citing various reasons. However,
the OC approved the scheme of establishment of a new
medical college with annual intake of 150 students for the
academic year 2016-17, on certain conditions. The Central
Government, therefore, issued a formal approval-cum-Letter
of Permission (for short “LOP”) on 12th September, 2016
incorporating the conditions imposed by the OC.
3. As per the conditions noted in the said LOP, an assessment
with regard to verification compliance submitted by the
college was conducted by the MCI on 18th & 19th November,
2016. During the said verification, certain deficiencies were
noticed which were mentioned in the assessment report.
The assessment report was duly considered by the
Executive Committee of MCI in its meeting held on 22nd
December, 2016. In view of the deficiencies, MCI decided to
send a negative recommendation to the Ministry. The
deficiencies noticed were as follows:
4
“i. Deficiency of faculty is 16.79% as detailed in the report.
ii. Shortage of Residents was 21.73% as detailed in the
report.
iii. There was only 1 Minor Operation on day of assessment.
iv. There was 1 normal Delivery & NIL Caesarean Section on
day of assessment.
v. ICUs: There was only 1 patient each in MICU & SICU and
2 patients each in ICCU & PICU/NICU on day of
assessment.
vi. Details of Paramedical & Non-teaching staff available in
the Institute are not provided.
vii. MRD: ICD X classification of diseases is not followed for
indexing.
viii. Central Library: It is not air-conditioned.”
4. The decision of the MCI was formally communicated to the
Ministry vide letter dated 26th December, 2016. After receipt
of the recommendation from the MCI, the Ministry decided
to afford a personal hearing to the college on 17th January,
2017 before the Director General of Health Services (DGHS).
The Hearing Committee considered the oral and written
submissions of the college, but was not satisfied with the
explanation given by the petitioners for want of proper
evidence. The Hearing Committee submitted its report to
5
the Ministry, which in turn forwarded the same to the OC
for guidance. The OC vide letter dated 14th May, 2017
conveyed its views to the Ministry as follows:
(i)
(ii)
Faculty: In the Standard Assessment Forms (SAF),
Principal has mentioned that 4 faculty members had gone
for exchange/withdrawal of money from the bank with
permission of the Principal and 3 were on sanctioned
leave. Considering this explanation, the deficiency would
be 6.15%, which is within the acceptable limits.
Residents:- In the SAF, Principal has mentioned that 5
Residents had gone for exchange/withdrawal of money
from the bank with permission of the Principal and 3 were
on sanctioned leave. Considering these residents, the
deficiency would be 4.34%, which is within the
acceptable limits.
(iii) Minor operation:- This deficiency is subjective. No MSR.
(iv) Deliveries:- This deficiency is subjective. No MSR.
(v)
ICCU & PICU/NICU:- This deficiency is subjective. No
MSR.
(vi) Non-teaching staff:- There is no such mention in SAF
2.24.
(vii) Central Library:- There is no such mention in the previous
assessment report. However, the explanation of the
College is acceptable.
LOP Confirmed.”
5. The Ministry after considering the recommendation of the
MCI, the report of the DGHS and the views received from
the OC, finally chose to accept the recommendation of the
MCI. The decision of the Ministry was communicated to the
petitioner college vide letter dated 31st May, 2017, debarring
the college from admitting students for two years i.e.
6
2017-18 & 2018-19, and also authorising the MCI to
encash the bank guarantee.
6. Feeling aggrieved by the said decision, the petitioners filed a
writ petition before the Allahabad High Court, being WP (C)
No.15302 of 2017 which was disposed of on 8th August,
2017 following the decision of this Court in the case of
<cite>Glocal Medical College & Super Speciality Hospital
and Research Centre Vs. Union of India and Anr.1</cite>,
decided on 1st August, 2017.
7. Pursuant to the aforementioned decision of the High Court,
the Ministry granted a hearing to the petitioner college on
16th August, 2017. It appears that the Hearing Committee
considered the record, oral and written submissions of the
college also the fresh representation given by the college.
The Hearing Committee then submitted its report to the
Ministry. Relying on the said recommendation of the
Hearing Committee, the Ministry vide order dated 19th
August, 2017 reiterated its earlier decision dated 31st May,
2017, debarring the college from admitting students for a
period of two years i.e. 2017-18 & 2018-19 and also,
authorising MCI to encash the bank guarantee of Rs.2
1
2017 (8) SCALE 356
7
Crore. This decision of the Ministry was communicated to
the petitioners. The crucial part of this decision is in
paragraphs 17 and 18 which read as follows:
“17. Now, therefore, in compliance with the above direction
of Court, the Ministry granted hearing to the college on
16.8.2017. The Hearing Committee after considering the
records and oral & written submission of the college
submitted its report to the Ministry. The findings of the
Hearing Committee are as under:
The college has tried to explain deficiency of 4
faculty and 5 residents in terms of visit to bank for
currency exchange in the wake of demonetization.
This could be a plausible explanation but the
Committee is not inclined to accept it as it cannot be
proved. Further, such absence during duty hours
cannot be overlooked. The Committee inquired from
the college why the 5 residents on night off could not
come, even late, for the head count. They would have
been accordingly reflected as such in the SAF.
The college claimed 6 minor operations on the
day of assessment but could not produce supportive
document or evidence, which they claimed to have
submitted in the earlier hearing.
The contention of college on MRD and library is
accepted and the deficiency may not exist. The
college should be having paramedical non teaching
staff but they did not produce the list/documents
before the Hearing Committee.
In view of the above the Committee agrees with
the decision of the Ministry vide letter dated
31.05.2017 to debar the college for two years and
also permit MCI to encash bank guarantee.
18. Accepting the recommendations of the Hearing
Committee, the Ministry reiterates its earlier decision dated
31.05.2017 to debar the college from admitting students for
a period of two years i.e. 2017-18 and 2018-19 and also to
authorize MCI to encash the Bank Guarantee of Rs.2 Crore.”
8
8. Aggrieved, the petitioners have prayed for quashing of the
said order and further, directing respondent No.1 (Union of
India through Secretary, Ministry of Health and Family
Welfare) to issue first renewal of Letter of Permission for
admission of the 2nd batch of 150 MBBS students in the
petitioner college for the academic session 2017-18 and also
refrain from encashing the bank guarantee dated 15th
September, 2017 offered by the petitioners in favour of MCI
in the sum of Rs.2 Crore.
9. According to the petitioners, they had placed all the relevant
material before the Competent Authority of the Central
Government, clearly indicating that the deficiencies noticed
in the concerned assessment report were insignificant and
within permissible limit. Our attention was invited to the
communication sent by the MCI dated 26th December, 2016,
highlighting the deficiencies noticed by the Council
Assessors on 18th & 19th November, 2016. The petitioners
have also relied on the explanation offered by the petitioners
before the Hearing Committee as well as OC. It is
contended that the explanation found favour with the OC.
The Competent Authority of the Central Government has,
9
however, completely disregarded the opinion of the OC. It
was then contended that the recent report of the Hearing
Committee does not take the matter any further. The
relevant portion of the said report has been extracted in
paragraph 17 of the impugned decision of the Ministry. On
the one hand, the Hearing Committee observed that the
explanation offered by the petitioner college regarding
absence of faculty and residents was plausible, but it still
chose to disregard that explanation on the specious ground
that it was not proved. Further, no analysis as to why the
opinion of the OC should be deviated is found in the
observations of the Hearing Committee. It is contended
that the absence of faculty and residents on the day of
inspection ought to be excluded, in which case the
deficiency of faculty would stand reduced to only 6.15% and
of residents to only 4.34%. Further, the adverse
observations noted by the Hearing Committee with regard to
minor operations and paramedical non-teaching staff is not
consistent with the record produced by the petitioner
college during the hearing. It is submitted that in view of
the recent pronouncements of this Court in respect of other
10
institutions, similar relief be given to the petitioner
institution. A comparative chart of the deficiencies in
respect of the said institutions was produced before us to
contend that in so far as the petitioner college is concerned,
the deficiencies were marginal and relatively less. The main
grievance of the petitioners is that despite clear directions
given by the Court to consider the proposal of the petitioner
college after taking into account the material produced and
explanation offered by the petitioners, including the fresh
representation, neither the Hearing Committee nor the
Competent Authority of the Central Government has
adverted to the explanation and material relied upon by the
petitioners. Moreso, neither the Hearing Committee nor the
Competent Authority of the Central Government has
analysed the opinion of the OC which had accepted the
explanation or recorded any reason to deviate from the
same. The fresh decision of the Competent Authority of the
Central Government is, again, a mechanical order, if not
perverse. It is against the spirit of the directions issued by
the Court to reconsider the proposal afresh and record
reasons. It is, therefore, submitted that the impugned
11
decision deserves to be quashed and set aside and further
directions should be issued to the respondents to issue
confirmation of Letter of Permission in favour of the
petitioner college for the academic session 2016-17 and also
allow the petitioner college to admit 150 students in the
second batch of the MBBS course for the academic session
2017-18.
10.
Per contra, the respondents submit that the final
decision of the Competent Authority of the Central
Government is just and proper, in the fact situation of the
present case. Inasmuch as the Hearing Committee did not
accept the explanation offered by the petitioner regarding
the deficiencies relating to faculty members and residents.
The Hearing Committee was also not convinced with the
explanation given by the petitioners about their claim of 6
(six) minor operations as the college had failed to produce
supporting documents and evidence in that regard.
Similarly, the college failed to produce material to
substantiate that the college had paramedical non-teaching
staff which was one of the essential requirements. Learned
counsel for the respondents submitted that the recent
12
decisions rendered by this Court on which reliance has
been placed, were on the facts of the concerned case. Our
attention was also invited to the relevant provisions of the
Act, Regulations and Statutory Scheme formulated for
consideration of application for permission to establish a
medical college. It is submitted that the assessment done by
the MCI in the present case was with regard to the
verification of the compliance submitted by the college for
considering the proposal for confirmation of conditional LOP
granted to the petitioner college for the academic session
2016-2017. For that reason, the minimum standards
regarding infrastructure and academic requirements as
postulated in the Statutory Scheme must govern the
consideration of the proposal. The benchmark regarding
infrastructure and academics to be fulfilled by the applicant
college for permission to establish medical college are
pre-conditions. However, without fulfilment of those
conditions, conditional LOP was granted to the petitioner
college on the basis of direction issued by the OC, which
was then acted upon by the Central Government by issuing
a formal LOP for the academic session 2016-2017 on
13
conditions specified by the OC. The college has failed to
fulfil those conditions as was noticed during the verification
of compliance. It is submitted that no indulgence be shown
to the petitioner college, much less, grant further relief
claimed to allow the petitioner college to admit students in
the second batch of the MBBS course for the academic
session 2017-18.
11.
Heard Mr. Rajiv Dhavan, learned senior counsel along
with Mr. Abdhesh Chaudhary, learned counsel for the
petitioner, Mr. Maninder Singh, learned Additional Solicitor
General for Union of India and Mr. Vikas Singh, learned
senior counsel along with Mr. Gaurav Sharma, learned
counsel for the Medical Council of India.
12.
We must first answer the submission of the petitioners
that the satisfaction recorded by the OC whilst accepting
the explanation offered by the petitioners was binding on
the Central Government. We do not agree with this
submission. It is one thing to say that the
satisfaction/opinion recorded by the OC constituted by this
Court is a relevant matter and which must receive due
attention of the Hearing Committee as well as the Central
14
Government. But it is not possible to accept the contention
that the opinion of OC must bind the Hearing Committee
and the Central Government whilst discharging their
statutory duties, moreso, when the legislative scheme of the
Act has bestowed the final authority upon the Central
Government to grant or refuse to grant permission in terms
of Section 10-A of the Act.
13.
Having said this, we may now advert to the
deficiencies noticed in the assessment report regarding
verification of compliance submitted by the college. The
deficiencies noticed in the said report in respect of faculty
members and residents were sought to be explained by the
college - that 4 (four) faculty members and 5 (five) residents
had gone for exchange/withdrawal of money from the bank
with permission of the Principal and 3 (three) were on
sanctioned leave. This explanation commended to the OC as
plausible and on that basis, the OC was of the view that
deficiency in respect of faculty members would stand
reduced to the permissible limit.
Hence, the OC
recommended confirmation of LOP. The Hearing Committee,
however, observed that the petitioner college did not
15
substantiate the stand so taken. Further, absence of such
large number of faculties and residents during
working-duty hours could not be countenanced.
Additionally, the Hearing Committee was of the view that
the college was not able to explain the absence of 5 (five)
residents who were on night off and yet could not come,
even late, for the head count. Besides, no entry to that effect
was recorded in the Standard Assessment Forms (for short,
“SAF”). The OC, however, has not commented on this aspect
of the matter at all. In our opinion, the view taken by the
Competent Authority of the Central Government is a
possible view.
The pre-conditions to maintain high
academic standards for imparting MBBS course cannot be
undermined. In this case, the deficiency of faculty and
residents was significant, besides the other two deficiencies
taken note of by the Hearing Committee and the Central
Government in the impugned decision. For that, the college
did not produce supportive documents or evidence in
respect of its claim of 6 (six) minor operations and list of
paramedical non-teaching staff. These deficiencies cannot
16
be treated as trivial or unrelated to maintenance of high
standards of imparting medical education.
14.
We are conscious of the fact that the proposal under
consideration was for establishment of a new medical
college from academic session 2016-17 and that has to be
examined keeping in mind the norms specified in the
statutory scheme formulated regarding permission to
establish a new medical college. That scheme postulates the
minimum standard of education, which has been
formulated by the MCI in terms of Section 19-A of the Act.
The scheme provides for minimum infrastructure facilities
and staff requirements for 100 admissions. It also provides
guidance as to how deficiency in respect of those matters
should be calculated. The Medical Council of India has
published those norms and the schemes for requirements to
be fulfilled by the applicant College(s) for obtaining Letter of
Intent and Letter of Permission for establishment of a new
medical college and for yearly renewal under Section 10-A of
the Act. Inter alia, it provides as follows:-
“Notes:
For purpose of working out the deficiency:
(1) The deficiency of teaching faculty and Resident Doctors shall be
17
counted separately.
(A) For Teaching Faculty:
(a) For calculating the deficiency of faculty, Prof. Assoc Prof., Asst. Prof & Tutor
in respective departments shall be counted together.
(b) Any excess teaching faculty in higher cadre can compensate the deficiency of
lower cadre of the same department only.
(c) Any excess teaching faculty of lower cadre/category in any department
cannot compensate the deficiency of any teaching faculty in the higher
cadre/category of the same department or any other department. e.g. excess of
Assistant Professor cannot compensate the deficiency of Associate Professor or
Professor.
(d) Excess/Extra teaching faculty of any department cannot compensate the
deficiency of any teaching faculty in any other department.
(B) For Resident Doctors:
(a) Excess of SR can be compensated to the deficiency of JR of the same
department only.
(b) Excess SR/JR of any department cannot compensate the deficiency of SR/JR
in any other department.
(c)Any excess of JR cannot compensate the deficiency of SR in same or any other
department.
(d) Any excess/extra teaching faculty of same or any other department cannot
compensate the deficiency of SR/JR.
e.g. excess of Assistant Professor cannot compensate the deficiency of SR or JR.
(2) A separate department of Dentistry/Dental faculty is not required where a
dental college is available in same campus/city and run by the same
management.
(3) College running PG programme require additional staff, beds & other
requirements as per the PG Regulations – 2000.
Designat
ion
LOP
(1st Batch)
Ist Renewal
(2nd Batch)
Faculty
total
Resident
Total
59
45
85
47
IInd
Renewal
(3rd Batch)
89
IIIrd
Renewal
(4th Batch)
97
IVth
Renewal
(5th Batch)
106
47
54
62
Recog-
nition
106
62
15.
It may be useful to advert to the Scheme dealing with
grant of permission as substituted in terms of Gazette
Notification dated 08.02.2016. The same reads thus:-
18
“8. GRANT OF PERMISSION:
(i) The Central Government, on the recommendation of the
Council for Letter of Permission, may issue a letter to set up a
new medical college with such conditions or modifications in the
original proposal as may be considered necessary. This letter
can also include a clear cut statement of preliminary
requirements to be met in respect of buildings, infrastructural
facilities, medical and allied equipments, faculty and staff
before admitting the first batch of students. The formal
permission may be granted after the above conditions and
modifications are accepted and performance bank guarantee for
the required sums are furnished by the person and after
consulting the Medical Council of India.
(1) The formal permission may include a time bound programme
for the establishment of the medical college and expansion of
the hospital facilities. The permission may also define annual
targets as may be fixed by the Council to be achieved by the
person to commensurate with the intake of students during the
following years.
The following shall be added:
“(3)(1).
The permission to establish a medical
college and admit students may be granted initially for a
period of one year and may be renewed on yearly basis
subject to verification of the achievements of annual
targets. It shall be the responsibility of the person to
apply to the Medical Council of India for purpose of
renewal six months prior to the expiry of the initial
permission. This process of renewal of permission will
continue till such time the establishment of the medical
college and expansion of the hospital facilities are
completed and a formal recognition of the medical
college is granted. Further admissions shall not be
made at any stage unless the requirements of the
Council are fulfilled. The Central Government may at
any stage convey the deficiencies to the application and
provide him an opportunity and time to rectify the
deficiencies.
PROVIDED that in respect of
(a) Colleges in the stage upto II renewal (i.e.
Admission of third batch):
If it is observed during any regular inspection of
the institute that deficiency of teaching faculty
19
and/or Residents is more than 30% and/or bed
occupancy is<60% , such an institute will not be
considered for renewal of permission in that
Academic Year.
(b) Colleges in the stage from III renewal (i.e.
Admission of fourth batch till recognition of the
institute for award of M.B.B.S. degree:
If it is observed during any regular inspection of
the institute that the deficiency of teaching faculty
and/or Residents is more than 20% and/or bed
occupancy is <70% , such an institute will not be
considered for renewal of permission in that
Academic Year.
(c ) Colleges which are already recognized for
award of M.B.B.S. degree and/or running
Postgraduate Courses:
If it is observed during any regular inspection of
the institute that the deficiency of teaching faculty
and/or Residents is more than 10% and/or bed
occupancy is <80%, such an institute will not be
considered for processing applications for
postgraduate courses in that Academic Year and
will be issued show cause notices as to why the
recommendation for withdrawal of recognition of
the courses run by that institute should not be
made for Undergraduate and Postgraduate
courses which are recognized u/s 11(2) of the
IMPC Act, 1956 along with direction of stoppage
of admissions in permitted Postgraduate courses.
(c) Colleges which are found to have employed
teachers with faked/forged documents:
If it is observed that any institute is found to have
employed a teacher with faked/forged documents
and have submitted the Declaration Form of such
a teacher, such an institute will not be considered
for renewal of permission/recognition for award
of M.B.B.S. degree/processing the applications
for postgraduate courses for two Academic Years
– i.e. that Academic Year and the next Academic
Year also.
However, the office of the Council shall ensure
that such inspections are not carried out at least 3
20
days before upto 3 days after important religious
and festival
holidays declared by the
Central/State Govt.
(2)The recognition so granted to an Undergraduate Course for
award of MBBS degree shall be for a maximum period of 5
years, upon which it shall have to be renewed.
(2) The procedure for ‘Renewal’ of recognition shall be same as
applicable for the award of recognition.
(3) Failure to seek timely renewal of recognition as required in
sub-clause (a) supra shall invariably result in stoppage of
admissions to the concerned Undergraduate Course of MBBS
at the said institute.”
As per the terms of Notification published on 16.04.2010 in the
Gazette of India.
In terms of Gazette Notification dated 18.03.2016 the following
additions/modifications/deletions/substitutions, shall be, as
indicated therein:
3.(1) In Clause 8(3)(1)(a) under the heading of “Colleges in the
stage upto II renewal (i.e. Admission of third batch)” shall be
substituted as:-
(a) Colleges in the stage of Letter of Permission upto II renewal
(i.e. Admission of third batch).
If it is observed during any inspection/assessment of the
institute that the deficiency of teaching faculty and/or
Residents is more than 30% and/or bed occupancy is <50%
(45% in North East, Hilly terrain, etc.), compliance of
rectification of deficiencies from such an institute will not be
considered for issue of Letter of Permission (LOP/renewal of
permission that Academic Year.
In Clause 8(3)(1)(b) under the heading of “Colleges in the stage
from III renewal (i.e. Admission of fourth batch) till recognition
of the institute for award of M.B.B.S. degree” shall be
substituted as:-
(b) Colleges in the stage of III & IV renewal (i.e. Admission of
fourth & fifth batch)
21
If it is observed during any inspection of the Institute that the
deficiency of teaching faculty and/or residents is more than
20% and/or bed occupancy is <65% compliance of rectification
of deficiencies from such an institute will not be considered for
renewal of permission in that Academic Year.
In Clause 8(3)(1)(c) under the heading of “Colleges which are
already recognized for award of M.B.B.S, degree and/or
running Postgraduate courses” shall be substituted as:-
( C) Colleges which are already recognised for award of
M.B.B.S. degree and /or running Postgraduate courses.
If it is observed during any inspection/assessment of the
institute that the deficiency of teaching faculty and/or
Residents is more than 10% and/or bed occupancy is <70%,
compliance of rectification of deficiency from such an institute
will not be considered for issue of renewal of permission in
that Academic Year and further such ain institute will not be
considered for processing applications for Postgraduate
courses in that Academic Year and will be issued show cause
notices as to why the recommendations for withdrawal of
recognition of the courses run by that institute should not be
made for undergraduate and postgraduate courses which are
recognised u/s 11(2) of the IMC Act, 1956 along with direction
of stoppage of admissions in permitted postgraduate courses.
In Clause 8(3)(1)(d) under the heading “Colleges which are
found to have employed teachers with fake/forged documents:
the second paragraph shall be substituted as:-
“However, the office of the Council shall ensure that such
inspections are not carried out at least 2 days before and 2
days after important religious and festival holidays declared
by the Central/State Govt.”
4. The Council may obtain any other information from the
proposed medical college as it deems fit and necessary.
Whenever the Council in its report has not recommended the
issue of Letter of Intent to the person, it may upon being so
required by the Central Government reconsider the application
and take into account new or additional information as may be
forwarded by the Central Government. The Council shall,
22
thereafter, submit its report in the same manner as prescribed
for the initial report.”
Considering the requirements of the scheme and as the petitioner
college failed to fulfil the conditions specified by the OC as
incorporated in the formal conditional Letter of Permission dated
12th September, 2016, the question of confirming the Letter of
Permission for the academic session 2016-17 without removal of
deficiencies in all respects does not arise. The petitioner college
must first remove all those deficiencies to become eligible for
confirmation of LOP, as per the undertaking given by the college
in that regard.
16.
The petitioners have relied upon recent decisions of
this Court dealing with similar issues in the cases viz <cite>Dr.
Jagat Narain Subharti Charitable Trust & Anr. Vs.
Union of India and Ors. 2</cite> ; <cite>Gangajali Education Society
& Anr. Vs. Union of India & Ors.3</cite>; <cite>Saraswati
Educational Charitable Trust & Anr. Vs. Union of India
& Ors. 4</cite>; <cite>Apollo Institute of Medical Sciences &
Research & Ors. Vs. Union of India & Anr. 5</cite>, to contend
that in similar situations, this Court preferred to rely on the
2
3
4
5
Writ Petition (C) No. 513 of 2017, decided on 30.08.2017.
Writ Petition (C) No.709 of 2017, decided on 31.08.2017.
Writ Petition (C) No. 515 of 2017, decided on 01.09.2017.
Writ Petition (C) No. 496 of 2017, decided on 31.08.2017.
23
opinion given by the OC and overturned the conclusion
reached by the Competent Authority of the Central
Government for debarring the concerned institution from
admitting students for a period of two years and authorising
MCI to encash bank guarantee of Rs.2 Crore. This
submission does not commend us. For, the dictum in those
cases is contextual and on facts of those cases. In the
present case, the Hearing Committee has duly considered
the explanation offered by the college. It has, however,
rejected the same for the reasons recorded in the impugned
decision. The fact that specific reference to the opinion of
the OC is absent in the conclusion recorded by the Hearing
Committee, it does not follow that the issue has not been
considered by the Hearing Committee or by the Central
Government. The Competent Authority in the final decision
after adverting to the observations of the OC and also of the
Hearing Committee has noted that the absence of such
large number of faculties and residents during duty hours
was unacceptable and, moreso, failure of the college to
ensure presence of 5 (five) residents on night off and yet
could not come, even late, for the head count nor was it
24
reflected in the SAF. This aspect has not been dealt with by
the OC in its opinion dated 14th May, 2017. Therefore,
non-acceptance of the explanation offered by the college by
the Hearing Committee and the Competent Authority of the
Central Government, cannot be said to be irrelevant, unjust
or for extraneous consideration.
17.
As stated earlier, the college had failed to produce
supportive documents or evidence about 6 (six) minor
operations on the day of assessment. No doubt, the OC
accepted the explanation of the college by holding that there
was no Minimum Standard Requirement (for short ‘MSR’) in
that behalf. The finding in the assessment report was that
there was only one minor operation on the day of
assessment whereas the college claimed to have conducted
6 (six) operations. Nothing prevented the college from
producing documents or evidence in support of that claim
before the Hearing Committee. It was open to the
petitioners to invite the attention of the Hearing Committee
to such documents, if already placed on record during the
earlier hearing. That was obviously not done. Else, the
Hearing Committee in its conclusion submitted to the
25
Ministry may have referred to it. The Hearing Committee
has noted that even the relevant list/documents in relation
to paramedical non-teaching staff was not produced before
it. There is no reason to doubt the correctness of this
factual position noted by the Hearing Committee. In any
case, since the deficiencies in respect of faculty (16.79%)
and residents (21.73%) remains unexplained and being
significant, the same cannot be overlooked. This appears to
be the view taken by the Hearing Committee and the
Competent Authority of the Central Government.
18.
Be that as it may, the opinion of the Hearing
Committee, which is the basis for passing the impugned
decision, is founded on the performance of the college on
the day of inspection dated 18th – 19th November, 2016. The
question is: whether absence of faculty members and
residents on the given day, assuming it to be substantial in
number, per se, could be the basis for determining the
efficiency and performance of the college for the rest of the
academic session while considering the proposal for grant of
permission? There is nothing in the opinion of the Hearing
Committee or the decision of the Competent Authority that
26
requisite number of faculty members and residents was not
employed in the petitioner college or that the claim of the
petitioner college in that behalf was bogus. The noting is
about the absence of such large number of faculty and
residents on the day of inspection and during the duty
hours. Assuming that the college could not secure the
presence of those persons at the time of inspection, it does
not follow that those faculty members and residents were
not on the pay roll and in the employment of the petitioner
college. This aspect certainly requires proper verification
and consideration by the concerned authority.
19.
A priori, we may adopt the course as in the case of
<cite>World College of Medical Sciences & Research Vs.
Union of India6</cite>, by directing the respondents to allow the
students already admitted in the petitioner college on the
basis of conditional LOP for the academic session 2016-17,
to continue their studies. The MCI shall send its Inspection
Team within a period of three months to submit an
assessment report regarding the overall performance and
efficiency of the petitioner college and deficiencies, if any,
and give time to the petitioner college to remove those
6
Writ Petition (C) No. 514 of 2017, decided on 05.09.2017.
27
deficiencies within the time specified in that regard. The
petitioner medical college shall then report its compliance
and communicate the removal of deficiencies to MCI,
whereafter it will be open to the MCI to verify the position
and then submit its recommendation to the Central
Government. The Ministry shall take a final decision within
one month of the receipt of the recommendation from the
MCI. Until such decision is taken and communicated to the
petitioners, the Bank Guarantee offered by the petitioners
in the sum of Rs. Two Crore shall not be encashed by the
MCI but the petitioners shall keep the same alive. In the
event the final decision of the Competent Authority of the
Central Government is adverse to the petitioners, it will be
open to them to take recourse to such remedies as may be
available in law.
20.
Be it noted that the purpose of the stated inspection
would be to consider the confirmation of LOP in favour of
petitioner college for the academic session 2016-2017. We
further direct the respondents to treat the renewal
application submitted by the petitioner college for the
academic session 2017-18 as having been made for the
28
academic session 2018-19 and process the same in
accordance with law with promptitude.
21.
Writ petition is disposed of in the aforementioned
terms. No order as to costs.
|
The appellant and six other persons stood prosecuted
for offences under Ss. 147, 148, 302 read with 149 and
307/149. They were acquitted by the Additional District
Judge, Narisinghgarh, Distt. Rajgarh (Byara), W.P. State.
On appeal, the High Court confirmed the acquittal of five
persons but reversed the Judgment of the trial Judge with
reference to the appellant and another by name Ram Singh.
The appellant was convicted for offences under Ss. 302 and
324 IPC and sentenced to imprisonment for life u/s 302 and
imprisonment for four months and a fine of Rs. 1000/- u/s
324. We are not concerned with the other accused as he has
not come to this Court.
2.The case of the prosecution is shortly as follows :
There was prior enmity between the accused persons on the
one side and Gorelal and others on the other. The accused
persons formed an unlawful assembly and on 29.12.86 at about
2 P.M. committed the murder of Gorelal in the jungle of
Padiliya Khadi. Ram Singh and the appellant shot the
deceased with a gun. They caused gun shot injuries to
Nankram, Deochand, Beni Singh and Ramesh in the attempt to
murder them. Nanak Ram became unconscious. Sewa Ram (PW1)
was working in is field when he saw a bullock cart coming
from forest side. On hearing sounds of screaming and
wailing, he went to the cart and found the dead body of
Gorelal. He was informed by Hiralal s/o Ramratan that the
appellant, his brother Bhanwaria, Amritlal, Daryhao Singh,
Kailash, Ram Singh and Pappu Killed Gorelal in Chhapra and
that Ram Singh and the appellant fired guns at Gorelal. He
was also informed that the others sustained bullet-injuries.
Thereafter Sevaram went to the police Station at Kotra and
reported the matter at 5.50 P.M., the same day. The report
was recorded. J.S. Tomar (PM9), SHO registered offences
u/ss 147, 148, 302, 307 read with 149 vide Crime No.
148/86.
3.After investigation the accused persons were
prosecuted. They denied the charges and pleaded false
implication. They also pleaded that the complainant party
caused damage to their tractor. After trial, the trial
Judge acquitted all the accused. On appeal by the State,
the High Court reversed the judgment as regards the
appellant and Ram Singh and convicted them while confirming
the acquittal of the rest of the accused.
4.The appellant’s counsel made the following
submissions:- The FlR was not lodged on the same day but it
was done only on the next day. The appellant has proved
alibi and he was not at the place of occurrence. No doctor
has been examined to prove the alleged injuries of eye
witnesses. Nor have they produced any medical certificate.
The evidence of the prosecution witnesses is full of
discrepancies. The driver of the tractor recovered by the
prosecution was not examined by it, and he has been examined
by the defence. His evidence corroborated by the damage on
the tractor proves conclusively the defence version. The
Judgment of the High Court is perfunctory and unsustainable.
5.Learned counsel for the State submitted that all the
witnesses of the prosecution are consistent in stating that
the appellant fired the gun after getting it from Ram Singh.
According to him the appellant has failed to plead or prove
alibi and DW1 was not the driver of the tractor in question.
He argued that no suggestion of alibi was put to the
prosection witnesses by the defence counsel. According to
him the judgment of the high Court does not warrant any
interference.
6.We heard counsel on both sides at length. We have
perused the entire evidence on record. There are five
eye-witnesses, namely, PW2, PW12, PW13, PW14 and PW15. All
of them except PW2 received gun-shot injuries. Their
evidence is consistent and excepting minor discrepancies
which are natural due to frailty of human memory, nothing
has been pointed out for discrediting their evidence. All
the five witnesses have categorically spoken to the presence
of the appellant on the spot and his firing the gun after
taking it from Ram Singh. The argument that no doctor has
been examined to prove the injuries of the witnesses is
without any substance. Nothing has been elicited in the
cross-examination to enable the court to discard their
version of having suffered injuries. On the other hand,
suggestions have been made in the cross examination as if
there was a fight between the two groups at the spot.
7.Though learned counsel in the beginning of the
arguments attempted to make a point about the lodging of the
FIR on the next day, he realised the futility thereof when
it was pointed out that PW1, the Chowkidar of the village
rushed to the Police station and gave the information to the
S.O. around 5 P.M. According to the witness, the S.O.
before lodging the report went to the spot to make enquiry
and returned much later to lodge the report. The witness
cannot be disbelieved on that ground and the High Court has
adverted to this aspect of the matter.
8.The main plank of the argument of the appellant’s
counsel was ’alibi’. According to him the evidence of the
DWs and the records produced by DW3 prove that the appellant
attended the Court of Naib Tehsildar on that day situated
about 60 to 70 kms away and the appellant could not have
been present at the place of occurrence. There are several
circumstances which disprove the case of alibi. There was
no consistency in the suggestions made to prosecution
witnesses when they were cross-examined. A suggestion was
made to PW2 that he himself and the members of his group
attacked the appellant and his driver. The suggestion could
be only on the basis that the appellant was present at the
spot. No suggestion was made to PW2 that the appellant was
not there at the time of occurrence. There was no
suggestion to PW13 that the appellant was not present there.
When the appellant was questioned under s.313, he did not
say that he was not present at the spot. All his answers
were mere denials of the evidence put to him.
9.Strong reliance is placed on the evidence of DW1 who
claims to be the driver of the tractor which was found on
the scene of occurrence. But the number of the tractor
given by him is different from the number of the tractor
seized. His entire evidence is wholly unreliable. The High
Court has rightly characterised him as got-up witness and
his evidence is rejected.
10.The evidence of DW4 does not inspire any confidence.
He claims to have been present in the court of Naib
Tehsildar along with the appellant. But Ex. D-7 disproves
his statement. In that case he was non-applicant and the
order discloses that he was not present in Court and he
should be informed of the order. DW3 who produced the
records from the court of Naib Teshildar proves equally
unreliable. His version that cases in the Court of the Naib
Tehsildar started only at 2 P.M. is too big a pill to be
swallowed. He could not state clearly the time at which the
statements containing the signature of the appellant were
recorded. It is quite obvious that he is a partisan witness
and no reliance can be placed on his evidence.
11.In the facts and circumstances of the case, there is
no difficulty in rejecting the version of the appellant that
he was not present on the scene of occurrence at the
relevant time. The other matters relied on by the learned
counsel for the appellant in support of his contention that
the evidence of the prosecution witnesses is unacceptable
are not of much significance or sufficient importance to
negative the reliability of the prosecution witnesses.
12.In the result we hold that the High Court was
justified in reversing the judgment of acquittal passed by
the trial Court and convicing the appellant under section
302 as well as section 324 IPC. The sentences awarded by
the High Court are quite appropriate and do not find any
warrant to interfere with the same. The appeal fails and is
dismissed.
|
1.
2.
The present appeal has been preferred by a 5 years’ old victim of road
accident which occurred on 21.9.2010, challenging the order of the
High Court dated 7.9.2020 awarding a compensation of Rs.13,46,805/-,
as against Rs. 18,24,000/- awarded by the learned Motor Accident
Claims Tribunal1.
The grievance is with respect to the inadequate amount of
compensation on account of the injuries suffered by the appellant. The
appellant is a paraplegic patient. The appellant has examined Dr.
Amithish Narayana as PW-2 and Dr. S. Adanthya as PW-3. Dr. Adanthya
1
For short, the ‘Tribunal’
1
is a medical specialist from National Institute of Mental Health &
Neurosciences, Bangalore. The discharge summary issued by the
hospital is Exh. P/10. As per the discharge certificate, the appellant is
not able to move both his legs and had complete sensory loss in the
legs, urinary incontinence, bowel constipation and bed sore. The
appellant was aged about 5 years as on the date of the accident,
hence has lost his childhood and is dependent on others for his routine
work. PW-2 Dr. Amithish Narayana has issued disability certificate
Exh.P/12. He is the Head of the Department at the Kasturba Medical
College Hospital, Mangalore. The said certificate reads as thus:
“KMC Hospital
To Whomsoever It May Concern
30.04.2013
Tuesday
This is to certify that Master Ayush V/8yrs S/o Vedava
(Resident of BC Road) is a known case of Traumatic Paraplegia
following T 10-11 spinal cord lesion due to RTA. He is not able to
walk due to poor motor and sensory recovery in LL muscles.
He shows significant sinking astasia attitude and collapses
on standing. As per the Disability certificate, he has 100%
permanent physical impairment and will not be able to walk.
Since following therapy, partial recovery has taken place
in both motor and sensory aspects up to pelvic girdle level.
Further recovery is impossible. Therefore he is been advised to
use Advanced Reciprocating Gait Orthosis (ARGO) with bilateral
elbow crutches.
After the use of Advanced Reciprocating Gait Orthosis
(ARGO) with bilateral elbow crutches he can perform
independent ambulation.
This is a great achievement for his future life as this
device gives him controlled mobility capacity.
2
With best wishes and blessings for his good progress.
Sd/-
Dr. Amitesh Narayan
Professor & HOD
Department of Physiotherapy
K.M.C. Hospital
Ambedkar Circle, Mangalore-575001
Email: [email protected]
Mob: 9448039380”
3.
The High Court and the Tribunal assessed the compensation under
different heads as produced below:
Sl. No.
1
2
3
4
5
6
7
8
9.
10.
Particulars
Disability
Pain and suffering
Loss of amenities
Medical expenses
Future medical expenses i.e.
towards purchase of device
Attendant charges
Conveyance charges
Food and nourishment
Towards Loss of marriage
prospectus
Towards loss of childhood
Total
High Court
Amount
Rs.2,25,000/-
Rs.1,00,000/-
Rs.1,05,000/-
Rs.1,61,805/-
Rs.5,00,000/-
Rs.70,000/-
Rs.70,000/-
Rs.70,000/-
N.A
Tribunal
Amount
Rs. 2,26,000/-
Rs. 1,20,000/-
Rs. 2,00,000/-
Rs. 5,74,000/-
Rs. 5,00,000/-
Rs. 15,000/-
Rs. 20,000/-
Rs. 20,000/-
Rs. 1,00,000/-
N.A
Rs.13,46,805/-
Rs. 50,000/-
Rs. 18,24,000/-
4.
Learned counsel for the appellant argued that the medical expenses
itself were to the tune of Rs.5,73,700/- as per Ex. P11, whereas the
High Court has only awarded a sum of Rs.1,61,805/-. The High Court
had maintained awarding a sum of Rs 5,00,000/- for future medical
expenses, i.e., towards purchase of device to be used by the appellant,
but as per the statement of PW2- Dr. Amitesh Narayana, the device
3
bears weight only up to 25 kilograms and has to be replaced every 5
years. The conveyance charges were awarded by the Tribunal as
Rs.20,000/- which was enhanced to Rs.70,000/- by the High Court.
However, it was contended that the enhancement is still less than the
taxi expenses incurred by the appellant. The Tribunal rejected the
claim of taxi expenses produced as EX P-13 amounting to Rs.
1,51,500/- on the ground that the taxi driver had not been produced
and also that why the appellant was taken by a taxi when other modes
of transport were available. Still further, the appellant has been given
Rs.70,000/- as attendant charges and Rs.2,25,000/- towards disability
which are wholly inadequate.
PW-1- Krishna Sapalya is the father of the appellant who was working
as Secretary, Gram Panchayat. The learned Tribunal has observed that
the father has not placed any material to show his occupation or
income. We do not agree with such finding of the Tribunal as once he
has stated that he is a Secretary of Gram Panchayat, he has disclosed
his occupation. As a Secretary of Gram Panchayat, he is a government
servant.
It was also argued that in a judgment reported as <cite>Kajal v. Jagdish
Chand and Others2</cite>, the injured was a 12 years old girl who had
suffered an injury to the extent that her IQ got less than 20% as
compared to a child of her age and the medical board had assessed
her social age to be only of a 9-months’ old child. This Court had
5.
6.
2
(2020) 4 SCC 413
4
recognized that Schedule II of the Act could be used as a guide for the
multiplier to be applied in each case. This Court in the aforesaid case
held as under:
“6. It is impossible to equate human suffering and personal
deprivation with money. However, this is what the Act enjoins
upon the courts to do. The court has to make a judicious attempt
to award damages, so as to compensate the claimant for the loss
suffered by the victim. On the one hand, the compensation
should not be assessed very conservatively, but on the other
hand, the compensation should also not be assessed in so liberal
a fashion so as to make it a bounty to the claimant. The court
while assessing the compensation should have regard to the
degree of deprivation and the loss caused by such deprivation.
Such compensation is what is termed as just compensation. The
compensation or damages assessed for personal injuries should
be substantial to compensate the injured for the deprivation
suffered by the injured throughout his/her life. They should not
be just token damages.
xxx
xxx
xxx
12. The assessment of damages in personal injury cases raises
great difficulties. It is not easy to convert the physical and
mental loss into monetary terms. There has to be a measure of
calculated guesswork and conjecture. An assessment, as best as
can, in the circumstances, should be made.
xxx
xxx
xxx
27. One factor which must be kept in mind while assessing the
compensation in a case like the present one is that the claim can
be awarded only once. The claimant cannot come back to court
for enhancement of award at a later stage praying that
something extra has been spent. Therefore, the courts or the
Tribunals assessing the compensation in a case of 100%
disability, especially where there is mental disability also, should
take a liberal view of the matter when awarding the
compensation. While awarding this amount, we are not only
taking the physical disability but also the mental disability and
various other factors. This child will remain bedridden for life.
5
Her mental age will be that of a nine-month-old child. Effectively,
while her body grows, she will remain a small baby. We are
dealing with a girl who will physically become a woman but will
mentally remain a 9-month-old child. This girl will miss out
playing with her friends. She cannot communicate; she cannot
enjoy the pleasures of life; she cannot even be amused by
watching cartoons or films; she will miss out the fun of
childhood, the excitement of youth; the pleasures of a marital
life; she cannot have children who she can love, let alone
grandchildren. She will have no pleasure. Her's is a vegetable
existence. Therefore, we feel in the peculiar facts and
circumstances of the case even after taking a very conservative
view of the matter an amount payable for the pain and suffering
of this child should be at least Rs 15,00,000.”
7.
The High Court had assessed, in the aforesaid case, the notional
income of the victim as Rs.15,000/- p.a. which was not found to be
justified by this Court. It was observed that the girl would be entitled to
minimum wages payable to a skilled workman. The appellant was from
the State of Haryana. The minimum wages in that State on the date of
accident were Rs.4846/- per month. In the present appeal, the
minimum wages for 2010-11 in the State of Karnataka for
employments not covered under any of the scheduled employments
can be ascertained from the following extract of notification for
minimum wages published in the Gazette on 19.02.2007:
“24.Employment not covered in any of the Scheduled Employments
Notification No. KAE 79 LMW 2005 dated 17.03.2006
Published in Gazette dated 19.02.2007
Cost of Living Allowance to be paid over and above 2703 points
Cost of Living Index: 3944-2703=1241 points
Minimum wages and VDA from 01-04-2010 to 31-03-2011
6
S C H E D U L E
for different zones
Class of
Employment
2
Minimum rates of wages payable
Sl.
No.
1
1
2
3
4
VDA: All Categories of employees: 3 paise per point per day over
and above 2703 points.”
Highly Skilled
Skilled
Semi-Skilled
Unskilled
Basic
3
2691.80
2591.80
2041.80
1891.80
Total
5
3808.70
3708.70
3158.70
3008.70
VDA
4
1116.90
1116.90
1116.90
1116.90
8.
9.
10.
Hence, as per the above extract, the minimum wages payable to a
skilled workman in 2010-11 is to the tune of Rs. 3708.70. In this view,
the minimum wages as on the date of accident is rounded off to
Rs.3700/-. The compensation, therefore, is to be assessed on the basis
of the said minimum wages on the assumption that the appellant
would have been able to earn after attaining majority.
In addition to the skilled minimum wages, the appellant would be also
entitled to 40% for future prospects in view of the judgment of this
Court in <cite>National Insurance Company Limited v. Pranay Sethi &
Ors3</cite>.
Thus, the compensation works out to be Rs.3700/- plus 40%, which
amounts to Rs.5180/- per month. The multiplier of 18 would be
applicable in view of the age of the appellant. The loss of future
earnings due to the Permanent Disability for life thus works out to be
Rs.11,18,880/-, i.e., (3700+1480=5180) x 12 x 18.
3
(2017) 16 SCC 680
7
11.
12.
As per the medical certificate produced by the appellant, with
Advanced Reciprocating Gait Orthosis (ARGO) with bilateral elbow
crutches, the appellant can perform independent ambulation.
Therefore, the condition of the appellant is not entirely comparable to
<cite>Kajal</cite> who was confined to bed with mental age of 9 months’ old child.
The appellant herein is not able to move his both legs and had
complete sensory loss in the legs, urinary incontinence and bowel
constipation and bed sore.
The determination of damages in personal injury cases is not easy. The
mental and physical loss cannot be computed in terms of money but
there is no other way to compensate the victim except by payment of
just compensation. Therefore, we find that in view of the physical
condition, the appellant is entitled to one attendant for the rest of his
life though he may be able to walk with the help of assistant device.
The device also requires to be replaced every 5 years. Therefore, it is
reasonable to award cost of 2 devices i.e., Rs.10 lakhs. The appellant
has not only lost his childhood but also adult life. Therefore, loss of
marriage prospects would also be required to be awarded. The learned
Tribunal has rejected the claim of taxi expenses for the reason that the
taxi driver has not been produced. It is impossible to produce the
numerous taxi drivers. Still further, the Tribunal should have realized
the condition of the child who had complete sensory loss in the legs.
Therefore, if the parents of the child have taken him in a taxi, probably
8
that was the only option available to them. Accordingly, we award a
sum of Rs.2 lakhs as conveyance charges.
13. No compensation is warranted to be payable under the heading “food
and nourishment or towards loss of childhood” as it stands subsumed
in the compensation assessed under the other different heads. In view
of the judgment in <cite>Kajal</cite> and other principles of determination of
compensation, the amount payable would be as under:
A
B
C
D
E
F
G
expenses
i.e.
Rs.5,74,000/-
Rs.10,00,000/-
Amount
Rs.11,18,880/-
Head
Loss of future earnings due to the
Permanent Disability for life
(3700 + 1480=5180) x 12 x 18
Medical expenses
Future medical
towards purchase of 2 devices
Pain, suffering and Loss of amenities Rs.10,00,000/-
Rs.3,00,000/-
Loss of Marriage prospects
One Attendant charges
Rs.8,00,000/-
(3700x12x18)=7,99,200/- rounded
off
Conveyance charges
Total
Rounded off
Rs.2,00,000/-
Rs.49,92,880/-
Rs.49,93,000/-
14. Hence, the compensation comes out to be Rs. 49,93,000/- along with
interest already awarded by the Tribunal and affirmed by the High
Court i.e. 7.5% p.a. from the date of filing of the claim application till
realization.
9
15.
16.
Since the appellant is a minor, in view of the judgment of this Court in
General Manager, Kerala State Road Transport Corporation,
<cite>Trivandrum v. Susamma Thomas and Others4</cite>, the amount of
Rs.10,00,000/- would be disbursed to the father of the appellant as his
guardian. If however, an amount more than Rs.10,00,000/- has already
been disbursed, the said amount shall not be adjusted. The rest of the
amount would be invested in one or more Fixed Deposits Receipts so
as to attract the maximum rate of interest. The interest amount shall
be payable to the guardian of the appellant every month. It shall be
open to the guardian, during the minority of the appellant, to seek
orders for withdrawal of the amount on the basis of medical opinion, if
any major medical expenses are required to be incurred.
The appeals thus stand allowed accordingly with costs throughout.
|
1.
Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 28.01.2020, passed by the High Court
of Judicature at Allahabad in First Appeal Defective No.308 of
2015, by which the High Court has rejected the said appeal after
1
a period of approximately 16 years (as per the appellant, there
was a delay of 26 years) by which the High Court has enhanced
the compensation payable to the land owners to Rs.297/ per
sq.yard, NOIDA has preferred the present appeal.
2.
The facts leading to the present appeal in a nutshell, are as
under:
2.1 That the land in question situated in Village Gheja
Tilapatabad, Tehsil and Pargana Dadri, District Ghaziabad (now
District Gautam Budh Nagar) was acquired for the planned
development by the NOIDA, vide Notification issued under Section
4, dated 22.11.1982. A declaration under the provisions of
Section 6 of the Land Acquisition Act, 1894 was issued on
23.11.1982. The possession of the acquired land was taken over
by the State on 22.02.1983.
The Land Acquisition
Officer/Collector declared the Award dated 05.09.1983 and
awarded/determined the compensation at Rs.30,000/ per bigha,
relying upon the sale deed dated 02.11.1982 of certain parcels of
land in the village itself. The father of the contesting respondents
2
accepted the compensation. At the instance of the original
owners – father of the contesting respondents, a Reference under
Section 18 of the Land Acquisition Act, 1894 raising objections
against the Award was made. The original claimants claimed
compensation @ Rs.60,000/ per bigha. On contest, by a detailed
judgment and order dated 04.05.1989, the Reference Court
dismissed the said Reference along with other references. Review
applications were filed which came to be dismissed in the year
1998. That after a period of 16 years from the date of rejection of
the review applications in the year 2014/2015, the respondents
filed the present first appeal before the High Court and relied
upon the judgment in some other first appeals by which the
compensation was enhanced to Rs.297/ per sq.yard. By the
impugned judgment and order, the High Court has condoned the
delay of 16 years, however it has denied the interest during the
period of delay, and has enhanced the amount of compensation to
Rs.297/ per yard. Hence, the present appeal at the instance of
the NOIDA.
3
3.
Learned Counsel appearing on behalf of the NOIDA has
vehemently submitted that the High Court has materially erred in
entertaining the appeal after a period of 16 years from the date of
dismissal of the review application and after a period of 26 years
from the date of the decision by the Reference Court.
3.1 It is submitted that even otherwise, on merits also in view of
the subsequent decision of this Court in the case of <cite>Asha Ram
(Dead) through LRs and Others vs. U.P. Awas Avam Vikas
Parishad and Another, (2022) 2 SCC 567</cite> with respect to the
land acquisition of 1982, this Hon’ble Court has reduced the
amount of compensation to Rs.120/ per sq.yard, the claimants
shall not be entitled to compensation at the rate of Rs.297/ per
sq.yard, as awarded by the High Court.
3.2 It is submitted that as such, in the subsequent decision in
the case of U.P. <cite>Awas Avam Vikas Parishad (supra)</cite>, this Court
did consider its earlier decision in the case of <cite>Narendra and
Others vs. State of Uttar Pradesh and Others, (2017) 9 SCC
4
426</cite>, by which this Court for the acquisition with respect to the
nearby villages of the year 1988, has allowed compensation @
Rs.297/ per sq.yard. However, it is submitted that considering
the development which took place between the year 1982
1986/1988 this Court in the case of <cite>U.P. Awas Avam Vikas
Parishad (supra)</cite>, did not accept the case on behalf of the
claimants for awarding Rs.297/ per sq.yard and determined the
compensation for the lands acquired in the year 1982, at
Rs.120/ per sq.yard.
4. While opposing the present appeal, learned counsel
appearing on behalf of the original claimants has vehemently
submitted that in the facts and circumstances of the case, the
High Court has not committed any error in condoning the delay of
16/26 years by observing that the claimants are entitled to just
compensation.
4.1 It is submitted that considering the case of the other land
owners decided vide judgment and order passed in the year 2014
with respect to similar acquisition with respect to the nearby
5
villages, the amount of compensation had been enhanced to
Rs.297/ per sq.yard. Following the same, in the present case
the amount of compensation has been awarded @ Rs.297/ per
sq.yard, which cannot be said to be unreasonable and the High
Court has not committed any error.
4.2 Learned counsel appearing on behalf of the original
claimants has heavily relied upon the following decisions of the
High Court, confirmed by this Court by which the compensation
has been determined at Rs.297/ per sq.yard.
INDEX
PARTICULARS
LIST OF JUDGMENTS OF LAND ACQUISITION IN MAKANPUR VILLAGE
Sl.
No.
Judgment of the
Page
Nos.
Court
Village
Date of
Notifications
&
Compensatio
n (per sq. yd.)
12.09.1986/
28.02.1987
[Rs. 297/]
1. Makanpur,
(Vaishali)
Distt.
Ghaziabad,
Tehsil Dadri
6
F.A. No. 910/2000
in re: <cite>GDA v. Kashi
Ram.
[DoJ:
13.11.2014]</cite>.
SLP (C) No. 5815 of
2015, <cite>GDA v. Kashi
Ram & Ors.</cite>
626
2732
2. Makanpur,
15.03.1988
(Sector 62,
Noida) Distt.
Gautam
Budh Nagar,
Tehsil Dadri
[Rs. 297/]
dismissed
05.05.2015
on
3334
Review Petition (C)
No. 2632 of 2015
dismissed
on
06.10.2015
Curative Petition (C)
No. 94 of 2016 was
dismissed
on
15.03.2016
Judgment
dt.
15.04.2015 of the
High Court in F.A.
No. 737 in re:
<cite>NOIDA v. Surendra
Singh</cite>,
awarding
compensation @ Rs.
135/ for Makanpur,
was setaside by this
Court vide judgment
16.02.2016,
dt.
rendered
in <cite>Civil
Appeal No. 1506
1517 of 2016 in re:
Pradeep Kumar v.
State of
U.P.</cite>,
reported as (2016) 6
SCC 308 and the
case was remanded
for
consideration
afresh.
3537
3895
9698
99124
Pursuant to remand,
the High Court
dismissed F.A. No.
737 in re: <cite>NOIDA v.
Surendra
Singh</cite>
7
along with other First
Appeals of Noida and
allowed the First
Appeals filed by the
(F.A. No.
farmers
522 of
2009
<cite>Pradeep Kumar vs.
State of UP</cite>, being
the lead case) and
awarded
compensation of Rs.
297 per sq. yd. vide
final judgment dt.
21.04.2016.
This
has attained finality.
In
[Note:
the
present bunch of
cases, listed before
this Court,
the
compensation has
been awarded @ Rs.
297/ sq. yard based
on this judgment
dated 21.04.2016
only as they pertain
to
same
notification and the
village
same
(Makanpur)
and
have arisen out of
the same Reference
Court order.]
the
3. Makanpur,
(Vaishali)
Distt.
Ghaziabad,
Tehsil Dadri
12.09.1986/
24.02.1988
[Rs. 297/]
This Court in <cite>Civil
Appeal No. 10429
10430 of
2017,
Narendra vs. State
of UP</cite>, reported as
125
135
8
4. Makanpur,
(Indirapuram
)
Distt.
Ghaziabad,
Tehsil Dadri
16.08.1988
[Rs. 297/]
136
137
(2017) 9 SCC 426
has
awarded
compensation @ Rs.
297/
This Court in <cite>Civil
Appeal No. 16960 of
2017,
Jaiprakash
(D) V State of U.P</cite>.
vide judgment dated
24.11.2017, reported
as (2020) 11 SCC
770,
increased
compensation to Rs.
297/ (Followed In
re: Narendra)
5. Makanpur,
16.08.1988
(Indirapuram
)
Distt.
Ghaziabad,
Tehsil Dadri
[Rs. 297/]
This Hon’ble Court in
<cite>Civil Appeal No.
16961 of 2017, Om
Prakash vs. State of
UP</cite> vide the same
judgment
dated
24.10.2017 in <cite>Jai
(supra)
Prakash </cite>
increased
the
compensation to Rs.
297/
6. Makanpur,
(Vaishali)
Distt.
Ghaziabad,
Tehsil Dadri
12.09.1986/
28.02.1987
[Rs. 297/]
This case had also
arisen out of the
abovementioned
<cite>Ram
Kashi
judgment
(supra)</cite>.
After the judgment in
Kashi
an
application bearing
CMAN no. 194412 of
Ram,
9
2016 was filed in one
of the First Appeals
bearing FA No. 484
of 2019, <cite>Ghaziabad
Development
Authority vs. Trilok
Chand & Ors.</cite>, which
was also decided
along with the bunch
Ram
of
(supra)
for 33%
deduction
as
development charges
from
the
compensation
determined at the
rate of Rs. 297/ sq.
yard, but the same
was rejected.
Kashi
SLP bearing SLP (C)
No.
12547/2017,
<cite>Ghaziabad
Development
Authority vs. Trilok
Chand & Ors</cite> was
filed against the said
dismissal,
wherein
while issuing notice,
vide order dated
28.04.2017, it was
especially recorded
that the GDA was
aggrieved by the non
deduction of 33% as
development charges.
However, the said
SLP was dismissed
vide order dated
10
138
139
140
141
7. Makanpur,
(Indirapuram
)
Distt.
Ghaziabad,
Tehsil Dadri
16.08.1988
[Rs. 297/]
142
144
03.08.2017.
This Court in <cite>Civil
Appeal No. 9208
9211 of
2018,
Mangu Singh Vs.
State of UP</cite>,
vide
judgment
dated
10.09.2018,
increased
compensation to Rs.
297/.
Making the above submissions and relying upon the above
decisions/orders passed by the High Court as well as this Court,
it is prayed that the present appeal be dismissed.
5. We have heard learned counsel appearing on behalf of the
respective parties at length.
5.1 So far as the submissions made on behalf of the appellant
that the High Court has erred in condoning the delay of 16/26
years in preferring the appeal is concerned, in the peculiar facts
and circumstances of the case and considering the fact that even
while enhancing the amount of compensation and entertaining
the appeal, the High Court has denied the interest for the period
of delay and has exercised its discretion in favour of the
11
claimants, we see no reason to interfere with the order passed by
the High Court condoning the delay in preferring the appeal.
5.2 Now so far as merits of the appeal and the impugned
judgment and order passed by the High Court enhancing the
amount of compensation at Rs.297/ per sq.yard is concerned
and the reliance placed upon the decisions of the High Court and
this Court referred to hereinabove and relied upon on behalf of
the claimants is concerned, at the outset it is required to be noted
that in the present case, the acquisition is of the year 1982 and in
all other relied upon cases the acquisition(s) is/are of the year
1986/88. In all those cases, where the amount of compensation
has been determined @ Rs.297/ per sq.yard, the acquisition(s)
is/are of the years 1986/1988 with respect to the Village
Makanpur and other nearby villages acquired for the development
of NOIDA/Ghaziabad. In the case of <cite>Narendra & Ors. (supra)</cite>,
this Court had enhanced the amount of compensation to
Rs.297/ per sq.yard with respect to the land acquired in Village
Makanpur and other surrounding villages acquired for the very
same project, but with respect to the acquisition of the years
12
1986/1988. However, subsequently in the case of <cite>U.P. Awas
Avam Vikas Parishad (supra)</cite> and after considering the decision
of this Court in the case of <cite>Narendra & Ors. (supra)</cite> with respect
to the village Makanpur and other surrounding villages situated
at Village Prahladgarh, Village Jhandapur, Village Sahibabad,
Village Arthala with respect to the acquisition of the year 1982,
this Court has determined the compensation at Rs.120/ per
sq.yard. In the said decision, while refusing to accept the claim of
Rs.297/ per sq.yard as awarded in the case of <cite>Narendra & Ors.
(supra)</cite> which was with respect to the acquisition of 1988, this
Court has observed that the compensation determined on the
basis of the Notification 5 years later, cannot be a yardstick for
determining the compensation for the land which is acquired five
years before. This Court has also taken note of the fact that
between the year 1982 and 1987/1988, development activities
had been undertaken. Applying the law laid down by this Court
in the case of <cite>U.P. Awas Avam Vikas Parishad (supra)</cite> to the
present case, the claimants shall not be entitled to the same
compensation as awarded with respect to the lands acquired after
13
5 years from the date of acquisition in the present case. As
observed hereinabove, in the present case, Section 4 Notification
had been issued on 22.11.1982 and the relied upon decisions
with respect to Village Makanpur and other villages are of the
year 1986/88, which as observed by this Court in the aforesaid
decision in the case of <cite>U.P. Awas Avam Vikas Parishad (supra)</cite>,
cannot be the basis. Under the above circumstances, the
impugned judgment and order passed by the High Court
awarding compensation @ Rs.297/ per sq.yard is unsustainable
and it is held that the original claimants shall be entitled to
compensation at the rate of Rs.120/ per sq.yard.
6.
In view of the above and for the reason stated above, the
present appeal succeeds in part. The impugned judgment and
order passed by the High Court is hereby modified. It is ordered
and directed that the original claimants shall be entitled to
compensation at the rate of Rs.120/ per sq.yard along with all
other statutory benefits and interest allowable under the
provisions of Land Acquisition Act, 1894. However, the claimants
shall not be entitled to the statutory benefits including the
14
interest under the Act, 1894 on the enhanced amount of
compensation for the delayed period in preferring the appeal
before the High Court i.e. from the date of rejection of the review
application till the first appeal was filed before the High Court.
Present appeal is accordingly allowed to the aforesaid extent.
No costs.
|
1. The present petition has been filed by the petitioner
wife seeking transfer of M.C. No. 331 of 2021 titled as “Dr.
Edmond Clint Fernandes vs. Mrs. Delma Lubna Coelho”
pending before the Family Judge at Mangaluru, Karnataka
to the Family Court at Bandra, Mumbai, Maharashtra.
2.
Learned counsel for the petitioner submitted that
the parties met on Facebook in the month of December,
2019 and they got married on 05.12.2020 as per Christian
rites and customs at Our Lady of Miracles Church,
Mangaluru.
Transfer Petition (C) No.1475 of 2021
3.
It is pleaded that after the marriage, the petitioner
was living with the respondent at her matrimonial home at
Mangaluru where she was illtreated, insulted and
humiliated by the respondent and his family members. She
was accused for each and everything and offensive language
was used against her. The respondent, in the pretext of
giving her a break for 1015 days, booked a oneway ticket
for the petitioner and sent her to Mumbai on 15.01.2021.
Thereafter, he disconnected all relations with her. On
05.07.2021, after COVID19 Pandemic restrictions were
eased, the petitioner came back to Mangaluru. However,
she was denied entry in her matrimonial home by the
respondent and his family members. She was completely
broken down. She approached the Police Station at
Pandeshwar, Mangaluru and lodged a complaint.
4.
The Superintendent of Police intervened and
called respondent to the Police Station. The respondent
stated that he has already issued a divorce notice and his
petition seeking divorce is in the process of filing. Despite
repeated requests made by the petitioner, the respondent
did not mend his ways.
Transfer Petition (C) No.1475 of 2021
5.
On 06.08.2021, she replied to the legal notice
stating that she is ready and willing to come to her
matrimonial house and wanted to live a happy married life.
On 10.08.2021, she received summons of the Court along
with copy of the divorce petition filed in the Family Court at
Mangaluru.
6.
Learned counsel for the petitioner submitted that
she is living with her old aged parents at Mumbai. There is
no one at her home to accompany her from Mumbai to
Mangaluru to contest the petition, which is more than 1,000
km from Mumbai. She does not even know Kannada
language. Whereas the respondent will not face any problem
in case the petition is transferred to Mumbai (Maharashtra).
The parties lived together only for a period of about 40 days.
It is stated by the petitioner that if given an opportunity, she
would try to reworkout the marriage. The petitioner was
forced to take up job with a bank as the respondent refused
to support her financially. In case, she frequently travels to
Mangaluru to attend the hearings, she is at the risk of losing
her job being fresher. It will not be possible for her to bear
the cost as well.
Transfer Petition (C) No.1475 of 2021
7.
On the other hand, learned counsel for the
respondent submitted that though the parties had met on
social media, one year prior to their marriage, she had even
visited to Mangaluru after COVID19 Pandemic/restrictions
were eased and they met frequently. She was well aware of
the family background of the respondent and also the status
of his family. In fact, immediately after the marriage, the
behaviour of the petitioner was not the same as was prior to
the marriage. The respondent resides with his aged parents.
He is a doctor by profession. The respondent is also the
founder and CEO of a global health organization involved in
philanthropic activities. Initially petitioner was proud of this
but later on the attitude changed. The respondent also paid
professional fees for engineering grade to ensure petitioner’s
financial independence as desired by her even prior to their
marriage. She now misbehaved with the respondent’s
parents as she wanted to live a luxurious life. All positive
points prior to the marriage were now negative.
Transfer Petition (C) No.1475 of 2021
8.
In fact, the petitioner being a permanent resident
of Canada, was habitual of that lifestyle. The marriage was
just to spoil the life of the respondent though initially, it was
claimed that she loves Indian culture and traditions.
Though it is alleged that the respondent had shunted out
the petitioner from matrimonial home, however, it was her
own decision to move out. Immediately, after reaching
Mumbai, she applied for a job in ICICI Bank and sent her
resignation from the Organization on 19.02.2021, where she
was working with the respondent. She had joined the job in
the Bank in 05.04.2021. Number of efforts were made by
the respondent to reconcile the marriage but with no result
and the efforts in the mediation also failed.
9.
The respondent was also kept in dark about
location of new flat worth ₹2,00,00,000/ (Rupees two
crores only) purchased by her and her family. The
respondent came to know about the address when she filed
a complaint at the Women’s Police Station, on 06.07.2021.
As a counterblast to the Divorce Petition filed by the
respondent, the petitioner has filed petition for restitution of
conjugal rights. He further submitted that it is a case of
Transfer Petition (C) No.1475 of 2021
irretrievable breakdown of marriage as even during repeated
mediations, the parties could not reconcile. This Court can
grant divorce under Article 142 of the Constitution of India
without consent of the parties. Reliance has been placed
upon judgments of this Court in <cite>R. Srinivas Kumar v. R.
Shametha (2019) 9 SCC 409</cite> and <cite>Munish Kakkar v.
Nidhi Kakkar (2020) 14 SCC 657</cite>.
10.
Number of other arguments were also raised on
merits, however, for the limited purpose of the consideration
on the prayer of the petitioner for transfer of the case, the
same are not required to be noticed in much detail.
11.
At the time of hearing, the petitioner was present
inperson whereas the respondent had joined through video
conferencing.
12.
Heard learned counsel for the parties and the
partiesinperson.
13.
The marriage had taken place on 05.12.2020.
The parties lived together at their matrimonial home only till
15.01.2021.
Transfer Petition (C) No.1475 of 2021
14.
From a perusal of order dated 17.12.2021, it is
evident that there being possibility of settlement of the
matrimonial dispute, the matter was referred to Supreme
Court Mediation Centre. The Order passed by this Court on
04.03.2022 records that the efforts of mediation failed. The
respondent sought time to file affidavit for satisfying the
Court that there is an irretrievable breakdown of marriage
and this Court should exercise its jurisdiction under Article
142 of the Constitution of India to dissolve the marriage.
15.
Order passed by this Court on 25.03.2022 records
that another effort was required to be made through
mediation for resolution of dispute between the parties. It
was referred to Maharashtra State Legal Service Authority.
The Marriage Counsellor was also required to be associated.
16.
The order passed by this Court on 02.09.2022
reads as under :
“It appears that the marriage has not worked
from the initial period of time itself. The parties got
married after having met on facebook.
The problem is what the wife demands and
what the husband says is capable of paying.
Transfer Petition (C) No.1475 of 2021
Let both the parties file affidavits alongwith list
of movable/immovable assets. They should also file
their last three years’ Income Tax Returns.
Two weeks’ time is granted to file necessary
affidavits.
List on 29th September, 2022.
The parties to either remain present in the Court or
connect virtually for which the connection will be
granted by the Registry.”
17.
From the order dated 13.10.2022, it is evident
that the petitioner may be working in Canada as she stated
that she wound up her work in Canada and is now living in
India. They agreed to take assistance of a marriage
counsellor. Justice S.J. Vazifdar, former Chief Justice of
Punjab and Haryana High Court was appointed as a
Mediator. The report has been received from the Mediator
stating that despite spending about 50 hours in different
sessions, the parties and their family members could not
arrive at a settlement and the mediation failed, as per the
report dated 08.02.2023. It is specifically recorded by the
Mediator in his report that during four months, several
meetings were held with the parties and throughout the
petitioner was in Canada and she attended the meetings
Transfer Petition (C) No.1475 of 2021
through Video Conferencing.
18.
Number of Transfer Petitions are filed in
matrimonial cases, primarily by the wives seeking transfer of
the matrimonial proceedings initiated by the husband. This
Court normally has been accepting the prayer made while
showing leniency towards ladies. In <cite>Anindita Das v. Srijit
Das (2006) 9 SCC 197</cite>, this Court observed that may be
this leniency was being misused by women. Hence, each
and every case has to be considered on its own merits.
19.
In the facts of this case in hand, the petitioner is a
permanent resident of Canada. She had shifted there in the
year 2014 and was working there on a wellpaid job,
however, came to India for the matrimonial alliance. She is
presently based at Mumbai, Maharashtra with her parents
and stated to be working in ICICI Bank. There is no child
born out of the wedlock. The relation started after the
parties met on Facebook. As far as the respondent is
concerned, he is a doctor by profession and is living at
Mangaluru, Karnataka. Divorce Petition has been filed by
the husband at Mangaluru where he resides with his aged
Transfer Petition (C) No.1475 of 2021
parents. Thereafter, the wife filed a petition for restitution of
conjugal rights at Mumbai, Maharashtra.
20.
Considering the status of the parties and the fact
that it is a petition filed by the wife seeking transfer of case
filed by the husband from Mangaluru, Karnataka to
Mumbai, Maharashtra, in our view no case is made out for
transfer of the petition from Mangaluru, Karnataka to
Mumbai, Maharashtra. The wife is a permanent resident of
Canada. She must be travelling abroad regularly. As is
evident from the observations in the Mediation Report dated
08.02.2023 submitted by Justice S.J. Vazifdar, the
petitioner was in Canada throughout the mediation process
and attended the proceedings online. There is no child born
out of wedlock to be taken care of. Both the parties are well
educated and engaged in their own jobs and professions.
She can travel to Mangaluru to attend the hearing of the
case and can also seek exemption from appearance
whenever required. Though, at present, considering the
financial condition of the parties on the basis of material
which has come on record, we do not find that any ground is
made out for issuing direction to the respondent to pay the
Transfer Petition (C) No.1475 of 2021
expenses to the petitioner for travelling to Mangaluru.
However, still in case she feels like seeking reimbursement
of expenses, she shall be at liberty to file application before
the court concerned, which may be examined on its own
merits.
21.
We do not find this to be a fit case for exercise of
power under Article 142 of the Constitution of India as good
sense may prevail on the parties. They had lived together
only for 40 days. It takes time to settle down in marriage.
The judgments relied upon by the learned counsel for the
respondent are distinguishable as in those cases
proceedings had travelled up to this Court after decision by
the Courts below in divorce proceedings, where the parties
had led evidence in old matrimonial dispute. There was
sufficient material on record and the ground on which the
marriage was dissolved in exercise of power under Article
142 of the Constitution of India, was irretrievable breakdown
of marriage which otherwise is not a ground in the Hindu
Marriage Act,1955 for dissolution of marriage.
Transfer Petition (C) No.1475 of 2021
22.
As far as appearance of the parties through video
conferencing is concerned, sufficient guidance has been
given by this Court in the case of <cite>Santhini v. Vijaya
Venketesh (2018) 1 SCC 1</cite>.
23.
For the reasons mentioned above, we do not find
any merit in the present petition. The same is accordingly
dismissed.
|
1.
The appellant is before this Court assailing the
order dated 09.03.2017 passed by the High Court of
Orissa at Cuttack, in W.P.(C) No.23103/2013. By the
said order the High Court was of the opinion that the
disputed questions of fact involved in the petition cannot
be gone into in the writ jurisdiction. Accordingly, the
prayer made in the petition was not entertained and the
1
appellant was relegated to approach the appropriate
forum available for redressal of its grievance. The
appellant, therefore being aggrieved is before this Court.
2.
The respondent No.1State of Odisha had granted
the lease of the property in question in favour of the
respondent No.5Utkal Ashok Hotel Corporation Limited
(for short ‘UAHCL’) for 99 years under the document
dated 24.01.1989. UAHCL was, in that view, running an
establishment in the name and style ‘Hotel Nilachal
Ashok’ in the said premises at Puri. The same being
unviable was closed down with the approval of Board of
Directors in the year 2004. Thereafter, UAHCL decided to
lease out the same for a period of 40 years. Tender was
floated in the year 2009. The appellant was one among
the tenderers who participated in the process and being
the highest bidder was considered. Accordingly, the
Letter of Intent (for short ‘LOI’) dated 19.01.2010 was
issued in favour of the appellant delineating the terms to
be complied pursuant to which the lease agreement was
to be signed.
2
3.
Among the other conditions which were to form
part of the lease agreement, even before executing the
lease agreement the requirement was for the appellant to
pay a sum of Rs.9.34 crores
to UAHCL within 30
days, of which Rs.8.82 crores was towards non
refundable amount which was to be paid upfront; the
security deposit of Rs.26 lakhs and the advance
minimum guaranteed annual lease premium for the first
year of Rs.26 lakhs was also to be paid.
4.
On payment of the said amount the lease was to
be executed and the other conditions would come into
operation. The appellant who was unable to pay the
amount within the time stipulated, requested the UAHCL
that they be permitted to deposit a part of the amount
i.e., Rs.4.41 crores on 19.09.2010 and the balance
amount by 15.04.2010 which was favourably considered
by UAHCL through their communication dated
12.02.2010. Such indulgence was shown as special case.
The appellant accordingly deposited a portion of upfront
amount to the tune of Rs.4.41 crores on 18.02.2010, but
the balance amount was not deposited within the
3
extended time stipulated i.e., before 15.04.2010. In that
view, the lease agreement could not be executed.
However, in view of the request from the appellant,
UAHCL through their communication dated 25.11.2010
once again acceded to the request permitting the
appellant to pay the balance amount before 15.12.2010.
5.
The appellant thereafter paid (i) the sum of Rs.2
crores on 28.12.2010, (ii) sum of Rs.1.41 crores on
29.12.2010 and (iii) the sum of Rs.70 lakhs on
07.01.2011. Such payment, according to the appellant
constitutes the payment which was required to be made
as per the LOI. However, the time gap which had ensued
had created a position wherein the grievance of the
employees was to be addressed and they were to be given
the benefit of voluntary retirement. Since the LOI dated
19.01.2010 had also provided for regulating the manner
in which the employees are to be treated during the lease
period and had provided the liberty to offer voluntary
retirement, the UAHCL required the appellant to bear the
liability towards the same. The same did not reach a
finality and in the meanwhile the Board of Directors of
4
UAHCL took the decision to terminate the LOI dated
19.01.2010 since the appellant had failed to comply with
clause 2 thereof, which required the payment of Rs.9.34
crores within 30 days of issuance of LOI.
6.
Even prior to communication of the decision on
10.12.2013, the appellant filed the special writ petition
before the High Court on 01.10.2013 wherein a prayer
was sought to direct UAHCL to execute the lease
agreement pursuant to the terms agreed under LOI dated
19.01.2010 and accept the balance amount along with
interest for delayed payment. During the pendency of
the writ petition the prayer was amended and the
appellant sought for quashing the letter dated
10.12.2013 whereby UAHCL decided to terminate the
LOI. UAHCL had filed their objection statement opposing
the writ petition including contending therein with regard
to the maintainability of the writ petition in a contractual
matter. The learned Division Bench of the High Court
having taken note of the rival contentions and the
dispute involved for adjudication, was of the opinion that
the disputed questions are best left to be resolved before
5
the appropriate forum. The appellant is assailing the said
order.
7.
We have heard Mr. Sanjay Bansal, learned counsel
appearing for the appellant, Mr. Ashok Kumar Gupta,
learned senior counsel appearing for UAHCL and
perused the appeal papers.
8.
The learned counsel for the appellant would
contend that the action of UAHCL to cancel the LOI and
retain the amount paid thereunder is not justified. In an
attempt to fortify his submission, the learned counsel
has referred to LOI dated 19.01.2010 with reference to
clause 2, to point out that the upfront amount payable
within 30 days though not paid within the time
stipulated therein, the appellant had sought extension of
time to pay which was agreed to by the communication
dated 04.02.2010 and extended by the communication
dated 25.11.2010. Though the time agreed thereunder is
up to15.12.2010, the amount paid by the appellant on
28.12.2010 (Rs.2 crores), 29.12.2010 (Rs.1.41 crores)
and 07.11.2011 (Rs.70 lakhs) had been accepted without
demur and as such the upfront payment of Rs.8.82
6
crores as required had been paid. In that view, the lease
agreement was required to be executed. It is contended,
though that was position, UAHCL instead of executing
the lease agreement had through the communication
dated 13.04.2011 raised the issue of the appellant
having to bear the total liability on account of providing
voluntary retirement to the employees which was as per
the decision of the Board of UAHCL due to insistence of
the State Government, though it was not a condition in
the LOI nor could have been included in the lease
agreement. It is pointed out that clause 11 of the LOI
though provided for regulating the manner in which the
employees are to be maintained had indicated that the
appellant shall not retrench them but the liberty was for
the appellant to consider VRS. As such it could not be
imposed on the appellant is the contention. In such
circumstance, it is contended by the learned counsel that
the appellant having made the payment was entitled for
the lease agreement to be executed in their favour. Hence
the termination being bad, be set aside and the UAHCL
7
be directed to execute the lease agreement is his
submission.
9.
The learned counsel for UAHCL would on the other
hand contend that the LOI was issued in favour of the
appellant after the tender process and as such the terms
of the LOI was required to be complied. Despite the
payment of Rs.9.34 crores required to be made within 30
days, the appellant had failed to comply with the same. It
is true that as per the request of the appellant the time
was extended, but it was only a concession as a special
case. Even as per the extension granted the payment was
required to be made by 15.12.2010. But, even as per the
admitted case of the appellant the payment towards the
balance of the upfront amount was made only on
28.12.2010, 29.12.2010 and 07.01.2011 which was
subsequent to the date till which extension was provided.
That apart, since the requirement is to pay Rs.9.34
crores within the time stipulated, the security deposit
and advance minimum guaranteed annual lease
premium amount was also required to be paid within the
time stipulated but had not been paid. As such the
8
appellant cannot contend that they have performed their
obligation so as to assail the termination of LOI and seek
execution of the lease agreement. In that view, while
justifying the termination it is also contended that the
upfront amount of Rs.8.82 crores being onetime non
refundable amount, it is within the powers of UAHCL to
retain the same. Alternatively, it is contended that
UAHCL was forced to incur idle expenses towards
maintenance and the benefits payable to the employees
without getting returns as the lease had not materialised
due to the default committed by the appellant. In this
regard, roughly an amount of Rs.4.5 crores has been
incurred by UAHCL which in any event, the appellant is
liable to reimburse. In that view, the learned counsel
seeks that the appeal be dismissed.
10.
In the light of the contentions put forth, it is seen
that the lease agreement was to be entered into between
the parties pursuant to the terms depicted in LOI and on
compliance of the initial obligations set out therein. The
present dispute relates to the initial payment that was
required to be made by the appellant within the time
9
frame set out in the LOI and nonadherence to which has
resulted in termination of LOI. Clause 2 of the LOI
provides for the same, which reads as hereunder:
“2. You shall execute the Operating Lease
Agreement within 30 days of the issue of LOI
and pay an amount of Rs.9.34 crore within
these 30 days as per following details
i.
ii.
Onetime nonrefundable upfront
payment of Rs.8.82 crore.
Security Deposit (Rs.26.00 lakh) as per
article iv.
iii. Advance Minimum Guaranteed Annual
Lease Premium for the first year
(Rs.26.00 lakh) as per annexix
Financial Bid.”
11. A perusal of the same indicates that the appellant
was obliged to pay an amount of Rs.9.34 crore within
30 days from 19.01.2010 and execute the Operating
Lease Agreement. Towards the said amount, a sum of
Rs. 8.82 crore was payable upfront as an onetime non
refundable amount. Though the learned counsel for the
appellant sought to contend that the Minimum
Guaranteed Annual Lease Premium and Security
deposit of Rs. 26 lakh each are to be paid subsequently
10
when the lease is executed, in our view it cannot be
considered to be loose ended. Since Clause 2 refers to
Rs.9.34 crore which is payable in 30 days and that
includes the said amount of Advance Annual Premium
and Security deposit, the entire amount was payable
within 30 days. And the Lease Agreement was
simultaneously executable. It only means that the same
should be paid and the formality of execution of Lease
Agreement also should be completed in the said 30 days
and the payment to be made includes the upfront
amount of Rs.8.82 crore.
12. In that backdrop it is necessary to examine the
manner in which the things have proceeded after issue
of LOI. Admittedly the appellant was not ready with the
amount to make the payment within the timeframe
contemplated under Clause 2 of LOI. The appellant,
through their letter dated 04.02.2010 requested UAHCL
that they be allowed to pay 50% of the bid money by
19.02.2010 which in our view will include all the
components indicated in Clause 2 of LOI and not just
the upfront component. The rest of the money was
11
undertaken to be paid by 15.04.2010. UAHCL through
their reply dated 12.02.2010 allowed the same as a
special case. The appellant once again through their
letter dated 17.11.2010 requested for extension of time
for payment of Rs.4.93 crore. UAHCL again extended
the time till 15.12.2010.
13. Despite such indulgence shown by UAHCL the
appellant did not make the balance payment before
15.12.2010. Instead, the sum of Rs.4.11 crore was paid
subsequent thereto and that too, in instalments of Rs. 2
crores on 28.12.2010; Rs.1.41 crore on 29.12.2010 and
Rs.70 lakhs on 07.01.2011.
14. Though the learned counsel for the appellant seeks
to contend that UAHCL having received the said
payment cannot at this stage contend that the payment
was not made within the time stipulated, we are unable
to accept such contention. UAHCL is a corporation
which has different departments and as such the
remittance made being accepted in itself cannot be taken
as an act to condone the delay caused by the appellant
in complying with the terms of the LOI so as to alter the
12
terms of contract. There is no material on record that
subsequent to 15.12.2010, there is any positive act on
behalf of UAHCL to either extend the time for payment or
for having expressly condoned the delay and having
accepted the payment so as to regularise the
transaction. This is relevant more so in the context that
at an earlier point as against the time stipulated for
payment under the LOI specific correspondence was
exchanged between the parties and the time had been
expressly extended prior to the time fixed earlier having
expired. In such situation, when admittedly the balance
payment had not been made prior to 15.12.2010, unless
the appellant had obtained express extension from
UAHCL mere tendering the payment and the same
having been accepted cannot be construed as a positive
act to alter the contract.
15. No doubt, the appellants have relied on the
communication dated 13.04.2011 addressed by the
General Manager, UAHCL indicating therein that the
issue of offering VRS to all the employees unwilling to
join the new management was a consideration and the
13
VRS amount will have to be paid by the appellant to
UAHCL. Apart from the reason assigned by the High
Court to indicate that the same cannot be treated in
favour of the appellant, the said letter does not indicate
that the discussion in that regard was after indicating to
the appellant that the delay in payment of the upfront
amount has been condoned and accepted. If at all the
said aspect relating to VRS of the employees was also
mutually agreed and, in that context, if UAHCL had
proceeded to condone the delay and enter into the lease
agreement it is only in such circumstance the exchange
of correspondence in that regard would have assumed
relevance. If that be the position, when admittedly the
appellant was required to make the agreed payments
within the timeframe indicated under LOI dated
09.01.2010 and the appellants themselves being unable
to comply with the requirement, though having secured
extensions on two occasions cannot turn around to
contend otherwise at this juncture. Despite the extended
period having come to an end on 15.12.2010, the
appellant not having made the full payment within the
14
said date cannot at this stage contend to have complied
with the terms so as to seek a direction to UAHCL to
execute the lease agreement. In fact, the High Court
having examined the material on record has also arrived
at such conclusion.
16. Notwithstanding such conclusion reached by the
High Court, ultimately it has arrived at the decision that
in view of the disputed questions to be resolved between
the parties, the same cannot be gone into in writ
jurisdiction. The learned counsel for the appellant in
that view has placed reliance to the case in <cite>Unitech
Ltd. and Others vs. Telangana State Industrial
Infrastructure Corporation (TSICC and Ors.) 2021 (2)
SCALE 653</cite>, the decision to which one of us (Mr. Justice
M.R. Shah) is a member on the Bench, with specific
reference to para 32 thereof, which reads as hereunder:
“32. Much of the ground which was sought to be
canvassed in the course of the pleadings is now
subsumed in the submissions which have been
urged before this Court on behalf of the State of
Telangana and TSIIC. As we have noted earlier,
during the course of the hearing, learned Senior
Counsel appearing on behalf of the State of
Telangana and TSIIC informed the Court that the
entitlement of Unitech to seek a refund is not
questioned nor is the availability of the land for
15
carrying out the project being placed in issue.
Learned Senior Counsel also did not agitate the
ground that a remedy for the recovery of moneys
arising out a contractual matter cannot be availed of
under Article 226 of the Constitution. However, to
clear the ground, it is necessary to postulate that
recourse to the jurisdiction under Article 226 of the
Constitution is not excluded altogether in a
contractual matter. A public law remedy is available
for enforcing legal rights subject to wellsettled
parameters.”
17. Having noted the said decision, a reference to the
order passed by the High Court would indicate that the
High Court though having referred to the decisions in
<cite>Arya Vyasa Sabha v. Commissioner of Hindu
Charitable & Religious Institutions & Endowments,
AIR 1976 SC 475</cite>, <cite>DLF Housing Construction Private
Ltd. Vs. Delhi Municipal Corporation AIR 1976 SC
386</cite>, <cite>National Textile Corporation Ltd. vs. Haribox
Swalram AIR 2004 SCC 1998</cite> , <cite>Dwarka Prasad v. B.D.
Agarwal, AIR 2003 SC 2686</cite>, and <cite>Defence Enclave
Residents' Society v. State of U.P. AIR 2004 SC 4877</cite>
to note the limitations while considering a writ petition
under Article 226 of the Constitution of India has in that
view taken note of the fact situation arising in the
16
instant case. It is on facts that the High Court has
arrived at the conclusion that such disputed questions
of fact cannot be resolved in the writ petition of the
present nature. Therefore, in the present facts, the High
Court has not dismissed the writ petition on
maintainability but having taken note of the issue
involved was of the opinion that the contentions urged
would necessitate the requirement of recording evidence
and therefore relegated the parties to an appropriate
forum. To that extent, though we take note of the
observations made by the High Court, keeping in view
the nature of the considerations made, the prayers
which were sought in the amended writ petition were
required to be conclusively answered by the High Court
on the aspect as to whether the decision of UAHCL to
terminate the LOI dated 19.01.2010 was justified and
the requirement for resolution of the dispute by an
appropriate forum ought to have been left open only to
the incidental aspect which may require appropriate
evidence to be tendered and adjudication to be made by
an appropriate forum.
17
18. Keeping these aspects in view, having noted that the
appellant had failed to adhere to the terms indicated in
the LOI dated 19.01.2010 and the payment required
thereunder not being made even within the extended
period, the Board of Directors of UAHCL were justified in
deciding to terminate the LOI through their letter dated
10.12.2013. In fact, the prayer no. 3 seeking calculation
of interest on the amount deposited and such amount is
being sought to be adjusted towards the balance
payments would in itself indicate that even to the
knowledge of the appellant, the entire payments had not
been made even as on the date of the filing the writ
petition. In such circumstance, when the LOI has been
rightly terminated, the directions sought in the writ
petition to execute the lease agreement pertaining to
‘Hotel Nilanchal Ashok’, Puri does not arise and the
prayers in that regard are liable to be rejected.
19. Having arrived at the above conclusion, the next
aspect which would engage our attention is as to the
manner in which the amount paid by the appellant is to
be treated. The learned counsel for UAHCL would
18
contend that the LOI provides that the onetime upfront
amount to be paid is nonrefundable, in that view, it is
contended that the said amount is not liable to be
refunded. Even otherwise due to the delay caused by the
appellant and having obtained the statusquo order from
the court by litigating with regard to the subject matter
UAHCL have been prevented from otherwise utilising the
property which has caused loss to them and the said
amount would be adjustable towards the same is his
contention.
20. On taking note of the contention, a close perusal of
the phrase employed in the LOI would indicate the one
time payment made upfront is shown as “non
refundable” and such payment is towards execution of
the Operating Lease Agreement. If that be the position,
the terms of LOI is clear that the said payment is towards
the lease rentals and is the upfront payment which
becomes a part of the lease transaction and therefore not
refundable only if the lease agreement comes into
operation and not otherwise. The word employed is not
“forfeiture”, therefore, the amount payable towards the
19
advance lease rentals and the other advance payments
provided in clause 2 of the LOI, cannot be forfeited if
there is default in complying with the term and entering
into the lease agreement, going by the stipulations
contained in the LOI governing the parties herein. That
apart, as noted, the amount was required to be paid,
latest by the extended date i.e., 15.10.2010. The very
termination of the LOI is for the reason that the entire
payment was not made even within the timeframe. The
cause for termination of LOI occurred on 15.10.2010.
Hence the amount paid on 28.12.2010 (Rs.2 crores),
29.12.2010 (Rs.1.41crores) and 7.01.2011 (Rs. 70 lakhs)
being clearly made after the said date in any event
cannot be retained by UAHCL as otherwise it will amount
to unjust enrichment. Therefore, it is liable to be
refunded. Even with regard to the amount of Rs.4.41
crores which was paid on 07.02.2010, since we have held
that the same cannot be forfeited it is an amount which
will be available for accounting. In a normal
circumstance, a direction was required to be issued to
refund the said amount also.
20
21. However, as noted it is the contention on behalf of
UAHCL that due to the conduct of the appellant in not
paying the amount within time and completing the lease
agreement formalities and thereafter involving UAHCL in
litigation and taking benefit of the status quo order,
UAHCL was unable to utilise the property but on the
other hand had to incur expenses. On this aspect, prima
facie it is seen that the lease transaction ought to have
been entered into before 19.02.2010. It is on account of
the difficulty expressed by the appellant, the time for
payment of upfront amount was extended ultimately up
to 15.12.2010, in which process itself more than 10
months had elapsed. Soon thereafter the appellant had
filed the writ petition before the High Court and the
matter has been pending before one forum or the other
for nearly a decade during which time the property could
not be utilised nor expenses could be frozen. Even if that
be so, it would not be appropriate for this Court to
hazard a guess with regard to the actual loss that would
have been suffered by UAHCL. At the same time, when
this prima facie aspect is noticed it would also not be
21
appropriate for this Court to direct UAHCL to refund the
amount to the extent of Rs.4.41 crore which was paid
within the timeframe and allow UAHCL to thereafter
initiate recovery process. On the other hand, it would be
in the interest of justice to permit UAHCL to retain the
amount and grant liberty to the appellant to file an
appropriately constituted civil suit seeking recovery of the
said amount. In the said proceedings it would be open for
UAHCL to put forth the contention to set off the amount
towards the loss suffered by them or to seek for counter
claim if any further amount is due. In such proceedings
it would be open for the competent civil court to
independently consider that aspect of the matter on its
own merits for which we have not expressed any opinion
on merits relating to that aspect. Even with regard to the
claim of interest, if any, by the appellant that aspect is
also kept open to be adjudicated in the civil suit. The
pendency of the suit shall not be an impediment for
UAHCL to deal with the property or to retender the same
in any manner.
22
22.
In the light of the above we pass the following
order:
(i)
The order dated 09.03.2017 passed by
High Court of Orissa at Cuttack in W.P.
(C) No.23103/2013 stands modified.
(ii)
In that view, the prayer of the appellant
to quash the letter dated 10.12.2013
terminating the letter of LOI dated
19.01.2010
stands
rejected.
Consequently, the termination of LOI
dated 19.01.2010 is upheld. However,
UAHCL is directed to refund the
amounts deposited by the appellant on
28.12.2010 (Rs.2 crores), on 29.12.2010
(Rs.1.41 crores) and on 07.01.2011
(Rs.70 lakhs), in all amounting to
Rs.4.11 crores within four weeks from
this day.
(iii) The appellant is reserved liberty to file a
civil suit for recovery of Rs.4.41 crores
23
paid to UAHCL on 17.02.2010 subject to
the observations made above and all
contentions of the parties in that regard
are left open.
(iv)
In view of the above conclusions and
disposal of the appeal, the amount of
Rs.3 crores deposited by the appellant
before this Court, which is kept in fixed
deposit shall be refunded to the
appellant with accrued interest thereon.
(v)
The appeal is disposed of accordingly
with no order as to costs.
(vi) Pending application, if any, shall stand
disposed of.
|
In this writ petition, the petitioner-Trust and the
college have prayed for issue of a writ of certiorari for
quashing the order dated 31.05.2017 passed by the
respondent No.1 whereunder the petitioners have been
debarred from admitting 150 students in the MBBS course
in the academic years 2017-18 and 2018-19 and further to
restrain the respondent No.2, Medical Council of India
(MCI), to encash the bank guarantee of Rs. 2 crores
2
furnished by the petitioner-institution. That apart, the
prayer is to quash the order dated 14.08.2017 passed by
the respondent No.1 for reiterating the said order. The relief
has been sought
for
issue of writ of mandamus,
commanding the respondent No.1 to grant renewal for the
academic
year
2017-18
keeping
in
view
the
recommendations dated 14th May, 2017, submitted by the
Oversight Committee constituted in terms of the order of
this Court and to direct the respondents to permit the
institution to admit 150 students in MBBS Course for the
academic year 2017-18.
2. At the very inception, it is necessary to state that
though many a document has been filed and prolonged,
anxious, forceful and sometimes vehement arguments have
been canvassed, yet the controversy, as we perceive, lies in
a narrow compass. And to appreciate the same, we are
required to set out the chronology of litigation. Its life is not
long.
3.
The petitioner No.1, a Trust, established under the
Indian Trust Act, 1882 decided to establish a new Medical
3
College by the name of Kerala Medical College at Palakkad,
Kerala. It submitted an application under Section 10-A of
the Indian Medical Council Act, 1956 (for brevity, “the Act”)
to the respondent No.1 to establish the Medical College in
the name and style of Kerala Medical College and Hospital
seeking admission of 150 students in the MBBS Course for
the academic year 2014-15. As certain deficiencies were
pointed out by the MCI, it was not granted Letter of
Permission (LOP) for the year 2014-15. Thereafter, in 2015,
an application was filed for grant of LOP for the academic
session 2016-17. A team of assessors of the respondent No.
2 conducted assessment of the college in regard to grant of
LOP for the academic year 2016-17 and submitted its
report. The respondent No.2, on the basis of the reports of
the assessors dated 16.12.2015 and 17.12.2015 in its
Executive Committee meeting dated 28.12.2015 made
recommendation to the respondent No.1 not to grant LOP
for the academic year 2016-17. On 18.01.2016, the
respondent No.1 afforded an opportunity of hearing to the
petitioner as contemplated under Section 10A(4) of the Act
and the petitioner gave its explanation as regards the
4
deficiencies pointed out by the respondent No.2 and the
respondent No.1 being satisfied referred back the matter to
the respondent No. 2 for review.
4. As the
factual narration would evince, on 10th
February, 2016, a team of assessors of the respondent No. 2
conducted verification assessment for grant of LOP for the
academic year 2016-17. In the mean time, the Constitution
Bench in <cite>Modern Dental College and Research Center
and others v. State of Madhya Pradesh and others 1</cite>
constituted the Oversight Committee headed by Justice
R.M. Lodha former CJI to oversee the functioning of the
MCI. We shall refer the relevant paragraphs of the said
judgment at a later stage. On 13th May, 2016, the report of
the assessors team was considered by the Executive
Committee of the respondent No.2 in its meeting dated
13.05.2016 and on 14.5.2016 the MCI recommended the
disapproval of the scheme of the petitioner under Section
10-A of the Act for the academic year 2016-17. However,
after Oversight Committee was constituted, the Central
Government issued a public notice informing all the Medical
1 (2016) 7 SCC 353
5
Colleges to submit a compliance report concerning their
respective colleges who had applied for LOP for 2016-17. As
the facts would unfold, the 1st respondent sent the
compliance report along with the reply of the MCI to the
Oversight Committee for consideration which on 11.08.2016
approved the same for the year 2016-17 imposing certain
conditions.
5. At this juncture, it is necessary to state in what
circumstances the Oversight Committee was constituted by
the Constitution Bench. It referred to the functioning of
MCI and keeping in view certain other factors including a
report of the Expert Committee directed the Central
Government to consider and to take further appropriate
action in the matter at the earliest. At the same time,
however, in exercise of power under Article 142, the Court
constituted the Oversight Committee to oversee the
functioning of the MCI and all other matters. In this regard
the Court said:-
“In view of the above, while we do not find any
error in the view taken by the High Court and
dismiss these appeals, we direct the constitution
6
of an Oversight Committee consisting of the
following members:
1. Justice R.M. Lodha (former Chief
Justice of India)
2. Prof. (Dr) Shiv Sareen (Director, Institute
of Liver and Biliary Sciences)
3. Shri Vinod Rai (former Comptroller and
Auditor General of India)
A notification with respect to constitution of the
said Committee be issued within two weeks from
today. The Committee be given all facilities to
function. The remuneration of the Members of
the Committee may be fixed in consultation with
them.
The said Committee will have the authority to
oversee all statutory functions under the MCI
Act. All policy decisions of MCI will require
approval of
the Oversight Committee. The
Committee will be free to issue appropriate
remedial directions. The Committee will function
till the Central Government puts in place any
other
due
consideration of the Expert Committee Report.
Initially the Committee will function for a period
of one year, unless suitable mechanism is
brought in place earlier which will substitute the
said Committee. We do hope that within the said
period the Central Government will come out
with an appropriate mechanism.”
appropriate mechanism
after
6. As mentioned earlier, the Government constituted the
Oversight Committee and thereafter the assessment report
7
and the views of the Executive Committee were sent to the
Oversight Committee.
7.
The Oversight Committee, after some analysis, took
the
applications
for
consideration
pertaining
to
establishment of Medical Colleges for the academic year
2016-2017, forwarded by Ministry of Health and Family
Welfare (MHFW) on 22nd July, 2016. Dealing with the
present college, the Oversight Committee directed as
follows:-
“Kerala Medical College, Palakkad, Kerala, MBBS
(150 seats), LOP for 2016-2-17 u/s 10A.
material
The Institution had stated that all deficiencies
(faculty/resident/clinical
and
infrastructure) pointed out by MCI have been
made up by them. The OC peruse the statement
in the compliance report submitted by the
college. These statements satisfy the criteria
stated in para 3.1 above. Accordingly, the
application is approved subject to conditions laid
down in aforementioned para 3.2.”
8.
Para 3.2 of the said order read as follows:-
“3.2 The applicants for new private colleges for
UG for 2016-17 whose applications, have been
approved by OC, shall submit to MHFW, within
15 days of issue of notification of approval by
MHFW u/s 10A(4) of IMC Act, 1956, the
following:
(i)
8
An affidavit from the Dean/Principal and
Chairman of the Trust concerned, affirming
fulfillment of all deficiencies and statements
made in the respective compliance report
submitted to MHFW by 22 June 2016,
(ii) A bank guarantee in the amount of Rs. 2
crore in favour of MCI, which will be valid
for 1 year or until the
first renewal
assessment, whichever is later. Such bank
guarantee will be
the
prescribed
fee submitted alongwith the
application.
in addition
to
3.2(a) OC may direct inspection to verify the
compliance submitted by
the college and
considered by OC, anytime after 30 September
2016.
if
the compliances are
(b) In default of the conditions (i) and (ii) para 3.2
above and
found
incomplete in the inspection to be conducted
after 30 September 2016, such college will be
debarred from fresh intake of students for 2
years commencing 2017-18.”
9.
In compliance of the conditional approval granted by
the Oversight Committee, the assessment was carried out
on 28th and 29th December, 2016, by the team of assessors
and the following defects were pointed out:-
“1. Deficiency of faculty is 13.84% as detailed
in the report.
2. Shortage of Residents is 8.69% as detailed
in the report.
3. No Anti Sera are available in Microbiology
laboratory.
4. Bed Occupancy is 50% at 10 a.m. on day of
assessment as under:
9
Department
Beds
Available Occupied
General
Medicine
Paediatrics
TB & Chest
Psychiatry
Skin & VD
General
Surgery
Orthopaedics
Opthamology
ENT
O.G.
72
24
08
08
08
90
30
10
10
40
29
20
07
06
07
31
25
02
02
21
TOTAL
300
150
#
1
2
3
4
5
6
7
8
9
10
ICUs: There was only 1 patient in ICCU,
5. Casualty: Separate casualty for O.G. is not
available. Crash Cart is not available.
6. O.T.: Preoperative beds are not available.
7.
SICU on day of assessment.
8. Only 1 out of 2 Static X-ray machines has
AERB approval.
9. Blood Bank: Only 2 units were dispensed
on day of assessment.
10. ETO Sterlizer is not available.
11. OPD: Separate Registration counters for
OPD/IPD are not available.
12. Audiometry (Soundproof & Air-conditioned)
is not available. There was no Audiometer.
13. Other deficiencies as pointed out in the
assessment report.”
10. The Executive Committee took into consideration the
report of the assessors and letter dated 29th December,
2016 of the Principal, Kerala Medical College, Palakkad
regarding promotion of Dr. Munir U.A. from Assistant
10
Professor to Associate Professor in the department of
Pediatrics and the clinical material and leave of the faculty
and resident doctors during MCI assessment. Regard being
had to the deficiencies, the MCI recommended to the
Central Government not to grant Letter of Permission.
11. Thereafter, the Union of India passed an order on 31st
May, 2017, debarring the petitioner-College to admit the
students in the MBBS course in the academic years 2017-
2018 and 2018-2019 and also authorized the MCI to
encash the bank guarantee of Rs.2.00 crore. The said order
reads thus:-
“In continuation to this Ministry’s letter dated
20.08.2016 granting conditional permission for
establishment of a medical college 150 seats for
the academic year 2016-2017 on the basis of
approval communicated by Supreme Court
Mandated Oversight Committee on MCI and after
granting an opportunity of hearing to the College
with reference to the recommendation of the
MCI’s
NO.MCI-36(41)(e-86)/2016-
Med./167376 dated 15.01.2017, I am directed to
convey the decision of the Central Government to
debar Kerala Medical College, Palakkad from
admitting students in next two academic years
i.e. 2017-2018 & 2018-2019 and also
to
authorize MCI to encash the Bank Guarantee of
Rs.2.00 crore.
letter
11
You are therefore, directed not to admit
students in the MBBS course in the academic
years 2017-2018 & 2018-2019 at your College.
Thereafter, next batch of students shall be
admitted in the College only after obtaining
permission of
for
renewal.
Admissions made in violation of the above
directives will be treated as irregular and action
will be initiated under IMC Act & Regulations
made thereunder.”
the Central Government
12. The petitioner-Trust challenged the order of the
Central Government before the High Court of Kerala at
Ernakulam in Writ Petition (C) No.21195/2017 (Y) and the
High Court placing reliance on the judgment passed by this
Court in <cite>Glocal Medical College and Super Specialty
Hospital & Research Centre v. Union of India2</cite> on 1st
August, 21017, passed the following order:-
“In the light of the order passed by the Apex
Court in Writ Petition (Civil) No.411 of 2017 and
connected matters on 01.08.2017, as the medical
colleges involved in these cases are similarly
placed, I deem it appropriate to pass an interim
order directing the Central Government to
consider afresh
record
pertaining to the issue of renewal or otherwise of
the letter of permission granted to the petitioner
colleges/institutions. Ordered accordingly. It is
made clear that while undertaking this exercise,
the Central Government shall re-evaluate the
the materials on
2 (2017) 8 SCALE 356
12
recommendations/views of the MCI, Hearing
Committee, Director General of Health Services
and the Oversight Committee, as available on
records. The Central Government shall also
afford an opportunity of hearing to the petitioner
colleges/institutions to the extent necessary.
The process of hearing and the final reasoned
decision thereon, as ordered, shall be completed
peremptorily, within a period of fifteen days from
today.”
13.
In pursuance of the aforesaid order, the Central
Government on 14th August, 2017, passed an order
declining Letter Of Permission to the petitioner-institution.
The Central Government noted:-
“Whereas, the MCI vide letter dated 15.1.2017
has informed and recommended to the Ministry
as under:
“In view of the above, the college has failed to
abide by the undertaking it had given to the
Central Govt. that there are no deficiencies as
per clause 3.2(i) of the directions passed by the
Supreme Court mandated Oversight Committee
vide communication dated 11/8/2016. The
Executive Committee, after due deliberation and
discussion, have decided that the college has
failed to comply with the stipulation laid down by
the Oversight Committee.
Accordingly, the
Executive Committee recommends that as per
the directions passed by Oversight Committee in
para
dated
11/08/2016 the college should be debarred from
admitting students in the above course for a
period of two academic years i.e. 2017-18 &
2018-19 as even after giving an undertaking that
they have fulfilled the entire infrastructure for
establishment of new medical college at Palakkad
communication
3.2(b)
vide
13
by Royal Medical TGrust under Kerala University
of Health Sciences, Thrissur the college was
found to be grossly deficient. It has also been
decided by the Executive Committee that the
Bank Guarantee furnished by the college in
pursuance of the directives passed by the
Oversight Committee as well as GOI letter dated
20/08/2016 is liable to be enchashed.
Ministry decided to grant a personal hearing to
the College on 08.02.2017 by the DGHS. The
Hearing Committee after considering the oral and
written submission of the College, submitted its
report to the Ministry. In its report, the Hearing
Committee observed as under:
Sl. No
Deficiencies reported by MCI
Observations
i.
ii.
iii.
iv.
Deficiency of faculty is 13.84% as detailed
in the report.
Shortage of Residents is 8.69% as detailed
in the report
No Anti Sera are available in Microbiology
laboratory.
Bed occupancy is 50% at 10 a.m. on day of
assessment as under
of hearing
committee
No
satisfactory
justification
for
deficiencies.
Beds
Available Occupied
72
29
20
07
06
07
31
25
02
02
21
150
# Departure
1 General
Medicine
Paediatrics
2
TB & Chest
3
4
Psychiatry
5 Skin & VD
6 General
Surgery
24
08
08
08
90
7 Orthopaedics 30
8 Ophtalmology 10
9 ENT
10
40
10 O.G.
Total
300
14
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
Casualty : Separate Casualty for O.G. is
not available. Crash Cart is not available
O.T. : Preoperative beds are not available
ICUs : There was only 1 patient in ICCU,
SICU on day of assessment.
Only 1 out of 2 Static X-ray machines has
AERB approval.
Blood Bank: Only 2 units were dispensed
on day of assessment.
ETO Sterilizer is not available.
OPD : Separate Registration counters for
OPD/IPD are not available.
Audiometry (Soundproof & Air-conditioned)
is not available. There was no Audiometer.
Whereas, the Ministry forwarded the Hearing
Committee report to the OC for guidance. The
OC vide its letter dated 14.05.2017 conveyed
their following views to the Ministry:-
is within
is 3.03% which
(i)
Faculty:- Considering the 7 members of
faculty (out of 8) as explained by the College, the
deficiency
the
acceptable limits.
(ii) Residents:- Considering the 4 residents as
explained by the College, there is no deficiency.
(iii) No Anti Sera:- The deficiency is subjective
though explained by the College.
(iv) Bed occupancy:- The College has explained
the grounds.
(v) Casualty:- The College has explained the
grounds. This deficiency is subjective. No MSR.
(vi) OT:- The College has explained the grounds.
(vii) ICUs:- The College has explained the
grounds. This deficiency is subjective. No MSR.
(viii) X-Ray machines:- The statement of College
is correct as seen from the attached approvals.
(ix) Blood Bank:- The ColLege has explained
the grounds. This deficiency is subjective. No
MSR.
(x) ETO:- The College has explained the
grounds.
(xi) OPD:- The College has explained
grounds.
the
15
(xii) Audiometry:- The College explanation is
acceptable on the basis of photos attached.
LOP confirmed.”
14. After so noting, the Central Government referred to its
earlier order dated 31st May, 2017 and the order dated 2nd
August, 2017, passed by the High Court of Kerala at
Ernakulam and held thus:-
“Now, in compliance with the above direction of
Hon’ble High Court dated 2.8.2017, the Ministry
granted hearing to the college on 8.8.2017. The
Hearing Committee after considering the record
and oral & written submission of the college
submitted its report to the Ministry. Findings of
Hearing Committee are as under:
“MCI has pointed out deficiency of 9 faculty
and 4 residents against the requirement.
The shortfall is attributed by the college to
leave opted by staffs during the Christmas –
New Year week. Supporting documents
such as bank statement Form-16
(for
financial year 2015-16) were also submitted
for the doctors on leave. It is observed that
the appointment orders
issued by the
college are without any reference number.
Nothing could be conclusively established
about the faculty on leave.
The submission of the college regarding
static x-ray machine, pre-operative beds,
ETO sterilizer, audiometry, etc. may be
accepted.
However, the college seems
deficient in bed occupancy.
In view of the Committee, the college is at
LoP stage and the facilities have to be
satisfactorily verified.
16
The Committee agrees with the decision of
the Ministry vide letter dated 31.05.2017 to
debar the college for two years and also
permit MCI to encash bank guarantee.
Accepting the recommendations of Hearing
Committee, the Ministry reiterates it earlier
decision dated 31.5.2017 to debar the
college from admitting students for a period
of 2 years i.e., 2017-18 & 2018-19 and also
authorize MCI to encash Bank Guarantee of
Rs.2 crores.”
The said order is the subject matter of assail in this
Writ Petition.
15. We have heard Dr. Rajiv Dhawan and Mr. Mukul
Rohatgi, learned senior counsel for the petitioners, Mr. Ajit
Kumar Sinha, learned senior counsel for the Union of India
and Mr. Vikas Singh, learned senior counsel along with Mr.
Gaurav Sharma, learned counsel for the MCI.
16. Learned counsel for the petitioners submit that the
inspection that has been carried out by the MCI is a
composite inspection for 2016-2017 and 2017-2018 and
when the deficiencies are marginal and, in fact, it can be
said there is really no deficiency, there is no justification to
deny the LOP for 2017-2018. It is urged by them that the
explanation offered by the petitioner-institution has really
17
not been taken into consideration and had it been
appositely appreciated, such an assessment could not have
been made by the assessors. They have also highlighted
that certain other institutions having more deficiencies have
been extended the benefit of LOP for 2017-2018, but for no
fathomable or acceptable reason, the institution in question
has been deprived of the said benefit. It is urged with
vehemence
that
the order passed by
the Central
Government is not in consonance with the judgments
rendered by this Court in <cite>Glocal Medical College (supra)</cite>,
<cite>IQ City Foundation and Another v. Union of India &
Ors3</cite>. That apart, it is contended that the inspection by the
MCI was done during the Christmas and New Year, which is
not permissible as per the Regulations and hence, the whole
report deserves to be disregarded. Additionally, it is
propounded that the status of the order passed by the
Central Government still remains an unreasoned one and
by stretch of reasoning, it can be conferred the distinction
of a reasoned order. Dr. Rajiv Dhawan, pyramiding the
aforesaid submissions along with Mr. Mukul Rohatgi,
3 (2017) 8 SCALE 369
18
submits that the Court does not sit in appeal over such
order and, therefore, when the order is absolutely perverse
and arbitrary, it should be overturned in exercise of power
of judicial review and the institution should be granted LOP
for the academic year 2017-2018.
17. Mr. Ajit Kumar Sinha,
learned senior counsel
appearing for the Union of India, per contra, would contend
that the Oversight Committee had passed a conditional
order and when the conditions were not fulfilled, the
institution has to face the consequences and in such a
situation it is extremely hollow on the part of the petitioner-
institution to set forth unacceptable criticism pertaining to
the order passed by the Central Government. He would
further submit that the order dated 31st May, 2017, as this
Court has already held, was not an order which reflected
reason, but the order impugned is irrefragably a reasoned
one because there is reference to the history of the
institution, the chronology of events, the report of the
Oversight Committee, the opinion of the Hearing Committee
and eventual expression of an opinion. According to him, if
such an order is not given the stamp of a ‘reasoned order’, it
19
will be granting premium to recalcitrant institutions, which
are bent upon
imparting medical education
in an
unscrupulous manner. According to Mr. Sinha, concept of
negative equality is not within the ambit of Article 14 of the
Constitution of India and, in any case, this Court has
issued notice to the other institutions and, therefore, the
petitioners cannot claim parity. Additionally, he would put
forth that in most of the matters, this Court has directed for
consideration of the LOP for the year 2018-2019 and the
present fact situation does not exposit a different scenario
and hence, this Court should not make any distinction in
the present case.
18. Mr. Vikas Singh, learned senior counsel appearing for
the MCI refuting the arguments advanced by the learned
senior counsel for the petitioners, contends that ascribing of
reasons by an administrative authority should not be
equated to a judgment of the Court, for what is required is
to see whether the reasons are discernible and whether
there has been application of mind. Mr. Singh would further
contend that the allegation made by the petitioner-
institution that the Executive Committee has not considered
20
the explanation offered by the competent authority of the
college shows an attitude of obstinacy and deviancy.
Learned senior counsel would contend that the in <cite>IQ City
Foundation (supra)</cite> when this Court remanded the matter
and in <cite>Glocal Medical College (supra)</cite> when this Court
granted the benefit on proper appreciation, it would be quite
lucent, the role conferred on the MCI of India and the
reason for extending the benefit to an institution for 2017-
2018.
That apart, propounds Mr. Singh, that the
educational institutions cannot remain disobedient to the
framework of the Regulations brought into existence under
Section 33 of the Act and assert with stubbornness that
they should be given the LOP. According to him, if such a
situation is allowed to prevail, the Act, the Regulations and
Minimum Standard Requirement (MSR) for the MCI would
be tenuous and ultimately come within the tentacles of
unscrupulous institutions.
19. This Court in <cite>IQ City Foundation (supra)</cite>, after
referring to <cite>Dr. Ashish Ranjan and Others v. Union of
21
India and Others4</cite> and <cite>Manohar Lal Sharma v. Medical
Council of India and Others5</cite>, <cite>Medical Council of India
v. Kalinga Institute of Medical Sciences (KIMS) and
Others 6</cite> and <cite>Royal Medical Trust (Registered) and
Another v. Union of India and Another7</cite> held thus:-
“On a reading of Section 10-A of the Act, Rules
and the Regulations, as has been referred to in
Manohar Lal Sharma (supra), and the view
expressed in Royal Medical Trust (supra), it
would be inapposite to restrict the power of the
MCI by laying down as an absolute principle that
once the Central Government sends back the
matter to MCI for compliance verification and the
Assessors visit the College they shall only verify
the mentioned items and turn a Nelson’s eye even
if they perceive certain other deficiencies. It
would be playing possum. The direction of the
Central Government for compliance verification
report should not be construed as a limited
remand as is understood within the framework of
Code of Civil Procedure or any other law. The
distinction between
the principles of open
remand and limited remand, we are disposed to
think, is not attracted. Be it clearly stated, the
said principle also does not flow from the
authority in Royal Medical Trust (supra). In this
context, the objectivity of the Hearing Committee
and the role of the Central Government assume
great significance. The real compliant institutions
should not always be kept under the sword of
Damocles. Stability can be brought by affirmative
role played by the Central Government. And the
4 (2016) 11 SCC 225
5 (2013) 10 SCC 60
6 (2016) 11 SCC 530
7 (2015) 10 SCC 19
22
stability and objectivity would be perceptible if
reasons are ascribed while expressing a view and
absence of reasons makes the decision sensitively
susceptible.
Having said this, we are not inclined to close
the matter. The petitioners have been running
the College since 2013-14. We have been
apprised that students who have been continuing
their education shall continue for 2017-18. As we
find the order of the Central Government is not a
reasoned one. It is obligatory on its part to
ascribe reasons. For the said purpose, we would
like the Central Government to afford a further
opportunity of hearing to the petitioners and also
take the assistance of the newly constituted
Oversight Committee as per the order dated July
18, 2017 passed by the Constitution Bench in
Writ Petition (Civil) No. 408 of 2017 titled Amma
Chandravati Educational and Charitable
Trust and others v. Union of India and
another and thereafter take a decision within
two weeks. Needless to say, the decision shall
contain reasons. We repeat at the cost of
repetition that the decision must be an informed
one.”
20. Section 10-A of the Act deals with permission for
establishment of new medical college, new course of study,
etc. Sub-section (7) of Section 10-A reads as follows:-
The
an
order,
Council,
while making
“(7)
its
recommendations under clause (b) of sub-
section (3) and the Central Government, while
passing
or
disapproving the scheme under sub-section (4),
shall have due regard to the following factors,
namely—
either
approving
23
training or accommodating
(a) whether the proposed medical college or the
existing medical college seeking to open a new or
higher course of study or training, would be in a
position to offer the minimum standards of
medical education as prescribed by the Council
under Section 19A or, as the case may be, under
Section 20 in the case of postgraduate medical
education.
(b) whether the person seeking to establish a
medical college or the existing medical college
seeking to open a new or higher course of study
or training or to increase its admission capacity
has adequate financial resources;
(c) whether necessary facilities in respect of staff,
equipment, accommodation, training and other
facilities to ensure proper functioning of the
medical college or conducting the new course or
study or
the
increased admission
capacity, have been
provided or would be provided within the time-
limit specified in the scheme;
(d) whether adequate hospital facilities, having
regard to the number of students likely to attend
such medical college or course of study or
training or as a result of the increased admission
capacity, have been provided or would be
provided within the time-limit specified in the
scheme;
(e) whether any arrangement has been made or
programme drawn to impart proper training to
students likely to attend such medical college or
course of study or training by persons having the
recognised medical qualifications;
(f) the requirement of manpower in the field of
practice of medicine; and
24
(g) any other factors as may be prescribed.”
21. Section 3-B of Indian Medical Council (Amendment)
Act, 2010, which confers the powers on the Board of
Governors, reads as follows:-
*
*
grant
“3-B. Certain modifications of the Act.—
During the period when the Council stands
superseded—
*
(b) The Board of Governors shall—
(i) exercise the powers and discharge the
functions of the Council under this Act and for
this purpose, the provisions of this Act shall have
effect subject to the modification that references
therein to the Council shall be construed as
references to the Board of Governors;
for
(ii)
establishment of new medical colleges or opening
a new or higher course of study or training or
increase in admission capacity in any course of
study or training referred to in Section 10A or
giving
the person or college concerned a
reasonable opportunity of being heard as
provided under Section 10A without prior
permission of the Central Government under that
section, including exercise of the power to finally
approve or disapprove the same; and
(iii) dispose of the matters pending with the
Central Government under Section 10A upon
receipt of the same from it.”
independently
permission
22.
In <cite>Manohar Lal Sharma (supra)</cite>, Section 3-B was
interpreted thus:-
25
“MCI, with the previous sanction by the Central
Government, in exercise of its powers conferred
by Sections 10-A and 33 of the Indian Medical
Council Act, 1956, made the Regulations known
as
the Establishment of Medical College
Regulations, 1999. Regulation 8 of the 1999
Regulations deals with grant of permission for
establishment of new college. Application/
Scheme submitted by the applicants is evaluated
and the verification takes place by conducting
physical inspection by the team of inspectors of
MCI. The Board of Governors may grant LoP to
the applicant for making admissions in the first
year of MBBS course in the medical college and
the permission is renewed every year subject to
the college achieving the yearly target mentioned
in “Minimum Standard Requirements for the
Medical College for 150 Admissions Annually
the
Regulations,
abovementioned
for
accommodation in the medical college and its
teaching hospital. Schedule
II deals with
equipment required for various departments in
the college and hospital. The requirements are
statutorily prescribed and, therefore, the Board
of Governors has no power to dilute the statutory
requirements mentioned in the abovementioned
Regulations.”
of
provides
Regulation
1999”. Schedule
I
23.
In <cite>Royal Medical Trust (supra)</cite>, the Court after due
advertence to Section 10-A of the Act and the Regulations
framed by the Medical Council of India, has ruled:-
“MCI and the Central Government have been
vested with monitoring powers under Section
10A and the Regulations. It is expected of these
authorities to discharge their functions well
within the statutory confines as well as in
26
and
same
time must
stages
conformity with the Schedule to the Regulations.
If there is inaction on their part or non-
observance of the time schedule, it is bound to
have adverse effect on all concerned. The affidavit
filed on behalf of the Union of India shows that
though the number of seats had risen, obviously
because of permissions granted for establishment
of new colleges, because of disapproval of
renewal cases the resultant effect was net loss in
terms of number of seats available for the
academic year. It thus not only caused loss of
opportunity to the students community but at
the same time caused loss to the society in terms
of less number of doctors being available. MCI
and the Central Government must therefore
show due diligence right from the day when the
applications are received. The Schedule giving
various
time-limits must
accommodate every possible eventuality and at
the
the
requirements of observance of natural justice at
various levels. In our view the Schedule must
ideally take care of:
(A) Initial assessment of the application at the
first level should comprise of checking necessary
requirements such as essentiality certificate,
consent for affiliation and physical features like
land and hospital requirement. If an applicant
fails to fulfil these requirements, the application
on the face of it, would be incomplete and be
rejected. Those who fulfil the basic requirements
would be considered at the next stage.
(B) Inspection should then be conducted by the
Inspectors of MCI. By very nature such
inspection must have an element of surprise.
Therefore sufficient time of about three to four
months ought to be given to MCI to cause
inspection at any time and such inspection
should normally be undertaken
latest by
comply with
27
January. Surprise inspection would ensure that
the required facilities and infrastructure are
always in place and not borrowed or put in
temporarily.
(C) Intimation of the result or outcome of the
inspection would then be communicated. If the
infrastructure and facilities are in order, the
medical college concerned should be given
requisite permission/renewal. However, if there
are any deficiencies or shortcomings, MCI must,
after pointing out the deficiencies, grant to the
college concerned sufficient
to report
compliance.
(D) If compliance is reported and the applicant
states that the deficiencies stand removed, MCI
must cause compliance verification. It is possible
that such compliance could be accepted even
without actual physical verification but that
assessment be left entirely to the discretion of
MCI and the Central Government. In cases where
actual physical verification is required, MCI and
the Central Government must cause such
verification before the deadline.
(E) The result of such verification if positive in
favour of the medical college concerned, the
applicant
requisite
permission/renewal. But if the deficiencies still
persist or had not been removed, the applicant
will stand disentitled so far as that academic year
is concerned.”
ought
given
time
to
be
[Emphasis added]
24. On a perusal of the aforesaid, it is clear as crystal that
the surprise inspection is permissible and the college is
required to remain compliant. The thrust of the matter is
28
whether the inspection is justified and the decision taken by
the Central Government is correct or not. To appreciate the
propriety and correctness of
the
inspection during
Christmas and New Year, it is necessary to refer to clause
8(3)(1)(d) of
the Establishment of Medical College
Regulations, 1999. The said clause reads as follows:-
“However, the office of the Council shall ensure
that such inspections are not carried out at least
2 days before and 2 days after important religious
and
the
Central/State Govt.”
festival holidays
declared
by
25.
In the case at hand, the assessors had gone for
inspection on 28th and 29th December, 2016. In <cite>Shri
Venkateshwara University Through its Registrar &
Another vs. Union of India and Another8 [Writ Petition
(Civil) No. 445 of 2017]</cite> this Court has referred to the
decision in <cite>Kanachur Islamic Education Trust (R) vs.
Union of India and Another9</cite> and after reproducing few
paragraphs has held:-
“On a careful reading of the aforesaid judgment,
we do not think that the clause has been
interpreted as not to allow any inspection on a
8 2017 SCC Online SC 1034
9 (2017) 10 SCALE 321
29
community was
Sunday, but the Court have said in the factual
matrix of the said case that the Institution was a
minority institution and a major festival for the
said
scheduled on 12th
December, 2016 and the day previous thereto i.e.
11th December, 2016, was a Sunday and the said
facts are not wholly irrelevant. The said analysis
cannot be regarded as the construction of the
clause.
Having said that, we shall proceed to
analyze what the clause precisely conveys. On a
careful reading of the same, it is quite clear and
unambiguous that the obligation of the MCI is to
ensure that inspections are not to be carried out
at least 2 days before and 2 days after an
important religious and festival holidays declared
by the Central/State Government. In the clause,
the words which gain significance are “important
On 12th
religious and
December, 2016, it was Milad-un-Nabi and it is
the day of festival. The inspection was done on
9th December, 2016, which was a Friday. The
amended clause of the notification state only
covers 2 days before the festival declared as a
holiday by the Central/State Government and 2
days thereafter. In the case at hand, the
inspection team had gone for inspection on 9th
December, 2016, and they were deprived to carry
out the inspection. It was not covered by the
concept of two days of moratorium.”
festival holidays”.
26. At this juncture, it is pertinent to understand and
appreciate the ratio of <cite>Kanachur Islamic Education Trust
(R) (supra)</cite> because it is being highlighted in certain cases
that there is no acceptability or permissibility to have a
30
second inspection in quite succession. The paragraph that
has been highlighted from <cite>Kanachur Islamic Education
Trust (R) (supra)</cite> reads thus:-
“That against the inspections conducted by the
MCI, the petitioner’s college/institution had
submitted representations on 15.12.2016 and
16.1.2017 before the Central Government is a
matter of record. That the report qua the
inspection conducted on 17-18.11.2016 did not
disclose any substantial deficiency warranting
the Hearing
disapproval as observed by
Committee
is
unambiguously clear that the inspection of the
petitioner’s college undertaken on 17-18.11.2016
did not divulge any substantial deficiency
justifying disapproval of the LOP to it. The
reason
inspection on 9-
10.12.2016, i.e. within three weeks of the first
exercise and that too
in absence of any
noticeable substantial deficiency, is convincingly
not forthcoming.”
the surprise
is also not
for
in dispute.
It
27. On a careful reading of the said paragraph, it is limpid
that is not the ratio of the decision that there cannot be a
surprise inspection and every time reasons have to be
recorded. Be it noted, the Court has also clarified the
position at the end of the verdict stating thus:-
31
“We make it clear that the decision rendered and
the directions issued are in the singular facts
and circumstances of the case.”
28.
It is well settled in law that the ratio of a decision has
to be understood regard being had to its context and factual
exposition. The ratiocination in an authority is basically
founded on the interpretation of the statutory provision. If
it is based on a particular fact or the decision of the Court
is guided by specific nature of the case, it will not amount
to the ratio of the judgment. <cite>Lord Halsbury in Quinn v.
Leathem10</cite> has ruled:-
“… every judgment must be read as applicable to
the particular facts proved, or assumed to be
proved, since the generality of the expressions
which may be found there are not intended to be
expositions of the whole law, but are governed
and qualified by the particular facts of the case in
which such expressions are to be found.”
29. A three-Judge Bench in <cite>Union of India and others v.
Dhanwanti Devi and others 11</cite> , while adverting to the
concept of precedent under Article 141 of the Constitution,
has opined thus:-
“Before adverting to and considering whether
solatium and interest would be payable under the
101901 AC 495 : (1900-03) ALL ER Rep 1 (HL)
11 (1996) 6 SCC 44
32
Act, at the outset, we will dispose of the objection
raised by Shri Vaidyanathan that Hari Krishan
Khosla case12 is not a binding precedent nor does
it operate as ratio decidendi to be followed as a
precedent and is per se per incuriam. It is not
everything said by a Judge while giving judgment
that constitutes a precedent. The only thing in a
Judge’s decision binding a party is the principle
upon which the case is decided and for this
reason it is important to analyse a decision and
isolate from it the ratio decidendi. According to
the well-settled theory of precedents, every
decision contains three basic postulates—(i)
findings of material facts, direct and inferential.
An inferential finding of facts is the inference
which the Judge draws from the direct, or
perceptible facts; (ii) statements of the principles
of law applicable to the legal problems disclosed
by the facts; and (iii) judgment based on the
combined effect of the above. A decision is only
an authority for what it actually decides. What is
of the essence in a decision is its ratio and not
every observation
therein nor what
logically follows from the various observations
made in the judgment. Every judgment must be
read as applicable to the particular facts proved,
or assumed to be proved, since the generality of
the expressions which may be found there is not
intended to be exposition of the whole law, but
governed and qualified by the particular facts of
the case in which such expressions are to be
found. It would, therefore, be not profitable to
extract a sentence here and there from the
judgment and to build upon it because the
essence of the decision is its ratio and not every
observation found therein. The enunciation of the
reason or principle on which a question before a
court has been decided is alone binding as a
precedent. The concrete decision alone is binding
between the parties to it, but it is the abstract
found
12 (1993) Supp (2) 149
33
ratio decidendi, ascertained on a consideration of
the judgment in relation to the subject-matter of
the decision, which alone has the force of law and
which, when it is clear what it was, is binding. It
is only the principle laid down in the judgment
that is binding law under Article 141 of the
Constitution. A deliberate
judicial decision
arrived at after hearing an argument on a
question which arises in the case or is put in
issue may constitute a precedent, no matter for
what reason, and
long
recognition may mature into rule of stare decisis.
It is the rule deductible from the application of
law to the facts and circumstances of the case
which constitutes its ratio decidendi.
the precedent by
Therefore,
in order to understand and
appreciate the binding force of a decision it is
always necessary to see what were the facts in
the case in which the decision was given and
what was the point which had to be decided. No
judgment can be read as if it is a statute. A word
or a clause or a sentence in the judgment cannot
be regarded as a full exposition of law. Law
cannot afford to be static and therefore, Judges
are to employ an intelligent technique in the use
of precedents.”
30.
In <cite>Bussa Overseas and Properties Private Limited
and Another vs. Union of India and Another 13</cite>, while
dealing with the precedential value of the decision in
<cite>Thungabhadra Industries Limited vs. State of A.P. 14</cite>,
the two-Judge Bench held:-
13 (2016) 4 SCC 696
14 AIR 1964 SC1372
34
“The aforesaid decision
in Thungabhadra
Industries Ltd. case when properly appreciated
clearly reveals that it pertains to the stage when
objection is to be taken. It does not lay down that
a special leave petition against a review petition is
maintainable or not. The focus on the stage of
taking objection is fact-centric but not principle-
oriented. To elaborate, the said decision does not
lay down as a principle that the Court is bereft of
power
If we
understand the view expressed therein, it can be
said that the Court has been guided by the
concept of propriety.”
to hear on maintainability.
[Emphasis supplied]
31.
In <cite>Royal Medical Trust (supra)</cite>, this Court has clearly
held that there can be surprise inspection as that ensures
that the required facilities and infrastructure are always in
place and not borrowed or put in temporarily.
32. In <cite>IQ City Foundation and Another (supra)</cite>, after
referring to <cite>Royal Medical Trust (supra)</cite>, the Court has
held:-
“Therefore, the emphasis is on the complaint
institutions that can really educate doctors by
imparting quality education so that they will have
the inherent as well as cultivated attributes of
excellence.”
33. Thus, in our considered opinion what has been stated
in <cite>Royal Medical Trust (supra)</cite> and <cite>IQ City Foundation
(supra)</cite> has the precedential value under Article 141 of the
35
Constitution. We have no hesitation in saying that the
pronouncement in <cite>Kanachur Islamic Education Trust (R)
(supra)</cite> has to rest on its own facts.
34. Having said that, it is necessary to scrutinise the
explanation offered by the Principal of the petitioner-
institution. The Principal has justified the leave availed of
by the faculty and the residents during the period of
inspection of the assessors of the Medical Council of India.
We think it appropriate to reproduce the said explanation:-
leave on various reasons during
“We would like to bring to your kind notice that
few faculty and residents were on leave and half
day
the
assessment conducted by MCI in Kerala Medical
College, Palakkad on 28-12-2016. The details are
mentioned below for your kind perusal.
1. Dr. Gurusiddana Gowda, Associate Professor
of Radio Diagnosis.
His father had expired two weeks back and he
had gone to perform the rituals of his father as
per Hindu religious custom. He is the elder son
in the family. Form 16, salary statement from
bank and attendance register copy is enclosed
herewith.
2. Dr. R. Balamurugan Ramdas, Associate
Professor of Bio Chemistry.
36
He had gone to his native Pondichery during
Christmas Holidays taking leave till 01-01-2017
because of personal reasons.
Form 16, salary statement from bank and
attendance register copy is enclosed herewith-
leave submission form.
3. Dr. MS Ramaiyah, Associate Professor of
Medicine.
He was on half day leave on 28-12-2016 and
reported in the afternoon. He was presented
before the inspectors but not accepted as he was
not present at the time of taking attendance at
11 a.m.
Form 16, salary statement from the bank and
attendance register copy is enclosed herewith.
4. Dr. N. Natarajan, Associate Professor of
Medicine.
He was on half day leave on 28-12-2016 and
reported in the afternoon. He was presented
before the inspectors but not accepted as he was
not present at the time of taking attendance at
11 a.m.
Form 16, salary statement from the bank and
attendance register copy is enclosed herewith.
5. Dr. MS Dhananjaya, Professor of OBG.
His cousin brother had expired and the 12th day
ritual ceremony was on 28-12-2016 and he had
been sanctioned leave. He is present on 29-12-
2016 and presented before the assessors.
Form 16, salary statement from the bank and
attendance register copy is enclosed herewith.
37
6. Dr. Ravi Chandra, Associate Professor of
Surgery.
He had gone to his native during Christmas
holidays taking leave till 31-12.2016 because of
personal reasons.
Salary statement from bank and attendance
register copy is enclosed herewith.
7. Dr. Asha S Jagtap, Professor of PSM
She had gone to her native during Christmas
holidays taking leave till 31-12-2016 because of
personal reasons.
Form 16, salary statement from the bank and
attendance register copy is enclosed herewith.
8. Dr. Girist A, Senior Resident in Medicine.
He was on half day leave on 28-12-2016 and
reported in the afternoon. He was presented
before the inspectors but not accepted as he was
not present at the time of taking attendance at
11 a.m.
Salary statement from the bank and attendance
register copy is enclosed herewith.
9. Dr. Basavaraj SK, Senior resident of Medicine.
He had gone to his native during Christmas
holidays taking leave till 31-12-2016 because of
personal reasons.
Salary statement from bank and attendance
register copy is enclosed herewith.
10. Dr. B. Ravindra Shivaji, Senior Resident of
Radio Diagnosis.
38
He had gone to his native during Christmas
holidays taking leave till 31-12-2016 because of
personal reasons.
Salary statement from bank and attendance
register copy is enclosed herewith.
11. Dr. Harithakumari Landa, Senior Resident of
pulmonary medicine.
She had gone to his native during Christmas
holidays taking leave till 31-12-2016 because of
personal reasons.
Salary statement from the bank and attendance
register copy is enclosed herewith.”
35.
It
is submitted by the
learned senior counsel
appearing for the petitioners that the Medical Council of
India as well as the Central Government should have
accepted the leave position and, in any case, it was within
the permissible limit.
36.
In this regard, Mr. Vikas Singh learned senior counsel
for the MCI has drawn our attention to the extract of the
Minutes of the Executive Committee dated 21st August,
2014. It reads as follows:-
“Regarding specifying the type of acceptable leave
during inspection of medical colleges.
39
Read: the matter with regard to regarding
specifying the type of acceptable leave during
inspection of medical colleges.
The Executive Committee of
the Council
considered the report of the Sub Committee dt.
17.04.2014 as constituted by the Executive
Committee at its meeting held on 14th March,
2014 and decided to accept the report with the
following amendments:-
(1) The faculty who is on leave due to the
following reasons would be accepted;
For
attending
the
(a)
conferences
International/National Associations or Societies;
International/National
by
respective
organized
(b) For attending any work assigned by Medical
Council of India, either at headquarters or for
assessment of a medical college;
(c) For conducting examination of the concerned
subject in a medical college in Central/State
University;
(d) For attending Courts;
Provided that appropriate documents certifying
the same which are countersigned by the dean
are furnished.
(2) The faculty who is on sanctioned Maternity
leave would be accepted provided the appropriate
leave sanction order issued by the sanctioning
authority and countersigned by the Dean is
furnished with all necessary certificates.”
40
37. The said resolution is strenuously contested by the
learned senior counsel for the petitioners. It is urged with
immense vehemence that the resolution smacks of gross
arbitrariness and reveals a sense of hidden base for use of
power of an absolute tyrant and a despot. Mr. Singh
explaining the same would submit that a hospital to remain
compliant has to have the requisite number of doctors and
staff, and to run a medical college constant compliance is
imperative. According to him, when a college is granted
LOP for the first year, 5% margin with regard to absence is
granted and that is why certain categories of leave have not
been mentioned in the resolution, but that does not mean
that the college can grant leave to the doctors at its whim
and fancy. Be that as it may, the absence of faculty
members which has been taken note of by the Medical
Council of India and accepted by the Central Government
cannot be allowed to pale into total insignificance. In this
regard, a submission advanced by the learned senior
counsel for the petitioners requires to be noted. It is urged
by them that the engagement of the faculty members are to
41
be believed as they are paid their salaries by the petitioners
and it is shown in the necessary Income Tax form.
38.
It needs no special emphasis to state that the said
submission cannot be the guiding factor for our analysis.
The issue is the deficiency of the doctors and the absence of
the doctors during the period of inspection. We have
already held that the period in which the assessors
inspected cannot be said to be a period covered under the
Regulations. That apart, as is noticeable, the Hearing
Committee which has been constituted on the basis of the
decision
in <cite>Amma Chandravati Educational and
Charitable Trust (supra)</cite>, has also held that the college is
deficient in bed occupancy at the conditional LOP stage
other facilities have to be specifically verified and in the
absence of satisfaction, the LOP ought not to be granted.
39.
In the course of hearing, Mr. Rohatgi, learned senior
counsel for the petitioners has placed heavy reliance on
<cite>Krishna Mohan Medical College and Hospital & Anr v.
Union of India & Anr 15 (Writ Petition (Civil) No. 448 of
2017 decided on 01.09.2017)</cite> and <cite>Dr. Jagat Narain
15 2017 SCC Online SC 1032
42
Subharti Charitable Trust & Anr v. Union of India &
Ors16</cite>.
40.
In <cite>Krishna Mohan Medical College (supra)</cite>, this
Court has held:-
therewith
for
in accordance
“… as the Act and Regulations framed thereunder
have been envisioned to attain the highest
standards of medical education, we direct the
Central Government/MCI to cause a
fresh
inspection of the petitioner college/institution to
be made
the
academic year 2018-19 and lay the report in
respect thereof before this Court within a period
of eight weeks herefrom. A copy of the report,
needless to state, would be furnished to the
petitioner college/institution at the earliest so as
to enable it to avail its remedies, if so advised,
under the Act and the Regulations. The Central
Government/MCI would not encash the bank
petitioner
guarantee
college/institution. For
the
impugned order dated 10.8.2017 stands modified
to this extent only. The direction for a writ, order
or direction to the respondents to permit the
petitioner college/institution to admit students
for the academic year 2017-18, in the facts of the
case, is declined.”
furnished
the
present,
by
the
41.
In <cite>Dr. Jagat Narain Subharti Charitable Trust
(supra)</cite>, the Court, while granting the benefit for academic
session 2017-2018, opined:-
“Thus, there has been substantial compliance of
the petitioners.
the said
requirement by
16 (2017) 10 SCALE 308
43
Assuming that the notification dated 16.10.2015
applied even to the proposal of the petitioners,
suffice it to observe that failure to furnish
information in the prescribed Form-5 cannot be
held against the petitioners. In any case, that is
not a deficiency relating to infrastructure or
academic matters as such, which may require a
different approach.”
42. The aforesaid decisions speak for themselves and,
therefore, reliance on the same by the petitioners is of no
avail.
43. Dr. Rajiv Dhawan would submit that this Court should
not exercise appellate jurisdiction which is fundamentally
called an error jurisdiction or rectification of errors. We are
absolutely conscious of the appellate jurisdiction and the
jurisdiction this Court
is required to exercise while
determining the controversy in exercise of power of judicial
review under Article 32 of the Constitution. The principle of
judicial review by the constitutional courts have been
lucidly stated in many an authority of this Court. In <cite>Tata
Cellular v. Union of India17</cite>, dealing with the concept of
Judicial Review, the Court held:-
17 (1994) 6 SCC 651
44
“<icite>Lord Scarman in Nottinghamshire County Council
v. Secretary of State
the Environment </icite>
proclaimed:
for
‘Judicial review’ is a great weapon in
the hands of the judges; but the judges
must observe the constitutional limits set
by our parliamentary system upon the
exercise of this beneficial power.”
Commenting upon this Michael Supperstone and
James Goudie in their work Judicial Review
(1992 Edn.) at p. 16 say:
it
has
“If anyone were prompted to dismiss this
sage warning as a mere obiter dictum
from the most radical member of the
higher judiciary of recent times, and
therefore to be treated as an idiosyncratic
aberration,
the
endorsement of the Law Lords generally.
The words of Lord Scarman were echoed
by Lord Bridge of Harwich, speaking on
behalf of the Board when reversing an
interventionist decision of
the New
Zealand Court of Appeal in <icite>Butcher v.
Petrocorp Exploration Ltd. 18-3-1991</icite>.”
received
Observance of judicial restraint is currently the
mood in England. The judicial power of review is
exercised to rein in any unbridled executive
functioning. The restraint has two contemporary
manifestations. One is the ambit of judicial
intervention; the other covers the scope of the
court’s ability to quash an administrative decision
on its merits. These restraints bear the hallmarks
of judicial control over administrative action.
Judicial review is concerned with reviewing not
the merits of the decision in support of which the
application for judicial review is made, but the
decision-making process itself.”
45
44. After so stating, reference was made to the law
enunciated in Chief Constable of the <icite>North Wales Police
v. Evans18</icite> wherein, it has been ruled:-
“Judicial review, as the words imply, is not an
appeal from a decision, but a review of the
manner in which the decision was made.
*
*
*
Judicial review is concerned, not with the
decision, but with the decision-making process.
Unless that restriction on the power of the court
is observed, the court will in my view, under the
guise of preventing the abuse of power, be itself
guilty of usurping power.”
45.
In the said case, the Court also referred to R. v. Panel
on Take-overs and Mergers, ex. P. Datafin plc19 wherein
Sir John Donaldson, M.R. commented:-
“An application for judicial review is not an
appeal.”
46. The three Judge Bench further held:-
“The duty of the court is to confine itself to the
question of legality. Its concern should be:
1. Whether
authority exceeded its powers?
2. Committed an error of law,
a
decision-making
18 (1982) 3 All ER 141
19 (1987) 1 All ER 564
46
3. committed a breach of the rules of
natural justice,
4.
reached a decision which no
reasonable tribunal would have reached
or,
5. abused its powers.”
47. The Court further opined that in the process of judicial
review, it is only concerned with the manner in which the
decisions have been taken. The extent of the duty is to act
fairly. It will vary from case to case. Explicating further, it
ruled:-
“Shortly put, the grounds upon which an
administrative action is subject to control by
judicial review can be classified as under:
Illegality
: This means
(i)
the
decision-maker must
understand
correctly the law that regulates his
decision-making power and must give
effect to it.
(ii)
unreasonableness.
(iii) Procedural impropriety.
Irrationality, namely, Wednesbury
The above are only the broad grounds but it does
not rule out addition of further grounds in course
of time. As a matter of fact, in R. v. Secretary of
State for the Home Department, ex Brind, Lord
Diplock refers specifically to one development,
namely, the possible recognition of the principle
of proportionality. In all these cases the test to be
adopted is that the court should, “consider
whether something has gone wrong of a nature
and degree which requires its intervention”.
47
48. Thereafter, the Court referred to the authorities in <icite>R.
v. Askew 20 and Council of Civil Service Unions v.
Minister for Civil Service21</icite> and further expressed:-
“At this stage, The Supreme Court Practice, 1993,
Vol. 1, pp. 849-850, may be quoted:
“4. Wednesbury principle.— A decision of
a public authority will be liable to be
quashed or otherwise dealt with by an
appropriate order
judicial review
proceedings where the court concludes
that
that no
authority properly directing itself on the
relevant law and acting reasonably could
have reached it. (Associated Provincial
Picture Houses Ltd. v. Wednesbury
Corpn., per Lord Greene, M.R.)”
the decision
in
is such
We may hasten to add, though the decision was
rendered in the context of justification of grant of contract
but the principles set out as regards the judicial review are
of extreme significance.
49. Discussing at length, the principle of judicial review in
many a decision, the two Judge Bench in <cite>Reliance
Telecom Ltd. & Another v. Union of India & Another22</cite>,
has held:-
20 (1768) 4 Burr 2186 : 98 ER 139
21 (1985) 1 AC 374 : (1984) 3 All ER 935 : (1984) 3 WLR 1174
22 (2017) 4 SCC 269
48
“As we find, the decision taken by the Central
Government is based upon certain norms and
parameters. Though criticism has been advanced
that it is perverse and irrational, yet we are
disposed to think that it is a policy decision which
subserves the consumers’ interest. It is extremely
difficult to say that the decision to conduct the
auction in such a manner can be considered to be
mala fide or based on extraneous considerations.”
50. Thus analysed, it is evincible that the exercise of
power of judicial review and the extent to which it has to be
done will vary from case to case. It is necessary to state
with emphasis that it has its own complexity and would
depend upon the factual projection. The broad principles
have been laid down in <cite>Tata Cellular (supra)</cite> and other
decisions make it absolutely clear that judicial review, by no
stretch of imagination, can be equated with the power of
appeal, for while exercising the power under Article 226 or
32 of the Constitution, the constitutional courts do not
exercise such power. The process of adjudication on merit
by re-appreciation of the materials brought on record which
is the duty of the appellate court is not permissible.
51. The duty of the Court in exercise of the power of
judicial review to zealously guard the human rights,
fundamental rights and the citizens’ right of life and liberty
49
as also many non-statutory powers of governmental bodies
as regards their control over property and assets of various
kinds. (See : <cite>Union of India and Anr. v S.B. Vohra23</cite>)
52. What Dr. Dhawan submits basically is that as the
order passed by the Central Government after the order
passed by the High Court of Kerala does not really reflect
any reason, this Court should axe the same treating it as
arbitrary and grant the LOP and that would be within the
power of judicial review. The order passed by the Central
Government has to be appreciated in its entirety. We repeat
at
the cost of repetition
that neither
the Central
Government nor the Hearing Committee is expected to pass
a judgment as a Judge is expected to do. The order must
reflect application of mind and should indicate reasons. We
may reiterate that the order dated 31st May, 2017, was
bereft of reason, but the order impugned, that is the order
dated 14th August, 2017, cannot be said to be sans reason.
Learned senior counsel would contend with all the vigour at
his command that it is not a reasoned one and for the same
23 (2004) 2 SCC 150
50
our attention has been drawn to the penultimate paragraph
of the order.
53. We are of the considered opinion that the order of the
present nature has to be appreciated in entirety and when
we peruse the entire order, we find that substantial reasons
have been ascribed and, therefore, we are compelled to repel
the submissions so assiduously and astutely advanced by
Dr. Dhawan.
54. Keeping in view the facts and circumstances of the
case, we sum up our conclusions and directions, thus:-
(a) The petitioners are not entitled to Letter Of Permission
(LOP) for the academic session 2017-2018. We direct that
the order passed in the present writ petition shall be
applicable hereafter for the academic session 2017-2018
since the cut off date for admissions to MBBS course for
academic session 2017-2018 is over and the academic
session has commenced. No petition shall be entertained
from any institution/college/society/trust or any party for
grant of LOP for 2017-2018. We say so as the controversy
for grant of LOP for the academic year 2017-2018 should
51
come to an end and cannot become an event that defeats
time. The students who are continuing their studies on the
basis of LOP granted for the academic year 2016-2017
should be allowed to continue their studies in the college
and they shall be permitted to continue till completion of
the course.
(b) The applications submitted for 2017-2018 shall be
treated as applications for 2018-2019 and the petitioners
shall keep the bank guarantee deposited with the Medical
Council of India alive and the MCI shall not encash the
same.
(c) The Medical Council of India shall conduct a fresh
inspection as per the Regulations within a period of two
months. It shall apprise the petitioner-institution with
regard to the deficiencies and afford an opportunity to
comply with the same and, thereafter, proceed to act as
contemplated under the Act.
(d) The inspection shall be carried out for the purpose of
grant of LOP for the academic session 2018-2019.
52
(e) After
the Medical Council of
India sends
its
recommendation to the Central Government, it shall take
the final decision as per law after affording an opportunity
of hearing to the petitioners. Needless to say, it shall take
the assistance of the Hearing Committee as constituted by
the Constitution Bench decision in <cite>Amma Chandravati
Educational and Charitable Trust (supra)</cite> or other
directions given in the said decision.
55. The writ petition is, accordingly, disposed of. There
shall be no order as to costs.
New Delhi,
September 12 , 2017. |
2.
This appeal is filed against the final judgment
and order dated 09.03.2015 passed by the Delhi
High Court in Execution Petition No.337 of 2014
with EA Nos.69798 of 2014 and EA Nos.199200 of
2015 whereby the High Court has dismissed the
Execution Petition and the accompanying
applications filed by appellant STC herein on the
ground of lack of jurisdiction.
3.
In order to appreciate the controversy involved
in this appeal, it is necessary to set out the relevant
facts hereinbelow.
4.
On 04.04.2005, a tripartite agreement was
entered into between the appellant i.e. State Trading
Corporation a Governmentowned Corporation
(hereinafter referred to as “STC”), respondent No.1
M/s Global Steel Holding Ltd. (hereinafter referred
to as “GSHL”), incorporated in the Isle of Man
Channel Islands, and respondent No. 2 M/s
Global Steel Philippines Inc., incorporated in the
2
Philippines (hereinafter referred to as “GSPI”).
Respondent No. 3 is Mr. Pramod Mittal, the
Chairman of the respondent nos. 1 and 2
companies, i.e. GSHL and GSPI. The agreement was
for purchase and sale of commodities known as
HR Coils and CR Coils.
5. Mr. Dushyant Dave, learned senior counsel
appeared for the appellant – STC, while the
respondents were represented by Mr. Kapil Sibal,
Senior Advocate along with Mr. Gautam Mittra.
6.
In performance of the agreement, disputes
arose between the parties, particularly with respect
to the nonpayment of outstanding dues to the
appellant STC. The parties, therefore, decided to
settle their disputes by means of conciliation
proceedings with the assistance of two Conciliators.
7.
The parties (STC, GSHL and GSPI) entered into
a Settlement Agreement under Section 73 of the
Arbitration and Conciliation Act, 1996 (for short
3
“the Act”) on 15.11.2011.
In terms of the
Settlement Agreement, the GSHL and GSPI agreed
to pay a total amount of US$ 355,818,019.29 with
interest @ 13.25% p.a. by 11.05.2012 as per para
(D) of the Settlement Agreement to the appellant –
STC, and in the manner set out in detail in clauses
A to K of the Settlement Agreement.
8.
The GSHL and GSPI paid some amounts
pursuant to the Settlement Agreement to STC.
However, they failed to ensure full compliance with
the terms of the Settlement Agreement dated
15.11.2011 and committed default in paying full
payment to appellant STC.
9. The parties therefore entered into a Further
Settlement Agreement dated 17.05.2012 through
the intervention of the Conciliators.
10. As per the Further Settlement Agreement
dated 17.05.2012, GSHL and GSPI agreed to pay a
total amount of US $ 347,737,209.68 inclusive of
4
interest at the rate of 13.50 % p.a. (Rs.1605 crores
in Indian currency) by 10.11.2012 in the manner
set out in detail in clauses (i) and (vi) of the
agreement to the appellant STC. Both the
Settlement Agreement and the Further Settlement
Agreement were executed by respondent No. 3 Mr.
Pramod Mittal as Chairman of GSHL and GSPI,
respectively.
11. As per Clause 12 (iv) of the Further Settlement
Agreement (supra), respondent No. 3 Mr. Pramod
Mittal furnished a Personal Guarantee dated
17.05.2012 wherein he personally guaranteed
payment of the outstanding amount payable by
GSHL and GSPI to the appellant – STC in terms of
the Settlement Agreement dated 15.11.2011
together with interest @ 13.25% p.a. and Further
Settlement Agreement dated 17.05.2012. The said
respondent undertook to pay the outstanding
amount, and stated that the guarantee shall remain
5
valid till the entire outstanding dues of GSHL and
GSPI were fully discharged.
12. Since GSHL and GSPI failed to fulfill their
complete obligations under the Further Settlement
Agreement dated 17.05.2012,
the appellant STC
herein filed an Execution Petition bearing
No.337/2014 in the High Court of Delhi on
30.08.2014 against GSHL (R1), GSPI (R2) and Mr.
Pramod Mittal, Chairman, GSHL(R3) seeking to
execute the Settlement Agreements dated
15.11.2011 and 17.05.2012 against all the
respondents for recovery of the balance outstanding
amounts due and payable.
13. The appellant – STC, the decree holder, filed
Execution Applications Nos. 697/2014 and 199
200/2015. Insofar as application No.697/2014 was
concerned, it was filed under Order 21 Rule 11 (2) of
CPC for attachment and sale of all shares and other
assets of the respondent No.1, with a further prayer
6
for issuance of warrants of arrest against the
Directors and Principal Officers of respondent Nos.1
and 2 till realization of entire dues.
14. The Delhi High Court vide order dated
09.03.2015, dismissed the Execution Petition along
with the accompanying applications on the ground
that admittedly none of the judgmentdebtors is
located within the jurisdiction of the Court. The
Registered Offices of respondent Nos. 1 and 2 were
outside India. The Execution Petition could be
entertained by a Court within whose jurisdiction the
judgmentdebtors, or their properties were situated.
That since none of them is ordinarily resident within
the jurisdiction of the Court, the Execution Petition
could not be entertained, and was dismissed with
liberty to the decreeholder to approach the
appropriate court for enforcement of the Settlement
Award in accordance with law.
7
15. Aggrieved by the Order dated 09.03.2015
passed by the Delhi High Court, the appellant STC
(Decree Holder) filed the present Special Leave
Petition before this Court.
16. During the pendency of the Special Leave
Petition, various Orders were passed from timeto
time directing the respondents to make payments to
STC. The details and break up of payments offered
and then made by the respondents to the appellant
STC on different dates are mentioned in the
Orders dated 19.08.2015, 21.09.2015, 14.12.2015,
05.2.2016, 06.02.2017, 10.04.2017, 31.07.2017,
22.03.2018,
15.05.2018,
13.08.2018,
and
06.09.2018.
17. The Senior Counsel for the respondents, Mr.
Kapil Sibal submitted that an amount of Rs. 810
crores approximately was paid towards the
outstanding liability under the two Settlement
8
Agreements dated 15.11.2011 and 17.05.2012 to
the appellant STC.
18. When the matter was taken up for final
hearing, the Senior Counsel Mr. Kapil Sibal
appearing for the respondents offered to deposit Rs.
800 crores, without prejudice to their right to
prosecute the case, within 4 weeks to show their
bona fides to the Court.
19. Accordingly, on 31.10.2018, the following
Order was passed:
“Mr. Kapil Sibal, learned senior counsel
appearing for respondent No. 2 in SLP (Civil)
No. 14585/2015, during the course of
hearing, states that without prejudice to the
right to prosecute the case, they are
prepared to deposit the sum of Rs.
800,00,00,000/ (Rupees Eight Hundred
Crores) within the period of 4 weeks from
today.
Let them so deposit.
It is made clear that nonpayment of the
amount will be viewed seriously.”
20. That on 29.11.2018, the Senior Counsel for the
respondents brought Demand Drafts for Rs.810
9
crores in favour of the Decree Holder – STC. The
matter was posted for hearing on 04.12.2018.
21. When the matter was taken up for hearing on
04.12.2018, the Demand Drafts for Rs. 800 crores
were directed to be handed over to the Court Master
in a sealed envelope.
22. With the payment of Rs. 800 crores on
04.12.2018, the respondents have till date
deposited an amount of
Rs.1610 crores
approximately in INR in discharge of their liability.
23. As a consequence, the entire liability of the
respondents till
10.11.2012 would stand
discharged.
24. The issue which now only remains for
resolution is the interest payable from 10.11.2012
onwards. The interest payable on the outstanding
amounts was left to be determined by the Court, by
the senior counsel appearing for both the parties.
10
25. At this juncture, we consider it appropriate to
place on record our appreciation of the valuable
assistance provided by both the senior counsel, Mr.
DA Dave and Mr. Kapil Sibal in enabling the parties
to resolve the disputes. The senior counsel
addressed the myriad legal issues which arose in
the case with clarity, persuasiveness, lucidity and
industry.
26. Learned senior counsel for the respondents
submitted that even though the question with
respect to payment of interest pendente lite, and the
rate of interest, was not the subjectmatter of the
original proceeding, it was prayed that this Court
may give a quietus to the long pendency of this
litigation by passing appropriate orders.
27. Both the senior counsel prayed that this
Court, in exercise of its jurisdiction under Articles
136 and 142 of the Constitution, exercise its
extraordinary jurisdiction to determine the amount
11
payable towards interest, and the period within
which it should be paid.
28. Having heard the learned senior counsel for
the parties, and on perusal of the record, we are of
the considered opinion that it is not necessary to
decide the various legal issues arising in the case
which were ably presented by both the learned
senior counsel in support of their case on the
question of jurisdiction of the Delhi High Court in
entertaining and deciding the Execution Petition
filed by the appellant.
29. Since the parties have requested for
termination of these proceedings finally in this
appeal itself, and secondly, the outstanding dues
have already been cleared by the respondents
during the pendency of this appeal though late
leaving only a limited controversy alive regarding
payment of interest, we are of the considered
opinion that there is no legal impediment in
12
deciding the issue of payment of interest and its
rate in this appeal finally to give quietus to this
litigation.
30. Having given our anxious consideration to all
the aforementioned factors, we are of the view that
the respondents are liable to pay Interest on the
principal sum of Rs.1610 crores to the appellant at
rate of 8% per annum payable from 10.11.2012, i.e.
when the entire payment became due.
31. We direct that:
(i)
The Demand Drafts for Rs. 800 crores (Rupees
Eight Hundred Crores) furnished by the
respondents, be handed over to STC Decree
Holder;
(ii)
A lumpsum amount of Rs.600 crores (Rupees
Six Hundred Crores) worked out on the basis
of 8% S.I. per annum (rounded off) be paid by
the respondents to the appellant towards full
and final satisfaction of the amounts due
13
under the Settlement Agreement dated
15.11.2011,
and Further
Settlement
Agreement dated 17.05.2012.
(iii) The amount of Rs.600 crores be paid by the
respondents to STC towards interest in 12
weeks from the date of this Order.
(iv) Upon payment of the said amount by
28.02.2019, all claims arising out of the two
Settlement Agreements (supra), would stand
finally settled, and put a complete closure to
all pending proceedings of any nature
whatsoever, between the parties, wherever filed
and/or pending against each other.
(v)
If, however, the amount of Rs. 600 crores
awarded towards interest is not paid on or
before 28.02.2019, it would amount to
contempt of the Order passed by this Court,
and it would be open to the appellant to take
14
appropriate action against the respondents in
accordance with law for noncompliance.
32.
In light of the foregoing discussion and the
directions, the appeal, along with all pending
applications, stand disposed of.
The contempt
petitions are also disposed of accordingly.
|
This Appeal under Section 62 of the Insolvency and Bankruptcy
Code, 2016 (IBC) is against an interim order dated 18th August 2021
passed by the National Company Law Appellate Tribunal (NCLAT),
Principal Bench at New Delhi in Company Appeal (AT) (Insolvency) No.
598 of 2021, filed by the Appellant, whereby the NCLAT issued notice
of the Appeal, but did not restrain the Interim Resolution Professional
(IRP) from proceeding with Corporate Insolvency Resolution Process
(CIRP) of M/s Seya Industries Limited (hereinafter referred to as
“Corporate Debtor”). The NCLAT, however, restrained the IRP from
1
constituting a Committee of Creditors (CoC) till the next date of
hearing. In the meanwhile, the Appellant and the Respondents were
given the opportunity to settle their disputes before the Adjudicating
Authority (NCLT) in terms of Section 12A of the IBC read with Rule 11 of
the National Company Law Tribunal Rules, 2016 (NCLT Rules). The
appeal was directed to be listed for hearing on 13th September 2021.
The Appellant is an erstwhile Director of Respondent No. 4, that
2.
is the Corporate Debtor. The Corporate Debtor, a company
incorporated under the Companies Act, 1956 has been carrying on
business, inter alia, of manufacture of benzene based Speciality
Chemicals since 1990. It is stated that the Corporate Debtor had
invested about Rs.400 Crores in its existing manufacturing facilities
and had further invested about Rs.900 Crores in an integrated
Greenfield Mega Project for Speciality Chemicals.
3.
According to the Appellant, the Corporate Debtor is the source of
livelihood for about 150 workmen, 40 unskilled workers and 75
employees on its payroll and is engaged with more than 200
Customers/Vendors. It is claimed that the Corporate Debtor has a net
worth of Rs. 972 Crores and fixed assets worth more than Rs.1500
Crores.
4.
In order to expand its chemical manufacturing plant at Tarapur,
Palghar (Maharashtra), the Corporate Debtor raised capital and the
Respondent No.1 - M/s Beacon Trusteeship Limited (hereinafter
referred to as “Beacon Trusteeship”) committed to invest Rs. 100
2
Crores in the said integrated Greenfield Mega Project, in the form of
Rs.20 Crores, towards Compulsorily Convertible Preference Shares
(CCPS) and Rs. 80 Crores, by way of Non-Convertible Debentures
(NCDs). Thereafter the Appellant, the Corporate Debtor and
Respondent-Beacon Trusteeship executed a Debenture Trust Deed
(DTD), inter-alia, recording the terms and conditions of the issue of
said NCDs. The Respondent No. 1 was appointed, the Debenture
Trustee as recorded in the DTD. The DTD laid down the obligations of
the Corporate Debtor towards the NCDs.
5.
On or about 11th March 2019, Beacon Trusteeship released a sum
of Rs.72,00,00,000/- (INR Seventy Two Crores) toward subscriptions of
360 Series A debentures and 360 Series B Debentures ("First tranche
Debentures"). The aforesaid amount was to be invested in capacity
expansion of the company and hence not available as cashflow. The
service of interest for the first tranche had to be met out of the second
tranche of Rs. 8 Crores to be invested by the Beacon Trusteeship which
would have created the cash flow for the same and the remaining
amount was to be invested for Capex investment. Beacon Trusteeship,
however, defaulted in making payment of the second tranche of Rs. 8
Crores.
In addition to the DTD dated 8th March 2019, the parties entered
6.
into a Supplemental Deed dated 14th March 2019 revising certain
terms set out in DTD including the timelines and schedule for the
Interest Payment Dates.
3
7.
On 31st May 2019, the Corporate Debtor sent an email to the
Respondent Nos. 1 to 3, requesting payment of the second tranche of
Rs.8 Crores in terms of the DTD. The Corporate Debtor also issued
notice to the Respondent Nos.1 to 3 to make payment of second
tranche of Rs. 8 Crores.
8.
On 12th September 2019, the Corporate Debtor took recourse to
Arbitration Proceedings against the other Respondents. Beacon
Trusteeship issued a notice to the Corporate Debtor regarding non-
payment of interest amount of Rs.2,18,95,890.41/-. Beacon Trusteeship
also issued an Enforcement Notice accelerating payment of the full
investment amount i.e. Rs.77,94,92,513/- as due on 17th October 2019
on account of non-payment of Rs.2,18,95,890.41/- being interest
coupon amount.
On 18th October 2019, the Respondent Nos. 1 to 3 invoked
9.
Clause 6.1 of the share pledge agreement and transferred 26.60 lakh
shares worth Rs 91.78 Crores into the DEMAT Account(s) of the
Respondents.
10.
Between 18th-20th October 2019, the Corporate Debtor initiated
Arbitration Proceedings before the High Court of Bombay. While the
Arbitral Proceedings, to which the Respondent Nos. 1 to 3 had
themselves agreed and consented to, were pending, they filed an
application under Section 7 of the IBC before the National Company
Law Tribunal (NCLT), Mumbai Bench.
4
11.
On 15th January 2020, the Corporate Debtor filed its statement
of claim seeking an award aggregating to Rs.848,75,30,000/- for losses
and damages suffered by it.
12. On 26th February 2020, the Respondents filed statement of
defence and counter claim seeking an award for payment of its claim
amounting to Rs.73,56,59,238/-.
13. On 24th March 2021, the Arbitrator passed an interim award in
favour of Beacon Trusteeship and other Respondents and directed the
Corporate Debtor to make payment of Rs.72,06,99,244/- along with
interest.
14. On 21st April 2021, being aggrieved by the order of the
Arbitrator, the Appellant and Corporate Debtor preferred an arbitration
petition under Section 34 of the Arbitration and Conciliation Act, 1996
before the High Court of Bombay which is still pending.
The NCLT, Mumbai Bench heard the matter and reserved its
15.
order on 13th May 2021. On 1st July 2021, the Corporate Debtor and
the Respondents Nos. 1 to 3 filed a joint application before the NCLT,
Mumbai Bench requesting to defer the order as the parties were in the
process of arriving at a settlement and sought time till 10th July 2021.
16. On 12th July 2021, the Corporate Debtor and the Respondents
Nos. 1 to 3 again filed a joint application before the NCLT, Mumbai
Bench seeking further time till 23rd July 2021 for arriving at a
settlement. Thereafter, on 26th July 2021, they again sought time for
5
settlement till 12th August 2021.
17. On 3rd August 2021, the NCLT, Mumbai Bench, rejected the
request of the parties for further deferment of orders for arriving at a
settlement and admitted and allowed the application under Section 7
of the IBC preferred by Respondent Nos. 1 to 3 against Corporate
Debtor.
Being aggrieved by the order dated 3rd August 2021 passed by
18.
the NCLT, Mumbai Bench, admitting and allowing application for
initiating CIRP against the Corporate Debtor, the Appellant who is
Director of the Corporate Debtor filed an appeal being Company
Appeal (AT)(Insolvency) No. 598 of 2022 in the NCLAT, New Delhi.
19. On 8th August 2021, the parties had amicably settled their
disputes and entered into a formal settlement, a copy of which is
annexed to the paper book as annexure A-25.
20. On 10th August 2021, the NCLAT considering the settlement
arrived at between the parties, granted interim stay of publication
under Section 13 of the IBC and further gave liberty to the parties to
adopt procedure under Section 12A of IBC.
21. On 12th August 2021, the parties with the consent of the IRP filed
an application under Section 12A of the IBC before the NCLT, Mumbai.
However, the same has not been listed till date.
6
22. On 18th August 2021, the NCLAT stayed the formation of CoC, but
declined to exercise its power under Rule 11 of the NCLAT Rules to take
on record the settlement and dispose of the matter. Further, the
NCLAT permitted the IRP to issue publication and also handover all
assets and proceed with the CIRP even though the matter had been
settled between the parties. Being dissatisfied by the order dated 18th
August 2021 of the NCLAT, the Appellant has preferred the present
Civil Appeal.
Section 12A of the IBC enables the Adjudicating Authority to
23.
allow the withdrawal of an application admitted under Section 7 or
Section 9 or Section 10, on an application made by the applicant with
the approval of 90% voting shares of the Committee of Creditors in
such a manner as may be specified.
Section 12A of the IBC clearly permits withdrawal of an
24.
application under Section 7 of the IBC that has been admitted on an
application made by the applicant. The question of approval of the
Committee of Creditors by the requisite percentage of votes, can only
arise after the Committee of Creditors is constituted. Before the
Committee of Creditors is constituted, there is, in our view, no bar to
withdrawal by the applicant of an application admitted under Section 7
of the IBC.
25.
In exercise of power conferred by Section 469 of the Companies
Act, 2013, the Central Government has made the National Company
Law Tribunal Rules, 2016, hereinafter, referred to as the “NCLT Rules”.
7
Rule 11 of the NCLT Rules reads as :-
“11. Inherent Powers.- Nothing in these rules shall be
deemed to limit or otherwise affect the inherent powers of
the Tribunal to make such orders as may be necessary for
meeting the ends of justice or to prevent abuse of the
process of the Tribunal.”
26.
As stated in its statement of objects and reasons, the object of
the IBC is to consolidate and amend the laws relating to re-
organisation and insolvency resolution of corporate persons,
partnership firms and individuals in a time bound manner for
maximisation of value of assets of such persons, to promote
entrepreneurship, availability of credit and balance of interests of all
stakeholders including alteration in the order of priority of payment of
Government dues and to establish an Insolvency and Bankruptcy
Board of India and matters connected therewith or thereto.
27.
The statement says that an effective legal framework for timely
resolution of insolvency and bankruptcy would support development of
credit markets, encourage entrepreneurship, improve business and
facilitate more investments leading to higher economic growth and
development.
28.
A reading of the statement of objects and reasons with the
statutory Rule 11 of the NCLT Rules enables the NCLT to pass orders for
the ends of justice including order permitting an applicant for CIRP to
withdraw its application and to enable a corporate body to carry on
business with ease, free of any impediment.
8
29.
Considering the investments made by the Corporate Debtor and
considering the number of people dependant on the Corporate Debtor
for their survival and livelihood, there is no reason why the applicant
for the CIRP, should not be allowed to withdraw its application once its
disputes have been settled.
30.
The settlement cannot be stifled before the constitution of the
Committee of Creditors in anticipation of claims against the Corporate
Debtor from third persons. The withdrawal of an application for CIRP
by the applicant would not prevent any other financial creditor from
taking recourse to a proceeding under IBC. The urgency to abide by
the timelines for completion of the resolution process is not a reason to
stifle the settlement.
31. Mr. Mukul Rohtagi, learned Senior Counsel appearing on behalf of
the Appellant drew our attention to an order dated 25th August 2021,
passed by a Bench of coordinate strength comprising <cite>S. Abdul Nazeer
and Krishna Murari, J.J. in Civil Appeal No. 4993 of 2021</cite>, the relevant
part whereof is extracted hereinbelow:
“(3) We have heard learned counsel for the parties. It is not
in dispute that CoC has not been constituted so far. This
Court in <cite>Swiss Ribbons Private Limited and Anr. v. Union of
India and others- (2019) 4 SCC 17</cite> has held that at any
stage, before a Committee of Creditors is constituted, a
party can approach National Company Law Tribunal (NCLT)
directly and that the Tribunal may, in exercise of its inherent
powers under Rule 11 of NCLT Rules, allow or disallow an
application for withdrawal or settlement. It was held thus:
82. It is clear that once the Code gets triggered by
admission of a creditor's petition under Sections 7 to
9, the proceeding that is before the adjudicating
9
authority, being a collective proceeding, is a
proceeding in rem. Being a proceeding in rem, it is
necessary that the body which is to oversee the
resolution process must be consulted before any
individual corporate debtor is allowed to settle its
claim. A question arises as to what is to happen
before a Committee of Creditors is constituted (as per
the timelines that are specified, a Committee of
Creditors can be appointed at any time within 30
days from the date of appointment of the interim
resolution professional). We make it clear that at any
stage where the Committee of Creditors is not yet
constituted, a party can approach NCLT directly,
which Tribunal may, in exercise of its inherent powers
under Rule 11 of NCLT Rules, 2016, allow or disallow
an application for withdrawal or settlement. This will
be decided after hearing all the parties concerned
and considering all relevant factors on the facts of
each case.”
(emphasis supplied)
(4) In the instant case, as noticed earlier, the applicant-
respondent no.1 had made an application before the
NCLT, Mumbai Bench, under Rule 11 of the NCLT Rules for
withdrawal of company petition filed under Section 9 of
the Insolvency and Bankruptcy Code, 2016 (IBC) on the
ground that the matter has been settled between the
Corporate debtor and the applicant-respondent no.1.
(5) Having heard learned counsel for the parties and
having regard to the facts and circumstances of the case,
we are of the view that the applicant-respondent no.1 was
justified in filing the application under Rule 11 of the NCLT
Rules for withdrawal of the company petition on the
ground that the matter has been settled between the
parties.”
32.
The application for settlement under Section 12A of the IBC is
pending before the Adjudicating Authority (NCLT). The NCLAT has
stayed the constitution of the Committee of Creditors. The order
impugned is only an interim order which does not call for interference.
In an appeal under Section 62 of the IBC, there is no question of law
10
which requires determination by this Court. The appeal is, accordingly,
dismissed. The NCLT is directed to take up the settlement application
and decide the same in the light of the observations made above.
|
2.
This appeal questions the correctness of the judgment and
order dated 09.12.2020 passed by the High Court of Rajasthan,
Bench at Jaipur in S.B. Criminal Misc. (Petition) No. 591 of 2020
whereby the High Court dismissed the petition under Section 482
of the Code of Criminal Procedure,19731 for quashing of First
Information Report2 No. 45 of 2005 dated 23.05.2005 registered
1 In short “CrPC”
2 In short “FIR”
1
with Police Station Phulera, District Jaipur under Sections 363
and 366 IPC.
3.
Relevant facts giving rise to this appeal are that one
Prahalad Dan gave a written complaint stating that his minor
daughter had been abducted by the appellant no.1 on
22.05.2005 at about 2.30PM. On the said complaint FIR No. 45
of 2005 was registered at Police Station Phulera, District Jaipur
under Sections 363 and 366 IPC. Investigation was commenced
but the whereabouts of the missing girl could not be traced.
Despite best efforts when the abducted girl and the accused
could not be traced, the investigating officer, after recording the
statements of the complainant and the others, submitted a
chargesheet against the appellant no.1 under the aforesaid
Sections and, further, requested the court to initiate the
proceedings under Section 299 CrPC.
4. The investigating officer also submitted chargesheet against
the father of the appellant, namely, Banna Lal under Sections
363, 366 and 120B IPC. On the basis of the said chargesheet
Banna Lal was put to trial and Regular Criminal Case No. 23 of
2010 was registered. The Additional District and Sessions Judge,
2
Sambhar Lake, District Jaipur vide judgement and order dated
03.09.2011 came to the conclusion that the charges could not be
proved against the accused Banna Lal of being involved in any
manner in the alleged abduction of the daughter of the
complainant, but rather he himself made efforts for searching his
son and the abductee. Accordingly, Banna Lal was acquitted of
all the charges.
5.
In the year 2020, the appellant along with the abductee
Seema Parewa filed a petition under Section 482 CrPC before the
Rajasthan High Court which was registered as S.B. Criminal
Misc. Petition No. 591 of 2020 praying for quashing of the FIR
No. 45 of 2005 and all proceedings arising therefrom. In the said
petition it was stated that the appellant and the abductee
(appellant No. 1 and 2 respectively) were well known to each
other and were into deep love affair, which relationship was not
acceptable to the father of the abductee. Under compelling
circumstances, both of them parted from their families in the
year 2005 and later got married on 25.12.2006. It was, further,
stated that report was submitted under Section 173(2) CrPC and
a request for invoking Section 299 CrPC was made by the
3
investigating officer. The matter is still pending before the Trial
Court against the appellant and coercive steps were being taken.
It was, further, stated that almost 15 years have passed, the
appellant and the abductee were living happily married and had
also been blessed with a boy on 27.02.2014. It is further stated
that the abductee was never victimized, abducted nor kidnapped
but on her own volition left her parental home on account of the
unpleasant and disturbing circumstances created by her father.
It is also stated that the abductee was 17 years of age at the time
when she left her home on her own volition and that the
appellant had no role to play in her parting with her family.
6.
The High Court although records all such facts, appears to
have been swayed with the fact that the abductee was a minor at
the time when she left her home and that the appellant had
evaded the investigation and had been successful in keeping
away from the process of law for several years. The High Court
further proceeded on the assumption that the appellant had
actually kidnapped/abducted the minor daughter of the
complainant.
4
7.
Before this Court, also the abductee has joined the accused
as appellant No.2. Once again similar stand has been taken as
was taken before the High Court. Both the appellants have filed
separate affidavits. Appellant No.2 has specifically stated before
the High Court as also before this Court that she had left her
parental home on her own free volition. The appellants are
married since December 2006 and have been living happily.
They have also been blessed with a son in the year 2014 who
would now be 8 years old. No fruitful purpose would be served
by relegating the matter for conducting the trial as the same
would not be conducive for either of the appellants. It would be a
futile exercise. Kidnapping would necessarily involve enticing or
taking away any minor under eighteen years of age if a female for
the offence under Section 363 IPC. In the present case, the
abductee had clearly stated that she was neither taken away nor
induced and that she had left her home of her own free will.
Section 366 IPC would come into play only where there is a
forceful compulsion of marriage, by kidnapping or by inducing a
woman. This offence also would not be made out once the
appellant no. 2 the abductee has clearly stated that she was in
love with the appellant no.1 and that she left her home on
5
account of the disturbing circumstances at her parental home as
the said relationship was not acceptable to her father and that
she married appellant no.1 on her own free will without any
influence being exercised by appellant no.1.
8.
Considering the overall facts and circumstances of this
case, the ends of justice would be best secured by quashing the
FIR and all consequential proceedings that arise therefrom.
Accordingly, the appeal is allowed. The impugned judgement and
order dated 09.12.2020 of the High Court of Rajasthan is set
aside and the entire proceedings arising out of the FIR No. 45 of
2005 dated 23.05.2005 registered with Police Station Phulera,
District Jaipur under Sections 363 and 366 IPC and all
consequential proceedings are hereby quashed.
|
Permission to file the intervention application is granted .
2.
Application for intervention stands allowed.
1
3. We have heard learned counsel appearing on behalf of the applicant.
4.
By means of this Miscellaneous Application, the applicant seeks a
clarification of the order dated 03.08.2022 passed by this Court in Criminal
Appeal No. 1256 of 2022.
5.
The said criminal appeal was directed against an order dated 12.10.2018
passed by Madras High Court allowing the petition under Section 482 filed by
the respondent therein with a direction to hand over all the case filed and
material to the Central Bureau of Investigation to conduct a preliminary enquiry
against the appellant therein and other co-accused. This Court vide final
judgment and order dated 03.08.2022 allowed the appeal and remitted the
matter back to the High Court to consider the same afresh and pass appropriate
orders in accordance with law.
6.
The applicant by means of this application alleging massive fraud by one
IRB Expressway Private Limited apprehending connivance with unknown
officials of State of Maharashtra /MSRDC/MPEL who, according to applicant,
may have conspired to give relief of reduction in contractual payment to the
2
Government undertaking by more than Rs.70 crores on frivolous concocted
grounds.
7.
Apprehending that the order dated 03.08.2022 passed by this Court may
come in the way of applicant who intends to seek the investigation in the matter
through CBI and in abundant caution the application has been filed seeking
clarification of the judgment dated 03.08.2022
8.
A bare perusal of the averments made in the application seeking
clarification goes to show that on having come to know that M/S. IRB
Expressway Private Ltd. (IRB) which is operating in connivance with the
officials of the State of Maharashtra has got a relief of about Rs.70 crores by
falsely claiming exemption due to covid. The applicant had issued a notice
dated 06.03.2023 to IRB giving them an opportunity to disclose the defense
prior to initiating legal action which was duly replied by the said company
denying the allegations with the explanation and supporting correspondence
with officials exchanged in this regard which the applicant has himself brought
on record annexing the said documents to the application.
9.
Learned counsel for the applicant submits that the order dated 03.08.2022
passed by this Court setting aside directions of the High Court for preliminary
3
enquiry by CBI, may come in his way to seek CBI investigation into the
complaints and allegations and, therefore, the order needs to be clarified.
10. We are really surprised at the manner and the reasons in which this
application has been made. A perusal of Annexure-3, the response of IRB, in
reply to the notice issued by the applicant itself goes to show that reduction in
payment of premium was allowed by the authorities because the Government of
India had ordered complete closure of all Toll Plazas including the one in issue
w.e.f. 26.03.2020 to 19.04.2020 due to covid.
11. Office memorandum dated 13.05.2020 issued by the Government in this
regard is also a part of the documents annexed by the applicant himself in the
application invoking the force majeure clause in the agreement between the
parties. In such peculiar factual matrix of the contractual matter between a
different set of parties, in our opinion, the complaint, if any made by the
applicant has to be considered on its own merits and the judgment and order
dated 03.08.2022 passed by this court, in a totally unconnected matter, between
different parties, having no nexus with alleged complaint which the applicant
proposes to make, will have no bearing on the same and thus the order dated
03.08.2022 does not calls for any clarification or modification at the behest of
the present applicant.
4
12.
Further, in any view of the matter, the applicant has no locus to seek
clarification/modification of an order passed in a totally unconnected matter.
13.
The application is totally misconceived and, accordingly, stands
dismissed.
|
Appeal from an order of the High Court of Patna dated
9th September, 1948, (Agarwala C.J. and Meredith J.) in
M.J.C. No. 5 of 1948. The appeal was originally filed as
Federal Court Appeal No. 71 of 1948 on a certificate granted
by the Patna High Court under cl. 31 of the Letters Patent
of that High Court that the case was a fit one for appeal to
the Federal Court.
H.P. Sinha (S.C. Sinha, with him) for the appellant.
S.K. Mitra (S. L. Chibber, with him) for the respondent.
1950. November 30. The judgment of the Court was deliv-
ered by FAzL ALl J.
800
FAZL ALI J. --This is an appeal from an order of the
High Court of Judicature at Patna dated the 9th September,
1948, declining to call upon the board of Revenue to state a
case under section 21 (3) of the Bihar Sales Tax Act, 1944
(Act VI of 1944), with reference to an assessment made under
that Act.
The Bihar Sales Tax Act was passed in 1944, and section
4 of the Act provides that "every dealer whose gross turn-
over during the year immediately preceding the commencement
of the Act exceeded Rs. 5,000 shall be liable to pay tax
under the Act on sales effected after the date so notified."
It is not disputed that, having regard to the definitions of
dealer, goods and sale under the Act, the appellant, who has
been doing contract work on a fairly extensive scale for the
Central Public Works Department and the East Indian Railway,
comes within the category of a dealer mentioned in section
4. Section 7 of the Act provides that "no dealer shall,
while being liable under section 4 to pay tax under the Act,
carry on business as a dealer unless he has been registered
under the Act and possesses a registration certificate". In
pursuance of this provision, the appellant filed an applica-
tion for registration on the 19th December, 1944, and a
certificate of registration was issued to him on the 21st
December, 1944. On the 8th October, 1945, the Sales Tax
Officer issued a notice to the appellant asking him to
produce his accounts on 10th November, 1945, and to show
cause why in addition to the tax to be finally assessed on
him a penalty not exceeding one and a half times the amount
should not be imposed on him under section 10 (5) of the
Act. Section 10 (5), under which the notice purported to
have been issued, runs thus:--
"If upon information which has come into his posses-
sion, the Commissioner is satisfied that any dealer has been
liable to pay tax under this Act in respect of any period
and has nevertheless wilfully failed to apply for registra-
tion, the Commissioner shall, alter giving the dealer a
reasonable opportunity of being heard, assess, to the best
of his judgment, the amount of tax, if any, due from the
dealer in respect of such
801
period and all subsequent periods and the Commissioner may
direct that the dealer shall pay, ’by way of, penalty, in
addition to the amount so assessed, a sum not exceeding one
and a half times that amount."
The appellant appeared before the Sales Tax Officer in
response to this notice, but obtained several adjournments
till 16th March, 1046, and ultimately failed to appear.
Thereupon, he was assessed by the Sales Tax Officer, accord-
ing to the best of his judgment, and was ordered to pay Rs.
4,526-13-0 as tax and a penalty amounting to one and a half
times the amount assessed, under section 10 (5) of the Act.
The appellant appealed to the Commissioner against the
assessment and the penalty levied upon him, but his appeal
was dismissed on the 6th June, 1946. He then filed a peti-
tion for revision to the Board of Revenue, against the order
of the Commissioner, but it was dismissed on the 28th May,
1947. He thereupon moved the Board of Revenue to refer to
the High Court certain questions of law arising out of is
order of the 28th May, but Mr. N. Baksi, a Member of the
Board, by his order of the 4th December, 1947, rejected the
petition with the following observations :-
"No case for review of my predecessor’s order made out.
No reference necessary."
Section 21 of the Act provides that if the Board of
Revenue refuses to make a reference to the High Court, the
applicant may apply to the High Court against such refusal,
and the High Court, if it is not satisfied that such
refusal was justified, may require the Board of
Revenue to state a case and refer it to the High Court.
The section also provides that "the High Court upon the
hearing of any such case shall decide the question of law
raised thereby, and shall deliver its judgment thereon
containing the grounds on which such decision is founded,
and shall send to the Board of Revenue a copy of such judg-
ment under the seal of the Court ......... and the Board
shall dispose of the case accordingly." In accordance with
this section, the appellant made an application to the High
Court praying that the Board of Revenue may be called upon
to state a case and refer
802
it to the High Court. Dealing with this application, the
High Court pointed out that the Member of the Board had not
been asked to review his predecessor’s order but only to
state a case, and gave the following directions :--
"The ease must, therefore, go back to the Board of
Revenue for a case to be stated or for a proper ,order
rejecting the application to be passed."
The Board then reheard the matter and rejected the
application of the appellant and refused to state a case and
refer it to the High Court. The appellant thereafter made
an application to the High Court for requiring the Board of
Revenue to state a case, but this application was summarily
rejected. He then applied to the High Court for leave to
appeal to the Federal Court, which the High Court granted,
following the decision of a Full Bench of the Lahore High
Court in <cite>Feroze Shah Kaka Khd v. Income-tax Commissioner,
punjab and N.W.F.P., Lahore The High Court</cite> pointed out in
the order granting leave that in the appeal that was taken
to the Privy Council in the Lahore case, an objection had
been raised as to the competency of the appeal, but the
Privy Council, while dismissing the appeal on the merits,
had made the following observation:-"
The objection is a serious one. Admittedly such an appeal
as the present is not authorized by the Income-tax Act
itself. If open at all, it must be justified under clause
"9, Letters Patent of the Lahore High Court, as being an
appeal from a final judgment, decree or order made in the
exercise of original jurisdiction by a Division Bench of the
High Court. And this present appeal was held by the Full
Court to be so justified. Before the Board the question was
not fully argued, and their Lordships accordingly refrain
from expressing any opinion whatever upon it" (2).
The High Court in granting leave to the appellant seems
to have been influenced mainly by the fact that the view of
the Lahore High Court had not been held by the Privy Council
to be wrong.
(1) A.I.R. 1981 Lah. 138. (2) A.I.R. 1933 P. C. 198.
803
At the commencement of the hearing of the appeal in this
Court, a preliminary objection was raised by the learned
counsel for the respondent that this appeals was not compe-
tent, and, on hearing both the parties, we are of the opin-
ion that the objection is wellfounded.
In <cite>Sri Mahanth Harihar Gir v. Commissioner of Income-
tax, Bihar and Orissa</cite> (1) it was held by a special Bench of
the Patna High Court that no appeal lay to His Majesty in
Council under clause 31 of the Letters Patent of the Patna
High Court, from an order of the High Court dismissing an
application under section 66 (3) of the Income-tax Act, (a
provision similar to section 21 of the Act before us) to
direct the Commissioner of Income-tax to state a case. In
that case, the whole law on the subject has been clearly and
exhaustively dealt with, and it has been pointed out that
the view taken by the Full Bench of the Lahore High Court in
the case cited by the appellant was not supported by sever-
al other High Courts and that the Privy Council also, when
the matter came before it, refrained from expressing any
opinion as to its correctness. In our opinion, the view
expressed in the Patna case is correct.
Clause 31 of the Letters Patent of the Patna High Court,
on the strength of which the appellant resists the prelimi-
nary objection raised by the respondent, runs thus :--
"And We do further ordain that any person or persons may
appeal-to Us, Our heirs and successors, in Our or Their
Privy Council, in any matter not being of criminal juris-
diction, from any final judgment, decree, or order of the
said High Court of Judicature at Patna, made on
appeal and from any final judgment, decree on order made in
the exercise of original jurisdiction by Judges of the said
High Court or of any Division Court, from which an appeal
does not lie to the said High Court under the provisions
contained in the 10th clause of these
(1) A.I.R. 1941 Prat. 225.
804
presents: provided, in either case, that the sum or matter
at issue is of the amount or value of not less than ten
thousand rupees, or that such judgment,decree or order
involves, directly or indirectly, some claim, demand or
question to or respecting property amounting to or of the
value of not less than ten thousand rupees; or from any
other final judgment, aecree or order made either on appeal
or otherwise as aforesaid, when the said High Court declares
that the case is a fit one for appeal to Us ...... "
In order to attract the provisions of this clause, it is
necessary to show, firstly, that the order under appeal is a
final order; and secondly, that it was passed in the exer-
cise of the original or appellate jurisdiction of the High
Court. The second requirement clearly follows from the
concluding part of the clause. It seems to us that the order
appealed against in this case, cannot be regarded as a final
order, because it does not of its own force bind or affect
the rights of the parties. All that the High Court is
required to do under section 21 of the Bihar Sales Tax Act
is to decide the question of law raised and send a copy of
its judgment to the Board of Revenue. The Board of Revenue
then has to dispose of the case in the light of the judgment
of the High Court. It is true that the Board’s order is
based on what is stated by the High Court to be the correct
legal position, but the fact remains that the order of the
High Court standing by itself does not affect the rights of
the parties, and the final order in the matter is the order
which is passed ultimately by the Board of Revenue. This
question has been fully dealt with in <cite>Tata Iron and Steel
Company v. Chief Revenue Authority, Bombay(1)</cite>, where Lord
Atkinson pointed out that the order made by the High Court
was merely advisory and quoted the following observations of
Lord Esher in In re Knight and the Tabernacle Permanent
Building Society(2):
"In the case of Ex parte County Council of Kent, where a
statute provided that a case might be stated
(1) [1892] Q.B. 613 at 617.
805
for the decision of the Court it was held that though the
language might prima facie import that there has to be the
equivalent of a judgment or order, yet when the context was
looked at it appeared that the jurisdiction of the Court
appealed to was only consultative, and that there was noth-
ing which amounted to a judgment or order."
It cannot also be held that the order was passed by the
High Court in this case in the exercise of either original
or appellate jurisdiction. It is not contended that the
matter arose in the exercise of the appellate jurisdiction
of the High Court, because there was no appeal before it.
Nor can the matter, properly speaking, be said to have
arisen in the exercise of the original jurisdiction of the
High Court, as was held by the Judges of the Lahore High
Court in the case to which reference was made, because the
proceeding did not commence in the High Court as all origi-
nal suits and proceedings should commence. But the High
Court acquired jurisdiction to deal with the case by virtue
of an express provision of the Bihar Sales Tax Act. The
crux of the matter therefore is that the jurisdiction of the
High Court was only consultative and was neither original
nor appellate.
In this view, the appeal must be dismissed, though on
hearing the parties, it appeared to us that the salestax
authorities including the Commissioner and the Board of
Revenue were in error in imposing a penalty upon the appel-
lant under section 10 15) of the Act which had no applica-
tion to his case, inasmuch as he had been registered as
required by section 7 of the Act.
In the circumstances, while dismissing the appeal, we
make no order as to costs.
Appeal dismissed.
|
This Special Leave Petition filed by the State of Odisha is against
a final judgment and order dated 2nd November, 2020 passed by the
High Court of Orissa at Cuttack dismissing an application for leave to
appeal being CRLLP No.14 of 2020 filed by the Petitioner State, against a
judgment dated 14th January, 2020 passed by the Sessions Judge,
Bhadrak in S.T. Case No.182/392 of 2014, acquitting the Respondents
from charges under Sections 302/201 read with Section 34 of the Indian
Penal Code (IPC).
2.
Learned Counsel appearing on behalf of the Petitioner State
forcefully contended that the High Court committed gross error in
dismissing the application for leave to appeal filed by the Petitioner
1
State on the ground of delay of 41 days, even though, there were
serious charges against the Accused Respondents, including charges of
murder under Section 302 of the IPC.
3.
It is true that the appeal has, by the impugned judgment and
order dated 2nd November 2020, been dismissed on the ground of delay
of only 41 days in filing the CRLLP.
4.
In a criminal case involving the serious offence of murder, the
Courts do not ordinarily dismiss an appeal against a judgment and order
of the Trial Court, whether of conviction or of acquittal, on the sole
ground of some delay. This is to prevent miscarriage of justice.
5.
However, in this case the application of the Petitioner State, for
leave to appeal against the judgment and order of acquittal of the
Respondent Accused, has been rejected on the ground of delay, but
after considering the merits of application for leave to appeal.
6.
We have considered the contentions of the State of Odisha being
the petitioner before us. As per an FIR lodged with the police by one
Gitanjali Tadu, hereinafter referred to as the “Complainant”, her husband
Bijay Kumar Tadu, hereinafter referred to as the “deceased”, had been
working in the Home Guard, Chandabali and deputed at Chandabali
Police Station.
2
7.
According to the Complainant, the deceased used to move
around with the first accused, Banabihari Mohapatra, who had an
electric sales and repairing shop styled “Raja Electricals” at the Ferry
Ghat area near the Chandabali bus stand.
In the FIR, it is alleged that the first accused came to the
8.
residence of the deceased at around 7.30 a.m. on 23rd June, 2014 and
told the Complainant that the deceased had been lying motionless and
still, not responding to calls. Later his younger son Luja alias Smruti
Ranjan Mohapatra being the second Respondent also came and
informed the complainant that the deceased was lying motionless.
On hearing this, the Complainant along with her family members
9.
went to the Ferry Ghat near the Chandabali Bus Stand and found her
husband lying dead inside a room which was locked, with a swollen belly
and a deep burn injury on his right foot which was apparently caused by
electric shock. The body of the deceased appeared black and blood was
oozing out from the mouth and nostril of the deceased.
In the FIR, the complainant has alleged that on 22nd June, 2016,
10.
the deceased had left the house to go to the house of a relative. He had
been wearing a gold chain on his neck and two gold rings on his fingers,
and had been carrying Rs.800 for purchase of a new pair of pants and
shirt and Rs.5,000/- for purchase of articles for a marriage.
3
11.
On making enquiries the complainant learnt that the deceased
had not visited the house of the relative on that day. The complainant
has alleged that the Accused No.1 Banabihari Mohapatra, his son Luja
alias Smruti Ranjan Mohapatra, being the Accused No.2, and other
accomplices committed murder of her husband by applying electric
shock to him after administering some poisonous substances to him.
The Sessions Judge Bhadrak framed charges against the Accused
12.
Respondents Banabihari Mohapatra and Luja @ Smruti Ranjan
Mohapatra alleging that, together they had intentionally caused the
death of the deceased, thereby committing murder and had caused
disappearance of evidence and thus been guilty of offences under
Sections 302/201 read with Section 34 of the IPC.
13. We have carefully gone through the judgment of the Sessions
Judge, Bhadrak, holding that the prosecution had failed to prove the
charges against the Accused Respondents or either of them under
Section 302, or Section 201 read with Section 34 of the IPC, and
acquitting them under Section 235(1) of the Cr.P.C.
14.
The prosecution appears to have examined 9 witnesses. There
are no eye witnesses to the incident. The deceased had apparently died
in a room held by the Accused Respondent No.1. The Accused
Respondents did not abscond. The Accused Respondents themselves
informed the complainant that the deceased was lying still and
4
motionless, not responding to calls.
15.
The post mortem Report of the deceased reveals that the cause
of death was electric shock, suffered by the deceased within 24 hours
from the time of examination. On post mortem examination, the Doctor
found food particles including meat in the stomach of the deceased,
and also detected smell of alcohol. The post mortem doctor opined that
the deceased was intoxicated with alcohol and the death was either
accidental, or homicidal, but not suicidal. There is no conclusive
evidence that the death was homicidal.
The complaint lodged by the complainant is apparently based on
16.
Since the Accused Respondents had informed the
suspicion.
complainant that the deceased was lying still and motionless, not
responding to calls and the body of the deceased was found at the
premises of the Accused Respondent No.1, the complainant has
assumed that the Accused Respondents killed the deceased.
17.
In evidence, the complainant said that the Accused Respondent
No.1, Banabihari, had taken a loan of Rs.20,000/- from the deceased
which he had not repaid even though the deceased had asked him to
repay the amount. Significantly, there is no whisper in the FIR, of any
loan taken by the Accused Respondent No.1 from the deceased. The
reference to the alleged loan appears to be an afterthought, in an
attempt to insinuate a motive for killing the deceased.
5
18.
The mere fact that the deceased was lying dead at a room held
by the the Accused Respondent No.1 and that the Accused
Respondents had informed the complainant that the deceased had been
lying motionless and still and not responding to shouts and calls, does
not establish that the Accused Respondents murdered the deceased. At
the cost of repetition it is reiterated that the post mortem report
suggests that the death could have been accidental.
19. We have perused the evidence of the nine Prosecution Witnesses,
namely, the first Prosecution Witness Dhanjaya Tadu, younger brother of
the deceased, the second Prosecution Witness Gitanjali Tadu, wife of the
deceased, the third Prosecution Witness, Ajay Sahoo, a Shop Keeper at
the locality where dead body of the deceased was found, the fourth
Prosecution Witness, Smt. Bijayalaxmi Tadu, sister of the deceased, the
fifth Prosecution Witness, Bailochan Bej, a Barber by profession who
knew the complainant and the deceased as also the accused persons
who resided in the Chandabali Police Station area, the sixth Prosecution
Witness, Manmohan Sutar, an auto driver, the seventh Prosecution
Witness, Aswini Kumar Nayak, a cultivator residing at Nayahat in the
Chandabali Police Station area of Bhadrak, the 8th Prosecution Witness,
Dr. Bhisma Parida, being the Doctor who conducted the autopsy/ post
mortem examination of the deceased and the ninth Prosecution Witness
Smt. Kumari Behera, Sub Inspector of Police, who was the Investigating
Officer.
6
20.
Of the nine Prosecution Witnesses, three witnesses namely, the
third Prosecution Witness, Ajay Sahoo, the fifth Prosecution Witness,
Bailochan Bej and the seventh Prosecution Witness, Durga Charan Nayak
were declared hostile by the Prosecution.
21. The third Prosecution Witness said that he had only seen the police
shifting the dead body of the deceased and knew nothing more about
the case. Nothing has emerged from his cross-examination by the
Public Prosecutor. In his cross-examination by the defence, he said there
was no electric connection in the house from which the body of the
deceased was brought out. He even said that the Accused Respondents
did not own any shop dealing with electric appliances. No credence can
be given to this witness.
The fifth Prosecution Witness, Bailochan Bej, denied knowledge of
22.
the case. He said that the police had not examined him, nor recorded
any statement made by him. In cross-examination by the prosecution,
he only said that he had a saloon at Chandabali Police Station, Bhadrak.
He categorically denied having made the statements attributed to him
by the police.
The seventh Prosecution Witness, Durga Charan Nayak only said
23.
that he had seen the body of the deceased in the rented place near the
Chandabali bus stand with bleeding injury on his right leg and blood
oozing from his mouth and nostrils. He said he did not know how the
7
deceased suffered the injury or died. Nothing significant has emerged
from his cross-examination by the Public Prosecutor.
The sixth Prosecution Witness, Manmohan Sutar deposed that he
24.
knew the informant, the deceased as also the Accused Respondents. In
a nutshell, he only confirmed that the dead body was in the shop of the
Accused Respondents in Home Guard uniform. Inquest of the body was
conducted in his presence. He identified his signature in the Inquest
Report. He also said he had noticed a bleeding injury in the right foot of
the deceased and blood oozing from the mouth and nostrils.
25.
All the three witnesses related to the deceased, that is the
second Prosecution Witness, being the wife of the deceased, the first
Prosecution Witness, being the younger brother of the deceased and the
fourth Prosecution Witness, being the sister of the deceased have more
or less reiterated what has been stated in the FIR with embellishments.
There are, however, apparent inconsistencies, inaccuracies and inherent
improbabilities in the statements of these witnesses.
These three witnesses deposed that they suspected that the
26.
accused Respondents had killed the deceased as the deceased was
asking the Accused Respondents to repay Rs.20,000/- which the
deceased had advanced to the Accused Respondents by way of loan.
However, as observed above, there is no whisper of the alleged loan in
the FIR lodged by the complainant wife being the second Prosecution
8
Witness.
27.
That apart, the first and fourth Prosecution Witnesses have
admitted in cross-examination that they did not have first hand
knowledge of the loan alleged to be advanced by the deceased to the
Accused Respondent No.1. The first Prosecution Witness said that the
complainant (PW2) had told him that the Accused Respondent No.1 had
not repaid loan of Rs.20,000/- to the deceased. The fourth Respondent
said she had heard about the loan from her deceased brother. Though
she said that the loan was given to the Accused Respondent No.1 at the
time of his daughter’s marriage she could not say how long ago the loan
was given. She could not even tell the approximate date or year of
marriage of the Accused Respondent No.1’s daughter.
From the evidence of the first and the second Prosecution
28.
Witnesses it transpires that the deceased had left his house at around
10.00 a.m. on 22nd June 2014, to go to his Aunt’s house in connection
with his Aunt’s daughter’s marriage. He was wearing a gold chain and
two gold rings and carried Rs.800/- with him for buying a pair of trousers
and shirt and Rs.5000/- for articles for the marriage. Enquiries,
however, revealed that he had not gone to his Aunt’s house. It is,
however, difficult to understand why the deceased should have been
wearing his home guard uniform if he were going to visit his Aunt in
connection with the marriage of his Aunt’s daughter. There is evidence
to show that the deceased was found in his home guard uniform. The
9
relevance of the plan of the deceased to go to his Aunt’s house or his
plan to buy clothes etc. is also not clear. This is in no way linked to the
incident of death of the deceased. Prosecution has failed to show a link
between the proposed visit of the deceased to his Aunt’s house with the
guilt, if any, of the Accused Respondents.
29.
The evidence of the first Prosecution Witness Dhanjaya Tadu,
brother of the deceased, that he had found the motor cycle of the
deceased in front of the shop of the accused persons on the evening of
the 22nd June 2014, is difficult to accept. He said he had asked the
second accused about whereabouts of his brother to which the second
accused had expressed ignorance, but on the next day, the second
Accused Respondent and his father informed them that his brother was
lying senseless. It seems rather unnatural that this witness, who was
the brother of the deceased, should have chosen not to make any
inquiry either in the police station or in the neighbourhood, even after
seeing the motor cycle of the deceased in front of the shop, and after
being told his brother was not in the shop. No attempt was made to look
for the deceased even though he did not return home all night.
30.
The eighth Prosecution Witness, Dr. Bhisma Parida, who had at
the time of death of the deceased been posted as Medical Officer at CHC
Chandabali and had conducted the autopsy/post mortem examination of
the deceased at around 1.00 p.m. on 24th June 2014, deposed that the
deceased died due to electrical injury, suffered within 24 hours of the
10
autopsy. The stomach of the deceased was full of food particles
including meat and there was smell of alcohol. The deceased had been
intoxicated with alcohol. The Medical Officer found electrical wounds in
the leg which were sufficient to cause death. He opined that the injuries
sustained by the deceased might have been due to contact with live
electric wire. He opined that the contact was prolonged. The injuries
were ante mortem. This witness was of the opinion that the death may
have been accidental or homicidal, but not suicidal.
31.
Nothing significant has emerged from the oral evidence of the
ninth Prosecution Witness, Smt. Kumari Behera, the Investigating Officer,
to establish the guilt of the Accused Respondents. She only stated that
the fifth Prosecution Witness had in course of examination stated before
her that the first Accused Respondent and the deceased used one of the
quarters where they regularly took tiffin and they were both present
there on the date of the incident in Court. The fifth Prosecution Witness,
however, denied having made any such statement to the Police and
remained unshaken in cross-examination by the Public Prosecutor. He
only admitted that he had a saloon in the area, but denied knowing the
deceased, the Accused Respondents or the informant. The fifth
Prosecution Witness said that the Police had neither examined him, nor
recorded his statement.
11
32.
In her deposition, the Investigating Officer also said that some
local persons had stated that the first Accused Respondent, Banabhihari
had, out of animosity, killed the deceased by applying electric current.
The oral evidence of the Investigating Officer in this regard is totally
vague and devoid of particulars. The Investigating Officer (PW-9) had
neither named the local persons nor enquired into the source of their
information if any. The local persons have not been examined as
witnesses.
33.
The Prosecution miserably failed to establish the guilt of the
Accused Respondents. The Trial Court rightly acquitted the Accused
Respondents. There is no infirmity in the judgment of the Trial Court,
that calls for interference
As held by this Court in <cite>Sadhu Saran Singh v. State of U.P.
34.
reported in 2016 (4) SCC 357</cite>, an appeal against acquittal has always
been on an altogether different pedestal from an appeal against
conviction. In an appeal against acquittal, where the presumption of
innocence in favour of the accused is reinforced, the appellate court
would interfere with the order of acquittal only when there is perversity.
In this case, it cannot be said that the reasons given by the High Court
to reverse the conviction of the accused are flimsy, untenable or
bordering on perverse appreciation of evidence.
12
35.
Before a case against an accused can be said to be fully
established on circumstantial evidence, the circumstances from which
the conclusion of guilt is to be drawn must fully be established and the
facts so established should be consistent only with the hypothesis of
guilt of the accused. There has to be a chain of evidence so complete,
as not to leave any reasonable doubt for any conclusion consistent with
the innocence of the accused and must show that in all human
probability, the act must have been done by the Accused.
36.
In <cite>Shanti Devi v. State of Rajasthan</cite> reported in (2012) 12
SCC 158, this Court held that the principles for conviction of the
accused based on circumstantial evidence are:
“10.1. The circumstances from which an inference of
guilt is sought to be proved must be cogently or firmly
established.
10.2. The circumstances should be of a definite
tendency unerringly pointing towards the guilt of the
accused.
10.3. The circumstances taken cumulatively must form
a chain so complete that there is no escape from the
conclusion that within all human probability, the crime
was committed by the accused and none else.
10.4. The circumstantial evidence in order to sustain
conviction must be complete and incapable of
explanation of any other hypothesis than that of the
guilt of the accused and such evidence should not only
be consistent with the guilt of the accused but should
be inconsistent with his innocence.”
13
37.
Keeping the above test in mind, we have no iota of doubt that the
Trial Court rightly acquitted the Accused Respondents. There is a
strong possibility that the accused, who was as per the opinion of the
doctor who performed the autopsy, intoxicated with alcohol, might
have accidentally touched a live electrical wire, may be while he was
asleep. The impugned judgment of the High Court dismissing the
appeal on the ground of delay does not call for interference under
Article 136 of the Constitution of India.
38.
It is well settled by a plethora of judicial pronouncement of this
Court that suspicion, however strong cannot take the place of proof. An
accused is presumed to be innocent unless proved guilty beyond
reasonable doubt. This proposition has been reiterated in <cite>Sujit Biswas
v. State of Assam reported in AIR 2013 SC 3817</cite>.
In <cite>Kali Ram v. State of Himachal Pradesh reported in AIR
39.
1973 SC 2773</cite>, this Court observed:-
“Another golden thread which runs through the web of the
administration of justice in criminal cases is that if two views
are possible on the evidence adduced in the case one pointing
to the guilt of the accused and the other to his innocence, the
view which is favourable to the accused should be adopted.
This principle has a special relevance in cases where in the
guilt of the accused is sought is to be established by
circumstantial evidence.”
14
40.
For the reasons discussed above, we find no ground to interfere
with the impugned judgment and order of the High Court under Article
136 of the Constitution of India. Consequently, the Special Leave
Petition is dismissed. Pending application stands disposed of.
|
The question involved in the appeals is with respect to the levy of
education cess, higher education cess, and National Calamity Contingent
Duty (NCCD) on it. The appeals arise out of common judgment. The
High Court has held that duties in question are not part of the exemption
notification. The writ petitions have been dismissed. Hence, the appeals
have been preferred.
3.
The Government of India in order to promote industrial
2
development in the North Eastern Region, announced vide Office
Memorandum dated 24.12.1997, specific fiscal incentives including total
exemption from tax to the new industrial units and substantial
expansion of existing unit in the North Eastern Region for a period of 10
years from the date of commencement of production. Government of
Sikkim vide Notification dated 17.2.2003, notified new industrial policy
whereby all fiscal incentives available to the industries in the North
Eastern Region would be available to the units set up in the State of
Sikkim.
4.
The Central Government issued a Notification dated 9.9.2003,
granting exemption from payment of duty of excise for goods specified in
the notification and cleared from a unit located in the Industrial Growth
Centre or other specified areas within the State of Sikkim. Under the
notification, a manufacturer of specified goods was required to pay excise
duty on the goods cleared from its unit. The manufacturer has to first
utilize the Cenvat Credit for discharging duty liability on final products,
and the remaining amount of duties had to be paid through Personal
Ledger Account (PLA) or Current Account, i.e., in cash. Thus, the
exemption scheme was to discharge the liability on the final product and
then claim or avail the refund or recredit of the duties paid in cash.
3
5.
The Unicorn Industries established a unit in 2006 for
manufacturing “Indian Mouth Freshener” an excisable commodity
covered under Chapter 21 of the First Schedule of Central Excise Tariff
Act, 1985. It was registered under the Central Excise Act. In June 2006,
the appellant had started manufacturing its product.
6.
The appellant has submitted that following excise duties were
recovered under diverse names/nomenclature and rates on Indian
Mouth Freshener manufactured and cleared by the appellant:
a. Basic Excise Duty @ 37.5 % ad valorem;
b. National Calamity Contingent Duty (NCCD) @ 23% ad
Valorem (under Section 136 of the Finance Act, 2001);
c. Additional Excise Duty (Pan Masala & Tobacco Products) @
5.5% ad valorem (under Section 85 of the Finance Act, 2005);
and
d. Education Cess @ 2% ad valorem (under Section 91 of the
Finance Act, 2004) aggregating to 68% ad valorem.
7.
As per Notification No.71/2003CE dated 9.9.2003, the appellant
was entitled to refund of the abovesaid duties of excise. The respondents
4
extended benefits and used to grant refund to the appellant as per the
abovementioned notification. The Excise Authorities used to issue a
certificate of reutilization of excise duty for the particular month. The
appellant used to recredit the amount of excise duty.
8.
The Deputy Commissioner of Central Excise issued a show cause
notice dated 2.1.2007, requiring the appellant to repay the amount of
NCCD for the period July, 2006 to December, 2006, on the ground that
exemption was not permissible under the notification for the units
located in the State of Sikkim. The appellant filed a writ petition before
the High Court for quashing the abovementioned communication dated
2.1.2007. The High Court disposed of the same with liberty to show
cause to the said communication. The appellant filed its reply. On
4.7.2007, the Commissioner, Central Excise issued show cause notice, it
was submitted that grounds phrased in the response were
unsustainable. The appellant was asked to show cause why amount
should not be recovered under Section 11A of the Central Excise Act
along with the interest and penalty.
9.
Notification No.71/2003CE came to be amended on 25.4.2007 by
Notification No.21/2007, excluding Pan Masala falling under Chapter
XXI of the Tariff from the purview of the notification. Thus, the
5
exemption on Pan Masala came to an end vide Notification No.21/2007
dated 25.4.2007, which was challenged by way of separate Writ Petition
No.22 of 2007. The High Court vide judgment and order dated 11.5.2012
allowed the Writ Petition (C) No.22 of 2007 and held that the appellant
was entitled to exemption from payment of excise duty on manufacture
of Pan Masala for ten years from the date of commencement of
commercial production, i.e., 27.6.2006.
10. The appellant submitted that 14 separate claims were filed for
refund of additional excise duty and education cess on the ground these
levies are also duties of excise, for which exemption had been granted for
ten years. The appellant filed Writ Petition (C) No.24 of 2007 before the
High Court of Sikkim at Gangtok for quashing Notification No.71/2003
CE, confining the exemption to "under any of the said Acts” mentioned in
paragraph 1 of the notification. The prayer was made for a declaration
that the exemption notification was applicable to NCCD, additional excise
duty (Pan Masala) and education cess and the Notification No.71/2003
CE was repugnant to the Industrial Policy decision declared by Union of
India (respondent no.1) and State of Sikkim (respondent no.4). The
appellant claimed that excise duty exemption would include all levy in
nature of excise duty, levied and collected on goods manufactured in
6
India.
11. Vide Notifications dated 27.3.2008 and 10.6.2008, the benefit of
Cenvat Credit was withdrawn. The appellant challenged the notification
through Writ Petition (C) No.11 of 2008. The High Court was pleased to
allow the said petition vide judgment and order dated 15.11.2010.
12. Akshay Ispat and Ferro Alloys Private Limited, the manufacturer of
Ferro Silicon, an excisable commodity, has filed other appeal. It had
obtained permanent registration under the Central Excise Rules 2002 on
11.3.2004. The Government of India introduced education cess under
Chapter VI of Section 91 of the Finance Act, 2004. The appellant did not
claim the benefit of the education cess for the period August 2004 to
March 2006. After that, it started taking the recredit of the education
cess w.e.f. 1.4.2006. On 12.9.2006, the Superintendent, Central Excise,
sent a communication directing the appellant to pay the education cess
with interest and penalty for August, 2006. The appellant submitted its
reply. After that, show cause notice dated 31.10.2006, was issued to the
appellant regarding default in payment of education cess for August,
2006 and September, 2006 and proceedings were initiated for
infringement under Section 91(3) of the Finance Act, 2004. The
7
appellant sent a reply; however, on 6.12.2006, another show cause
notice was issued. The appellant after that claimed on 19.12.2006
repayment of education cess for the period August, 2004 to March, 2006.
In March 2007, the Government of India introduced secondary and
higher education cess under Section 126 of the Finance Act, 2007.
Section 128(1) of the Finance Act, 2007 indicated how the said cess was
to be calculated. The respondents demanded by issuance of further
notice education cess and secondary and higher education cess. The
appellant filed a writ application in the High Court. By the impugned
judgment, the same has been dismissed. The High Court dismissed the
Writ Petition (C) No.24 of 2007, and another concerning NCCD and
education cess, secondary and higher education cess and held that they
were not included under exemption Notification No.71/2003CE and the
appellant had illegally availed the benefits of the exemption in respect to
it. Aggrieved by the dismissal of the writ petitions, the appeals have been
preferred.
13. Learned counsel appearing on behalf of the appellant submitted
that NCCD, education cess, and secondary and higher education cess
form part of the excise duty. Hence, the decision of the High Court is
bad in law. Reliance has been placed on <cite>SRD Nutrients Private Limited v.
8
Commissioner of Central Excise, Guwahati, (2018) 1 SCC 105</cite> and the
decision of this Court in <cite>Bajaj Auto Limited v. Union of India & others,
2019 SCC OnLine SC 421</cite>, decided on 27.3.2019. It is submitted that
the education cess was introduced by Sections 91 and 93 of the Finance
Act, 2004 and higher education cess by the Finance Act, 2007 and the
NCCD was imposed under Section 136 of the Finance Act, 2001. The
imposition is in the nature of a duty of excise and in addition to any
other duty of excise chargeable under the Central Excise Act, 1944 (‘the
Act of 1944’). It is further provided that the provisions of the Act of 1944
and Rules made thereunder relating to refunds and exemptions from
duties and imposition of penalty, shall, as far as may be, apply with
respect to the abovementioned duties in question. Reliance has also
been placed on circulars dated 10.8.2004 and 8.4.2011, issued by
Central Board of Excise and Customs, on the subject of education cess
and secondary and higher education cess.
14. Learned counsel appearing on behalf of respondents has submitted
that the decision of the High Court is appropriate and no case for
interference is made out. The benefit of exemption granted, w.e.f.
9.9.2003 from payment of excise duty was withdrawn vide notification
dated 25.4.2007. Tobacco and Tobacco products including cigarettes,
9
cigars and gutkha, were excluded from the benefit of exemption of the
excise duty. The notification dated 25.4.2007 was set aside by the High
Court. The decision of the High Court has been reversed by this Court in
<cite>Union of India v. Unicorn Industries (Civil Appeal No. 7432 of 2019)</cite>,
decided on 19.9.2019. Apart from that, when exemption notifications
were issued, the NCCD, education cess and secondary and higher
education cess were not even imposed, as such, it could not be said that
they were covered under the exemption notification. The duty described
above had been imposed by separate legislation, which was not covered
under the exemption notification. It was an additional duty imposed in
the nature of excise duty. They were not covered under the exemption
notification. As such, the High Court has rightly dismissed the writ
application filed by the appellants. Hence, no case for interference is
made out.
15.
It is not disputed that the Government of India took a policy
decision, Ministry of Industry, Department of Industrial Policy and
Promotion vide Office Memorandum dated 24.12.1997, concerning new
industrial policy and concessions in the NorthEastern region. The
decision was taken for converting the Growth Centres and IIDCs into
total taxfree zones for the next ten years. All industrial activities in
10
these zones would be free from income tax and excise duty for ten years
from the commencement of production.
16. The benefit of the said notification was extended to the State of
Sikkim vide notification dated 17.2.2003. Following benefits were
extended to the new and the existing industrial units:
“i) New industrial units and existing industrial units on their
substantial expansion as defined, set up in Growth Center,
Industrial Infrastructure Development Centers (IIDCs) and other
locations like Industrial Estates, Export Processing Zones, Food
Parks, IT Parks, etc., as notified by the Central Government are
entitled to 100% (hundred percent) income tax and excise duty
exemption for a period of 10 years from the date of commencement
of commercial production. Thrust Sector Industries as mentioned
in AnnexureII are entitled to similar concessions in the entire State
of Sikkim without area restrictions.”
17. The Government decided to exempt 100 per cent income tax and
excise duty for ten years. In accordance with the policy decision the
Notification No.71/2003 was issued on 9.9.2003 by the Central
Government in exercise of powers conferred by Section 5A(1) of the Act of
1944 read with Section 3(3) of the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (‘the Act of 1957’) and Section 3(3) of the
Additional Duties of Excise (Textiles and Textiles Articles) Act, 1978 (‘the
Act of 1978’), exempted goods specified in the First Schedule and the
Second Schedule to the Central Excise Tariff Act, 1985, other than goods
specified in Annexure I in the State of Sikkim. The exemption from
11
payment of so much of excise duty or additional duty of excise, as the
case may be, leviable thereon under any of the said Act. The relevant
portion is extracted hereunder:
“Notification No.71/2003 – Central Excise
In exercise of the powers conferred by subsection (1) of section 5A
of the Central Excise Act, 1944 (1 of 1944), read with subsection (3)
of section 3 of the Additional Duties of Excise (Goods of Special
Importance) Act, 1957 (58 of 1957) and subsection (3) of Section 3
of the Additional Duties of Excise (Textiles and Textiles Articles) Act,
1978 (40 of 1978), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby exempts the goods
specified in the First Schedule and the Second Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986), other than goods
specified in Annexure I appended hereto, and cleared from a unit
located in the Industrial Growth Centre or Industrial Infrastructure
Development Centre or Export Promotion Industrial Park or
Industrial Estate or Industrial Area or Commercial Estate or
Scheme Area, as the case may be, in the State of Sikkim, specified
in Annexure – II appended hereto, from so much of the duty of
excise or additional duty of excise, as the case may be, leviable
thereon under any of the said Acts as is equivalent to the amount of
duty paid by the manufacturer of the said goods, other than the
amount of duty paid by utilization of CENVAT credit under the
CENVAT Credit Rules, 2002.”
(emphasis supplied)
18. Section 136 of the Finance Act, 2001 provides imposition of the
NCCD. Section 136 is extracted hereunder:
“136. National Calamity Contingent Duty.(1) In the case of goods
specified in the Seventh Schedule, being goods manufactured or
produced, there shall be levied and collected for the purposes of the
Union, by surcharge, a duty of excise, to be called the National
Calamity Contingent Duty (hereinafter referred to as the National
Calamity Duty), at the rates specified in the said schedule.
(2) The National Calamity Duty chargeable on the goods specified in
the Seventh Schedule shall be in addition to any other duties of
excise chargeable on such goods under the Central Excise Act, 1944
(1 of 1944) or any other law for the time being in force.
(3) The provisions of the Central Excise Act, 1944 (1 of 1944) and
12
the rules made thereunder, including those relating to refunds and
exemptions from duties and imposition of penalty, shall, as far as
may be, apply in relation to the levy and collection of the National
Calamity Duty leviable under this section in respect of the goods
specified in the Seventh Schedule as they apply in relation to the
levy and collection of the duties of excise on such goods under that
Act or those rules, as the case may be.”
(emphasis supplied)
19. The education cess came to be imposed vide notification dated
10.9.2004 issued under the Finance Act, 2004. Sections 91 and 93 are
extracted hereunder:
“91. Education Cess(1) Without prejudice to the provisions of sub
section (11) of Section 2, there shall be levied and collected, in
accordance with the provisions of this Chapter as surcharge for
purposes of the Union, a cess to be called the Education Cess, to
fulfil the commitment of the Government to provide and finance
universalized quality basic education.
(2) The Central Government may, after due appropriation made by
Parliament by law in this behalf, utilize, such sums of money of the
Education Cess levied under subsection (11) of Section 2 and this
Chapter for the purposes specified in subsection (1), as it may
consider necessary.
***
93. Education Cess on Excisable Goods (1) The Education Cess
levied under Section 81, in the case of goods specified in the First
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), being
goods manufactured or produced, shall be a duty of excise (in this
section referred to as the Education Cess on excisable goods), at the
rate of two per cent, calculated on the aggregate of all duties of
excise (including special duty of excise or any other duty of excise
but excluding Education Cess on excisable goods) which are levied
and collected by the Central Government in the Ministry of Finance
(Department of Revenue) under the provisions of the Central Excise
Act, 1944 (1 of 1944) or under any other law for the time being in
force.
(2) The Education Cess on excisable goods shall be in addition to
any other duties of excise chargeable on such goods under the
Central Excise Act, 1944 (1 of 1944) or any other law for the time
being in force.
(3) The provisions of the Central Excise Act, 1944 (1 of 1944) and
13
the rules made thereunder, including those relating to refunds and
exemptions from duties and imposition of penalty shall, as far as
may be, apply in relation to the levy and collection of the Education
Cess on excisable goods as they apply in relation to the levy and
collection of the duties of excise on such goods under the Central
Excise Act, 1944 or the rules, as the case may be.”
(emphasis supplied)
20. The Central Government introduced the secondary and higher
education cess at the rate of 1 per cent of the total excise duty under
Sections 126 and 128 of the Finance Act, 2007, which are reproduced
hereunder:
"126. (1) Without prejudice to the provisions of subsection (12) of
section 2, there shall be levied and collected, in accordance with the
provisions of this Chapter as surcharge for purposes of the Union, a
cess to be called the Secondary and Higher Education Cess, to fulfil
the commitment of the Government to provide and finance
secondary and higher education.
(2) The Central Government may, after due appropriation made by
Parliament by law in this behalf, utilize, such sums of money of the
Secondary and Higher Education Cess levied under subsection
(12) of section 2 and this Chapter for the purposes specified in
subsection (1) as it may consider necessary.
XXXXXX XXXXXX XXXXXX XXXXXX
128. (1) The Secondary and Higher Education Cess levied under
section 126, in the case of goods specified in the First Schedule to
the Central Excise Tariff Act, 1985, being goods manufactured or
produced, shall be a duty of excise (in this section referred to as the
Secondary and Higher Education Cess on excisable goods), at the
rate of one per cent., calculated on the aggregate of all duties of
excise (including special duty of excise or any other duty of excise
but excluding Education Cess chargeable under section 93 of the
Finance (No. 2) Act, 2004 and Secondary and Higher Education
Cess on excisable goods) which are levied and collected by the
Central Government in the Ministry of Finance (Department of
Revenue), under the provisions of the Central Excise Act, 1944 or
under any other law for the time being in force.
14
(2) The Secondary and Higher Education Cess on excisable goods
shall be in addition to any other duties of excise chargeable on such
goods, under the Central Excise Act, 1944 or any other law for the
time being in force and the Education Cess chargeable under
section 93 of the Finance (No. 2) Act, 1944.
(3) The provisions of the Central Excise Act, 1944 and the rules
made thereunder, including those relating to refunds and
exemptions from duties and imposition of penalty shall, as far as
may be, apply in relation to the levy and collection of the Secondary
and Higher Education Cess on excisable goods as they apply in
relation to the levy and collection of the duties of excise on such
goods under the Central Excise Act, 1944 or the rules made
thereunder, as the case may be."
21.
The appellant challenged the exemption Notification No.71/2003
dated 9.9.2003, before the High Court only to the extent that it limits the
exemption only in relation to basic excise duty under the Excise Act,
additional duties under the Act of 1957 and the additional duties under
the Act of 1978. It is submitted that though various Finance Acts
imposed these duties, they were recoverable as excise duty,
notwithstanding their nomenclature. The notification dated 17.2.2003
indicated that 100 per cent income tax and excise duty exemption for ten
years was granted. The exemption should cover the NCCD, education
cess and the secondary and higher education cess imposed by the
notifications issued under Finance Acts of 2001, 2004, and 2007.
22. The main question arising for consideration is when 100 per cent
exemption had been granted for excise duty for a period of 10 years,
15
whether the exemption notification issued for the State of Sikkim on
9.9.2003 shall be confined to the basic excise duty under the Act of
1944, additional duty under the Act of 1957 and additional duty under
the Act of 1978, which were specifically mentioned in the notification
issued on 9.9.2003, or it also include cess/duty imposed by Finance Acts
of 2001, 2004 and 2007.
23. The submission raised on behalf of appellant is that the duty and
cess in the nature of excise duty cannot be realized, particularly in view
of the provisions in the Finance Acts of 2001, 2004 and 2007 relating to
refund and exemption, which have made applicable, the provisions of the
Act of 1944 and the Rules made thereunder relating to exemption. As
such, in view of the decisions of Division Bench of this Court in <cite>SRD
Nutrients Private Limited (supra)</cite> and <cite>Bajaj Auto Limited (supra)</cite>, the
decision of the High Court deserves to be set aside.
24.
It is not in dispute that when initial exemption notification was
issued in 1997 for the NorthEastern States, which was later on applied
to the State of Sikkim on 9.9.2003. The benefits from payment of excise
duty and additional excise duty were confined to the basic excise duty
payable under the Acts of 1944, 1957 and 1978. There was no reference
16
made to NCCD imposed under the Finance Act, 2001. Apart from that,
when the notification came to be issued, the education cess and
secondary and higher education cess, which came to be imposed by
Finance Acts of 2004 and 2007, were not in vogue.
25. A Division Bench of this Court in <cite>SRD Nutrients Private Limited
(supra)</cite> has considered the Finance Acts of 2004 and 2007, by which
education and secondary and higher education cess were imposed.
Under the Industrial Policy dated 1.4.2007 for the NorthEastern States,
the notification dated 25.4.2007, issued by the Central Government,
came up for consideration before this Court. The said notification and
the industrial policy, have been dealt with in paragraphs 4 and 5 of the
<cite>SRD Nutrients Private Limited (supra)</cite>, which are extracted hereunder:
“4. Industrial Policy dated 142007 for the NorthEastern States,
including the State of Assam, was announced by the Ministry of
Commerce and Industry (Department of Industrial Policy and
Promotion), Government of India to set up a special package for the
NorthEastern States to accelerate industrial development of the
State. As per this package, new industrial units were entitled to
100% excise duty exemption for a period of ten years from the date
of commencement of commercial production. Pursuant to the said
Industrial Policy, the Central Government issued Notification No.
20/2007Ex. Dated 2542007 granting exemption from duties of
excise levied under the Central Excise Act, 1944 (hereinafter
referred to as “the Act”) read with Section 3(3) of the Additional
Duties of Excise (Goods of Special Importance) Act, 1957 and
Section 3(3) of the Additional Duties of Excise (Textiles & Textile
Articles) Act, 1978 to goods cleared from the notified areas within
the NorthEastern States. The said Notification provided that the
assessee would be entitled to refund of duty paid other than the
duty paid by way of utilisation of CENVAT credit under the CENVAT
Credit Rules, 2004.
17
5. Reproduction of the first three paragraphs of this Notification
would be sufficient, which are as follows:
“NOTIFICATION No.: 20/2007CE dated 2542007
NorthEast — Exemption to all goods, except as specified,
cleared from Assam, Tripura, Meghalaya, Mizoram,
Manipur, Nagaland, Arunachal Pradesh or Sikkim from
duty paid other than by utilisation of CENVAT credit.
In exercise of the powers conferred by subsection (1) of
Section 5A of the Central Excise Act, 1944 (1 of 1944), the
Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts the goods specified in
the First Schedule to the Central Excise Tariff Act, 1985 (5 of
1986) other than those mentioned in the Annexure and cleared
from a unit located in the States of Assam or Tripura or
Meghalaya or Mizoram or Manipur or Nagaland or Arunachal
Pradesh or Sikkim, as the case may be, from so much of the
duty of excise leviable thereon under the said Act as is
equivalent to the amount of duty paid by the manufacturer of
goods other than the amount of duty paid by utilisation of
CENVAT credit under the CENVAT Credit Rules, 2004.
2. In cases where all goods produced by a manufacturer are
eligible for exemption under this Notification, the exemption
contained in this Notification shall be available subject to the
condition that, the manufacturer first utilises whole of the
CENVAT credit available to him on the last day of the month
under consideration for payment of duty on goods cleared
during such month and pays only the balance amount in cash.
3. The exemption contained in this notification shall be given
effect to in the following manner, namely—
(a) the manufacturer shall submit a statement of the duty paid
other than the amount of duty paid by utilisation of CENVAT
credit under the CENVAT Credit Rules, 2004, to the Assistant
Commissioner or the Deputy Commissioner of Central Excise,
as the case may be, by the 7th of the next month in which the
duty has been paid other than the amount of duty paid by
utilisation of CENVAT credit under the CENVAT Credit Rules,
2004;
(b) the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, after
such verification, as may be deemed necessary, shall refund
the amount of duty paid other than the amount of duty paid
18
by utilisation of CENVAT credit under the CENVAT Credit
Rules, 2004, during the month under consideration to the
manufacturer by the 15th of the next month:
Provided that in cases, where the exemption contained in this
Notification is not applicable to some of the goods produced by
a manufacturer, such refund shall not exceed the amount of
duty paid less the amount of the CENVAT credit availed of, in
respect of the duty paid on the inputs used in or in relation to
the manufacture of goods cleared under this Notification;
(c) if there is likely to be any delay in the verification, Assistant
Commissioner of Central Excise or the Deputy Commissioner
of Central Excise, as the case may be, shall refund the amount
on provisional basis by the 15th of the next month to the
month under consideration and thereafter may adjust the
amount of refund by such amount as may be necessary in the
subsequent refunds admissible to the manufacturer.”
Circulars have also been referred to in the decision of this Court in
<cite>SRD Nutrients Private Limited (supra)</cite>. The same is extracted hereunder:
“17. It is clear from the arguments of the counsel for the parties that
divergent views are expressed by the CESTAT as well as High Courts.
Even one Bench of the same Tribunal has differed from its earlier
Division Bench decision. In this scenario, it becomes important as to
how the Department has viewed the position regarding education
cess and higher education cess which is payable as a surcharge on
the excise duty, once the excise duty is exempted. Two circulars are
relevant in this behalf, one is Circular dated 1082004 which
clarifies that education cess is part of excise duty. In this circular,
certain clarifications are given by the Ministry of Finance
(Department of Revenue), Government of India and the relevant
portion thereof reads as under:
“Subject: Issues relating to imposition of education cess on
excisable goods and on imported goods, as pointed out by the
trade and the field formations—Reg.
The undersigned is directed to state that subsequent to Budget
2004 announcements, a number of representations/references
have been received from the trade as well as from the field
formations pertaining to imposition of education cess on
excisable goods and on imported goods. The points raised and
the clarifications thereon are as follows:
19
Issue (1): Whether education cess on excisable goods is leviable
on goods manufactured prior to imposition of cess but cleared
after imposition of such cess?
Clarification: Education cess on excisable goods is a new levy.
In similar cases, it has been held by the Supreme Court that if
a levy is not there at the time the goods are manufactured or
produced in India, it cannot be levied at the stage of removal of
the said goods. Thus, education cess is not leviable on
excisable goods manufactured prior to imposition of cess but
cleared after imposition of such cess.
Issue (2): Whether goods that are fully exempted from excise
duty/customs duty or are cleared without payment of excise
duty/customs duty (such as clearance under bond or
fulfilment of certain conditions) would be subjected to cess.
Clarification: The education cess is leviable at the rate of two
per cent of the aggregate of all duties of excise/customs
(excluding certain duties of customs like antidumping duty,
safeguard duty, etc.), levied and collected. If goods are fully
exempted from excise duty or customs duty, are chargeable to
NIL duty or are cleared without payment of duty under
specified procedure such as clearance under bond, there is no
collection of duty. Thus, no education cess would be leviable
on such clearances. In this regard, letter D.O. No.
605/54/2004DBK dated 2172004 issued by Member
(Customs) may also be referred to.”
(emphasis in original)”
In the circular dated 10.8.2004, reference has been made to the
notification issued by Member (Customs), wherein it is stated that there
is no collection of excise duty; hence, no education cess would be leviable
on such clearances.
Circular dated 8.4.2011 had been issued by the Central Board of
Excise and Customs with respect to service tax. In case service tax
stands exempted, education cess and secondary and higher education
cess shall not be levied.
20
26. This Court in <cite>SRD Nutrients Private Limited (supra)</cite> has observed
that the circulars bind department. When there is no excise duty, the
education cess and secondary and higher education cess could not have
been demanded. This Court observed thus:
“21. One aspect that clearly emerges from the reading of these two
circulars is that the Government itself has taken the position that
where whole of excise duty or service tax is exempted, even the
education cess as well as secondary and higher education cess
would not be payable. These circulars are binding on the
Department.
22. Even otherwise, we are of the opinion that it is more rational to
accept the aforesaid position as clarified by the Ministry of Finance
in the aforesaid circulars. Education cess is on excise duty. It
means that those assessees who are required to pay excise duty
have to shell out education cess as well. This education cess is
introduced by Sections 91 to 93 of the Finance (No. 2) Act, 2004. As
per Section 91 thereof, education cess is the surcharge which the
assessee is to pay. Section 93 makes it clear that this education
cess is payable on "excisable goods," i.e., in respect of goods
specified in the First Schedule to the Central Excise Tariff Act,
1985. Further, this education cess is to be levied @ 2% and
calculated on the aggregate of all duties of excise which are levied
and collected by the Central Government under the provisions of
the Central Excise Act, 1944 or under any other law for the time
being in force. Subsection (3) of Section 93 provides that the
provisions of the Central Excise Act, 1944 and the Rules made
thereunder, including those related to refunds and duties, etc. shall
as far as may be applied in relation to levy and collection of
education cess on excisable goods. A conjoint reading of these
provisions would amply demonstrate that education cess as a
surcharge is levied @ 2% on the duties of excise, which are payable
under the Act. It can, therefore, be clearly inferred that when there
is no excise duty payable, as it is exempted, there would not be any
education cess as well, inasmuch as education cess @ 2% is to be
calculated on the aggregate of duties of excise. There cannot be any
surcharge when basic duty itself is NIL.
24. We are in agreement with the aforesaid reasons accorded by the
Rajasthan High Court since it is in consonance with the legal
principle enunciated by this Court. For this purpose, we may refer
***
21
to the judgment in <cite>CCE v. TELCO (1997) 5 SCC 275</cite>. In that case,
issue pertained to valuation of cess which was levied @ 1/8 per cent
of ad valorem “value” of the Central excise duty. The Court held that
the calculation of 1/8 per cent ad valorem of the motor vehicle for
the purposes of the levy and collection of the automobile cess must
be made that was being calculated since automobile cess was to be
levied and calculated as if it was excise duty. As a fortiori, the
education cess and higher education cess levied @ 2% of the excise
duty would partake the character of excise duty itself.”
27.
In <cite>Bajaj Auto Limited (supra)</cite>, a Division Bench of this Court
considered the question of liability towards NCCD, education cess and
secondary and higher education cess on manufacturing establishment
which is exempted from payment of central excise duty under the Act of
1944. The matter arose from the State of Uttarakhand; an Office
Memorandum dated 7.1.2003 was issued, by which 100 per cent
outright excise duty exemption for ten years was granted from the date of
commencement of the commercial production. Notification dated
10.6.2003 issued under Section 5A has been reproduced in the decision
mentioned above, the same is extracted hereunder:
“GENERAL EXEMPTION NO. 41
Exemption to goods other than specified goods cleared from units
located in the Industrial Growth Centre or Industrial Infrastructure
Development Centre or Export Promotion Industrial Park or
Industrial Estate or Industrial Area or Commercial Estate or
Scheme Area of Uttarakhand and Himachal Pradesh.—In exercise of
the powers conferred by subsection (1) of section 5A of the Central
Excise Act, 1944 (1 of 1944) read with subsection (3) of section 3 of
the Additional Duties of Excise (Goods of Special Importance) Act,
1957 (58 of 1957) and subsection (3) of section 3 of the Additional
Duties of Excise (Textiles and Textiles Articles) Act, 1978 (40 of
1978), the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby exempts the goods specified
in the First Schedule and the Second Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986), other than the goods specified in
22
AnnexureI appended hereto, and cleared from a unit located in the
Industrial Growth Centre or Industrial Infrastructure Development
Centre or Export Promotion Industrial Park or Industrial Estate or
Industrial Area or Commercial Estate or Scheme Area, as the case
may be, specified in [AnnexureII and Annexure III] appended
hereto, from the whole of the duty of excise or additional duty of
excise, as the case may be, leviable thereon under any of the said
Acts.”
The Division Bench has relied upon the decision of <cite>SRD Nutrients
Private Limited (supra)</cite>. The decision of the <cite>Rajasthan High Court in
Banswara Syntex Ltd. v. Union of India, 2007 SCC OnLine Raj. 365</cite>,
which was considered in <cite>SRD Nutrients Private Limited (supra)</cite>, was also
referred to, besides the circular of 2004. This Court has observed thus:
“21. We may notice that the primary reasoning contained in the
impugned order is common for the three cesses, i.e., NCCD;
Education Cess and Secondary & Higher Education Cess. These
were in the nature of surcharges levied in other Acts, which have
not been specifically excluded under the Notification in question.
That reasoning does not prevail, more so because of the judgment in
SRD Nutrients Pvt. Ltd. The question, thus, is whether, even though
the NCCD is in the nature of an excise duty, its incidence being on
the product, rather than on the value of the excise duty, that itself
would make any difference to the applicability of the NCCD to excise
exempt units.
22. On a proper appreciation of the judicial pronouncement in SRD
Nutrients Pvt. Ltd., we are not inclined to take a different view from
the one taken for Education Cess and Secondary & Higher
Education Cess, even while considering the issue of NCCD.
23. We may notice that this Court, in SRD Nutrients Pvt. Ltd. gave
its imprimatur to the view expressed by the Rajasthan High Court
in Banswara Syntex Ltd. The rationale is that while there may be
surcharges under different financial enactments to provide the
Government with revenue for specified purposes, the same have
been notified as leviable in the nature of a particular kind of duty.
In the case of NCCD, it is in the nature of an excise duty. It has to
bear the same character as those respective taxes to which the
surcharge is appended. NCCD will not cease to be an excise duty,
but is the same as an excise duty, even if it is levied on the product.
23
Thus, when NCCD, at the time of collection, takes the character of a
duty on the product, whatever may be the rationale behind it, it is
also subject to the provisions relating to excise duty, applicable to it
in the manner of collection as well as the obligation of the taxpayer
to discharge the duty. Once the excise duty is exempted, NCCD,
levied as an excise duty, cannot partake a different character and,
thus, would be entitled to the benefit of the exemption notification.
The exemption notification also states that the exemption is from
the “whole of the duty of excise or additional duty of excise.” We
may also note that the exemption itself is for a period of ten years
from the date of commercial production of the unit.
24. We are, thus, of the view that the appellant would not be liable
to pay the NCCD.”
28. The Division Bench of this Court has rendered both the above
decisions. The most unfortunate part is that the binding decision of
larger bench consisting of threeJudges of this <cite>Court in Union of India v.
Modi Rubber Limited, (1986) 4 SCC 66</cite>, dealing with the similar issue,
was not placed for consideration before this Court when the
abovementioned decisions came to be rendered.
29. This Court in <cite>Modi Rubber Limited (supra)</cite> has considered the
similar question in the backdrop of the facts that what is the meaning of
the expression ‘duty of excise’ employed in the notifications dated
1.8.1974 and 1.3.1981, issued by the Government of India under Rule
8(1) of the Central Excise Rules. A question arose whether expression
‘duty of excise’ is limited in its connotation only to basic duty levied
under the Central Excises and Salt Act, 1944 or it also covers special
24
duties of excise levied under the various Finance Bills and Acts,
additional duty of excise levied under the Act of 1957 and other kind of
duty of excise levied under the Central enactments.
30.
In <cite>Modi Rubber Limited (supra)</cite>, the company was the manufacturer
of tyres, which product was subject to a duty of excise under the Central
Excises and Salt Act, 1944. The word ‘duty’ under the said Act is defined
in Rule 2(v) to mean “the duty payable under Section 3 of the Act”. The
exemption is dealt with under Rule 8 of Central Excise Rules, exempting
various categories of excisable goods from the whole or any part of the
duty of excise leviable on such goods. The notification dated 1.8.1974,
came up for consideration before this Court in Modi Rubber Limited
(supra), which is extracted hereunder:
“3…..
Notification No. 123/74C.E. dated August 1, 1974
In the exercise of the powers conferred by subrule (1) of Rule 8
of the Central Excise Rules, 1944, the Central Government hereby
exempts tyres for motor vehicles falling under subitem (1) of Item
No.16 of the First Schedule to the Central Excises and Salt Act,
1944 (1 of 1944), from so much of the duty of excise leviable
thereon as is in excess of fiftyfive per cent ad valorem.”
The notification was confined to the exemption of duty of excise
under the Act of 1944 in excess of 55 per cent ad valorem. Subsequently,
the notification dated 1.3.1981, was issued by the Central Government
exempting specified goods from so much of the duty of excise leviable
thereon as is more than the duty specified in the corresponding entry in
25
column 5.
31. This Court in <cite>Modi Rubber Limited (supra)</cite> considered the question
that since 1963, the special duty of excise was levied inter alia on the
manufacture of tyres from year to year up to 1971 by various Finance
Acts passed from time to time. It was discontinued from 1972 to 1978,
and the Finance Act, 1978, again revived it. After that, it continued to be
levied from year to year right up to the period. The special duties of
excise came to be imposed under Section 32 of the Finance Act, 1979,
which came up for consideration before this Court in <cite>Modi Rubber
Limited (supra)</cite>. The same is extracted hereunder:
“32. Special Duties of Excise.— (1) In the case of goods chargeable
with a duty of excise under the Central Excises Act as amended
from time to time, read with any notification for the time being in
force issued by the Central Government in relation to the duty so
chargeable there shall be levied and collected a special duty of
excise equal to five per cent of the amount so chargeable on such
goods.
(2) Subsection (1) shall cease to have effect after the 31st day of
March, 1980, except as respects things done or omitted to be done
before such cesser; and Section 6 of the General Clauses Act, 1897,
shall apply upon such cesser as if the said subsection had then
been repealed by a Central Act.
(3) The Special duties of excise referred to in subsection (1) shall
be in addition to any duties of excise chargeable on such goods
under the Central Excises Act or any other law for the time being in
force.
(4) The provisions of the Central Excises Act and the rules made
thereunder, including those relating to refunds and exemptions
from duties, shall, as far as may be, apply in relation to the levy and
collection of the special duties of excise leviable under this section
in respect of any goods as they apply in relation to the levy and
collection of the duties of excise on such goods under that Act or
those rules as the case may be.”
26
(emphasis supplied)
32. The provisions of Section 32 are pari materia
to the
abovementioned provisions of the Finance Act(s) in question. The special
duty under Section 32 of Finance Act, 1979 imposed was in addition to
any duties of excise chargeable on such goods under the provisions of
the Central Excises Act and the Rules made thereunder, with respect to
refunds and exemptions from duties, shall, as far as may be, apply to the
levy and collection of special duties of excise leviable under the
provisions of Section 32 of the Finance Act, 1979.
33. The assessee <cite>Modi Rubber Limited (supra)</cite> claimed that in view of
the notification dated 1.8.1974, assessee was exempted from payment
not only in respect of basic excise duty levied under the Central Excises
and Salt Act, 1944, but also in respect of special duty of excise levied
under the relevant Finance Acts, because the language used in the
notification was not restrictive and it referred generally to ‘duty of excise’
without any qualification, therefore, it covered all duties of excise
whether levied under the Central Excises and Salt Act, 1944 or under
any other Central enactments. The dispute pertained to the period from
November 1979 to October 1982.
27
34. The Assistant Collector of Excise, in the case of <cite>Modi Rubber
Limited (supra)</cite>, held that exemption granted under the notification dated
1.8.1974, was not available in respect of special duty of excise levied
under the Finance Acts. The assessee thereupon filed a writ petition in
the Delhi High Court, challenging the order of the Assistant Collector of
Excise. The Delhi High Court upheld the claim of the assessee. It took
the view that the expression ‘duty of excise’ included not only basic duty
of excise levied under the Central Excises and Salt Act, 1944, but also
the special duty of excise levied under the various Finance Acts and any
other duties of excise levied under Central enactment. Meanwhile,
Parliament also enacted the Central Excise Laws (Amendment and
Validation) Act, 1982 laying down statutory rules which should guide the
court in interpreting notifications granting exemption from payment of
duty of excise and prescribing the conditions on which a notification
granting exemption from payment of duty of excise can be construed as
applicable to duty of excise levied under any Central law making the
provisions of the Central Excises and Salt Act, 1944 and the Rules made
thereunder applicable to the levy and collection of duty of excise under
such Central Law.
35. The question arose for consideration before this Court as to what is
28
the real import of the expression ‘duty of excise’ in the notifications dated
1.8.1974 and 1.3.1981 and whether it includes the duties of excise
leviable not only under the Central Excises and Salt Act, 1944, but also
under any other enactment.
36. This Court in <cite>Modi Rubber Limited (supra)</cite> has considered the
purport of the notifications and the specific provisions mentioned therein
and held that exemption has to be considered in the light of provisions of
Central Excise Rules, 1944, as envisaged under Rule 2(v) of Central
Excise Rules, 1944. It cannot, in the circumstances, bear an extended
meaning to include special excise duty and auxiliary excise duty. This
Court observed thus:
“6. The first question that arises for consideration on these facts is
as to what is the true import of the expression "duty of excise" in
the notifications dated August 1, 1974, and March 1, 1981. It is
only if this expression is held to include duties of excise leviable not
only under the Central Excises and Salt Act, 1944 but also under
any other enactments that the question would arise whether the
Central Laws (Amendment and Validation) Act, 1982 is
constitutionally invalid. We, therefore, asked the learned counsel
appearing on behalf of the parties to confine their arguments only to
the first question of interpretation of the expression ‘duty of excise’
in the notifications dated August 1, 1974 and March 1, 1981.
7. Both these notifications, as the opening part shows, are issued
under Rule 8(1) of the Central Excise Rules, 1944 and since the
definition of ‘duty’ in Rule 2, clause (v) must necessarily be
projected in Rule 8(1) and the expression “duty of excise” in Rule
8(1) must be read in the light of that definition, the same expression
used in these two notifications issued under Rule 8(1) must also be
interpreted in the same sense, namely, duty of excise payable under
the Central Excises and Salt Act, 1944 and the exemption granted
under both these notifications must be regarded as limited only to
29
such duty of excise. But the respondents contended that the
expression ‘duty of excise’ was one of large amplitude and in the
absence of any restrictive or limitative words indicating that it was
intended to refer only to duty of excise leviable under the Central
Excises and Salt Act, 1944, it must be held to cover all duties of
excise whether leviable under the Central Excises and Salt Act,
1944 or under any other enactment. The respondents sought to
support this contention by pointing out that whenever the Central
Government wanted to confine the exemption granted under a
notification to the duty of excise leviable under the Central Excises
and Salt Act, 1944, the Central Government made its intention
abundantly clear by using appropriate words of limitation such as
“duty of excise leviable ... under Section 3 of the Central Excises
and Salt Act, 1944” or “duty of excise leviable ... under the Central
Excises and Salt Act, 1944” or “duty of excise leviable ... under the
said Act” as in the Notification No. CER8(2)/55C.E. dated
September 17, 1955, Notification No. 255/77C.E. dated July 20,
1977, Notification No. CER8(1)/55C.E. dated September 2, 1955,
Notification No. CER8(9)/55C.E. dated December 31, 1955,
Notification No. 95/61C.E. dated April 1, 1961, Notification No.
23/55C.E. dated April 29, 1955, and similar other notifications.
But, here said the respondents, no such words of limitation are
used in the two notifications in question and the expression “duty of
excise” must, therefore, be read according to its plain natural
meaning as including all duties of excise, including special duty of
excise and auxiliary duty of excise. Now, it is no doubt true that in
these various notifications referred to above, the Central
Government has, while granting exemption under Rule 8(1), used
specified language indicating that the exemption, total or partial,
granted under each such notification is in respect of excise duty
leviable under the Central Excises and Salt Act, 1944. But, merely
because, as a matter of drafting, the Central Government has in
some notifications specifically referred to the excise duty in respect
of which exemption is granted as “duty of excise” leviable under the
Central Excises and Salt Act, 1944, it does not follow that in the
absence of such words of specificity, the expression “duty of excise”
standing by itself must be read as referring to all duties of excise. It
is not uncommon to find that the legislature sometimes, with a view
to making its intention clear beyond doubt, uses language ex
abundanti cautela though it may not be strictly necessary and even
without it the same intention can be spelt out as a matter of judicial
construction and this would be more so in case of subordinate
legislation by the executive. The officer drafting a particular piece of
subordinate legislation in the Executive Department may employ
words with a view to leaving no scope for possible doubt as to its
intention or sometimes even for greater completeness, though these
words may not add anything to the meaning and scope of the
subordinate legislation. Here, in the present notifications, the words
duty of excise leviable under the Central Excises and Salt Act, 1944’
30
do not find a place as in the other notifications relied upon by the
respondents. But, that does not necessarily lead to the inference
that the expression “duty of excise’ in these notifications was
intended to refer to all duties of excise including special and
auxiliary duties of excise. The absence of these words does not
absolve us from the obligation to interpret the expression “duty of
excise” in these notifications. We have still to construe this
expression — what is its meaning and import — and that has to be
done, bearing in mind the context in which it occurs. We have
already pointed out that these notifications having been issued
under Rule 8(1), the expression ‘duty of excise’ in these notifications
must bear the same meaning which it has in Rule 8(1) and that
meaning clearly is — excise duty payable under the Central Excises
and Salt Act, 1944 as envisaged in Rule 2 clause (v). It cannot in the
circumstances bear an extended meaning so as to include special
excise duty and auxiliary excise duty.”
37. This Court in <cite>Modi Rubber Limited (supra)</cite> further considered the
question when the notification was issued on 1.8.1974, there was no
special duty of excise leviable on tyres, it came to be introduced in 1978
under various Finance Acts. It was held that the notification could not
be read as comprehending the special duty of excise on the date of the
notification and came to be levied four years later. This Court also laid
down that the presumption is that when the Central Government issues
a notification granting exemption from payment of excise duty under
Rule 8(1) of Rules of 1944, the Central Government would have
considered whether exemption should be granted and if so, to what
extent and can only be with reference to the duty of excise which is then
leviable, not a duty to be imposed in future. This Court in <cite>Modi Rubber
Limited (supra)</cite> strongly repelled the argument that it would cover the
31
duties to be imposed in the future not prevailing at the relevant time
thus:
“8. Moreover, at the date when the first notification was issued,
namely, August 1, 1974, there was no special duty of excise leviable
on tyres. It came to be levied on tyres with effect from the financial
year 1978 under various Finance Acts enacted from year to year. It
is therefore difficult to understand how the expression “duty of
excise” in the notification dated August 1, 1974 could possibly be
read as comprehending special duty of excise which did not exist at
the date of this notification and came to be levied almost four years
later. When special duty of excise was not in existence at the date of
this notification, how could the Central Government, in issuing this
notification, have intended to grant exemption from payment of
special excise duty? The presumption is that when a notification
granting exemption from payment of excise duty is issued by the
Central Government under Rule 8(1), the Central Government
would have applied its mind to the question whether exemption
should be granted and if so, to what extent. And obviously, that can
only be with reference to the duty of excise, which is then leviable.
The Central Government could not be presumed to have projected
its mind into the future and granted exemption in respect of excise
duty which may be levied in the future, without considering the
nature and extent of such duty and the object and purpose for
which such levy may be made and without taking into account the
situation which may be prevailing then. It is only when a new duty
of excise is levied, whether special duty of excise or auxiliary duty of
excise or any other kind of duty of excise, that a question could
arise whether any particular article should be exempted from
payment of such duty of excise and the Central Government would
then have to apply its mind to this question and having regard to
the nature and extent of such duty of excise and the object and
purpose for which it is levied and the economic situation including
supply and demand position then prevailing, decide whether
exemption from payment of such excise duty should be granted and
if so, to what extent. It would be absurd to suggest that by issuing
the notification dated August 1, 1974 the Central Government
intended to grant exemption not only in respect of excise duty then
prevailing but also in respect of all future duties of excise which
may be levied from time to time.”
38. This Court in <cite>Modi Rubber Limited (supra)</cite> also considered the
32
provisions of Section 32 of the Finance Act, 1979, levying special duty
making applicable to the provisions of the Act of 1944 and the Rules
made thereunder, relating to refunds and exemptions from duties. They
shall, as far as may be, apply in relation to the levy and collection of the
special duty of excise as they apply to the levy and collection of the duty
of excise under the Act of 1944. It was held that reference to the
provisions under section 32 of the Finance Act as to the source of power
under which notifications dated 1.8.1974 and 1.3.1981 were issued, it
could not be held that exemption granted under these two notifications
was extendable to Finance Act, 1979. It was limited only to the duty of
excise payable under the Act of 1944. The expression 'duty of excise' in
these two notifications could not legitimately be construed as
comprehending special duty of excise. Merely reference to the source of
power is not enough to attract the exemption and what exemption has
been granted to be read from the notification issued therein. This Court
has further laid down that in case notification granting exemption issued
under the Central Excise Rules, 1944 without reference to any other
statute, the exemption must be read as limited to the duty of excise
payable under the Central Excises and Salt Act, 1944. It cannot cover
such special or another kind of duty of excise. This Court in <cite>Modi
Rubber Limited (supra)</cite> has discussed the provisions of the Finance Act,
33
1979 thus:
“9. We have already pointed out, and this is one of the principal
arguments against the contention of the respondents, that by
reason of the definition of “duty” in clause (v) of Rule 2 which must
be read in Rule 8(1), the expression “duty of excise” in the
notifications dated August 1, 1974 and March 1, 1981 must be
construed as duty of excise payable under the Central Excises and
Salt Act, 1944. The respondents sought to combat this conclusion
by relying on subsection (4) of Section 32 of the Finance Act, 1979
— there being an identical provision in each Finance Act levying
special duty of excise — which provided that the provisions of the
Central Excises and Salt Act, 1944 and the rules made thereunder
including those relating to refunds and exemptions from duties
shall, as far as may be, apply in relation to the levy and collection of
special duty of excise as they apply in relation to the levy and
collection of the duty of excise under the Central Excises and Salt
Act, 1944. It was urged on behalf of the respondents that by reason
of this provision, Rule 8(1) relating to exemption from duty of excise
became applicable in relation to the levy and collection of special
duty of excise and exemption from payment of special duty of excise
could therefore be granted by the Central Government under Rule
8(1) in the same manner in which it could be granted in relation to
the duty of excise payable under the Central Excises and Salt Act,
1944. The argument of the respondents based on this premise was
that the reference to Rule 8(1) as the source of the power under
which the notifications dated August 1, 1974 and March 1, 1981
were issued could not therefore be relied upon as indicating that the
duty of excise from which exemption was granted under these two
notifications was limited only to the duty of excise payable under
the Central Excises and Salt Act, 1944 and the expression “duty of
excise” in these two notifications could legitimately be construed as
comprehending special duty of excise. This argument is, in our
opinion, not wellfounded and cannot be sustained. It is obvious
that when a notification granting exemption from duty of excise is
issued by the Central Government in exercise of the power under
Rule 8(1) simpliciter, without anything more, it must, by reason of
the definition of ‘duty’ contained in Rule 2 clause (v) which
according to the well recognised canons of construction would be
projected in Rule 8(1), be read as granting exemption only in respect
of duty of excise payable under the Central Excises and Salt Act,
1944. Undoubtedly, by reason of subsection (4) of Section 32 of the
Finance Act, 1979 and similar provision in the other Finance Acts,
Rule 8(1) would become applicable empowering the Central
Government to grant exemption from payment of special duty of
excise, but when the Central Government exercises this power, it
would be doing so under Rule 8(1) read with subsection (4) of
Section 32 or other similar provision. The reference to the source of
34
power in such a case would not be just to Rule 8(1), since it does
not of its own force and on its own language apply to granting of
exemption in respect of special duty of excise, but the reference
would have to be to Rule 8(1) read with subsection (4) of Section 32
or other similar provision. It is significant to note that during all
these years, whenever exemption is sought to be granted by the
Central Government from payment of special duty of excise or
additional duty of excise, the recital of the source of power in the
notification granting exemption has invariably been to Rule 8(1)
read with the relevant provision of the statute levying special duty of
excise or additional duty of excise, by which the provisions of the
Central Excises and Salt Act, 1944 and the rules made thereunder
including those relating to exemption from duty are made
applicable. Take for example, the Notification bearing No. 63/78
dated August 1, 1978 where exemption is granted in respect of
certain excisable goods “from the whole of the special duty of excise
leviable thereon under subclause (1) of clause 37 of the Finance
Bill, 1978”. The source of the power recited in this notification is
“subrule (1) of Rule 8 of the Central Excise Rules, 1944 read with
subclause (5) of clause 37 of the Finance Bill, 1978”. So also in the
Notification bearing No. 29/79 dated March 1, 1979 exempting
unmanufactured tobacco “from the whole of the duty of excise
leviable thereon both under the Central Excises and Salt Act, 1944
and Additional Duties of Excise (Goods of Special Importance) Act,
1957”, the reference to the source of power mentioned in the
opening part of the notification is “subrule (1) of Rule 8 of the
Central Excise Rules, 1944 read with subsection (3) of Section 3 of
the Additional Duties of Excise (Goods of Special Importance) Act,
1957”. The respondents have in fact produced several notifications
granting exemption in respect of special duty of excise or additional
duty of excise and in each of these notifications, we find that the
source of power is described as subrule (1) of Rule 8 of the Central
Excise Rules, 1944 read with the relevant provision of the statute
levying special duty of excise or additional duty of excise by which
the provisions of the Central Excises and Salt Act, 1944 and the
Rules made thereunder including those relating to exemption from
duty are made applicable. Moreover, the exemption granted under
all these notifications specifically refers to special duty of excise or
additional duty of excise, as the case may be. It is, therefore, clear
that where a notification granting exemption is issued only under
subrule (1) of Rule 8 of the Central Excise Rules, 1944 without
reference to any other statute making the provisions of the Central
Excises and Salt Act, 1944 and the Rules made thereunder
applicable to the levy and collection of special, auxiliary or any
other kind of excise duty levied under such statute, the exemption
must be read as limited to the duty of excise payable under the
Central Excises and Salt Act, 1944 and cannot cover such special,
auxiliary or other kind of duty of excise. The notifications in the
present case were issued under subrule (1) of Rule 8 of the Central
35
Excise Rules, 1944 simpliciter without reference to any other
statute and hence the exemption granted under these two
notifications must be construed as limited only to the duty of excise
payable under the Central Excises and Salt Act, 1944.”
This Court in <cite>Modi Rubber Limited (supra)</cite> has also considered
when the exemption is granted under the particular provision; it would
not cover any other kind of duty of excise imposed under separate Acts.
This Court observed thus:
“10. We may incidentally mention that in the appeals a question of
interpretation was also raised in regard to the Notification bearing
No. 249/67 dated November 8, 1967 exempting tyres for tractors
from “so much of the duty leviable thereon under item 16 of the
First Schedule to the Central Excises and Salt Act, 1944 as is in
excess of 15 per cent”. The argument of the respondents in the
appeals was that the exemption granted under this notification was
not limited to the duty of excise payable under the Central Excises
and Salt Act, 1944 but it also extended to special duty of excise,
additional duty of excise and auxiliary duty of excise leviable under
other enactments. This argument plainly runs counter to the very
language of this notification. It is obvious that the exemption
granted under this notification is in respect of “so much of the duty
leviable thereon under item 16 of the First Schedule to the Central
Excises and Salt Act, 1944 as is in excess of 15 per cent” and these
words describing the nature and extent of the exemption on their
plain natural construction, clearly indicate that the exemption is in
respect of duty of excise leviable under the Central Excises and Salt
Act, 1944 and does not cover any other kind of duty of excise. No
more discussion is necessary in regard to this question beyond
merely referring to the language of this notification.”
The appeals were allowed, and it was held that exemption was not
available in respect of special duty of excise or additional duty of excise
or auxiliary duty of excise. A threeJudge Bench in <cite>Rita Textiles Private
Limited v. Union of India, 1986 SCC Supp. 557</cite>, has followed the decision
36
of <cite>Modi Rubber Limited (supra)</cite>. The decision in <cite>Modi Rubber Limited
(supra)</cite> squarely covers the issue and is rendered by a Coordinate
Bench.
39. Rule 8 of Central Excise Rules, 1944, authorises the Central
Government to grant an exemption to any excisable goods from the whole
or any part of duty leviable on such goods. Rule 8 is extracted
hereunder:
“8. Power to authorise an exemption from duty in special cases.—(1)
The Central Government may from time to time, by notification in
the official Gazette, exempt (subject to such conditions as may be
specified in the notification) any excisable goods from the whole or
any part of duty leviable on such goods.
(2) The Central Board of Excise and Customs may by special
order in each case exempt from the payment of duty, under
circumstances of an exceptional nature, any excisable goods.”
The word ‘duty’ is defined under Rule 2(v) to mean the duty as
levied under the Act.
40. Notification dated 9.9.2003 issued in the present case makes it
clear that exemption was granted under Section 5A of the Act of 1944,
concerning additional duties under the Act of 1957 and additional duties
of excise under the Act of 1978. It was questioned on the ground that it
provided for limited exemption only under the Acts referred to therein.
There is no reference to the Finance Act, 2001 by which NCCD was
37
imposed, and the Finance Acts of 2004 and 2007 were not in vogue. The
notification was questioned on the ground that it should have included
other duties also. The notification could not have contemplated the
inclusion of education cess and secondary and higher education cess
imposed by the Finance Acts of 2004 and 2007 in the nature of the duty
of excise. The duty on NCCD, education cess and secondary and higher
education cess are in the nature of additional excise duty and it would
not mean that exemption notification dated 9.9.2003 covers them
particularly when there is no reference to the notification issued under
the Finance Act, 2001. There was no question of granting exemption
related to cess was not in vogue at the relevant time imposed later on
vide Section 91 of the Act of 2004 and Section 126 of the Act of 2007.
The provisions of Act of 1944 and the Rules made thereunder shall be
applicable to refund, and the exemption is only a reference to the source
of power to exempt the NCCD, education cess, secondary and higher
education cess. A notification has to be issued for providing exemption
under the said source of power. In the absence of a notification
containing an exemption to such additional duties in the nature of
education cess and secondary and higher education cess, they cannot be
said to have been exempted. The High Court was right in relying upon
the decision of threeJudge Bench of this Court in <cite>Modi Rubber Limited
38
(supra)</cite>, which has been followed by another threeJudge Bench of this
Court in <cite>Rita Textiles Private Limited (supra)</cite>.
41. The Circular of 2004 issued based on the interpretation of the
provisions made by one of the Customs Officers, is of no avail as such
Circular has no force of law and cannot be said to be binding on the
Court. Similarly, the Circular issued by Central Board of Excise and
Customs in 2011, is of no avail as it relates to service tax and has no
force of law and cannot be said to be binding concerning the
interpretation of the provisions by the courts. The reason employed in
<cite>SRD Nutrients Private Limited (supra)</cite> that there was nil excise duty, as
such, additional duty cannot be charged, is also equally unacceptable as
additional duty can always be determined and merely exemption granted
in respect of a particular excise duty, cannot come in the way of
determination of yet another duty based thereupon. The proposition
urged that simply because one kind of duty is exempted, other kinds of
duties automatically fall, cannot be accepted as there is no difficulty in
making the computation of additional duties, which are payable under
NCCD, education cess, secondary and higher education cess. Moreover,
statutory notification must cover specifically the duty exempted. When a
particular kind of duty is exempted, other types of duty or cess imposed
39
by different legislation for a different purpose cannot be said to have
been exempted.
42. The decision of larger bench is binding on the smaller bench has
been held by this Court in several decisions such as <cite>Mahanagar Railway
Vendors’ Union v. Union of India & Ors. (1994) Suppl. 1 SCC 609</cite>, <cite>State of
Maharashtra & Ors. v. Mana Adim Jamat Mandal, AIR 2006 SC 3446</cite> and
<cite>State of Uttar Pradesh & Ors. v. Ajay Kumar Sharma & Ors. (2016) 15
SCC 289</cite>. The decision rendered in ignorance of a binding precedent
and/or ignorance of a provision has been held to be per incuriam in
<cite>Subhash Chandra & Ors. v. Delhi Subordinate Services Selection Board &
Ors. (2009) 15 SCC 458</cite>, <cite>Dashrath Rupsingh Rathod v. State of
Maharashtra (2014) 9 SCC 129</cite>, and <cite>Central Board of Dawoodi Bohra
Community & Ors. v. State of Maharashtra & Ors. (2005) 2 SCC 673</cite>. It
was held that a smaller bench could not disagree with the view taken by
a larger bench.
43. Thus, it is clear that before the Division Bench deciding <cite>SRD
Nutrients Private Limited</cite> and <cite>Bajaj Auto Limited (supra)</cite>, the previous
binding decisions of threeJudge Bench in <cite>Modi Rubber (supra)</cite> and <cite>Rita
Textiles Private Limited (supra)</cite> were not placed for consideration. Thus,
40
the decisions in <cite>SRD Nutrients Private Limited</cite> and <cite>Bajaj Auto Limited</cite>
(supra) are clearly per incuriam. The decisions in <cite>Modi Rubber (supra)</cite>
and <cite>Rita Textiles Private Limited (supra)</cite> are binding on us being of Co
ordinate Bench, and we respectfully follow them. We did not find any
ground to take a different view.
44. Resultantly, we have no hesitation in dismissing the appeals. The
judgment and order of the High Court are upheld, and the appeals are
dismissed. No costs.
|
1.
2.
The appellant approached this Court, aggrieved by
the reversal of the decree of nullity granted to him
by the trial court. When the matter came up before
this Court, the parties agreed for a mediation before
the Supreme Court Mediation Center. We are happy to
note that the parties have arrived at an amicable
settlement. The settlement agreement dated
14.05.2018, duly signed by the parties and their
respective counsel and also the learned mediator, is
taken on record and shall form part of this Judgment.
3.
Today, in terms of the settlement, the appellant
has handed over a Demand Draft, bearing No. 172275
dated 09.05.2018, to the tune of Rs. 8,50,000/-
(Rupees Eight Lakhs and Fifty Thousand) in the name
2
of Neeru Mishra, drawn on State Bank of India, which
has been duly acknowledged by the respondent. We
direct the parties to strictly abide by the other
terms of settlement.
Since the parties have settled their disputes, we
4.
do not find it necessary that the parties should
continue with the litigations. Accordingly, the
proceedings in the following cases, as mentioned in
the settlement agreement, are quashed:-
(i) Case No. 3006 of 2012 – Neeru Mishra Vs. Santosh
Mishra & Ors. under Section 417 IPC pending before 7th
ACMM Kanpur Nagar, Uttar Pradesh.
(ii) Case No. 609 of 2013 – Neeru Mishra Vs. Santosh
Mishra & Ors. under Section 406 IPC pending before
4th M. M. Kanpur Nagar, Uttar Pradesh.
(iii)Case No. 1349 of 2013 – State Vs. Santosh Mishra
& Ors. under Sections 498A, 323, 504 IPC and Sections
3 and 4 of D.P. Act, Mahila Thana, Kanpur Nagar,
Uttar Pradesh.
(iv) Case No. 1829 of 2017 – Smt. Neeru Mishra Vs.
Santosh Kumar Mishra under Section 9 of Hindu
3
Marriage Act pending before the Principal Judge,
Family Court, Kanpur Nagar, Uttar Pradesh.
5.
The following cases are dismissed:
(i). Case No. 20013 of 2008 – under Section 482
Cr.P.C. pending before the High Court of Allahabad,
Uttar Pradesh.
(ii) Case No. 2370 of 2009 – under Section 492
Cr.P.C. pending before the Allahabad High Court,
Uttar Pradesh.
(iii) Case No. 32437 of 2008 under Section 482
Cr.P.C. pending in the High Court of Allahabad, Uttar
Pradesh.
(iv) Case No. 8828 of 2009 under Section 482 Cr.P.C.
pending in the High Court of Allahabad, Uttar
Pradesh.
(v) Criminal Revision Case No. 4472 of 2010 under
Section 417 of IPC pending before the High Court of
Allahabad, Uttar Pradesh.
4
(vi) Criminal Revision Case No. 5729 of 2010 under
Section 125 Cr. P.C. pending before High Court of
Allahabad, Uttar Pradesh.
(vii) Criminal Case No. 741 of 2013 under Section 12
D. V. Act pending before the High Court of Allahabad,
Uttar Pradesh.
6.
We record our deep appreciation for the earnest
efforts taken by Ms. Shalini Shishodia, learned
counsel, and also the cooperation extended by the
learned counsel for the parties for reaching an
amicable settlement of the disputes.
7.
In view of the above, this appeal is disposed of.
</meta>
5
ITEM NO.56 COURT NO.5 SECTION III-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition for Special Leave to Appeal (C) No. 2899 of 2018
SANTOSH KUMAR MISHRA Appellant(s)
VERSUS
NEERU MISHRA Respondent(s)
(FOR ADMISSION and I.R. and IA No.6037/2018-CONDONATION OF DELAY IN
FILING SLP and IA No.6041/2018-CONDONATION OF DELAY IN REFILING
SLP)
Date : 17-05-2018 This petition was called on for hearing today.
CORAM : HON'BLE MR. JUSTICE KURIAN JOSEPH
HON'BLE MR. JUSTICE MOHAN M. SHANTANAGOUDAR
For Appellant(s)
Mr. Kislay Pandae, Adv.
Mr. Rabin Majumdar, Adv.
Mr. Joydeep Mukherjee, Adv.
Ms. Manju Jetley, AOR
For Respondent(s)
Dr. Vinod Kumar Tewari, AOR
Mr. Baijnath Prasad Pathak, Adv.
Mr. Vivek Tiwari, Adv.
Mr. Pankaj Kumar Singh, Adv.
Mr. Pramod Tiwari, Adv.
UPON hearing the counsel the Court made the following
O R D E R
Leave granted.
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The appeal is disposed of in terms of the signed
non-reportable Judgment.
Pending Interlocutory Applications, if any, stand disposed of.
|
2.
One Vijender Singh along with two others Bhagwan Das and
Manish, was travelling by a motor cycle on 10-12-2002. The said
motor cycle was hit by a truck bearing registration No. RJ-14G-
1556, resulting in the death of both Vijender Singh and Bhagwan
Das. Respondent No.1 is the wife, Respondents 2 to 5 are the
children, Respondent No.6, we are informed, is the mother of the
deceased Vijender Singh. Respondents 1 to 6 herein filed an
application against the appellant herein and others for
compensation. The appellant, admittedly, is the insurer of the
abovementioned truck. A huge claim of Rs.1,86,30,000/-, was
2
made towards compensation on the ground that the deceased
Vijender Singh was earning more than Rs.35,000/- per month. The
Tribunal, by its Judgment dated 06-02-2006, awarded an amount of
Rs.10,00,000-00§ and provided for appropriate deductions for the
amounts, which had already been paid and also gave necessary
directions for safeguarding the interest of the minor children.
3. From the Judgment of the Tribunal it appears that the
claimants based their claim on the facts that the deceased Virender
Singh was the owner of three vehicles (mini buses) and also certain
agricultural land. It appears from the record that no evidence
regarding the amount of income derived from the above mentioned
properties is adduced. The only evidence available is the statement
of the 1st respondent that the deceased used to give her an amount
of Rs.35,000/- per month. She also admitted in her cross
examination that the deceased was not filing any income tax
returns. Therefore, the Tribunal reached a conclusion that the
The petitioners are not entitled to any other compensation and they are held entitled
to receive the following amount of compensation:
1.
Rs.9,60,000.00
2.
10,000.00
25,000.00
3.
4.
5,000.00
On a/c of loss of
dependency from income =
For loss of consortium to
Petitioner No.1
=
For loss of love and
affection to petitioner
No.2 to 6 @ 5000/- each =
For funeral expenses
=
Rs.
Rs.
Rs.
Total
-----------------------
Rs. 10,00,000.00
3
statement of the 1st respondent, that the deceased was earning
more than Rs.35,000/-, cannot be believed. However, the Tribunal
opined as under:
“Thus keeping in view the fact of ownership of two buses
and one bus given on contract and the agriculture land it
can be said that the deceased was earning Rs.3900/-per
month in the capacity of the driver of a bus. Keeping in
view the remaining buses and agriculture land it will be
appropriate to hold the income of the deceased at Rs.7380/-
because in case he would have earned more than the said
amount, he must have filed the income tax return. If the
deceased would remain alive he must have spent 1/3rd upon
himself, therefore it would be appropriate to hold the
monthly dependency at Rs.5000/-.”
4.
Aggrieved by the said determination of the compensation
made by the Tribunal, the claimants as well as the appellant herein
carried the matter in Appeal to the High Court of Rajasthan.
Admittedly, the Appeal preferred by the appellant herein was
dismissed, whereas the Appeal preferred by the claimants (S.B.
Civil Misc. Appeal No.1222 of 2006) was partially allowed modifying
the Award of the Tribunal. The High Court by its Judgment dated
30-01-2009 opined that the deceased Vijender Singh’s income
should be taken at Rs.24,000/- per month of which 1/3rd is treated
to be an amount, which the deceased would have spent on himself
and the balance on the claimants. Therefore, the High Court
concluded that the claimants are entitled for a compensation of
Rs.30,72,000/-, and directed:
“However, the rest of the award is confirmed. The
Insurance Company is directed to pay the enhanced amount
along with an interest @ 6% per annum from the date of
the filing of the claim petition i.e. 24.3.03 till the realization
4
to the claimants within a period of two months. The
learned Tribunal is directed to insure that the enhanced
amount of compensation is paid to the claimants within a
period of two months from the date of receipt of the
certified copy of this judgment.”
Hence, the present Appeal.
5.
The learned counsel for the appellant Sri M.K. Dua argued
that the High Court grossly erred in coming to a conclusion that the
income of the deceased should be determined at Rs.24,000/- per
month. Such a determination is without any factual basis or
evidence on record and therefore, contrary to the principle of law
laid down by this Court in a catena of decisions, more particularly,
in <cite>State of Haryana & Anr. Vs. Jasbir Kaur & Ors., (2003) 7 SCC
484</cite>, and, therefore, the Judgment under appeal cannot be
sustained.
6. On the other hand, it is very strenuously argued by Sri
Ashwani Garg, learned counsel for the claimants, that in view of the
fact that there are six dependents on the deceased, of whom, four
are school-going children, who are required to be educated by the
1st respondent widow, the High Court rightly enhanced the
compensation and the Judgment under Appeal does not call for any
interference by this Court.
7.
This Court in <cite>Jasbir Kaur case (supra)</cite> held that the Tribunal is
required to make a just and reasonable Award determining the
compensation to be paid to the dependents of the victim of a fatal
motor vehicle accident. Explaining the concept of just and
5
reasonable Award in the context of a motor vehicle accident claim,
this Court held as follows:
“It has to be kept in view that the Tribunal constituted
under the Act as provided in Section 168 is required to
make an award determining the amount of compensation
which is to be in the real sense "damages" which in turn
appears to it to be 'just and reasonable'. It has to be borne in
mind that compensation for loss of limbs or life can hardly
be weighed in golden scales. But at the same time it has be
to be borne in mind that the compensation is not expected
to be a windfall for the victim. Statutory provisions clearly
indicate the compensation must be "just" and it cannot be a
bonanza: not a source of profit; but the same should not be
a pittance. The Courts and Tribunals have a duty to weigh
the various factors and quantify the amount of
compensation, which should be just. What would be "just"
compensation is a vexed question. There can be no golden
rule applicable to all cases for measuring the value of
human life or a limb. Measure of damages cannot be
arrived at by precise mathematical calculations. It would
depend upon the particular facts and circumstances, and
attending peculiar or special features, if any. Every method
or mode adopted for assessing compensation has to be
considered in the background of "just" compensation which
is the pivotal consideration. Though by use of the
expression "which appears to it to be just" a wide discretion
is vested on the Tribunal, the determination has to be
rational, to be done by a judicious approach and not the
outcome of whims, wild guesses and arbitrariness. The
expression "just" denotes equitability, fairness and
reasonableness, and non-arbitrary. If it is not so it cannot be
just. (See Helen C. Rebello Vs. Maharashtra State Road
Transport Corporation, AIR1998SC3191).”
8. Keeping the above principle in view, we must now examine
the correctness of the conclusion arrived at by the Judgment under
Appeal that the income of the deceased Virender Singh is to be
taken at Rs.24,000/- per month. The reasoning of the High Court in
that regard is as follows:
6
“ While trying to assess his income, the learned Tribunal
has conclused that as a driver he must have been earning
Rs.3900/- per month and his total income would have been
7500/- per month. However, considering the fact that
Vijendra Singh would have earned Rs.3900/- per month as
a driver, it is difficult to believe that he would have earned
merely Rs.3600/- from the two buses owned by him. There
is no evidence produced by the respondent No.3 to show
that the buses were not being plied. Considering the lack of
transportation buses are plied. Thus, it is difficult to believe
that in the transportation business, owner of two buses
would have earned merely Rs.3600/- per month from two
buses. Therefore, the logic of the learned Tribunal is
highly questionable. If the figure of Rs.3900/- has a
reasonable assessment of the salary of a driver, obviously
the owner of two buses would have earned more than
Rs.3900/- to the driver of his own bus. Thus, a reasonable
assessment would be that the owner of bus would be
earning atleast Rs.10,000/- from each bus. Therefore,
Vijendra Singh’s income should be taken as Rs.23,900/-
per month or Rs.24,000/- in the round.”
In other words, in view of the Tribunal’s conclusion that Vijender
Singh was earning an amount of Rs.3900/- in his capacity as the
driver of the bus per month, the High Court reached the conclusion
that in his capacity as the owner of three buses, he must be
deriving a much higher income from the buses. We agree with the
logic of the High Court. However, the quantum of such income
would depend upon various factors, such as; whether it is a stage
carriage or a contract carriage, the condition of the bus, its seating
capacity, the route on which it is plying, the cost of maintenance,
the taxes to be paid on such business etc. But, the question is
whether the income (either gross or net) derived by the owner of a
bus could legally form the basis for determining the amount of
compensation payable to his dependents, if he happens to die in a
motor vehicle accident.
7
9.
In our opinion, such an income cannot form the legal basis for
determining the compensation.
10.
In <cite>Jasbir Kaur case (supra)</cite>, the claim was based on an
assertion that the deceased was an agriculturist earning an amount
of Rs.10,000/- per month by cultivating his land. Dealing with the
question, this Court held:
“8. xxxxxxxxx. The land possessed by the deceased still
remains with the claimants as his legal heirs. There is
however a possibility that the claimants may be required to
engage persons to look after agriculture. Therefore, the
normal rule about the deprivation of income is not strictly
applicable to cases where agricultural income is the source.
Attendant circumstances have to be considered.”
11. Coming to the case on hand, the claim is based on the
assertion that the deceased owned agricultural land apart from the
abovementioned three mini-buses. The High Court rejected the
claim insofar as it is based on the income from the land, on the
ground that the income would still continue to accrue to the benefit
of the family. Unfortunately, the High Court failed to see that the
same logic would be applicable even to the income from the
abovementioned three buses. The asset (three mini-buses) would
still continue with the family and fetch income. The only difference,
perhaps, would be that during his life time the deceased was
managing the buses, but now, the claimants may have to engage
some competent person to manage the asset, which, in turn, would
require some payment to be made to such a manager. To the
extent of such payment, there would be a depletion in the net
8
income accruing to the claimants out of the asset. Therefore, the
amount required for engaging the service of a manager and the
salary payable to a driver – as it is asserted that the deceased
himself used to drive one of the three buses – would be the loss to
the claimants. In the normal course the claimants are expected to
adduce evidence as to what would be the quantum of depletion in
the income from the abovementioned asset on account of the
abovementioned factors. Unfortunately, no such evidence was led
by the claimants.
12.
In the circumstances, the Judgment under Appeal cannot be
sustained as the finding of the High Court that the claimants lost an
amount of Rs.16,000/- per month due to the death of Vijender
Singh is neither based on any evidence nor the logic adopted by the
High Court for arriving at such a conclusion is right. In the normal
course, the matter should have been remitted to the Tribunal for
further evidence for ascertaining of the basis upon which the
compensation is to be determined. But having regard to the fact
that the accident occurred a decade ago, we do not propose to
remit the matter for further evidence.
13.
The High Court opined that the deceased would have
contributed an amount of Rs.16,000/- per month to the
dependents, whereas the Tribunal opined that the deceased would
have contributed an amount of Rs.5,000/-. Both the Courts below
proceeded to arrive at the abovementioned amounts on the basis
9
that as a driver of one of the buses, he was getting a salary of
Rs.3,900/- per month. In the circumstances, making a reasonable
conjecture that somebody to be employed for the purpose of
managing the business of the three mini-buses, would certainly
demand a higher salary than a driver, we think it reasonable to
notionally fix the salary of such manager at Rs.10,000/- per month.
The said amount coupled with the salary of one driver, i.e.,
Rs.3,900/- would be the loss sustained by the family from the
income arising out of the asset. Computed on the basis of the said
figure and applying the same multiplier of 16 which was applied by
both the courts below, the amount of compensation payable to the
claimants would be:
13,900 x 12 x 16 = Rs.26,68,800/-
14.
The Judgment under Appeal shall stand modified accordingly
and remain unaltered in all other respects. Appeal stands disposed
of.
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1. Respondent was appointed as a Lower Division Clerk in the Public
Works Department on 25.9.1971. He was promoted as Upper Division
Clerk on 1.1.1979.
2. A departmental proceeding was initiated against him. He was placed
under suspension by an order dated 4.9.1982. In the said order of
suspension, it was clearly stipulated that subsistence allowance would be
paid to him in terms of Rule 53 of the Fundamental Rules. On or about
19.6.1982, he was transferred from Katni to Barhi. He did not join at Barhi
after the order of suspension was passed. It appears that a communication
was issued to him on 5.10.1983 asking him to collect the subsistence
allowance stating :
\023You are suspended by the Superintending
Engineer PWD (B&R) Jabalpur Circle, Jabalpur
vide order No.1164/E-11-19 of 74 dated 4.9.82 and
suspension order was sent to you, but you have
refused to take it.
(2) Charge sheet was issued by SEJC vide
No.2067/E-11-19 of 74 dated 16.10.82, and sent
through peon and 2 sub-Engineer of this Division,
but you have refused to take it.
(3) Executive Engineer, PWD (E/M) Dn.
Jabalpur Enquiry officer of your D.E. case have
served the notice for facing the DE and attending
their office, but you have refused to take it.
Please arrange to take the above letters from
their officer and produced to the undersigned, so
that further action, for sanction of suspension
allowance and other dues, can be taken by this
officer.
Please also explain for your not joining in
Barhi Sub Division with Head Quarters at Barhi
after suspension & why your absence from Barhi
should not be considered as willful absence from
Head quarters and action taken accordingly.\024
3. For a few days, namely, on 2.11.1983, 22.11.1983, 9.12.1983 and
20.1.1984, he took part in the departmental proceedings. On those days,
some witnesses on behalf of the department were examined and cross-
examined. But on 24.2.1984, he absented himself. A telegram was sent to
him asking him to submit his list of witnesses and defence on 12.3.1984. He
did not comply therewith. He also did not take part in the departmental
proceedings on 29.3.1984. Another chance was given to him to appear
before the enquiry officer on 19.4.1984 but even on the said date he was not
present. He although was present on 5.5.1984, but did not take part in the
hearing in the said proceeding stating that he had filed an appeal before this
Court.
We may place on record that neither any number has been put in the
said purported S.L.P. nor the same was registered, although according to the
respondent, who had appeared in person before us, the said SLP was still
pending.
4. On subsequent dates, he absented himself and, thus, did not take part
in the enquiry proceedings. Out of 18 dates fixed for hearing, the respondent
was present only on five days. In the aforementioned situation, an ex parte
departmental proceeding was held wherein he was found guilty of the
charges levelled against him. We may also place on record that he collected
his subsistence allowance for the period 4.9.1982 to 20.9.1982 in January
1985 and thereafter payment till September 1984 was made in February
1987. His services, however, were terminated by an order dated 28.5.1985.
The amount of subsistence allowance of the respondent was raised from
50% to 75% on 14.6.1985.
5. He preferred an appeal thereagainst which was dismissed by the Chief
Engineer being the appellate authority on 15.11.1999.
6. An original application was filed by him before the State
Administrative Tribunal wherein, inter alia, a question in regard to non-
payment of subsistence allowance was raised. The Tribunal in its order
opined :
\023Therefore, the applicant himself is responsible for
delayed payment of the subsistence allowance, not
the respondents.\024
7. Other contentions raised by him before the Tribunal were also not
accepted. The Tribunal held that the conclusion of the enquiry officer being
based on evidence produced in the departmental enquiry, no case has been
made out for interference with the order of the Disciplinary Authority. The
original application was, therefore, dismissed.
8. On a writ petition preferred by the appellant thereagainst before the
High Court of judicature at Madhya Pradesh at Jabalpur which was marked
as Writ Petition No.1497 of 2002, a Division Bench of the High Court,
however, held that non-payment of subsistence allowance amounted to
violation of principles of natural justice, stating :
\023The Tribunal dismissed the application on the
ground that the Tribunal or Court are not the
appellate forum to review the punishment.
However, this fact cannot be marginalized and
blinked away because it goes to the root of the
matter and it has nexus with the principles of
natural justice, that unless and until subsistence
allowance is paid to the delinquent employee in
proper time, how he could take proper steps in
defending his case in the departmental enquiry. In
the present case, the period during which the
subsistence allowance was not paid was quite long
which is 4.9.1982 to 13.11.1984.
On the basis of the aforesaid premised reasons, we
set aside the order passed by the Tribunal as well
as the order terminating the services of the
petitioner passed by the authority. The petitioner
is hereby directed to be reinstated. However,
looking to the entire facts and surrounding
circumstances, we do not think it proper to award
any back wages.\024
9. Ms. Vibha Datta Makhija, learned counsel appearing on behalf of the
State, in support of this appeal would submit that the respondent having not
shown any prejudice in regard to non-payment of the subsistence allowance,
the High Court committed a serious error in passing the impugned judgment.
10. Respondent who appeared in person, on the other hand, contended
that non-payment of subsistence allowance violates the right to life of a
person as contained in Article 21 of the Constitution of India and in that
view of the matter, it was obligatory on the part of the appellant herein to
pay the said allowance.
11. Rule 53 of the Madhya Pradesh Fundamental Rules provides that
subsistence allowance should be paid to an employee who has been placed
under suspension. Payment of inadequate quantum of subsistence allowance
has been adversely commented by this Court [See <cite>O.P. Gupta v. Union of
India & Ors. [AIR 1987 SC 2257]</cite>.
12. It is, thus, not in dispute that all facilities for receipt of payment of
subsistence allowance must be given to the delinquent officer.
13. An almost identical question in regard to payment of subsistence
allowance albeit in a different fact situation came up before this Court in
<cite>Jagdamba Prasad Shukla v. State of U.P. & Ors. [(2000) 7 SCC 90]</cite> wherein
it was opined :
\0236. It is evident from the record that the High
Court is not right in observing that the ground
sought to be urged was not taken in the claim
petition or in the writ petition. In fact, the High
Court in the latter part of the judgment observes
that :
\023for the first time, the petitioner has taken
the ground in this writ petition that he could
not attend the departmental proceedings due
to financial crunch as he was not paid his
subsistence allowance\024.
A perusal of the record shows that the contention
urged before the High Court and again before us,
was also raised before the U.P. Public Service
Tribunal and even earlier before the authorities.
The U.P. Public Service Tribunal considered it and
on the facts of the case, the Tribunal held that :
\023Therefore, those rulings where person was
unable to attend the enquiry for non-
payment of subsistence allowance, resulting
in inquiry being vitiated will not be
applicable.\024
Apart from it, in reply dated 22-1-1979 sent to the
show-cause notice, the appellant specifically stated
that he has not been paid his pay and suspension
allowance which cannot be withheld and as such
how could he be expected to reach Gorakhpur or
elsewhere due to shortage of funds. He further
stated that :
\023the applicant has requested a number of
times for drawing his pay and suspension
allowance, but the same could not be drawn
and sent to the applicant which was a serious
handicap to appear anywhere even if he so
preferred during illness and even against the
recommendations of his medical attendant\024.
The request of the appellant for payment of
subsistence allowance is also contained in his letter
dated 31-3-1978 sent to the Superintendent of
Police, Railways, Gorakhpur Section, Gorakhpur.
The said letter also contains the address of the
appellant. The address of the appellant is in fact
contained on various communications sent by him
to the respondents. It is curious that the
respondents could serve all other communications
including the show-cause notice to the appellant
but insofar as the payment of subsistence
allowance is concerned, the plea taken is that the
appellant did not intimate his address and,
therefore, the amount could not be sent. Thus, it is
evident that despite repeated requests, the
subsistence allowance was not paid to the
appellant from the date of suspension till removal.
It is also evident that the appellant had expressed
difficulty in reaching the place of inquiry due to
shortage of funds.
8. The payment of subsistence allowance, in
accordance with the Rules, to an employee under
suspension is not a bounty. It is a right. An
employee is entitled to be paid the subsistence
allowance. No justifiable ground has been made
out for non-payment of the subsistence allowance
all through the period of suspension i.e. from
suspension till removal. One of the reasons for not
appearing in inquiry as intimated to the authorities
was the financial crunch on account of non-
payment of subsistence allowance and the other
was the illness of the appellant. The appellant in
reply to the show-cause notice stated that even if
he was to appear in an inquiry against medical
advice, he was unable to appear for want of funds
on account of non-payment of subsistence
allowance. It is a clear case of breach of principles
of natural justice on account of the denial of
reasonable opportunity to the appellant to defend
himself in the departmental enquiry. Thus, the
departmental enquiry and the consequent order of
removal from service are quashed.\024
14. We may, however, notice that in <cite>Indra Bhanu Gaur v. Committee,
Management of M.M. Degree College & Ors. [(2004) 1 SCC 281]</cite>, a Bench
of this Court opined that when an opportunity had been granted to the
delinquent officer to take the subsistence allowance, it must be shown that
because of non-payment thereof, he was not in a position to participate in the
proceedings or that any other prejudice in effectively defending the
proceedings was caused to him.
15. Yet again, in <cite>U.P. State Textile Corpn. Ltd. v. P.C. Chaturvedi,(2005)
8 SCC 211</cite>, it was held :
\023Rule 41 provides that the subsistence allowance is
payable only when the employee, if required,
presents himself every day at the place of work.
Obviously, for establishing that the employee had
presented himself at the place of work, the
authorities had clearly stipulated a condition that
the attendance register was to be signed. No
explanation was offered by Respondent 1
employee as to why he did not sign the register. It
cannot be lightly brushed aside as technical and/or
inconsequential. As admittedly, Respondent 1
employee had not signed the attendance register
even though specifically required in the order of
suspension, the High Court was not justified in
coming to a conclusion that the non-signing was
not consequential or a bona fide lapse. It is also to
be noted that at various points of time the
employer informed Respondent 1 employee about
the consequences of his not signing the attendance
register as stipulated in the order of suspension.\024
16. The High Court, in our opinion, committed a serious error in holding
that the question of prejudice is irrelevant in so far as it misread and
misinterpreted <cite>Jagdamba Prasad Shukla (supra)</cite>. No law in absolute terms in
this connection was laid down therein. The relief was granted to the
appellant having regard to the fact situation obtaining therein. It was found
as of fact that no subsistence allowance, had been given. It was not
established that communication in relation to subsistence allowance was, in
fact, served upon the appellant therein and despite repeated requests,
subsistence allowance was not paid. The fact that the Court therein opined
that no justifiable ground has been made for non-payment of the subsistence
allowance all through the period of suspension till removal, may, itself be a
ground for arriving at the conclusion that the delinquent officer was
suffering from financial crunch on account thereof as also his illness.
17. The High Court, therefore, in our opinion, was required to arrive at a
correct finding of fact so as to enable it to pose unto itself the right question
for arriving at a right decision.
18. Respondent, indisputably, has been found guilty of commission of
misconduct. He, however, rightly or wrongly carried an impression that the
writ petition filed by him before this Court presumably by sending a letter to
the Chief Justice has been entertained. But, evidently, neither no such letter
was received nor the same had been entertained by this Court.
A finding of fact has been arrived at by the Tribunal that the
respondent himself was to thank himself for non-receipt of subsistence
allowance. It was held that the appellant had taken all possible steps for
disbursement of subsistence allowance.
19. We, therefore, are of the opinion that in the peculiar facts and
circumstances of the case, interest of justice shall be subserved if the
impugned judgment is set aside and the matter is remitted to the High Court
for consideration thereof afresh. The High Court may look into the records
of the case so as to enable it to arrive at a decision whether non-payment of
subsistence allowance caused any prejudice to the respondent in the event it
intends to interfere with the finding of fact arrived at by the Tribunal that the
respondent himself was responsible therefor.
20. However, we direct that in the peculiar facts and circumstances of this
case, the State should pay a sum of Rs.50,000/- (Rupees fifty thousand only)
to the respondent by way of litigation costs. The State shall also place
before the High Court all relevant records. We would request the High
Court to consider the desirability of disposing of the matter expeditiously.
21. The appeal is allowed to the aforesaid extent and with the aforesaid
directions and observations.
|
2.
The appellants are before this Court, aggrieved
by the judgment of the Division Bench of the High
Court remitting an industrial dispute to the
Industrial Tribunal. There are two set of references
before the Industrial Tribunal. In Civil Appeal
No......... @ SLP(c) No.23494/2012, the reference is
as follows:-
1
“1. Whether the 22 contract labour as per
Annexure 'A' are performing permanent and
perennial nature of job in the establishment of
ONGC Ltd. Sibsagar and are entitled for regular
employment in ONGC if so, to what relief they are
entitled?
Whether the contract labour as per Annexure
2.
'B' are performing same or similar nature of work
as being performed by any of the regular employee
of ONGC Ltd. Sibsagar and are entitled for wages
and the benefits as is admissible to other
contract labour under Rule 25(2)(v)(a) of the
C.L. (RIA) cum Central Rules, 1971? If so, to
what relief they are entitled?”
In Civil Appeal No......... @ SLP(c)
3.
No.23495/2012, the reference reads as follows:-
“Whether the claim of ONGC Contractual Mazdoor
Sangha Lakwa regarding regularization of services
of their members (who are working as contractual
workers) in ONGC Ltd. at Lakwa is justified? If
so, to what relief, the workmen are entitled?”
4.
The Industrial Tribunal passed an award directing
regularization of the workers. The same was upheld
by the learned Single Judge.
5.
However, the Division Bench took the view that
the matter needs a fresh look by the Industrial
Tribunal in the light of the decision in <cite>Steel
Authority of India Ltd. & Ors. v. National Union
Waterfront Workers & Ors., reported in (2001)</cite> 7
2
Aggrieved, the workmen represented by their
SCC 1. The Bench took the view that the Industrial
Tribunal needs to decide as to whether there was a
genuine contract.
6.
Associations are before this Court.
7.
We have heard Mr. Pravir Choudhury, learned
counsel appearing for the appellant, Mr. J.P. Cama,
learned senior counsel appearing for the ONGC and Ms.
Kiran Suri, learned senior counsel appearing for the
Union of India, assisted by other counsel.
8.
On going through the award passed by the
Industrial Tribunal and detailed analysis made by the
learned Single Judge, we find that there is hardly
any scope for the Industrial Tribunal to adjudicate
on any further aspect. All relevant aspects have
been considered meticulously by the learned Single
Judge. Being a writ proceedings, the Division Bench
was called upon, in the intra court appeal, primarily
and mostly to consider the correctness or otherwise
of the view taken by the learned Single Judge.
Hence, in our view, the Division Bench needs to
consider the appeal(s) on merits by deciding on the
correctness of the judgment of the learned Single
Judge, instead of remitting the matter to the
Tribunal.
9.
In that view of the matter, we set aside the
impugned judgments of the Division Bench and remit
the matters to the High Court. We request the
Division Bench to dispose of the writ appeals on
merits expeditiously, preferably within six months
from today.
10. The appeals are, accordingly, disposed of.
3
11. Pending applications, if any, shall stand
disposed of.
12. There shall be no orders as to costs.
|
1.
The petitioner, who is an Advocate practicing in this Court, has filed
the writ petition under Article 32 of the Constitution of India against various
officers of the Registry of this Court and the Union of India. Prayer has been
made to issue an appropriate Writ, Order or Direction in the nature of
Mandamus directing the respondents not to give preference to the cases filed
by influential lawyers/ petitioners, law firms, etc. Prayer has been made to
direct the respondents to give equal treatment to the cases filed by ordinary
lawyers/ petitioners and not to point out unnecessary defects, refund the
excess court fee and other charges, and not to tag the cases without order or
direction of the Court with other cases. A prayer has also been made to
direct the Secretary General of this Court to take action against the erring
officers for their involvement in the listing, clearing, and bench hunting.
2
2.
It is averred in the petition that equal treatment has not been given to
the ordinary lawyers/ litigants. They favour some law firms or Advocates for
reasons best known to them.
3.
The petitioner's first instance is that a Writ Petition (Civil) D. No.10951
of 2020 was filed by him on 16.4.2020. The Registry pointed out three
defects, i.e. (1) Court Fee of Rs.530 was not paid, (2) Documents to be placed
as per index, and (3) Details given in index were incomplete and annexures
were not filed, matter to be rechecked. The petitioner had clarified vide
email dated 18.4.2020 that he had paid the court fee of Rs.730/ and there
was no annexure with the petition. However, the petitioner was forced to pay
more court fees to get the matter listed. Despite the letter of urgency, the
Registry failed to register and list the writ petition. The petitioner requested
the Secretary, Supreme Court Bar Association, about not listing the writ
petition. On 27.4.2020, the writ petition was listed before the Court.
4.
The second instance given by the petitioner is that a Writ Petition
(Civil) D.No.11236 of 2020 was filed on 12.5.2020, which has not been listed
by the Registry till today. He was informed that there were no defects in the
writ petition, but a copy of the writ petition was missing. After that, no
update was given by the Registry.
5.
The third instance given is about Writ Petition (Civil) No.522 of 2020
(Diary No.11552 of 2020) filed by the petitioner on 20.05.2020. The Dealing
3
Assistant pointed out defects on 26.5.2020. The defects were pointed out by
the Dealing Assistant after six days of filing, though the application for
urgency was filed in the petition. The following note was made by the
Registry:
“MATTER NEEDS TO BE RECHECK AS WHOLE INDEX IS
BLANK, PETITION, AFFIDAVIT, VAKALATNAMA, MEMO OF
APPEARANCE AND APPLICATION ALL ARE UNSIGNED AND
DEFICIT COURT FEE ETC.”
The petitioner clarified that the signed documents were already
uploaded. The matter was urgent, and he had uploaded them again along
with signed documents on 26.5.2020. Again the defects were pointed out on
29.5.2020 by the Dealing Assistant to the following effect:
“APPLICATION IS NOT PROPER AS HEADING NOT TALLY
WITH INDEX AND BE SPECIFIC ABOUT THE SUBJECT AND
PRAYER OF APPLICATION.”
The petitioner cured the defects on 29.5.2020. After that, the Dealing
Assistant did not recheck the matter. On 2.6.2020, the petitioner made a
call and requested the Branch Officer concerned to direct the Dealing
Assistant to recheck the matter. On 2.6.2020, the matter was rechecked
and numbered as Diary No.11552 of 2020. The case was verified on
6.6.2020 and listed for 6.7.2020 (computergenerated) which would make
the case infructuous. The application for urgency was not considered. The
petitioner was informed that the case was likely to be listed on 6.7.2020. He
sent an email about the urgency. The Registry was not willing to list the
4
Diary No.11552 of 2020 despite the application for urgency. Hence, the writ
petition has been filed.
6.
It is averred that on 23.4.2020, W.P. Diary No.11006 of 2020 titled as
<cite>Arnab Ranjan Goswami v. UOI</cite> was filed at 8.07 p.m. without annexure. The
Registry had chosen not to point out any defects, and a special
supplementary list was uploaded on the same day. The category was not
specified in the notification to be heard during a nationwide lockdown. No
procedure was followed by the Registry for urgent hearing during the
lockdown. The petitioner made a complaint to SecretaryGeneral against
illegal activities of the Registry but the same is without response.
7.
We have heard the petitioner. The present writ petition was initially
listed for 18.6.2020, however on 17.6.2020; a letter was circulated by the
petitioner that he was under the impression that Registry would call the
petitioner to interact with the Registrar in order to appear and argue in
person as per the procedure. Still, it was not intimated to the petitioner that
Registry exempted the petitioner, and there was no need to interact with the
Registrar. The petitioner was out of Delhi due to prearrangement and did
not carry a soft or hard copy of the writ petition to argue the matter. The
petitioner also prayed for time of six weeks to file annexure/ evidence, i.e.,
complaint/ reminder concerning detagging of Writ, delay in checking and
rechecking the matters, application, and reply under RTI regarding de
tagging, proof of excess court fee, etc. to prove his submissions before this
Court. The prayer to adjourn the case was declined, and the case was listed
5
for hearing on 19.6.2020. The petitioner was heard in person. He repeated
the facts about the discrimination being meted out by the Registry of not
listing the cases promptly.
8.
We have also perused the files of the cases. Writ Petition (C) D.
No.10951 of 2020 was filed on 17.4.2020 during the nationwide lockdown,
under Article 32 of the Constitution of India with a prayer for the One Nation
One Ration Card Scheme. It was heard and decided on 27.4.2020. The
Union of India was directed to examine whether it was feasible for it to
implement the Scheme at this stage or not and take appropriate decision in
this regard, keeping in view the present circumstances. Accordingly, the
writ petition was disposed of.
9.
Although defects were noted, Writ Petition (C) Diary No.10951 of 2020
was listed, heard, and finally decided on 27.4.2020. It was filed on
17.4.2020. 18th and 19th April 2020 were the holidays. There were only five
working days, and during the nationwide lockdown, the court functioning
was minimal. The case was mentioned in the cause list on 26.4.2020 to be
listed on 27.4.2020. Thus, it could not be said that there was delay much
less inordinate one by the officials of the Registry in listing the matter
mentioned above.
10. Concerning the second instance, i.e., Diary No.11236 of 2020, which
was filed by petitioner on 9.5.2020, the Registry has noted several defects on
14.5.2020. The petition is still lying with defects.
6
11. Concerning the third instance i.e., Writ Petition No.522 of 2020 (D.
No.11552 of 2020), the same was filed on 20.5.2020. Again, a defective
petition and defects were pointed out by the Registry on 26.5.2020 that the
whole index was blank. Petition, Affidavit, Vakalatnama, Memo of
Appearance, and Application were all unsigned with a deficit court fee, etc.
The petitioner removed the defects. However, other defects were caused,
such as the application filed was not proper as heading did not tally with the
index, and specific subjects and prayers were not mentioned. The defects
were recured, and the petition was refiled on 3.6.2020. The matter was
processed and listed on 9.6.2020 and was heard and dismissed on
12.6.2020 as other matters on the similar issues were pending as such the
matter was not considered to be necessary. The petitioner has not disclosed
about listing of the case for 12.6.2020, and its decision and averred that the
computergenerated date was 6.7.2020. The Registry did not follow the
computergenerated date, and the case was listed for 12.6.2020 on which it
was dismissed. The petitioner himself was responsible for 1213 days of
delay in removing the defects.
12. As to case of <cite>Arnab Goswami</cite>, it was listed urgently in view of order of
competent authority. It pertained to liberty and freedom of media.
13.
In the aforesaid circumstances, considering the ongoing pandemic
caused by COVID19, the Registry of this Court is working with less
strength, and because of the facts described above and circumstances, we
find that there was no justification for the petitioner to allege discrimination
7
visàvis to him and to favour any particular individual. The defects were
there in all the three cases filed by the petitioner.
14.
The petitioner has filed this writ application in a hurry. When it was
listed, he circulated a letter to the effect that, as per procedure, he expected
that he would be called for interaction by Registrar of this Court to find out
his fitness whether he could argue a case in person. The petitioner ought to
know that he is an Advocate of this Court and argues the matter in this
Court. As such, it was not necessary to summon him for adjudging his
capability as to whether he could argue the case. Be that as it may.
Circulating such a letter was not appropriate at his stance and why he
doubted his ability to argue. There was no justification to entertain this kind
of apprehension in mind. He ought to have been careful in circulating such
a letter seeking a wholly unjustified adjournment.
15.
In the letter circulated by him, it was further stated that he wanted to
collect the evidence and to file it, and for that purpose, he prayed for six
weeks’ time. The conduct indicates that the petitioner was careless and not
serious while he made the allegations. He filed writ application without due
inquiries, and without collecting the requisite material. Such conduct was
least expected of an officer of this Court. Petitioner ought to have been
careful before cast of unnecessary aspersions on the Registry and staff of
this Court.
16.
The petition as filed could not be said to be maintainable. The
8
petitioner has impleaded the Secretary General, various Registrars, and
officers of the Registry, SCBA, and Union of India in his writ application. In
contrast, Writ is filed against this Court itself. He ought to have impleaded
the Supreme Court of India in the Writ application through Secretary
General. The omission indicates careless conduct on the part of the
petitioner. The petition was filed in undue haste.
17. We take judicial notice of the fact that a large number of petitions are
filed which are defective; still, the insistence is made to list them and
mention is made that they should be listed urgently. It happens in a large
number of matters, and unnecessary pressure is put upon the Assistants
dealing with the cases. We find due to mistakes/ carelessness when
petitions with defects are filed, it should not be expected that they should be
listed instantly. To err is human and there can be an error on the part of the
Dealing Assistants too. This is too much to expect perfection from them,
particularly when they are working to their maximum capacity even during
the pandemic. The cases are being listed. It could not be said that there
was an inordinate delay in listing the matters in view of the defects. The
Court functioned during the lockdown, the cases were scanned and listed by
the Registry. The staff of this Court is working despite danger to their life
and safety caused due to pandemic, and several of the Dealing Staff, as well
as Officers, have suffered due to Covid19. During such a hard time, it was
not expected of the petitioner who is an officer of this Court to file such a
petition to demoralize the Registry of this Court instead of recognizing the
9
task undertaken by them even during pandemic and lockdown period.
18. We see, in general, it has become a widespread practice to blame the
Registry for no good reasons. To err is human, as many petitions are filed
with defects, and defects are not cured for years together. A large number of
such cases were listed in the recent past before the Court for removal of
defects which were pending for years. In such situation, when the pandemic
is going on, baseless and reckless allegations are made against the Registry
of this Court, which is part and parcel of the judicial system. We take
judicial notice of the fact that such evil is also spreading in the various High
Courts, and Registry is blamed unnecessarily for no good reasons. It is to be
remembered by worthy lawyers that they are the part of the judicial system;
they are officers of the Court and are a class apart in the society. Regarding
exemplary behavior from members of noble profession in <cite>R. Muthukrishnan
v. The Registrar General of the High Court of Judicature at Madras, Writ
Petition (C) No.612 of 2016</cite> the Court observed concerning the expectation
from gentlemen lawyers, thus:
“23.
The role of Lawyer is indispensable in the system of
delivery of justice. He is bound by the professional ethics and to
maintain the high standard. His duty is to the court to his own client,
to the opposite side, and to maintain the respect of opposite party
counsel also. What may be proper to others in the society, may be
improper for him to do as he belongs to a respected intellectual class
of the society and a member of the noble profession, the expectation
from him is higher. Advocates are treated with respect in society.
People repose immense faith in the judiciary and judicial system and
the first person who deals with them is a lawyer. Litigants repose faith
in a lawyer and share with them privileged information. They put
their signatures wherever asked by a Lawyer. An advocate is supposed
to protect their rights and to ensure that untainted justice delivered to
his cause.
10
24. The high values of the noble profession have to be protected by all
concerned at all costs and in all the circumstances cannot be forgotten
even by the youngsters in the fight of survival in formative years. The
nobility of legal profession requires an Advocate to remember that he
is not over attached to any case as Advocate does not win or lose a
case, real recipient of justice is behind the curtain, who is at the
receiving end. As a matter of fact, we do not give to a litigant anything
except recognizing his rights. A litigant has a right to be impartially
advised by a lawyer. Advocates are not supposed to be money
guzzlers or ambulance chasers. A Lawyer should not expect any
favour from the Judge and should not involve by any means in
influencing the fair decision-making process. It is his duty to master
the facts and the law and submit the same precisely in the Court, his
duty is not to waste the Courts' time.
25. It is said by Alexander Cockburn that “the weapon of the advocate
is the sword of a soldier, not the dagger of the assassin”. It is the
ethical duty of lawyers not to expect any favour from a Judge. He
must rely on the precedents, read them carefully and avoid corruption
and collusion of any kind, not to make false pleadings and avoid
twisting of facts. In a profession, everything cannot be said to be fair
even in the struggle for survival.
The ethical standard is
uncompromisable. Honesty, dedication and hard work is the only
source towards perfection. An Advocate conduct is supposed to be
exemplary. In case an Advocate causes disrepute of the Judges or his
colleagues or involves himself in misconduct, that is the most sinister
and damaging act which can be done to the entire legal system. Such
a person is definitely deadwood and deserves to be chopped off.
x x x
40. The Bar Council has the power to discipline lawyers and maintain
nobility of profession and that power imposes great responsibility.
The Court has the power of contempt and that lethal power too
accompanies with greater responsibility. Contempt is a weapon like
Brahmasatra to be used sparingly to remain effective. At the same
time, a Judge has to guard the dignity of the Court and take action in
contempt and in case of necessity to impose appropriate exemplary
punishment too. A lawyer is supposed to be governed by professional
ethics, professional etiquette and professional ethos which are a
habitual mode of conduct. He has to perform himself with elegance,
dignity and decency. He has to bear himself at all times and observe
himself in a manner befitting as an officer of the Court. He is a
privileged member of the community and a gentleman. He has to
mainsail with honesty and sail with the oar of hard word, then his boat
is bound to reach to the bank. He has to be honest, courageous,
eloquent, industrious, witty and judgmental.
11
76. Soul searching is absolutely necessary and the blame game and
maligning must stop forthwith. Confidence and reverence and positive
thinking is the only way. It is pious hope that the Bar Council would
improve upon the function of its disciplinary committees so as to
make the system more accountable, publish performance audit on the
disciplinary side of various bar councils. The same should be made
public. The Bar Council of India under its supervisory control can
implement good ideas as always done by it and would not lag behind
in cleaning process so badly required. It is to make the profession
more noble and it is absolutely necessary to remove the black sheeps
from the profession to preserve the rich ideals of Bar and on which it
struggled for the values of freedom. It is basically not for the Court to
control the Bar. It is the statutory duty of Bar to make it more noble
and also to protect the Judges and the legal system, not to destroy the
Bar itself by inaction and the system which is important pillar of
democracy.”
(emphasis supplied)
19.
In <cite>Kamini Jaiswal v. Union of India & Anr. (2018) 1 SCC 156</cite>, it was
observed:
“24.…… In Charan Lal Sahu v. Union of India1, this Court has
observed that in a petition filed under Article 32 in the form of PIL
attempt of mudslinging against the advocates, Supreme Court and also
against the other constitutional institutions indulged in by an advocate
in a careless manner, meaningless and as contradictory pleadings,
clumsy allegations, contempt was ordered to be drawn. The Registry
was directed not to entertain any PIL petition of the petitioner in
future.”
25. <cite>In R.K. Anand v. Delhi High Court2</cite> this Court observed that there
could be ways in which conduct and action of malefactor was
professional misconduct. The purity of the court proceedings has to be
maintained. The Court does not only have the right but also an
obligation to protect itself and can bar the malefactor from appearing
before the Court for an appropriate period of time. There is a duty cast
upon an advocate to protect the dignity of this Court not to scandalize
the very institution as observed in the said decision.”
20. We expect members of the noble fraternity to respect themselves first.
They are an intellectual class of the society. What may be proper for others
may still be improper for them, the expectations from them is to be
1 (1988) 3 SCC 255
2 (2009) 8 SCC 106
12
exemplary to the entire society, then only the dignity of noble profession and
judicial system can be protected. The Registry is nothing but an arm of this
Court and an extension of its dignity. Bar is equally respected and
responsible part of the integral system, Registry is part and parcel of the
system, and the system has to work in tandem and mutual reverence. We
also expect from the Registry to work efficiently and effectively. At the same
time, it is expected of the lawyers also to remove the defects effectively and
not to unnecessarily cast aspersions on the system.
21.
Thus, we find no ground to entertain the petition. We expect the
petitioner to be more careful and live up to the dignity of the profession
which it enjoys.
22. We dismiss the petition and impose cost of Rs.100/ (Rupees One
Hundred only) on the petitioner as a token to remind his responsibility
towards noble profession and that he ought not to have preferred such a
petition.
|
The instant petition is directed against the order dated 23rd
July, 2020 passed by the first respondent relegating the
petitioner after serving as member of the Bihar Administrative
service for almost 15 years to Bihar Education Service without
affording an opportunity of hearing to him in alleged
compliance of the order of this Court stated 23rd October 2019
in Civil Appeal No. 3307 of 2015 left with no option with the
petitioner to approach this Court for redressal of his grievance.
1
2.
The brief facts of the case led to filing of this petition are
that Bihar Public Service Commission (hereinafter referred to
as the “Commission”) published an advertisement dated 29th
December, 2001 in various newspapers inviting applications
from eligible candidates for conducting the 45th Combined
Competitive Examination. The petitioner had participated in
the selection process and after being finally selected and as per
his placement in the order of merit, was appointed into Bihar
Administrative Service vide order dated 21st March, 2005 and
after successful period of probation, became a substantive
member of Bihar Administrative Service (BAS).
3.
Shri Baldeo Choudhary (respondent no. 5) had also
participated along with the petitioner in the 45th Combined
Competitive Examination held by the Commission pursuant to
an advertisement dated 29th December 2001, could not
succeeded in fulfilling his wishes to become a member of Bihar
Administrative Service. He challenged his unsuitability held by
2
the Commission after almost four years of the process attain
finality by filing a writ petition before the High Court of Patna
in the year 2008 and finally succeeded in persuading the
learned Single Judge vide judgment dated 19th March, 2012 in
holding that an error has been committed by the Commission
in evaluation of his answer script of PaperII General Studies.
It may be noted that none of the selected candidates including
the present petitioner who on their selection, being appointed
and became member of Bihar Administrative Service, were
impleaded as a party to the writ petition.
4.
The order of the learned Single Judge dated 19th March,
2012 was the subject matter of challenge in Letters Patent
Appeal filed at the instance of the Commission which came to
be decided vide judgment dated 29th November 2012 wherein
the Division Bench of the High Court of Patna moulded the
relief granted by the learned Single Judge under its order dated
19th March, 2012. The relevant extract is reproduced
hereunder:
3
“We are alive that the writ petitioner has
approached the Court after a considerable delay i.e. by
the time the writ petition was filed, the result was
declared and all appointments were made. We are,
therefore, not inclined to grant relief to the writ petitioner
with retrospective effect.
In the event after declaring the result as directed
by the learned single judge, the writ petitioner, on
account of his placement in the select list becomes
entitled to appointment in a particular service: the writ
petitioner will be appointed as such: but the writ
petitioner will not be entitled to retrospective benefit. In
other words, the writ petitioner will take seniority and
other service benefits from the date of his appointment
and not from any earlier date.”
5.
The order of the Division Bench became the subject
matter of challenge at the instance of the Commission before
this Court in Civil Appeal No. 3307 of 2015 and while
dismissing the appeal, this Court in its order dated 23rd
October, 2019 ruled out the apprehension exhibited by the
Commission and the extract of the order is reproduced
hereunder:
“It is brought to the notice of the Court by learned
counsel for the respondent that had the respondent been
selected in the examination in question, he would have
been ranked second. The same is, however, disputed by
learned counsel appearing for the Commission. Be that
as it may, it is brought to the notice of this Court that
the respondent is already working in the Sales Tax
Department of the State. Having regard to the totality of
facts and circumstances of the case, interest of justice
would be met in case the respondent is declared qualified
4
to be appointed from the date of the judgment of the
Division Bench, i.e. from 29th November, 2012. From
that day onwards, the respondent should be given
notional benefits of service such as continuity of service,
increments etc. Since the respondent is already in
service, he is not awarded any salary. Since, now he
stands qualified for appointment, the State shall
consider the respondent’s case for appointment on a
suitable place and pay him salary. The process shall be
completed within a period of three months from this day
and the salary will be paid from the date of his joining
the duty.”
The bare reading of the order passed by the Division Bench
which has been confirmed by this Court with a clarification
under its order dated 23rd October, 2019 remained restricted to
revise the placement of original writ petitioner (Baldeo
Choudhary) who was aggrieved of his own rights in reference to
the alleged error which had been committed in proper
evaluation of his answer script for his placement in the select
list published by the Commission pursuant to which the
appointments were made in reference to an advertisement
dated 29th December, 2001 and this Court taking note of the
apprehension which was intended by the Commission, made a
clarification that the appointment pursuant to a judgment of
the Division Bench of the High Court has to be offered to the
writ petitioner (Baldeo Choudhary) w.e.f. 29th November 2012
5
(i.e. date of Judgment of the Division Bench) with notional
benefits of service such as continuity of service, increment, etc.
as he was already in service, no salary for the interregnum
period be awarded to him.
6.
The Commission under the guise of the order of this
Court dated 23rd October, 2019 revised the recommendations of
45th Combined Competitive Examination held pursuant to an
advertisement dated 29th December, 2001 and forwarded it to
the Government of Bihar, Patna vide letter dated 4th May, 2020
while placing the original writ petitioner (Baldeo Choudhary) in
the revised recommendations at Sl. No. 2 and displacing the
petitioner relegating his placement from Bihar Administrative
Service to Bihar Education Service. In furtherance thereof, the
State Government vide its order dated 23rd July, 2020 relegated
the petitioner to Bihar Education Service on a justification
being tendered that action has been taken in compliance of the
order of this Court dated 23rd October, 2019 which is a subject
matter of challenge at the instance of the petitioner in the
instant proceedings.
6
7.
Learned counsel for the petitioner submits that petitioner
has no demur regarding appointment of Baldeo Choudhary who
has finally succeeded in his own rights on dismissal of the appeal
preferred by the Commission before this Court in Civil Appeal
No.3307 of 2015 but he is aggrieved of relegating his cadre from
Bihar Administrative Service to Bihar Education Service after he
had rendered almost 15 years’ of service who was neither arrayed
as a party to the writ petition nor been heard at any stage, is in
violation of the principles of natural justice and in disregard of
the order of this Court dated 23rd October, 2019.
8.
Learned counsel further submits that this Court under its
order dated 23rd October, 2019 confined consideration for
appointment of Baldeo Choudhary in his own rights w.e.f. 29th
November, 2012 but the directions of this Court have been
completely misread by the authorities and the wholesome
revision of the merit list has been undertaken by the Commission
which was never intended by this Court in its order dated 23rd
7
October, 2019 disturbing the cadre allotment of the persons who
were selected on the recommendation made by the Commission
held pursuant to an advertisement dated 29th December, 2001
and rightly so, since none of them was arrayed as party to the
writ petition nor been heard and further submits that
overturning the select list after 15 years and passing of an order
dated 23rd July, 2020 having adverse civil consequences without
hearing the person is indeed in violation of principles of natural
Justice and such action of the respondents in the given facts and
circumstances at least qua the petitioner is not sustainable in
law.
9.
Per contra, learned counsel for the respondents, while
supporting the order impugned, submits that the commission
has no option but to revise the select list in compliance of the
order of this Court dated 23rd October, 2019 after placing Baldeo
Choudhary at his place in the order of merit and in consequence,
the petitioner being last in the open category in Bihar
Administrative Service,
rightly relegated
from Bihar
Administrative Service to Bihar Education Service vide order
8
dated 23rd July, 2020 and submits that their action being in
compliance of the order of this Court needs no interference.
10. We have heard the learned counsel for the parties and with
their assistance perused the material available on record.
11. This Court was conscious of the fact that although the
Division Bench of the High Court in its judgment dated 29th
November, 2012 moulded the relief confined to the writ petitioner
Baldeo Choudhary as his case is sui generis, disturbing the select
list which was recommended by the Commission of the
candidates who had participated in the 45th Combined
Competitive Examination held pursuant to an advertisement
dated 29th December, 2001 after serving for almost 15 years in
their respective cadre assigned by the State Government will not
be in the interest of justice. But as the Commission had an
apprehension in implementing order of the Division Bench dated
29th November, 2012, this Court ruled out the apprehension and
9
made a further clarification under its order dated 23rd October,
2019.
12.
In the given circumstances, what was required for the
respondents was to place the writ petitioner (Baldeo Choudhary)
at the appropriate place in the select list which was
recommended by the Commission in reference to 45th Combined
Competitive Examination and to be considered for appointment
to a particular service to whom he was suitable as per his revised
placement in the select list with seniority and other notional
benefits of service including continuity of service, increment, etc.,
to which he was entitled for in compliance of the order of this
Court dated 23rd October, 2019.
13. We find justification in what being contended by learned
counsel for the petitioner to hold that relegating the petitioner to
Bihar Education Service after he had rendered 15 years of service
as member of the Bihar Administrative Service entail adverse civil
consequences and indeed the order impugned dated 23rd July,
10
2020 could not have been passed by the respondents without
affording him an opportunity of hearing and is in violation of the
principles of natural justice.
14. The defence which has been tendered by the respondents in
their counter affidavit that impugned action has been taken in
compliance of the order of this Court dated 23rd October, 2019
which in our view is completely misplaced and this Court under
its order dated 23rd October, 2019, left no manner of doubt in its
implementation and there was no justification left for the
Commission to hold an exercise and revise the select list of 45th
Combined Competitive Examination held pursuant to the
advertisement dated 29th December, 2001 and acted upon in
2005 after a lapse of 15 years at the same time the case of Baldeo
Choudhary being sui generis was to be considered for
appointment w.e.f. 29th November, 2012 in terms of the revised
recommendations made by the Commission qua him without
disturbing the cadre/seniority of the persons including the
petitioner in Bihar Administrative Service to which he was
otherwise entitled for in compliance of the order of this Court
11
dated 23rd October, 2019 assigning him seniority and the
consequential benefits etc. w.e.f. 29th November, 2012.
15. The respondents in our view, were not at all justified in
passing of the order impugned dated 23rd July, 2020 which was
neither observed by the Division Bench of the High Court nor
expressed by this Court in its order dated 23rd October, 2019
relegating the petitioner from Bihar Administrative Service to
Bihar Education Service after he had rendered 15 years’ of
substantive service in the cadre of Bihar Administrative Service.
16. Consequently, in our considered view, the writ petition
deserves to succeed and is accordingly allowed and the order
impugned dated 23rd July, 2020 qua the petitioner is hereby
quashed. No costs.
|
2. This appeal, by special leave, has been preferred against the
judgment and order dated 2.1.2007 of Gauhati High Court by which
the appeal preferred by the appellants was disposed of with the
modification that the sentence of five years R.I. and fine of Rs.7,000/-
imposed upon each of the appellants under Section 313 read with
Section 34 IPC by the learned Additional Sessions Judge, Kokrajhar,
was reduced to three years R.I. and fine of Rs.5,000/-.
3. The case of the prosecution, in brief, is that the appellant Hasi
Mohan Barman was having love affair with the first informant PW-1
Haleswari Barman, which subsequently developed into physical
relationship and as a result thereof PW-1 became pregnant. The
villagers put pressure upon Hasi Mohan Barman to marry PW-1
which he declined. He asked PW-1 to abort the child which she
refused to do. Thereafter, in the night of the incident Hasi Mohan
Barman took PW-1 Haleswari Barman to the pharmacy of co-accused
Abinash Biswas, who administered certain injection whereupon PW-1
became unconscious and the child was aborted. She was administered
Saline and the appellant Hasi Mohan Barman kept her at ’Pampghar’
for about nine days wherefrom she was taken to her parents house.
After few days PW-1 lodged an FIR against both the appellants. The
police, after investigation, submitted charge-sheet only against Hasi
Mohan Barman but subsequently co-accused Abinash Biswas was
also summoned under Section 319 Cr.P.C. to face the trial.
4. In the trial PW-1 Haleswari Barman deposed that on the
promise that the appellant No. 1 will marry her they entered into
sexual relationship and as a result whereof she became pregnant.
Thereafter, the appellant No. 1 put pressure upon her to abort the child
but she did not agree. On the night of occurrence the appellant No. 1
along with his brother forcibly took her to the pharmacy of co-accused
Abinash Biswas and she was forcibly administered an injection due to
which she became unconscious. When she regained consciousness
she saw that saline was being administered to her. After some time on
the asking of appellant No. 1 co-accused Abinash Biswas
administered another injection due to which she became unconscious.
When she regained consciousness she found that she had lost her
pregnancy and then she was taken to the house of her parents.
5. PW-4 Dr. Dilip Bhowmik, an Ayurvedic Physician, has
deposed that the appellant Hasi Mohan Barman had brought PW-1 to
his clinic and on examination he had found that PW-1 was running
pregnancy of 4-5 months. As she had some problem he gave some
medicine to her. PW-3 Dr. Rezaul Karim examined PW-1 on
22.3.1995, i.e., more than one month after the abortion and found as
follows: -
"There was active slight bleeding as per vagina. For
confirmation D & E (Dilatation and Evacuation) done
and found placental parts inside the uterine cavity which
is a sign of incomplete abortion i.e. she was pregnant."
6. The High Court, after a thorough examination of the evidence,
has recorded a finding that PW-1 was pregnant through the appellant
Hasi Mohan Barman who wanted PW-1 to abort the child. As PW-1
declined to do so, Hasi Mohan Barman with the help of Abinash
Biswas caused miscarriage of the pregnancy without the consent of
PW-1. The High Court accordingly held that it was established
beyond any shadow of doubt that both the appellants had committed
an offence under Section 313 IPC. The High Court thus maintained
the conviction but reduced the sentence from seven years R.I. and a
fine of Rs.7,000/- to three years R.I. and a fine of Rs.5,000/- of both
the appellants.
7. It appears that during the pendency of the case the complainant
Haleswari Barman married appellant No. 1 Hasi Mohan Barman and
both of them are living as husband and wife. She filed an affidavit
that she had entered into a compromise and wanted the criminal case
pending against her husband Hasi Mohan Barman and the appellant
No. 2 Abinash Biswas to be withdrawn as the entire matter had been
compromised and both PW-1 and the first appellant were living
peacefully as husband and wife. This Court passed an order directing
the learned Additional Sessions Judge to verify the correctness of the
affidavit given by PW-1 Haleswari Barman. The learned Additional
Sessions Judge has sent a report to this Court that PW-1 Haleswari
Barman had verified the affidavit given by her and had deposed about
the correctness of the same, namely, that she and Hasi Mohan Barman
were living peacefully as husband and wife. In view of this
development that PW-1 Haleswari Barman and appellant No. 1 Hasi
Mohan Barman have married and are peacefully and happily living as
husband and wife it has been submitted that the appeal deserves to be
allowed and the conviction of the appellants should be set aside.
8. Section 320 of Code of Criminal Procedure says that the
offences punishable under the sections of the Indian Penal Code (45
of 1860) specified in the first two columns of the table next following
may be compounded by the persons mentioned in the third column of
that table. A perusal of Section 320 will show that the offence under
Section 313 IPC is not compoundable. Therefore, the consent given
by the wife PW-1 or the affidavit filed by her cannot be utilized for
the purpose of recording a finding of acquittal in favour of the accused
appellants.
9. There are some decisions of this Court wherein the factor of
compromise between the accused and the complainant (or injured or
person aggrieved) has been taken into consideration for reducing the
sentence.
10. The first decision on this point was rendered by this Court in
<cite>Ram Pujan and others vs. State of Uttar Pradesh (1973) 2 SCC 456</cite>,
wherein the trial court had convicted the accused under Section 326
IPC which is a non-compoundable offence and had sentenced the
accused to four years R.I. The High Court took into consideration the
compromise between the accused appellant and the injured and
reduced the sentence to two years R.I. This Court, after observing
that the fact of compromise can be taken into account in determining
the quantum of sentence, reduced the sentence to the period already
undergone which was little more than four months and further
imposed a fine of Rs.1500/- on each of the appellants. <cite>Surendra Nath
Mohanty and another vs. State of Orissa (1999) 5 SCC 238</cite> is a
decision of a Bench of three learned Judges. It was observed that in
view of the legislative mandate contained in Section 320 Cr.P.C. an
offence can be compounded only in accordance with the provisions of
the said section. The Court followed the view taken in the case of
<cite>Ram Pujan (supra)</cite> and having regard to the fact that the parties had
compromised and a period of ten years had elapsed from the date of
the incident reduced the sentence of five years R.I. imposed under
Sections 307 and 326 IPC to the period of sentence already undergone
which was three months and also imposed fine of Rs.5,000/-.
11. There are several other decisions of this Court wherein factor of
compromise has been taken into consideration and the sentence has
been reduced mostly to the period already undergone and they are
<cite>Bankat and another vs. State of Maharashtra (2005) 1 SCC 343</cite>,
<cite>Badrilal vs. State of M.P. (2005) 7 SCC 55</cite> and <cite>Jetha Ram and others
vs. State of Rajasthan (2006) 9 SCC 255</cite>.
12. Following the view taken in the above noted cases we are of the
opinion that the complainant and the principal accused having already
married it will be in the interest of justice if the sentence is reduced to
the period already undergone. The appeal is accordingly partly
allowed. The conviction of the appellants under Section 313 IPC is
maintained but the sentence is reduced to the period already
undergone which appears to be about ten months. The fine imposed
upon the appellants is also set aside. The appellants are on bail.
Their sureties and bail bonds are discharged.
|
From the beginning of this year, 2020, the world
including our country is in the grip of a pandemic
known as Novel Coronavirus (COVID-19). On
31.12.2019, a cluster of cases of pneumonia of
unknown cause in the city of Wuhan, Hubei Province in
China was reported to the World Health Organisation
(WHO). This was subsequently identified as a new
virus in January, 2020 and over the following months,
the number of cases continued to rise but were not
2
contained to China and showed exponential growth
worldwide. Due to the global rise in cases, this was
declared a pandemic on 11.03.2020 by the WHO. The
number of affected persons is increasing worldwide.
Although, substantial population is also recovering
from it but India witnessed exponential growth in
number of cases in the last month.
2. The world is familiar with several kinds of
disasters from time immemorial. Every country has
faced one or other disaster in recent memory.
Disasters disturb lives, societies and livelihood
around the world. The impact of disaster is to
strike hard earned economy, development and material
gains. Many of the destructive hazards are natural
in origin and some man made also. The whole world
having faced adverse effect of different kinds of
disasters is now well aware of its ill effect and
steps internationally as well as nationally are being
taken for last several decades to combat different
3
kinds of disasters. U.N. General Assembly
recognizing the importance of reducing the impact of
natural disaster for all people including developing
countries designated 1990 as the international decade
of natural disaster reduction. The International
Strategy for Disaster Reduction (UNISDR) was
established following IDNDR of the 1990s. The UN/GA
convened the second World Conference on Disaster Risk
Reduction (DRR) in Kobe, Hyogo, Japan 2005, which
concluded the review of the Yokohama Strategy and its
Plan of Action and the adoption of the Hyogo
Framework for Action 2005–2015: Building the
Resilience of Nations and Communities to Disasters
(HFA) (UNISDR 2005) by 168 countries. The HFA
outlined five priorities for action:
“(1) Ensure that DRR is a national and a
local priority with a strong
institutional
for
implementation;
basis
(2) Identify, assess, and monitor disaster
risks and enhance early warning;
4
(3) Use knowledge, innovation, and
education to build a culture of safety
and resilience at all levels;
(4) Reduce the underlying risk factors;
(5) Strengthen disaster preparedness for
effective response at all levels.”
3. On 23.12.2005, both the Houses of Indian Parliament
passed a Disaster Management Bill. The Introduction
and the Statement of Objects and Reasons of the Bill
mentions: -
“INTRODUCTION
For prevention and mitigation effects
of disasters and for undertaking a
holistic, coordinated and prompt response
to any disaster situation it has been
decided by the Government to enact a law
on disaster management to provide for
requisite institutional mechanisms for
drawing up and monitoring the
implementation of the disaster management
plans, ensuring measures by various wings
of Government. To achieve this objective
the Disaster Management Bill was
introduced in the Parliament.
STATEMENT OF OBJECTS AND REASONS
The Government have decided to enact a
law on disaster management to provide for
requisite institutional mechanisms for
drawing up and monitoring the
5
implementation of the disaster management
plans, ensuring measures by various wings
of Government for prevention and
mitigating effects of disasters and for
undertaking a holistic, coordinated and
prompt response to any disaster
situation.”
4.
The Disaster Management Act, 2005 (hereinafter
referred to as “Act, 2005”) was enacted to provide
for the effective management of disasters and
matters connected therewith or incidental thereto.
The enactment of Disaster Management Act, 2005 was
to bring in place requisite institutional
mechanisms for drawing up and monitoring the
implementation of the Disaster Management Plans
and other measures by various wings of the
Government for preventing and mitigating effects
of disasters. We shall notice the relevant
provisions of the Act a little later.
5. In accord with Disaster Management Act, 2005, Union
Cabinet approved a “National Policy on Disaster
Management, 2009”. Paragraph 1.1.1, 1.2.1 and 1.3.1
of the policy reads as under: -
6
“1.1.1 Disasters disrupt progress and
destroy the hard-earned fruits of
painstaking developmental efforts, often
pushing nations, in quest for progress,
back by several decades. Thus, efficient
management of disasters, rather than mere
response to their occurrence, has in
recent times, received increased attention
both within India and abroad. This is as
much a result of the recognition of the
increasing frequency and intensity of
disasters, as it is an acknowledgement
that good governance in a caring and
civilised society, needs to deal
effectively with the devastating impact of
disasters.
1.2.1 India is vulnerable, in varying
degrees, to a large number of natural as
well as man-made disasters. 58.6 per cent
of the landmass is prone to earthquakes of
moderate to very high intensity; over 40
million hectares (12 per cent of land) is
prone to floods and river erosion; of the
7,516 km long coastline, close to 5,700 km
is prone to cyclones and tsunamis; 68 per
cent of the cultivable area is vulnerable
to drought and hilly areas are at risk
from landslides and avalanches.
Vulnerability to disasters/emergencies of
Chemical, Biological, Radiological and
Nuclear (CBRN) origin also exists.
Heightened vulnerabilities to disaster
risks can be related to expanding
population,
and
industrialisation, development within
urbanisation
high-risk zones, environmental degradation
and climate change (Maps 1–4).
7
1.3.1 On 23 December 2005, the Government
of India (GoI) took a defining step by
enacting the Disaster Management Act,
2005, (hereinafter referred to as the Act)
which envisaged the creation of the
National Disaster Management Authority
(NDMA), headed by the Prime Minister,
State Disaster Management Authorities
(SDMAs) headed by the Chief Ministers, and
District Disaster Management Authorities
(DDMAs) headed by the District Collector
or District Magistrate or Deputy
Commissioner as the case may be, to
spearhead and adopt a holistic and
integrated approach to DM. There will be a
paradigm shift, from the erstwhile relief-
centric response to a proactive
prevention, mitigation and preparedness-
driven
conserving
developmental gains and to minimise loss
of life, livelihood and property.”
approach
for
The policy noticed institutional framework under
the Act, dealt with financial arrangement, disaster
prevention, mitigation and preparedness.
6. Third U.N. World Conference on Disaster Risk
Reduction was held in March, 2015 at Sendai, Japan.
One of the declarations made in the conference was: -
8
“We, the Heads of State and Government,
ministers and delegates participating in
the Third United Nations World Conference
on Disaster Risk Reduction, have gathered
from 14 to 18 March 2015 in Sendai City of
Miyagi Prefecture in Japan, which has
demonstrated a vibrant recovery from the
Great East Japan Earthquake in March 2011.
Recognizing the increasing impact of
disasters and their complexity in many
parts of the world, we declare our
determination to enhance our efforts to
strengthen disaster risk reduction to
reduce disaster losses of lives and assets
from
worldwide.”
disasters
7. The Sendai declaration dealing with priorities for
action emphasized following in paragraph 33(a):-
”33(a) To prepare or review and
periodically update disaster
preparedness and contingency
policies, plans and programmes with
the involvement of the relevant
institutions, considering climate
change scenarios and their impact
on disaster risk, and facilitating,
as appropriate, the participation
of all sectors and relevant
stakeholders;”
8. Although Section 11 of Act, 2005 contemplated
preparation of a National Plan, however, the National
Plan was not prepared till the year 2016 as was
9
noticed by this Court in a judgment of this Court in
<cite>Swaraj Abhiyan Vs. Union of India & Ors., (2016) 7
SCC 498</cite>. In the year 2016, National Disaster
Management Plan was prepared as required by Section
11 of the Act, 2005. The
preparation of the
National Plan under Section 11 was noticed by this
Court in <cite>Gaurav Kumar Bansal Vs. Union of India and
Ors., (2017) 6 SCC 730</cite>. In the same judgment, this
Court noticed that State Plan under Section 23 of the
Act (except by two States) and District Plan have
also been prepared. The preparation of National
Plan, State Plan and District Plan were noticed in
paragraphs 7, 11 and 12 of the above judgment, which
are to the following effect:-
“7. It was further pointed out that a
National Plan has been approved and placed
on the website of the NDMA in terms of
Section 11 of the Act and the guidelines
for minimum standards of relief Under
Section 12 of the Act have also been
placed on the website of the NDMA.
11. As far as the preparation of the State
Plan Under Section 23 of the Act is
concerned, we have been informed by the
learned Counsel for NDMA that all States
10
except Andhra Pradesh and Telangana have
prepared a State Disaster Management Plan
which is very much in place.
12. As far as the districts are concerned,
it is stated that the District Disaster
Management Authority has been constituted
in every district Under Section 25 of the
Act and out of 684 districts in the
country, a District Disaster Management
Plan is in place in 615 districts while it
is under process in the remaining
districts.”
9.
The revision of the existing National Disaster
Management Plan, 2016 began in April, 2017 and
completed in November, 2019. The National Disaster
Management Plan approved by National Disaster
Management Authority was notified in November, 2019.
10.
This writ petition filed as a public interest
litigation has been filed in the wake of Covid-19
pandemic, seeking direction to the Union of India to
prepare, notify and implement a National Plan under
Section 11 read with Section 10 of the Act, 2005 to
deal with current pandemic (Covid-19) and to lay down
11
minimum standards of relief under Section 12 of the
Act, 2005 to be provided to persons affected with
COVID-19. Petitioners have also sought for
directions to utilize National Disaster Response Fund
(NDRF) for the purposes of providing assistance in
the fight against COVID-19 and all the
contributions/grants from individuals/institutions be
credited in NDRF and not to PM CARES Fund and all
funds collected in PM CARES Fund till date should be
directed to be transferred to NDRF. It is useful to
note the specific prayers (a) to (c) made in the writ
petition: -
“a. Issue a writ, order or direction to
the Union of India to prepare, notify
and implement a National Plan under
Section 11 read with Section 10 of the
Disaster Management Act, 2005 to deal
with the ongoing COVID-19 pandemic;
b.
Issue a writ, order or direction to
the Union of India to lay down minimum
standards of relief, under Section 12
of the Disaster Management Act, 2005,
to be provided to persons affected by
the COVID-19 virus, as well as by the
resultant national lockdown;
12
c.
Issue a writ, order or direction to
the Union of India to utilize NDRF for
the purpose of providing assistance in
the fight against GOVID-19 pandemic in
compliance with Section 46 of the DM
Act, all the contributions/grants from
individuals and institutions shall be
credited to the NDRF in terms of
Section 46(1)(b) rather than to PM
CARES Fund and all the fund collected
in the PM CARES Fund till date may be
directed to be transferred to the
NDRF;”
11.
We have heard Shri Dushyant Dave, learned senior
counsel for the petitioner. Shri Kapil Sibal has
also made his submissions in support of the prayers
and issues raised in the writ petition while
addressing his submissions in Suo Moto Writ Petition
No. 6 of 2020. We have also heard Shri Tushar Mehta,
learned Solicitor General appearing for the Union of
India.
12.
Petitioner’s case in the writ petition is that
the National Plan uploaded on the website of National
Disaster Management Authority of the year 2019 does
not deal with situations arising out of the current
13
pandemic and has no mention of measures like
lockdown, containment zones, social distancing etc.
The Central Government has notified COVID-19 as a
“disaster” under Act, 2005 and has issued series of
notifications to contain the instant pandemic.
Petitioner pleads that Centre need to prepare a well-
drawn National Plan to deal with instant pandemic and
the same need to be prepared after due consultation
with the State Government and experts. Petitioner
further pleads that Centre should come up with
detailed guidelines recommending the minimum
standards of relief to be provided in the relief
camps in relation to shelter, food, drinking water,
medical cover and sanitation, in absence of which,
shelter homes and relief camps are susceptible of
becoming hotbeds for the spread of COVID-19
infection. Petitioner pleads that Centre should come
up with detailed guidelines under Section 12(ii) and
(iii) of the Act, 2005 recommending special
provisions to be made for widows and orphans and ex
gratia to be provided to the kith and kin of those
losing life not just because of COVID-19 infection
but also due to harsh lockdown restrictions.
14
13.
The petitioner’s case further is that the
grants/contributions by individuals and institutions
should be credited into the National Disaster
Response Fund (NDRF) under Section 46 of the Act,
2005 and NDRF should be utilized for meeting the
ongoing COVID-19 crisis. All the contributions made
by the individuals and institutions in relation to
COVID-19 are being credited into the PM CARES Fund
and not in NDRF, which is clear violation of Section
46 of the Act, 2005. The NDRF is subject to CAG
Audit and PM CARES Fund is not subject to CAG Audit.
Petitioner’s case further is that the Centre may be
directed to utilize NDRF for the purpose of drawing
assistance to fight against COVID-19 and all the
contributions/grants
from
individuals
and
institutions be credited to the NDRF in terms of
15
Section 46(1)(b) rather than to PM CARES Fund and all
the Fund Collected in the PM CARES Fund till date may
be directed to be transferred to the NDRF.
14.
A preliminary counter affidavit has been filed on
behalf of the Union of India. In the counter
affidavit, the respondents have questioned the locus
of the petitioner to file this public interest
litigation. Counter affidavit questions as to
whether there can be a permanent body set up only to
file litigation on issues, which the said body
subjectively considers to be of “public interest”.
Counter affidavit pleads that National Disaster
Management Plan as per Section 11 is already in place
and relevant portion of National Disaster Management
Plan – November, 2019 has been annexed as Annexure R-
1 to the counter affidavit. Counter affidavit pleads
that Act, 2005 provides for a broad framework in
terms of the response to be provided in pursuance to
a National Plan in case of any disaster. Counter
affidavit pleads that National Plan does not and
16
cannot contain step by step instructions or specific
instructions for the day to day management by
Government agencies in the situation of any
particular and unforeseen disaster. National Plan is
not a document that contains the microscopic details
as to the day to day management of the issues arising
out of different disasters. National Disaster
Management Authority has issued various orders from
time to time to take effective measures found
required at the relevant point of time to contain the
spread of COVID-19 in the country. The Chairperson
of National Executive Committee has issued several
guidelines from time to time. National Disaster
Management Authority has, in order to create
preparedness with regard to any contingent biological
disaster, has framed the “National Disaster
Management Guidelines Management of Biological
Disasters”. National Disaster Management Authority
has framed broad template for State level and
District level for contingency plan for COVID-19.
17
The Nodal Ministry, i.e., Ministry of Health and
Family Welfare has issued a “Cluster Containment Plan
for COVID-19” on 02.03.2020, which was further
updated on 16.05.2020. Further instructions have
been issued from time to time including the guidance
documents. The Ministry of Health and Family Welfare
has approved the India COVID-19 Emergency Response
and Health Systems Preparedness Package of Rs.15000
crores, which seeks to support States/Union
Territories in various aspects of management of the
COVID Pandemic and provides support for establishment
of COVID dedicated facilities for treatment of COVID-
19 cases including for critical care, enhancement in
testing capacities, engagement and training of
necessary human resources and procurement of
essential equipment and protective gear for the
health care personnel engaged in COVID-19 duties etc.
With regard to minimum standards of relief, the
counter affidavit refers and relies on guidelines on
Minimum Standards of Relief under Section 12, which
18
has been brought on record as Annexure R-7. The
Counter affidavit also outlines various steps taken
by Health Ministry as well as the Government of
India.
15.
Replying the averments in the writ petition
regarding PM CARES Fund and NDRF, the counter
affidavit pleads that there are several funds which
are either established earlier or now for carrying
out various relief works. PM CARES Fund is one of
such funds with voluntary donations. Affidavit
further states that there exist a NDRF which would
not prohibit creation of a different fund like PM
CARES fund which provides for voluntary donations.
The directions prayed in the writ petition for
transfer of funds received in PM CARES Fund in the
NDRF are non-maintainable.
16.
Shri Dushyant Dave, learned senior counsel
appearing for the petitioner referring to the
pleadings of the petitioner made in the writ petition
19
contends that Centre was obliged to prepare a
National Plan for Disaster Management specifically
for COVID-19. Shri Dave does not dispute that
National Plan under Section 11 has been framed in
November, 2019 but he submits that said Plan is
neither comprehensive nor covers management of
pandemic, i.e., COVID-19. Shri Dave submits that
power given in a Statute is to be exercised in the
same manner. Shri Dave further submits that there is
a serious problem in implementing the National Plan,
2019. Shri Dave has taken us to certain portion of
Plan of November, 2019, which has been filed as
Annexure – P-2 to the writ petition. Shri Dave
submits that only paragraph 7.15 deals with
biological and public health emergencies but Plan
does not contemplate giving any financial relief.
Shri Dave submits that unless there is a National
Plan for COVID-19, effective measures cannot be taken
to contain COVID-19. Referring to Section 46 of the
Act, 2005, Shri Dave submits that NDRF having been
20
constituted by Central Government, all amount given
by individuals and organisations for disaster should
have been credited in NDRF. He submits that PM CARES
Fund should not have been constituted when NDRF is
already in place to take care of disasters. Shri
Dave submits that there is no provision in 2019 Plan
to give fund to NDRF. Referring to Operational
Guidelines for Constitution and Administration of the
National Disaster Response Fund at page 129 of the
writ petition, Shri Dave submits that paragraph 5.5
provides that contribution made by the persons or
institutions for the purpose of disaster management
to be credited in the NDRF, which clause 5.5 has been
omitted in the subsequent Operational Guidelines for
Constitution and Administration of the National
Disaster Response Fund filed at page 154, which is
recent guidelines. By deletion of clause 5.5 now
contribution by any person or institution for the
purpose of disaster management to the NDRF is not
permissible. Shri Dave submits that petitioners have
21
no reason to doubt the bonafide of PM CARES Fund but
by creating PM CARES Fund the NDRF is being
circumvented. What cannot be done directly cannot be
done indirectly. Although, NDRF is audited by CAG,
the PM CARES Fund is audited by only private
auditors.
17. Shri Tushar Mehta, learned Solicitor General
refuting the submissions of the counsel for the
petitioners submits that reliefs (i) and (ii) made in
the writ petition has become infructuous since
National Plan has already been prepared under Section
11, which has been referred to in the counter
affidavit and relevant extract of the Plan has
already been brought on record as Annexure R-1 along
with counter affidavit. He submits that insofar as
the guidelines for minimum standards of reliefs are
concerned, there are guidelines in existence, which
has been brought on record by the counter affidavit,
which covers all disasters including COVID-19. Shri
22
Mehta submits that Plan – November, 2019 along with
the powers given in the Act, 2005 contains several
measures to contain the spread of COVID-19 and no
separate National Plan is required for COVID-19.
18.
Shri Tushar Mehta submits that a National
Disaster Response Fund has been created as stipulated
under Section 46 of Act, 2005, which consist of fund
in the form of budgetary provisions made by the
Central Government in National Disaster Response
Fund. He submits that the existence of National
Disaster Response Fund, which is a statutory fund,
neither prevents creation of any public charitable
trust receiving voluntary donation nor can remotely
mean that the amount received in all such voluntary
funds should go in the statutory fund created under
Section 46. National Disaster Response Fund and PM
CARES Fund being distinct and separate, there is no
occasion for any direction to transfer the amount of
PM CARES Fund to the National Disaster Response Fund.
23
19.
We have heard the learned counsel for the parties
and perused the record. Applications for intervention
are rejected.
20.
The respondent in its affidavit has raised
contention/objection regarding the locus standi of
the petitioner. It is, inter alia, contended that
there cannot be a permanent body existing only for
filing public interest litigations. Shri Tushar
Mehta, learned Solicitor General, however, pointed
out that at the outset, in the facts of the present
case, he would rather like to assist the Hon’ble
court on merits and requested that the question of
locus standi of the petitioner which, according to
him is a very serious question, be left open to be
raised and decided in other proceedings. We have,
therefore, heard the parties on merits, keeping the
aforesaid question open, to be heard and decided in
an appropriate proceeding.
24
21.
From the submissions of the learned counsel for
the parties and the pleadings on record, following
questions arise for consideration in this writ
petition: -
I) Whether the Union of India under Section 11 of
Act, 2005, is obliged to prepare, notify and
implement a National Disaster Management Plan
specifically
for
pandemic
COVID-19
irrespective of National Disaster Management
Plan notified in November, 2019?
II) Whether the Union of India is obliged to lay
down the minimum standards of relief under
Section 12 of Act, 2005, for COVID-19
irrespective of earlier guidelines issued
under Section 12 of the Act, 2005 laying down
the minimum standards of relief?
III) Whether Union of India is obliged to utilise
National Disaster Response Fund created under
25
Section 46 of the Act for the purpose of
providing assistance in the fight of COVID-19?
IV) Whether all the contributions/grants from
individuals and institutions should be
credited to the NDRF in terms of Section 46(1)
(b) of the Act rather than to PM CARES Fund?
V) Whether all the funds collected in the PM CARES
Fund till date be directed to be transferred to
the NDRF?
QUESTION NO.I
I) Whether the Union of India under Section 11 of
Act, 2005, is obliged to prepare, notify and
implement a National Disaster Management Plan
specifically for pandemic COVID-19 irrespective
of National Disaster Management Plan notified in
November, 2019?
22.
The Act, 2005, has been enacted for the effective
management of Disasters and for matters connected
therewith or incidental thereto. Section 3 of the
Act constitutes National Disaster Management
Authority with the Prime Minister of India as the
26
Chairperson, ex-officio. Section 6 enumerates the
powers and functions of National Authority. As per
Section 6 sub-Section (2)(b), National Disaster
Management Authority (hereinafter referred to as
National Authority) is to approve the National Plan.
Under Section 7, the National Authority may
constitute an advisory Committee consisting of
experts in the field of Disaster Management to make
recommendations on different aspects of Disaster
Management. Under Section 8, the Central Government
is to constitute a National Executive Committee to
assist the National Authority in the performance of
its functions under the Act. Section 11 of the Act
deals with National Plan, which provision is to the
following effect: -
“11. National Plan –(1) There shall be
drawn up a plan for disaster management
for the whole of the country to be called
the National Plan.
(2) The National Plan shall be
prepared by the National Executive
Committee having regard to the National
Policy and in consultation with the State
Governments and expert bodies or
27
organizations in the field of disaster
management to be approved by the National
Authority.
(3) The National Plan shall include –
(a) measures to be taken for
the prevention of disasters,
or the mitigation of their
effects;
(b) measures to be taken for
the integration of mitigation
measures in the development
plans;
(c) measures to be taken for
preparedness and capacity
building to effectively
respond to any threatening
disaster situations or
disaster;
(d) roles and responsibilities
of different Ministries or
Departments of the Government
of India in respect of
measures specified in clauses
(a), (b) and (c).
(4) The National Plan shall be
reviewed and updated annually.
(5) Appropriate provisions shall be
made by the Central Government for
financing the measures to be carried out
under the National Plan.
(6) Copies of the National Plan
referred to in sub-sections (2) and (4)
shall be made available to the Ministries
or Departments of the Government of India
28
and such Ministries or Departments shall
draw up their own plans in accordance with
National Plan.”
23.
As noted above, the first National Plan under
Section 11 was framed in the year 2016, which was
revised and the National Plan was prepared and
notified in November, 2019. Extract of National
Disaster Management Plan of November, 2019 has been
brought on record both by the petitioner as
Annexure-P2 to the writ petition as well as by the
respondent as Annexure-R1 to the preliminary counter
affidavit.
24.
We may notice certain relevant portions of the
Plan, 2019 to answer the question which is up for
consideration. The Plan, 2019 under heading
‘Executive Summary’ states: -
“...The National Disaster Management
Plan (NDMP) provides a framework and
direction to the government agencies for
all phases of disaster management cycle.
The NDMP is a “dynamic document” in the
sense that it will be periodically
improved keeping up with the emerging
global best practices and knowledge base
29
in disaster management. It is in
accordance with the provisions of the DM
Act, 2005, the guidance given in the
National Policy on Disaster Management
(NPDM) 2009, and the established national
practices...”
25.
In the Executive summary itself, while noticing
the changes introduced, the Plan states that new
sections have been added relating to several hazards
including “Biological and Public Health
Emergencies”. The Plan, 2019 provides a framework
and directions to the Government Agencies for all
phases of Disaster Management. The Plan is a dynamic
document in the sense that it was to be periodically
improved, keeping up with the best practices and
knowledge based in Disaster Management. The Plan
provides a framework covering all aspects of
Disaster Management. It covers Disaster Risk
Reduction, mitigation, preparedness, response,
recovery and building back better. It recognizes
that effective Disaster Management necessitates a
comprehensive framework encompassing multiple
30
hazards. Paragraph 1.4 of the Plan under the heading
‘Legal Mandate’ states: -
“1.4. Legal Mandate
Section 11 of the DM Act 2005 mandates
that there shall be a National Disaster
Management Plan (NDMP) for the whole of
India. The NDMP complies with the National
Policy on Disaster Management (NPDM) of
2009 and conforms to the provisions of the
DM Act making it mandatory for the various
central ministries and departments to have
adequate DM plans. While the NDMP will
pertain to the disaster management for the
whole of the country, the hazard-specific
nodal ministries and departments notified
by the Government of India will prepare
detailed DM plans specific to the disaster
assigned. As per Section 37 of the DM Act,
every ministry and department of the
Government of India, be it hazard-specific
nodal ministries or not, shall prepare
comprehensive DM plans detailing how each
of them will contribute to the national
efforts in the domains of disaster
prevention, preparedness, response, and
recovery.
As per the mandate of the DM Act, the
NDMP assigns specific and general
responsibilities to all ministries and
departments for disaster management. The
DM Act enjoins the NDMP to assign
necessary responsibilities to various
ministries to support and implement the
plan. Therefore, it is incumbent on all
ministries to accept all the implicit and
explicit responsibilities mentioned in the
31
NDMP even if they are beyond what are
explicitly mentioned in the normal rules
of business. Disaster management requires
assumption of responsibilities beyond the
normal functioning. The NDMP will be
complemented by separate contingency
plans, SOPs, manuals, and guidelines at
all levels of the multi-tiered governance
system.”
26.
The above part of the Plan categorically states
that the Plan will be complemented by several
contingency plans, Standard Operating Procedures
(SOPs), Manuals and Guidelines at all levels of the
multi-tiered governance system. Paragraph 1.13 deals
with ‘types of Disasters’. Paragraph 1.13.1,
‘Natural Hazards’ have been enumerated in five major
categories. Sub-category (5) is to the following
effect:-
“1.13.1 Natural Hazards
1)...
5)Biological Process or phenomenon
or organic origin or conveyed by
biological vectors, including exposure
to pathogenic micro-organisms, toxins
and bioactive substances that may cause
loss of life, injury, illness or other
health impacts, property damage, loss
of livelihoods and services, social and
32
economic disruption or environmental
damage.”
27.
Under Table 1-1, ‘Categories of Natural Hazards’
have been detailed. Item (5) of the Table 1-1 is to
the following effect: -
“Table 1-1: Categories of Natural Hazards
Family
Main
Event
1 Geophysical
2 Hydrological
3 Meteorological
4 Climatological
5 Biological
Exposure to
germs and
toxic
substances
Short
Description/
Secondary
Disaster
Epidemics:
Viral,
bacterial
parasitic,
fungal, or
prion
infections
Insect
infestatio
ns
Animal
stampedes
28. Table 1-3, provides for ‘Nodal Ministry for
Management/Mitigation of Different Disasters’ with
regard to Biological Emergencies, Nodal Ministry is
33
notified as Ministry of Health and Family
Welfare(MoHFW). Under paragraph 2.2.3.3, Biological
and Public Health Emergencies have been dealt with.
The First paragraph of the above is as follows:-
“...Disasters related to this sub-
group are biological emergencies and
epidemics, pest attacks, cattle epidemics
and food poisoning. Biological emergency
is one caused due to natural outbreaks of
epidemics or intentional use of biological
agents (viruses and microorganisms) or
toxins through dissemination of such
agents in ways to harm human population,
food crops and livestock to cause
outbreaks of diseases. This may happen
through natural, accidental, or deliberate
dispersal of such harmful agents into
food, water, air, soil or into plants,
crops, or livestock. Apart from the
natural transnational movement of the
pathogenic organisms, their potential use
as weapons of biological warfare and
bioterrorism has become far more important
now than ever before. Along with nuclear
and chemical agents, many biological
agents are now considered as capable of
causing large-scale mortality and
morbidity...”
29. Paragraphs 6 and 7 deals with “Building Disaster
Resilience - Responsibility Framework, Part A and B”.
Dealing with Biological and Public Health Emergencies
in paragraph 7.15, following are the sub-heads under
the paragraph: -
34
“7.15 Biological and Public Health
Emergencies (BPHE)
7.15.1 Understanding Risk
7.15.2 Inter-Agency Coordination
7.15.3 Investing in DRR–Structural
Measures
7.15.4 Investing in DRR- Non-structural
Measures
7.15.5 Capacity Development
7.15.6 Climate Change Risk Management”
30. A detailed chart has been prepared under
paragraph 7.15 in five parts and it shall be useful
to notice the only first portion of paragraph 7.15.1,
item 1, which is to the following effect: -
“7.15.1 Understanding Risk
Biological & Public Health Emergencies (BPHE)
Sub-Thematic
Area for DRR
Central/State Agencies and their Responsibilities
Centre#
Responsibility
- Centre
State#
Responsibility
-State
1.
Observation
Networks,
Information
Systems,
Monitoring,
Research,
Forecasting,
Early Warning
and
Zoning/Mapping
MHFW*
(NCDC),
MAFW, MHA,
MOD, MOES,
MOEFCC, MOR,
MLBE, MEITY,
NDMA
Recurring/
Regular(RR)
Support
training
Extend
technical
support
for
Medium Term(T2)
Establishment
of
Warning System
Strengthening
Early
IDSP and early
warning systems
at
regional
levels
Epidemiological
disease mapping
Health
facilities
mapping
35
Recurring/
Regular(RR)
Maintaining
preventive
measures as per
norms
Short Term(T1)
Strengthening
integrated health
surveillance
systems
Medium Term(T2)
Establishing and
HFWD*,
DMD$,
SDMA, RD,
DRD, UDD,
DWSD,
EDD, PD,
EFD, AHD,
WCD,
PRI/ULB,
SLRTI,
DDMA
maintain
community-based
network
sharing alerts
for
Strengthening
IDSP
Long Term(T3)
States
should,
modify or adapt
IMD’s
warning
system according
to
thresholds
applicable in each
state
31. The other items apart from item (1) as noticed
above in paragraph 7, which are relevant is as
follows:-
Biological & Public Health Emergencies (BPHE)
Sub-Thematic
Area for DRR
Central/State Agencies and their Responsibilities
Centre#
Responsibility
State#
Responsibility -
Centre
-State
2. Hazard Risk
Vulnerability
and Capacity
Assessment
(HRVCA)
MHFW*,
MAFW*, MHA,
MOD, MOES,
MOEFCC,
MSJE, NDMA
Recurring/
Regular (RR)
• Promote studies,
documentation
and research
• Provide Training
Technical
&
support
• Studies on
vulnerabilities
and capacities
covering
social,
physical,
economic,
ecological,
gender, social
inclusion and
equity aspects
Short-Term (T1)
Develop guidelines
Recurring/
Regular (RR)
Support for
organising
training
Extend technical
support
3
Dissemination
of warnings,
data
&
information
MHFW, MHA,
MOD, MOES,
MAFW,
MOEFCC,
NDMA
HFWD,
DMD$,
SDMA,
DRD,
UDD,
DWSD,
EFD,
AHD,
WCD,
DSJE,
PRI,
ULB,
SLRTI,
DDMA
HFWD*,
DMD$,
SDMA,
DRD,
UDD,
DWSD,
EDD,
PD,
EFD,
AHD,
WCD,
PRI,
ULB,
SLRTI,
DDMA
36
Recurring/
Regular (RR)
Updating HRVCA
Identifying
the vulnerable
population/
communities/
settlements
Identification
of
groups
requiring
special
attention
Conduct audit
of equipment
and hu man
resource
requirements
Short term(T1)
Constitute/
strengthen the
mechanisms for
consultation with
experts
and
stakeholders
Short Term (T1)
Create
awareness
preventive
measures
Extensive IEC
campaigns to
create
awareness
through print,
electronic and
social media
Medium Term (T2)
Specific messages
for
highly
vulnerable groups
such as elderly,
young children,
outdoor workers
and
slum
4
Disaster Data
Collection
and
Management
MHA* ,
MOSPI, all
ministries/
depts.
37
residents
Recurring/
Regular (RR)
Systematic data
management of
data on disaster
damage and loss
assessments
Short Term (T1)
Disaster Damage
and Losses 2005-
2015 baseline
DMD$,
SDMA,
all
depts.
Recurring/
Regular (RR)
Systematic data
management of data
on disaster damage
and loss
assessments
Short Term (T1)
Disaster Damage and
Losses 2005-2015
baseline
Notes: (#) Every ministry, department or agency of
the government – central and state – not specifically
mentioned will also have both direct and indirect
supporting role depending on the disaster, location
and context. (*) The ministry, department or agency
with this symbol has or is deemed to have a nodal or
lead role, while others mentioned have a direct or
explicit supporting role. ($) DMD —Disaster
Management Department: The state government
department acting as the nodal department for
disaster management, which is not the same in every
state/UT.
32. Paragraph 7.15.2 deals with inter-agency
coordination in these items. Paragraph 7.15.3 deals
with investing in DRR – Structural measures.
Paragraph 7.15.4 deals with investing in DRR – Non-
structural measures. Paragraph 7.15.5 deals with
capacity development. Paragraph 7.15.6 deals with
climate change risk management. The plan, thus,
38
contains detailed treatment of Biological and Public
Health Emergencies as noticed above, which have been
detailed at pages 117 to 130 of the Annexure-R1 of
the counter affidavit. All aspects of Biological and
Public Health Emergencies have been, thus, dealt in
systematic and planned manner. The Plan of 2019 in
different paragraphs deals with entire framework.
33. The submission which has been pressed by
petitioner is that despite existence of Plan, 2019,
there has to be specific Plan dealing with COVID-19,
hence, Union of India may be directed to prepare a
National Plan under Section 11 for COVID-19. Section
11 of the Act provides that there shall be a plan for
Disaster Management for the whole of the Country.
Sub-Section (3) of Section 11 requires that the
National Plan shall include: -
“11.(3) The National Plan shall include-
(a) measures to be taken for the
prevention of disasters, or the
mitigation of their effects;
39
(b) measures to be taken for the
integration of mitigation measures
in the development plans;
(c) measures to be taken for
preparedness and capacity building
to effectively respond to any
threatening disaster situations or
disaster;
(d) roles and responsibilities of
different Ministries or Departments
of the Government of India in
respect of measures specified in
clauses (a), (b) and (c). ”
34. The object and purpose of preparing a National
Plan is to cope up and tackle with all conceivable
disasters which the country may face. When the
measures have to be taken for preparedness and
capacity building to effectively respond to any
threatening disaster situation, the section does not
contemplate preparation of Plan after a disaster has
occurred.
35. National Plan and guidelines as contemplated by
the statute for Disaster Management is by its very
nature prior to the occurrence of any disaster and as
40
a measure of preparedness. It is not conceivable that
a National Plan would be framed after the disaster
has occurred. A National Plan encompasses and
contemplate all kinds of disasters.
36.
As noticed above, Biological and Public Health
Emergencies has already been contemplated in the
National Plan, 2019, which as noticed in table 1-1
under paragraph 1.13.1 specifically includes
epidemics: Viral, Bacterial, Parasitic, Fungal and
prion infections. Novel Coronavirus is an epidemic
which has become a pandemic. Epidemics of different
nature and extent have taken place in this country as
well as other countries of the world. A pandemic is
an epidemic, i.e., spread over multiple countries/
continents. An epidemic, as a disaster has been known
and recognized throughout the world with which most
of the countries are infected time and again. As
noticed above, Plan-2019 is complemented by several
plans, Standard Operating Procedures (SOPs), Manuals,
Guidelines at all levels of the Government.
41
37.
The National Disaster Management Authority,
Government of India, had issued National Disaster
Management Guidelines in July, 2008 on subject
“Management of Biological Disasters”. The guideline
specifically notices that “Biological Disasters”
might be caused by epidemics, the guidelines states:-
“Biological disasters might be caused by
epidemics, accidental release of virulent
microorganism(s) or Bioterrorism (BT) with
the use of biological agents such as
anthrax, smallpox, etc. The existence of
infectious diseases has been known among
human communities and civilisations since
the dawn of the history. The Classical
literature of nearly all civilisations
record the ability of major infections to
decimate populations, thwart military
campaigns and unsettle nations. Social
upheavals caused by epidemics have
contributed in shaping history over the
ages...”
38. Thus, the National Disaster Management Authority
was well aware of the epidemics and had issued
42
guidelines in the year 2008 itself which has been
further detailed in Plan-2019. All aspects of the
epidemics, all measures to contain an epidemic,
preparedness, response, mitigation have been
elaborately dealt in Plan, 2019. Unless the National
Plan as contemplated under Section 11 contains all
aspects of disaster including the Biological and
Public Health Emergencies, it will not be possible
for the Governments to immediately respond and
contain an epidemic.
39. The Disaster Management Act, 2005 contain ample
powers and measures, which can be taken by the
National Disaster Management Authority, National
Executive Committee and Central Government to prepare
further plans, guidelines and Standard Operating
Procedure (SOPs), which in respect to COVID-19 have
been done from time to time. Containment Plan for
Novel Coronavirus, 2019 has been issued by Ministry
of Health and Family Welfare, Government of India,
43
copy of which updated up to 16.05.2020 has been
brought on record as Annexure-R4. There are no lack
of guidelines, SOPs and Plan to contain COVID-19, by
Nodal Ministry and Annexure R-6 has been brought on
record issued by Ministry of Health and Family
Welfare, Government of India, i.e., Updated
Containment Plan for Large Outbreaks Novel
Coronavirus Disease, 2019 (COVID-19).
40. National Executive Committee as well as Nodal
Ministry has issued guidelines and orders from time
to time to regulate all measures to contain COVID-19.
The petitioners are not right in their submissions
that there is no sufficient plan to deal with COVID-
19 pandemic. COVID-19 being a Biological and Public
Health Emergency, which has been specifically covered
by National Plan, 2019, which is supplemented by
various plans, guidelines and measures, there is no
lack or dearth of plans and procedures to deal with
COVID-19.
44
41. We may also notice that this Court in <cite>Gaurav
Kumar Bansal Vs. Union of India and Others, (2017) 6
SCC 730</cite>, has noticed that National Plan under Section
11 has already been approved by National Disaster
Management Authority. In paragraph 7 of the judgment,
following was laid down: -
“7. It was further pointed out that a
National plan has been approved and placed
on the website of NDMA in terms of Section
11 of the Act and the guidelines for
minimum standards of relief under Section
12 of the Act have also been placed on the
website of NDMA.”
42. In view of above discussion, we do not find any
merit in the claim of the petitioner that Union of
India be directed to prepare a National Plan under
Section 11 for COVID-19. National Plan, 2019 have
already been there in place supplemented by various
orders and measures taken by competent authorities
under Disaster Management Act, 2005, there is no
occasion or need to issue any direction to Union of
45
India to prepare a fresh National Plan for COVID-19.
We, thus, hold that Union of India is not obliged to
prepare, notify and implement a fresh National
Disaster Management Plan for COVID-19.
QUESTION NO.II
II) Whether the Union of India was obliged to lay
down the minimum standards of relief under
Section 12 of Act, 2005, for COVID-19
irrespective of earlier guidelines issued under
Section 12 of the Act laying down the minimum
standards of relief?
43. Section 12 of the Act, deals with guidelines for
Minimum Standards of Relief. Section 12 is as
follows:-
“12. Guidelines for minimum standards of
relief. —The National Authority shall
recommend guidelines for the minimum
standards of relief to be provided to
persons affected by disaster, which shall
include, —
(i)
the minimum requirements to
be provided in the relief
camps in relation to
shelter, food, drinking
water, medical cover and
sanitation;
46
(ii)
the special provisions to
be made for widows and
orphans;
(iii) ex gratia assistance on
account of loss of life as
also assistance on account
of damage to houses and for
restoration of means of
livelihood;
(iv)
such other relief as may be
necessary.”
44. The petitioner’s case as noticed above is that
the Centre should come up with detailed guidelines
under Section 12(ii) and (iii) of Disaster Management
Act, 2005, recommending special provisions to be made
for widows and orphans and ex-gratia assistance to be
provided to the kith and kin of those losing life
because of COVID-19 infections but also as a result
of harsh lockdown restrictions. It is submitted that
there are no guidelines providing for minimum
standards for COVID-19. The above claim of the
petitioner is refuted by the respondents. The
respondents have brought on record the guidelines of
minimum standards of relief under Section 12 as
47
existing prior to COVID-19, which has been filed as
Annexure-R7 to the counter affidavit. The guidelines
filed as Annexure-R7 deals with
(i)
definition of Relief and Rehabilitation
Camp,
(ii) Minimum standards in respect of Shelter in
relief camps,
(iii) Minimum Standards in respect of Food in
relief camps,
(iv) Minimum Standards in respect of Water in
relief camps,
(v)
Minimum Standards in respect of Sanitation
in relief camps,
(vi)
Minimum Standards in respect of medical
cover in relief camps and
(vii) Minimum Standards of Relief for Widows and
Orphans.
45. The guidelines brought on record under Annexure-
R7, which were in existence since before declaration
48
of COVID-19 pandemic, covers all statutory
requirement as enumerated in Section 12. Section 12
contemplates minimum standards of relief to be
provided to persons affected by disaster. The word
‘disaster’ mentioned in Section 12 encompasses all
the disasters including the present disaster. Section
12 does not contemplate that there shall be different
guidelines for minimum standards of relief for
different disasters.
46. The uniform guidelines are contemplated so that
persons affected by disaster are provided with
minimum requirement in the relief camps in respect of
shelter, food, drinking water, medical cover and
sanitation and other reliefs as contemplated in the
section. There being already guidelines for minimum
standards in place even before COVID-19, the said
guidelines for minimum standards holds good even for
those who are affected by COVID-19. Section 12 does
not contemplate that afresh guidelines for the
49
minimum standards of relief be issued with regard to
COVID-19. The prayer of the petitioner to direct the
Union of India to issue fresh guidelines under
Section 12 to be provided to persons infected with
COVID-19 is misconceived.
47. The Government of India vide order dated
14.03.2020 has decided to treat COVID-19, the
pandemic, as a notified disaster for the purpose of
providing assistance under State Disaster Response
Fund, norms of assistance for ex-gratia payment to
families of deceased persons, norms of assistance for
COVID-19 positive persons requiring hospitalization
and some other assistance to be provided from State
Disaster Response Fund have been notified by the
Government of India.
48. In view of the foregoing discussions, we hold
that Union of India is not obliged to lay down
minimum standards of relief under Section 12 of the
50
Act, 2005 for COVID-19 and the guidelines issued
under Section 12 providing for minimum standards of
relief holds good for pandemic COVID-19 also.
QUESTION NOS. 3, 4 AND 5
III) Whether Union of India is obliged to utilise
National Disaster Response Fund created under
Section 46 of the Act for the purpose of
providing assistance in the fight of COVID-19?
IV)
V)
Whether all the contributions/grants from
individuals and institutions should be
credited to the NDRF in terms of Section 46(1)
(b) of the Act rather than PM CARES Fund?
Whether all the funds collected in the PM
CARES Fund till date be directed to be
transferred to the NDRF?
49. All the three questions being inter-related are
taken together. The submissions of the petitioner
centre around National Disaster Response Fund (NDRF)
and PM CARES Fund. We need to notice the nature and
character of these funds for appreciating the
submissions made by the learned counsel for the
parties. Chapter IX of the Disaster Management Act,
2005 deals with Finance, Accounts and Audit. Section
46 provides for National Disaster Response Fund.
Section 46 reads:
51
“46. National Disaster Response Fund.—(1)
The Central Government may, by
notification in the Official Gazette,
constitute a fund to be called the
National Disaster Response Fund for
meeting any threatening disaster situation
or disaster and there shall be credited
thereto—
(a) an amount which the Central
Government may, after due
appropriation
by
Parliament by law in this
behalf provide;
made
(b) any grants that may be made by
any person or institution for
the purpose of disaster
management.
(2) The National Disaster Response
Fund shall be made available to the
National Executive Committee to be applied
towards meeting the expenses for emergency
response, relief and rehabilitation in
accordance with the guidelines laid down
by the Central Government in consultation
with the National Authority.”
50. The Central Government by notification dated
27.09.2010 which was published in Gazette
Extraordinary on 28.09.2010 issued under sub-Section
(1) of Section 46 of Act, 2005 constituted “National
Disaster Response Fund”. The notification dated
27.09.2010 reads:
52
“MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 27th September, 2010
s.O.2346(E).- In exercise of the
powers conferred by sub-section (1) of
Section 46 of the Disaster Management Act,
2005 (53 of 2005), the Central Government
hereby constitutes the National Disaster
Response Fund (hereinafter NDRF) for
meeting any threatening disaster situation
or disaster.
[F.No.32-3/2010-NDM-I]
R.K.SRIVASTAVA, Jr. Secy.”
51.
Ministry of Home Affairs (Disaster Management
Division) has issued guidelines on Constitution and
Administration of the National Disaster Response Fund
(NDRF). Section 46(1) as noted above contemplates
crediting of two kind of amounts, i.e., (a) an amount
which the Central Government may, after due
appropriation made by Parliament by law in this
53
behalf provide; and (b)any grants that may be made by
any person or institution for the purpose of disaster
management.
52. The guidelines for constitution and
administration of NDRF have been brought on record by
the petitioner at page 129 of the writ petition. The
guidelines came into force with effect from financial
year 2010-11. Paragraph 3.1 enumerated the calamities
covered under NDRF. Paragraph 3.1 is as follows:
“3.1 Natural calamities of cyclone,
drought, earthquake, fire, flood, tsunami,
hailstorm, landslide, avalanche, cloud
burst and pest attack considered to be of
severe nature by Government of India and
requiring expenditure by a State
Government in excess of the balances
available in its own State Disaster
Response Fund (SDRF), will qualify for
immediate relief assistance from NDRF.”
53. Paragraph 5 of the guidelines deals with
contribution to the NDRF. Paragraphs 5.1 to 5.5 are
as follows:
“5.1 The closing balance of the NCCF at
the end of financial year 2009-10 shall be
54
the opening balance of the NDRF in the
year 2010-11.
5.2 Funds will be credited into the NDRF
in accordance with the provisions of the
Disaster Management Act, 2005.
5.3 The budget provision for transferring
funds to the NDRF as mentioned in para 5.2
above shall be made in the Demand for
grants no. 35- “Transfers to State and UT
Governments” (under non-plan provision).
Releases to State Governments will be made
by the Ministry of Finance from this
provision.
5.4 During the years 2010-15 transfers to
the NDRF established in the Public Account
of India will be made by operating the
following heads of account: Major Head
“2245-Relief on account of Natural
Calamities – 80- General-797-Transfers to
Reserve Funds and Deposit Account’-
Transfer to National Disaster Response
Fund.
5.5 Contributions made by any person or
institution for the purpose of disaster
management will also be credited to the
NDRF.
such
contributions will be prescribed in due
course.”
Modalities
covering
54. Paragraph 7.1 of the guidelines deals with
assessment of relief assistance from the NDRF.
Paragraph 7.1 is as follows:
55
“7.1 Upon a request made by a State not
having adequate balance in its State
Disaster Response Fund (SDRF), Ministry of
Home Affairs or the Ministry of
Agriculture, as the case may be, will
assess whether a case for additional
assistance from NDRF is made out under
these guidelines and the approved items
and norms of assistance under NDRF/SDRF.
The following procedure will be adopted
for making such assessment:
(i)
(ii)
The memorandum of the State
Government will be examined to
assess the likely requirement
of funds as per items and
norms of expenditure under
SDRF/NDRF. If the preliminary
examination reveals that there
are adequate funds in SDRF
with the State for providing
relief as per norms, the State
would be advised accordingly.
If the preliminary examination
reveals that the State is in
need of assistance, a Central
Team will be deputed for
making an on the spot
assessment.
56
(iii) The report of the Central Team
shall be examined by the
National Executive Committee
(NEC) constituted under
section 8 of the DM Act, 2005.
The NEC will assess the extent
of assistance and expenditure
which can be funded from the
NDRF, as per the norms of
NDRF/SDRF,
make
recommendations.
and
(iv)
Based on the recommendations
of NEC, a High Level Committee
(HLC) will approve the quantum
of immediate relief to be
released from NDRF.”
55. The guidelines for administration of the NDRF
have been revised with effect from financial year
2015-16 which have been brought on record at page 154
of the writ petition. Paragraph 3.1 of the guidelines
is same as under guidelines for the financial year
2010-11. Paragraph 4.1 provides:
“4.1 The NDRF will be operated by the
Government of India for the purpose of
providing immediate relief to people
affected by the above mentioned calamities
which are assessed as being of ‘severe
nature’, following the procedure described
in para 7 of these guidelines. NDRF is
classified in the Public Account in the
57
sub-section (b) 'Reserve Funds not bearing
Interest' of the Government of India under
the major head 8235- ‘General and other
Reserve Funds' – 119- National Disaster
Response Fund”.
56. Paragraph 5 deals with contribution to the NDRF
and there are some changes in the guidelines in
paragraph 5. Paragraphs 5.1 to 5.4 of the new
guidelines are as follows:
“5.1 The closing balance of the NDRF at
the end of financial year 2014-15
shall be the opening balance of the
NDRF in the year 2015-16.
5.2 Funds will be credited into the NDRF
in accordance with the provisions of
the section 46 (a) & (b) of Disaster
Management Act, 2005.
5.3 The budget provision for transferring
funds to the NDRF as mentioned in para
5.2 above shall be made in the Demand
for grants no. 35- “Transfers to State
and UT Governments” (under non-plan
provision). Releases to State
Governments will be made by the
Ministry of Finance from this
provision.
58
5.4 During the years 2015-20 transfers to
the NDRF established in the Public
Account of India will be made by
operating the following heads of
account: Major Head “2245-Relief on
account of Natural Calamities – 80-
General-797-Transfers to Reserve Funds
and Deposit Account’-Transfer to
National Disaster Response Fund.”
57.
The above is the scheme. As per paragraph 10 of
the new guidelines, expenditure from NDRF is meant to
assist a State to provide immediate relief in those
cases of severe calamity, where the expenditure
required is in excess of the balance in the State’s
SDRF. The NDRF is a statutory fund required to be
audited by the Comptroller & Auditor General of
India, which was constituted under Act, 2005 and is
still in existence for the purposes as enumerated in
the statute as well as in the guidelines issued under
Act, 2005.
58. We may now notice the PM CARES Fund. Petitioner
has brought on record certain details of PM CARES
Fund as Annexure-P13. The details about the PM CARES
Fund as brought on record as Annexure-P13 of the writ
petition are as follows:
59
“Keeping in mind the need for having a
dedicated national fund with the primary
objective of dealing with any kind of
emergency or distress situation, like
posed by the COVID-19 pandemic, and to
provide relief to the affected, a public
charitable trust under the name of ‘Prime
Minister’s Citizen Assistance and Relief
in Emergency Situations Fund’ (PM CARES
Fund)’ has been set up.
Click here to Donate Online.
Objectives :
• To undertake and support relief or
assistance of any kind relating to a
public health emergency or any other kind
of emergency, calamity or distress, either
man-made or natural, including the
creation or upgradation of healthcare or
pharmaceutical facilities, other necessary
infrastructure, funding relevant research
or any other type of support.
• To render financial assistance, provide
grants of payments of money or take such
other steps as may be deemed necessary by
the Board of Trustees to the affected
population.
• To undertake any other activity, which
is not inconsistent with the above
Objects.
60
Constitution of the Trust :
• Prime Minister is the ex-officio
Chairman of the PM CARES Fund and Minister
of Defence, Minister of Home Affairs and
Minister of Finance, Government of India
are ex-officio Trustees of the Fund.
• The Chairperson of the Board of Trustees
(Prime Minister) shall have the power to
nominate three trustees to the Board of
Trustees who shall be eminent persons in
the field of research, health, science,
social work, law, public administration
and philanthropy.
• Any person appointed a Trustee shall act
in a pro bono capacity.
Other details :
from
• The fund consists entirely of voluntary
contributions
individuals/
organizations and does not get any
budgetary support. The fund will be
utilised in meeting the objectives as
stated above.
• Donations to PM CARES Fund would qualify
for 80G benefits for 100% exemption under
the Income Tax Act, 1961. Donations to PM
CARES Fund will also qualify to be counted
as Corporate Social Responsibility (CSR)
expenditure under the Companies Act, 2013
• PM CARES Fund has also got exemption
under the FCRA and a separate account for
receiving foreign donations has been
opened. This enables PM CARES Fund to
61
accept donations and contributions from
individuals and organizations based in
foreign countries. This is consistent with
respect to Prime Minister’s National
Relief Fund (PMNRF). PMNRF has also
received foreign contributions as a public
trust since 2011.
CLICK HERE TO DONATE ONLINE”
59. From the above details, it is clear that PM CARES
Fund has been constituted as a public charitable
trust. After outbreak of pandemic COVID-19, need of
having a dedicated national fund with objective of
dealing with any kind of emergency or distress
situation, like posed by the COVID-19 pandemic, and
to provide relief to the affected, a fund was created
by constituting a trust with Prime Minister as an ex-
officio Chairman of PM CARES Fund, with other ex-
officio and nominated Trustees of the Fund. The PM
CARES Fund consists entirely of voluntary
contributions from individuals/organisations and does
not get any Budgetary support. No Government money is
credited in the PM CARES Fund.
62
60. After noticing constitution of NDRF as well as PM
CARES Fund now we may notice the contentions raised
by Shri Dave. The submission of Shri Dave is that the
earlier guidelines for administration of NDRF which
came into force with effect from financial year 2010-
11 have been modified by new guidelines with effect
from financial year 2015-16, and now it is not
possible for any person or institution to make
contribution to the NDRF. Shri Dave submits that
paragraph 5.5 of earlier guidelines has been deleted
to benefit the PM CARES Fund so that all
contributions by any person or institution should go
in the PM CARES Fund. Shri Dave submits that deletion
of paragraph 5.5 of earlier guidelines (at page 130)
in the new guidelines (at page 154-155) makes it
clear that now it is not possible for any person or
institution to make any contribution to NDRF.
61.
There are two reasons for not accepting the above
submission. Firstly, paragraph 5.5 of earlier
guidelines which contemplated contributions by any
63
person or institution for the purpose of disaster
management to the NDRF are very much still there in
the new guidelines, which have come into force with
effect from financial year 2015-16. New guidelines
contain the same heading, i.e., “Contribution to the
NDRF” and guideline 5.2 provides “Funds will be
credited into the NDRF in accordance with the
provisions of the Section 46(1)(a) & (b) of the
Disaster Management Act, 2005.” The above guideline
5.2 specifically referred to Section 46(1)(a) & (b)
and Section 46(1)(b) expressly provides that any
grants that may be made by any person or institution
for the purpose of disaster management shall be
credited into the NDRF. The submission that after the
new guidelines, it is not possible for any person or
institution to make any contribution to the NDRF is,
thus, misconceived and incorrect. According to the
statutory provisions of Section 46 as well as new
guidelines enforced with effect from financial year
64
2015-16 any person or institution can still make
contribution to the NDRF.
62.
Secondly, the PM CARES Fund has been constituted
in the year 2020 after outbreak of pandemic COVID-19
whereas the new guidelines came into force with
effect from 2015-16, on which date the PM CARES Fund
was not in existence, hence, the submission that new
guidelines were amended to benefit the PM CARES Fund
is wholly misconceived.
63. Another limb of submission of Shri Dave is that
although the Government of India vide its letter
dated 14.03.2020 has decided to treat COVID-19 as a
notified disaster for the purpose of providing
assistance under SDRF but no similar notification has
been issued for the purpose of providing assistance
for COVID-19 under NDRF. The notification dated
14.03.2020 has been brought on record as Annexure-P10
of the writ petition which reads as follows:
65
“No.33-4/2020-NDM-I
Government of India
Ministry of Home Affairs
(Disaster Management Division)
C-Wing, 3rd Floor, NDCC-II
Jai Singh Road, New Delhi -110001
Dated 14.03.2020
To
The Chief Secretaries
(All States)
Subject: Items and Norms of assistance
from the State Disaster Response
Fund (SDRF) in wake of COVID-19
Virus Outbreak
Sir/Madam
I am directed to refer this Ministry’s
letter No.32-7/2014 dated 8th April, 2015
on the above mentioned subject.
2.
The Central Government, keeping in
view the spread of COVID-19 virus in India
and the declaration of COVID-19 as
pandemic by the World Health Organisation
(WHO), by way of a special one time
dispensation, has decided to treat it as a
notified disaster for the purpose of
providing assistance under SDRF. A list
of items and norms of assistance for
containment of COVID-19 Virus in India
eligible from SDRF is annexed.
Yours faithfully,
66
(Sanjeev Kumar Jindal)
Joint Secretary to Government of India
Tel: 23438096
Copy to AS(UT), MHA for making similar
provisions for utilization of UT Disaster
Response Funds by the Union Territories.
CC for information: PS to HM/MOS(N)/HS”
64. After issuance of the above notification, the
Government of India, Ministry of Home Affairs
(Disaster Management Division) issued order of
03.04.2020 on the subject: “Advance release of
Central share from State Disaster Risk Management
Fund (SDRMF) for the year 2020-21”. By the said order
the Central Government has released first instalment
of Rs. 11,092/- crores out of Rs.22,184/- crores
which was the Central Share of SDRMF. All States
have been allocated different amounts for the purpose
of providing assistance under SDRMF. Annexure to the
said notification is at page 161, which indicates
that maximum grant allocated was to the State of
Maharashtra as Rs.1,611/- crores as first instalment
67
and minimum amount to State of Goa, i.e., Rs.6/-
crores by the Centre. The notification dated
14.03.2020 clearly permits providing the assistance
under SDRMF for COVID-19. In event, any State
expenditure is in excess of the balance in the
State’s SDRMF, the State is entitled for the release
of fund from NDRF as it is clear from new guidelines
filed at pages 154 to 158 of the writ petition. The
submission of the petitioner that NDRF cannot be used
for any assistance for COVID-19, thus, cannot be
accepted.
65. There is one more aspect of the matter which
needs to be noted. When the Centre is providing
financial assistance to the State to take measures to
contain COVID-19, as we have noticed above that by
order dated 03.04.2020 first instalment of Rs.
11,092/- crores which is the Central Share to the
SDRMF has been given and there is nothing on record
that any State has exceeded the expenditure in excess
68
of the balance in the State’s SDRMF, there is no
occasion of asking more fund by the State from NDRF.
When the Central Government is providing financial
assistance to the States to contain COVID-19 it is
not for any PIL petitioner to say that Centre should
give amount from this fund or that fund. The
financial planning is in the domain of the Central
Government, which financial planning is made after
due deliberation and consideration. We, thus, do not
find any substance in the submission of the
petitioner that there is any statutory
restriction/prohibition in utilization of NDRF for
COVID-19. More so when sub-section (2) of Section 46
specifically provides that NDRF shall be made
available to the National Executive Committee to be
applied towards meeting the expenses for emergency
response, relief and rehabilitation in accordance
with the guidelines laid down by the Central
Government, the NDRF can be used for containment of
COVID-19.
69
66. Further as observed above, it is for the Central
Government to take the decision as from which fund
what financial measures are to be taken and it is
neither for PIL petitioner to claim that any
financial assistance be made from particular fund nor
this Court to sit in judgment over the financial
decisions of the Central Government.
67.
The PM CARES Fund is a public charitable trust
and is not a Government fund. The charitable trusts
are public trusts. Black’s Law Dictionary, Tenth
Edition defines charitable trust in following words:
“charitable trust. A trust created to
benefit a specific charity, specific
charities, or the general public rather
than a private individual or entity.
Charitable trusts are often eligible for
favorable tax treatment.”
68. The mere fact that administration of the Trust is
vested in trustees, i.e., a group of people, will not
70
itself take away the public character of the Trust as
has been laid down in <cite>Mulla Gulam Ali & Safiabai D.
Trust Vs. Deelip Kumar & Co., (2003) 11 SCC 772</cite>. In
paragraph 4, this Court laid down:
“4. The mere fact that the control in
respect of the administration of the Trust
vested in a group of people will not
itself take away the public character of
the Trust……………………………..”
69. The contributions made by individuals and
institutions in the PM CARES Fund are to be released
for public purpose to fulfill the objective of the
trust. The PM CARES Fund is a charitable trust
registered under the Registration Act, 1908 at New
Delhi on 27.03.2020. The trust does not receive any
Budgetary support or any Government money. It is not
open for the petitioner to question the wisdom of
trustees to create PM CARES fund which was
constituted with an objective to extend assistance in
the wake of public health emergency that is pandemic
COVID-19.
71
70.
Shri Dave during submissions has fairly submitted
that he is not questioning the bona fide of
constitution of PM CARES Fund. His submission is
that NDRF is audited by CAG but PM CARES Fund is not
audited by CAG rather by a private Chartered
Accountant. The nature of NDRF and PM CARES Fund are
entirely different. The guidelines issued under Act,
2005 with regard to NDRF specifically provides for
audit of the NDRF by the Comptroller & Auditor
General of India whereas for public charitable trust
there is no occasion for audit by the Comptroller &
Auditor General of India.
71.
We may notice one more aspect with regard to
COVID-19. We have noticed above that guidelines which
were issued for constitution and administration of
NDRF and State’s SDRMF, the guidelines provided
utilization of fund for limited calamities, which did
not include any biological and public health
emergency. We have already noticed Clause 3.1 of
72
guidelines for administration of NDRF, which did not
provide for the calamities which cover the biological
and public health emergency. Thus, under the
guidelines which were in existence with effect from
financial year 2015-16 neither NDRF nor SDRF covered
the biological and public health emergencies. It was
only by notification dated 14.03.2020 that COVID-19
was treated as notified disaster for the purpose of
providing assistance under SDRF. Obviously prior to
this notification dated 14.03.2020 no contribution by
any person or institution in the NDRF could have been
made with respect to specified disaster, namely,
biological and public health emergency like COVID-19,
Outbreak of COVID-19 in India as well as other
countries of the World required immediate enhancement
in the infrastructure of medical health and creation
of fund to contain COVID-19. At this need of the hour
no exception can be taken to the constitution of a
public charitable trust, namely, PM CARES Fund to
have necessary financial resources to meet the
73
emergent situation.
72.
The NDRF and PM CARES Fund are two entirely
different funds with different object and purpose. In
view of the foregoing discussions, we answer question
Nos.3, 4 and 5 in following manner:
Answer 3.
The Union of India can very well
utilize the NDRF for providing assistance in the
fight of COVID-19 pandemic by way of releasing
fund on the request of the States as per new
guidelines.
Answer 4. Any contribution, grant of any
individual or institution is not prohibited to be
credited into the NDRF and it is still open for
any person or institution to make contribution to
the NDRF in terms of Section 46(1)(b) of the Act,
2005. The contribution by any person or by any
74
institution in PM CARES Fund is voluntary and it
is open for any person or institution to make
contribution to the PM CARES Fund.
Answer 5.
The funds collected in the PM CARES
Fund are entirely different funds which are funds
of a public charitable trust and there is no
occasion for issuing any direction to transfer
the said funds to the NDRF.
73.
In view of the foregoing discussions, the prayer
‘a’ and ‘b’ made in the writ petition are refused.
With respect to prayer ‘c’, we make it clear (i) that
there is no statutory prohibition for the Union of
India utilizing the NDRF for providing assistance in
the fight of COVID-19 in accordance with the
guidelines issued for administration of NDRF; (ii)
there is no statutory prohibition in making any
contribution by any person or institution in the NDRF
as per Section 46(1)(b)of the Act, 2005.
75
74.
The prayer of the petitioner to direct all the
funds collected in the PM CARES Fund till date to be
transferred to the NDRF is refused.
75. Subject to clarification of law as made above,
the writ petition is dismissed.
|
Respondent No. 1 filed Writ Petition No. 12564 of 2006
in the High Court of Karnataka for quashing the preliminary
Notification dated 06.02.2002 issued under Section 17(3) of
the Karnataka Urban Development Authority Act, 1987
(hereinafter referred to as ‘Act’) and final declaration under
Section 19 (3) of the Act dated 27.11.2003. The said
1
Page 1
Notification pertained to acquisition of 54 acres and 39
guntas which included 2 acres and 36 guntas in Survey No.
311/A/1 in Byridevana Koppa Village, Hubli Taluk
belonging to the First Respondent. The said Writ Petition
was allowed by a judgment dated 02.04.2009 against which
Writ Appeal No. 6258 of 2009 was filed by the Appellant. A
Division Bench of the High Court dismissed the Writ Appeal
by a judgment dated 24.03.2010. Aggrieved by the said
judgment, the Appellant has approached this Court by filing
this Appeal.
2.
The First Respondent filed the Writ Petition stating
that his family owns 2 acres and 35 guntas in Survey No.
311/A/1 in Byridevana Koppa Village, Hubli Taluk in which
there were bore wells, cattle sheds, residential houses and
standing trees. It was averred in the Writ Petition that a
Notification under Section 17(3) of the Act was issued on
06.02.2002 but no notice was personally served on him. It
was also stated in the Writ Petition that a Notification under
Section 19(1) of the Act was issued on 07.10.2003 which
was published in the Karnataka Gazette on 17.11.2003. It
2
Page 2
was stated in the Writ Petition that the First Respondent
was not aware of the publication in the Gazette and that the
Notification issued under Section 17 and the declaration
issued under Section 19 of the Act were not served upon
him. He was also unaware of the award proceedings. The
First Respondent further stated in the Writ Petition that he
came to know about the preliminary Notification only in
August, 2005 when the officials of the Appellant visited the
site and informed him about the acquisition. The First
Respondent also stated in the Writ Petition that immediately
after he came to know about the acquisition proceedings he
approached the authorities and found that no layout was
prepared and finalized. The First Respondent averred in the
Writ Petition that the preliminary Notification under Section
17(3) of the Act was prepared without complying with the
provisions of Section 15(1), 16 and 17 (1) of the Act. He
further stated that due to non service of the notice, he lost
an opportunity to file his objections. On the basis of the
averments mentioned above, the First Respondent sought
for quashing of the Notification issued under Section 17(3)
3
Page 3
and the declaration issued under Section 19(3) of the Act.
3.
The Appellant filed its Statement of Objections in Writ
Petition No. 12654 of 2006 in which it was stated that there
were no structures on the acquired land and possession of
the said land was taken on 02.09.2005. A Notification
under Section 16(2) of the Land Acquisition Act, 1894 was
published in the Gazette on 22.12.2006. It was also stated
that personal notice was issued to the First Respondent on
11.09.2001 but he refused to receive the notice on
13.09.2001. The said notice was also published in
Samyukta Karnataka Daily Newspaper on 26.07.2001 and
Vijaya Karnataka Daily Newspaper on 27.07.2001. It was
further averred that the First Respondent was aware of the
Notification under Section 19(1) of the Act dated 07.10.2003
which is evident from the fact that he gave an application
dated 30.01.2004 for dropping the acquisition proceedings.
The said application was rejected on 28.02.2004. According
to the Appellant, the acquisition Notification issued under
Section 17(3) and the declaration issued under Section
19(3) of the Act were issued after complying with the
4
Page 4
relevant provisions of the Act and that interference by the
High Court was unwarranted.
4.
By a judgment dated 02.04.2009, a learned Single
Judge of the Karnataka High Court allowed the Writ Petition
by holding that the objections filed by the First Respondent
were not considered before issuance of the final declaration
and that the First Respondent was in possession of the
land. The learned Single Judge recorded a finding that the
property in question is situated in a corner of the layout
and the scheme was not implemented in respect of the land
belonging to the First Respondent.
5.
The Division Bench confirmed the judgment of the
learned Single Judge by holding that a perusal of the record
indicated receipt of objections which were not considered by
the Appellant. The Division Bench held that only a xerox
copy of the original Mahazar drawn at the time of taking
possession was produced in the Court. The Division Bench
rejected the submission of the Appellant that possession of
the land was taken. The Division Bench further found that
the scheme remained unimplemented in respect of the land
5
Page 5
in dispute.
6. Mr. Basavaprabhu S. Patil, learned Senior Counsel
appearing for the Appellant submitted that the findings of
the High Court are contrary to the record. He submitted
that the question of consideration of objections of the First
Respondent did not arise as the averments in the Writ
Petition are to the effect that he was not aware of the
acquisition proceedings till the middle of August, 2005 and
that he lost an opportunity of filing his objections. He took
us through the minutes of the meeting of Hubli-Dharwad
Urban Development Authority dated 06.02.2002 in which
the recommendation for acquisition of the land was
approved. The total land under acquisition for development
of a housing scheme was shown as 54 acres and 39 guntas.
An extent of 2 acres 36 guntas in Survey No. 311/A/1,
belonging to the First Respondent forms part of 54 acres
and 39 guntas. It was stated in the said minutes that the
objections submitted by the land owners/interested persons
were considered. It was clearly mentioned in the said
minutes that the objections of farmers and interested
6
Page 6
persons in respect of lands admeasuring 32 acres and 28
guntas were examined by a one man committee. The First
Respondent’s land was not part in the said land of 32 acres
and 28 guntas. He also referred to the draft award dated
31.01.2005 in which the names of 13 persons who filed
their objections were mentioned. The name of the First
Respondent was not found therein.
7. Mr. Patil submitted that the authority considered all
the objections that were filed by the landholders. The High
Court went wrong in holding that the objections filed by the
First Respondent were not considered. It was also
submitted by Mr. Patil that the Mahazar that was produced
by the Appellant before the High Court clearly showed that
possession was taken. He also submitted that the
Notification under Section 16(2) of the Land Acquisition Act,
1894 is conclusive proof of possession being taken by the
authority. According to Mr. Patil, the judgment of the High
Court suffers from apparent errors and is liable to be set
aside.
8. Mr. Balaji Srinivasan, Advocate appearing for First
7
Page 7
Respondent submitted that the High Court was right in
holding that the objections filed by the Respondent were not
considered by the authorities. He also submitted that the
landowners are in possession of the land even now.
According to him, the High Court rightly refused to consider
the xerox copy of the Mahazar produced by the Appellant to
show that possession was taken. He further submitted that
the scheme was not implemented in respect of the land in
dispute. Pursuant to the liberty given by this Court, the
First Respondent filed his written submissions in which he
stated that there is a farm house along with a cattle shed on
the land. A leave and licence agreement dated 16.12.2009
was filed along with written submissions to show that a
mobile tower is erected on the land. The Respondent further
stated in the said written submissions that the legal heirs of
the original Respondent furnished their Statement of
Objections dated 29.08.2001 to the Counsel. The said
objections did not receive any consideration by the
authorities. The Respondent is still in possession of the
land which is not integral to the housing scheme. The
8
Page 8
Respondent submits that the judgment of the High Court be
upheld.
9.
The High Court quashed the Notification dated
05.02.2002 and declaration dated 27.11.2003 for the
reasons that the objections filed by the landowners were not
considered before issuance of the final declaration, that the
possession of the land was not taken by the authorities and
that the scheme was not implemented in respect of the
property in question. The First Respondent pleaded in the
Writ Petition that he was not aware of the Notification
issued under Section 17(3) and the declaration issued
under Section 19(3) of the Act. It was further averred in
the Writ Petition that he was deprived of an opportunity of
filing objections as notice was not given to him personally.
We find force in the submission of Mr. Patil that the
question of consideration of the objections which were not
filed does not arise. In view of the findings recorded by the
High Court that a perusal of the record disclosed that
objections were filed by the Respondent and were not
considered, we summoned and examined the relevant
9
Page 9
record carefully.
The minutes of the meeting of
Hubli-Dharwad Urban Development Authority held on
06.02.2002 was filed as Annexure P-2 along with the
written submissions of
the Appellant.
The
recommendations of the Chairman of the Hubli-Dharwad
Urban Development Authority for acquisition of lands of
Byridevana Koppa Village were discussed in the said
meeting. The First Respondent’s land was part of the total
extent of 54 acres and 39 guntas of land which was sought
to be acquired for the housing scheme. It was stated in the
minutes that objections filed by the landowners/interested
persons of the lands included in the Notification issued
under Section 17(3) of the Act were considered by the
Chairman of the Hubli-Dharwad Urban Development
Authority. It is clear from the said minutes that out of 19
blocks of land which were acquired, landowners of only 10
blocks filed their objections which were considered. Survey
No. 311/A/1 does not find place in the said 10 blocks. A
draft award dated 31.01.2005 was also placed on record by
the Appellant in which the names of the landholders/
10
Page 10
landowners whose lands were acquired and who filed
objections were given. The Respondent’s name does not
find place in the said list of persons who had submitted
their objections. The High Court has committed an error in
holding that the First Respondent filed his objections which
were not considered.
10. Admittedly, the land was acquired for a housing
scheme. It was submitted by the Appellant that plots have
already been allotted. The land belonging to the First
Respondent has been earmarked for civic amenities. In
view of the interim order of status quo passed by the High
Court on 13.09.2006, no development could take place on
the land. The High Court ought not to have held that the
Appellant was responsible for non-implementation of the
scheme qua the land of the Respondent. It was submitted
by the Appellant that the land is very much needed for
development of civic amenities.
11. A Panchnama was filed by the Appellant to show that
possession of the land was taken on 02.09.2005 in the
presence of five Panchas. A Notification under Section 16(2)
11
Page 11
of the Land Acquisition Act, 1894 was published in the
Karnataka State Gazette on 21.12.2005. It is no more res
integra that a Notification issued under Section 16 (2) of the
Land Acquisition Act, 1894 shall be evidence of the fact that
possession was taken, though not conclusive. The
prevaricating stands taken by the First Respondent about
the possession of the land does not help his cause. On
30.01.2004, the power of attorney holder of the First
Respondent submitted a representation to the Chairman of
the Hubli-Dharwad Urban Development Authority
requesting for exemption of the land from acquisition. He
stated in the said representation that he was running a
ginning factory on the said land. He also stated that he
employed 40 workmen for whose housing the land was
needed. The said representation was rejected by the
Commissioner,
Hubli-Dharwad Urban Development
Authority on 28.08.2004 by stating that the acquisition
proceedings were at a final stage and so the request cannot
be acceded to. In the written submissions filed by the
Respondent, it is stated that a farm house along with a
12
Page 12
cattle shed and a mobile tower exist on the land. Some
photographs and a lease agreement have been filed in
support of the said averments. The submission made by
the First Respondent regarding the non-consideration of his
objections is contrary to the pleading in the Writ Petition.
The First Respondent is also guilty of taking contradictory
stands in the matter of possession. We see no reason to
doubt the Panchnama evidencing taking over of possession.
In addition, the Notification under Section 16(2) of the Land
Acquisition Act, 1894 was published in the Gazette. Any
attempt made by the First Respondent to show that he is
still in possession is of no avail.
12.
In view of the above, the judgment of the High Court is
set aside and the Appeal is allowed.
Page 13 |
2.
The appellantState of Kerala is assailing the order
dated 10.07.2015 passed by the High Court of Kerala at
Ernakulam in W.A. No.369/2011 and W.A. No. 375/2011.
The said appeals had arisen out of the proceedings in Writ
Petition No.1207/2005 wherein through the order dated
17.01.2011, the petition was disposed of to the extent of
quashing the order declining value of usufructs (Ex.41). The
order (Ex.39) by which the lease in favour of Respondent
had been terminated was upheld. It is in that view, the writ
petitionerM/s. Joseph & Company as also the respondent
State of Kerala had filed the Writ Appeals to the extent they
were aggrieved. The learned Division Bench of the High
Court through the impugned order dated 10.07.2015 has
allowed the appeal filed by M/s. Joseph & Company, thereby
setting aside the order terminating the lease and the appeal
filed by State of Kerala was dismissed. It is in that light, the
appellantState of Kerala claiming to be aggrieved is before
this court.
3.
The genesis of the case is that erstwhile Travancore
Cochin Government had by a notification in the year 1953
auctioned certain abandoned portions of Beatrice estate.
One Mr. P.I. Josephresponded to the said notification and
offered his bid to an extent of 246.26 acres out of the South
Block and took possession on 10.05.1955. However, no lease
agreement was entered into between him and the
government. In the meanwhile, the said Mr. P.I. Joseph
assigned the said property in favour of Mr. K.K. Joseph.
Pursuant to such transaction dated 28.02.1974 between Mr.
P.I. Joseph and Mr. K.K. Joseph, the Government of Kerala,
executed a lease deed dated 15.12.1979 in favour of Mr. K.K.
Joseph. Though the lease deed was executed in favour of Mr.
K.K. Joseph, it is contended by the lessee that Mr. K.K.
Joseph was representing the partnership firm registered in
the name and style M/s. Joseph & Company, of which he
was the Managing Partner.
4.
The said Mr. K.K. Joseph thereafter executed a
registered sale deed dated 16.12.1983 transferring an extent
of 50 acres from the land leased in his favour, to one Mr.
Raghavan. Subsequent thereto, Mr. K.K. Joseph is stated to
have retired from the partnership firm after which Ms. Meera
Scaria had become the Managing Partner representing the
firm. The said Ms. Meera Scaria as the Managing Partner
had addressed a letter dated 26.06.1990 seeking leave to
rectify the defect of transferring a portion of the lease land to
Mr. Raghavan. The said request had not been considered
since the government through their letter dated 27.05.1989
had indicated the intention to terminate the lease.
Subsequent thereto the notice dated 19.02.1992 intimated
the lessee about the order to terminate the lease and to
prepare the inventory to take over possession.
5. But the same was kept in abeyance as certain events of
a general consideration regarding regularisation of all leases
in the area was under process. However, said process had
come to an end on 26.02.1999 whereby the government had
cancelled its earlier proposal of a general regularisation
which was under consideration. In that background, the
notice dated 15.11.1999 was issued to Mr. K.K. Joseph to
show cause why the lease in respect of the whole area of
246.50 acres should not be terminated as contemplated
under clause 14 of the lease deed. Mr. K.K. Joseph replied to
the same on 29.11.1999 indicating that he has retired from
the partnership firm and that Ms. Meera Scaria is the
present Managing Partner who is to be notified. In the said
process, the first round of litigation commenced challenging
the action of the State Government to terminate the lease.
The Writ Petitions bearing O.P. No. 20508/2002 and O.P.
No. 30224/2002 filed by M/s. Joseph & Company and Mr.
Raghavan respectively were set in motion. The said process
after the Writ Appeal had resulted in the proceedings before
this Court in C.A. No. 4169/2004. This Court through the
order dated 16.07.2004 permitted the appellantState of
Kerala to issue fresh show cause notice regarding proposed
termination of lease and the respondents were permitted to
file their reply to the show cause notice. In the above
background, the present round of proceedings commenced
with the issue of the notice dated 29.07.2004 and
conclusion of the process.
6.
In the said notice the appellantState of Kerala referred
to two aspects to allege breach of terms of the lease. The main
aspect alleging breach is in relation to entire leased property.
It is alleged that Mr. K.K. Joseph had transferred his
leasehold right to M/s. Joseph & Company without the
approval of the lessor with the intention to nullify the effect of
clause 14 of the lease deed and he has thereafter retired from
the firm in 1988. The other aspect alleging breach of the term
is that an extent of the leased land measuring 50 acres has
been sold without consent of the lessor, to one Mr. Raghavan.
It is in the said premise, the lease was sought to be
terminated. The respondentM/s. Joseph & Company
submitted a detailed reply dated 14.08.2004 seeking to justify
their action and to contend that they had not committed
breach of the terms of lease deed. The respondent was also
provided the opportunity of hearing, pursuant to which an
order dated 26.11.2004 was passed whereby the termination
of the lease in respect of the entire extent measuring 246.26
acres of reserve forest land was confirmed.
7.
The respondent being aggrieved by the same had
preferred the Writ Petition as indicated supra. The learned
Single Judge did not interfere with the order terminating the
lease and the writ petition was dismissed to that extent.
Insofar as the aspect relating to the breach alleged regarding
the transfer of lease to M/s. Joseph & Company by Mr. K.K.
Joseph, the various circumstances were referred more
particularly the documents which were at exhibits P10, P11,
P12, P13 and P16 to P20 to indicate that the government had
for all intents and purposes treated M/s. Joseph & Company
as the lessee under the lease deed which was Exhibit P7 to
the Writ Petition. However, in respect of the transfer of 50
acres in favour of Mr. Raghavan, the learned Judge was of the
opinion that the finding relating to breach due to such
transaction being a finding of fact, did not call for interference
in the Writ Petition.
8.
The learned Division Bench had negatived the
challenge to the first part by the State of Kerala and the
conclusion of the learned Single Judge that M/s Joseph &
Company is the lessee was held to be valid and was not
interfered. Further, insofar as the sale in favour of Mr.
Raghavan, the learned Division Bench had taken note of
Clause 12 contained in the lease deed between the appellant
State of Kerala and M/s Joseph & Company which provided
that the default if any committed could be remedied if the
lessee is put on notice. The default can be confirmed only if
the same is not remedied despite notice. It is in that view, the
learned Division Bench was of the view that the requirement
in Clause 12 of the lease agreement had not been complied
with by the appellantState of Kerala. Therefore, the learned
Division Bench set aside the order terminating the lease.
9.
We have heard Mr. Jaideep Gupta, learned senior
counsel for the appellantState of Kerala, Mr. Joseph Markos,
learned senior counsel and Mr. Thomas P Joseph, Learned
Senior Advocate on behalf of the respondents and perused
the appeal papers including the writ appeal records which
had been secured from the High Court.
10. On the first aspect relating to the breach alleged in
view of the transfer of lease in favour of M/s Joseph &
Company by Mr. K.K. Josephthe lessee, Mr. Jaideep Gupta,
learned senior counsel has taken us through the documents
to indicate the sequence that the property in fact was
auctioned in favour of Mr. P.I. Joseph who had transferred
the lease in favour of Mr. K.K Joseph through the sale deed
dated 28.02.1974. Though the government has subsequently
validated the said transaction by executing a lease deed in
favour of Mr. K.K. Joseph, the subsequent transfer by Mr.
K.K Joseph to M/s Joseph & Company, a new lessee without
prior consent of the government would constitute breach is
his contention.
11. Having noted the contention, we find that the said
issue need not detain us for long. At the outset, a perusal of
the lease deed dated 15.12.1979 would no doubt disclose that
Mr. K.K. Joseph in his individual name is referred to as the
lessee of the other part. The recital in the lease deed however
depicts that the earlier transaction in favour of Mr. P.I.
Joseph and the document executed by Mr. P.I Joseph in
favour of Mr. K.K Joseph to assign the lease is referred in the
document. In that backdrop, a reference to the sale deed
dated 28.02.1974 by which the sale was made by Mr. P.I.
Joseph to Mr. K.K. Joseph indicates that the purchaser Mr.
K.K. Joseph has been described as the Managing Partner,
M/s Joseph & Company, a registered partnership firm. The
said aspect would exfacie indicate that the contention of the
appellant that M/s Joseph & Company had come into
existence subsequently as a ploy to overcome and defeat the
bar contained in Clause 14 to the lease deed cannot be
accepted. Further, as already taken note, the learned Single
Judge as also the learned Division Bench has referred to the
various other documents more particularly at Exhibits P10,
P11, P12, P13 and P16 to P20 in the writ proceeding records
to indicate that the Government, for all intents and purposes
had treated M/s. Joseph & Company as the lessee. Therefore,
to the said extent on the first aspect, the same does not
constitute breach. Hence the conclusion reached by the High
Court on that aspect does not call for interference.
12.
The next aspect which arises for consideration is as to
whether the sale to an extent of 50 acres from out of the lease
area would amount to breach of clause 14 of the lease deed.
For better appreciation, it would be appropriate to take note
of Clause 12 and 14 in the lease deed dated 15.12.1979,
which have been referred. The same read as hereunder:
“12. In the event of the lessee making default in the
observance of fulfillment of any of the covenants herein
contained the Lessor shall be at liberty at any time,
thereafter, after giving notice to the lessee and hearing
him in person or through his agent or vakil duly
appointed about the failure of the lessee to remedy such
default that may be reported to the Lessor from time to
time by the Chief Conservator of Forests, to terminate the
lease and lessee shall forthwith vacate the land hereby
leased and demised and notwithstanding such
termination of this lease, the lessee shall be liable for any
loss which the lessor may sustain by reasons of such
default and all such improvements made by the Lessee
on the land hereby leased and demised as exist at the
time of vacating the same must be left intact and no
compensation can be claimed by the lessee for such
improvements.”
“14. The lessee shall not be entitled to sublet or assign
his interest in the said lease except with the previous
permission in writing of the lessor.”
13. From a perusal of the relevant clauses in the lease
deed it is seen that clause 14 thereof provides that the
lessee shall not be entitled to sublet or assign his interest in
the said lease except with the previous permission in writing
obtained from the lessor. In that backdrop, the breach
alleged against the respondent is that the lessee has
assigned the interest in the leased land to an extent of 50
acres in favour of Mr. Raghavan without the previous
permission of the lessor. The fact that such sale has taken
place cannot be in dispute nor is it in dispute. The said
assignment has been made under the registered sale deed
dated 16.12.1983. The question therefore is; whether the
same would constitute breach of the terms in the lease deed
so as to entail termination of the lease.
14. Mr. Joseph Markos, learned senior counsel contended,
though such sale deed was executed, the possession of the
property had not been handed over to Mr. Raghavan and the
lessee M/s. Joseph & Company had continued to pay the
lease rentals in respect of the entire property. It was next
contended that even assuming that the execution of the
document had constituted default, the lessee ought to have
been notified to remedy such default and only if the same
was not done, the lease could be terminated. In that regard,
the learned senior counsel contended that the lessee had
submitted a letter to the government on 17.03.1990 seeking
to rectify the default and if the same was accepted in terms
of Clause 12, the breach contemplated in Clause 14 would
not survive. It is his further contention that the right to
forfeit the lease, in the present circumstance, would fall
under Section 111(g) of the Transfer of Property Act (‘TP Act’
for short) which calls for strict construction against the
lessor. In that event the termination of the entire lease
would not be sustainable for breach in respect of a portion
of the leased land. Reference is also made to Section 112 of
the T.P. Act to contend that the acceptance of lease rentals
by the lessor, including for the said extent of 50 acres sold
to Mr. Raghavan would constitute waiver of forfeiture.
15. While taking note of the contention on behalf of the
respondentM/s. Joseph & Company regarding the benefit
available to them under Clause 12 of the lease deed which
had not been complied by providing an opportunity to
remedy the default, it is necessary to note as to whether
such benefit is available to rectify the breach alleged under
Clause 14 of the lease deed as well and whether Clause 12
makes it mandatory to issue notice to rectify before action is
taken. In order to, gather the intention of the parties, the
nature of the transaction and the document as a whole is
necessary to be considered. While on this aspect, what is
striking to be noted is that the word employed in Clause 12
is ‘default’ and not breach. If this aspect is taken note and
the remaining terms contained in the lease deed are taken
note, keeping in view the admitted position that the leased
land is situate in a reserve forest, the clauses in the
agreement commencing from clause No. 5 to 11 indicates
that the right reserved by the lessor and the obligations
imposed on the lessee are with regard to the compliance, to
retain the characteristics of forest area and continue such
other activities including collection of minor forest produce
and the forest officials have been granted the right to
regulate the same notwithstanding plantation was the
permitted use.
16.
If in that context, Clause 12 is taken note, it indicates
that the issue of notice is contemplated in the event of the
lessee committing default and the liberty to terminate the
lease is exercised. The concession provided is to rectify the
default before the notice is issued. If there is failure of the
lessee to remedy such default that may be reported to the
lessor from time to time by the Chief Conservator of Forests.
Before termination of the lease a notice is to be issued and
be heard about the default if the default has not been
remedied. The same would clearly indicate that the default
referred to, the issue of notice there for and the fact that the
same is based on the report to the lessor (State of Kerala)
from Chief Conservator of Forests is that the rectification
permitted is in respect of the default relating to deviation
from the obligations contained in the covenants relating to
maintaining the nature of the property and default should
be of rectifiable nature. The Dictionary meaning of ‘default’
is; failure to fulfil an obligation, while the meaning of
‘breach’ is an act of breaking a law, agreement or code of
conduct. If the said distinction is kept in view, the breach if
committed by subletting or assigning as provided in Clause
14, the same would lead to its consequences and the liberty
to remedy the same is not mandatory. All that Clause 12
signifies is that if default is reported and if such default is
not remedied then termination can be made after issue of
notice and hearing. The cause for termination will be the
default and permitting to remedy the same is only an
indulgence to be shown. Therefore, the learned Division
Bench was not justified in its conclusion that the nonissue
of notice and not providing opportunity to remedy the
default is fatal. In the instant facts, the reading of the lease
deed as a whole would indicate that the right reserved to the
lessor under Clause 14 is independent of Clause 12 and if
the breach of that nature occurs, it is irreversible and it will
have to be taken to its logical conclusion unless the lessor
waives the right thereunder.
17. For better appreciation on the legal contention, we take
note of Section 111(g) and Section 112 of the T.P. Act which
was referred. They read as hereunder:
“111. Determination of lease — A lease of immoveable
property determines—
(a) xxxxxxx
(b) xxxxxx
(c) xxxxxx
(d) xxxxxxx
(e) xxxxxxx
(f) xxxxxxxx
(g) by forfeiture; that is to say, (1)in case the lessee
breaks an express condition which provides that, on
breach thereof, the lessor may reenter; or (2) in case
the lessee renounces his character as such by setting up
a title in a third person or by claiming title in himself; [or
(3) the lessee is adjudicated an insolvent and the lease
provides that the lessor may reenter on the happening of
such event]; and in [any of these cases] the lessor or his
transferee [gives notice in writing to the lessee of] his
intention to determine the lease;
112. Waiver of forfeiture —A forfeiture under section
111, clause (g) is waived by acceptance of rent which has
become due since the forfeiture, or by distress for such
rent, or by any other act on the part of the lessor showing
an intention to treat the lease as subsisting:
Provided that the lessor is aware that the forfeiture
has been incurred:
Provided also that, where rent is accepted after the
institution of a suit to eject the lessee on the ground of
forfeiture; such acceptance is not a waiver.”
18. The contention of the learned senior counsel for the
respondent that a question of law could be raised at any
stage is well taken and we do not see the reason to refer to
the precedents relied on that proposition. Even that be so,
the provisions contained in Sections 111 and 112 of the T.P.
Act though taken note, in our opinion, the same cannot be
considered in abstract without reference to the factual
foundation. So far as the contention that the lessee had
continued to pay the lease rentals in respect of the entire
property despite the sale of 50 acres to Mr. Raghavan,
whether such acceptance of the lease rentals by the lessor
was with knowledge of default by condoning the breach, is a
question of fact which will have to be urged in the original
proceedings and the material will have to be placed on
record so as to enable the original authority to take a
decision on that aspect and render a finding on fact so that
the Court at a later stage in the process of judicial review
can reassess the same and determine as to whether the
benefit of Section 112 T.P.Act will be available. Therefore, in
the instant case, the contention that the lease rentals were
being paid in respect of the entire extent cannot be accepted
outright as no contention was urged and details were not
laid in the original proceedings. Further, in a matter of the
present nature when the entire lease area measured vast
extent of 246.26 acres and the allegation is of parting with
the lease hold right of 50 acres from such lease area and in
that circumstance when the lease rental in any event was
being paid to the remaining extent of 196.26 acres, the
lumpsum payment of lease rental cannot be taken
advantage of to contend that the lease rental was continued
to be paid and seek waiver of forfeiture.
19. When there was breach providing the right to
terminate the lease in respect of the entire leased land, even
if the lease rental paid by the lessee has been accepted by
the appellantlessor, it has not been shown that the
requirement of the conditions in the proviso to Section 112
of the T.P. Act is satisfied. In the present situation, the land
is leased by the government and when the breach had
occurred the competent authority had issued the notice and
the proceedings was initiated. Once the proceedings had
been initiated even if the lease rental was received the same
is saved under the second proviso. Further the situation is
also that the payment of the rental made to the government
would in any event be accepted as different functions are
performed by different offices and any amount tendered will
be received. That cannot give any advantage to the lessee
merely because the rent has been tendered in the
government office and the same has been innocuously
accepted without there being specific reference to waiver.
20. On the question of waiver, it would be profitable to
refer to the decision of this court in the case of <cite>Sarup
Singh Gupta vs. S. Jagdish Singh and Others (2006) 4
SCC 205</cite> wherein the contention relating to waiver due to
acceptance of rent was considered, though in the context of
Sections 111(h) and 113 of the T.P. Act, wherein it was held
as hereunder:
“6. Learned Senior Counsel also relied upon a decision
of a learned Single Judge of the Calcutta High Court,
reported in AIR 1926 (Calcutta) 763, wherein It was held
that where rent is accepted after the notice to quit,
whether before or after the suit has been filed, the
landlord thereby shows an intention to treat the lease as
subsisting and, therefore, where rent deposited with the
Rent Controller under the Calcutta Rent Act is withdrawn
even after the ejectment suit is filed, the notice to quit is
waived. In our view, the principle laid down in the
aforesaid judgment of the High Court is too widely stated,
and cannot be said to be an accurate statement of law. A
mere perusal of Section 113 leaves no room for doubt
that in a given case, a notice given under Section
111, Clause (h), may be treated as having been
waived, but the necessary condition is that there
must be some act on the part of the person giving the
notice evincing an intention to treat the lease as
subsisting. Of course, the express or implied consent
of the person to whom such notice is given must also
be established. The question as to whether the person
giving the notice has by his act shown an intention to
treat the lease as subsisting is essentially a question
of fact. In reaching a conclusion on this aspect of the
matter, the Court must consider all relevant facts and
circumstances, and the mere fact that rent has been
tendered and accepted, cannot be determinative.
7. A somewhat similar situation arose in the case in
<cite>Shanti Prasad Devi v. Shankar Mahto</cite>. That was a case
where the landlord accepted rent even on expiry of the
period of lease. A submission was urged on behalf of the
tenant in that case that Section 116, Transfer of Property
Act was attracted and there was a deemed renewal, of the
lease. Negativing the contention, this Court observed
that mere acceptance of rent for the subsequent
months in which the lessee continued to occupy the
premise even, after the expiry of the period of the
lease, cannot be said to be a conduct signifying his
assent to the continuing of the lease even after the
expiry of the lease period. Their Lordships noticed
the conditions incorporated in the agreement itself,
which provided for renewal of the lease and held that
those conditions having not been fulfilled, the mere
acceptance of rent after expiry of period of lease did
not signify assent to the continuance of the lease.”
(Emphasis supplied)
In that view, the waiver as contended by the learned senior
counsel for the respondentlessee is unsustainable.
21.
That apart, the contention that the lessee M/s. Joseph
& Company had continued in possession of the said extent of
50 acres even after sale and therefore there is no default
cannot be accepted for more than one reason. To decipher
this aspect, a perusal of the sale deed dated 16.12.1983
which was produced as exhibit R3(b) in the writ proceedings
would indicate the relevant recitals as follows:
“I have absolute right to sell the property in the
schedule. I have decided to sell you 50 acres of the
land in the schedule below along with the right to
travel through the rest of the land in my possession.
The amount decided as the price of he said land is Rs.
45000. Having received the full payment of Rupees
forty five thousand, I give you absolute right and
possession over the aforesaid land in the schedule
along with the rights of transportation through the
rest of the property.
The property described in the schedule below belongs
to the Cochin Government and I have leasehold right over
the same.
From today on I have no objection in you keeping
in possession and enjoying the absolute right of the
property described in the schedule together with the
right of transport. Hereon you shall pay the lease rent
directly to the Government. All taxes to the
Government may henceforth be paid by you. Myself, the
company or any of our successors may have no right
over schedule property.
I affirm that I will not obstruct your travelling
through the rest of Beatrice Estate. By this deed you
have the right to avail yourselves of the right to such
transport.
I hereby assure you that I have the right for the sale of
this property and that there are no arrears of lease rent due
to the Government as any other dues or attachment of civil or
revenue nature relating to the property and in case any loss
is sustained by the purchaser against this assurance. I shall
be responsible for such loss.”
A perusal of the extracted portion from the sale deed
(Emphasis supplied)
22.
dated 16.12.1983 would indicate the outright nature of sale
of a portion of the leased land. It is sold for a sale
consideration despite knowing that the property belonging to
the government is granted under lease. The recital in fact,
categorically indicates that the absolute right and possession
has been given and it has also been stated therein that
henceforth the purchaser, Mr. Raghavan is to pay the lease
rent directly to the government and all taxes to the
government are also to be paid by him. Further, neither Mr.
K.K. Joseph nor the partnership firm has retained any right
over the property sold under that document. Therefore, the
document itself would indicate the intention of the parties
and also the fact that possession was parted without consent
of the lessor which was a clear breach of Clause 14 in the
lease deed.
23.
In addition, in the reply dated 29.11.1999 from Mr.
K.K. Joseph, to the notice dated 15.11.1999 from the
Divisional Forest Officer, he has stated that even after he had
retired from the firm, the firm was pursuing its efforts to get
the said 50 acres assigned to Mr. Raghavan, reassigned to the
firm and thereby remedy the default as contemplated in
Clause 12 of the lease deed. Therefore, the fact that there was
a breach committed was also within the knowledge of the
lessee though they were seeking to take shelter under Clause
12. That apart, the letter dated 26.06.1990 addressed to the
government by M/s. Joseph & Company through Ms. Meera
Scaria, interalia states as follows:
“If this reconveyance is effected, the entire property
included in the lease deed executed by Sh. K.K. Joseph and
registered as document No.1983 of 1979 of Nenmara, Sub
Registry Office will come back to the possession of M/s.
Joseph & Company which is the original lessee.”
(Emphasis supplied)
The said statement would clarify that the possession had
been parted and it was only being indicated that on re
conveyance being made, the possession would come back to
the lessee. Therefore, the contention put forth by the learned
senior counsel for the respondent that the possession had not
been parted and the lease rental was being paid by them
cannot be accepted as a mitigating factor in the facts and
circumstances of this case.
24.
Though an attempt is made to contend that an
opportunity ought to have been granted to remedy the default
in view of the provision contained in Clause 12 of the lease
deed in which event the default would stand remedied, the
same cannot come to the aid of the respondent for the reason
stated supra. Further, factually also it is to be noted that
except addressing the letter dated 26.06.1990, the lessee
M/s. Joseph & Company did not take any concrete steps to
either cancel the sale deed or to physically indicate that the
possession is back with the lessee and the transaction has
been nullified. Be that as it may, even otherwise in the
instant facts the breach was not of the nature which was
contemplated for rectification as provided under Clause 12 of
the lease deed. Therefore, it is too late in the day for the
respondent to contend that there was noncompliance of
Clause 12 before the right of the lessor to terminate the lease
as provided under Clause 14 is exercised.
25.
The alternate contention urged by the learned senior
counsel for the respondentlessee is that even if the breach is
held against the lessee, the entire lease cannot be forfeited in
view of the provision in Section 111(g) of T.P. Act. The learned
senior counsel in order to persuade us on this aspect has
referred to certain decisions which will be adverted to here
below.
26. Having noted the contention, firstly, a perusal of clause
14 no doubt does not state ‘a part thereof’ as contended by
the learned senior counsel. However, that does not mean that
a breach committed in respect of a part of the leased land
cannot be construed as breach and would disentitle the
lessor to exercise the right thereunder. Secondly, Section
111(g) does not suggest that in respect of the lease as a
whole, the forfeiture should be limited only to the portion
regarding which the breach is alleged. The breach is of not
adhering to the assurance given to lessor in respect of the
property belonging to the lessor, be it the whole or a part of it.
In this regard, the decision relied on in the case of <cite>Sh.
Shiam Behari Lal Gour and Others vs. Madan Singh AIR
(32) 1946 Allahabad 298</cite> is a circumstance where the suit
was decreed for a declaration that the lease rights of the
defendants in the leased land have been determined and the
plaintiff is entitled to possession. In that circumstance, the
point which arose for consideration is, whether the plaintiff is
in the events which have happened, entitled to such
declaration and whether in that circumstance there has been
forfeiture. Nodoubt as contended by the learned senior
counsel, the issue that was settled is that the law leans
against forfeiture. Such consideration in the said suit was
after noting the nature of right that was claimed to the
property by the lessor wherein there was rival claims of
succession to the property.
27.
In the case, <cite>A. Venkataramana Bhatta and Ors. vs.
Krishna Bhatta and Ors AIR 1925 Madras 57</cite>, the High
Court no doubt considered the case against forfeiture of the
entire lease when there was partial alienation by taking a leaf
from the construction adopted in England, based on the
general principles of equity and the same was followed in
India. In the said case, the equitable principle was applied in
a circumstance where the lessee himself in fact was the
owner of the property. He had mortgaged the same and had
obtained lease of a portion of the mortgage property from his
mortgagee. From such property which was obtained on lease,
a portion thereof was again mortgaged by him to a different
mortgagee which was termed as breach of the terms of lease.
In that circumstance, the forfeiture was limited only to the
portion which was mortgaged to a thirdparty mortgagee after
obtaining on lease from the first mortgagee.
28.
In the case, <icite>Grove vs. Portal 1902 1 CH 727</icite>, the lease
given was of fishing in certain portions of the river but with
the condition not to sublet without the consent of the lessor
in writing. When breach was alleged, the lessee contended
that he granted authority to another person only to the extent
as provided in the lease. The lessor, however, contended that
it constituted breach as the lessee assigned it to third person.
In that situation, it was held that the covenant did not
expressly apply to any part of the premises as well as to the
whole since the lessee was not precluded from granting
license to another person (limited to two rods) to fish in the
river during the residue of the term. The consideration
therein would not be relevant in the instant case. In the case,
<cite>Cook vs. Shoesmith (1951) 1 KB752</cite>, it was the case where
the dwelling house was let to the tenant wherein, he agreed
that he will not sublet. However, the tenant had sublet two
rooms of the house due to which the landlord filed the suit
for possession alleging breach of the agreement. The court
relied on the dictum of <cite>Lord Elson in Church vs. Brown</cite>
wherein it was held that the principle of an undertaking not
to sublet the premise was not broken since ‘the premise’
described the whole of what is demised and there are no
words such as a tenant had agreed not to sublet any part of
it. In that circumstance, it was held that there was no breach
of the agreement.
29.
In, <cite>Swarnamoyee Debya vs. Aferaddi and Ors. AIR
1932 Calcutta 787</cite>, it was a case where ejectment was sought
for unauthorised transfer by the defendant which was
contended to have broken the condition in the document
creating the tenancy. In that circumstance, it was held that
the usufructuary mortgage was not of the entire holding and
upon the covenant in the lease, no forfeiture was incurred by
the transaction. The question which was considered therein
was with regard to the construction of the lease which had
arisen in that case and a decision to that effect was taken. In
the case, <cite>Keshab Chandra Sarkar and Ors. vs. Gopal
Chandra Chanda AIR 1960 Calcutta 609</cite>, the plaintiff had
sued for recovery of possession contending unauthorised
transfer of the leased land without the consent of lessor
which amounted to breach of condition of the lease. The
general principles relating to forfeiture as had been laid down
was taken note and in that circumstance by strictly
construing the right of forfeiture against the lessor in the
absence of express stipulation had arrived at the conclusion
that the transfer made of the entire extent, though consent
had been obtained to transfer a part would not amount to
breach. Certain other decisions relied on by the learned
senior counsel are also to the same effect and we see no need
to refer to each of them. But, what is necessary to be taken
note is that the general principles of equity as laid down in
<cite>Grove vs. Portal (supra)</cite> has been the basis for the
conclusion reached in almost all the noted cases.
30.
In contradistinction to the facts which arose for
consideration in the cited cases where essentially the dispute
was interse between the private owners of the property and
their lessees and the nature of transaction, in the instant
case, the leased land is the property which belong to the
government and the leasehold right has been auctioned so as
to earn revenue for the state, which is to the interest of its
citizens and one citizen or a group is permitted to exploit the
land to the exclusion of all others. Additionally, such
government property is located in an area notified as reserve
forest. In such circumstance, when the lessee is given the
benefit of such property and the breach of the condition
imposed is alleged, the strict construction of the forfeiture
clause against the lessor in all circumstances would not arise
as otherwise it would render the clause in the lease deed
otiose. The principle contained in Section 111(g) of the T.P.
Act though noticed, the parties are governed by the terms in
the contract and as such the lessee cannot claim benefit
under the said provision. Further, as already noted the
consideration under Section 111(g) is based on equitable
principles which will have to be applied depending on the
facts and circumstances obtained in each case. While
applying the equitable principles, the maxim he who seeks
equity must do equity cannot be lost sight of. It is said, a
court will not assist a lessee in extricating himself or herself
from the circumstances that he or she has created, in the
name of equitable consideration. In the instant facts as
already noted when public largesse is bestowed on certain
terms and conditions, a term of the lease deed is to be strictly
adhered to and when Clause 14 provides that the lessee shall
not be entitled to sublet or assign his interest in the lease
except with the previous permission in writing of the lessor, it
does not matter as to whether the breach committed is by
assigning a portion of the leased land or the whole when such
interest of the lessee has been transferred without previous
permission of the lessor. Further, in all the cases referred to
by the learned senior counsel, the breach alleged was either
of creating mortgage or subletting the property. In the instant
case, despite being a lessee the respondent has executed an
absolute sale deed in respect of the leased land which belongs
to the government and such breach cannot be condoned.
CIVIL APPEAL NO.5120/2021 @ SLP(C) No.9661/2017
AND CIVIL APPEAL NO.5119/2021 @ SLP(C)
No.18760/2016
31.
The AppellantState of Kerala in both these appeals are
assailing the interim orders passed by the learned single
judge in W.P. No.35832/2015. The said order had been
confirmed by the learned Division Bench through the orders
dated 11.01.2016 and 25.01.2017. Considering that the
learned single judge had made an interim arrangement
protecting the interest of both the parties which will be
subject to ultimate result in the writ petition and also taking
note that this Court while directing notice in SLP
No.9661/2017, on 21.04.2017 had directed the parties to
maintain status quo as it existed on that day and the said
order has continued till this day, it would be appropriate that
the said position shall continue and the High Court shall
dispose of the writ proceedings in accordance with law, if
already not considered and disposed of. We make it clear that
we have refrained from interfering with the impugned orders
since they are interim in nature. We have also not adverted to
the merits of the rival contentions arising in these
proceedings. As such the High Court shall consider the case
on its own merits.
32. For all the aforestated reasons, the following order;
(i)
The order dated 10.07.2015 passed by the
learned Division Bench in W.A.No.369/2011 and
W.A.No.375/2011 is set aside.
(ii) The order dated 17.01.2011 passed by the learned
Single Judge in W.P.No.1207/2005 is restored.
(iii) The appeals arising out of SLP(C) Nos.879
880/2016 are allowed in part with no order as to
costs.
(iv) The appeals arising out of SLP (C) No.9661/2017
and SLP(C) No.18760/2016 are disposed of.
(v) Pending application, if any, shall stand disposed
of.
|
The present appeals arise out of the common judgment and
2.
order dated 16th January, 2020 of the Karnataka High Court which
1
dismissed several Writ Petitions. The course of the litigation
highlights the malaise of constant abuse of procedural provisions
which defeats justice, i.e. frivolous attempts by unsuccessful
litigants to putting up spurious objections and setting up third
parties, to object, delay and obstruct the execution of a decree.
3.
The third respondent (hereafter referred to as
‘Narayanamma’) had purchased a property measuring 1 Acre
(Survey No. 15/2) of Deevatige Ramanahalli, Mysore Road,
Bengaluru (hereafter referred to as ‘suit property’) under the sale
deed dated 17.03.1960. The suit land was converted and got
merged in the municipal limits of Bengaluru and was assigned
with Municipal Corporation No. 327 and 328, Mysore Road,
Bengaluru. Narayanamma sold 1908 square yard of the suit
property in Municipal Corporation (Survey No. 327) to 2nd and 3rd
respondents (hereafter referred to ‘Jitendra’ and `Urmila’) under a
sale deed dated 13.05.1986. This was demarcated with the
sketch annexed to the sale deed. The adjacent portion of
property, Survey No. 327 was sold to Shri Moolendra Kumar
Gandhi and Smt. Baby Gandhi by another sale deed dated
13.05.1986. This property was also demarcated in the sketch and
2
clearly shows its dimensions and boundaries annexed to the sale
deed. Therefore, the first two respondents, Shri Moolendra Kumar
Gandhi and Smt. Baby Gandhi became absolute owners of the suit
property with the totally admeasuring of 3871 square yards.
Thus, Narayanamma had sold about 34,839 square feet of the
property out of 1 Acre land (43,860 square feet) owned by her.
Subsequently, after the sale of the major portion of the said
property to the first two respondents and their brother,
Narayanamma who is the mother of A. Ramachandra Reddy the
fourth respondent (hereafter called “the vendors”) filed a suit1 for
declaration that the two sale deeds in favour of the first two
respondents (also called “purchasers” or “decree-holders”) as well
as against Shri Moolendra Kumar Gandhi etc. were void. The
vendors and Shri Anjan Reddy (deceased respondent no. 8) on
25.03.1991 executed a registered partition deed. This document
did not advert to the sale deed executed in favour of the
purchasers and Shri Moolendar Kumar Gandhi and Smt. Baby
Kumari Gandhi. The purchasers were restrained by an injunction
1 O.S. No. 986/1987
3
from entering the property which Narayanamma claimed was
hers.
During the pendency of the suit for declaration, the first
4.
purchasers filed two suits2 against the vendors for possession.
During the pendency of these suits on 11.02.2000 by two
separate sale deeds Shri Dhanji Bhai Patel and Shri Govind Dhanji
Patel purchased 7489 square feet and 7650 square feet
respectively, out of the residue of the property owned by
Narayanamma. While so, during the pendency of the suits
instituted by the purchasers, the vendors again sold the suit
property i.e. the land to the present appellant (Rahul Shah) and
three others (Respondents no. 5-7) by four separate sale deeds.3In
the possession suits the vendors filed counter claims (dated
18.04.1998). During the pendency of proceedings the purchasers
sought for transfer and mutation of property in their names which
were declined by the Municipal Corporation; this led to their
approaching the High Court in Writ Petition No. 19205/1992 which
2 O.S. Nos. 9077/ 1996 and 9078/1996
3 Dated 09.11.2001, 12.12.2001, 05.12.2002 and 20.10.2004
4
was disposed of with a direction4 that after adjudication of the
injunction suit (filed by the vendors) the khata be transferred.
The proceedings in the injunction suit filed by the vendors
5.
and the other two suits filed by the purchasers were clubbed
together. The City Civil Judge, Bangalore by a common judgment
dated 21.12.2006 allowed and decreed the suits for possession
preferred by the purchasers and dismissed the vendor’s suit for
injunction. The decree holders preferred execution proceedings.5
They filed applications under Order XXI Rule 97 of the Code of
Civil Procedure (CPC) since the judgment debtors/vendors had
sold the property to the appellant and respondents no. 4 to 7.
The appellant i.e. a subsequent purchaser filed objections.
6.
During the pendency of the proceedings the front portion of
the suit property bearing Municipal Corporation No. 327, Mysore
road, Bangalore became the subject matter of the acquisition for
the Bangalore Metro Project. The decree holders (the first two
respondents) preferred objections to the proposed acquisition and
further claimed the possession. In the meanwhile, aggrieved by
the dismissal of the suit and decreeing the suit for possession,
4 Dated 05.11.1998
5 Execution Case Nos. 458-459/2007
5
Narayanamma filed first appeals in the High Court6. In these
proceedings it was brought to the notice of the High Court that
the suit properties had been sold to the appellant and
respondents no. 4 to 7. By an order7 the High Court directed the
vendors to furnish particulars with respect to the sale, names of
the purchaser and area sold etc. By common judgment dated
22.10.2009 the High Court dismissed all the appeals pending
before it. The Special Leave Petition preferred by the vendors8
was also dismissed by this Court on 23.07.2010.
7.
Apparently, during the pendency of execution proceedings
before the trial Court the vendors again sold the properties in
favour of Shri P. Prem Chand, Shir Parasmal, Shri Kethan S. Shah &
Ors. and Shri Gopilal Ladha & Shri Vinay Maheshwari by separate
sale deeds9. This was brought to the notice of the High Court
which had dismissed the appeal preferred by the vendors.
8.
During the pendency of the proceedings before the High
Court Narayanamma, the appellant and respondents no. 4 to 7
filed indemnity bonds claiming that there was no dispute with
6 R.F.A. No. 661-663/ 2007
7 Dated 10.04.208
8 S.L.P. (C) Nos. 16349-13651/2010
9 Dated 09.11.2001, 12.12.2001, 05.12.2002 and 20.10.2004
6
respect to the suit property and claimed the compensation in
respect of portions that were acquired. These were brought to the
notice of the High Court which passed an order in W.P. No.
9337/2008. The court considered all the materials and held that
the compensation could not have been dispersed to the vendors,
the appellant and Respondents no. 4 to 7. The High Court issued
directions to them to deposit the amounts. An appeal was
preferred by the appellant and the said respondents, against that
order, which was rejected by the Division Bench.10 Consequently,
an enquiry was held and order was passed by the Land
Acquisition Officer on 01.08.2011 directing the appellant, the
vendor and others to redeposit the amounts. By an order passed
in another Writ Petition No. 2099/201111 the High Court held that
the decree holder/purchasers were entitled to transfer of khata of
property in their names and directed to hold an inquiry against
the Revenue Officer. Since the orders of the High Court, with
respect to the deposits of amounts, were not complied with,
contempt proceedings were taken.
10 Dated 28.10.2009
11 Dated 17.07.2013
7
9.
The High Court in another order dated 19.04.2013 directed
Narayanamma and respondents no. 4 to 7 to deposit the
amounts. That order in contempt proceedings (C.C.C. No.
280/2011) was challenged before this Court in a special leave
petition12 which was dismissed on 05.11.2014. Thereafter,
apparently in compliance with the High Court’s direction for
transfer of khata the municipal and revenue records reflect the
names of the decree-holder/purchasers.
10. The execution proceedings initiated by the decree holders
resulted in the court requiring parties to lead evidence, in view of
the obstruction by the appellant and respondents no. 4 to 7, by its
order dated 23.04.2010. When obstruction proceedings were
pending under Order XXI Rule 97, the judgment debtor i.e. the
vendors initiated criminal proceedings in 2016 against the decree
holders; these were stayed by the High Court on 20.06.2016 and
later quashed on 16.03.2017. The judgment debtors had alleged
The High Court directed
forgery of certain documents.
appointment of Court Commissioner to identify and measure the
property. At the time of disposal of the criminal proceedings High
12 SLP (C) No. 18031/2013
8
Court directed that the Commissioner’s report along with the
objections of the Judgment debtors ought to be forwarded to the
Executing Court.
11.
In the meanwhile, by an order the Executing Court had
appointed the Taluka Surveyor of BBMP as the Court
Commissioner and directed him to visit the spot and survey and
fix the boundaries of decretal property. Recall of these orders was
sought by the judgment debtors; they also sought for reference to
forensic examination by a Handwriting Expert of the sale
documents. These two review applications were dismissed; and
on 13.06.2017 the Executing Court declined the application for
forensic examination of documents and also rejected the
obstructers’ resistance to execution.
12. All these orders led to initiation of five writ petitions on
behalf of the appellant, and the vendors etc. Three First appeals13
were preferred by obstructers challenging the decision of the
Executing Court dated 15.02.2017. By impugned common order
all these Writ Petitions and appeals were dismissed.
13 R.F.A. Nos. 441, 468 and 469/2017
9
13.
It is argued by Mr. Shailesh Madiyal on behalf of the
appellant (Rahul Shah) that the impugned order has the effect of
diluting the order of the Executing Court dated 23.04.2010 with
respect to survey of the entire property. It was pointed out by the
counsel for the appellant that there were disputes with respect to
boundaries and identity of the properties as between parties.
Referring to the order, it was submitted that the Court had noticed
that the High Court in earlier Writ Petitions had directed the
Special Land Acquisition Officer to hold an enquiry and if
necessary refer the matter to Civil Court under Section 30 of the
Land Acquisition Act. In view of all these disputes, questions
especially related to the boundaries and the imprecise nature of
the extent and location of the disputed properties, the impugned
order should be interfered with and the reliefs sought by the
appellant be granted.
Learned Counsel submitted that
subsequently by order dated 31.10.2014 the Executing Court
erroneously held that Sketch Exhibit P-26 was drawn by Revenue
Authorities whereas in fact it was introduced by handwritten
sketch given by the decree holders.
10
14. Learned counsel submitted that decree holder’s efforts in all
the proceedings were to confuse the identity of the property and
therefore had sought clubbing of both execution cases; this
request was rejected by the Executing Court after concluding that
the property sought to be executed in two cases were different
and further that rights claimed too were distinct.
15. Learned counsel for the appellant in the second set of
petitions, i.e. SLP (C) No. 11859-11860 of 2020 and SLP (C) No.
11792-11793 of 2020, on the other hand urged that the High
Court as well as the Executing Court fell into error in holding that
what was sought by the obstructer (i.e. the appellant Gopilal
Ladha) was far in excess of what was left after decree holders had
purchased and therefore the conveyances had overlapped.
16. Mr. Arunava Mukherjee appearing for the second set of
appellants also reiterated the submissions of Mr. Shailesh Madiyal
that the decree holders had intentionally confused the identity of
the property. He highlighted that the High Court acted in error in
rejecting the appellants’ request for subjecting documents to
forensic examination by handwriting experts. It was submitted
that this aspect was completely overlooked because the
11
appellants’ had raised serious doubts with respect to the
genuineness and authenticity of the signatures of the documents.
17. The respondents urged that this Court should not interfere
with the findings of the High Court. Learned counsel reiterated
that numerous proceedings were taken out and that the judgment
debtors had sold the very same property three times over – at
least two times after the decree holders purchased their portions
of the property and during the pendency of the suits filed by
them. The judgment debtors had sought a declaration that the
sale deeds executed in favour of the decree holders were not
genuine and lost. Thereafter, the judgment debtor and some of
the obstructers succeeded in collecting compensation in respect
of the portion of the property that had been acquired. Ultimately,
those amounts had to be disbursed by the Court orders. The
judgment debtors/ vendor even sought forensic examination and
initiated the criminal proceedings that were quashed by the High
Court. The High Court took note of all these circumstances and
passed a just order, requiring the appointment of a Court
Commissioner to identify and measure the properties. While
doing so the Executing Court has been asked to take into
12
consideration all the materials on record including the reports
submitted by the previous Court Commissioner Mr. Venkatesh
Dalwai.
Discussion and conclusions:
18.
It is quite evident from the above discussion that the vendor
and her son (judgment debtors) after executing the sale deed in
respect of a major portion of the property, questioned the
transaction by a suit for declaration. The decree holders also filed
a suit for possession. During the pendency of these proceedings,
two sets of sale deeds were executed. The vendors’ suit was
dismissed – the decree of dismissal was upheld at the stage of the
High Court too. On the other hand, the purchasers’ suit was
decreed and became the subject matter of the appeal. The High
Court dismissed the first appeal; this Court dismissed the Special
Leave Petition. This became the background for the next stage of
the proceedings, i.e. execution. Execution proceedings are now
being subsisting for over 14 years. In the meanwhile, numerous
applications including criminal proceedings questioning the very
same documents that was the subject matter of the suit were
13
initiated. In between the portion of the property that had been
acquired became the subject matter of land acquisition
proceedings and disbursement of the compensation. That
became the subject matter of writ and contempt proceedings.
Various orders of the Executing Court passed from time to time,
became the subject matter of writ petitions and appeals - six of
them, in the High Court. All these were dealt with together and
disposed of by the common impugned order.
19. A perusal of the common impugned order shows that High
Court has painstakingly catalogued all
proceedings
chronologically and their outcomes. The final directions in the
impugned order is as follows:
(a) the other challenge by the JDrs and the
Obstructors having been partly favoured, the
impugned orders of the Executing Court directing
Delivery Warrant, are set at naught, and the matter is
remitted back for consideration afresh by appointing an
expert person/official as the Court Commissioner for
accomplishing the identification & measurement of the
decreetal properties with the participation of all the
stake-holders, in that exercise subject to all they bearing
the costs & fees thereof, equally;
it is open to the Executing Court to take into
(b)
consideration the entire evidentiary material on record
14
hitherto including the Report already submitted by the
Court Commissioner Shri Venkatesh Dalwai,
the amount already in deposit and the one to be
(c)
deposited by the Obstructors in terms of orders of Co-
ordinate Benches of this Court mentioned in paragraph 8
supra shall be released to the parties concerned, that
emerge victorious in the Execution Petitions;
the JDrs shall jointly pay to the DHrs collectively
(d)
an exemplary cost of Rs. 5,00,000/- (Rupees five lakh)
only
in each of the Execution Petitions within a period of eight
weeks, regardless of the outcome of the said petitions;
and, if, the same is not accordingly paid, they run the
of
risk
being excluded
the
Execution Proceedings, in the discretion of the learned
judge of the Court below; and,
(e) the entire exercise including the disposal of the
Execution Petitions shall be accomplished within an
outer
limit of six months, and the compliance of such
accomplishment shall be reported to the Registrar
General of this Court.
from participation
in
No costs qua obstructors.
Sd/-
JUDGE
20. The contentions of the Special Leave Petition mainly centre
around one or the other previous orders of the Executing Court
with regard identification of the property and boundary etc and
the subjecting documents to forensic examination. As is evident
15
from the reading of the final order, the High Court has adopted a
fair approach requiring the Executing Court to appoint a Court
Commissioner to verify the identity of the suit properties and also
consider the materials brought on record including the reports of
the previous local commission. In the light of this, the arguments
of the present appellants are unmerited and without any force.
The Court also finds that the complaint that documents ought to
be subjected to forensic examination, is again insubstantial. The
criminal proceedings initiated during the pendency of the
execution proceedings – in 2016 culminated in the quashing of
those proceedings. The argument that the documents are not
genuine or that they contain something suspicious ex-facie
appears only to be another attempt to stall execution and seek
undue advantage. As a result, the High Court correctly declined
to order forensic examination. This Court is of the opinion that
having regard to the totality of circumstances the direction to pay
costs quantified at Rs. 5 lakh (to be complied by the judgment
debtor) was reasonable, given the several attempts by the decree
holder to ensure that the fruits of the judgment secured by them
16
having been thwarted repeatedly. As a result, the direction to pay
costs was just and proper.
21. The High Court has directed the Executing Court to complete
the process within six months. That direction is affirmed. The
parties are hereby directed to cooperate with the Executing Court;
in case that court finds any obstruction or non-cooperation it shall
proceed to use its powers, including the power to set down and
proceed ex-parte any party or impose suitably heavy costs.
Therefore, in light of the above observations these appeals are
liable to be dismissed.
22. These appeals portray the troubles of the decree holder in
not being able to enjoy the fruits of litigation on account of
inordinate delay caused during the process of execution of
decree. As on 31.12.2018, there were 11,80,275 execution
petitions pending in the subordinate courts. As this Court was of
the considered view that some remedial measures have to be
taken to reduce the delay in disposal of execution petitions, we
proposed certain suggestions which have been furnished to the
learned counsels of parties for response. We heard Mr. Shailesh
17
Madiyal, learned counsel for the petitioner and Mr. Paras Jain,
learned counsel for the respondent.
23. This court has repeatedly observed that remedies provided
for preventing injustice are actually being misused to cause
injustice, by preventing a timely implementation of orders and
execution of decrees. This was discussed even in the year 1872
by the Privy Counsel in <cite>The General Manager of the Raja
Durbhunga v. Maharaja Coomar Ramaput Sing14</cite> which
observed that the actual difficulties of a litigant in India begin
when he has obtained a decree. This Court made a similar
observation in <cite>Shub Karan Bubna @ Shub Karan Prasad
Bubna v Sita Saran Bubna15</cite>, wherein it recommended that the
Law Commission and the Parliament should bestow their attention
to provisions that enable frustrating successful execution. The
Court opined that the Law Commission or the Parliament must
give effect to appropriate recommendations to ensure such
amendments in the Code of Civil Procedure, 1908, governing the
adjudication of a suit, so as to ensure that the process of
adjudication of a suit be continuous from the stage of initiation to
14 (1871-72) 14 Moore’s I.A. 605
15 (2009) 9 SCC 689
18
the stage of securing relief after execution proceedings. The
execution proceedings which are supposed to be handmaid of
justice and sub-serve the cause of justice are, in effect, becoming
tools which are being easily misused to obstruct justice.
24.
In respect of execution of a decree, Section 47 of CPC
contemplates adjudication of limited nature of issues relating to
execution i.e., discharge or satisfaction of the decree and is
aligned with the consequential provisions of Order XXI. Section 47
is intended to prevent multiplicity of suits. It simply lays down the
procedure and the form whereby the court reaches a decision. For
the applicability of the section, two essential requisites have to be
kept in mind. Firstly, the question must be the one arising
between the parties and secondly, the dispute relates to the
execution, discharge or satisfaction of the decree. Thus, the
objective of Section 47 is to prevent unwanted litigation and
dispose of all objections as expeditiously as possible.
25. These provisions contemplate that for execution of decrees,
Executing Court must not go beyond the decree. However, there
is steady rise of proceedings akin to a re-trial at the time of
execution causing failure of realisation of fruits of decree and
relief which the party seeks from the courts despite there being a
19
decree in their favour. Experience has shown that various
objections are filed before the Executing Court and the decree
holder is deprived of the fruits of the litigation and the judgment
debtor, in abuse of process of law, is allowed to benefit from the
subject matter which he is otherwise not entitled to.
26. The general practice prevailing in the subordinate courts is
that invariably in all execution applications, the Courts first issue
show cause notice asking the judgment debtor as to why the
decree should not be executed as is given under Order XXI Rule
22 for certain class of cases. However, this is often misconstrued
as the beginning of a new trial. For example, the judgement
debtor sometimes misuses the provisions of Order XXI Rule 2 and
Order XXI Rule 11 to set up an oral plea, which invariably leaves
no option with the Court but to record oral evidence which may be
frivolous. This drags the execution proceedings indefinitely.
27. This is anti-thesis to the scheme of Civil Procedure Code,
which stipulates that in civil suit, all questions and issues that
may arise, must be decided in one and the same trial. Order I and
Order II which relate to Parties to Suits and Frame of Suits with the
object of avoiding multiplicity of proceedings, provides for joinder
20
of parties and joinder of cause of action so that common
questions of law and facts could be decided at one go.
28. Order I Rule 10(2) empowers the Court to add any party who
ought to have been joined, whether as a plaintiff or defendant, or
whose presence before the Court may be necessary in order to
enable the Court to effectually and completely adjudicate upon
and settle all questions involved in the suit. Further, Order XXII
Rule 10 provides that in cases of assignment, creation or
devolution of any interest during the pendency of the suit, the suit
may, by leave of the Court, be continued by or against the person
to or upon whom such interest has come to be devolved.
29. While CPC under Rules 30 to 36 of Order XXI provides for
execution of various decrees, the modes of execution are common
for all. Section 51 of CPC lists the methods of execution as by
delivery of property; by attachment and sale; by arrest and
detention in civil prison; by appointing a receiver or in any other
manner as the nature of relief granted may require. Moreover,
Order XL Rule 1 contemplates the appointment of the Receiver by
the Court. In appropriate cases, the Receiver may be given
possession, custody and/or management of the property
immediately after the decree is passed. Such expression will
21
assist in protection and preservation of the property. This
procedure within the framework of CPC can provide assistance to
the Executing Court in delivery of the property in accordance with
the decree.
30. As to the decree for the delivery of any immovable property,
Order XXI Rule 35 provides that possession thereof shall be
delivered to the party to whom it has been adjudged, or to such
person as he may appoint to receive delivery on his behalf, and, if
necessary, by removing any person bound by the decree who
refuses to vacate the property.
31. As the trial continues between specific parties before the
Courts and is based on available pleadings, sometimes vague
description of properties raises genuine or frivolous third-party
issues before delivery of possession during the execution. A
person who is not party to the suit, at times claims separate
rights or interests giving rise to the requirement of determination
of new issues.
32. While there may be genuine claims over the subject matter
property, the Code also recognises that there might be frivolous
or instigated claims to deprive the decree holder from availing the
benefits of the decree. Sub-rule (2) of Rule 98 of Order XXI
22
contemplates such situations and provides for penal
consequences for resistance or obstruction occasioned without
any just cause by the judgment debtor or by some other person
at his instigation or on his behalf, or by the transferee, where
such transfer was made during the pendency of the suit or
execution proceedings. However, such acts of abuse of process of
law are seldom brought to justice by sending the judgment
debtor, or any other person acting on his behalf, to the civil
prison.
In relation to execution of a decree of possession of
33.
immovable property, it would be worthwhile to mention the twin
objections which could be read. Whereas under Order XXI Rule 97,
a decree holder can approach the court pointing out about the
obstruction and require the court to pass an order to deal with the
obstructionist for executing a decree for delivering the possession
of the property, the obstructionist can also similarly raise
objections by raising new issues which take considerable time for
determination.
34. However, under Order XXI Rule 99 it is a slightly better
position, wherein a person, other than the judgment debtor, when
is dispossessed of immoveable property by the decree holder for
23
possession of such property, files an application with objections.
Such objections also lead to re-trial, but as the objector is already
dispossessed, the execution of the decree is more probable and
expeditious. In Order XXI Rule 97 the obstructionist comes up with
various objections that ideally should have been raised at the
time of adjudication of suit. Such obstructions for execution could
be avoided if a Court Commissioner is appointed at the proper
time.
35. Having considered the abovementioned legal complexities,
the large pendency of execution proceedings and the large
number of instances of abuse of process of execution, we are of
the opinion that to avoid controversies and multiple issues of a
very vexed question emanating from the rights claimed by third
parties, the Court must play an active role in deciding all such
related issues to the subject matter during adjudication of the suit
itself and ensure that a clear, unambiguous, and executable
decree is passed in any suit.
36. Some of the measures in that regard would include that
before settlement of issues, the Court must, in cases, involving
delivery of or any rights relating to the property, exercise power
under Order XI Rule 14 by ordering production of documents upon
24
oath, relating to declaration regarding existence of rights of any
third party, interest in the suit property either created by them or
in their knowledge. It will assist the court in deciding impleadment
of third parties at an early stage of the suit so that any future
controversy regarding non-joinder of necessary party may be
avoided. It shall ultimately facilitate an early disposal of a suit
involving any immovable property.
37.
It also becomes necessary for the Trial Court to determine
what is the status of the property and when the possession is not
disputed, who and in what part of the suit property is in
possession other than the defendant. Thus, the Court may also
take recourse to the following actions:
a) Issue commission under Order XXVI Rule 9 of CPC.
A determination through commission, upon the institution of
a suit shall provide requisite assistance to the court to assess and
evaluate to take necessary steps such as joining all affected
parties as necessary parties to the suit. Before settlement of
issues, the Court may appoint a Commissioner for the purpose of
carrying out local investigation recording exact description and
demarcation of the property including the nature and occupation
25
of the property. In addition to this, the Court may also appoint a
Receiver under Order XL Rule 1 to secure the status of the
property during the pendency of the suit or while passing a
decree.
b) Issue public notice specifying the suit property and
inviting claims, if any, that any person who is in possession of
the suit property or claims possession of the suit property or
has any right, title or interest in the said property specifically
stating that if the objections are not raised at this stage, no
party shall be allowed to raise any objection in respect of any
claim he/she may have subsequently.
c) Affix such notice on the said property.
d) Issue such notice specifying suit number etc. and the
Court in which it is pending including details of the suit
property and have the same published on the official website of
the Court.
38. Based on the report of the Commissioner or an application
made in that regard, the Court may proceed to add necessary or
proper parties under Order I Rule 10. The Court may permit
26
objectors or claimants upon joining as a party in exercise of power
under Order I Rule 10, make a joinder order under Order II Rule 3,
permitting such parties to file a written statement along with
documents and lists of witnesses and proceed with the suit.
39.
If the above suggested recourse is taken and subsequently if
an objection is received in respect of “suit property” under Order
XXI Rule 97 or Rule 99 of CPC at the stage of execution of the
decree, the Executing Court shall deal with it after taking into
account the fact that no such objection or claim was received
during the pendency of the suit, especially in view of the public
notice issued during trial. Such claims under Order XXI Rule 97 or
Rule 99 must be dealt strictly and be considered/entertained
rarely.
In <cite>Ghan Shyam Das Gupta v. Anant Kumar Sinha16</cite>, this
40.
Court had observed that the provisions of the Code as regards
execution are of superior judicial quality than what is generally
available under the other statutes and the Judge, being entrusted
exclusively with administration of justice, is expected to do better.
With pragmatic approach and judicial interpretations, the Court
must not allow the judgment debtor or any person instigated or
16 AIR 1991 SC 2251
27
raising frivolous claim to delay the execution of the decree. For
example, in suits relating to money claim, the Court, may on the
application of the plaintiff or on its own motion using the inherent
powers under Section 151, under the circumstances, direct the
defendant to provide security before further progress of the suit.
The consequences of non-compliance of any of these directions
may be found in Order XVII Rule 3.
41. Having regard to the above background, wherein there is
urgent need to reduce delays in the execution proceedings we
deem it appropriate to issue few directions to do complete justice.
These directions are in exercise of our jurisdiction under Article
142 read with Article 141 and Article 144 of the Constitution of
India in larger public interest to subserve the process of justice so
as to bring to an end the unnecessary ordeal of litigation faced by
parties awaiting fruits of decree and in larger perspective
affecting the faith of the litigants in the process of law.
42. All Courts dealing with suits and execution proceedings shall
mandatorily follow the below-mentioned directions:
28
In suits relating to delivery of possession, the court
1.
must examine the parties to the suit under Order X in
relation to third
party interest and further exercise the power under
2.
Order XI Rule 14 asking parties to disclose and produce
documents, upon oath, which are in possession of the parties
including declaration pertaining to third party interest in
such properties.
In appropriate cases, where the possession is not in
3.
dispute and not a question of fact for adjudication before the
Court, the Court may appoint Commissioner to assess the
accurate description and status of the property.
After examination of parties under Order X or
4.
production of documents under Order XI or receipt of
commission report, the Court must add all necessary or
proper parties to the suit, so as to avoid multiplicity of
proceedings and also make such joinder of cause of action in
the same suit.
29
Under Order XL Rule 1 of CPC, a Court Receiver can be
5.
appointed to monitor the status of the property in question
as custodia legis for proper adjudication of the matter.
The Court must, before passing the decree,
6.
pertaining to
delivery of possession of a property ensure that the
7.
decree is unambiguous so as to not only contain clear
description of the property but also having regard to the
status of the property.
In a money suit, the Court must invariably resort to
8.
Order XXI Rule 11, ensuring immediate execution of decree
for payment of money on oral application.
In a suit for payment of money, before settlement of
9.
issues, the defendant may be required to disclose his assets
on oath, to the extent that he is being made liable in a suit.
The Court may further, at any stage, in appropriate cases
during the pendency of suit, using powers under Section 151
CPC, demand security to ensure satisfaction of any decree.
30
10. The Court exercising jurisdiction under Section 47 or
under Order XXI of CPC, must not issue notice on an
application of third-party claiming rights in a mechanical
manner. Further, the Court should refrain from entertaining
any such application(s) that has already been considered by
the Court while adjudicating the suit or which raises any
such issue which otherwise could have been raised and
determined during adjudication of suit if due diligence was
exercised by the applicant.
11. The Court should allow taking of evidence during the
execution proceedings only in exceptional and rare cases
where the question of fact could not be decided by resorting
to any other expeditious method like appointment of
Commissioner or calling for electronic materials including
photographs or video with affidavits.
12. The Court must in appropriate cases where it finds the
objection or resistance or claim to be frivolous or mala fide,
resort to Sub-rule (2) of Rule 98 of Order XXI as well as grant
compensatory costs in accordance with Section 35A.
31
13. Under section 60 of CPC the term “…in name of the
judgment- debtor or by another person in trust for him or on
his behalf” should be read liberally to incorporate any other
person from whom he may have the ability to derive share,
profit or property.
14. The Executing Court must dispose of the Execution
Proceedings within six months from the date of filing, which
may be extended only by recording reasons in writing for
such delay.
15. The Executing Court may on satisfaction of the fact that
it is not possible to execute the decree without police
assistance, direct the concerned Police Station to provide
police assistance to such officials who are working towards
execution of the decree. Further, in case an offence against
the public servant while discharging his duties is brought to
the knowledge of the Court, the same must be dealt
stringently in accordance with law.
16. The Judicial Academies must prepare manuals and
ensure continuous training through appropriate mediums to
32
the Court personnel/staff executing the warrants, carrying
out attachment and sale and any other official duties for
executing orders issued by the Executing Courts.
43. We further direct all the High Courts to reconsider and
update all the Rules relating to Execution of Decrees, made under
exercise of its powers under Article 227 of the Constitution of
India and Section 122 of CPC, within one year of the date of this
Order. The High Courts must ensure that the Rules are in
consonance with CPC and the above directions, with an
endeavour to expedite the process of execution with the use of
Information Technology tools. Until such time these Rules are
brought into existence, the above directions shall remain
enforceable.
44. The appeals stand dismissed.
|
The Judgment of the Court was delivered by
Sikri, C. J.-This appeal by special leave is against the
order of the Central Registrar of Cooperative Societies New
Delhi dismissing the appeal filed by Panchshila Industrial
Cooperative Society (Multi Unit) appellant before us against
the award passed by the Arbitrator (Deputy Registrar of
Cooperative Societies Rohtak) dated October 7, 1969, in
respect of the dispute between the Gurgaon Central
Cooperative Bank Ltd., Gurgaon respondent before us, and the
appellant. The Central Registrar held that he was not the
appropriate appellate authority against the award in
question.
The only question which arises before us is whether the
Central Registrar was the appropriate authority on the facts
of this case. The relevant facts are these. The respondent
Bank approached the Registrar of Cooperative Societies
Haryana for resolving a dispute between the Bank and one of
its members appellant before us. The Registrar by his order
dated February 17, 1968, in exercise of the powers vested in
him under S. 56 of the Punjab Co-operative Societies Act,
1961, referred the dispute to the Deputy Registrar
Cooperative Societies Rohtak for decision. The arbitrator
gave the award on October 7, 1969, directing that the
appellant do pay to the respondent in all Rs. 16,05,658 - 20
together with interest at the rate of six and a half per
cent per annum until the realisation of the principal amount
viz. Rs. 11,52,535 00.
The appellant as mentioned above filed an appeal against
this award before the Central Registrar. The respondent
Bank is a co-operative society governed by the provisions of
the Punjab Co-operative Societies Act 1961. Section 55(1)
of this Act inter alia provides that if any dispute touching
the constitution management or the business of a co-
operative society arises between a member
46
and the society such dispute shall be referred to the Re-
gistrar for decision and no Court shall have jurisdiction to
entertain any suit or other proceeding in respect of such
dispute. Section 55(2) provides that for the purposes of
sub-section (1) a claim by the society for any debt or de-
mand due to it from a member or the nominee heirs or legal
representatives of a deceased member whether such debt or
demand be admitted or not, shall be deemed to be a dispute
touching the constitution, management or the business of the
co-operative society. Sub-section (3) of S. 55 provides
that "if any question arises whether a dispute referred to
the Registrar under this section is or is not a dispute
touching the constitution management or the business of a
cooperative society, the decision thereon of the Registrar
shall be final and shall not be called in question in any
court."
There is no doubt that the dispute between the respondent
Bank and the appellant fell within S. 55 and was properly
referred to arbitration under that section. It is however,
contended that the appellant was registered in December 1955
under the Punjab Cooperative Societies Act, 1955, and by
virtue of the States Reorganisation Act, 1956, and S. 5A of
the Multi-Unit Co-operative Societies Act, 1942, the
appellant has ceased to be governed by the provisions of the
Punjab Co-operative Societies Act because it has become a
multi-unit co-operative society. There is no doubt that by
virtue of the States Reorganisation Act, 1956, and S. 5A of
the Multi-Unit Co-operative Societies, Act, 1942, the
appellant has become a multi-unit co-operative society and
the Multi-Unit Co-operative Societies Act applies to it.
But that Act is for the incorporation, regulation and
winding up of co-operative societies with objects not
confined to one State, and it has no impact on S. 55 of the
Punjab Co-operative Societies Act, 1961, inasmuch as the
appellant remains a member of the co-operative society,
namely, the respondent Bank. There is nothing in the
provisions of the Multi-Unit Co-operative Societies Act to
indicate that a multi-unit co-operative society cannot be a
member of a co-operative society governed by the Punjab Act
of 1961. If the appellant continues to be a member, then
the terms of S. 55 apply and a dispute can be referred to
arbitration under that section. An appeal against the at
award lies under S. 68 of the Punjab Act of
47
1961 to the Government of the decision or order was made by
the Registrar, and to the Registrar if the decision or order
was made by any other person. It is quite clear therefore,
that the Central Registrar had no jurisdiction to hear the
appeal.
The learned counsel next contends that the Central
Registrar should not have dismissed the appeal but returned
the memorandum of appeal for presentation to the proper
authority. There is no statutory provision enabling the
Central Registrar to do so. At any rate, if an appeal is
filed before the appropriate authority under the Punjab Co-
operative Societies Act, 1961, that authority will no doubt
take into consideration the provisions of S. 14 of the
Limitation Act, 1963, read with S. 29(2) and decide whether
the appeal should be entertained or not.
In the result the appeal fails and is dismissed with costs.
K.B.N. Appeal dismissed.
48
|
The challenge in the present appeal is to an order passed by the National
Consumer Disputes Redressal Commission1 on 02.11.2015 whereby the original
Opposite Party No. 3 (Respondent No. 1 herein) was absolved of the damages of
Rs. 2,00,000/- imposed by State Consumer Disputes Redressal Commission2 vide
order dated 12.11.2014.
2.
Sanjay Kumar aged about 15 years, son of the Appellant complained of
abdominal pain, fever and haemorrhage in both eyes. Initially, the Appellant had
taken his son to a physician Dr. Arun Tiwari on 08.11.1995 who advised some
tests and medicines. He was advised to consult with the specialist as well. After
1 NCDRC
2 SCDRC
1
examining the blood report, Dr. Arun Tiwari referred the patient to the Kurji Holy
Family Hospital-original Opposite Party No. 1 on 10.11.1995. He was taken to the
Hospital at about 8.00 PM. The recorded history of the patient is as under:
“A 15 years old male patient is admitted in 3A-7 with the
complaints of fever, pain abdomen and hemorrhage from
both eyes since 5 days.”
3.
The patient was operated upon on 11.11.1995 when the platelets count was
35000 per cubic millimeter (cu.mm) at about 11.15 AM. Before the surgery, the
patient was transfused with two units of blood and after the surgery another two
units of blood were transfused. Since the patient was bleeding and in spite of
packing of leakages, the relatives of the patient took discharge from the Kurji Holy
Family Hospital at about 2.00 PM on 13.11.1995. On the same date, the patient
was admitted to Patna Medical College and Hospital (PMCH) where the patient
died on 16.11.1995.
4.
In consumer complaint under the Consumer Protection Act, 19863, the
Appellant produced an affidavit of Dr. Hare Ram Singh, then posted in Jharkhand
State Assembly at Russian Hostel, Dhurwa, P.S. Jaganathpur, District Ranchi. Dr.
Hare Ram Singh opined that Bleeding Time (BT) was 3’ 00” against normal value
of 2-4 seconds and Clotting Time (CT) was 5’ 00” against normal value of 3-6
seconds. The affidavit further states that there was a second test which shows that
the platelets decreased excessively and there were very few plasma cells present.
There was another test conducted before surgery, showing platelets count as
35000 per cu. mm. Dr. Hare Ram Singh was of the opinion that to operate the
patient with excessive low platelets count was the greatest blunder and clear case
of extreme negligence of doctors.
3 1986 Act
2
5.
The surgery was performed on 11.11.1995 at about 11.15 AM. The post-
operative note of the operating team reads as under:
“Name(s) of Operation(s) : Exp.Lap. & Extraction of R.W.
Operative Findings: Numerous R.W. in the small gut with
yellowish collection of fluid in the peritoneal cavity.
Procedure: The abdomen was opened by midline incision
above and below the umbilicus. The peritoneal cavity was
found to contain yellowish fluid a small amount of which
was collected and sent for c/s & biomedical examination.
The small gut was found to contain many round worms.
They were collected at one place and extracted out by
making a nick in the gut. The wound was closed in layers.
A rubber corrugated drain was placed in the peritoneal
cavity. The abdomen was closed in one layer by vieryl.
skin was left open.”
6.
Learned SCDRC found that the patient was haemophilic and not peritonitis
as diagnosed by the Respondents. However, since the platelets count was 35000
per cu.mm against normal range of 1.5 lakhs to 4 lakhs per cu. mm, the Operating
Surgeon was medically negligent in operating patient when the platelets count was
so low. Thus, the opposite party was found negligent in carrying out surgery. The
SCDRC awarded a sum of Rs. 4,00,000/- as compensation to be paid by the Kurji
Holy Family Hospital-Opposite Party No.1 and Rs. 2,00,000/- by the Opposite
Party No.3-Operating Surgeon with 6 percent simple interest, apart from Rs.
32,000/- as expenditure incurred in medical treatment and the litigation costs of
Rs. 25,000/-. In appeal by the Operating Surgeon, the amount of compensation
awarded against Operating Surgeon was set aside by NCDRC.
7.
The NCDRC though held the Opposite Party No. 3 wee bit negligent but, it
found that the amount of compensation awarded by the SCDRC and paid by the
3
Kurji Holy Family Hospital is just a proper compensation. The Operating Surgeon
was warned to be careful in future.
8.
The argument of the learned counsel for the Appellant is that it is a case of
sheer medical negligence in operating the son of the Appellant even though he
had low platelet count as 35000 cu.mm as against normal platelet count of 1.5
lakhs cu.mm to 4 lakhs cu. mm.
9.
On the other hand, learned counsel for the Respondents argued that when
the patient was admitted on 10.11.1995, there was haemorrhage in both eyes for
the last five days. After admission as per the affidavit of Dr. Hare Ram Singh, the
first BT and CT test were done at about 8.55 pm (pg. 23 of paper book) which was
quite low. The second test which was higher than the normal bleeding and clotting
time was conducted at 7.30 AM on 11.11.1995 (pg. 24 of paper book). Another test
was conducted at 9.00 AM on 11.11.1995 (pg. 25 of paper book). The last test
before the surgery was conducted at 10.30 AM.
10.
It is thus, contended that the patient was in difficult and critical medical
condition. Therefore, the option with the Surgeon was to try to save life by
removing the round worms and transfuse blood to facilitate recovery of the patient.
It was bona fide decision taken by the Operating Surgeon in the situation in which
the patient was. Therefore, performing of surgery on 11.11.1995 at 11.15 AM is not
a case of medical negligence.
11.
It is contented that the affidavit of Dr. Hare Ram Singh is in respect of
reports immediately before the surgery but there is no report in respect of the
medical condition of the patient at the time of his admission to the Kurji Holy
Family Hospital. Therefore, the affidavit of Dr. Hare Ram Singh is not the complete
evidence as without reporting about the condition of the patient at the time of
4
admission, it is not possible for another doctor to report whether the action of
Operating Surgeon was negligent or not.
12.
At the time of admission, the recorded history of the patient is complaint of
pain in abdomen, fever and haemorrhage in both eyes for the past five days.
However, there is no evidence of critical condition of the patient to be operated
upon even with low platelet count. The surgery to remove round worms is not
proved to be of immediate necessity to save life of a patient who had critical
platelet count. In the absence of any evidence that the surgery was the only life
saving option available at that time, the action to operate upon the patient cannot
be said to be prudent decision. This Court recently in <cite>Arun Kumar Manglik v.
Chirayu Medical Health and Medicare Private Ltd.</cite>4 held as under:-
The
threshold
unreasonable.
“53. In the practice of medicine, there could be varying
approaches to treatment. There can be a genuine
difference of opinion. However, while adopting a course of
treatment, the medical professional must ensure that it is
not
to prove
unreasonableness is set with due regard to the risks
associated with medical treatment and the conditions
under which medical professionals function. This is to
avoid a situation where doctors resort to ‘defensive
medicine’ to avoid claims of negligence, often to the
detriment of the patient. Hence, in a specific case where
unreasonableness in professional conduct has been
proven with regard to the circumstances of that case, a
professional cannot escape liability for medical evidence
merely by relying on a body of professional opinion.”
13.
In fact, this Court in <cite>Kusum Sharma and Others v. Batra Hospital and
Medical Research Centre and Others5</cite>, held that the “Doctors in complicated
cases have to take chance even if the rate of survival is low. The professional
should be held liable for his act or omission, if negligent; is to make life safer and
to eliminate the possibility of recurrence of negligence in future”. But, in the
4 <cite>2019 SCC OnLine SC 197
5 (2010) 3 SCC 480</cite>
5
absence of any evidence that the surgery was the only option even with low blood
platelets, the finding of negligence of the operating surgeon cannot be ignored.
14.
Thus, we find that it is a case of unreasonable decision of the Operating
Surgeon to operate and not a case of “bit negligent” so as to absolve the surgeon
from the allegation of medical negligence. Consequently, the finding of NCDRC to
that extent is set aside.
15.
In respect of amount of compensation, the NCDRC held that sum of
Rs.4,00,000/- awarded by the SCDRC against the Hospital is just compensation.
The appellant relies upon judgment of this court reported as <cite>V. Krishnakumar v.
State of Tamil Nadu and Others6</cite> to claim enhanced amount of compensation. In
the said case of medical negligence at the time of delivery of a baby girl born to
middle class family, this Court held as under:-
“19. The principle of awarding compensation that can be
safely relied on is restitutio in integrum. This principle has
been recognised and relied on in <cite>Malay Kumar Ganguly v.
Sukumar Mukherjee</cite> 7 and in <cite>Balram Prasad case</cite>8, in the
following passage from the latter: (Malay Kumar Ganguly
case, SCC p. 282, para 170)
“170. Indisputably, grant of compensation
involving an accident is within the realm of law
of torts. It is based on the principle of restitutio
in integrum. The said principle provides that a
person entitled to damages should, as nearly
as possible, get that sum of money which
would put him in the same position as he
would have been if he had not sustained the
wrong. (See Livingstone v. Rawyards Coal
Co9)”
An application of this principle is that the aggrieved
person should get that sum of money, which would put
him in the same position if he had not sustained the
wrong. It must necessarily result in compensating the
6 (2015) 9 SCC 388
7 (2009) 9 SCC 221
8 (2014) 1 SCC 384
9 (1880) LR 5 AC 25 (HL)
6
aggrieved person for the financial loss suffered due to the
event, the pain and suffering undergone and the liability
that he/she would have to incur due to the disability
caused by the event.”
16.
In a Judgment of this Court reported as <cite>National Insurance Company
Limited v. Pranay Sethi and Others10</cite>, a Constitution Bench has laid down
parameters for the grant of compensation in respect of claims arising out of Motor
Vehicular accidents as just compensation has to be determined on the foundation
of fairness, reasonableness and equitability on acceptable legal standard because
such determination can never be in arithmetical exactitude. The Court held as
under:-
“55. Section 168 of the Act deals with the concept of "just
compensation" and the same has to be determined on the
foundation of fairness, reasonableness and equitability on
acceptable legal standard because such determination
can never be in arithmetical exactitude. It can never be
perfect. The aim is to achieve an acceptable degree of
proximity to arithmetical precision on the basis of
materials brought on record in an individual case. The
conception of "just compensation" has to be viewed
through the prism of fairness, reasonableness and non-
violation of the principle of equitability. In a case of death,
the legal heirs of the claimants cannot expect a windfall.
Simultaneously, the compensation granted cannot be an
apology for compensation. It cannot be a pittance.
Though the discretion vested in the tribunal is quite wide,
yet it is obligatory on the part of the tribunal to be guided
by the expression, that is, "just compensation". The
determination has to be on the foundation of evidence
brought on record as regards the age and income of the
deceased and thereafter the apposite multiplier to be
applied. The formula relating to multiplier has been clearly
stated in Sarla Verma11 and it has been approved in
Reshma Kumari12. The age and income, as stated earlier,
have to be established by adducing evidence. The
tribunal and the courts have to bear in mind that the basic
principle lies in pragmatic computation which is in
10 (2017) 16 SCC 680
11 (2009) 6 SCC 121
12 (2013) 9 SCC 65
7
proximity to reality. It is a well-accepted norm that money
cannot substitute a life lost but an effort has to be made
for grant of just compensation having uniformity of
approach. There has to be a balance between the two
extremes, that is, a windfall and the pittance, a bonanza
and the modicum. In such an adjudication, the duty of the
tribunal and the courts is difficult and hence, an
endeavour has been made by this Court for
standardisation which in its ambit includes addition of
future prospects on the proven income at present. As far
as future prospects are concerned, there has been
standardisation keeping in view the principle of certainty,
stability and consistency. We approve the principle of
"standardisation" so that a specific and certain
multiplicand is determined for applying the multiplier on
the basis of age.”
17.
Thus, the compensation has to be calculated on the basis of twin criteria of
age and income. But in the absence of income of the father or family, there is no
legally acceptable norm available on record for the enhancement of compensation.
18.
The SCDRC has awarded a sum Rs.4,00,000/- as compensation payable
by the Hospital and Rs.2,00,000/- by the Operating Surgeon. The NCDRC found a
sum of Rs. 4,00,000/- as just compensation and absolved the Operating Surgeon
from any liability. When the SCDRC has awarded a sum of Rs. 6,00,000/- as
compensation, the NCDRC should not have interfered with the amount of
compensation but could apportion the amount of compensation payable by the
Operating Surgeon to the Hospital as the liability of Hospital to pay the amount of
compensation is vicarious as the death has occurred during the course of
employment of Operating Surgeon with the said Hospital.
19.
Therefore, we find that the entire amount of Rs.6,00,000/- is payable by the
Hospital which would be just compensation in the facts and circumstances of the
present case. The enhanced amount of compensation of Rs.2,00,000/- shall be
8
paid by the Hospital along with interest at the rate of 6% per annum from the date
of the order passed by SCDRC on 12.11.2014.
20. Thus, the appeal is partly allowed in the manner mentioned above.
|
1. Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 13.08.2021 passed by the High
Court of Judicature at Madras in O.S.A. No.292 of 2019, by
which the Division Bench of the High Court has dismissed
the said appeal preferred by the original plaintiff rejecting the
plaint/suit filed by the appellant herein – original plaintiff on
the ground that the suit is barred by Section 34 of the
1
SARFAESI Act, 2002, the original plaintiff has preferred the
present appeal.
2. The facts leading to the present appeal in nutshell are as
under:
2.1 That original defendant No.3 respondent No.3 herein
(hereinafter referred to as original defendant No.3) availed the
loan facility vide Rupee Loan Agreement dated 26.07.2011
from defendant No.2 respondent No.2 herein – SREI
Infrastructure Finance Limited and availed the financial
assistance to the extent of Rs.500 crores. The appellant
herein – original plaintiff stood as guarantor. A mortgage was
created by the appellant herein – original plaintiff in favour of
defendant No.2 – respondent No.2 herein – financial creditor
over its factory land at Evalur, Tamil Nadu along with plant
and machinery, by way of deposit of title deeds in terms of
the declaration to secure the repayment, discharge and
redemption by original defendant No.3. That original
defendant No.3 – corporate debtor could not pay the loan
amount, therefore the proceedings under the Insolvency
Bankruptcy Code, 2016 (IBC) was initiated against the
2
corporate debtor. An application under Section 7 of the IBC
was filed by the State Bank of India against original
defendant No.3 – corporate debtor. The default amount was
INR 923,75,00,000/. The resolution process was initiated
and an interim resolution professional was appointed under
the provisions of IBC. A resolution plan came to be approved
by the Committee of Creditors under Section 30(4) of the IBC.
The learned Adjudicating Authority vide order dated
17.04.2018 approved the resolution plan. Under the
approved resolution plan an amount of
INR
241,71,84,839.18 was required to be paid and 67,23,710
equity shares of the corporate debtor were to be allotted. As
per the case on behalf of the plaintiff – appellant herein on
payment of aforesaid amount and transfer of aforesaid shares
No Due Certificate was issued in favour of the corporate
debtor – original defendant No.3 on 25.06.2018 and the
corporate debtor came to be discharged. It appears that
thereafter an assignment agreement was executed between
defendant No.2 – respondent No.2 herein and defendant No.1
– respondent No.1 herein on 30.06.2018, assigning all the
rights, titles and interest in all the financial assistance
3
provided by defendant No.2 – financial creditor respondent
No.2 herein in terms of agreement dated 26.07.2011 in
favour of assignee respondent No.1. As assignee
respondent No.1 herein pursuant to the assignment
agreement dated 30.06.2018 had issued letter to all the
interested parties, namely, assignor financial creditor,
guarantor and corporate debtor informing that assignor –
financial creditor respondent No.2 herein had absolutely
assigned all the rights, title and interest in all the financial
assistance granted by financial creditor respondent No.2
herein from time to time to corporate debtor in favour of
assignee respondent No.1 herein vide assignment
agreement dated 30.06.2018. The said letter was responded
by the plaintiff – appellant herein stating the following :
(i)
“Respondent No.2 had duly filed its claim
before the Resolution Professional in accordance
with the provisions of IBC.
(ii)
This claim was crystallised and admitted at
INR 577.90 Crores and also formed part of the
approved Resolution Plan of Vedanta Limited.
Pursuant to the approved Resolution Plan,
(iii)
the entire debt of Respondent No.2 has been
discharged by way of allotment of shares and
payment in cash on 6.06.2018 and 21.06.2018
respectively.
4
(iv)
It was also highlighted that in terms of
section 3.2(xi) of the approved Resolution Plan,
upon discharge of financial creditors (including
Respondent No.2), the financial creditors were
required to redeliver and cause to be delivered to
Petitioner all documents encumbered with the
financial creditors.
(v)
Therefore, when no due was outstanding
and in fact redelivery of encumbered assets was
required, there was no basis under contract or law
for assignment of loan/debts/securities.
(vi)
It was emphasised that assignment
agreement dated 30.06.2018 was null, void ab
initio and without any basis.”
2.2 That thereafter on the basis of the assignment agreement
dated 30.06.2018, the assignee – original defendant No.1 –
respondent No.1 herein initiated the proceedings against the
plaintiff – appellant herein, who stood as guarantor, under
Section 13(2) of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act) by issuing a notice dated 27.12.2018,
demanding the payment of INR 587,10,08,309 due under the
rupee term loan agreement dated 26.07.2011. Notice dated
27.12.2018 of the SARFAESI Act was responded by the
plaintiff – appellant herein vide reply dated 20.02.2019
stating that pursuant to repayment of amount in terms of the
approved resolution plan, all the claims of financial creditor
5
respondent No.2 herein stand extinguished and
consequently, no claim can be made by the assignee
respondent No.1 herein for the same default and that no
amount is due and payable to assignee respondent No.1.
That thereafter a possession notice dated 19.06.2019 was
issued under rule 8 (1) of the Security Interest (Enforcement)
Rules, 2002 by the assignee to the plaintiff – appellant
herein. Thus a possession notice was published in the
newspaper on 22.06.2019.
2.3 That thereafter the plaintiff – appellant herein instituted a
Civil Suit being C.S.(D) No.18962 of 2019 on 22.06.2019
before the High Court of Madras and prayed for the following
reliefs:
“(i). To declare that the 1st Defendant
acquired no rights against the Applicant
herein under the Assignment Deed dated
30.06.2018, arid consequently, declare that
the 1st Defendant is not a secured creditor
visavis, the Applicant herein; and
(ii). Consequently, to declare Possession
Notice dated 19.6.2019 issued by the 1st
Defendant herein has null and vend and
render justice.”
6
2.4 The suit was filed with an application seeking leave to file the
suit with the aforesaid prayers. As observed hereinabove, the
suit was filed on 22.06.2019. Immediately thereafter
appellant herein – plaintiff also filed an application before the
Debt Recovery Tribunal (DRT), Chennai under Section 17(1)
of SARFAESI Act on 17.07.2019 against the possession
notice dated 19.06.2019 praying that the assignee has
acquired no rights under the assignment agreement dated
30.06.2018 and consequently, assignee respondent No.1 is
not a secured creditor visavis the appellant – plaintiff and
also to declare possession notice dated 19.06.2019 as null
and void. The registry of DRT returned the application filed
under Section 17(1) of SARFAESI Act by observing as under:
“Counsel for the Appellant has represented SA
without complying with the defects read out,
however with an endorsement that he is a
proper and necessary party and that relief
prayed for vide Para VII(i) is maintainable. He
has reiterated that relief has to be sought in
relation to the notice under challenge.
May be returned.”
2.5 The defendants appeared before the High Court in C.S.(D)
No.18962 of 2019, affidavits and counter affidavits were filed
by the parties to the suit. By order dated 30.09.2019, the
7
learned Single Judge of the High Court dismissed application
No.4322 of 2019 and C.S.(D) No.18962 of 2019 on the
ground of jurisdiction observing that the suit is for land and
property situated outside the jurisdiction of the court and
therefore the suit is not maintainable. It was also observed
and held that the civil court’s jurisdiction is barred in view of
Section 34 of the SARFAESI Act and only DRT had
competence to decide the matter.
3. Feeling aggrieved and dissatisfied with the order passed by
the learned Single Judge of the High Court dismissing the
application as well as the suit vide order dated 30.09.2019,
appellant herein – original plaintiff filed an appeal before the
Division Bench of the High Court being O.S.A. No.292 of
2019. By the impugned judgment and order the Division
Bench of the High Court has dismissed the said appeal in
view of the bar under Section 34 of the SARFAESI Act.
4. Feeling aggrieved and dissatisfied with the impugned
judgment and order passed by the Division Bench of the High
Court confirming the judgment and order passed by the
learned Single Judge rejecting the plaint/dismissing the suit
8
as not maintainable in view of the bar under Section 34 of
the SARFAESI Act, original plaintiff – appellant herein has
preferred the present appeal.
5. Dr. A.M. Singhvi, learned Senior Advocate has appeared on
behalf of the appellant and Shri Shyam Divan, learned Senior
Advocate has appeared with Shri Huzefa Ahmadi, learned
Senior Advocate, on behalf of the respondents – defendants.
5.1 Dr. Singhvi, learned Senior Advocate appearing on behalf of
the plaintiff appellant herein has vehemently submitted
that in the facts and circumstances of the case both, learned
Single Judge as well as the Division Bench have materially
erred in rejecting the plaint and dismissing the suit on the
ground that the suit is barred in view of the bar under
Section 34 of SARFAESI Act.
5.2 It is submitted that the High Court has not properly
appreciated and considered the fact that in the suit plaintiff
had pleaded the fraud and it was the case on behalf of the
plaintiff – appellant herein that the assignment agreement
dated 30.06.2018 is fraudulent and relief was sought to
9
declare the assignment agreement dated 30.06.2018 as null
and void by the plaintiff – appellant herein, the said relief
cannot be granted by the DRT under the provisions of the
SARFAESI Act and therefore the bar under Section 34 of the
SARFAESI Act shall not be applicable.
5.3 It is submitted that when the suit is filed alleging ‘fraud’ the
bar under Section 34 of the SARFAESI Act shall not be
applicable and the suit for the reliefs sought in the plaint
shall be maintainable.
5.4 It is submitted that even otherwise considering the fact that
subsequently and before the assignment agreement, the
proceedings under the IBC against the corporate debtor with
respect to the loan agreement dated 26.07.2011were initiated
and the resolution plan was approved and entire amount due
and payable under the approved resolution plan was paid to
the successful resolution applicants and even 67,23,710
equity shares of the corporate debtor came to be transferred
as per the approved resolution plan and the original loanee –
corporate debtor was discharged and NOC was issued,
therefore, assignment deed can be said to be ‘fraudulent’
10
after the resolution plan under IBC and the amount paid
under the resolution plan and on transfer of the shares as
per the approved resolution plan and the corporate debtor
was discharged. Therefore, there shall not be any dues to be
paid by the appellant herein as guarantor.
5.5 It is submitted that as such not only the assignment
agreement dated 30.06.2018 is null and void and is
‘fraudulent’ even the assignee cannot be said to be a secured
creditor so far as the appellant is concerned.
5.6 It is further submitted by Dr. Singhvi, learned Senior
Advocate appearing on behalf of the appellant that there is
no legally enforceable debt by the plaintiff – appellant herein
for the reasons stated above and therefore the initiation of
the proceedings under the SARFAESI Act are bad in law and
not maintainable.
5.7 In the alternative, it is prayed by Dr. Singhvi, learned Senior
Advocate appearing on behalf of the appellant that in case
this Court is not inclined to entertain the present appeal,
confirming the judgment and order passed by the High Court
11
rejecting the plaint/dismissing the suit, in that case the
original plaintiff – appellant may be given an opportunity to
file the proceedings before the DRT under the SARFAESI Act
and all the contentions including that assignment agreement
is null and void; that assignee cannot be said to be the
secured creditor under the assignment agreement dated
30.06.2018; and that there are no dues so far as the
appellant – plaintiff is concerned may be kept open. He has
stated that in that case the appellant shall file appropriate
proceedings before the DRT within a period of two weeks
from today.
6. Present appeal is vehemently opposed by Shri Shyam Divan,
learned Senior Advocate and Shri Huzefa Ahmadi, learned
Senior Advocate, appearing on behalf of the contesting
defendants – original defendants – respondents herein.
6.1 It is vehemently submitted that the suit before the learned
Single Judge filed by the appellant is rightly held to be not
maintainable in view of the bar under Section 34 of the
SARFAESI Act.
12
6.2 It is vehemently submitted that as such the suit is rightly
held to be not maintainable. It is submitted that initiation of
the proceedings by the appellant by filing of the suit for the
reliefs sought in the plaint is nothing but abuse of process of
law and court.
6.3 It is submitted that the allegations of ‘fraud’ are nothing but
a clever drafting only with a view to bring the suit
maintainable before the civil court despite the bar under
Section 34 of the SARFAESI Act.
6.4 It is vehemently submitted by the learned senior counsel
appearing on behalf of the respondents herein – original
defendants that except using the word ‘fraud’/’fraudulent’,
there are no other particulars pleaded in support of the
allegations of fraud. It is submitted that pleading of ‘fraud’ is
made at two places in the plaint namely para 31 and para
46. At both these places, the assertion is that consequent to
the alleged discharge of the debt of the corporate debtor
through the proceedings under the IBC, no assignment of
such debt in favour of assignee could have been made and,
13
thus, for this reason, the initiation of proceedings under the
SARFAESI Act, is fraudulent. It is submitted that on the
aforesaid ground the assignment deed cannot be said to be
‘fraudulent’.
6.5 It is further submitted that the word ‘fraud’/’fraudulent’ are
used in the plaint only with a view to bring the suit
maintainable before the civil court and to get out of the bar
under Section 34 of the SARFAESI Act. It is submitted that
after a month of filing of the suit, the appellant filed an
application under Section 17(1) of SARFAESI ACT before the
DRT, Chennai, assailing the possession notice issued by the
assignee under section 13(4) of the SARFAESI Act, however,
in the said application, no allegation of any kind of fraud was
made against any of the respondents.
6.6 It is submitted that in any case a bare review of the
assertions in paras 31 and 46, it can be seen that no
material particulars have been pleaded so as to constitute a
pleading of ‘fraud’ as required under Order VI Rule 4 of the
Civil Procedure Code,1908 (CPC). It is submitted that apart
14
from use of adjectives such as ‘fraudulent’ etc., qua the
assignment deed, no actual material particulars have been
given with regard to the ‘fraud’. It is submitted that the
pleadings in para 31 and para 46 do not satisfy the test of
‘fraud’ under Section 17 of the Indian Contract Act, 1872.
6.7 It is vehemently submitted by the learned Senior Advocates
appearing on behalf of the respondents herein that as per the
settled preposition of law pleading without any material
particulars would not tantamount to a pleading of ‘fraud’.
Reliance is placed on the decisions of this Court in the cases
of <cite>Bishundeo Narain & Anr. vs. Seogeni Rai & Jagernath,
(1951) SCR 548</cite>; <cite>Ladli Parshad Jaiswal vs. The Karnal
Distillery Co. Ltd., Karnal &Ors.,(1964) 1 SCR 270</cite>; <cite>Canara
Bank vs. P. Selathal & Ors.,(2020) 13 SCC 143</cite>; <cite>H.S
Goutham vs. Rama Murthy & Anr.,(2021) 5 SCC 241</cite>; <cite>Ram
Singh vs. Gram Panchayat Mehal Kalan & Ors.,(1986) 4
SCC 364</cite>; and <cite>Union of India & Anr. vs. K.C Sharma &
Company & Ors.,(2020) 15 SCC 209</cite>.
15
6.8 Making the above submissions and relying upon the
decisions of this Court in aforesaid cases, it is prayed to
dismiss the present appeal.
7. We have heard the learned senior counsel appearing on
behalf of the respective parties at length.
7.1 It is the case on behalf of the plaintiff – appellant herein that
in the plaint there are allegations of the ‘fraud’ with respect
to the assignment agreement dated 30.06.2018 and it is the
case on behalf of the plaintiff – appellant herein that
assignment agreement is ‘fraudulent’ in as much as after the
full payment as per the approved resolution plan under the
IBC and the original corporate debtor is discharged, there
shall not be any debt by the plaintiff – appellant herein as a
guarantor and therefore Assignment deed is fraudulent.
Therefore, it is the case on behalf of the plaintiff – appellant
herein that the suit in which there are allegations of ‘fraud’
with respect to the assignment deed shall be maintainable
and the bar under Section 34 of SARFAESI Act shall not be
applicable.
16
7.2 However, it is required to be noted that except the words
used ‘fraud’/’fraudulent’ there are no specific particulars
pleaded with respect to the ‘fraud’. It appears that by a clever
drafting and using the words ‘fraud’/’fraudulent’ without any
specific particulars with respect to the ‘fraud’, the plaintiff –
appellant herein intends to get out of the bar under Section
34 of the SARFAESI Act and wants the suit to be
maintainable. As per the settled preposition of law mere
mentioning and using the word ‘fraud’/’fraudulent’ is not
sufficient to satisfy the test of ‘fraud’. As per the settled
preposition of law such a pleading/using the word ‘fraud’/
‘fraudulent’ without any material particulars would not
tantamount to pleading of ‘fraud’. In case of <cite>Bishundeo
Narain and Anr. (Supra)</cite> in para 28, it is observed and held
as under:
“.... Now if there is one rule which is better
established than any other, it is that in cases of
fraud, undue influence and coercion, the parties
pleading it must set forth full particulars and the
case can only be decided on the particulars as
laid. There can be no departure from them in
evidence. General allegations are insufficient even
to amount to an averment of fraud of which any
court ought to take notice however strong the
language in which they are couched may be, and
17
the same applies to undue influence and coercion.
See Order 6, Rule 4, Civil Procedure Code.”
7.3 Similar view has been expressed in the case of <cite>Ladli Parshad
Jaiswal (Supra)</cite> and after considering the decision of the
Privy Council in <cite>Bharat Dharma Syndicate vs. Harish
Chandra (64 IA 146)</cite>, it is held that a litigant who prefers
allegation of fraud or other improper conduct must place on
record precise and specific details of these charges. Even as
per Order VI Rule 4 in all cases in which the party pleading
relies on any misrepresentation, fraud, breach of trust, wilful
default, or undue influence, particulars shall be stated in the
pleading. Similarly in the case of <cite>K.C Sharma & Company
(Supra)</cite> it is held that ‘fraud’ has to be pleaded with
necessary particulars. In the case of <cite>Ram Singh and Ors.
(Supra)</cite>, it is observed and held by this Court that when the
suit is barred by any law, the plaintiff cannot be allowed to
circumvent that provision by means of clever drafting so as to
avoid mention of those circumstances by which the suit is
barred by law of limitation.
18
7.4 In the case of <cite>T. Arivandandam vs. T.V. Satyapal & Anr.
(1977) 4 SCC 467</cite>, it is observed and held in para 5 as
under:
“5. We have not the slightest hesitation in
condemning the petitioner for the gross abuse of
the process of the court repeatedly and
unrepentently resorted to. From the statement of
the facts found in the judgment of the High Court,
it is perfectly plain that the suit now pending
before the First Munsif's Court, Bangalore, is a
flagrant misuse of the mercies of the law in
receiving plaints. The learned Munsif must
remember that if on a meaningful — not formal —
reading of the plaint it is manifestly vexatious,
and meritless, in the sense of not disclosing a
clear right to sue, he should exercise his power
under Order 7, Rule 11 CPC taking care to see
that the ground mentioned therein is fulfilled.
And, if clever drafting has created the illusion of a
cause of action, nip it in the bud at the first
hearing by examining the party searchingly under
Order 10, CPC. An activist Judge is the answer to
irresponsible law suits.”
7.5 A similar view has been expressed by this court in the recent
decision in the case of <cite>P. Selathal & Ors. (Supra)</cite>.
8. Having considered the pleadings and averments in the suit
more particularly the use of word ‘fraud’ even considering the
case on behalf of the plaintiff, we find that the allegations of
‘fraud’ are made without any particulars and only with a view
to get out of the bar under Section 34 of the SARFAESI Act
and by such a clever drafting the plaintiff intends to bring
19
the suit maintainable despite the bar under Section 34 of the
SARFAESI Act, which is not permissible at all and which
cannot be approved. Even otherwise it is required to be noted
that it is the case on behalf of the plaintiff – appellant herein
that in view of the approved resolution plan under IBC and
thereafter the original corporate debtor being discharged
there shall not be any debt so far as the plaintiff – appellant
herein is concerned and therefore the assignment deed can
be said to be ‘fraudulent’. The aforesaid cannot be accepted.
By that itself the assignment deed cannot be said to be
‘fraudulent’. In any case, whether there shall be legally
enforceable debt so far as the plaintiff – appellant herein is
concerned even after the approved resolution plan against
the corporate debtor still there shall be the liability of the
plaintiff and/or the assignee can be said to be secured
creditor and/or whether any amount is due and payable by
the plaintiff, are all questions which are required to be dealt
with and considered by the DRT in the proceedings initiated
under the SARFAESI Act. It is required to be noted that as
such in the present case the assignee has already initiated
the proceedings under Section 13 which can be challenged
20
by the plaintiff – appellant herein by way of application under
Section 17 of the SARFAESI Act before the DRT on whatever
the legally available defences which may be available to it. We
are of the firm opinion that the suit filed by the plaintiff –
appellant herein was absolutely not maintainable in view of
the bar contained under Section 34 of the SARFAESI Act.
Therefore, as such the courts below have not committed any
error in rejecting the plaint/dismissing the suit in view of the
bar under Section 34 of the SARFAESI Act.
9.
In view of the above and for the reasons stated above, the
present appeal fails and the same deserves to be dismissed
and is accordingly dismissed. However, it will be open for the
appellant herein to initiate appropriate proceedings before
the DRT under Section 17 of the SARFAESI Act against the
initiation of the proceedings by the assignee – respondent
No.1 herein under Section 13 of the SARFAESI Act inter alia
on the ground: (1) that the assignee cannot be said to be
secured creditor so far as the appellant is concerned; (2) that
there is no amount due and payable by the plaintiff –
appellant herein on the ground that in view of the
21
proceedings under IBC against the corporate debtor and the
corporate debtor being discharged after the approved
resolution plan, there shall not be any enforceable debt
against the appellant. If such an application is filed within a
period of two weeks from today the same be considered in
accordance with law and on merits after complying with all
other requirements which may be required while filing the
application under Section 17 of the SARFAESI Act. However,
it is made clear that we have not expressed anything on
merits in favour of either of the parties on the aforesaid two
issues. Present appeal is accordingly dismissed, however, in
the facts and circumstances of the case there shall be no
order as to costs
|
2.
These appeals arise out of the judgment dated 23.02.2012
passed by the High Court of Punjab and Haryana at Chandigarh
in LPA No.264 of 2012 and Order dated 04.05.2012 in LPA 1607-
LPA of 2012 dismissing the appeals and the order dated 04.05.2012
in review petition in RA No.LP-16 of 2012 dismissing the review filed
by the appellant-Board by holding that the SLP(C) No.10896 of
2011 involving the same issue i.e. parity of pay scale is already
pending before the Supreme Court.
1
3.
The parity in the pay scales of two posts – Head Clerks and
the Internal Auditors in Group XII of the Punjab State Electricity
Board (PSEB) is the subject matter of the issue in these present
appeals. Brief facts of the case are as under:-
The Punjab State Electricity Board (PSEB), in exercise of the
power conferred under Section 79(c) of the Electricity (Supply) Act,
1948 framed “Punjab Public Works Departments (Electricity Branch)
State Service Class-III (Subordinate Posts) Rules, 1958 (adopted by
the Board) Amendment Regulations, 1975. The recruitment and
conditions of service governing the Head Clerks was introduced on
11.09.1985 which is called the Punjab State Electricity Board
Ministerial Services Class–III Regulations, 1985 providing for
educational qualifications and minimum experience required for
Head Clerks. Initially, the pay scale of Head Clerks was Rs.150-300
and the pay scale of Internal Auditors was Rs.130-240. The pay
scale of Internal Auditors was revised to Rs.150-300 w.e.f.
01.08.1963. Head Clerks and Internal Auditors were getting same
pay scale of Rs.225-500 from 01.06.1967 and Rs.620-1200 from
01.01.1978. From 21.03.1989, revised scale of pay of regular
employees was issued by the PSEB, and w.e.f. 01.01.1986, the
scale of pay of the Head Clerks and the Internal Auditors was
revised to Rs.1640-2925.
2
4.
Pay Anomaly Committee was constituted by the appellant-
Board to review the anomalies in the pay scales of various cadre.
That on the basis of the report of Pay Anomaly Committee, the pay
scale of both the categories - Internal Auditors and Head Clerks
have been improved vide office order No.223/Fin./PRC-1988 dated
03.10.1990. The Internal Auditors have been allowed the revised
scale of Rs.1800-3200 w.e.f. 01.01.1986 considering that the posts
of Internal Auditors are filled by 55% from direct recruitment and
45% by promotion. The Head Clerks have been allowed the pay
scale of Rs.2000-3500 with effect from 01.01.1986 and thus linked
the scale of Head Clerk with Superintendent Grade-II under State
Government.
5.
Aggrieved by the order dated 03.10.1990 issued by the
appellant-Board and alleging disparity and violation of Article 14 of
the Constitution of India, the respondents preferred Civil Writ
Petition No.10117 of 1992 before the High Court of Punjab and
Haryana at Chandigarh, contending that the Internal Auditors, Head
Clerks as well as Sub Fire Officers belong to same group viz. Group
XII and that Internal Auditors were always on par with the Head
Clerks being the promotional post from the post of Circle
Assistants/ARAs Group XII. It was averred that vide order
3
dated 03.10.1990, the appellant-Board fixed the pay scale of the
Internal Auditor at Rs.1800-3200 and of the Head Clerks at
Rs.2000-3500 and thus disturbing the parity in the pay scales of two
posts which were being maintained for more than two decades.
According to the respondents, the pay scale of Rs.1800-3200 had
been given to the post of Circle Assistant from which the
respondents were being promoted and there is no justification to
give the same pay scale to the promotional post as well as feeder
cadre. The said revision of pay scale was totally illogical and
without any justification.
6.
In the counter affidavit filed before the High Court, the
appellant-Board contended that though the posts of Head Clerks
and Internal Auditors are categorised in Group XII, that cannot be
the reason for claiming parity of pay scale. It was averred that the
manner of recruitment, nature of duties and responsibilities of both
the cadres are entirely different and respondents cannot claim parity
of scale of pay. As per PSEB Ministerial Services Class-III
Regulations, 1975, the post of Head Clerk is a promotional post and
is generally available to the employees after completion of twenty-
five years of service; whereas in the case of Internal Auditors, they
are partly recruited directly from the market to the extent of 55% and
4
balance 45% from Circle Assistants/ARAs after obtaining option for
the purpose. According to the Board, on promotion the Circle
Assistant/ARA are also eligible to opt for the cadre of Head Clerk
and they cannot contend that they have not been given any
opportunity for the post of Head Clerk. It is averred that the exercise
of option to go in the channel of cadre of Internal Auditor is a
‘preferred option’ because of the promotional avenues with higher
scales of pay. In view of this position, the Pay Anomaly Committee
did not accept the demand of Internal Auditors to give parity with
Head Clerks in the matter of pay scale.
7.
Sub Fire Officers which is categorised in Group XII
approached the High Court by way of Civil Writ Petition No.9294 of
1993 seeking parity in pay scale as that of the Head Clerks and
Internal Auditors on the ground that they are included in the same
group viz., Group XII. The learned Single Judge vide judgment
dated 21.01.2010 allowed the CWP No.9294 of 1993 filed by the
Sub Fire Officers by holding that till some point of time, persons
working as Head Clerks, Head Clerk-cum-Divisional Accountants
and Internal Auditors were given same scale of pay and therefore,
parity of scale of pay cannot be denied to the Sub Fire Officers
5
when the scales were increased for other three classes of persons
within Group XII.
8.
Against the order dated 21.01.2010 in CWP No.9294 of 1993,
the appellant-Board preferred LPA No.713 of 2010 which came to
be dismissed by the judgment dated 28.09.2010. Aggrieved by the
judgment dated 28.09.2010, the appellant preferred SLP(C)
No.10896 of 2011 before this Court wherein, notice was issued and
the same was pending for consideration before this Court.
9.
The learned Single Judge of the High Court by its order dated
11.11.2011 allowed the Civil Writ Petition No.10117 of 1992 filed by
the respondents-Internal Auditors claiming parity of pay scale with
the Head Clerks on the erroneous assumption that the respondents
are Sub Fire Officers or similarly situated as Sub Fire Officers who
are seeking parity of wages with other persons. The learned Single
Judge relying on the judgment in CWP No.9294 of 1993 dated
21.01.2010 allowed the writ petition without going into the merits of
the contention of either of the parties. Appeal (LPA No.713 of 2010)
preferred by the appellant-Board also came to be dismissed on the
ground that SLP (C) No.10896 of 2011 is pending before the
Supreme Court.
6
10.
In these appeals, we are concerned with the question of parity
of pay scale between the Head Clerks and the Internal Auditors.
Though various contentious issues arose for determination between
the parties, learned Single Judge as well as the Division Bench of
the High Court proceeded under the erroneous footing as if the
respondents are placed on par with Sub Fire Officer and held that
the issue is covered by the judgment in CWP No.9294 of 1993 and
that the issue is pending before the Supreme Court in SLP(C)
No.10896 of 2011. Since the writ petition was filed way back in the
year 1992 and the lis is pending between the parties for more than
twenty-six years, we have proceeded to consider the matter on
merits without remitting the matter back to the High Court. We have
heard the parties at length.
11. We have heard Mr. Nidhesh Gupta, learned Senior counsel
appearing for appellant-Board at length and Mr. Saravpreet Singh,
learned counsel appearing for the respondents. The learned Senior
counsel Mr. Nidhesh Gupta has inter alia made the following
submissions:-
Appellant-Board is competent to revise the pay scales in
terms of Regulation 3(g) of Punjab State Electricity Board
(Revised Pay) Regulations, 1988 in relation to any post
specified in Column No.2 of the Schedule.
7
Internal Auditors who have been directly recruited as Internal
Auditors against an open advertisement have consciously
applied for the post in the pay scale of Rs.1800-3200 cannot
raise a plea that they will have to be placed on par with Head
Clerks.
Promotional avenues available to the Internal Auditors are
far more in comparison to the promotional avenues which
are available to the Head Clerks; the pay scales which are
available in the promotional position are sharply higher
compared to the Head Clerks and exercise of option as
Internal Auditor is a “preferred option”.
Internal Auditors cannot claim parity with Head Clerks on the
premise that they are in Group XII; though there were only
four cadre in the year 1988 in Group XII, seven more posts
were added in Group XII by Finance Circular No.44/89
dated 15.06.1989. Thereafter, vide Finance Circular
No.45/89 dated 26.06.1989, there were further increase of
seven posts in Group XII and total fourteen posts were
added to Group XII. For all these posts, mode of recruitment,
qualifications, nature of duties and responsibilities are
entirely different and merely because the posts are
mentioned in one cadre, they cannot claim parity of scale of
pay.
If parity of pay scale is to be extended to the posts merely on
the ground that they are categorised in one Group
irrespective of the mode of recruitment, qualifications, nature
of duties and responsibilities, it will lead to huge financial
repercussion causing huge financial loss to PSEB which is a
public service-oriented institution.
8
12.
Learned counsel for the respondents Mr. Saravpreet Singh
submitted that posts of Internal Auditors being in Group XII, who
were on par with Head Clerks should be given parity of pay scale as
that of Head Clerks, irrespective of the promotional avenues
available to the Internal Auditors. It was submitted that the Internal
Auditors were always treated on par with Head Clerks being the
promotional post from the post of Circle Assistants/ARAs and when
so, there was no justification to disturb the parity in the pay scales of
two posts which were being maintained for quite some time.
Contention of the respondents is that there was a parity of pay
scales of the posts of Internal Auditors and Head Clerks for about
two decades and while so, the order dated 03.10.1990 issued by
the appellant-Board revising the pay scale of Head Clerks from
Rs.1640-2925 to Rs.2000-3500 has disturbed the long-standing
parity of pay scales of the posts of Head Clerks and the Internal
Auditors. It is their contention that where the parity in the pay scales
of two posts has been maintained over a period of time then, if the
pay scale of one post is revised, the said pay scale is to be
maintained for other post also and disturbing such parity would be
arbitrary and violative of the Article 14 and Article 16 of the
Constitution of India. Much arguments were advanced on the
retrospective operation of the order dated 03.10.1990 (w.e.f.
9
01.01.1986) contending that such retrospective operation has
caused serious prejudice to the Internal Auditors who have been
promoted between the year 1986 to 1990.
13.
In the light of the submissions, several issues arise for
determination inter alia are as under:-
Whether the Internal Auditors are entitled to claim parity of
pay scale with Head Clerks and Head Clerk–cum–Divisional
Accountants irrespective of the nature of recruitment,
qualifications and nature of duties and responsibilities?
Can the Internal Auditors claim equity of pay scale, merely
because they are in the same group (Class-XII) irrespective
of the nature of work and the internal qualification for
recruitment. In view of the promotional avenues available to
the Internal Auditors and the high pay scales which are
available in the promotional position, opting for Internal
Auditors, is it not a “preferred option”?
When there are about fourteen posts categorised in Group
XII, can Internal Auditors claim parity of pay scale with the
Head Clerks merely because they were categorised in
Group XII?
14. Ordinarily, the courts will not enter upon the task of job
evaluation which is generally left to expert bodies like the Pay
Commission etc. The aggrieved employees claiming parity must
establish that they are unjustly treated by arbitrary action or
10
discriminated. In <cite>Kshetriya Kisan Gramin Bank v. D.B. Sharma
and Others (2001) 1 SCC 353</cite>, this Court held as under:-
“7. The next question that arises for consideration is, as to what
extent the High Court would be justified in exercise of its
extraordinary jurisdiction under Article 226 to interfere with the
findings of an expert body like the Equation Committee. In State of
U.P. and Others v. J.P. Chaurasia and Others (1989) 1 SCC 121,
this Court unequivocally held that in the matter of equation of posts
or equation of pay, the same should be left to the Executive
Government, who can get it determined by expert bodies like the
Pay Commission, and such expert body would be the best judge to
evaluate the nature of duties and responsibilities of the posts and
when such determination by a commission or committee is made,
the court should normally accept it and should not try to tinker with
such equivalence unless it is shown that it was made with
extraneous consideration….”
15.
In <cite>S.C. Chandra and Others v. State of Jharkhand and
Others (2007) 8 SCC 279</cite>, this Court held as under:-
“33. It may be mentioned that granting pay scales is a purely
executive function and hence the court should not interfere with the
same. It may have a cascading effect creating all kinds of problems
for the Government and authorities. Hence, the court should
exercise judicial restraint and not interfere in such executive
function vide <cite>Indian Drugs & Pharmaceuticals Ltd. v. Workmen,
Indian Drugs & Pharmaceuticals Ltd. (2007) 1 SCC 408</cite>.
……….
35. In our opinion fixing pay scales by courts by applying the
principle of equal pay for equal work upsets the high constitutional
principle of separation of powers between the three organs of the
State. Realising this, this Court has in recent years avoided
applying the principle of equal pay for equal work, unless there is
complete and wholesale identity between the two groups (and there
too the matter should be sent for examination by an Expert
Committee appointed by the Government instead of the court itself
granting higher pay).
36. It is well settled by the Supreme Court that only because the
nature of work is the same, irrespective of educational qualification,
mode of appointment, experience and other relevant factors, the
principle of equal pay for equal work cannot apply vide <cite>Govt. of
W.B. v. Tarun K. Roy and Others (2004) 1 SCC 347</cite>.”
11
The same view was reiterated in <cite>Union Territory Administration,
Chandigarh and Others v. Manju Mathur and Another (2011) 2
SCC 452</cite>; <cite>State of Haryana and Others v. Charanjit Singh and
Others (2006) 9 SCC 321</cite> and in <cite>Hukum Chand Gupta v. Director
General, Indian Council of Agricultural Research and Others
(2012) 12 SCC 666</cite>.
16. Observing that granting parity in pay scales depends upon the
comparative evaluation of job and equation of posts, in <cite>Steel
Authority of India Limited and Others v. Dibyendu Bhattacharya
(2011) 11 SCC 122</cite>, this Court held as under:-
“30. ……….. the law on the issue can be summarised to the effect
that parity of pay can be claimed by invoking the provisions of
Articles 14 and 39(d) of the Constitution of India by establishing that
the eligibility, mode of selection/recruitment, nature and quality of
work and duties and effort, reliability, confidentiality, dexterity,
functional need and responsibilities and status of both the posts are
identical. The functions may be the same but the skills and
responsibilities may be really and substantially different. The other
post may not require any higher qualification, seniority or other like
factors. Granting parity in pay scales depends upon the
comparative evaluation of job and equation of posts. The person
claiming parity, must plead necessary averments and prove that all
things are equal between the posts concerned. Such a complex
issue cannot be adjudicated by evaluating the affidavits filed by the
parties.”
17. Mode of recruitment of Head Clerks and Internal Auditors
and the qualifications:- In the light of the above principles, let us
consider the claim of Internal Auditors claiming parity of pay scale
with Head Clerks. The mode of appointment and the minimum
12
educational and other qualifications and experience required for
Head Clerk are as under:-
Sr.
No.
12
Name
of Post
Method of
appointment
Head
Clerk
promotion
By
from
Circle
Assistant/ARAs.,
who opt
for
promotion
as
Head Clerk
Minimum
educational
and
other qualifications
After having qualified
Departmental A/Cs,
Examination
for
Ministerial
Establishment, If not
already done or
specially expected
Minimum
Experience
Remarks
-
Three year’s
service as
Circle
Assistant/
Asst.
Revenue
Accountant
18.
Internal Auditors have been promoted from the Ministerial
Cadre i.e. from the post of Circle Assistants/ARAs, who had opted
for the post of Internal Auditor were to be allowed the scales in the
Ministerial Cadre considering the post of UDC as induction post.
The posts of Internal Auditors are filled by 55% from direct
recruitment and 45% by promotion who have opted for promotion to
come to the Revenue Cadre. The mode of appointment and the
minimum educational and other qualifications and experience
required for the post of Internal Auditor are as under:-
Sr.
No.
6.
Name
of Post
Method
Appointment
of
Internal
Auditor
i) By direct
appointment
(55%
vacancies)
of
ii) By promotion
from amongst
ARAs/Circle
Assistants who
opt
for
Minimum Educational
and
other
qualification
B.A. IInd class with
Honours in Economics
or
Statistics
Commerce
OR
B.Com IInd Class
OR
Intermediate Cost and
Minimum
Experience
Remarks
-
Three year’s
service as
Circle
Assistant/AR
A/UDC put
together out
of which as
13
promotion as
Internal Auditor
(45%
of
vacancies)
minimum of
one
year
service shall
be as Circle
Assistant/
ARA.
Works Accountant or
Intermediate
Chartered Accountant.
After having qualified
Departmental
Accounts Examination
for
Ministerial
Establishment, if not
already done or
specially exempted.
19. The pay scale prior to 01.08.1963 of Head Clerks was higher
than the pay scale of Internal Auditors i.e. pay scale of Head Clerks
was Rs.150-300 and pay scale of Internal Auditors was Rs.130-240.
The pay scale of Internal Auditors was Rs.130-240 and it was
subsequently revised to Rs.150-300 with effect from 01.08.1963 on
par with the Head Clerks. The pay scales of Head Clerks and
Internal Auditors remained intact upto the year-1986 revision. But
the pay scale of Head Clerks was revised from Rs.1640-2925 to
Rs.2000-3500 on the recommendation of the Pay Anomaly
Committee formed by the Board to review the anomalies in the pay
scales of 1986 revision linking the scale of Head Clerks with the
Superintendent Grade-II under the State Government. As discussed
infra, the pay scale of Internal Auditors was revised from Rs.1640-
2925 to Rs.1800-3200 and after nine years of service to Rs.1880-
3300 i.e. scale of Revenue Accountant and after sixteen years of
service Rs.2000-3500 as per Secretary (Finance) Office Order
14
No.244 dated 15.02.1991 considering the post of Internal Auditor as
induction post in the basic pay scale of Rs.1800-3200 for direct
recruits.
20. Burden of proof on the person claiming parity of pay scale:-
Ordinarily, the scale of pay is fixed keeping in view the several
factors i.e. (i) method of recruitment; (ii) level at which recruitment is
made; (iii) the hierarchy of service in a given cadre; (iv) minimum
educational/technical qualifications required; (v) avenues of
promotion; (vi) the nature of duties and responsibilities; and (vii)
employer’s capacity to pay, etc.
21.
It is well settled that for considering the equation of posts and
the issue of equivalence of posts, the following factors had been held
to be determinative:-
(i) The nature and duties of a post;
(ii) The responsibilities and powers exercised by the officer
holding a post, the extent of territorial or other charge held
or responsibilities discharged;
(iii) The minimum qualifications, if any, prescribed for
recruitment to the post; and
(iv) The salary of the post (vide <cite>Union of India and Another v.
P.K. Roy and Others AIR 1968 SC 850</cite>).
22. After referring to <cite>P.K. Roy’s case</cite>, this Court, in SAIL, held as
under:-
“25. In <cite>State of Maharashtra and Another v. Chandrakant Anant
Kulkarni and Others (1981) 4 SCC 130</cite> and <cite>Vice-Chancellor, L.N.
Mithila University v. Dayanand Jha (1986) 3 SCC 7</cite>, a similar view
15
has been reiterated observing that equal status and nature and
responsibilities of the duties attached to the two posts have to be
taken into consideration for equivalence of the post. Similar view
has been reiterated in <cite>E.P. Royappa v. State of T.N. and Another
(1974) 4 SCC 3</cite> and <cite>Sub-Inspector Rooplal and Another v. Lt.
Governor Through Chief Secretary, Delhi and Others (2000) 1 SCC
644</cite>, wherein this Court following the earlier judgment in <cite>P.K. Roy
AIR 1968 SC 850</cite> held that the salary of the post alone may not be
a determining factor, the other three criterion should also be
fulfilled.”
23. The burden of proof in establishing parity in pay scales and the
nature of duties and responsibilities is on the person claiming such
right. The person claiming parity must produce material before the
court to prove that the nature of duties and functions are similar and
that they are entitled to parity of pay scales. After referring to number
of judgments and observing that it is the duty of an employee seeking
parity of pay to prove and establish that he had been discriminated
against, this Court, in SAIL, held as under:-
“22. It is the duty of an employee seeking parity of pay under Article
39(d) of the Constitution of India to prove and establish that he had
been discriminated against, as the question of parity has to be
decided on consideration of various facts and statutory rules, etc.
The doctrine of “equal pay for equal work” as enshrined under
Article 39(d) of the Constitution read with Article 14 thereof, cannot
be applied in a vacuum. The constitutional scheme postulates
equal pay for equal work for those who are equally placed in all
respects. The court must consider the factors like the source and
mode of recruitment/appointment, the qualifications, the nature of
work, the value thereof, responsibilities, reliability, experience,
confidentiality, functional need, etc. In other words, the equality
clause can be invoked in the matter of pay scales only when there
is wholesome/wholesale identity between the holders of two posts.
The burden of establishing right and parity in employment is only on
the person claiming such right. (<cite>Vide U.P. State Sugar Corpn. Ltd.
and Another v. Sant Raj Singh and Others (2006) 9 SCC 82</cite>, <cite>Union
of India and Another v. Mahajabeen Akhtar (2008) 1 SCC 368</cite>,
<cite>Union of India v. Dineshan K.K (2008) 1 SCC 586</cite>, <cite>Union of India
16
and Others v. Hiranmoy Sen and Others (2008) 1 SCC 630</cite>, <cite>Official
Liquidator v. Dayanand and Others (2008) 10 SCC 1</cite>, <cite>U.P. SEB and
Another v. Aziz Ahmad (2009) 2 SCC 606</cite> and <cite>State of M.P. and
Others v. Ramesh Chandra Bajpai (2009) 13 SCC 635</cite>)”.
24. Nature of duties and responsibilities of Head Clerks are
different from the Internal Auditors:- The duties and nature of
work of Head Clerks and Internal Auditors are entirely different.
Head Clerk works under XEN, Drawing and Disbursement Officer
and there is only one Head Clerk in the Division Office. Head Clerk
is the Head of the establishment in the Divisional Office and total
work of the establishment is under the control of the Head Clerk.
The Head Clerk disburses the salaries and other payments of the
Sub-divisions and Division Offices and also maintains the leave and
other miscellaneous works for the Sub-divisions and the Division
Offices and discharges administrative functions and thus, has more
responsibilities. Per contra, Internal Auditor works under the control
of Chief Auditor. Duty of the Internal Auditor is to audit the billing of
the Revenue Department of the Sub-division Office which includes
billing of domestic supply to large supply. Internal Auditors work in
the Sub-division and there can be one or more Internal Auditors as
per quantity of work.
25.
It is thus well settled that it is the duty of an employee seeking
parity of scale of pay to prove that the educational qualifications
17
required for both the posts, mode of recruitment and the nature of
work performed by them are one and the same. There are neither
pleadings nor any material produced by the respondents to prove
that the nature of work performed by the Internal Auditors is similar
with that of the Head Clerks. In the writ petition, respondents have
claimed parity of pay scale only on the ground that they were
categorised in Group XII along with the Head Clerks. Merely on the
ground that the cadre of Internal Auditors are placed in Group XII
along with the Head Clerks, cannot be a ground for seeking parity of
pay scale.
26. Considering the differences in the nature of duties and
responsibilities performed by the Head Clerks and Internal Auditors,
Pay Anomaly Committee decided to allow the revised scale for
Internal Auditor at Rs.1800-3200 with benefit of promotional
increments and Rs.2000-3500 for Head Clerks. Merely because
Internal Auditors are categorised in Group XII along with Head
Clerks, the Internal Auditors cannot claim parity as the nature of
duties and responsibilities of Internal Auditors are different from
Head Clerks.
27. Report of the Pay Anomaly Committee:- The Pay Anomaly
Committee was constituted by the appellant-Board vide its Office
18
Order No.179/Fin./PRC-1988 dated 22.08.1989 to consider the pay
anomalies of various categories of employees in the revised scale
of pay w.e.f. 01.01.1986. Considering the post of Internal Auditors,
the mode of recruitment (55% from direct recruitment and 45% by
promotion from amongst ARAs/Circle Assistants), nature of work
and the promotional avenues available to the Internal Auditors, the
Pay Anomaly Committee took the view that Internal Auditors be
allowed revised scale of pay of Rs.1800-3200. The relevant portion
of the report of the Pay Anomaly Committee reads as under:-
“Revenue/Accounts Wing:
“Presently the posts of Internal Auditors are being filled up with
55% through direct recruitment and 45% by promotion from amongst
A.R.As/Circle Assistants. As per promotional channel available for
Revenue/Accounts Cadre in the PSEB, A.R.As/Circle Asstt are
promoted either as Internal Auditor, Head Clerk or Head Office Asst.
as per option available for them. Internal Auditors get promotion as
Revenue Accountant and then finally as Revenue Supdt. On
accounts side, A.R.As/Circle Asstt., after passing SAS Part-I
Examination, may at their option, get promotion as Divisional
Accountant. He can, however, opt immediately after passing the SAS
Part-I Examination to come over as Revenue Accountants (which
option shall be final). The Divisional Accountants get promotion as
SAS Accountant which post is to be handled by SAS Parts-I & II
passed personnels and involves higher duties and responsibilities.
Since the Punjab Govt. has allowed revised scale of Rs.1800-3200
for Circle Assistants and Rs.2000-3500 for S.A.S. Acctts. The
19
Committee felt it necessary to devise promotional scale of I.A.s R.As
and Revenue Suptt. between the revised scale allowed to Circle
Assistants (Rs.1800-3200) and SAS Accountants (Rs.2000-3500). It
has, therefore been decided by the Committee to allow the revised
scale as under:-
Internal Auditor Rs.1800-3200 with benefit of promotional
increment(s) being higher post than that of
Circle Asstt./Assistant Revenue Accountant as
Circle Asst./Assistant Revenue Accountants will
get promotion as Internal Auditor in the same
scale.
28. Considering the Pay Anomaly Committee Report 08/1990,
appellant-Board revised the existing scale of pay of Internal Auditors
from Rs.1640-2925 to Rs.1800-3200 with the benefit of promotional
increment to Circle Assistants/ARAs on their promotion to the post
of Internal Auditors. By the same order, the existing scale of pay of
the post of Head Clerks was revised from Rs.1640-2925 to
Rs.2000-3500.
29. Considering the grievances of its employees, second Pay
Anomaly Committee was constituted vide Office Order No.48/ENG-
30(25) by the appellant-Board. PSEB Employees Federation raised
the grievance about the disparity in the pay scale of Head Clerks
and Internal Auditors. Considering the grievances, Pay Anomaly
Committee took the view that having regard to the nature of duties
and responsibilities attached to the posts and skill involved in the
20
performance of the job, the nature of duties of Head Clerks and the
Internal Auditors and the promotional avenues available to them are
entirely different and that there is no parity of the categories of
Revenue Accountants/Divisional Accountants and Internal Auditors
with the Head Clerks and that they cannot claim parity. The relevant
portion of the report of Second Pay Anomaly Committee reads as
under:-
“4.1 The Committee has reviewed the position with regard to the
agenda put up to the Pay Anomaly Committee by the Secretary Pay
Revision Committee and nature of duties of each category of
employees, qualifications prescribed and time-bound scales allowed
to direct recruitees where the recruitment through direct recruitment
or
its
recommendations/observation as under:-
by qualifying D.A.E.
and make
etc.
in
improvement
the scale of
i) The Pay Anomaly Committee has already considered the
representations of the employees and did not recommend
any
Divisional
Accountant/Revenue Accountant and Internal Auditor,
that there is no parity of these categories with Head Clerk
as their nature of duties are different, promotional
channel is different and the induction posts has been
made for directly recruited 55% Internal Auditors and
Revenue Accountants who have been deployed as
Revenue Acctt; after they have passed SAS Part-I
Examination. The Head Clerk is a promotional
post/category and they are genially promoted after putting
a long service of about twenty-five years in the Ministerial
Cadre from the post of LDC/UDC, Circle Asstt;/A.R.A. etc.
whereas the Divisional Accountants are posted when they
qualify the D.A.E. of SAS Part-I. The Divisional
21
Accountants have also been allowed time-bound scales
which is not available to the post of Head Clerk.
ii) On the promotion from Circle Asstt;/ARA to the post of
H.O. Assistant & Internal Auditor in the same scale of
Rs.1800-3200, benefit of promotional increments is
available.
iii) ………
iv) In the Ministerial Cadre, the H.O. Cadre or amongst the
Circle Asstt;/ARA who opt for the post of H.O. Assistant.
The post of Head Clerk is filled up amongst the Circle
Asstt;/ARAs who opt for the post of Head Clerk. The post
of Internal Auditor is filled up 55% by direct recruitment
and 45% amongst Circle Asstt;/ARAs was opt for the post
of Internal Auditors.
v) The scale of H.O. Assistant and Head Clerks have been
revised on the pattern of Punjab Govt; and these
categories are traditionally linked with the State Govt;
whereas the categories of Internal Auditors, Revenue
Acctt; Divisional Accountants are exclusively PSEB
categories.
vi) Nature of duties of the Head Clerk and the Internal
Auditor/H.O. Assistant are not identical. So the Pay
Anomaly Committee separated the scales considering the
nature of duties and promotional channels etc;
5.1 The Committee is of the view that the option may be given to
the employees who have been promoted between 01.01.1986 to
03.10.1990 (the date of office order vide which scale of Head
Clerk revised) as H.O. Assistant & Internal Auditor for the post of
Head Clerk, provided some vacancies are available in the cadre
of Head Clerk. Till the vacancy is falling due, they will be H.O.
Assistant or Internal Auditor, as the case may be, but on the
appointment as Head Clerk they will be given the seniority as
would have been if he would have exercised their option as Head
Clerk in the first instance on promotion from Circle Asstt;/ARA.
The financial implication would be nominal.
22
5.2
The Committee recommends that the scales already
allowed by the Board on the recommendation of Pay Revision
Committee and further improved on the recommendation of Pay
Anomaly Committee may not be further improved otherwise this
would create number of complications, demand from other
categories for further revision of their pay scales also. The cases
filed by the Divisional Accountant & Internal Auditors in the Punjab
& Haryana High Court be defended by the Board on the basis of
record and regulations of the Board….. [Underlining added].”
30.
Internal Auditors cannot claim parity:- Grievance of the
respondents is that there was a parity of pay scale of the posts of
Internal Auditors and Head Clerks for about two decades and while
so, the order dated 03.10.1990 revising the pay scale of Head
Clerks from Rs.1640-2925 to Rs.2000-3500 has disturbed the long-
standing parity of pay scales of the posts of Head Clerks and the
Internal Auditors. It is their contention that where the employer has
been maintaining parity in the pay scales of two posts over a period
of time then, if the pay scale of one post is revised, the said parity of
pay scale is to be maintained and disturbing such parity would be
arbitrary and violative of the Article 14 and Article 16 of the
Constitution of India.
31. Though the above arguments of the respondents appear to be
attractive, when considered in the light of the well settled principles,
we find no merit in the contention. Equation of posts and revision of
23
pay scale is within the domain of the Government. The matter
should be left to the discretion and expertise of the Pay Committee
and the Government to take the decision on the scale of
pay/revision of pay scale by considering the nature of duties and
responsibilities. As pointed out earlier, the Pay Anomaly Committee
has given elaborate reasons for revising the pay scales of the Head
Clerks at Rs.2000-3500 and Internal Auditors at Rs.1800-3200. The
conclusion arrived at by the experts/Pay Anomaly Committee are
not susceptible to judicial review and the courts are not to interfere
with the decision of the Government which is based on the opinion
of the experts.
32. Conscious exercise of option to go as Internal Auditors:-
On behalf of the appellant-Board, the learned Senior counsel
has drawn our attention to the various promotional avenues
available to the Internal Auditors and the sharp rise in the scale of
pay in such promotional position. The Circle Assistants had been
asked to exercise their option to go in the channel of promotion of
Head Clerks or in the channel of Internal Auditors. Those who have
chosen the channel of Internal Auditors post on 03.10.1990 have
consciously chosen to exercise the option of Internal Auditors being
mindful of the fact that the pay scale of the Head Clerks is higher
24
than that of Internal Auditors; yet they have chosen to exercise the
option of Internal Auditors. Those who have exercised their option
for the post of Internal Auditors post on 03.10.1990, in our
considered view, cannot make a grievance about their revised scale
of pay at Rs.1800-3200 which is not on par with the Head Clerks.
33.
Likewise, the Internal Auditors who have been directly
recruited as Internal Auditors, have consciously applied for the post
of Internal Auditors in the scale of pay of Rs.1800-3200, cannot
raise a plea claiming parity of pay scale as that of the Head Clerks,
since they have been directly recruited as per advertisement against
the post of Internal Auditors.
34. The grievance of the respondents is that since the order dated
03.10.1990 has been given retrospective effect w.e.f. 01.01.1986,
those of them who have exercised their option as Internal Auditors
between 01.01.1986 to 03.10.1990 are deprived of the parity of pay
scale. It was further submitted that had such a disparity of pay scale
between the Head Clerks and the Internal Auditors was in force from
the year 1986 onwards, the Circle Assistants/ARAs would not have
exercised their option for promotion as Internal Auditors and they
might have chosen to exercise their option for promotion as Head
Clerks. This contention though appears to be attractive, by
25
consideration of the same, it lacks merit for more than one reason.
As rightly submitted by the learned Senior counsel for the appellant-
Board, exercise of option for promotion as Internal Auditor was a
“conscious option”. Further, it was always open to the appellant-
Board to revise the scale of pay in terms of Regulation 3(g) of the
Punjab State Electricity Board (Revised Pay) Regulations, 1988.
35. That apart, while recommending the different pay scales for
Head Clerks and Internal Auditors, the Pay Anomaly Committee was
conscious about those Circle Assistants/ARAs who have already
exercised their option for promotion as Head Clerks between
01.01.1986 to 03.10.1990. The Pay Anomaly Committee in para
(5.1) of its report expressed its view that the option may be given to
the employees who have been promoted between 01.01.1986 to
03.10.1990 as Head Clerks and Internal Auditors for the post of
Head Clerk, provided some vacancies are available in the cadre of
Head Clerk. The Pay Anomaly Committee has also expressed its
view that once they are appointed as Head Clerks, they will be
given the seniority as would have been if they would have exercised
their option as Head Clerks in the first instance on promotion from
Circle Assistants/ARAs. The grievance of the respondents in this
26
regard has been taken note by the Pay Anomaly Committee and as
per its view in para (5.1), the same is redressed.
36. Promotional avenues available to the Internal Auditors:-
Promotional channels which are available against the post of Head
Clerk, Internal Auditor and Senior Assistant are as under:-
Head Clerk
Circle
Superintendent
Internal Auditor
1) Revenue Accountant
Senior Assistant
1)Superintendent Grade II
2)Superintendent Grade I
3) Under Secretary
4) Dy. Secretary
2)Revenue Superintendent
3) Accounts Officer*
4) Deputy Chief Accounts
Officer*
5) Chief Accounts Officer*
*Subject to passing of SAS
Part
II
Examination
and Part
I
By perusal of the above, it is seen that the promotional avenues
which are available to all the Internal Auditors are far more in
comparison to the promotional avenues which are available to the
Head Clerks. Therefore, for this reason also, option of Internal
Auditors which has been exercised by the Internal Auditors was a
“conscious option” exercised by them because of more
promotional avenues may available in the channel of Internal
Auditors.
37. That apart, the pay scales which are available in the
promotional channel for Internal Auditors are also sharply higher
than the Head Clerks. A Head Clerk on promotion to a Circle
Superintendent receives one additional increment above the scale
27
of Rs.10900- 34800 plus grade pay of Rs.5450 (i.e. available to a
Head Clerk). However, in the Internal Auditors channel, further
promotion as Accounts Officer will be in the pay scale of Rs.16650-
39100 plus grade pay of Rs.5800. Thereafter, on promotion as
Deputy Chief Accounts Officer, he receives one further increment
and the grade pay increases to Rs.8500. Thereafter, on further
promotion as Chief Accounts Officer, he goes into the scale of
Rs.41300-67000 plus grade pay of Rs.9600. Two senior-most Chief
Accounts Officers are put in the scale equivalent to Chief Engineer
i.e. Rs.41300-67000 plus grade pay of Rs.10500. From submission
of the appellant-Board, we find that the increase in the pay scale is
much higher on promotion against the post in the Internal Auditor
promotional channel. Thus, for the said reason also, the choice of
Internal Auditors made by all the persons (including those who have
exercised the option between 01.01.1986 to 03.10.1990) is a
reasoned choice keeping in view the greater promotional avenues
and the higher pay scales which are available.
38.
It is also relevant to note that insofar as the direct recruits are
concerned, the direct recruited Internal Auditors are entitled to a
time-bound promotional scale on completion of nine and sixteen
years of service. Time-bound promotional scale of directly recruited
28
Internal Auditors after regular service of nine years is Rs.1900-3300
(unrevised) and after completion of sixteen years of service is
Rs.2000-3500 (unrevised). However, no such time-bound
promotional scale is available to Head Clerks. Head Clerks are not
directly recruited and their appointment as Head Clerk is by
promotion only.
39. The only ground urged by respondents-Internal Auditors is
that parity of pay scale between the Head Clerks and the Internal
Auditors was maintained by the appellant-Board for more than two
decades and while so, disturbing the parity is arbitrary and illegal.
The Court has to keep in mind that a mere difference in service
conditions, does not amount to discrimination. Unless there is
complete identity between the two posts, they should not be treated
as equivalent to claim parity of pay scale. No doubt, Internal
Auditors were earlier placed in the same group namely Group XII;
but educational qualifications for the post of Head Clerk and mode
of recruitment are different. As submitted by the learned Senior
Counsel for the appellant-Board, that in the year 1980, there were
only four posts in Group XII but subsequently some posts were
added to Group XII and the total fourteen posts which were added
to Group XII are:- Punjabi Teacher, Drawing Teacher, Hindi Teacher,
D.P.Ed. Teacher, Master/Mistress, Science Teacher, Security
29
Inspector, Modeller Divisional Head Draftsman, Prosecuting
Inspector (now Law Officer), Law Officer Grade II, Medical
Assistant, Librarian and Fire Officer, etc. For all these posts, source
and mode of recruitment, qualifications and nature of work are
entirely different. If the contention of the Internal Auditors for
claiming parity of pay scale with that of Head Clerks merely on the
ground that the post of Internal Auditor was placed in Group XII,
then if such parity of pay scale may have to be extended to all other
posts, it would have huge financial implication on the finance of the
Board which is a service-oriented institution owing to the
consumers. As held in <cite>Union of India and Another v. Manik Lal
Banerjee (2006) 9 SCC 643</cite>, “it is now a well settled principle of law
that financial implication is a relevant factor for accepting the
revision of pay.”
40. The learned Single Judge proceeded under the erroneous
footing as if the case of Internal Auditors is covered by the case put
forth by Sub Fire Officers. The learned Single Judge did not keep in
view the counter statement filed by the appellant-Board before the
High Court pointing out various distinguishing features of Internal
Auditors and Head Clerks on account of which no parity could be
granted to the Internal Auditors with the Head Clerks. The High
30
Court also did not keep in view that the Pay Anomaly Committee did
consider the demand of Internal Auditors and had not accepted the
demand in view of different nature of duties and various other
relevant factors. The learned Single Judge erred in recording that
the respondents were in the same category of “Sub Fire Officers”
within the same group which have been decided by the earlier
judgment dated 21.01.2010.
41. As discussed earlier, merely because various different posts
have been categorized under Group XII, they cannot claim parity of
pay scale as that of the Head Clerk. All the more so, when the
Internal Auditors are appointed 55% by direct recruitment and 45%
by promotion from Circle Assistant/Assistant Revenue Accountant.
The High Court did not keep in view that the duties, nature of work
and promotion channel of Head Clerks and Internal Auditors are
entirely different and that option to seek promotion apparently as
Internal Auditors was the “conscious exercise of option”, the
impugned judgment cannot be sustained and is liable to be set
aside.
42.
In the result, the impugned judgment dated 23.02.2012
passed by the High Court of Punjab and Haryana at Chandigarh in
LPA No.264 of 2012 and Order dated 04.05.2012 in the review
31
petition are set aside and these appeals are allowed. No costs.
|
1.
Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 02.03.2021 passed by the High
Court of Telangana at Hyderabad in Criminal Petition No.
1148/2021, by which, the High Court has allowed the said
bail application and has granted the anticipatory bail in
favour of respondent No. 1 herein and has directed to
release him on bail in the event of his arrest in connection
with F. No. ECIR/HYZO/36/2020 dated 15.12.2020 on the
file of the Assistant Director, Enforcement Directorate
(hereinafter referred to as the ED), Government of India,
1
Hyderabad, which was registered for the offence of money
laundering under Section 3 of the Prevention of Money
Laundering Act, 2002 (hereinafter referred to as the Act,
2002) and punishable under Section 4 of the said Act, the
Directorate of Enforcement has preferred the present
appeal.
2.
A FIR was registered by Economic Offences Wing (EOW),
Bhopal vide FIR No. 12/2019 dated 10.04.2019 wherein 20
persons/companies were named as suspected in the said
scam. M/s Max Mantena Micro JV, Hyderabad was one
among them.
2.1
As per the FIR, the Government of Madhya Pradesh e
Procurement Portal was being run by MPSEDC. M/s
Antares Systems Limited, Bangalore and M/s Tata
Consultancy Services (TCS) were given the contract for the
period of 5 years for the maintenance & operation of the
said portal. Some of the officials of MPSEDC in collusion
with the companies entrusted with maintenance and
testing of the portals namely M/s Osmo IT Solutions and
M/s Antares Systems Ltd, illegally accessed the eTender
2
portal and rigged the bidding process to suit a few private
bidders for huge amounts of bribe considerations.
2.2
As per the investigating agency, the preliminary
investigation by the Police established that various e
tenders were illegally accessed and bids of a few
companies were manipulated to illegally make the bids of
those concerns as the lowest one.
2.3
Apart from tenders mentioned in the first preliminary
charge sheet filed by the EOW Bhopal namely No. 91, 93,
94 (Water Resource Dept); 2 tenders vide Nos. 49985 &
49982 of PWD; Tender no 49813, Tender No. 786 of
MPRDC; and Tenders vide Nos. 10030 & 10044, it was
suspected that many other tenders have also been
tampered using the same modus operandi. M/s Mantena
Group of Companies, Hyderabad, was suspected to be a
major beneficiary of this etender scam. As per the EOW
charge sheet, a joint venture of the Mantena Group known
as M/s Max Mantena Micro JV is the direct beneficiary of a
tampered etender No. 10030 worth Rs. 1020 Crore.
2.4
According to the investigating agency, the investigation
into the said FIR for the offences under Sections 120B,
3
420, 471 IPC and Section 7 r/w Section 13(2) of Prevention
of Corruption (PC) Act is going on and the said offences are
scheduled offences under the Act, 2002. The ED has
initiated money laundering investigation in File No.
ECIR/HYZO/36/2020.
According to the ED, in order to gather evidence, a search
2.5
operation was conducted under the provisions of Section
17(1) of PMLA, 2002. Accordingly, 18 premises were
searched including the residences of the promoters and
offices of M/s Mantena Constructions Ltd, M/s Anteras
Pvt Ltd, M/s Osmo IT Solutions Pvt Ltd, M/s Arni Infra,
etc. a good amount of incriminating documents and digital
devices have been seized and are being examined for
evidence. It is clear from the ED investigation done so far
that a systematic conspiracy has been planned and
executed by a number of infrastructure companies based
at Hyderabad in collusion with a few Government officials
and IT management companies to illegally win etenders.
Further large amounts of bribes running into crore(s) of
rupees have exchanged hands using hawala channels. The
public funds meant for development activities have been
4
diverted and siphoned off for personal illegal enrichment
and for making illegal bribe payments. The appellant
department has recovered fund trail evidence and
generation of black money through bogus and overbilling
by the infra companies.
2.6
That respondent No. 1 herein who at the relevant time was
the Additional Chief Secretary in the Water Resources
Department in the State of Madhya Pradesh, was
summoned by the ED to explain the sudden spurt in the
allocation of tenders to M/s Mantena Construction during
his stint in the State of MP.
2.7
That apprehending his arrest in connection with ED case
for the scheduled offence under the Act, 2002, respondent
No. 1 herein approached the High Court by way of present
anticipatory bail application under Section 438 Cr.PC.
Without considering the rigour/bar under Section 45 of
the Act, 2002 and observing that as per the decision of this
Court in the case of <cite>Nikesh Tarachand Shah Vs. Unoin of
India and Anr.; (2018) 11 SCC 1</cite>, the provisions of
Section 45 of the Act, 2002 do not apply to Section 438
Cr.PC proceedings, the High Court has allowed the
5
anticipatory bail application and has directed that in case
of his arrest in connection with ED case he be released on
bail.
2.8
Feeling aggrieved and dissatisfied with the impugned
judgment and order passed by the High Court granting
anticipatory bail to respondent No. 1 in ED case, the
Directorate of Enforcement (ED) has preferred the present
appeal.
3.
Shri K. M. Nataraj, learned ASG, appearing on behalf of the
ED – appellant has vehemently submitted that in the facts
and circumstances of the case, the High Court has
committed a very serious error in allowing the anticipatory
bail application and granting anticipatory bail to
respondent No. 1 in connection with ED case under the
Act, 2002.
3.1
It is submitted that as such the High Court has materially
erred in observing that the provisions of Section 45 of the
Act, 2002 shall not be applicable to Section 438 Cr.PC
proceedings. It is submitted that for that the High Court
has erred in relying upon the decision of this Court in the
case of Nikesh Tarachand Shah (supra). It is submitted
6
that subsequently in the case of <cite>The Asst. Director
Enforcement Directorate Vs. Dr. V.C. Mohan (2022 SCC
OnLine SC 452) (Criminal Appeal No. 21/2022)</cite>, this
Court has clarified that it is the wrong reading of the
decision in the case of <cite>Nikesh Tarachand Shah (supra)</cite>
that the provisions of Section 45 of the Act, 2002 shall not
be applicable to the anticipatory bail proceedings. It is
submitted that in the case of <cite>Dr. V.C. Mohan (supra)</cite> it is
specifically observed and held by this Court that Section
45 of the Act, 2002 shall be applicable with respect to the
offences under the Act, 2002 and the rigour of Section 45
of the Act, 2002 shall get triggered – although the
application is under Section 438 of Cr.PC. It is submitted
that therefore, the impugned judgment and order passed
by the High Court is just contrary to the decision of this
Court in the case of <cite>Dr. V.C. Mohan (supra)</cite>.
3.2
It is further submitted by Shri K.M. Nataraj, learned ASG
appearing on behalf of the ED that even otherwise while
granting the anticipatory bail the High Court has not
properly appreciated and/or considered the seriousness of
7
the offences which are scheduled offences under the Act,
2002. It is submitted that the High Court has considered
the anticipatory bail application, as if, the High Court was
dealing with the prayer for anticipatory bail in connection
with the ordinary offences under IPC.
3.3
It is further vehemently submitted by learned ASG that
during investigation, the ED investigation has established
that there is a nexus between Srinivas Raju Mantena and
respondent No. 1 herein and the same needs to be
investigated in detail.
3.4
It is submitted that the ED had gathered material which
indicates nexus between respondent No. 1 and Srinivas
Raju Mantena, who is found to have committed the
offences of money laundering. It is submitted that
respondent No. 1 was summoned by ED but instead of
appearing before the IO, he filed a criminal petition before
the High Court and obtained the interim relief. It is
submitted that he appeared before the ED and his
statement was recorded under Section 50 of the Act, 2002.
It is submitted that however on both the occasions he was
8
totally evasive and noncooperative and therefore, his
custodial interrogation is required.
3.5
It is further submitted by learned ASG that during the
investigation the ED has found that respondent No. 1 had
availed and enjoyed free trips in last one year alone on the
luxury plane of Mantena on multiple occasions. It is
submitted that during investigation it has been found that
respondent No. 1 had also availed other patronages from
Srinivas Raju Mantena like sponsoring foreign exchange
through Hawala Channels for his son.
3.6
It is submitted that while granting anticipatory bail to
respondent No. 1 the High Court has not considered the
nature of allegations and seriousness of offences alleged
against respondent No. 1 who at the relevant time was
working as an Additional Chief Secretary.
3.7 Making the above submissions and relying upon above
decision as well as the decision of this Court in the case of
<cite>P. Chidambaram Vs. Directorate of Enforcement;
(2019) 9 SCC 24</cite> as well as the decision in the case of <cite>Y.S.
Jagan Mohan Reddy Vs. CBI; (2013) 7 SCC 439</cite>, it is
9
prayed to allow the present appeal and quash and set
aside the impugned judgment and order passed by the
High Court.
4.
Present appeal is vehemently opposed by Shri Vijay
Agarwal, learned counsel appearing on behalf of
respondent No. 1 herein.
4.1
It is vehemently submitted by learned counsel appearing
on behalf of respondent No. 1 that in the facts and
circumstances of the case the High Court has not
committed any error in granting anticipatory bail to
respondent No. 1.
4.2
It is vehemently submitted that in the present case so far
as the main FIR is concerned, the other accused have been
acquitted/discharged. It is submitted that as held by this
Court in the catena of decision that if the person is finally
discharged/acquitted of the scheduled offence or the
criminal case against him is quashed by the Court of
competent jurisdiction, there can be no offence of money
laundering against him or any one claiming such property
being the property linked to stated scheduled offence
through him.
10
4.3
It is further submitted that in the present case even
respondent No. 1 was not named in the FIR for the
scheduled offence(s).
4.4
It is further submitted that the offence under the Act, 2002
is dependent on predicate offence which would be ordinary
law including the provisions of the IPC. It submitted that
therefore, as other accused persons have been
acquitted/discharged for the predicate offence/schedule
offence there is no question of any offence by respondent
No. 1 under the Act, 2002/money laundering.
4.5
It is further submitted by learned counsel appearing on
behalf of respondent No. 1 that while granting the
anticipatory bail the High Court has followed the decision
of this Court in the case of <cite>Nikesh Tarachand Shah
(supra)</cite>, the law which was prevalent at the relevant time.
4.6
It is submitted that the prospective overruling of the said
decision by this Court in the case of <cite>Dr. V.C. Mohan
(supra)</cite> therefore, cannot be pressed into service while
challenging the impugned judgment and order passed by
11
the High Court granting anticipatory bail relying upon the
decision/law prevalent at the relevant time.
4.7
It is further submitted by learned counsel appearing on
behalf of respondent No. 1 that in the present case cogent
reasons have been given by the High Court while granting
anticipatory bail to respondent No. 1 and considering the
fact that respondent No. 1 has cooperated in the
investigation and appeared twice earlier before the IO/ED,
the impugned judgment and order passed by the High
Court granting anticipatory bail may not be interfered with
by this Court.
We have heard learned counsel appearing on behalf of the
5.
respective parties at length. At the outset, it is required to
be noted that respondent No. 1 is apprehending his arrest
in connection with the complaint/case by the ED for the
offence of money laundering under Section 3 of the
Prevention of Money Laundering Act, 2002 and punishable
under Section 4 of the said Act. An enquiry/investigation is
going on against respondent No. 1 for the scheduled
offence in connection with FIR No. 12/2019. Once the
enquiry/investigation against respondent No. 1 is going on
12
for the offence under the Act, 2002, the rigour of Section
45 of the Act, 2002 would be attracted. Section 45 of the
Act, 2002 reads as under:
“45. Offences to be cognizable and nonbailable.—
(1) [Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), no person
accused of an offence [under this Act] shall be released
on bail or on his own bond unless—]
(i) the Public Prosecutor has been given an
opportunity to oppose the application for such
release; and
(ii) where the Public Prosecutor opposes the
application, the court is satisfied that there are
reasonable grounds for believing that he is not
guilty of such offence and that he is not likely to
commit any offence while on bail:
Provided that a person, who, is under the age of
sixteen years, or is a woman or is sick or infirm [or is
accused either on his own or along with other co
accused of moneylaundering a sum of less than one
crore rupees], may be released on bail, if the Special
Court so directs:
Provided further that the Special Court shall not
take cognizance of any offence punishable under
Section 4 except upon a complaint in writing made by
—
(i) the Director; or
(ii) any officer of the Central Government or a
State Government authorised in writing in this
behalf by the Central Government by a general or
special order made in this behalf by that
Government.
[(1A) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973 (2 of 1974), or any
13
other provision of this Act, no police officer shall
investigate into an offence under this Act unless
specifically authorised, by the Central Government by
a general or special order, and, subject to such
conditions as may be prescribed.]
(2) The limitation on granting of bail specified in [*
* *] subsection (1) is in addition to the limitations
under the Code of Criminal Procedure, 1973 (2 of
1974) or any other law for the time being in force on
granting of bail.”
5.1
By the impugned judgment and order, while granting
anticipatory bail the High Court has observed that the
provisions of Section 45 of the Act, 2002 shall not be
applicable with respect to the anticipatory bail
applications/proceedings under Section 438 Cr.PC. For
which the High Court has relied upon the decision of this
Court in the case of <cite>Nikesh Tarachand Shah (supra)</cite>. In
the case of <cite>Dr. V.C. Mohan (supra)</cite>, this Court has
specifically observed and held that it is the wrong
understanding that in the case of <cite>Nikesh Tarachand Shah
(supra)</cite> this Court has held that the rigour of Section 45 of
the Act, 2002 shall not be applicable to the application
under Section 438 Cr. PC. In the case of <cite>Dr. V.C. Mohan
(supra)</cite> in which the decision of this Court in the case of
14
<cite>Nikesh Tarachand Shah (supra)</cite> was pressed into service,
it is specifically observed by this Court that it is one thing
to say that Section 45 of the Act, 2002 to offences under
the ordinary law would not get attracted but once the
prayer for anticipatory bail is made in connection with
offence under the Act, 2002, the underlying principles and
rigours of Section 45 of the Act, must get triggered –
although the application is under Section 438 Cr.PC.
Therefore, the observations made by the High Court that
the provisions of Section 45 of the Act, 2002 shall not be
applicable in connection with an application under Section
438 Cr.PC is just contrary to the decision in the case of <cite>Dr.
V.C. Mohan (supra)</cite> and the same is on misunderstanding
of the observations made in the case of <cite>Nikesh Tarachand
Shah (supra)</cite>. Once the rigour under Section 45 of the Act,
2002 shall be applicable the impugned judgment and
order passed by the High Court granting anticipatory bail
to respondent No. 1 is unsustainable.
6.
Even otherwise on merits also, the impugned judgment
and order passed by the High Court granting anticipatory
15
bail to respondent No. 1 is erroneous and unsustainable.
While granting the anticipatory bail to respondent No. 1 the
High Court has not at all considered the nature of
allegations and seriousness of the offences alleged of
money laundering and the offence(s) under the Act, 2002.
Looking to the nature of allegations, it can be said that the
same can be said to be very serious allegations of money
laundering which are required to be investigated
thoroughly. As per the investigating agency, they have
collected some material connecting respondent No. 1
having taken undue advantage from Srinivas Raju
Mantena. From the impugned judgment and order passed
by the High Court, it appears that the High Court has
considered the matter, as if, it was dealing with the prayer
for anticipatory bail in connection with the ordinary offence
under IPC.
6.1
Now so far as the submissions on behalf of respondent No.
1 that respondent No. 1 was not named in the FIR with
respect to the scheduled offence and that the other
accused are discharged/acquitted is concerned, merely
because other accused are acquitted, it cannot be a
16
ground not to continue the investigation against
respondent No. 1. An enquiry/investigation is going on
against respondent No. 1 with respect to the scheduled
offences. Therefore, the enquiry/investigation itself is
sufficient at this stage.
6.2 While granting the anticipatory bail, what is weighed with
the High Court and what is observed by the High Court is
as under:
“A careful reading of the aforesaid legal position and in
the light of the circumstances of the case on hand, which
clearly indicates that the 1st respondent has a doubt
regarding the involvement of the petitioner in commission
of the crime and he is being summoned for disclosure and
in case of his nondisclosure of any material, on the
pretext of noncooperation, the 1st respondent may
proceed to arrest him. The petitioner is a retired employee
aged about 60 years and is a permanent resident of
Hyderabad, Further, major part of the investigation has
been completed with respect to the incriminating
documents and digital devices, which have already been
seized. Hence, there may not be a chance of tampering
with the investigation at this stage, because as rightly
pointed out by the learned Senior Counsel for the
petitioner that a criminal case has already been filed
against the other accused and the same is pending before
the Special Court at Bhopal.”
6.3
From the aforesaid, it can be seen that the High Court has
not at all considered the nature of allegations and the
seriousness of the offences alleged against respondent No.
1. As per the catena of decision of this Court, more
particularly, observed in the case of <cite>P. Chidambaram
17
(supra)</cite> in case of economic offences, which are having an
impact on the society, the Court must be very slow in
exercising the discretion under Section 438 of Cr.PC.
7.
Considering the overall facts and circumstances of the case
and the reasoning given by the High Court and as observed
hereinabove, the rigour of Section 45 of the Act, 2002 shall
be applicable even with respect to the application under
Section 438 Cr.PC and therefore, the impugned judgment
and order passed by the High Court granting anticipatory
bail to respondent No. 1 herein in connection with F. No.
ECIR/HYZO/36/2020 dated 15.12.2020 is unsustainable.
Consequently, the impugned judgment and order passed
by the High Court granting anticipatory bail to respondent
No. 1 is hereby quashed and set aside. Respondent No. 1
be dealt with in accordance with law. However, it is
observed and made clear that after respondent No. 1 is
arrested, if he files any regular bail application, the same
be considered in accordance with law and on its own
merits and considering the material collected during
18
enquiry/investigation of the case. Present appeal is
accordingly allowed. No costs.
|
1. Delay condoned in Special leave Petition (Civil) @ D.No.10656
of 2023.
2. While the first special leave petition arises out of an order
passed by the Division Bench of the Madras High Court in an intra-
court appeal challenging an order passed by the learned Judge in a
contempt petition, the other special leave petitions arise out of the
order passed substantially in a writ petition and in a review
petition.
2
3. We have heard Shri Mukul Rohatgi, learned senior counsel
appearing for the petitioners in all the special leave petitions and
Shri Mahesh Jethmalani, Shri Guru Krishna Kumar, Dr. Menaka
Guruswamy, learned senior counsel appearing for the respondent.
4.
The brief facts sufficient for the disposal of all these special
leave petitions are as follows:-
(i)
A batch of 49 writ petitions were filed by the office
bearers of the Rashtriya Swayam Sevak Sangh (RSS), on
the file of the High Court of Judicature at Madras seeking
a direction to the State, the Director General of Police, the
Superintendents of Police of various districts and the
Inspectors of Police of certain police stations to permit the
members of the Organisation to conduct a procession
(Route March) through identified places. The contention
of the writ petitioners was that they wanted to hold the
procession on 02.10.2022, but that their applications for
permission to hold the Route March were not considered
by the appropriate authorities;
(ii)
The batch of writ petitions were disposed of by a learned
Judge of the Madras High Court, by an order dated
22.09.2022, with certain directions;
(iii) The State filed a batch of applications for review. At about
the same time, one of the representations seeking
permission to hold the march in Chennai was rejected by
3
the local Inspector of Police, by an order dated
27.09.2022;
(iv) The order of rejection led to a legal notice dated
28.09.2022 followed by a Contempt Petition, against,
(i) The Secretary to Government, Home Department; (ii)
The Director General of Police; (iii) The Superintendent of
Police; and (iv) The Inspector of Police;
(v) When the contempt petition came up for hearing on
30.09.2022, the date on which the organisers wanted to
conduct the Route March was only 48 hours away.
Therefore, the learned Judge before whom the contempt
petition came up, passed an order on 30.09.2022 to the
following effect:-
“5. Hence, the respondents justified the
reasons for rejecting the request made by the
petitioners. Therefore, it is not possible for the
respondents to grant permission for the
procession to be held on 02.10.2022. However,
this Court suggested for any other date except
Gandhi Jayanthi i.e. 02.10.2022 to conduct
procession and to conduct public meeting.
16.10.2022,
6. The learned Senior Counsels appearing for
the petitioners suggested four dates i.e.
09.10.2022,
06.11.2022 and
13.11.2022 and the learned Senior Counsel
appearing for the first respondent submitted that
except Gandhi Jayanthi on 02.10.2022, they will
consider the same representations of the
respective petitioners seeking permission to
conduct procession and to conduct public
meetings on any other date.
7. Considering the above submissions made
on either side, this Court fix the date to conduct
procession and to conduct public meetings on
4
06.11.2022. Till then, the petitioners are directed
not to precipitate the issue. However, it is for the
State to maintain law and order problem. It is
made clear that the respondents shall permit the
petitioners on their earlier representations to
conduct procession and to conduct public
meetings on 06.11.2022.
8. Registry is directed to list the matter along
with all the connected contempt petitions
numbered subsequently on 31.10.2022”
(vi) Pursuant to the aforesaid order dated 30.09.2022, the
Director General of Police issued a memorandum dated
29.10.2022 instructing Commissioners/Superintendents
of Police of the Districts to pass necessary orders on the
representations of the organisers;
(vii)
In the light of the memorandum issued by The Director
General of Police on 29.10.2022, the learned Judge before
whom the contempt petitions came up on 31.10.2022,
passed an order to the following effect:-
“The learned Senior Counsel appearing for the
petitioner produced the order passed by the second
respondent viz., the Director General of Police, dated
29.10.2022, thereby directing all the Commissioner of
Police/Superintendent of Police, to pass order on the
applications made by the respective petitioners in
accordance with the order passed by this Court dated
22.09.2022 in W.P.No.24540 of 2022 etc., batch.
Accordingly all the applications submitted by the
petitioners are under consideration of the respective
Commissioner of Police/Superintendent of Police and
they are about to pass orders within a day or two.
2. Post the matter on 02.11.2022 under the
caption “for reporting compliance” at 2.15 p.m.
(viii) On 02.11.2022, the Staff Officer in the Office of the
Director General of Police filed a status report claiming
5
that in view of certain developments that took place after
a cylinder blast in Coimbatore City on 23.10.2022, a
fresh assessment of the local situation had to be made by
the Commissioners/Superintendents of Police. In short,
the status report indicated that, (i) it is not advisable to
permit any processions/public meetings in 24 locations;
(ii) that processions/public meetings can be permitted in
23 locations only in enclosed ground/premises; and
(iii) procession can be permitted in three locations;
(ix)
Incidentally, the contempt petitions as well as the
applications for review were listed before the learned
Judge on the very same date namely 02.11.2022. The
learned Judge passed two independent orders, one in the
batch of contempt petitions and another in the batch of
review applications;
(x)
The relevant portion of the order passed in the review
applications reads as follows:-
“3. Today when the matters are taken up for hearing,
the learned State Public Prosecutor appearing for the
petitioners submitted that out of 50 places, in three
places, the respective respondents were granted
permission to conduct procession and public meeting
on 06.11.2022. Insofar as 23 places are concerned,
respective respondents are permitted to conduct
procession/public meeting in an indoor place. Insofar
as 24 places are concerned, respective authorities
found that there will be a law and order issue and
rejected the requests in view of the intelligence report
received from the authorities concerned. He further
submitted that the respective respondents also
approached this Court by way of Contempt Petitions
and same are pending before this Court.
4.
In view of the various orders passed by the
authorities concerned, nothing survive in these Review
6
Applications. Accordingly, all the Review Applications
are closed. Consequently, the connected miscellaneous
petitions are also closed.
(xi) But in the batch of contempt petitions, the learned Judge
passed an order adjourning the contempt petitions to
04.11.2022, for passing appropriate orders after perusing
the Intelligence Report produced by the State in a sealed
cover;
(xii) On 04.11.2022 the learned Judge passed final orders in
the contempt petitions, virtually modifying the original
order passed on 22.09.2022. The operative portion of the
Order passed on 04.11.2022 passed in the batch of
contempt petitions reads as follows:
“9. Therefore, this Court is inclined to grant
permission to conduct procession and public meeting
on 06.11.2022 on the following conditions:-
i.
The procession and public meetings should be
conducted in a compounded premises such as
Ground or Stadium. It is made clear that while
proceeding to conduct procession and public
meeting, the participants shall go by walk or by their
respective vehicles without causing any hindrance to
the general public and traffic.
During the program, nobody shall either sing
ii.
songs or speak ill on any individuals, any caste,
religion, etc.,
iii.
Those who participate in the program shall not
for any reason talk or express anything in favour of
organizations banned by Government of India. They
should also not indulge in any act disturbing the
sovereignty and integrity of our country.
The program should be conducted without
iv.
causing any hindrance to public or traffic.
The participants shall not bring any stick, lathi
v.
or weapon that may cause injury to any one.
7
The organizer(s)
vi.
shall make adequate
arrangements for drinking water and proper First
Aid/Ambulance/Mobile Toilets/CCTV Cameras/Fire
Fighting equipments etc., in consultation with the
Police/Civic/Local Bodies as directed by the police.
keep sufficient
vii. The organizer(s)
volunteers to help the police for regulation of traffic
and the participants.
shall
viii. Only box type speakers should be used and
output of the speakers should not exceed 15
watts~ad within a radius of 30 meters only. Cone
Speakers should not be used at any cost.
ix.
In the procession, the processionists shall not
by any manner offend the sentiments of any
religious, linguistics, cultural and other groups.
x.
An undertaking to reimburse the cost for any
damage that may occur enroute to any
public/private property and an undertaking to bear
the compensation/replacement costs as well, if are to
be awarded to any other institution/person, who may
apply for the same.
xi.
If there is violation of any one of the conditions
imposed, the concerned police officer is at liberty to
take necessary action, as per law.”
(xiii) Aggrieved by the order so passed by the learned Judge on
04.11.2022 in the batch of contempt petitions, a batch of
intra-court appeals were filed by the organizers. These
intra-court appeals were allowed by a Division Bench of
the High Court by an order dated 10.02.2023. The
operative portion of the order of the Division Bench reads
as follows:-
“33.
In the result, the order dated 04.11.2022
passed in the contempt petitions, which is under
challange in the present LPAs, is set aside, and
the order dated 22.09.2022 passed in the writ
petitions stand restored and would be
enforceable. As the dates on which the appellants
8
wanted to conduct the route-march, have passed,
it is only appropriate that a direction be issued in
this regard. Accordingly, the appellants are
directed to approach the State authorities with
three different dates of their choice for the
purpose of holding the route-march/peaceful
procession and the State authorities are directed
to grant permission to the appellants on one of
the chosen dates out of the three. The
organization shall ensure that strict discipline is
followed at their end and that there is no
provocation or incitement on their part. The State
on the other hand has to take adequate safety
measures and make traffic arrangements to
ensure that the procession and the meeting shall
go on peacefully.”
(xiv) Challenging the order of the Division Bench passed in the
intra-court appeals arising out of the order passed in the
contempt petitions, the Secretary to Government, Home
Department, the Director General of Police, the
Commissioner of Police and the Inspector of Police first
came up with a special leave petition in Special Leave
Petition (C) No.4163 of 2023. When this special leave
petition came up for orders as to admission on
03.03.2023, it was submitted by Shri Mukul Rohatgi,
learned senior counsel and Shri V. Krishnamurthy,
learned AAG for the State of Tamil Nadu that the State
would come up with some suggestions as to how best to
resolve the issue. Therefore, Special Leave Petition (C)
No.4163 of 2023 was adjourned to 17.03.2023.
(xv) Subsequently, the State filed the other special leave
petitions challenging the earliest order of the learned
Judge of the High Court dated 22.09.2022 passed in the
batch of writ petitions as well as the order dated
9
02.11.2022 passed by the learned Judge in the batch of
review applications.
(xvi) Thus we have on hand, three special leave petitions, the
first one arising out of the last order, namely, that of the
Division Bench of the High Court dated 10.02.2023 and
the other two special leave petitions arising out of the
earlier orders of the learned Single Judge dated
22.09.2022 and 02.11.2022.
5.
Insofar as the first special leave petition is concerned, it arises
out of the order of the Division Bench passed in a batch of intra-
court appeals challenging the order passed by the learned Judge in
a batch of contempt petitions. This Court need not even go into
several aspects argued across the Bar, for the simple reason that
the learned Judge travelled beyond the scope of a contempt petition
and this is why the said order warranted interference by the
Division Bench. After having disposed of the batch of main writ
petitions by a final order dated 22.09.2022 in a particular manner
and after having dismissed the batch of review applications on
02.11.2022, the learned Judge could not have modified his original
order dated 22.09.2022 in a batch of contempt petitions on
04.11.2022. Therefore, the Division Bench of the High Court was
justified in interfering with the order of the learned Judge. On this
10
short ground, Special Leave Petition (C) No.4163 of 2023 deserves
to be dismissed.
6.
Coming to the other special leave petitions, the same arise out
of the original order passed by the learned Judge on 22.09.2022 in
the batch of writ petitions and the order dated 02.11.2022 passed
in the batch of review applications. A perusal of the order of the
learned Judge shows that the learned Judge considered the scope
of Sections 41 and 41A of the Chennai City Police Act, 1888 and
Section 30 of the Police Act, 1861, to come to the conclusion that
the reliefs sought in the writ petitions deserved to be granted
subject to certain conditions. The operative portion of the order
dated 22.09.2022 reads as follows:
“11.
In view of the above order passed by the
Hon'ble Supreme Court of India as well as
various orders passed by this Court, it would be
appropriate to direct the respondents to grant
permission to conduct procession and to conduct
public meeting on 02.10.2022 at various places
subject to the following conditions on or before
28.09.2022:-
i.
ii.
During the program, nobody shall either
sign songs or speak ill on any individuals,
any caste, religion, etc.,
Those who participate in the program shall
not for any reason talk or express anything
in favour of organizations banned by
Government of India. They should also not
indulge in any act disturbing the
sovereignty and integrity of our country.
11
iii.
iv.
v.
vi.
The program should be conducted without
causing any hindrance to public or traffic.
The participants shall not bring any stick,
lathi or weapon that may cause injury to
any one.
First
The organizer(s) shall make adequate
arrangements for drinking water and
proper
Aid/Ambulance/Mobile
Toilets/CCTV Cameras/ Fire Fighting
equipments etc., in consultation with the
Police/Civic/Local Bodies as directed by
the police.
The procession shall proceed in any orderly
manner along the sanctioned route keeping
to the left and shall not halt on the way or
cause impediment to the normal flow of
traffic. The procession shall occupy only
one-fourth of the road.
vii.
The organizer(s) shall keep sufficient
volunteers to help the police for regulation
of traffic and the participants.
viii. The organizer(s) of procession/rally shall be
responsible for ensuring that the route
permitted to them by the Police Authorities
is strictly followed.
Only box type speakers should be used
and output of the speakers should not
exceed 15 watts ad within a radius of 30
meters only. Cone Speakers should not be
used at any cost.
ix.
x.
xi.
In the procession, the processionists shall
not any manner offend the sentiments of
any religious, linguistics, cultural and other
groups.
An undertaking to reimburse the cost for
any damage that may occur enroute to any
property and an
public/private
undertaking
the
compensation/replacement costs as well, if
bear
to
12
are to be awarded to any other
institution/person, who may apply for the
same.
xii.
If there is violation of any one of the
conditions imposed, the concerned police
officer is at liberty to take necessary action,
as per law.”
7.
The learned Judge not only interpreted the relevant provisions
of the law correctly but also imposed necessary conditions. This is
why the learned Judge could not review his own order.
8.
It is to be noted that the learned Judge in fact followed several
similar orders passed by the other Judges of the same High Court
including one of us (V. Ramasubramanian, J. as he then was at the
Madras High Court) in the past.
9.
As rightly contended by all the learned senior counsel on the
side of the respondent, the main objection raised by the State before
the High Court was that after the imposition of a ban order on
another organization, law and order problems cropped up in certain
places and that the same led to several cases being registered. The
details of those cases are actually furnished in the memorandum of
grounds of special leave petition(s). We do not wish to extract in this
order, the Chart provided by the State in Ground No.BB of Special
Leave Petition (C) No.4163 of 2023, on account of its sensitivities.
But the Chart provided by the State Government shows that the
13
members of the respondent organization were the victims in many
of those cases and that they were not the perpetrators. Therefore, it
is not possible for us to find fault with the order passed by the
learned Judge either in the main writ petitions or in the review
applications. Hence all the special leave petitions are liable to be
dismissed.
10. The Special Leave Petitions are accordingly dismissed. No
costs. Pending application(s), if any, shall stand disposed of.
|
Heard Mr. Mukul Rohatgi, learned
senior counsel appearing for the petitioner and Mr.
K.K. Venugopal, learned senior counsel appearing
for respondent no.3.
3. Only short issue involved in these appeals is
with regard to interpretation of the directions
issued by this Court by its order dated 7th
November, 2006 in I.A. Nos.2-5 & 8 in Special Leave
Petition (C) No.10281 of 2006. It is submitted by
Mr. Mukul Rohatgi, learned senior counsel appearing
for the appellant that the order passed by the High
Court of Bombay in Writ Petition Nos.1589/2007,
1075/2007 and 1036/2007 on 17th of September, 2009
is contrary to the directions issued by this Court
in the aforesaid order dated 7th November, 2006. In
order to appreciate the submissions made by Mr.
Rohatgi, it would be necessary to reproduce the
directions issued by this Court in the order dated
7th November, 2006 and the directions issued by the
High Court in the impugned order dated 17th of
September, 2009. On 7th November, 2006, this Court
inter alia directed as follows:
“As directed by the order in Writ
Petition No.988 of 2004 dated
11.03.2005 and order dated 04.05.2006
in Writ Petition No.1277 of 2006 the
SRA is directed to call the two
developers, namely M/s. Keya and M/s.
Sigtia and dispose of their
application for issuing the Letter of
Intent and to pass appropriate orders
and in accordance with Maharashtra,
Slum Areas Improvement, Clearance and
RE-development Act, 1971 and also
strictly following the procedure for
submission processing and approval of
Slum Rehabilitation Scheme and to
Award the Letter of intent to the
developer who satisfies the required
qualifications and conditions and
regulations and the provision of the
Act, 1971.”
4.
Whereas in the impugned order
dated 17th September, 2009, the High Court has
directed as follows:
“In our opinion, the impugned
order is liable to be quashed and
set aside.
Accordingly, the
impugned order is quashed and set
aside. Matter is remanded to the
SRA. The SRA to decide the proposal
of M/s. Sigtia Developers in terms
of the order dated March 11, 2005
passed in Writ Petition No.988 of
2004 as also the order dated May 4,
2006 passed by this Court in Writ
Petition No.1277 of 2006, and the
order dated November 7, 2006 passed
by the Apex Court in SLP No.10281 of
2006, and on the basis of the record
as it stands today, as expeditiously
as possible, and in any case within
a period of three months from today.
All contentions of the parties are
expressly kept open. The SRA will
consider the contentions of the
parties and will record reasons and
give findings. While considering the
proposal of M/s. Sigtia Developers,
the SRA will consider the objections
of M/s. Keya Developers, as also of
the Society, Mr. Jagtap & Others and
Mr. Mane. If the SRA decides not to
issue LOI in favour of M/s. Sigtia
Developers, it will be open for the
parties to submit fresh development
Scheme as observed by this Court in
paragraph no.20 of the judgment and
order dated March 11, 2005 in Writ
Petition No.988 of 2004. Rule is
made absolute in all the Petitions.”
5.
Perusal of the above would show
that the order passed by the High Court makes a
significant departure from the directions issued by
this Court. It appears to give impression that the
SRA is to decide only the proposal of M/s. Sigtia
Developers, whilst taking into consideration the
objection of M/s. Keya Developers. We are of the
considered opinion that by order dated 7th November,
2006, this Court had very clearly directed the SRA
to consider the proposals of M/s. Sigtia Developers
and M/s. Keya Developers. The applications of both
the Developers for issuance of a Letter of Intent
are to be considered by SRA in accordance with the
Maharashtra, Slum Areas Improvement, Clearance and
RE-development Act, 1971. In other words, the SRA
is required to consider the claim of both the
Developers in accordance with law. Mr. Rohatgi had
taken serious objections to the observations made
by the High Court in paragraph 30 of the impugned
order, where it is observed as follows:
“It is thus clear that the first
issue that the SRA was to consider
is whether M/s. Sigtia is entitled
to issuance of Letter of intent. No
doubt as per the order of the
Supreme Court M/s. Keya Developers
will also have to be heard on that
issue, but there is no question of
the issue whether M/s. Keya
Developers is entitled to Letter of
Intent being considered unless and
until the SRA comes to the
conclusion that M/s. Sigtia is not
entitled to get the Letter of
Intent. In other words, the SRA
will have to first hear the parties
on the issue whether M/s. Sigtia is
entitled to Letter of Intent. If the
SRA comes to the conclusion that
M/s. Sigtia is entitled to Letter of
Intent, then that will be the end of
the matter, and the order of this
Court and the order of the Supreme
Court will stand complied with.
However, in case the SRA comes to
the conclusion that M/s. Sigtia is
not entitled to issuance of Letter
of Intent then it will have to take
up the issue whether M/s. Keya
Developers is entitled to issuance
of Letter of Intent for
consideration. The application of
M/s. Sigtia will have to be heard
and considered first, and it is only
thereafter depending on the result
of that application, that the
application of M/s. Keya Developers
can be considered, assuming that
M/s. Keya Developers has made any
such application because we have
recorded a finding above that no
complete application submitted by
M/s. Keya Developers is on the
original record. No doubt, while
considering the question whether
M/s. Sigtia is entitled to issuance
of Letter of Intent, the question
whether the agreement in favour of
M/s. Sigtia has been validly
terminated or not will have to be
considered.”
6. These observations certainly tend to give the
impression that M/s. Keya Developers is to be
considered, only in case the Letter of intent is
not issued in favour of M/s. Sigtia Developers.
Thus, in our opinion, it is necessary to reiterate
the directions issued by this Court in the order
dated 7th November, 2006, which clearly directed the
SRA to call the two Developers and dispose of their
applications for issuance of the Letter of Intent
and pass the appropriate order in accordance with
law. It was further directed that the SRA shall
strictly follow the procedure for submission
processing and approval of Slum Rehabilitation
Scheme. Further direction was also issued to award
the Letter of Intent to the Developer who satisfies
the required qualifications and conditions. We are
informed that the time granted by the High Court,
in the order dated 17th September 2009, to SRA for
taking a decision has now expired. We, therefore,
direct that the SRA shall now take a decision
within 15 days, from today.
7.
The impugned order passed by the
High Court is modified to the extent indicated
above and the appeals are disposed of accordingly
with no order as to costs.
|
1.
This Writ petition filed in the public interest
under Article 32 of the Constitution of India seeks
direction to forthwith ban on spraying of all kinds of
disinfectants on human beings which is being done
supposedly for protecting the human beings from the
Novel Coronavirus disease 2019(Covid19).
2.
The World Health Organisation(WHO) declared novel
coronavirus disease, 2019 (hereinafter referred to as
2
Covid19) as a Pandemic on 11.03.2020. All countries
including India after spread of the pandemic had taken
and are still taking different measures to contain the
disease and protect its citizens from Covid19. On
29.03.2020, Ministry of Health and Family Welfare,
Government of India, released guidelines on
disinfection of common Public places including Offices.
The scope as contained in the guidelines is to the
following effect:
"Scope: This document aims to provide
interim guidance about the environmental
cleaning/decontamination of common public
places including offices in areas
reporting COVID19.
Coronavirus Disease 2019(COVID19) is an
acute respiratory disease caused by a
novel Cornavirus (SARSCoV2), transmitted
in most instances through respiratory
droplets, direct contact with cases and
also
contaminated
surfaces/objects. Though the virus
survives on environmental surfaces for
varied period of time, it gets easily
inactivated by chemical disinfectants...”
through
3.
On 18.04.2020, Director General of Health Services
(EMR Division), Ministry of Health and Family Welfare,
issued an advisory against spraying of disinfectants on
3
people for Covid19 arrangements. Even though in the
above advisory, spraying of individuals or groups was
not recommended, several bodies, organizations started
using spraying tunnels to disinfect the human body. The
press release dated 23.4.2020 was issued by National
Capital Laboratory(Council for Scientific and
Industrial Research) which was joint press release by
CSIRNCL PuneICT Mumbai, stating that the use of mist
based sanitization is expected to provide safeguard to
frontline health care professionals including
paramedical staff, police and employees providing
essential services. Other public organizations also
started using the walk way spray tunnels, and other
measures for disinfecting humans at various public
places.
4.
This writ petition under Article 32 has been filed
on 05.06.2020 praying for following reliefs:
"i. Issue a writ in the nature of Mandamus
or any other appropriate writ, direction
or order a forthwith ban on the usage,
installation, production, advertisement of
disinfection tunnels involving spraying or
fumigation of chemical disinfectants for
4
the purposes disinfecting human being
and/or
ii. Issue a writ in the nature of Mandamus
or any other appropriate writ, direction
or order a forthwith ban on usage,
installation, production, advertisement of
disinfection tunnels involving spraying or
fumigation of organic disinfectants for
the purposes disinfecting human beings
and/or
iii. Issue a writ in the nature of
Mandamus or any other appropriate writ,
direction or order a forthwith ban on the
usage,
production,
advertisement of disinfection tunnels
exposing human beings to ultraviolet rays
for the purposes disinfecting them and/or
installation,
iv. To pass such other orders and further
orders as may be deemed necessary on the
facts and in the circumstances of the
case”
5.
The petitioner in the writ petition referred to and
relied the advisory dated 18.04.2020 and has also
referred to press release dated 23.04.2020 issued by
CSIRNCL,PuneICT,Mumbai, where tunnels for external
body surface sanitization of personal walk was
recommended.
6.
The petitioner's case in the writ petition is that
5
although the Ministry of Health and Family Welfare,
Government of India, has not approved the use of any
self claimed organic or ayurvedic disinfectant for
spraying or fumigation purposes nor approved any
chemical disinfectants on human body but lot of
organizations/public authorities are using chemical
disinfectants for spraying and fumigation. Several
instances in the writ petition of public authorities
installing disinfecting tunnel has been given in the
writ petition.
7.
Publication from World Health Organization has also
been relied where it is clearly stated that spraying
and introducing bleach or other disinfectant into body
will not protect against Covid19 and can be dangerous.
Quoting World Health Organization, it is pleaded that
the Ultraviolet (UV Lamps) should not be used to
disinfect the hands and other areas of the skin.
Reference has also been made of advanced disinfectant
tunnel developed jointly by Indian Institute of
Technology, Kanpur and Artificial Limb Manufacturing
6
Corporation of India.
Articles questioning against the use of disinfectant
8.
tunnels have also been referred to and relied by the
petitioner. Certain materials where different experts
have recommended use of UV light and disinfectant
tunnel has also been referred to. sIn view of several
discordant note expressed by certain experts and
organizations, the writ petition prayed for directions
as quoted above.
9.
This Court issue notice to respondent Nos. 13 on
10.08.2020. No notice having been issued to the
respondent Nos.4 to 6, they be deleted from the array
of the parties. The respondent No.1 has filed a counter
affidavit dated 01.09.2020 where advisory dated
18.04.2020 as well as minutes of meeting dated
09.06.2020 held under the chairmanship of Director
General Health Services, with regard to review on use
of disinfection tunnel using various chemicals and
spraying disinfectants have been brought on the record.
Taking note of the meeting proceeding dated 09.06.200
where spraying disinfectant was not recommended by the
minutes, This Court passed following order on
07.09.2020:
7
"
ORDER
A counter affidavit has been filed on
behalf of Union of India. In the counter
affidavit at page 40 copy of meeting
Annexure 'G' dated 09.06.2020 has been
brought on the record, where it has been
decided that spraying disinfectants is not
recommended. Shri Tushar Mehta, learned
Solicitor General submits that relevant
directions and circulars shall be issued
to all concerned.
As prayed by Shri Tushar Mehta,
learned Solicitor General, list after two
weeks.”
10. After the aforesaid order, another affidavit titled
as 'Compliance affidavit dated 28.09.2020' by
respondent No.1 where O.M. dated 23.09.2020 has been
brought on the record reiterating that spraying of
individuals or groups with disinfectant using any
modality is not recommended and hence, all States/Union
Territories are directed to ensure that such practices
are not implemented in the States/UTs.
11. An additional affidavit has also been filed by
8
respondent No.1 with regard to use of Ultraviolet (UV)
rays to disinfect/sterilize edible items like fruits
and vegetables. Petitioner has also filed consolidated
rejoinder affidavit. An intervention application has
also been filed by one Ideal Flow Pvt. Ltd. which
claims to be a company which has developed and designed
pressurized steam disinfectant chamber. The applicant
submits that in designed pressurized steam disinfectant
chamber, natural oils are mixed in an emulsifier
solution. Applicant claims that the product has various
health benefits. Applicant further submitted that there
is a major difference between disinfectant tunnels
spraying chemical disinfectant and pressurized
disinfection chamber, any blanket ban as sought in the
writ petition may seriously impact the business of the
applicant, in light of the major difference of the
applicant's product from that of disinfection tunnel
mentioned in the writ petition.
12. We have heard the petitioner appearing in person,
Shri Tushar Mehta, learned Solicitor General for the
respondents and Smt. Anita Shenoy, Senior Advocate for
the intervenor.
9
13. The petitioner submits that although the Ministry of
Health & Family Welfare, the respondents No.1 through
its advisory dated 18.04.2020 had stated that spraying
of disinfectant on human being is not recommended but
Union of India has not taken any step to stop use,
advertisement and sale of chemical based disinfection
tunnels. The petitioner submits that there is no study
anywhere in the world by any credible health agency
which states that human disinfection tunnels are
effective against Covid19 virus. On the contrary,
there are sufficient health advisories by the WHO,
respondent No.1 and other international agency that
tunnels are counter productive and harmful for human
health. There has been no advisory issued by respondent
No.1 which recommends usage of any organic solution
for spraying on human body against Covid19 pandemic.
14. The petitioner submits that in absence of any
recommendation of health authorities, there is a trend
10
across the Country where people are producing self
certified so called safe disinfection tunnels with
variety of organic solutions. The petitioner submits
that the concept of “human disinfection” through walk
in tunnel is flawed and misconceived and be not
permitted at any cost in light of Right to Health under
Article 21 of the Constitution.
15. Shri Tushar Mehta, learned Solicitor General,
submits that answering respondent No.1 had not issued
any advisory for usage, installation, production,
advertisement of disinfection tunnel involving spraying
or fumigation of chemicals/organic disinfectants for
the purpose of disinfecting human beings. Learned
Solicitor General has referred to advisory dated
18.04.2020 issued by respondent No.1. It is further
submitted that in the meeting held on 09.06.2020 under
the Chairmanship of Director General Health Services,
review on use of disinfection tunnel was made and it
was reiterated that spraying disinfectant is not
recommended in both health care and nonhealth care
11
settings. Shri Mehta submits that the States/UTs have
to implement the guidelines dated 18.04.2020 and the
role of the Government of India is limited to providing
necessary guidelines and financial support.
16. Learned counsel for the intervenor has submitted
that the product which is being designed by the
applicant does not use any chemical as human
disinfectant rather it uses natural oil which promotes
health. The applicant opposes any blanket ban on the
use of such products for human disinfection.
17. We have considered the submission of learned counsel
for the parties and perused the record.
18. The writ petition raises following three questions:
I) Whether spraying or fumigation of any kind of
chemical disinfectants on human beings without the
approval of the relevant ministry is violative of
Article 21?
II) Whether spraying or fumigation of any kind of self
claimed organic disinfectant on human beings without
the approval of the relevant Ministry is violative of
12
Article 21?
III) Whether exposure of human beings to artificial
ultraviolet rays is violative of Article 21?
All the above questions being interconnected are
being taken together.
19. Article 21 of the Constitution provides for
protection of life and personal liberty. The expression
'life' used in Article 21 has wide import and
connotation. Article 21 encompasses a bundle of rights
which have been recognized from time to time by the
legislature of this Country and Courts of this Country
including this Court. Right to life as recognized under
Article 21 is Right to live with dignity. Right to
health is also recognized as an important facet of
Article 21 of the Constitution. We may refer to
pronouncement of this Court in <cite>Devika Biswas versus
13
Union of India and others, (2016) 10 SCC 726</cite>, where
this Court held that Right to Health is an integral
facet of Right guaranteed under Article 21 of the
Constitution. In paragraph 107 of this Court dealing
with Right to Health laid down following:
"107. It is well established that the
right to life under Article 21 of the
Constitution includes the right to lead a
dignified and meaningful life and the
right to health is an integral facet of
this right. In <cite>CESC Ltd. v. Subhash
Chandra Bose</cite> dealing with the right to
health of workers, it was noted that the
right to health must be considered an
aspect of social justice informed by not
only Article 21 of the Constitution, but
also the Directive Principles of State
Policy and international covenants to
which India is a party. Similarly, the
bare minimum obligations of the State to
ensure the preservation of the right to
life and health were enunciated in <cite>Paschim
banga Khet Mazdoor Samity vs. State of
W.B.</cite>”
20. In the present case, Right to Health under
consideration is in wake of pandemic Covid19. The
provisions of Disaster Management Act, 2005(hereinafter
referred to as Act, 2005) has been invoked to combat
Covid19 by different authorities constituted under
Act, 2005. Covid19 is a notified disaster for the
purposes of the Act, 2005 by the Government of India.
14
21. The Act, 2005, is an act for effective management of
disasters and matters connected therewith and
incidental thereto. Disaster Management includes
prevention of danger/threat of a disaster, mitigation
or reduction of risk of a disaster, preparedness to
deal with the disaster and prompt response to any
threatening disaster situation or disaster etc.. Under
Section 3, National Disaster Management Authority is
established for the purposes of the Act. Section 8
provides for the constitution of National Executive
Committee. Section 10 deals with powers and function of
National Executive Committee. The National Executive
Committee is to assist the National Authority in
discharge of its functions and have the responsibility
for implementing the policies and plans of the National
authority and ensure the compliance of the directions
issued by the Central Government for the purposes of
the Central Government. SubSection (2) of Section 10
enumerates various powers and functions of the National
Executive Committee. Section 10 which is relevant for
this case is as follows:
15
"10. Powers and functions of National
Executive Committee.—
(1) The National Executive Committee shall
assist the National Authority in the
discharge of its functions and have the
responsibility for implementing the
policies and plans of the National
Authority and ensure the compliance of
directions issued by the Central
Government for the purpose of disaster
management in the country.
(2) Without prejudice to the generality
of the provisions contained in subsection
(1), the National Executive Committee may—
(a) act as the coordinating and monitoring
body for disaster management;
(b) prepare the National Plan to be
approved by the National Authority;
(c) coordinate and monitor the
implementation of the National Policy;
(d) lay down guidelines for preparing
disaster management plans by different
Ministries or Departments of the
Government of India and the State
Authorities;
(e) provide necessary technical assistance
to the State Governments and the State
Authorities for preparing their disaster
management plans in accordance with the
guidelines laid down by the National
16
Authority;
(f) monitor the implementation of the
National Plan and the plans prepared by
the Ministries or Departments of the
Government of India;
(g) monitor the implementation of the
guidelines laid down by the National
Authority for integrating of measures for
prevention of disasters and mitigation by
the Ministries or Departments in their
development plans and projects;
(h) monitor, coordinate and give
directions regarding the mitigation and
preparedness measures to be taken by
different Ministries or Departments and
agencies of the Government;
(i) evaluate the preparedness at all
governmental levels for the purpose of
responding to any threatening disaster
situation or disaster and give directions,
where necessary, for enhancing such
preparedness;
(j) plan and coordinate specialised
training programme for disaster management
for different levels of officers,
employees and voluntary rescue workers;
(k) coordinate response in the event of
any threatening disaster situation or
disaster;
(l) lay down guidelines for, or give
directions to, the concerned Ministries or
Departments of the Government of India,
the State Governments and the State
Authorities regarding measures to be taken
17
by them in response to any threatening
disaster situation or disaster;
(m) require any department or agency of
the Government to make available to the
National Authority or State Authorities
such men or material resources as are
available with it for the purposes of
emergency response, rescue and relief;
(n) advise, assist and coordinate the
activities of the Ministries or
Departments of the Government of India,
State Authorities, statutory bodies, other
governmental
nongovernmental
organisations and others engaged in
disaster management;
or
(o) provide necessary technical assistance
or give advice to the State Authorities
and District Authorities for carrying out
their functions under this Act;
(p) promote general education and
awareness in relation to disaster
management; and
(q) perform such other functions as the
National Authority may require it to
perform. ”
22. The powers under subsection (2) of Section 10
clauses (i) and (l) of Act, 2005, have been delegated
to Secretary, Ministry of Health and Family Welfare,
Government of India, by notification dated 11.03.2020.
The Notification dated 11.03.2020 is as follows:
18
"
ORDER
In exercise of the powers conferred under
Section 69 of the Disaster Management Act,
2005, Union home Secretary being Chairman
of the National Executive Committee(NEC)
hereby delegates its power under clauses
(i) and (l) of subsection (2) of Section
10 of the Disaster Management Act, 2005 to
Secretary, Ministry of Health and Family
Welfare, Government of India to enhance
the preparedness and containment of novel
Coronavirus(COVID19) and the other
ancillary matters connected thereto. This
order shall be deemed to have come into
effect from 17th January, 2020.
(Sanjeev Kumar Jindal)
Joint Secretary to the
Government of India”
23. Thus it is the Secretary, Ministry of Health and
Family Welfare, who had to lay down the guidelines or
give directions to the concerned Ministries or
Departments of Government of India, the State
Governments and State Authorities regarding measures to
be taken by them in response to any disrupting
situation or disaster. The Pandemic has threatened the
health of entire citizenry of the country and all
facets relating to pandemic Covid19, its prevention,
mitigation and cure are to be dealt with and taken care
of authorities empowered with different duties and
functions under different statutes including Disaster
Management Act, 2005.
19
24. We may first refer to the advisory dated 18.04.2020
which was issued against spraying of disinfectant on
people for Covid19 management. The advisory dated
18.04.2020 states:
"Advisory against spraying of disinfectant
on people for COVID19 management
Ministry of Health & Family Welfare has
received many queries regarding the
efficacy (if any) of use disinfectants
such as Sodium hypochlorite spray used
over the individuals to disinfect them.
The strategy seems to have gained of lot
of media attention and is also being
reportedly used at local levels in certain
districts/local bodies.
Purpose of the document
To examine the merit of using
disinfectants as spray over human body to
disinfect them from COVID19 and to
provide appropriate advisory
Disinfectants are chemicals that destroy
disease causing pathogens or other harmful
microorganisms. It refers to substances
applied on inanimate objects owing to
their strong chemical properties.
20
Chemical disinfectants are recommended for
cleaning and disinfection only of
frequently touched areas/surfaces by those
who are suspected or confirmed to have
COVID19. Precautionary measures are to be
adopted while using disinfectants for
cleaning – like wearing gloves during
disinfection.
In view of the above, the following
advisory is issued:
• Spraying of individuals or groups is NOT
recommended under any circumstances.
Spraying an individual or group with
chemical disinfectants is physically and
psychologically harmful.
• Even if a person is potentially exposed
with the COVID19 virus, spraying the
external part of the body does not kill
the virus that has entered your body. Also
there is no scientific evidence to suggest
that they are effective even in
disinfecting the outer clothing/body in an
effective manner.
• Spraying of chlorine on individuals can
lead to irritation of eyes and skin and
potentially gastrointestinal effects such
as nausea and vomiting. Inhalation of
sodium hypochlorite can lead to irritation
of mucous membranes to the nose, throat,
respiratory tract and may also cause
bronchospasm.
• Additionally use of such measures may in
fact lead to a false sense of disinfection
& safety and actually hamper public
observance to hand washing and social
distancing measures.”
21
25. Even though the above advisory was issued by
Directorate General of Health Services not recommending
spraying of disinfectant on people for Covid19
management but several contrary opinion have been
expressed by other bodies and organisations. In this
context, reference has been made to the joint Press
Release dated 23.04.2020 by NCL (CSIR). The Press
Release dated 23.04.2020 states:
"Publication and Science Communication
Unit
Press release
April 23, 2020
Safe concentration of disinfectant in
walk through spray tunnels and their
scientific design
Joint Press Release: CSIRNCL Pune and ICT
Mumbai
Pune
CSIR–National Chemical Laboratory (CSIR
NCL),
various
concentrations of sodium hypochlorite to
find effective chemical disinfectants for
the mist sanitization system.
evaluated
The use of mistbased sanitization is
expected to provide safeguards to
frontline healthcare professionals,
including paramedic staff, police, and
employees providing essential services.
22
These people are more likely to get the
infection and unknowingly spread arising
from various sources. A lot of advisories
have appeared against the use of such
tunnels from various agencies, which does
not have any scientific basis.
Efficacy of sodium hypochlorite, also
known as hypo or bleach, ranging from
0.02% to 0.5% weight concentration was
studied on personnel walking through mist
tunnel unit, besides antibacterial
activity against standard microorganisms
before and after exposure in the walk
through. Results indicated that 0.02% to
0.05% weight concentration did not show an
adverse effect on normal skin flora and
yet destroyed the standard microbes. Thus,
we recommend using 0.02% 0.05 wt. %
sodium hypochlorite solution (200 to 500
ppm) for external body surface
sanitization of personnel walk through the
mist tunnel by following standard safety
precautions”
26. The petitioner has also referred to in the writ
petition various articles where different experts have
recommended for effective sanitization amid Covid19
pandemic by disinfection tunnels, different studies for
and against disinfectment of human body has been
referred to and relied in the writ petition.
27. After Notice was issued in the petition, the counter
23
affidavit was filed. In the Counter affidavit
respondent No.1 has also brought on record the minutes
of the meeting dated 09.06.2020 chaired by Director
General Health Services where review was made on the
use of disinfection tunnels. Observations as recorded
in the minutes are as follows:
"1.Use of disinfection tunnel
The matter of spraying of disinfectant
on people for COVID19 management was
discussed in the Joint Monitoring Group
and an advisory in this regard has been
issued by MOHFW/DGHS, EMR Division which
is available on the website of the
ministry. It clearly states the following:
"Spraying of individuals or groups is NOT
recommended under any circumstances.
Spraying an individual or group with
chemical disinfectants physically and
psychologically harmful.
• Even if a person is potentially
exposed with the Covid19 virus,
spraying the external part of the body
does not kill the virus that has
entered your body. Also there is no
scientific evidence to suggest that
they are effective even in
disinfecting the outer clothing/body
in an effective manner.
• Additionally use of such measures may
in fact lead to a false sense of
disinfection and safety and actually
hamper public observance to hand
24
washing and social distancing
measures.
It is reiterated that spraying of
individuals with disinfectants (such as
tunnels, cabinets, chambers, etc.) is
not recommended.
This could be
physically and psychologically harmful
and would not reduce an infected
person's ability to spread the virus
through droplets or contact. Moreover,
spraying individuals with chlorine and
other toxic chemicals could result in
eye and skin irritation, bronchospasm
due to inhalation, and gastrointestinal
effects such as nausea and vomiting.
2. Use of Chemicals
As per the advisory by MOHFW/DGHS, EMR
Division:
Chemical disinfectants are recommended
for cleaning and disinfection only of
frequently touched areas/surfaces by
those who are suspected or confirmed to
have COVID19. Precautionary measures
are to be adopted while using
disinfectants for cleaning – like
wearing gloves during disinfection.
Spraying of chlorine on individuals can
lead to irritation of eyes and skin and
potentially gastrointestinal effects
such as nausea and vomiting. Inhalation
of sodium hypochlorite can lead to
irritation of mucous membranes to the
nose, throat, respiratory tract and may
also cause bronchospasm.
The chemicals such as freshly prepared
25
1% sodium hypochlorite or 70% ethanol
etc., are to be used as indicated, to
disinfect inanimate surfaces using
mops/wipes for the recommended contact
time.
3. Spraying disinfectants:
not
Spraying disinfectants is
recommended in both health care and non
health care settings.
In indoor spaces, routine application of
disinfectants to environmental surfaces
by spraying or fogging (also known as
fumigation or misting) is not
recommended for COVID19 as the
disinfectants may not be effective in
removing organic material and may miss
surfaces shielded by objects, folded
fabrics or surfaces with intricate
designs. If disinfectants are to be
applied, this should be done with a
cloth or wipe that has been soaked in
disinfectant.
Spraying or fumigation of outdoor
spaces, such as streets or marketplaces,
is also not recommended to kill the
COVID19 virus or other pathogens
because disinfectant is inactivated by
dirt and debris and it is not feasible
to manually clean and remove all organic
matter from such spaces. Moreover,
spraying porous surfaces, such as
sidewalks and unpaved walkways, would be
even less effective. Even in the absence
of organic matter, chemical spraying is
unlikely to adequately cover all
surfaces for the duration of the
required contact time needed to
26
inactivate pathogens. Furthermore,
streets and sidewalks are not considered
to be reservoirs of infection for COVID
19. In addition, spraying disinfectants,
even outdoors, can be harmful for human
health.
The committee referred to the document
of the World Health Organisation on
'Cleaning and disinfection of
environmental surfaces in the context of
COVID19.'
28. It is further relevant to notice that in paragraph
13 of the affidavit dated 01.09.2020, following
statement has also been made:
"13. It is most respectfully submitted
that as public health and hospitals are
State subject, it is for the States/Union
Territories to implement the guidelines
issued by the Ministry of Health and
Family Welfare and the role of Government
of India is limited to providing necessary
guidance and financial support.
.... ... .... ...."
29. From the pleadings brought on record on behalf of
respondent No.1, it is clear that although by the
advisory by respondent No.1, spraying of disinfectant
on human body is not recommended but respondent No.1
has not taken any further steps in the above context
taking any measure either to prevent or regulate the
spraying of disinfectant on the human body.
27
30. We have noted above the powers and functions of
National Executive Committee under Section 10 of the
Act, 2005, which specifically empowers the National
Executive Committee to give directions regarding
measures to be taken by the concerned ministry and
departments of the Government, State Governments and
State Authorities in response to the threatening
situation or disaster.
31. Section 36 of the Act, 2005, expressly enumerates
the responsibilities of Ministries and departments of
the Government of India. Section 36 which is relevant
for the case is as follows:
"36. Responsibilities of Ministries or
Departments of Government of India.—It
shall be the responsibility of every
Ministry or Department of the Government
of India to—
(a) take measures necessary for prevention
of disasters, mitigation, preparedness and
capacity building in accordance with the
guidelines laid down by the National
28
Authority;
(b) integrate into its development plans
and projects, the measures for prevention
or mitigation of disasters in accordance
with the guidelines laid down by the
National Authority;
(c) respond effectively and promptly to
any threatening disaster situation or
disaster in accordance with the guidelines
of the National Authority or the
directions of the National Executive
Committee in this behalf;
(d) review the enactments administered by
it, its policies, rules and regulations,
with a view to incorporate therein the
provisions necessary for prevention of
disasters, mitigation or preparedness;
(e) allocate funds for measures for
prevention of disaster, mitigation,
capacitybuilding and preparedness;
(f) provide assistance to the National
Authority and State Governments for—
up
drawing
(i)
mitigation,
preparedness and response plans,
capacitybuilding, data collection
and identification and training of
personnel in relation to disaster
management;
(ii) carrying out rescue and relief
operations in the affected area;
(iii) assessing the damage from any
disaster;
(iv) carrying out rehabilitation and
29
reconstruction;
(g) make available its resources to the
National Executive Committee or a State
Executive Committee for the purposes of
responding promptly and effectively to any
threatening disaster situation or
disaster, including measures for—
(i) providing emergency communication
in a vulnerable or affected area;
(ii) transporting personnel and
relief goods to and from the affected
area;
(iii) providing evacuation, rescue,
temporary shelter or other immediate
relief;
(iv) setting up temporary bridges,
jetties and landing places;
(v) providing, drinking water,
essential provisions, health care,
and services in an affected area;
(h) take such other actions as it may
consider necessary for disaster
management. ”
32. When respondent No.1 has issued advisory that use of
disinfectant on human body is not recommended and it
has been brought into its notice that despite the said
advisory, large number of organizations, public
authorities are using disinfectants on human body, it
30
was necessary for the respondent No.1 to issue
necessary directions either to prevent such use or
regulate such use as per requirement to protect the
health of the people. The provisions of Disaster
Management Act, Section 10, 36 and other provisions are
not only provisions of empowerment but also cast a duty
on different authorities to act in the best interest of
the people to subserve the objects of the Act.
33. We have extracted paragraph 13 of the Counter
Affidavit where it has been stated by the respondent
No.1 that public health and hospitals, it is for the
States/UTs to implement guidelines by the Ministry of
Health and Family Welfare and role of the Central
Government is limited to provide necessary guidelines
and financial support.
34. No exception can be taken to the above pleading but
the provisions of the Act, 2005, confer certain more
responsibilities and duties on the respondent No.1
apart from issuance of guidelines and providing
31
financial support. The Act, 2005, is special
legislation containing selfcontained provisions to
deal with a disaster. The Pandemic being a disaster
within the meaning of Act, 2005, has to be dealt with
sternly and effectively.
35. We have no doubt that the Union and the States are
taking all measures to contain the pandemic and all
mitigating steps but the facts which have been brought
on record in this writ petition indicate that in the
present case, something more was required to be done by
respondent No.1 apart from issuing advisory that use
of disinfectant on human body is not recommended. When
public authorities/ organizations were using
disinfectants both chemical/organic on the human body
and there are various studies to the effect that it may
be harmful to the health and the body. Some more
actions were required to remove the cloud of
uncertainty and to regulate the use even if it was to
either prevent such use or regulate the use so that
health of citizens is amply protected.
32
36. When a statute confer power on authority and that
power is to be exercised for the benefit of the people
in general, the power is coupled with the duty. This
Court in <cite>Commissioner of Police versus Gordhandas
Bhanji, AIR 1952 SC 16</cite>, speaking through Vivian
Bose,J., had laid down the offquoted preposition in
paragraph 28:
"28. The discretion vested in the
Commissioner of Police under R.250 has
been conferred upon him for public reasons
involving the convenience, safety,
morality and welfare of the public at
large. An enabling power of this kind
conferred for public reasons and for the
public benefit is, in our opinion, coupled
with a duty to exercise it when the
circumstances so demand. It is a duty
which cannot be shirked or shelved nor it
be evaded, performance of it can be
compelled under S.45.”
37. This Court again in <cite>L.Hirday Narain versus income
Tax Officer, Bareilly, (1970) 2 SCC 355</cite>, reiterated the
same principle in following words:
"13....if a statute invests a public
officer with authority to do an act in a
specified set of circumstances, it is
33
imperative upon him to exercise his
authority in a manner appropriate to the
case when a party interested and having a
right to apply moves in that behalf and
circumstances for exercise of authority
are shown to exist. Even if the words used
in the statute are prima facie enabling
the Courts will readily infer a duty to
exercise power which is invested in aid of
enforcement of a rightpublic or private
of a citizen.”
38. Justice V.R. Krishna Iyer had elaborately dealt the
above principle in <cite>Municipal Council, Ratlam versus
Shri Vardichan and others, (1980) 4 SCC 162</cite>. The above
case was a case where Municipal Council Ratlam was
entrusted with certain duties to the public which was
sought to be enforced by the residents through Section
133 Cr.P.C. where Magistrate issued certain directions
to the Municipal Corporation which came to be
challenged in this Court. Justice Krishna Iyer quoting
Benjamin Bisraiely, in paragraph 9 of the judgment
stated:
"9. ...”All power is a trust – that we are
accountable for its exercise – that, from
the people, and for the people, all
springs, and all must exist.” Discretion
becomes a duty when the beneficiary brings
home the circumstances for its benign
exercise.”
34
39. With regard to judicial process, important
observations were made by this Court in the above case
that affirmative action taken in the judicial process
is to make remedy effective failing which the right
becomes sterile. In paragraph 16 of the judgment,
following observations have been made:
"16...The nature of the judicial process
is not purely adjudicatory nor is it
functionally that of an umpire only.
Affirmative action to make the remedy
effective is of the essence of the right
which otherwise becomes sterile...”
40. Justice Krishna Iyer also laid down that improvement
of public health is paramount principle of governance.
In paragraph 24, following has been observed:
"24. ...The State will realise that
Article 47 makes it a paramount principle
of governance that steps are taken 'for
the improvement of public health as
amongst its primary duties'...”
41. An additional affidavit has been filed by the
35
respondent No.1 where details regarding use of
Ultraviolet UV rays disinfectant/sterilize edible food
items like fruits and vegetables has been quoted. In
additional affidavit, rules have been relied namely
'Atomic Energy (Radiation Processing of Food and Allied
Product) Rules,2012', which rules require that no
person shall operate the facility without obtaining a
license for radiation processing of food and allied
products under the Rules. Facility has been defined as
radiation processing facility for food and allied
product. There are hosts of regulatory measures of
radiation for use of UV rays with regard to food and
other articles. We are of the view that for spraying
disinfectant on human body, fumigation or use of UV
rays against the human body, there has to be regulatory
regime when respondent No.1 itself is of the view that
such use is not recommended. The respondent No.1 has
wide powers and responsibilities under Act, 2005, which
could have been utilized to remedy the situation. In
event, use of disinfectant on human body is to cause
adverse effect on the health of the people, there has
to be immediate remedial action and respondent No.1
cannot stop only by saying that such use is not
recommended.
36
42. In view of the foregoing discussion, we are of the
view that ends of justice be served in disposing the
writ petition by issuing the following directions:
i) The respondent No.1 may consider and issue
necessary directions in exercise of powers vested in
it under the Disaster Management Act, 2005,
regarding ban/Regulation on the usage of
disinfection tunnels involving spraying or
fumigation of chemical/organic disinfectants for the
human beings.
or
ii) There shall be similar consideration and
directions by the respondents as indicated above
with regard to exposure of human being to artificial
ultraviolet rays.
iii) Looking to the health concern of the people in
general, the aforesaid exercise be completed by
respondent No.1 within a period of one month.
37
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1.
Feeling aggrieved and dissatisfied with the impugned
common judgment and order dated 18.10.2019 passed by
the High Court of Punjab and Haryana at Chandigarh in
Regular First Appeal (RFA) No. 1100/2013 and other allied
first appeals, by which, the High Court has allowed the
said first appeals in part preferred by the original land
owners and has enhanced the amount of compensation for
the lands acquired at Rs. 2,98,54,720/ per acre with all
1
2.
2.1
other statutory benefits, the State of Haryana has
preferred the present appeals.
The facts leading to the present appeals in a nutshell are
as under:
That approximately 58 acres of large chunk of lands
situated at village Kherki, Majra came to be acquired for
the public purpose under the provisions of the Land
Acquisition Act, 1894. The land acquisition officer declared
the awards. At the instance of the original land owners,
references under Section 18 of the Act, 1894 were made.
The reference court enhanced the compensation for
notification dated 13.01.2010 to Rs. 1,56,24,000/ per
acre from Rs. 60 lakhs per acre as awarded by the land
acquisition officer. The appeals preferred by the State
against the judgment and award passed by the reference
court determining the compensation at Rs. 1,56,24,000/
came to be dismissed. However, by the impugned
judgment and order taking into consideration the amount
of compensation enhanced by the High Court which came
to be modified by this Court to Rs. 2,38,00,000/ per acre
with respect to the lands acquired in the month of
January, 2008 and granting 12% cumulative increase, the
2
High Court has partly allowed the appeals preferred by the
land owners and determined and awarded the
compensation at Rs. 2,98,54,720/ per acre.
2.2
Dissatisfied with the impugned judgment and order passed
by the High Court determining and awarding the
compensation for the lands acquired vide notification
dated 13.01.2010 at Rs. 2,98,54,720/ per acre, the State
of Haryana has preferred the present appeals.
3.
We have heard Shri Nikhil Goel, learned AAG, appearing
on behalf of the State of Haryana and learned counsel
appearing on behalf of the respective original land owners.
4.
Shri Nikhil Goel, learned AAG, appearing on behalf of the
State has vehemently submitted that while determining
the compensation at Rs. 2,98,54,720/ per acre for the
lands acquired vide notification dated 13.01.2010, the
High Court has materially erred in taking into
consideration and/or relying upon the judgment of this
Court passed in Civil Appeal Nos. <cite>1181411864 of 2017
[State of Haryana Vs. Ram Chander (2017 SCC OnLine
SC 1869)</cite>] with respect to the lands acquired vide
notification issued in the month of January, 2008.
3
4.1
It is submitted that in the judgment and order passed by
this Court in <cite>Civil Appeal Nos. 1181411864 of 2017</cite>, this
Court has specifically observed and held that the
determination of compensation vide the said judgment at
Rs. 2,38,00,000/ per acre shall not be treated as a
precedent in any other case. It is submitted that therefore,
while passing the impugned judgment and order the High
Court has materially erred in taking into consideration the
amount awarded by this Court vide judgment and order
passed in <cite>Civil Appeal Nos. 1181411864 of 2017</cite> at Rs.
2,38,00,000/.
4.2
It is further submitted by Shri Nikhil Goel, learned AAG,
appearing on behalf of the State that in the present case
the prices of the land were decreasing which was taken
note of by this Court.
4.3
It is further submitted that even otherwise considering the
fact that with respect to the very village, lands came to be
acquired from 2008 onwards and therefore, the prices of
the lands were artificially increased. It is submitted that
therefore, the High Court has materially erred in giving
4
12% rise on Rs. 2,38,00,000/ per acre which has been
awarded for notification dated 25.01.2008.
4.4 Making the above submissions and relying upon the above
decision, it is prayed to allow the present appeals.
5.
While opposing the present appeals, learned counsel
appearing on behalf of the land owners has submitted that
once the appeals preferred by the State were dismissed
and the impugned common judgment and order was
passed in the appeals preferred by the land owners, it is
not open for the State now to challenge the impugned
common judgment and order passed by the High Court.
5.1
It is further submitted that even otherwise considering the
sale instances produced on record right from 09.03.2007
till 31.03.2008 there was increase in prices and therefore,
the High Court has not committed any error in granting
the enhancement of 12% on Rs. 2,38,00,000/ per acre. It
is submitted that as such no concrete evidence has been
laid down or no contrary sale instance were placed on
record by the acquiring body showing the decrease in the
market value between 2008 and 2010.
5
5.2 Making the above submissions and relying upon the recent
decision of this Court in the case of <cite>Ramrao Shankar
Tapse Vs. Maharashtra Industrial Development
Corporation and Ors.; (2022) 7 SCC 563</cite>, by which, it
was observed that a cumulative increase of 10 to 15% per
year in the market value of land may be accepted, it is
prayed to dismiss the present appeals.
6.
We have heard learned counsel appearing on behalf of the
respective parties at length. We have gone through the
impugned common judgment and order passed by the
High Court and we have also gone through and considered
the earlier decision of this Court in the case of <cite>Civil Appeal
Nos. 1181411864 of 2017</cite> by which with respect to the
lands acquired vide notification dated 25.01.2008, this
Court determined the compensation at Rs. 2,38,00,000/
per acre. In the said judgment and order, this Court has
specifically observed that the said judgment may not be
treated as a precedent. However, it is required to be noted
that even on merits also, this Court considered and
accepted the sale instances produced on behalf of the land
owners ranging between 2007 and 2008. Therefore, as
6
such determination of the compensation at Rs.
2,38,00,000/ per acre with respect to the land acquired
vide notification issued on 25.01.2008 can be said to be
the base and considering the time gap between 2008
notification and 2010 notification, a suitable enhancement
ranging between 8% to 15 % is given which is held to be
permissible as per the catena of decisions of this Court
right from the decision in the case of <cite>Pehlad Ram Vs.
HUDA; (2014) 14 SCC 778</cite> up to the recent decision of
this Court in the case of <cite>Ramrao Shankar Tapase (supra)</cite>.
However, at the same time considering the fact that in the
present case with respect to the very village, the
acquisition proceedings came to be initiated in the month
of January, 2008, it will not be safe and/or prudent to
grant the cumulative increase of 12%. In the facts and
circumstances of the case and even considering the sale
instances produced on record, we are of the opinion that if
instead of 12% enhancement on Rs. 2,38,00,000/, 10%
increase is accepted it can be said to be a just
compensation and it may meet the ends of justice.
7
7.
In that view of the matter, the market value of the land in
question for the lands acquired vide notification dated
13.01.2010 will be at Rs. 2,87,98,000/ per acre.
Resultantly, the impugned common judgment and order
8.
passed by the High Court is required to be modified to the
aforesaid extent by awarding the compensation at Rs.
2,87,98,000/ per acre. Present appeals are partly allowed
to the aforesaid extent and it is held that the original land
owners shall be entitled to the compensation at Rs.
2,87,98,000/ per acre with all other statutory benefits
which may be available under the Land Acquisition Act,
1894. The appellant – State of Haryana is hereby directed
to deposit and/or pay the compensation to the original
land owner(s) at the market value of Rs. 2,87,98,000/
along with all other statutory benefits within a period of six
weeks from today after deducting whatever amount is
already paid. Present appeals are partly allowed to the
aforesaid extent. No costs.
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The Judgment of the Court was delivered by
KIRPAL, J. The common question which arises for consideration in these
cases relates to the interpretation of an entry in the Karnataka Tax on
Entry of Goods Act, 1979 (for short ’The Act") in so far it relates to
furnace oil.
In the three sets of cases, there are different periods of assessment which
are involved. In the case of Indian Aluminium Company Ltd. (Civil Appeal
Nos. 1896-1899/1997 and 1900-1903/1997), the two periods in question are
1982-85 and 1986-1989 I" the case of M/s. Vikrant Tyres Limited (Civil
Appeal No. 3697/2000), the period involved is 1992-93. In case of M/s
Graphite India Limited (Civil Appeal No. 3696/2000), we are concerned with
the period post-1998.
Under Section 3 of the aforesaid Act, tax on entry of goods specified in
the First Schedule into a local area for consumption, Use or sate there in
can be levied at the rates specified by the State Government by
notification. It is common ground that prior to amendment of the Act in
1992, there was one Schedule which specified the various items on which
entry tax could be levied. Entry No. 11 of the said Schedule was as
follows:
"AH petroleum products, that is to say, petrol, diesel, erode oil,
lubricating oil, transformer oil, brake clutch fluid, bitumin (asphalt) tar
and others but excluding LP kerosene and naphtha for use in the manufacture
of fertilizers."
When tax was sought to be levied on M/s. Indian Aluminium Company Ltd. on
entry Of furnace oil, a writ petition was filed in the Karnataka High Court
in which it was, inter alia, contended that the aforesaid entry did not
permit levy of tax on furnace oil which was brought into Karnataka by the
said assessee. The State of Karnataka took the stand before the Single
Judge that furnace oil was lubricating oil and, therefore, covered by Entry
No. 11.
By order dated 28th January, 1992, the learned Single Judge came to the
conclusion that furnace oil was not lubricating oil and, therefore, no tax
could be levied on the said furnace oil which was brought into Karnataka.
An appeal was filed against the aforesaid decision before the Division
Bench but during the pendency of the same by an Amendment Act pf 1992; the
Act was amended. Instead of one Schedule, the Amending Act provided for two
Schedules. The First Schedule contained 102 items on which entry tax Could
be levied under Section 3(1). Item No. 103 in the First Schedule was a
residuary item which enabled the imposition of tax on "goods other than
those specified in any of the entries in this Schedule, but excluding those
specified in the Second Schedule." The Second Schedule which was inserted
by virtue of the said Amending Act contained a list of items on which tax
was not leviable. In the First Schedule, Entry No. 67, corresponding to the
earlier Entry No. 11, reads as follows :
"Petroleum products; that is to say; petrol, diesel, crude oil, lubricating
oil, transformer Oil, brake or clutch fluid, bitumen (asphalt), Tar and
others, but excluding aviation fuel, liquid petroleum gas (LPG), kerosene
and naphtha for use in the manufacture of fertilizers."
On 30th March, 1994, in exercise of the powers conferred by sub-section (1)
of Section 3, the Government of Karnataka by a notification specified
different rates of tax in respect of entry of goods into Karnataka. Items 4
and 5, which are relevant in the present cases, which were inserted by
reason of the said Notification were as follows :
"4. Petroleum products, that is to say Petrol, Diesel, Crude Oil,
Lubricating Oil, Transformer Oil, Brake or Clutch fluid, Bitumen (asphalt).
Tar and others but excluding Liquid Petroleum Gas; (LPG), Kerosene and
Naphtha for use in the manufacture of fertilisers.
...2 per cent
5. Furnace oil. ..,2 per cent"
On 28th June, 1996, the Division Bench of the Karnataka High Court allowed
the appeal of the State and set aside the decision of the Single Judge. The
Division Bench came to the conclusion that the aforesaid original Entry No.
11 and the corresponding Entry No. 67 of the First Schedule after amendment
in 1992 contemplated the inclusion of furnace oil in the said Entry and,
therefore, tax could be levied thereon. In these appeals, the challenge is
to the said decision.
Learned counsel for the appellants have contended that use of the words
"that is to say" both in original Entry No. 11 and in the new Entry No. 67
clearly indicated that the items mentioned therein were exhaustive. They
further submit that neither of these entries mentioned furnace oil. It is
contended by them that the words "and others" occurring in the said entries
only qualify the word "tar" which precedes the said words and, therefore,
furnace oil could not be brought under the category of "and others".
Reliance is also placed on the Notification dated 30th March, 1994 whereby
in the Table providing for the rates of tax a specified entry of furnace
oil was inserted, It was contended that in the case of ambiguity it is
possible for the Court to look at the subsequent legislation in order to
find out the legislative intent.
There can be no doubt that these entries, namely, original Entry No. 1.1
and the new Entry No, 67 were exhaustive. Learned counsel for the
appellants are, therefore, right in contending as such. We, however, do not
find any ambiguity in interpreting the said entries and, therefore, for
this purpose it is not necessary for the Court to be influenced by the
Notification of 30th March, 1994, the issuance of which can be easily
explained.
Both these entries (Nos. 11 and 67) mention "petroleum products" : Whereas
in Entry No. 11 the first words are "All petroleum products", the word
"All" is missing in the new Entry No, 67, This, however, Will not make any
material difference because petroleum products would clearly mean any type
of petroleum product. The use of the words "and others" would, in our
opinion, refers to petroleum products other than those which are
specifically mentioned therein. What is. however, important is that the
said entries specifically exclude aviation fuel, liquid petroleum gas,
kerosene arid Naphtha for use in the manufacture of fertilizers. If the
contention of the learned counsel for the appellants is correct that the
words "and others" would not enable the inclusion of furnace oil in the
said entries, then on the same parity of reasoning aviation fuel, liquid
petroleum gas, kerosene and naphtha would also have to be regarded as not
being included in the said entries and if this is so there was no need for
their specific exclusion. The very fact that there is an exclusion clause,
means that but for the said exclusion, aviation fuel, LPG, etc., would be
included in the said entries and as they are not specifically mentioned
they would be covered by reason of the words "and others."
The said entries further show that the legislature never intended to
exclude furnace oil from the levy of entry tax. Had the intention of the
legislature been to exclude furnace oil, which admittedly is a petroleum
product, then such an exclusion would have been indicated in the said entry
itself as has been done in the case of aviation fuel, LPG, kerosene and
naphtha for use in the manufacture of fertilizers. The aforesaid entries
are clear and unambiguous and clearly indicate the taxability of any type
of petroleum product except those which are specifically excluded by the
said entries.
Coming to the Notification of 30th March, 1994, it is quite obvious that as
on that day the judgment of the Single Judge in Indian Aluminium Co.’s case
held the field and as a result thereof the State was unable to impose entry
tax on the import of furnace oil into the State, The only way by which this
could have been done, pending the outcome of the letters patent appeal, was
to make a specific provision which it did by the said Notification of 30th
March, 1994, The entries being clear, the subsequent Notification of 30th
March, 1994, cannot be invoked for the purpose of creating ambiguity where
none exists.
For the aforesaid reasons, we are of the opinion that there is no merit in
these appeals. The same are, accordingly, dismissed.
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