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Yugal Kishore Sinha v. Nagendra Prasad Yadav .

Patna High Court
Jan 31, 1964
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Case Summary — Yugal Kishore Sinha (Appellant) v. Nagendra Prasad Yadav (Respondent)

Factual and Procedural Background

The appellant, Yugal Kishore Sinha, appealed under Section 116-A of the Representation of the People Act, 1951 against an order of the Election Tribunal, Darbhanga, which had dismissed his petition challenging the election of the respondent, Nagendra Prasad Yadav, to the Lok Sabha from the 12th Sitamarhi Parliamentary constituency (election declared 1 March 1962).

The appellant's Election Tribunal petition alleged two grounds of disqualification: (1) that the respondent in fact held, in benami through his wife Smt. Vidyabati Debi, a stage carriage permit (No. 190/60) to ply a bus on the Muzaffarpur–Sitamarhi–Sursand route, which was an "office of profit" under the State government making him disqualified under Article 102(1)(a) of the Constitution; and (2) that the respondent, as the real permit-holder, was obliged by the permit to carry mail for the Union Government and thus was disqualified under Section 7(d) of the Representation of the People Act, 1951 as substituted in 1958. The respondent denied these allegations.

The Tribunal rejected the appellant's contentions and dismissed the petition. The appellant appealed that dismissal to the court whose opinion is summarized here (Bahadur, J.; Misra, J. agreeing).

Legal Issues Presented

  1. Whether, on the evidence, the respondent was the real holder of the bus permit and owner of the bus business (i.e., whether the transactions were benami in favour of the respondent despite appearing in the name of his wife).
  2. Whether, if the respondent was the real permit-holder or connected with the contract to carry mail, he was disqualified from membership of the Lok Sabha under Article 102(1)(a) of the Constitution as holding an "office of profit" under the Government or under Section 7(d) of the Representation of the People Act, 1951 (as amended in 1958) for having a subsisting contract with the appropriate Government.

Arguments of the Parties

Appellant's Arguments

  • The permit and bus were in truth owned and controlled by the respondent though held in the name of his wife Smt. Vidyabati Debi; the wife was a name-lender (benami transaction).
  • The motive for taking the permit in the wife's name was to avoid disqualification from future elections to the Bihar Legislative Assembly or other political considerations (evidence of prior attempts to obtain a party ticket in 1952 and 1957). This supported an inference of benami ownership.
  • Documentary and signature evidence suggested the respondent forged or executed documents in his wife's name (submission about signatures and the names on challans), implying that the respondent was really operating the business.
  • If the respondent were the real permit-holder, the permit's terms required carriage of mail for the Union Government; that contractual connection meant the respondent had a subsisting contract with the appropriate Government for the carriage of mail and so was disqualified under Section 7(d) as amended and/or held an "office of profit" under Article 102(1)(a).
  • Reliance was placed on precedents and Privy Council decisions (various cases cited) to support presumptions of benami transactions or to argue the reach of Section 7(d) and the concept of "office of profit".

Respondent's Arguments

  • The respondent denied being the real permit-holder or owner of the bus business; the permit and all material documents were in his wife's name and the capital came from her.
  • Evidence relied upon by the appellant (handwriting witnesses, alleged oral admissions) was unreliable or inadequate to displace the presumption that the ostensible owner is the real owner.
  • The amended Section 7(d) (post-1958) should not be read to disqualify a person whose business merely carries mail; a contract to carry mail is not a "contract for the supply of goods" nor is it a contract "for the execution of works" as those terms are understood in Section 7(d).
  • A person holding a permit to ply a bus is not thereby holding an "office of profit under the Government" for purposes of Article 102(1)(a); the permit-holder does not satisfy the characteristics of an office under government control comparable to government companies or offices appointed and paid under government discretion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mt. Bilas Kunwar v. Desrai ??? Singh, AIR 1915 PC 96 Illustrates benami principle in purchases made in another's name; criterion to consider source of purchase money. Court held the principle did not apply to present facts; contrasted factual circumstances (e.g., occupancy and source of funds) and found the case distinguishable.
Dhurm Dass Pandey v. Mt. Shama Soondery Debiah, 3 Moo Ind App 229 (PC) Quoted statement: "The criterion in these cases in India is to consider from what source the money comes with which the purchase money is paid." Court quoted this principle as guidance on assessing benami claims (focus on source of funds) and applied it to the facts (found capital came from the wife).
Manada Sundari Debi v. Mahananda Sarnakar, 2 Cal WN 367 Authority for the proposition that there is no presumption in Hindu law that transactions in wife's name belong to husband; onus on challenger to prove benami. Cited to support the general rule that ostensible ownership stands unless contrary is proved; court relied on this line of authority when assessing onus of proof.
Bengal Coal Co. Ltd. v. Sita Ram Chatterjee, AIR 1935 Cal 666 Similar authority showing absence of presumption that wife's transactions belong to husband. Used with other authorities to underscore that the challenger must prove benami nature; aided court's conclusion that appellant failed to discharge onus.
Girija Kumari v. Kiran Chandra Bakshi, AIR 1947 Pat 471 Supports principle that no presumption exists that wife's transactions belong to husband. Cited as part of the body of authority validating the Tribunal's approach to onus and evidence.
Hari Ram v. Kundan Lal, AIR 1932 Lah 198 Another authority reinforcing the absence of presumption and the reliance on source of funds and surrounding circumstances. Relied upon, collectively with other cases, to confirm proper treatment of benami disputes and allocation of onus.
F.I.R Kerwick v. K.M Kerwick, 47 Ind App 275 : AIR 1921 PC 58 Privy Council decision cited by appellant to support benami inferences. Cited by appellant but the court did not consider it controlling for the facts; treated as not determinative here.
Chidambara Sivaprakasa Pandara Sannadhigal v. Veerama Reddi, 49 Ind App 256 : AIR 1922 PC 292 Privy Council authority relied on by appellant re benami principles. Cited by appellant but the court did not accept that these decisions dictated the result on the present facts.
N. Satyanathan v. K. Subramanayan, AIR 1955 SC 459 Interpreted earlier form of Section 7(d) (pre-amendment) and issues of disqualification under earlier wording. Court observed this case was under the old clause and thus did not support appellant's argument under the amended (1958) Section 7(d).
Ram Padarath Mahto v. Mishri Sinha, AIR 1961 SC 480 Authority referenced in discussion of Section 7(d) and related interpretation. Cited by parties but distinguished by the court on the basis of differing statutory language and issues; not treated as decisive here.
State Of Madras v. Gannon Dunkerley & Co., (Madras) Ltd, AIR 1958 SC 560 Supreme Court authority concerning government contracts and related legal principles. Cited in the context of distinguishing types of contracts and as background; court did not find it controlling for the present facts.
Satya Prakash v. Bashir Ahmad Qureshi, AIR 1963 Madh Pra 318 Held that a contract to transport postal articles/mail bags is not a "contract for the supply of goods" nor a contract for "execution of works" under amended Section 7(d); also held that for an office-of-profit disqualification the candidate himself must hold the office. Described by the court as the nearest decision on the facts. The court accepted its reasoning and applied it to hold Section 7(d) inapplicable to a transport contract and that carrying mail did not attract disqualification under Section 7(d) or Article 102(1)(a).
In re: T. Siddalingaiya, 7 Ele. LR 416 Authority for the proposition that "works" connotes something to be built or constructed, not merely something to be done. Used to interpret the word "works" in Section 7(d) and to support the conclusion that transport of mail is not "execution of works."
Ramnarain v. Ramchandra, AIR 1958 Bom 325 Illustrates that an "office of profit" may have a wide connotation but that being paid does not automatically make it an office under Government. Cited and distinguished; court noted that the case did not establish that any office of profit is an office under the Government for Article 102(1)(a) purposes.
Guru Govinda Basu v. Shankari Prasad Ghosal, AIR 1904 SC 254 (Gazette reference in text) Supreme Court decision concerning auditors of Government undertakings and whether such roles are offices under Government. Used to illustrate circumstances where service to government companies amounted to an office under Government; court distinguished present facts from those circumstances.
Abdul Sakur v. Rikhab Chand, 1958 SCR 387 : AIR 1958 SC 52 Identified factors indicative of an "office under the Government": (a) power of Government to appoint or revoke at discretion; (b) payment from government revenues (though payment source not always decisive). Court applied these criteria and found they were not satisfied in the present case — the respondent did not hold an office under the Government as required by Article 102(1)(a).

Court's Reasoning and Analysis

The court reviewed the Tribunal's factual findings and the evidence produced and undertook a two-part analysis corresponding to the two grounds of attack.

On the benami / ownership question:

  • The Tribunal had found that the permit (Ext. 8.a) was applied for by and issued to Vidyabati Debi and that key transactional documents (hire-purchase agreement, instalment receipts, permit-fee challans) were in her name. The court accepted these Tribunal findings as established by the record.
  • The court accepted the legal position that the ostensible owner (the person named in documents) is to be taken as the real owner until contrary is proved and that there is no presumption that property in a wife's name belongs to the husband; the onus lies on the challenger (appellant).
  • The appellant's suggested motive (respondent sought electoral advantage in earlier years and therefore may have caused the permit to be taken in wife's name) was considered insufficient on its own to justify inferring benami ownership.
  • The court examined the evidence regarding alleged forged signatures and found the handwriting witnesses (PWs 8, 11, 13) unreliable — each admitted lack of knowledge of Vidyabati's signature or that the signatures were not made in their presence; the court placed no reliance on their testimony.
  • The court considered documentary signature variations and the fact that some challans bore the respondent's name, but concluded that challans were often filled by clerks and that the column showing the person on whose behalf the money was paid was correctly filled in as Vidyabati's name. The court found appellant had failed to prove that Vidyabati's signatures were not hers.
  • The court accepted evidence of the manager (RW 17) that he looked after the business on behalf of Vidyabati and found nothing shown to cast doubt on his testimony.
  • Enforcement Officer and Magistrate evidence showed the respondent discussed buses in general but did not prove that he asserted ownership of the particular bus; the court considered such general statements insufficient and improbable if the respondent were secretly operating a benami business.
  • On balance, the court concluded that capital for the business came from Vidyabati herself; the respondent did what might be normally expected of a husband managing his wife's business but was not the real or ostensible permit-holder.

On the question of disqualification under Section 7(d) and Article 102(1)(a):

  • The court set out the present text of Article 102(1)(a) and the amended form of Section 7(d) (substituted in 1958) and compared the earlier and current wordings relevant to disqualification for contracts with the appropriate Government.
  • Interpreting Section 7(d), the court accepted the reasoning of the Madhya Pradesh decision in Satya Prakash v. Bashir Ahmad Qureshi (AIR 1963 Madh Pra 318) as the closest authority on the facts. Satya Prakash held that a contract to transport postal articles/mail bags is not a "contract for the supply of goods" because the carrier does not "supply" goods but merely transports them, and such a contract is not a contract for the "execution of works" (the plural "works" contemplates something to be built or constructed rather than mere services to be done). The court endorsed that approach and concluded that carriage of mails under a permit was not caught by Section 7(d).
  • The court further considered whether holding a permit to ply a bus could amount to holding an "office of profit" under the Government for Article 102(1)(a). After review of authorities, including decisions dealing with government companies and auditor roles, the court concluded that a permit-holder cannot be equated with someone holding an office under the Government. The court relied on established criteria (from Abdul Sakur and related authorities) that an office under the Government generally involves government appointment or control and payment from government revenues in a form indicating governmental appointment/tenure — features not present here.
  • The court also rejected the appellant's argument that the statutory nature of the Regional Transport Authority or Departmental appeal remedies converted a permit into an office under the Government. The court distinguished government-controlled companies and offices considered in the authorities from the statutory permit regime under the Motor Vehicles Act and concluded the permit-holder did not occupy an office under government for constitutional disqualification purposes.
  • Accordingly, neither Section 7(d) (as amended) nor Article 102(1)(a) applied to disqualify the respondent on the facts before the court.

Holding and Implications

Holding: The court concluded that the appellant failed to prove that the respondent was the real holder of the permit or that the business was in benami of the respondent. The court further held that, on the facts, neither Section 7(d) of the Representation of the People Act, 1951 (as amended in 1958) nor Article 102(1)(a) of the Constitution was attracted.

Core Ruling: Appeal dismissed.

Implications:

  • The Tribunal's dismissal of the appellant's petition is upheld; the respondent's election stands.
  • The appellant was ordered to pay costs (hearing fee Rs. 250/-). The court did not purport to lay down any novel or broad new principle beyond applying and distinguishing existing authorities; the decision is limited to the facts and statutory interpretation as applied to those facts.

Result reported in the opinion: "In the result, the appeal fails and is accordingly dismissed with cost; hearing fee Rs. 250/-. Misra, J. agreed. Appeal dismissed."

Show all summary ...

Bahadur, J.:— This is an appeal under Section 116-A of the Representation of the People Act, 1951, (hereinafter to be referred to as the Act) by Yugal Kishore Sinha, who was the petitioner before the Election Tribunal Darbhanga, and had asked it to declare the election of the respondent, Nagendra Prasad Yadav, to the Lok Sabha from the 12th Sitamarhi Parliamentary constituency as void.

2. Besides the appellant and the respondent there were five other candidates, who had filed nomination papers to fill the said seat and the respondent was declared elected from the above mentioned constituency on the 1st March, 1962. The appellant thereafter submitted a petition before the Election Tribunal challenging the election of the respondent on two grounds. The first ground was that the respondent held benami in the name of his wife Smt. Vidyabati Debi a stage carriage permit No. 190/60 under the North Bihar Regional Transport Authority for plying a bus on Muzaffarpur-Sitamarhi-Sursand route. It was said that this was “an office of profit” under the State Government and since the respondent was the real holder of the said office he was disqualified to be a member of the Lok Sabha under Article 102(1)(a) of the Constitution of India. The second ground was that as the respondent was the real permit holder, he was, according to the terms of the contract embodied in the said permit, to carry mail for the Union Government and as such was also disqualified to be a member of the Lok Sabha under Section 7(d) of the Act. On these grounds the appellant prayed that the election of the respondent be declared void. The respondent denied that he held an “office of profit” under the State of Bihar or that he was disqualified to be a member of the Lok Sabha under Section 7(d) of the Act.

3. The Tribunal rejected the contentions of the appellant and accordingly dismissed his petition. It is against this order of the Tribunal that the present appeal has been filed by the appellant.

4. Mr. Ranen Roy who has appeared to the appellant, has pressed these two contentions before us as regards the first contention, he has urged that the Tribunal was in error to holding that the real owner of the bus business was Smt. Vidyabati Debi, wife of the respondent. He has submitted two points which arise for consideration though they overlap each other. They are (i) whether the respondent was the real permit holder and owner of the bus and his wife Vidyabati Debi was merely a name lender and (ii) whether the respondent was actually running the bus business on behalf of his wife.

5. Learned counsel frankly conceded that the approach of the Tribunal on the question of onus was correct in that, the ostensible owner must be taken to be the real owner until contrary is proved and that there is no presumption in law that with stands in the name of the wife belongs to the husband. He, however, urged that the appellant had satisfactorily discharged the said onus and the Tribunal had failed to appreciate the evidence on the record it will, therefore, be convenient to deal with the points in the order that he has raised them.

6. The Tribunal found that the permit (Ext. 8.a) was applied for by Vidyabati Debi, wife of the respondent, and it was issued in her name vide Ext. 4. The agreement relating to the purchase of the bus on hire purchase system (Ext. 9), the receipts showing payments of the instalments, (Ext. 19 series), the challans showing deposit of permit fees (Exts. 6 series) and all the material documents relating to the transaction are in the name of the wife of the respondent. Learned counsel submitted that the motive for the benami transaction was that the respondent had applied for a Congress ticket for the election to the Legislative Assembly in 1952 as well as in 1957 though he failed to obtain the Congress ticket on those two occasions. The respondent has not denied this fact. The application for the bus permit (Ext. 8.a) was made in September, 1658. It was suggested on behalf of the appellant that since the respondent was anxious to be elected as a member of the Bihar State Legislative Assembly from 1952 he must have taken the precaution to take the permit in the name of his wife in order to avoid the risk of being disqualified for election to the assembly in case he was able to obtain a Congress ticket in future it is not possible to hold that the motive suggested by the appellant would be sufficient to Justify the inference that the bus business was in the benami of his wife. It would thus be necessary to examine the evidence on the point of the source from which the capital of the bus business was derived and the various other circumstances attaching to it (After considering the evidence (Paras 7 to 12) his Lordship proceeded:)

7. For the reasons stated above I must hold that the Tribunal came to the right conclusion that the capital for the business was supplied by Vidyabati herself and not by her husband the respondent.

8. The next point urged on behalf of the appellant was the manner in which the permit for running a bus was obtained which showed that it was obtained by the respondent himself in benami of his wife. In this connection it was submitted that the respondent was forging the signature of his wife, inasmuch as the signature “Bidyu Bati Debi” (Ext. 8) appearing in the application for permit (Ext. 8.a) was in the pen of the respondent. The evidence on this point consists of P.Ws 8, 11 and 13 Rabindra Tiwary (P.W 8) claimed to know the hand-writing of the respondent both in English and Hindi. He admitted in his cross-examination that he did not know the signature of Vidyabati and it was only by guess that he stated that the signature (Ext. 8) was not in her pen. He admitted that the signature in question was not made in his presence. Mukti Nath Jha (PW 11), a pleaders clerk, stated that the signature of Vidyabati on the application to the Transport Authority was in the pen of the respondent. He however, admitted in cross-examination that he could not identify the signature of Vidyabati as also the date under it. He stated that the contents of the said application were in the handwriting of the respondent Similarly. Ramji Jha (PW 13) stated that Ext. 11 was in the pen of the respondent in cross-examination he also admitted that he never had any correspondence with the respondent nor did the latter ever execute any document in his presence. He further admitted that he did not know the hand-writing of Vidyabati Having perused and considered the evidence of these three witnesses I am of the view that no reliance can be placed on their evidence.

9. Learned counsel drew our attention to the pleader Commissioner's note dated the 6th February, 1963, appearing at page 186 of the paper book to show that Vidyabati was asked by the appellant's lawyer to sign her deposition both in English and Hindi at the conclusion of her evidence before the pleader commissioner. It appears that she signed it only in Hindi. The order of the pleader commissioner has been supplied to us in course of the hearing of the appeal. The pleader commissioner for the reasons given by him refused to recall Vidyabati, who had already left for her home in Sitamarhi Sub-division and accordingly rejected the prayer I am unable to draw any inference from Vidyabati's refusal to sign in English it was further urged that Vidyabati's signatures on Exts. 12 and 13, receipt dated the 10th May, 1960, granted to Dhingra for the sale of the bus to her and the information conveyed to the Superintendent of Police on the date of the said sale, were different from the signature on Ext. 8.a. It was also submitted that the Challans (Ext. 6 series) showing the deposit of various fees and taxes under the Motor Vehicles Act bore the name of ‘Nagendra Prasad’ and only one had the name of Vidyabati it was, therefore, urged that there could be no doubt that the application (Ext. 8.a) was not signed by Vidyabati and that the name on the challan showed the name of the real owner in my opinion, the appellant has failed to establish that the signatures of Vidyabati were not her signatures. As for or the names on the challans they were filled in by persons who tender the money and such persons are usually clerks or other persons looking after the affairs of those persons on whose behalf the money is paid Besides the column showing the person on whose behalf the money has to be paid has been correctly filled in and in each rasp it is Vidyabati's name.

10. The next point raised by learned counsel was that purchase by a husband in his wife's name would be presumed to be benami Reliance was placed on the decision of Mt. Bilas Kunwar v. Desrai ??? Singh, AIR 1915 PC 96 in support of his submissions. In my opinion, the principle decided in this case has no application to the facts of the present case. In that case a person purchased a bungalow in the name of his mistress but allowed his wife to stay therein. The mistress never lived in the bungalow, which was all along in the wife's possession. It was held by the Privy Council that the purchase was benami and the mistress had no title thereto. Their Lordships relied on the observations of Lord Campbell in Dhurm Dass Pandey v. Mt. Shama Soondery Debiah, 3 Moo Ind App 229 (PC) which run as follows:—

“The criterion in these cases in India is to consider from what source the money comes with which the purchase money is paid”

11. There is now a considerable body of authority that there is no presumption in Hindu Law that transactions standing in the name of a wife are the husband's transactions and the onus lies on the other side to make out that the transaction was benami See for instance Manada Sundari Debi v. Mahananda Sarnakar, 2 Cal WN 367, Bengal Coal Co. Ltd. v. Sita Ram Chatterjee AIR 1935 Cal 666, Girija Kumari v. Kiran Chandra Bakshi AIR 1947 Pat 471 and Hari Ram v. Kundan Lal, AIR 1932 Lah 198 (1). It is also now well settled that the determination of the question must depend net merely upon the direct oral evidence but on amongst others, the circumstances such as the source of the purchase money it was urged on behalf of the appellant that the question of onus was merely academic in this case and reliance was placed on two decisions of the Privy Council in F.I.R Kerwick v. K.M Kerwick 47 Ind App 275 : (AIR 1921 PC 58) and in Chidambara Sivaprakasa Pandara Sannadhigal v. Veerama Reddi, 49 Ind App 256 : (AIR 1922 PC 292).

12. Before I allude to the other ground of attack I must refer to one more point raised on behalf of the appellant on the question of benami. It was submitted, as was also submitted before the Tribunal, that the respondent had been making oral assertions at various places and occasions that the bus business was his. In this connection our attention was drawn to paragraph 14 of the judgment of the Tribunal and the same comments were made in this Court also. I am in agreement with the finding of the Tribunal that there is no reliable evidence on the record to show that the respondent ever asserted the bus business to be his it is also against probability that even if the respondent was running the bus business in the name of his wife in order to avoid any possible risk of being disqualified in the election, he would be openly giving out that he was the real owner of the bus.

13. In this connection it was contended on behalf of the appellant that the evidence of the Manager of the bus business Shama Saran (RW 17) to the effect that he looked after the bus business on behalf of Vidyabati could not be accepted Nothing has been shewn to cast any doubt on his testimony and I have no hesitation in accepting his evidence. It was further urged that the evidence of the Enforcement Officer. (PW 2) showed that the respondent was the real owner of the bus. I am not prepared to accept this argument for the simple reason that the evidence of the Enforcement Officer (P.W 2) and the Magistrate (P.W 1) only showed that the respondent merely spoke about the buses in general and not about any particular bus at the time of magisterial checking. Further there could be nothing wrong for the respondent to take interest in the matter of the bus business on behalf of his wife, who was the owner of the bus on a careful consideration of the facts and circumstances of this case I am of the view that the appellant failed to establish that the respondent was the real holder of the permit or that he was running the bus business in the benami of his wife I am satisfied that the capital of the business was derived from Vidyabati and the respondent did nothing more than what was normally expected from a husband in the management of his wife's business.

14. I shall now deal with the second ground. The way in which learned counsel for the appellant put his case is this. He submitted that if the respondent was the permit-holder of the bus he would be disqualified to be a candidate?or the election to the Lok Sabha within the meaning of Article 102(1)(a) of the Constitution and Section 7(d) of the Act.

15. Article 102(1)(a) of the Constitution of India reads as follows:—

“(1) A person shall be disqualified for being chosen as and for being, a member of either House of Parliament—

(a) if he holds any office of profit under the Government of India or the Government of any State, other than an office declared by Parliament by law not to disqualify its holder

16. Section 7(d) of the Act, which was substituted by Act 58 of 1958 reads as follows:

“A person shall be disqualified to being chosen as, and for being, a member of either House of Parliament or of the Legislative Assembly or Legislative Council of a State—

(d) if there subsists a contract entered into in the course of his trade or business by him with the appropriate Government for the supply of goods to, or for the execution of any works undertaken by, that Government”

17. Before that this section read thus:—

(d) if, whether by himself or by any person or body of person in trust for him or for his benefit or on his account, he has any share or interest in a contract for the supply of goods to, or for the execution of works or the performance of any service undertaken by the appropriate Government”.

18. The contention raised on behalf of the appellant is that in the present case an election to the Lok Sabha is in question and the “appropriate Government” is the Government of India of the Union Government and one of the terms contained in the bus permit is for carrying of mail bags and this being the Union Government undertaking fee provisions of Section 7(d) of the Act were clearly attracted. Learned counsel for the respondent, on the other hand, contended that under the existing provision, which is applicable to the present case, no disqualification was incurred. He further submitted that the position might have been different before the substitution of the provision of Section 7(d) of the Act in 1958. The argument of learned counsel for the appellant doe; not seem to be correct. He relied on the decision of N. Satyanathan v. K. Subramanayan, (S) AIR 1955 SC 459. This case does not support the contention put forward on behalf of the appellant as it was a decision under the old clause before the amendment but the words “performance of any service” have now been omitted in the existing clause (d) of Section 7 of the Act it was further contended that under the existing provision a person would be disqualified if he has a subsisting contract for supply of goods to, or for the execution of works undertaken by, the appropriate Gov eminent. It was urged that a permit to ply a bus was a contract for supply of goods and was clearly “a contract for supply of goods or for the execution of works” The argument is attractive but this carries us hardly any distance at all. The word “works” in sub-section (d) connotes something to be built or constructed and not something to be done See the case In re: T. Siddalingaiya. 7 Ele. LR 416.

19. A large number of decisions were cited of the Bar by both sides but it is unnecessary to pile up authorities. The nearest decision on the facts of the present case is of Satya Prakash v. Bashir Ahmad Qureshi, AIR 1963 Madh Pra 318 where the amended Section 7(d) of the Act was under consideration. In that case an objection was raised that the respondent's nomination for election to the House of People (Lok Sabha) was not valid because he was a share-holder in a Transport Company which had entered into a contract with the Central Government to carry postal mail bags and articles on the remuneration mentioned in the contract and was thus disqualified for membership of Parliament under Section 7(d) of the Act. Their Lordships held that a contract by which a person only undertakes the transport of postal articles and mail bags could not be said to be a contract for the supply of goods. The expression supply of goods' implies furnishing something that is wanted and hence when a carrier is asked to collect and transport postal articles and mail bags from the place and to deliver them to persons entitled to receive them, the carrier is not fulfilling any want of the sender or the receiver in respect of the goads collected, carried and delivered; in such a case the supply of goods if at all any may be by the send to the receiver but certainly not by the transport agency Further their Lordships held that such a contract was not even a contract in execution of any works undertaken by the Government concerned as contemplated by Section 7(d). The use of the plural word “works” indicates that what was contemplated by the section was the carrying out of something to be built or constructed and not merely something to be done, which a contract of transport of postal articles and mail bags undoubtedly was. Their Lordships distinguished the decisions reported in (S) AIR 1955 SC 459, Ram Padarath Mahto v. Mishri Sinha, AIR 1961 SC 480 and State Of Madras v. Gannon Dunkerley & Co., (Madras) Ltd, AIR 1958 SC 560. In the same case their Lordships further held that for the operation of the disqualification of the holding of an office of profit under the Government the essential requirement was that the candidate himself must hold the office. In my judgment, the aforesaid Madhya Pradesh decision clearly lays down the true legal position it is, therefore, unnecessary to deal with the contentions raised on behalf of the appellant that carrying of mails was a contract and as such the respondent was disqualified within the meaning of Section 7(d) of the Act.

20. Learned counsel toi the appellant then put his case in another way. He submitted that operating of a bus service under a permit granted by the Government could be taken to be holding an ‘office of profit’ under the Government A number of decisions were referred to show that the word office was capable of various meanings and was very wide in its connotation. Reliance was placed on the case of Ramnarain v. Ramchandra, AIR 1958 Bom 325 and another decision of the Supreme Court in the case of Guru Govinda Basu v. Shankari Prasad Ghosal, published in the Gazette of India. D/- 14-9-1903 Part II, Section 3, sub-section (1) at page 3082 (reported in AIR 1904 SC 254) In the Bombay case the question arising and decided was that the salary paid to the member made the office of the member of the Legislative Council as an office of profit. But it was not an office of profit under the Government and therefore that case is no authority for the proposition that any office of profit is equivalent to in office of profit under the Government in the other case decided by the Supreme Court the question was whether a person, who was a chartered accountant and a partner of the firm of auditors was holder of offices of profit under the Government it was not disputed that the appellant of that case was an auditor of various Companies, such as, the Durgapur Projects Ltd. and the Hindustan Steel Ltd. which were Government undertakings. The Supreme Court accordingly held that the appellant was an auditor of the Government Companies and as such held office of profit under the Government of India within the meaning of Article 102(1)(a) of the Constitution. This case is clearly distinguishable from the present case. In the above case the Supreme Court refined to the decision in the case of Abdul Sakur v. Rikhab Chand, 1958 SCR 387 : (AIR 1958 SC 52) and observed that the factors, which were held to be derisive, were (a) the power of the Government to appoint a person to an office of profit or to continue him in that office or to revoke his appointment at their discretion, and (b) payment from out of Government revenues, though it was pointed out that payment from a source other than the Government revenues was not always a decisive factor in the present case, none of the two criteria can be said to apply it has not been proved that the respondent held an office ‘under the Government’ It is obvious that the ‘element of profit’ is not enough by itself in other words, it must first be proved that what was held was an office’ I am of the view that a person, who holds a permit to ply a bus can by no means be said to be the holder of an office under the Government. As I have already said, the case decided by the Madhya Pradesh High Court which is the nearest to the point on the facts of this case, would seem to conclude the matter.

21. It was in my opinion, rightly contended on behalf of the respondent that one of the essential characteristics of an ‘office’ under the Government cannot be in benami, as a permit for plying a bus could be held in benami but the holder or such permit could not be said to hold an office under the Government. There were several comments made by learned counsel or the appellant on this aspect by placing before us various sections of the Motor Vehicles Act in order to show that the Regional Transport Authority was an authority created by the Government to perform certain duties under the supervision of the Government and an appeal lay departmentally against the Transport Authority's orders to the Minister. It was, therefore, contended that what was done by the Transport Authority was under the control of the Government and as such was in the same position as the Government controlled Companies, which were the subject-matter of consideration in the aforesaid Supreme Court case published in the Gazette of India I am not prepared to accept this argument as correct for the simple reason, as I have stated earlier, that in the Supreme Court case it was not in controversy that the two companies were Government controlled companies within the meaning of the Indian Companies Act. In the present case, on the authorities referred to above it is not enough that a person, who holds an ‘office of profit’ must necessarily also be said to hold an ‘office of profit’ under the Government, in the present case bus permit has been issued by the Transport Authority which is a statutory body consisting of both official and nonofficial members appointed under the Motor Vehicles Act. The point appears to be concluded by the decision of the Supreme Court referred to earlier in Abdur Sakur's case, 1938 SCR 387 : (AIR 1958 SC 52).

22. For the reasons stated above, in my judgment, the respondent was not the real or ostensible permit holder of the bus nor a real or ostensible owner of the bus business. He was, therefore, not a person holding an ‘office of profit’ under the Government at the time of his election. In such circumstances the provisions of Section 7(d) of the Act or Article 102(1)(a) of the Constitution are not attracted to the facts of this case no other point was pressed before me.

23. In the result, the appeal fails and is accordingly dismissed with cost; hearing fee Rs. 250/-.

Misra, J.:— I agree.

HH/G.M.J

24. Appeal dismissed.