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The Ambala Bus Syndicate Private Ltd. v. State And Others

Punjab & Haryana High Court
Jun 1, 1962
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Judgment Summary — Dua, J.

Factual and Procedural Background

The Ambala Bus Syndicate Private Ltd. (the petitioner) applied under Article 226 of the Constitution to quash an order dated 1 June 1961 of the Secretary to Government, Punjab, Transport Department, which reviewed earlier orders (including those of his predecessor) and remanded the matter to the Appellate Authority. The petitioner also sought a writ in the nature of mandamus directing respondents to act according to law and a prohibition restraining the Prescribed Appellate Authority (Respondent No. 4) from rehearing an appeal that the petitioner contended had already been finally disposed of according to law.

Background facts as set out in the petition: the petitioner operates passenger bus services in Ambala District on routes including Kharar–Ambala via Banur and Sirhind–Rupar via Morinda and Korali. Messrs Patiala Bus Service (Respondent No. 5) applied for a fresh permit for the Chuni-Machhli–Kharar route but approached the Regional Transport Authority, Patiala, and the Authority treated the application as an extension of an existing route without publication or inviting applications; the petitioner alleged it was not given notice and was not heard. The Patiala Authority granted the extension; the petitioner appealed to the Provincial Transport Controller who set aside the Patiala Authority's order, holding jurisdiction for that extension to be confined to the Regional Transport Authority, Ambala. Respondent No. 5 pursued revision under section 64(h) of the Motor Vehicles Act (as amended) which was dismissed by Shri R.S. Talwar on 24 May 1960; a subsequent revision/review petition filed after change of Secretary was also dismissed by Shri Prem Sarup on 16 September 1960. Respondent No. 5's writ petition to this Court (Civil Writ No. 1136 of 1960) was dismissed on 18 July 1960.

Despite earlier dismissals of the revision/review applications, it is alleged that the Secretary (by the impugned order of 1 June 1961) again heard the parties and remanded the matter to the Appellate Authority. The petitioner alleged that this exercise of review power was illegal, arbitrary, mala fide and without jurisdiction.

Legal Issues Presented

  1. Whether the Secretary's exercise of power to review or recall earlier decisions (as embodied in the 1 June 1961 order remanding the matter to the Appellate Authority) was lawful and within jurisdiction.
  2. Whether tribunals or quasi-judicial authorities (in particular those constituted under the Motor Vehicles Act) possess an inherent power to review or recall their own orders in the absence of statutory provision conferring such power.
  3. Whether the Full Bench decision in Jagir Singh Sobha Singh etc. v. Settlement Commissioner (A.I.R. 1959 Punj. 457) and the other authorities relied upon by respondents establish a broad inherent power of review applicable to the present facts.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended that the Secretary's review/remand order of 1 June 1961 was illegal, arbitrary, mala fide and beyond jurisdiction.
  • The petitioner relied on authorities (including Rameshwar Sinha v. State of Bihar; Ramnath Parshad v. State Transport Appellate Authority; Ananiram Ayaldas v. Damodardas; Sampu Gowda Hanume Gowda v. State of Mysore; Ramchandra Maradaraj Deo Garu v. Beero Pollai; Anantharaju Shetty v. Appu Hegade) to the effect that a power of review is not inherent in a court or authority and cannot be assumed in the absence of statutory provision; tribunals under the Motor Vehicles Act do not possess an inherent power to review their orders.
  • It was submitted that once an authority has exercised its function and made a decision it becomes functus officio, except for correcting clerical or similar errors for which the authority is responsible.

Respondents' Arguments

  • The respondents relied primarily on the Full Bench decision in Jagir Singh Sobha Singh etc. v. Settlement Commissioner (A.I.R. 1959 Punj. 457), arguing that it establishes the general proposition that every tribunal has an inherent power to recall its wrong orders and to correct its own errors, irrespective of time limits or the grounds of error.
  • The respondents also cited earlier decisions relied upon in the Full Bench (for example, Aijaz Ahmad v. Nazirul Hasan and Assistant Custodian Evacuee Property v. Ratan Chand) and two unreported Single Bench decisions (Shivalak Transport Co. Ltd. v. Secretary to Government, Punjab, Transport Department — Civil Writ No. 511 of 1960; and Shrimati Morni Devi v. The State of Punjab — Civil Writ No. 825 of 1958) to support the view that tribunals under the Motor Vehicles Act have inherent review power.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jagir Singh Sobha Singh etc. v. Settlement Commissioner, Pepsu etc. (A.I.R. 1959 Punj. 457) Held (as relied upon by respondents) that every tribunal has inherent power to recall its wrong orders and correct its own errors; such power is implied in the setting up of an authority responsible for decisions. The Court construes this Full Bench decision narrowly, holding that its real decision concerned ignoring an order that was ultra vires and legally without jurisdiction; the Court is doubtful that it supports a broad proposition that all quasi-judicial tribunals have an unlimited inherent power to vary final orders on the merits.
Aijaz Ahmad v. Nazirul Hasan (A.I.R. 1935 All. 868) Cited before the Full Bench in support of the proposition that an authority may correct an invalid order. The Court notes it as one of the decisions relied upon by the Full Bench; it is referenced in support of limited corrective power for invalid/ultra vires orders rather than an unlimited review power.
Assistant Custodian Evacuee Property v. Ratan Chand (1953 55 P.L.R. 336) Cited before the Full Bench for support of recall/correction of invalid orders. Noted by the Court as one of the authorities relied upon by the Full Bench; used to illustrate that recall of invalid or unjust orders has been recognized in some contexts.
Shivalak Transport Co. Ltd. v. Secretary to Government, Punjab, Transport Department, etc. (Civil Writ No. 511 of 1960 — unreported) Single Bench decision, after the Full Bench, accepting inherent power of review by tribunals under the Motor Vehicles Act (as argued by respondents). The Court records this unreported Single Bench authority relied upon by respondents but does not adopt it; the Court expresses doubt and declines to refer the broader question to a larger Bench in the present case.
Shrimati Morni Devi v. The State of Punjab etc. (Civil Writ No. 825 of 1958 — unreported) Single Bench decision cited as supporting inherent review power in tribunals. The Court notes this authority but does not treat it as decisive for the broad proposition urged by respondents.
Rameshwar Sinha etc. v. State of Bihar (Division Bench) Held that no authority or court can claim by implication a power to revise its own order; review power is a matter of statute and cannot be assumed; specifically concerned with the Motor Vehicles Act and negated inherent review power of Regional Transport Authority. The Court cites and accepts this view as contrary to the broad proposition relied on by respondents; it supports the petitioner's contention that review power is not inherent in tribunals absent statutory provision.
Ramnath Parshad v. State Transport Appellate Authority (A.I.R. 1957 Patna 117) Affirms that power of review is not inherent in any authority; once a decision is made the authority becomes functus officio except for correcting clerical or obvious mistakes. The Court relies on this authority as supporting the principle that an inherent power of review cannot be assumed and is limited to clerical or similar corrections.
Ananiram Ayaldas etc. v. Damodardas etc. (A.I.R. 1956 Vindhya Pra. 44) Holds that a right of review is not inherent and does not exist unless granted by statute; concerned with tribunals under the Motor Vehicles Act. The Court cites this as authority negating inherent review power in tribunals under the Motor Vehicles Act.
Sampu Gowda Hanume Gowda, etc. v. State of Mysore (A.I.R. 1953 Mysore 156) Full Bench decision holding that jurisdiction/power to review cannot be assumed or imported in absence of a specific provision or conditions for its exercise. The Court records and relies on this Full Bench authority as supporting the petitioner's position that review power cannot be assumed without statutory basis.
Ramchandra Maradaraj Deo Garu v. Beero Pollai etc. (A.I.R. 1936 Mad. 531) Full Bench decision holding that a court has no power to review unless such power is specially conferred. Relied upon by the petitioner and noted by the Court as authority that review is not inherent and must be conferred by statute.
Anantharaju Shetty v. Appu Hegade (A.I.R. 1919 Mad. — citation as in text) Earlier Madras decision holding that power to review is not inherent in a court and can only be exercised if permitted by statute. Noted by the Court as an earlier authority supporting the view that review is not an inherent power.
Debi Bakhsh Singh v. Habib Shah (I.L.R. 35 All. 331) Example (noted in the opinion) of correction of clerical or inadvertent mistakes falling within inherent power. The Court accepts that correction of clerical or accidental mistakes may fall within an inherent power but distinguishes such corrections from an unduly broad power to vary final determinations on the merits.
re Komaraswami (referenced without full citation) Referenced as an example where mistakes inadvertently made might be corrected under inherent power. Used illustratively by the Court to show the limited category of corrections that may be permissible under inherent power (clerical slips, inadvertent errors), not to justify broad review on merits.

Court's Reasoning and Analysis

The Court analyzed the competing authorities and focused on the proper construction and limits of any purported inherent power of tribunals to review or recall their own orders.

Key steps of the Court's reasoning:

  1. The Court examined the Full Bench decision in Jagir Singh Sobha Singh and observed that the precise question there was whether an order made by the Revenue Minister acting as State Government could be subsequently cancelled by the State Government. The impugned order in that case was described in the judgment as an order to "ignore" an order that was found to be ultra vires and without jurisdiction.
  2. The Court concluded that the real decision in the Full Bench case was confined to the proposition that ultra vires or jurisdictionally invalid orders are nullities and may legitimately be ignored or recalled; any general observations in the Full Bench judgment must be read in the context of that narrower issue.
  3. The Court distinguished between (a) orders that are ultra vires/without jurisdiction (which are nullities and can be ignored at any time) and (b) valid orders that become final, where permitting tribunals to vary such orders on merits whenever they later consider them wrong would undermine finality and the doctrine of res judicata.
  4. The Court accepted that correction of clerical, arithmetical, or inadvertent mistakes (illustrated by authorities such as Debi Bakhsh Singh and re Komaraswami) may fall within an inherent corrective power, but emphasized that such limited corrections are distinct from permitting wholesale re-evaluation of merits or disturbing final determinations.
  5. The Court considered the unreported Single Bench decisions relied upon by respondents but expressed reluctance to adopt a sweeping doctrine from them without a more suitable case; the Court noted the ordinary practice of following Single Bench decisions but said it would not refer the matter to a larger Bench in the present case because the petitioner was not shown to suffer grave or manifest injustice.
  6. The Court observed that in the present case the Secretary had merely remanded the matter to the Appellate Authority for reconsideration; since the matter had not been finally decided by the Appellate Authority on the remand and there was no demonstrated grave or serious manifest injustice, the Court found it inappropriate to exercise its discretionary power to grant a prerogative writ at this stage.

In short: the Court adopted a restrained approach — recognising limited corrective powers for clerical or jurisdictionally void orders, but resisting a broad rule that would allow tribunals to revisit final decisions on the merits in the absence of statutory authority.

Holding and Implications

Holding:

Petition dismissed. The writ petition under Article 226 was dismissed and no order as to costs was made.

Implications and consequences:

  • The immediate practical effect is that the petitioner's challenge to the Secretary's 1 June 1961 order (which remanded the matter to the Appellate Authority) was unsuccessful and the remand stands for further consideration by the Appellate Authority.
  • The Court refused to grant relief by way of prerogative writ because the matter had not been finally determined on the remand and no grave or manifest injustice had been shown at this stage; the Court indicated that once a final decision is made the aggrieved party will have adequate opportunity to seek relief in accordance with law.
  • The Court did not pronounce a definitive, wide-ranging rule that all tribunals possess an inherent power to review their own orders. It constrained the scope of Jagir Singh Sobha Singh to situations involving invalid or ultra vires orders and accepted that only limited corrective actions (clerical slips, accidental mistakes, or nullities) fall within any implied power. The broader question whether tribunals under the Motor Vehicles Act possess an inherent power to review was left open for determination in a more suitable case.
  • The decision does not establish a new broad precedent authorizing unfettered review by quasi-judicial tribunals; rather, it emphasizes finality of orders and reserves the issue for future consideration when presented with an appropriate case.
Petition dismissed.
Show all summary ...

Dua, J.:— The Ambala Bus Syndicate Private Ltd. has applied under Article 226 of the Constitution for quashing the order of the Secretary to Government, Punjab, Transport Department dated 1st of June 1961, whereby he reviewed his earlier order as also that of his predecessor. A writ in the nature of mandamus has also been prayed for directing the respondents to do their duty according to law and the Prescribed Appellate Authority (Respondent No. 4) is similarly sought to be prohibited by this Court from hearing the appeal again which has been finally disposed of according to law.

2. The allegations on which this petition is based are that the petitioner-company is operating efficient passenger bus service on various routes in Ambala District, including—

(i) Kharar-Ambala via Banur; and

(ii) Sirhind-Rupar via Morinda and Korali.

The company was incorporated in 1943 under the scheme of rationalization, the promoters and shareholders being all old transport operators engaged in transport business for a large number of years. Messrs Patiala Bus Service (Private) Ltd. (respondent No. 5) which operates on routes within the jurisdiction of the Regional Transport Authority, Patiala, decided to obtain a fresh pernk for Chuni Machhli Kharar route, about 95 per cent of which falls within the jurisdiction of the Regional Transport Authority, Ambala. But instead of a plying to the Regional Transport Authority, concerned, it approached the Patiala Authority and the said Authority entertained the application treating it as an application for extensien of the existing route of the respondent-company. No publication was effected and no applications were invited for grant of fresh permits on this route. The petitioner company was also given no information. On the 22nd of June 1958 when the matter was taken up in the meeting of the Patiala Authority, the petitioner having come to know of the agenda appeared before the Authority and raised objections. They were, however, not heard by the Authority concerned and the respondent-company was allowed the extension of Sirhind-Chuni-Machhli route up to Kharar, as prayed. The petitioner went up in appeal to the Provincial Transport Controller, but he did not hear the appeal on merits, as he should have done; on the other hand he informed the petitioner that the matter of the grant of extension on the route in question would be laid before the State Transport Authority on the 3rd of September, 1958, at Chandigarh. The Managing Director of the petitioner-company appeared before the State Transport Authority presided over by the Provincial Transport Controller, who was also the Prescribed Appellate Authority. The petitioner submitted its objections, but no decision thereon was ever communicated by the State Transport Authority to the petitioner. The Regional Transport Authority, Patiala, however, took up the matter after the alleged approval of the State Transport Authority and on behalf of the petitioner-company objections were filed but the State Transport Authority did not hear the same on the excuse that the State Transport Authority had already made the decision. It is averred in the writ petition that the Regional Transport Authority did not bring to bear its independent mind on the consideration of the question of grant of fresh permits which was wrongly and illegally described to be an extension of route.

3. The petitioner-company, however, preferred an appeal from the order of the Regional Transport Authority, Patiala, dated the 3rd of January, 1959, granting extension of the route permit to respondent No. 5. This appeal was heard by the Provincial Transport Controller who allowed it holding that the jurisdiction for grant of extension was confined only to the Regional Transport Authority Ambala. The impugned order of the Patiala Authority was thus set aside. Respondent No. 5 took the matter on revision under section 64(h), Motor Vehicles Act, as amended in this State, but the said revision was dismissed by Shri R.S Talwar on the 24th of May, 1960. Respondent No. 5 is then said to have filed a revision petition describing it both as revision/review and this was done after Shri Talwar had handed over charge of his duties as Secretary, Transport Department, and was succeeded by Shri Prem Sarup, I.A.S The petitioner described this revision/review petition to be wholly incompetent and Shri Prem Sarup also dismissed it on the 16th of September, 1960. A writ petition filed by respondent No. 5 in this Court (Civil Writ No. 1136 of 1960) was also dismissed on the 18th of July, 1960.

4. The Secretary, Transport Department, in spite of having first dismissed review petition, it is alleged, again heard the parties and this time remanded the case to the Appellate Authority on the 1st of June, 1961. By means of this order, it is alleged, the Secretary not only reviewed the previous order of his predecessor dismissing the revision petition on the 24th of May, 1960, but also reviewed his own order dated the 16th of September, 1960, refusing to review the order of his predecessor. This exercise of the power of review is assailed in the present proceedings and is described to be wholly illegal, arbitrary, mala fide and without jurisdiction. On behalf of the respondent this order has, however, been sought to be upheld on the basis of a Full Bench authority of this Court in Jagir Singh Sobha Singh etc. v. Settlement Commissioner, Pepsu etc. . A.I.R 1959 Punj. 457.. This authority, it is argued, lays down the general and broad proposition that every tribunal has inherent power to recall its wrong orders and, according to the respondent, it is so irrespective of tune limit or of the grounds of error which is sought to be rectified. Dulat J., who prepared the main judgment in the reported case, observed that every tribunal has inherent power to correct its own errors if circumstances make it necessary in the interest of justice and that such inherent power is necessarily implied in the setting up of any authority on whom responsibility of deciding any matter rests. If a tribunal, and for that matter any other legal authority, decides to recall an order on the ground that it is invalid the act of recall cannot, according to Dulat J., be quashed merely on the ground that no such recall is permitted by any express provision of a statute. The State in the reported case (it was not a court) was held not debarred from recalling an invalid or unjust and erroneous order made by it previously. Reliance has also been placed on the decisions cited before the Full Bench for the view canvassed e.g, Aijaz Ahmad v. Nazirul Hasan . A.I.R 1935 All. 868., and Assistant Custodian Evacuee Property v. Ratan Chand . 1953 55 P.L.R 336.. Two unreported Single Bench decisions, after the Full Bench decision, have also been quoted in support of this view: Shivalak Transport Co. Ltd. v. Secretary to Government, Punjab, Transport Department, etc. . Civil Writ No. 511 of 1960., (Civil Writ No. 511 of 1960 decided by Bishan Narain J. on the 8th of December, 1960) and Shrimati Morni Devi v. The State of Punjab etc. . Civil Writ No. 825 of 1958., (Civil Writ No. 825 of 1958 decided by Grover J. on the 1st of May, 1959).

5. As against these, the petitioner has cited Rameshwar Sinha etc. v. State of Bihar, etc.,6, where a Division Bench of that Court ruled that no authority or Court can claim by implication a power to revise its own order and it is purely a question of statute in absence of which there cannot be a valid review of orders. That case dealt with Motor Vehicles Act and negatived the claim of power to review made on behalf of Regional Transport Authority. Ramnath Parshad v. State Transport Appellate Authority . A.I.R 1957 Patna 117., also lays down the same principle. It was observed to be well settled that a power of review is not inherent in any authority and that the moment a right to decide is exercised the authority becomes functus officio, except for the matter of grave clerical error, or mistakes committed by the authority, for which the authority is responsible. Except for correcting its own mistakes there can be no inherent power to review apart from the statute Ananiram Ayaldas etc. v. Damodardas etc. . A.I.R 1956 Vindhya Pra. 44., also lays down that a right of review is not inherent and it does not exist unless granted by statute. This case also is concerned with Motor Vehicles Act and inherent power of review was negatived in the case of tribunals under this Act. Sampu Gowda Hanume Gowda, etc. v. State of Mysore, etc. . A.I.R 1953 Mysore 156., is also a Full Bench decision holding that jurisdiction or power to review cannot be assumed or imported in the absence of any specific provision therefor or of even indication of the conditions for the exercise of it. Ramchandra Maradaraj Deo Garu v. Beero Pollai, etc. . A.I.R 1936 Mad. 531., is another Full Bench decision in which again it is held that a Court has no power to review unless specially conferred on it. An earlier decision of the Madras Court in Anantharaju Shetty v. Appu Hegade . A.I.R 1919 Mad. ???., also held that the power to review is not inherent in a Court and can only be exercised if it is permitted by statute. The counsel has in this connection questioned the correctness of the Full Bench decision and has submitted that it requires re-examination.

6. Now in the Full Bench case the question referred for authoritative decision by the Full Bench was—

“Whether an order made by the Revenue Minister acting as the State Government could be subsequently cancelled by the State Government?”

Here it is necessary to State that the order actually impugned as invalid in that case so far as is relevant for our purposes reads as follows:—

“* * * * that it has been decided that ex-Revenue Minister's order, dated 13th February, 1953, being legally without jurisdiction and ultra vires, be ignored and no repartition need be done de novo.”

It is obvious that by means of this order all that was decided was to ignore an ultra vires order which was considered to be without jurisdiction and the Full Bench while deciding the true controversy before it put its opinion thus—

“In the present case before us we are not going into the facts, nor investigating the circumstances which might or might not ultimately justify the recall by the State Government of its previous decision. That is a matter for the learned Single Judge to decide after he has obtained all necessary information. We are at present only considering learned counsel's broad proposition that the State Government could have in no circumstance recalled its previous order and on that ground a one the act of the State Government should be quashed.”

This in my view represents the real decision and if in the course of the judgment some general observations have been made they must, in my view, be construed in their own context and in the background of the precise question arising for determination.

7. Orders which are ultra vires and without jurisdiction are ordinarily cosidered as nullities and can, therefore, legitimately be ignored; they need not be cancelled or formally recalled by means of a review petition. It is fairly well-settled that when an order is without jurisdiction, it is never too late to give effect to the plea that it is a nullity. But orders which are not so vitiated do become final and to permit all such orders to be varied or reversed on the merits whenever a quasi-judicial tribunal or Court chooses to do so would, in my opinion, be too sweeping a proposition to canvass and uphold. I am, therefore, extremely doubtful if the Full Bench decision is truly an authority for such a wide proposition of such far-reaching consequences. The brief discussion before the Court in that case, so far as it is possible to discern from the judgment, also suggests that it was perhaps not intended to uphold the existence of an inherent power in all quasi-judicial tribunals to vary on the merits all quasi-judicial orders without regard to time and without adverting to the nature of the error or infirmity attaching to those orders. Such a proposition might also come into conflict with the settled rule which attaches finality to orders. Correction of accidental slips or omissions or clerical or arithmetical mistakes or mistakes inadvertently made like the one found to exist in Debi Bakhsh Singh v. Habib Shah . I.L.R 35 All. 331., or in re Komaraswami13, might well fall within the inherent power of Courts and quasi judicial tribunals. It is one thing to say that clerical or accidental mistakes and errors may be corrected under inherent power, or ultra vires and wholly invalid orders which are without jurisdiction and, therefore, nullities, should be ignored or recalled or orders tainted with similar infirmities may be set right: it is quite another thing to throw over-board the established doctrine of res judicata. Against this, our judicial and quasi-judicial tribunals must carefully guard, and how-over tempting the considerations of administrative convenience in a given case of hardship, they are expected to resist the temptation and firmly decline to yield by assuming in themselves any inherent power to vary the final determinations, merely because they may be later shown to be wrong or unjust in some respect, for, otherwise there would be no finality to litigation and controversies and no solemnity of judgments and determinations. The respondent has, however, relying on the two un-reported Single Bench decisions mentioned above, argued that I should follow those decisions, and hold that the Tribunals under the Motor Vehicles Act do possess an inherent power of review. It is true that I should ordinarily follow Single Bench decisions and that in case I do not agree with the view taken therein I should refer the matter to a larger Bench. That is a healthy and a wholesome practice deserving of adoption and indeed is adopted by the Courts in this country. In the present case, however, I am inclined to take the view that the petitioner is not entitled to a high prerogative writ because of there being no grave of serious manifest injustice in the matter, with the result that I do not find called upon to refer the matter to a larger Bench for considering the question of the inherent power of review vesting in the tribunals under the Motor Vehicles Act. The question will perhaps have to be considered in a more suitable case when the point arises for direct determination. In the case in hand the matter having been merely remanded back to the Appellate Authority for considering the whole matter over again, I do not think the is any occasion for the exercise of the discretionary power of granting a prerogative writ. Bishan Narain J. in Civil Writ No. 511 of 1930 also declined to interfere on the ground that the matter had not been decided finally. Let the question be finally determined, and then the aggrieved party would have sufficient opportunity of having relief against the offending decision in accordance with law.

8. For the foregoing reasons this writ petition fails and is hereby dismissed, but with no order as to costs.

Petition dismissed.