AMICUS AI
Citation Codes
Neutral Citations
1995 INSC 836
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 32 of the Constitution
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Cites
Cited by
Citation Codes
Neutral Citations
1995 INSC 836
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 32 of the Constitution
Smart Summary

Factual and Procedural Background

Civil Appeals Nos. 4708-4712 of 1989 (Khoday Distilleries Ltd. v. State of Karnataka) were decided by a Constitution Bench of the Supreme Court on 19-10-1994; the judgment is reported in (1995) 1 SCC 574. Dissatisfied, the appellants filed Review Petitions Nos. 507-511 of 1995. By order dated 25-04-1995 the Court allowed all parties to lodge supplementary written submissions and reserved the question of oral hearing. After examining those submissions, the Court rejected the review petitions on 08-08-1995, stating that all arguments had already been addressed in the main judgment.

The present writ petition under Article 32 of the Constitution was filed after the dismissal of the review petitions. The petition seeks to reopen the earlier judgment on grounds of alleged denial of natural justice.

Legal Issues Presented

  1. Whether the earlier civil appeals were decided on merits without affording the parties an oral hearing, thereby violating principles of natural justice.
  2. Whether Article 32 can be invoked to reopen or seek reconsideration of a final judgment of the Supreme Court on the basis of the decision in A.R. Antulay v. R.S. Nayak.

Arguments of the Parties

Petitioners' Arguments

  • The civil appeals were listed before the Constitution Bench only “for directions” and were nevertheless disposed of on merits without a substantive hearing.
  • Consequently, the judgment reported in (1995) 1 SCC 574 is void for violation of natural justice.
  • Reliance is placed on A.R. Antulay v. R.S. Nayak (1988) 2 SCC 602 to contend that this Court can, in an Article 32 proceeding, correct such an error.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Khoday Distilleries Ltd. v. State of Karnataka (1995) 1 SCC 574 Final judgment whose validity was being challenged The Court reaffirmed that all issues had been considered in this decision and that it had attained finality.
A.R. Antulay v. R.S. Nayak (1988) 2 SCC 602, 1988 Supp (1) SCR 1 Peculiar circumstance where Supreme Court revisited a prior order because it had conferred jurisdiction contrary to statute Held inapplicable; distinguished as fact-specific and not authority for reopening final judgments under Article 32.
Krishna Swami v. Union of India (1992) 4 SCC 605 Clarified that Antulay is confined to its unique facts Quoted to reinforce that Antulay cannot be treated as a precedent for general reopening of final judgments.
Abdul Rehman Antulay v. Union of India (1984) 3 SCR 482 (referenced at (1988) 2 SCC 602 at 764) Supreme Court’s own refusal to entertain an Article 32 petition challenging its earlier decision Cited to demonstrate that the proper remedy against a final judgment lies in review, not a fresh writ petition.

Court's Reasoning and Analysis

Justice J.S. Verma, writing for the Bench, found no factual basis for the allegation that the civil appeals were decided without a hearing. The orders of 25-04-1995 and 08-08-1995 show that:

  • Parties were invited to file supplementary written submissions emphasising any additional arguments on merits.
  • The Court examined those submissions while deciding the review petitions and expressly noted that every point had already been answered in the original judgment.

The Court then addressed the reliance on A.R. Antulay v. R.S. Nayak:

  • Antulay turned on “peculiar circumstances” involving an order that conferred jurisdiction contrary to statute.
  • A Constitution Bench in Krishna Swami v. Union of India had already confined Antulay to its facts.
  • Even in Antulay, a writ petition under Article 32 challenging the earlier judgment was dismissed; relief came in a later statutory appeal, not through Article 32.

Accordingly, Article 32 cannot be employed to seek a re-hearing of issues finally settled by the Supreme Court. Frequent invocation of Antulay for such purpose was described as “wholly misconceived.”

Holding and Implications

The writ petition is dismissed.

Immediate effect: the judgment in Khoday Distilleries remains intact and binding. Broader implication: the Court reiterates the limited and fact-specific nature of A.R. Antulay and affirms that Article 32 is not a vehicle for reopening final Supreme Court decisions, thereby reinforcing the principle of finality of judgments rather than setting a new precedent.

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    Khoday Distilleries Ltd. v. Registrar General, Supreme Court Of India

    J.S Verma, J.— This writ petition is a sequel of Civil Appeals Nos. 4708-4712 of 1989, Khoday Distilleries Ltd. v. State of Karnataka (1995) 1 SCC 574 and the connected matters which were decided on 19-10-1994. That judgment is reported in (1995) 1 SCC 574. After that decision, Review Petitions Nos. 507-511 of 1995 were filed. The order dated 25-4-1995 made in those review petitions is as under:

    “One of the grounds taken for the prayer made to hear oral arguments before deciding the review petitions is that there was no opportunity to supplement the written submission filed before the Bench of three Judges and that the same could not be supplemented before the Constitution Bench. Accordingly, we permit the filing of supplementary written submissions, if any, by the parties mentioning therein and emphasising the additional submissions, if any on which reliance is sought to be placed. The supplementary written submissions, if any, be filed by the parties within four weeks. The prayer made for hearing oral arguments on the review petitions would then be considered. The matters be listed in Chambers thereafter.”

    2. After the supplementary written submissions had been filed by the parties, the review petitions were rejected by order dated 8-8-1995 as under:

    “We have perused the grounds on which a review of the order is sought. We had by our order dated 25-4-1995 permitted the filing of supplementary written submissions by the parties and had stated that they should clearly emphasise the additional submissions, if any, on which reliance is sought to be placed. We had also stated that the prayer for hearing oral arguments would then be considered. Pursuant to the said order the written submissions have been filed and we have perused the same. Having perused the same we find that the submissions made therein have all been answered in the judgment sought to be reviewed. We have not noticed any submission on which we would like to hear oral arguments by counsel. Since we do not find any merit in the additional supplementary submissions filed in these proceedings we do not entertain the review petitions and reject them.”

    3. The present writ petition under Article 32 has been filed by the petitioners after the rejection of their review petitions as above.

    4. The submissions of Shri G. Ramaswamy, learned counsel for the petitioners are two:

    (1) The above civil appeals were listed before the Constitution Bench only for directions and were not heard on merits before they were decided on merits; and
    (2) The judgment rendered in the civil appeals reported in Khoday Distilleries Ltd. v. State of Karnataka (1995) 1 SCC 574, is invalid on the ground of violation of principles of natural justice.

    Reliance is placed on the decision in A.R Antulay v. R.S Nayak (1988) 2 SCC 602, 1988 Supp (1) SCR 1 in support of these submissions. In substance, the argument of the learned counsel for the petitioners is that the civil appeals having been decided on merits without being heard on merits, the judgment rendered therein is invalid for violation of principles of natural justice. In our opinion, there is no merit in this submission.

    5. The foundation for the argument advanced in support of the writ petition does not exist. The above-quoted orders dated 25-4-1995 and 8-8-1995 clearly show that even after the decision of the civil appeals, the petitioners were permitted to file supplementary written submissions, if any, emphasising the additional submissions, if any, on which reliance was sought to be placed on the merits; and the supplementary written submissions filed by the parties were also considered while deciding the review petitions. In the order rejecting the review petitions, it was clearly mentioned that all the submissions made by the parties had been answered in the judgment sought to be reviewed. The decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 has no application. The attempt made by this writ petition for reconsideration of the decision by the Constitution Bench in Khoday Distilleries (1995) 1 SCC 574 has no merit and reliance placed on the decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 on the facts of this case is misplaced.

    6. In view of the strong reliance placed by the learned counsel for the petitioners on the decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 to invoke Article 32 of the Constitution for reconsideration of the aforesaid judgment deciding the civil appeals, we consider it appropriate to indicate that Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 does not hold that a decision of this Court after attaining finality can be reopened under Article 32. The decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 must be confined to the peculiar circumstances of that case as indicated in that judgment itself. The decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 was distinguished and confined to the facts of that case by a Constitution Bench in Krishna Swami v. Union of India (1992) 4 SCC 605, as under:

    “… Antulay case (1988) 2 SCC 602, 1988 Supp (1) SCR 1 is also distinguishable for the reason that therein the result of the earlier decision against him challenged by Antulay in the petition under Article 32 had the effect of conferring jurisdiction on a Court contrary to the specific statutory provision …. Moreover, judgment of Mishra, J. as well as that of Mukharji, J. as their Lordships were then, give a clear indication that the decision therein was not intended to be a precedent and was confined to the peculiar facts and circumstances of that case. This distinction is sufficient to hold that Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 does not permit these petitioners to claim reconsideration of the earlier decision in these circumstances.”

    7. It is clear that the decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 is based on the peculiar facts of that case wherein the question involved was of the conferment of jurisdiction on a court contrary to the specific statutory provision. In a case like the present, where in substance the challenge is to the correctness of a decision on merits after it has become final, there can be no question of invoking Article 32 of the Constitution to claim reconsideration of the decision on the basis of its effect in accordance with law. Frequent resort to the decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 in such situations is wholly misconceived and impels us to emphasise this fact.

    8. Moreover, it may also be observed that even in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1, the writ petition under Article 32 filed by him to challenge the decision of this Court was dismissed and it was only in an appeal filed subsequently by Antulay against an order of the Bombay High Court made during the trial that the relief was granted to Antulay. While dismissing the writ petition under Article 32 of the Constitution filed by Antulay, in Abdul Rehman Antulay v. Union of India (1988) 2 SCC 602 at 764, (1984) 3 SCR 482 this Court observed as under:

    “In my view, the writ petition challenging the validity of the order and judgment passed by this Court as nullity or otherwise incorrect cannot be entertained. I wish to make it clear that the dismissal of this writ petition will not prejudice the right of the petitioner, to approach the Court with an appropriate review petition or to file any other application which he may be entitled in law to file.”

    9. These undisputed facts appear from the decision in Antulay (1988) 2 SCC 602, 1988 Supp (1) SCR 1 itself on which reliance has been placed by the learned counsel for the petitioners.

    10. Consequently, the writ petition has no merit and it is dismissed, accordingly.

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    Khoday Distilleries Ltd. v. Registrar General, Supreme Court Of India
    (Dec 5, 1995)