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State Of Karnataka And Others v. S.M Kotrayya And Others

Supreme Court Of India
Sep 2, 1996
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Factual and Procedural Background

The respondents, teachers employed by the Karnataka Department of Education, drew Leave Travel Concession (LTC) allowances for the period 1981-82 without actually utilising the benefit. Between 1984 and 1986 the State Government recovered the improperly drawn amounts. Some similarly situated employees had earlier approached the Karnataka Administrative Tribunal, which in August 1989 held that the Government could not effect such recoveries. Upon learning of that favourable decision, the present respondents, who had not joined the earlier litigation, filed separate applications before the Tribunal in August 1989 accompanied by a request to condone delay. The Tribunal condoned the delay and granted relief. The State of Karnataka filed the current appeals by special leave against that order.

Legal Issues Presented

  1. Whether, under Section 21 of the Administrative Tribunals Act, 1985, the Tribunal possesses power to condone delay when applicants provide no explanation for filing beyond the limitation periods prescribed in sub-sections (1) and (2).
  2. Whether the Constitution Bench decision in S.S. Rathore v. State of Madhya Pradesh (1989) 4 SCC 582 bars the Tribunal from condoning such delay.

Arguments of the Parties

Appellant’s Arguments

  • Invoking S.S. Rathore v. State of Madhya Pradesh, counsel contended that Section 21(2) fixes an outer limit of six months for grievances predating the Tribunal’s establishment, and that beyond this period the Tribunal lacks jurisdiction to condone delay absent a satisfactory explanation.
  • Because the respondents offered no explanation for not approaching the Tribunal within the statutory timeframe, their applications were barred.

Respondents’ Position

The respondents did not appear; however, their applications before the Tribunal had asserted that they acted promptly upon discovering the earlier favourable order.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
S.S. Rathore v. State of Madhya Pradesh, (1989) 4 SCC 582 Interpretation of limitation provisions in Section 21 of the Administrative Tribunals Act and interaction with general limitation law. The Court distinguished the case, noting that S.S. Rathore concerned exclusion of time when suits were transferred, not the Tribunal’s power to condone delay under Section 21(3).

Court's Reasoning and Analysis

The Court conducted a textual analysis of Section 21. It observed:

  • Sub-section (1) fixes a one-year limitation for grievances covered by clauses (a) and (b).
  • Sub-section (2) extends the right to apply within the same one-year period or, in specified pre-Tribunal situations, within six months of the Tribunal’s coming into force—whichever is later.
  • Applicants filing within those periods need not furnish any explanation; the right to approach the Tribunal is statutory.
  • Sub-section (3) begins with a non-obstante clause, empowering the Tribunal to admit applications filed after the periods in sub-sections (1) and (2) only if “sufficient cause” for the additional delay is demonstrated.

Applying these principles, the Court found that the respondents filed their applications after the outer limits prescribed by sub-sections (1) and (2). Consequently, they were obliged to explain the delay. Their sole explanation—that they acted upon learning of a favourable Tribunal decision in August 1989—did not address why they failed to pursue their grievance within the statutory period. The Tribunal therefore erred in condoning the delay.

Holding and Implications

Appeals Allowed; Tribunal’s order set aside.

The Supreme Court reinstated the Government’s recovery of LTC amounts and refused condonation of delay. The ruling clarifies that:

  • Applicants enjoy an unqualified right to file within the limitation periods in Section 21(1) and (2) but must provide a satisfactory explanation for any delay beyond those periods.
  • The decision in S.S. Rathore does not restrict the Tribunal’s power to condone delay; rather, Section 21(3) governs that discretion.

The judgment imposes a stricter standard for condonation of delay before Administrative Tribunals, though it sets no new precedent beyond interpreting Section 21.

Show all summary ...

Order

1. Delay condoned.

2. Leave granted.

3. At the outset, we express our deep appreciation for the valuable assistance rendered by Shri D.V Sehgal, learned Senior Counsel who appeared as amicus curiae at our request since the respondents did not appear either in person or through counsel.

4. These appeals by special leave arise from the common order of the Karnataka Administrative Tribunal, dated 14-8-1989 made in Applications Nos. 4134-45 of 1989. The admitted facts are that the respondents, while working as teachers in the Department of Education, availed of Leave Travel Concession during the year 1981-82. But later it transpired that they had never utilised the benefit of LTC but drew the amount and used it. Consequently, recovery came to be made in the year 1984-86. Some of the persons filed applications in the Tribunal questioning the power of the Government to recover the same. It would appear that thereafter in August 1989 the Tribunal allowed similar claims and had held that the appellant-Government could not recover the same from the respondents. On coming to know of it, the respondents filed applications in August 1989 before the Tribunal with an application to condone the delay. The Tribunal has condoned the delay by the impugned order. Thus these appeals by special leave.

5. Shri Veerappa, the learned counsel for the appellant, placing reliance on the judgment of a Constitution Bench of this Court in S.S Rathore v. State of M.P. (1989) 4 SCC 582, (1989) 11 ATC 913 (SCC at p. 591, para 21), contended that the Tribunal has no power to condone the delay if the respondents had not given any explanation why they could not file the application within six months and if they came to be filed beyond six months covered by sub-section (2) of Section 21 of the Administrative Tribunals Act, 1985 (for short, “the Act”), the Tribunal has no power to condone the delay. We find no force in the contention.

6. Section 21 reads as under:

“21. Limitation.—(1) A Tribunal shall not admit an application,—
(a) in a case where a final order such as is mentioned in clause (a) of sub-section (2) of Section 20 has been made in connection with the grievance unless the application is made, within one year from the date on which such final order has been made;
(b) in a case where an appeal or representation such as is mentioned in clause (b) of sub-section (2) of Section 20 has been made and a period of six months had expired thereafter without such final order having been made, within one year from the date of expiry of the said period of six months.
(2) Notwithstanding anything contained in sub-section (1), where—
(a) the grievance in respect of which an application is made had arisen by reason of any order made at any time during the period of three years immediately preceding the date on which the jurisdiction, powers and authority of the Tribunal becomes exercisable under this Act in respect of the matter to which such order relates; and
(b) no proceedings for the redressal of such grievance had been commenced before the said date before any High Court,
the application shall be entertained by the Tribunal if it is made within the period referred to in clause (a), or, as the case may be, clause (b), of sub-section (1) or within a period of six months from the said date, whichever period expires later.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), an application may be admitted after the period of one year specified in clause (a) or clause (b) of sub-section (1) or, as the case may be, the period of six months specified in sub-section (2), if the applicant satisfies the Tribunal that they had sufficient cause for not making the application within such period.”
(emphasis supplied)

7. A reading of the said section would indicate that sub-section (1) of Section 21 provides for limitation for redressal of the grievances in clauses (a) and (b) and specifies the period of one year. Sub-section (2) amplifies the limitation of one year in respect of grievances covered under clauses (a) and (b) and an outer limit of six months in respect of grievances covered by sub-section (2) is provided. Sub-section (3) postulates that notwithstanding anything contained in sub-section (1) or sub-section (2), if the applicants satisfy the Tribunal that they had sufficient cause for not making the applications within such period enumerated in sub-sections (1) and (2) from the date of application, the Tribunal has been given power to condone the delay, on satisfying itself that the applicants have satisfactorily explained the delay in filing the applications for redressal of their grievances. When sub-section (2) has given power (sic right) for making applications within one year of the grievances covered under clauses (a) and (b) of sub-section (1) and within the outer limit of six months in respect of the grievances covered under sub-section (2), there is no need for the applicant to give any explanation to the delay having occurred during that period. They are entitled, as a matter of right, to invoke the jurisdiction of the court for redressal of their grievances. If the applications come to be filed beyond that period, then the need to give satisfactory explanation for the delay caused till date of filing of the application must be given and then the question of satisfaction of the Tribunal in that behalf would arise. Sub-section (3) starts with a non obstante clause which rubs out the effect of sub-section (2) of Section 21 and the need thereby arises to give satisfactory explanation for the delay which occasioned after the expiry of the period prescribed in sub-sections (1) and (2) thereof.

8. The decision of the Constitution Bench in S.S Rathore case (1989) 4 SCC 582, (1989) 11 ATC 913 has no application to the facts in this case. Therein, this Court was concerned with the question whether the total period of six months covered under sub-section (3) had to be excluded in filing the petition in the suit, when it was transferred to the Tribunal under the Administrative Tribunal Order. In that behalf, the Constitution Bench held that a suit under a civil court's jurisdiction is governed by Article 58 of the Limitation Act, 1963 and the claims for redressal of the grievances are governed by Article 21 of the Act. The question whether the Tribunal has power to condone the delay after the expiry of the period prescribed in sub-sections (1) and (2) of Section 21, did not arise for consideration in that case.

9. Thus considered, we hold that it is not necessary that the respondents should give an explanation for the delay which occasioned for the period mentioned in sub-sections (1) or (2) of Section 21, but they should give explanation for the delay which occasioned after the expiry of the aforesaid respective period applicable to the appropriate case and the Tribunal should be required to satisfy itself whether the explanation offered was proper explanation. In this case, the explanation offered was that they came to know of the relief granted by the Tribunal in August 1989 and that they filed the petition immediately thereafter. That is not a proper explanation at all. What was required of them to explain under sub-sections (1) and (2) was as to why they could not avail of the remedy of redressal of their grievances before the expiry of the period prescribed under sub-section (1) or (2). That was not the explanation given. Therefore, the Tribunal is wholly unjustified in condoning the delay.

10. The appeals are accordingly allowed. The order of the Tribunal is set aside. No order as to costs.