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2011 INSC 191
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2011 INSC 191
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • statute or the Constitution
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 136 of the Constitution of India
Smart Summary

Factual and Procedural Background

The appellant’s writ petition was dismissed by the High Court of Andhra Pradesh on 19-6-2001. A Special Leave Petition (SLP) challenging that judgment was filed in the Supreme Court and was dismissed on 17-9-2001 by a non-speaking (“The special leave petition is dismissed”) order. The appellant thereafter filed a review petition in the High Court, but with a delay of 71 days. By judgment dated 28-1-2005, the High Court refused to condone the delay and consequently dismissed both the application for condonation and the review petition. The present civil appeal challenges that High Court order.

Legal Issues Presented

  1. Whether the High Court ought to have adopted a liberal approach and condoned the 71-day delay in filing the review petition.
  2. Whether a review petition in the High Court is maintainable after this Court has dismissed an SLP against the original judgment without assigning reasons, in light of the doctrine of merger.

Arguments of the Parties

Respondent’s Arguments

  • The review petition was not maintainable because the High Court’s judgment had merged into the Supreme Court’s order dismissing the SLP; therefore, no High Court judgment survived for review.
  • Relied on K. Rajamouli v. A.V.K.N. Swamy (2001) 5 SCC 37 to contend that filing a review petition after dismissal of the SLP constitutes an “affront” to the Supreme Court’s order.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kunhayammed v. State of Kerala (2000) 6 SCC 359 Doctrine of merger where SLP is dismissed with reasons. Followed; used to explain that merger occurs only when reasons, however brief, accompany dismissal of SLP.
S. Shanmugavel Nadar v. State of T.N. (2002) 8 SCC 361 Same principle on merger after reasoned dismissal of SLP. Relied upon to reinforce distinction between reasoned and unreasoned dismissal.
State of Manipur v. Thingujam Brojen Meetei (1996) 9 SCC 29; AIR 1996 SC 2124 Further authority on merger doctrine. Cited in support of the above proposition.
U.P. SRTC v. Omaditya Verma (2005) 4 SCC 424; AIR 2005 SC 2250 Illustration of merger principles. Cited similarly.
K. Rajamouli v. A.V.K.N. Swamy (2001) 5 SCC 37 Distinction between review filed before or after dismissal of SLP. Distinguished; Court held that the observations relied on were “mere stray observations” and not a binding precedent.
Abbai Maligai Partnership Firm v. K. Santhakumaran (1998) 7 SCC 386 Potential abuse where review is filed after SLP dismissal. Referenced in Rajamouli; Court found it inapplicable on the present facts.

Court's Reasoning and Analysis

Condonation of Delay: The Supreme Court held that a liberal approach should be adopted; a 71-day delay is not substantial and ought to have been condoned by the High Court.

Maintainability of Review Petition:

  • The key question is whether the High Court judgment merged into the Supreme Court’s order dismissing the SLP.
  • If an SLP is dismissed with reasons, the doctrine of merger applies and the High Court judgment ceases to exist, precluding review.
  • Where an SLP is dismissed without any reasons, no merger occurs because the Court’s reasons for dismissal are unknown; therefore, the High Court judgment survives and can be reviewed, albeit only for errors apparent on the face of the record.
  • The Court rejected the respondent’s reliance on paragraph 4 of Rajamouli, describing the remark that filing such a review would be an “affront” as a non-precedential “stray observation.”
  • The Court affirmed that statutory or constitutional powers of review cannot be curtailed by judicial dicta.

Holding and Implications

Appeal Allowed. The Supreme Court set aside the High Court’s order, condoned the 71-day delay, and remanded the matter to the High Court to decide the review petition on merits expeditiously.

Implications: The decision clarifies that:

  • Dismissal of an SLP without reasons does not attract the doctrine of merger, thereby keeping open the avenue of review in the High Court.
  • Courts should adopt a liberal approach toward modest delays in seeking review.
No broader precedent on substantive rights was created beyond reaffirming existing merger principles and the scope of review jurisdiction.

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    Gangadhara Palo v. Revenue Divisional Officer And Another

    Order

    1. Heard the learned counsel for the parties. This appeal has been filed against the impugned judgment/order dated 28-1-2005 passed by the High Court of Andhra Pradesh at Hyderabad. By that order, the review petition as well as the application for condonation of delay in filing the review petition have been dismissed.

    2. The delay was only of 71 days and, in our opinion, a liberal view should have been taken by the High Court and delay of 71 days in filing the review petition should have been condoned and the review petition should have been decided on merits. Hence, we condone the delay of 71 days in filing the review petition before the High Court.

    3. As regards the maintainability of the review petition, Mr Sanjay Kapur, learned counsel for the respondent submitted that it was not maintainable because against the main judgment of the High Court dated 19-6-2001 dismissing the writ petition of the appellant herein, the appellant herein filed a special leave petition in this Court which was dismissed on 17-9-2001.

    4. The aforesaid order of this Court dismissing the special leave petition simply states “The special leave petition is dismissed”. Thus, this order gives no reasons. In support of his submission, the learned counsel for the respondent has relied upon a decision of this Court in K. Rajamouli v. A.V.K.N Swamy (2001) 5 SCC 37 and has submitted that there is a distinction between a case where the review petition was filed in the High Court before the dismissal of the special leave petition by this Court, and a case where the review petition was filed after the dismissal of the special leave petition by this Court.

    5. We regret, we cannot agree. In our opinion, it will make no difference whether the review petition was filed in the High Court before the dismissal of the special leave petition or after the dismissal of the special leave petition. The important question really is whether the judgment of the High Court has merged into the judgment of this Court by the doctrine of merger or not.

    6. When this Court dismisses a special leave petition by giving some reasons, however meagre (it can be even of just one sentence), there will be a merger of the judgment of the High Court into the order of the Supreme Court dismissing the special leave petition. According to the doctrine of merger, the judgment of the lower court merges into the judgment of the higher court. Hence, if some reasons, however meagre, are given by this Court while dismissing the special leave petition, then by the doctrine of merger, the judgment of the High Court merges into the judgment of this Court and after merger there is no judgment of the High Court. Hence, obviously, there can be no review of a judgment which does not even exist.

    7. The situation is totally different where a special leave petition is dismissed without giving any reasons whatsoever. It is well settled that special leave under Article 136 of the Constitution of India is a discretionary remedy, and hence a special leave petition can be dismissed for a variety of reasons and not necessarily on merits. We cannot say what was in the mind of the Court while dismissing the special leave petition without giving any reasons. Hence, when a special leave petition is dismissed without giving any reasons, there is no merger of the judgment of the High Court with the order of this Court. Hence, the judgment of the High Court can be reviewed since it continues to exist, though the scope of the review petition is limited to errors apparent on the face of the record. If, on the other hand, a special leave petition is dismissed with reasons, however meagre (it can be even of just one sentence), there is a merger of the judgment of the High Court in the order of the Supreme Court. (See the decisions of this Court in Kunhayammed v. State of Kerala (2000) 6 SCC 359, S. Shanmugavel Nadar v. State of T.N (2002) 8 SCC 361, JT (2002) 7 SC 568, State of Manipur v. Thingujam Brojen Meetei (1996) 9 SCC 29, AIR 1996 SC 2124 and U.P SRTC v. Omaditya Verma (2005) 4 SCC 424, AIR 2005 SC 2250.)

    8. A judgment which continues to exist can obviously be reviewed, though of course the scope of the review is limited to errors apparent on the face of the record but it cannot be said that the review petition is not maintainable at all.

    9. The learned counsel for the respondent Mr Sanjay Kapur has, however, invited our attention to para 4 of the judgment of this Court in K. Rajamouli (2001) 5 SCC 37, wherein it was observed:

    “4. Following the decision in Kunhayammed (2000) 6 SCC 359 we are of the view that the dismissal of the special leave petition against the main judgment of the High Court would not constitute res judicata when a special leave petition is filed against the order passed in the review petition provided the review petition was filed prior to filing of special leave petition against the main judgment of the High Court. The position would be different where after dismissal of the special leave petition against the main judgment a party files a review petition after a long delay on the ground that the party was prosecuting remedy by way of special leave petition. In such a situation the filing of review would be an abuse of the process of the law. We are in agreement with the view taken in Abbai Maligai Partnership Firm (1998) 7 SCC 386 that if the High Court allows the review petition filed after the special leave petition was dismissed after condoning the delay, it would be treated as an affront to the order of the Supreme Court. But this is not the case here. In the present case, the review petition was filed well within time and since the review petition was not being decided by the High Court, the appellant filed the special leave petition against the main judgment of the High Court. We, therefore, overrule the preliminary objection of the counsel for the respondent and hold that this appeal arising out of special leave petition is maintainable.”
    (emphasis supplied)

    10. We have carefully perused SCC para 4 of the aforesaid judgment. What has been observed therein is that if the review petition is filed in the High Court after the dismissal of the special leave petition, “it would be treated as an affront to the order of the Supreme Court”. In our opinion, the above observations cannot be treated as a precedent at all. We are not afraid of affronts. What has to be seen is whether a legal principle is laid down or not. It is totally irrelevant whether we have been affronted or not.

    11. A precedent is a decision which lays down some principle of law. In our view, the observations made in SCC para 4 of the aforesaid judgment, quoted above, that “[if a review petition is filed after the dismissal of the special leave petition] it would be treated as an affront to the order of the Supreme Court” is not a precedent at all. A mere stray observation of this Court, in our opinion, would not amount to a precedent. The above observation of this Court is, in our opinion, a mere stray observation and hence not a precedent.

    12. By a judicial order, the power of review cannot be taken away as that has been conferred by the statute or the Constitution. This Court by judicial orders cannot amend the statute or the Constitution.

    13. For the reasons given above, we allow this appeal, set aside the impugned order of the High Court, condone the delay in filing the review petition before the High Court and remand the matter to the High Court to decide the review petition on merits in accordance with law expeditiously after hearing the parties concerned.

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    Comments

    Gangadhara Palo v. Revenue Divisional Officer And Another
    (Mar 8, 2011)