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Indan Pan Works v. The Chief Commissioner, Delhi
Structured Summary of the Provided Opinion
Factual and Procedural Background
This case was heard by I.D. Dua, C.J. and V.S. Deshpande J. and came up on 1 May 1968 for consideration of the exercise of this Court's power under Article 227 of the Constitution to scrutinise and, if necessary, quash the Chief Commissioner's order dated 2 August 1962. That order rejected an application for a reference to the High Court made under section 21(1) of the Bengal Finance (Sales Tax) Act, 1941.
On 28 July 1962 the petitioner, M/s. Indian Pan Works, through their counsel Shri S.P. Saini, presented an application in the office of the Chief Commissioner under section 21(1) praying for reference to the High Court on three questions of law. The application did not bear any court-fee stamp, but it was nevertheless entertained by the Chief Commissioner's office. A challan showing a deposit of Rs. 100/- was attached to the application.
On 2 August 1962 the Chief Commissioner recorded an order (underneath the typed office note) rejecting the application with the observation: “No question of law has been mentioned which needs reference to the Hon'ble High Court. The petition is unstamped and even a copy of the order referred to has not been filed. The petition is rejected.” No prior notice to the petitioner of a hearing was given.
On 3 August 1962 Shri S.P. Saini produced a certified copy of the earlier order of Shri Bhagwan Sahya, Chief Commissioner, dated 29th May, 1962 (in “case No. y2/1961-Court Appeal”) with a covering letter. A file note dated 6 August 1962 recorded: “The petition has since been rejected by the C.C 2nd August, 1962. Place this on the relevant file.” The date “2nd August, 1962” appears to have been added after that note was recorded.
The petitioner's Sales Tax Reference was later described by the Court as having become infructuous and was declined.
Legal Issues Presented
- Whether this Court should exercise its power under Article 227 of the Constitution to scrutinise and quash the Chief Commissioner's ex parte order dated 2 August 1962 rejecting the application for reference under section 21(1) of the Bengal Finance (Sales Tax) Act, 1941.
- Whether the Chief Commissioner (and his office) violated principles of natural justice by rejecting the petitioner's application without giving prior notice and an opportunity to be heard.
- Whether the office of the Chief Commissioner acted properly in entertaining an unstamped petition and in failing to require production of a certified copy of the requisite order at the time of receipt.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Court reviewed the record and made the following analytical findings and steps:
- Fact-finding: The Court noted the application was presented on 28 July 1962 without a court-fee stamp but was nevertheless entertained; a Rs. 100 challan was attached. The Chief Commissioner recorded rejection on 2 August 1962 without giving the petitioner notice of hearing.
- Procedural criticism of the office: The Court held that the officer receiving the application should have checked its completeness (including court-fee stamp and certified copy of the requisite order). If these formal requirements were necessary and absent, the officer should have declined to entertain or should have returned the document to the applicant to be refiled after compliance. Entertaining the application without pointing out defects and keeping it on record demonstrated a lack of due responsibility by the officer.
- Natural justice breach: The Court held it was a violation of the recognised rule of natural justice to place the matter for disposal without giving the petitioner prior notice of the hearing or an opportunity to be heard. The Chief Commissioner making an ex parte order rejecting the petitioner's application without notice and adequate opportunity was inappropriate, particularly because disposing of an application under section 21 involves a judicial function and engages the fundamental rule that “a man has a right to be heard.”
- Constitutional supervisory power: The Court explained the scope of Article 227, stating it confers on this Court the power of general superintendence to be exercised in judicial discretion for keeping courts and tribunals within their authority and ensuring they perform their legal duty. Where the cause of justice is seriously jeopardised, the exercise of this power may be a constitutional obligation.
- Application of principle to facts: Applying these principles, the Court concluded the impugned ex parte order was procedurally unsatisfactory and a breach of natural justice; accordingly it set aside and quashed that order and directed that the application under section 21 be disposed of in accordance with law in the light of the Court's observations. The Court also directed that the questions of permitting proper court-fee to be affixed and the effect of producing the certified copy on 3 August 1962 be considered according to law.
- Additional observations: The Court observed the petitioner should have moved to amend the Memorandum of Parties to substitute the Lt. Governor in place of the Chief Commissioner when a constitutional change occurred; omission to do so indicated lack of proper care. Given the circumstances, the Court made no order as to costs.
Holding and Implications
Impugned ex parte order quashed; Sales Tax Reference declined as infructuous.
Direct consequences and practical effects:
- The Chief Commissioner's ex parte order of 2 August 1962 rejecting the application under section 21(1) was set aside and quashed.
- The application under section 21 is to be disposed of afresh in accordance with law, having regard to the Court's observations (including consideration of court-fee and the certified copy produced on 3 August 1962).
- The Sales Tax Reference itself was held to have become infructuous and was declined.
- No order as to costs was made by the Court.
- The record was directed to be returned without avoidable delay.
No broader precedent or novel legal principle was held beyond the application of well-established supervisory jurisdiction under Article 227 and the requirement of observance of natural justice in quasi-judicial proceedings; the opinion confined itself to quashing the impugned order and directing re-hearing in accordance with law.
I.D Dua, C.J and V.S Deshpande J.:— This case came up before us on 1st May, 1968 when we felt that it was a fit case in which we should consider the question, of exercising the power of this Court under Article 227 of the Constitution for scrutinising and, if necessary, of quashing the order of the Chief Commissioner dated 2nd August, 1962 rejecting the application for reference to the High Court made under section 21(1) of the Bengal Finance (Sales Tax) Act, 1941.
2. On going through the record, which we had sent for, we find that on 28th July 1962; an application was presented by the petitioner M/s.
3. Indian Pan Works through Shri S.P Saini, their counsel, in the office of the Chief Commissioner under section 21(1) of the Bengal Finance (Sales Tax) Act, 1941, praying for reference to this High Court three questions of law formulated their in. This application did not bear any court-fee stamp, but this deficiency notwithstanding, it was actually entertained by the office of the Chief Commissioner. Along with the application, was attached a challan showing deposit of Rs. 100/-. It appears that without giving any notice to the petitioner, Shri Bhagwaa Sahya, the then Chief Commissioner, recorded on 2nd August, 1962 the following order underneath the typed office note stating the fact of the case:—
“No question of law has been mentioned which needs reference to the Hon'ble High Court. The petition is unstamped and even a copy of the order referred to has not been filed. The petition is rejected.”
4. Now, it seems that the office of the Chief Commissioner had not raised any objection either of the ground of absence of court-fee stamp on the application or on the score of a certified copy of the order made by the Chief Commissioner on 29th May, 1992 on revision having not been attached with the application. From the record, however, it is clear that on 3rd August, 1962, Shri S.P Saini, Advocate produced a certified copy of the order of Shri Bhagwan Sahya, Chief Commissioner dated 29th, May, 1962 in “case No. y2/1961-Court Appeal,” with a covering letter. On that letter, we find a note dated 6th August 1962 to the following effect:—
“The petition has since been rejected by the C.C 2nd August, 1962. Place this on the relevant file.”
5. The date “2nd August, 1962″ appears to have been added after this note was recorded.
6. The facts just noticed clearly show that the office of the learned Chief Commissioner and the learned Chief Commissioner himself had both dealt with this matter in a manner which can by no means be considered to be either satisfactory or judical. As soon as the application was presented in the office of the Chief Commissioner, it was, in our opinion, incumbent on the officer, entrusted with the duty of receiving it, to check up and satisfy himsely if the petition was complete in all respects, including affixation of proper court fee stamp and production or certified copy of the requisite order. In case it did not bear the court fee and was not accompained with a certified copy of the order, as uming such a copy and court fee ware necessary; it should have been declined to be entertained or received, and in the event of its having been entertained by oversight, returned to the applicant to be refiled after complying with the requirements of law. To entertain such an application without noticing and disclosing to the petitioner, the defects therein and to keep it on the record, discloses lack of due sense of responsibilty on the part of the officer concerned. We are assuming that he was aware of his duties and of the requirements of law for appropriately moving the learned Chief Commissioner under section 21(1) of the Bengal Finance Act in question.
7. And, than having entertained this application, in our view, it was again a violation of the recognised rule of natural justice, requiring notice and opportunity of hearing, to have placed this case for disposal the learned Chief Commissioner without giving to the petitioner prior notice of the date of hearing. It is a matter of suprise to us that an ex-parte order should have been made by the learned Chief Commissioner rejecting the petitioner's application without giving him any prior notice for hearirg fixed for 2nd August, 1962 and without granting him adequate opportunity to be heard. Merely because the Chief Commissioner was the executive head of the Union Territory of Delhi did not absolve him of the obligation of complying with the rule of natural justice of affording adequate hearing to the petitioner before finally disposing of his application under section 21 of the Bengal Finance Act which essentially involved a judicial function. This fundamental rule of natural justice, that “a man has a right to be heard,” expressing in final analysis, as it does, respect enforced by law for the feeling of just treatment, evolved through centuries of British and American Constitutional history and adopted and developed in our Republic through years of Indian Constitutional history, represents a profound attitude of fairness between man and man and particularly between individual and the Government. As this rule embraces the whole notion of fair procedure, it is not confined only to the Courts strictly so-called, but takes within its sweep all quasi judicial functions and to an extent even administrative acts, for, to give every citizen a fair hearing is just as much a cannon of good administration as a good legal procedure. Nothing is, in our view, more likely 10 conduce to just and right decision then the habit of first giving a hearing to any affected party and this element of fair procedure, it may be remembered, has its due place even in administrative justice.
8. In the case in hand, no justification Das been offered on behalf of the respondent for making the ex parte order nor has the exercise of sua motu power by this Court under Aritcle 227 of the Constitution been questioned or disputed. This Article confers on this Court power of general superintendence to be exercised in its judicial discretion with the object of keeping all Coarts and Tribunals within the bounds of their authority and seeing that they perform their legal duty in a legal manner. Where the cause of justice is seriously jeopardised. the exercise of this power may take the shape of a constitutional obligation. Such, in our view, is the position in the present case. We accordingly set aside and quash the impugned ex parte order with the direction that the application under section of 21 of the Bengal Finance (Sales Tax) Act be disposed of in accordance with law in the light of the observations made above. We have no doubt that the question of permitting proper court-fee to be affixed as also the effect of producing on 3rd August, 1962 the certified copy of order would also be considered in accordance with law.
9. Before finally closing, we cannot help observing that the petitioner should have moved this Court for amendment in the Memorandum of parties so as to have the Lt. Governor substituted in place of the Chief Commissioner when the constitutional change took place. Omission to do so, is indicative of want of proper care and attention which is not easy to appreciate. In the peculiar circumstances of this case, we make no order as to costs On. the view that we have taken, the Sales Tax Reference becomes infructuous and the same is declined as such. The record may be returned without avoidable delay.
10. Reference declined
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