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  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Order 47 Rule 7 of the Code of Civil Procedure
  • Article 136 of the Constitution
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Citation Codes
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citation codes
Case Number
Disposition
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Order 47 Rule 7 of the Code of Civil Procedure
  • Article 136 of the Constitution
Smart Summary

Factual and Procedural Background

The petitioner, an employee of Kuruppampady Service Cooperative Bank, was dismissed from service on 20 March 2003 after a domestic enquiry. A series of proceedings followed:

  • 18 Aug 2010 – Cooperative Arbitration Court modified the dismissal to reduction in rank.
  • 16 Aug 2011 – Cooperative Tribunal, while deciding cross-appeals, substituted the penalty with compulsory retirement along with terminal benefits.
  • 31 July 2013 – Single Judge of the Kerala High Court dismissed the petitioner’s writ petition; the Division Bench affirmed this on 11 Mar 2015.
  • 21 Aug 2015 – Supreme Court dismissed Special Leave Petition (SLP No. 24231/2015) against the Division Bench judgment.
  • The petitioner’s subsequent review, curative and other petitions in the Supreme Court were also dismissed (2 Mar 2016 and 12 May 2016).
  • He then filed Review Petition No. 805/2018 before the High Court seeking review of the very Division Bench judgment dated 11 Mar 2015; the High Court dismissed the review on 6 Feb 2020 (2020 SCC OnLine Ker 4527).
  • The present special leave petition challenges the High Court’s order dated 6 Feb 2020 dismissing the review.

Legal Issues Presented

  1. Whether a special leave petition is maintainable against an order rejecting a review petition when the main judgment sought to be reviewed has already attained finality after dismissal of an earlier SLP.
  2. Consequently, whether any relief can be granted that would, directly or indirectly, alter the unassailable Division Bench judgment dated 11 Mar 2015.

Arguments of the Parties

Petitioner’s Arguments

  • Dismissal of the earlier SLP on 21 Aug 2015 does not operate as res judicata; therefore, the review before the High Court ought to have been entertained on merits.
  • The penalty of dismissal (and later compulsory retirement) was imposed for “petty charges” allegedly motivated by political vendetta.
  • The Cooperative Arbitration Court’s lesser punishment (reduction in rank) was improperly substituted by the Tribunal’s order of compulsory retirement.
  • Relied on Kunhayammed v. State of Kerala (2000) 6 SCC 359 to contend that dismissal of an SLP without reasons does not preclude pursuit of statutory remedies, including review.

Respondent’s Arguments

The opinion does not contain a detailed account of the respondents’ legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kunhayammed v. State of Kerala (2000) 6 SCC 359 Dismissal of an SLP without a speaking order does not bar a statutory review in the High Court. Cited to acknowledge that a review is conceptually permissible, but distinguished because the subsequent SLP against the review order remains non-maintainable.
Hussain Sasan Saheb Kaladgi v. State of Maharashtra (1988) 4 SCC 168; AIR 1987 SC 1627 Scope of appellate/tribunal power to modify disciplinary punishment. Relied upon by the High Court to uphold substitution of reduction in rank with compulsory retirement.
J.K. Synthetics Ltd. v. K.P. Agrawal (2007) 2 SCC 433 Principles governing proportionality of disciplinary penalties. Supported the High Court’s view that compulsory retirement was legally sustainable.
MCD v. Yashwant Singh Negi (2020) 9 SCC 815 SLP against rejection of review petition is not maintainable if the main judgment is unchallenged. Applied as binding precedent to dismiss the present SLP.
DSR Steel (P) Ltd. v. State of Rajasthan (2012) 6 SCC 782 Explained situations where doctrine of merger applies or does not apply in context of review petitions. Used to illustrate that dismissal of review does not merge with the main judgment; hence only the main judgment is appealable.
Bussa Overseas & Properties (P) Ltd. v. Union of India (2016) 4 SCC 696 Reaffirmed non-maintainability of SLP solely against dismissal of review. Cited as “elaborate judgment” reiterating the same principle followed by Court.
Eastern Coalfields Ltd. v. (party not specified) (2008) 14 SCC 295 Earlier view on SLP against review orders. Distinguished; Court preferred the ratio in DSR Steel and later cases.
Manohar v. Jaipalsing (2008) 1 SCC 520 Doctrine of merger in review situations. Quoted in support of the proposition that no merger occurs upon dismissal of review.
State of A.P. v. A.P. Jaiswal (2001) 1 SCC 748 Importance of consistency and finality in judicial pronouncements. Invoked to emphasise need to respect settled precedent on maintainability.
Shanker Motiram Nale (1994) 2 SCC 753 Order 47 Rule 7 CPC bars appeals from orders rejecting review. Referred to illustrate statutory scheme; ultimate reasoning grounded in Article 136 jurisprudence.
Thungabhadra Industries Ltd. v. Govt. of A.P. AIR 1964 SC 1372; (1964) 5 SCR 174 Early authority on scope of review. Mentioned to clarify that later precedents are not per incuriam.

Court's Reasoning and Analysis

The Supreme Court undertook a two-step analysis:

  1. Effect of Earlier Proceedings: The Division Bench judgment dated 11 Mar 2015 had already been challenged via SLP and the challenge was dismissed on 21 Aug 2015. That dismissal attained finality between the parties.
  2. Maintainability of the Present SLP: Relying on a consistent line of authority (MCD v. Yashwant Singh Negi, Bussa Overseas, DSR Steel), the Court held that an SLP directed solely against the High Court’s refusal to entertain a review petition is not maintainable where the original judgment is neither impugned nor capable of being disturbed. The rationale is that no effective relief can be granted without impinging upon the final judgment, and the doctrine of merger does not apply when the review is dismissed.

Applying these principles, the Court concluded that it lacked jurisdiction to grant any relief that would alter or dilute the operative Division Bench judgment of 11 Mar 2015. Consequently, the SLP had to be dismissed at the threshold.

Holding and Implications

DISMISSED

The Supreme Court refused to entertain the special leave petition. The Division Bench judgment dated 11 Mar 2015 and the High Court’s order dated 6 Feb 2020 remain undisturbed. The decision reiterates the established rule that a party cannot circumvent finality by challenging only the order dismissing a review; no new substantive precedent was set, but existing jurisprudence on maintainability was reaffirmed.

    T.K. David v. Kuruppampady Service Cooperative Bank Limited And Others

    Ashok Bhushan, J.— This special leave to appeal has been filed against the Division Bench judgment of the Kerala High Court dated 6-2-2020 2020 SCC OnLine Ker 4527 rejecting Review Petition No. 805 of 2018 filed by the petitioner in Writ Appeal No. 399 of 2014.

    2. Brief facts necessary to consider this special leave petition need to be noted.

    3. The petitioner was an employee of Kuruppampady Service Cooperative Bank. The petitioner was suspended and disciplinary inquiry was conducted by the Bank. The Bank vide order dated 20-3-2003 dismissed the petitioner consequent to domestic enquiry. There has been series of litigation between the petitioner and the Bank, and thereafter, the Cooperative Arbitration Court by order dated 18-8-2010 gave award by which punishment of dismissal was modified as reduction to a lower rank.

    4. Against the order dated 18-8-2010 both the petitioner as well as the Bank filed Appeals Nos. 78 and 81 of 2010, respectively. The Cooperative Tribunal vide its judgment dated 16-8-2011 disposed of both the appeals by which the punishment of compulsory retirement on 20-3-2003 was imposed with terminal benefits subject to liability, if any, duly assessed.

    5. Against the order of the Cooperative Tribunal, a writ petition was filed by the petitioner before the learned Single Judge of the Kerala High Court, which writ petition was dismissed by judgment dated 31-7-2013 2013 SCC OnLine Ker 24582 against which judgment Writ Appeal No. 1313 of 2013 was filed by the petitioner before the Division Bench. The Division Bench of the High Court vide its judgment dated 11-3-2015 dismissed the writ appeal filed by the petitioner. Aggrieved by the Division Bench judgment dated 11-3-2015, the petitioner filed Special Leave Petition No. 24231 of 2015 before this Court, which was dismissed by order dated 21-8-2015 2015 SCC OnLine SC 1877, which is as follows: (T.K. David case 2015 SCC OnLine SC 1877, SCC OnLine SC paras 1 and 2)

    “1. Heard. Delay condoned.
    2. We do not see any merit in this special leave petition, which is hereby dismissed.”

    6. After dismissal of special leave petition, Review Petition No. 1521 of 2016 was filed in this Court, which too was dismissed on 2-3-2016 2016 SCC OnLine SC 1891. The petitioner also filed Curative Petition No. 245 of 2016, which also was dismissed on 12-5-2016 2016 SCC OnLine SC 1890. After the aforesaid proceedings in this Court, the petitioner filed a review petition, RP No. 805 of 2018 in Writ Appeal No. 399 of 2014, which review petition has been dismissed by the High Court vide its judgment dated 6-2-2020 2020 SCC OnLine Ker 4527. Aggrieved with the judgment dated 6-2-2020 2020 SCC OnLine Ker 4527, this special leave petition has been filed.

    7. The learned counsel for the petitioner challenging the order on the review submits that earlier dismissal of the special leave petition on 21-8-2015 2015 SCC OnLine SC 1877 shall not operate as res judicata. He further submits that the petitioner was dismissed on petty charges due to political vendetta. He further contends that the Cooperative Arbitration Court, which has imposed punishment of reduction in rank was wrongly substituted by compulsory retirement by the Cooperative Tribunal. The learned counsel for the petitioner has also referred to judgment of this Court in Kunhayammed v. State of Kerala (2000) 6 SCC 359.

    8. We have heard the learned counsel for the petitioner and have perused the records.

    9. The earlier Special Leave Petition (C) No. 24231 of 2015 was filed by the petitioner challenging the Division Bench judgment dated 11-3-2015 by which his writ appeal was dismissed. Review Petition No. 805 of 2018 giving rise to this special leave petition has been filed to review the judgment dated 11-3-2015 of the Division Bench. A review petition as well as curative petition was filed by the petitioner after dismissal 2015 SCC OnLine SC 1877 of his earlier special leave petition. The judgment of this Court in Kunhayammed v. State of Kerala (2000) 6 SCC 359 laid down that where the special leave petition is dismissed there being no merger, the aggrieved party is not deprived of any statutory right of review, if it was available and he can pursue it. In para 34, this Court made following observations: (Kunhayammed case (2000) 6 SCC 359)

    “34. … But where the special leave petition is dismissed—there being no merger, the aggrieved party is not deprived of any statutory right of review, if it was available and he can pursue it. It may be that the review court may interfere, or it may not interfere depending upon the law and principles applicable to interference in the review.”

    10. The Division Bench of the High Court by the impugned judgment dated 6-2-2020 2020 SCC OnLine Ker 4527 has not dismissed the review petition as not maintainable. The High Court proceeded to meticulously examine the question and after consideration came to the conclusion that there is no mistake or omission amounting to error apparent on the face of the record. In paras 8 and 9 of the judgment 2020 SCC OnLine Ker 4527, the High Court held: (T.K. David case 2020 SCC OnLine Ker 4527, SCC OnLine Ker)

    “8. This Court in paras 11 and 12 of the judgment passed in writ appeal, elaborately considered the conversion of punishment to compulsory retirement with sufficient reasonings and justified the cooperative tribunal for setting aside the punishment of reduction to lower rank and imposing compulsory retirement. The aforesaid findings are made consciously after making due deliberations on the materials on record and the findings of the Single Bench of this Court. The findings of this Court are supported by the decisions of the Apex Court in Hussain Sasan Saheb Kaladgi v. State of Maharashtra (1988) 4 SCC 168, AIR 1987 SC 1627 and J.K. Synthetics Ltd. v. K.P. Agrawal (2007) 2 SCC 433.
    9. So there is no omission to consider the legality or correctness of the punishment or power of the Cooperative Tribunal to impose such a punishment of compulsory retirement. There is no mistake or omission amounting to error apparent on the face of the record, as contended by the revision petitioner. In view of the legal proposition laid down by the Supreme Court in the decisions (1988) 4 SCC 168, AIR 1987 SC 1627 (2007) 2 SCC 433 referred to above, this Court is not inclined to rehear or reconsider the above findings, as the review is not an appeal in disguise. Hence, the review petition fails and is dismissed accordingly.”

    11. The review petition filed by the petitioner, thus, was rejected on merits.

    12. The first question, which need to be considered is as to whether the present special leave petition challenging the above review order dated 6-2-2020 2020 SCC OnLine Ker 4527 is maintainable when the Division Bench judgment dated 11-3-2015 has neither been challenged nor can be challenged in this special leave petition. The consequence of the rejection of the review petition is that the High Court has refused to review the judgment of the Division Bench dated 11-3-2015 passed in T.K. David v. Kuruppumpady Service Coop. Bank Ltd.. As noted above, the Division Bench judgment dated 11-3-2015 was questioned by the petitioner by special leave petition in this Court, which was dismissed on 21-8-2015 2015 SCC OnLine SC 1877. When Special Leave Petition No. 24231 of 2015 challenging the earlier judgment has already been dismissed, such dismissal has become final between the parties. In this special leave petition, the petitioner cannot challenge the earlier order dated 11-3-2015 against which he unsuccessfully has earlier filed the special leave petition. When the order dated 11-3-2015 is unassailable by the petitioner in this special leave petition, no relief can be granted to petitioner, which may have effect in any manner diluting, modifying or reversing the earlier judgment dated 11-3-2015.

    13. This Court had earlier considered the question as to whether the special leave petition challenging the order rejecting review petition is maintainable when the main judgment of the High Court is not under challenge. We may refer to judgment of this Court in MCD v. Yashwant Singh Negi (2020) 9 SCC 815. In the above case, a special leave petition was preferred against an order rejecting the review petition. A preliminary objection was raised that special leave petition is not maintainable since the main judgment is not challenged. In para 1 of the judgment, facts have been noticed, which are to the following effect: (Yashwant Singh Negi case (2020) 9 SCC 815),

    “1. This special leave petition has been preferred against the order dated 11-9-2009 passed by the High Court of Delhi in Review Petition No. 79 of 2009 in LPA No. 1233 of 2006. Mr Nidhesh Gupta, learned Senior Counsel appearing for the respondent raised a preliminary objection that the special leave petition is not maintainable since the main judgment rendered by the High Court on 5-11-2008 in Yashwant Singh Negi v. Union of India LPA No. 1233 of 2006 was not challenged.”

    14. This Court after considering the earlier judgment (2012) 6 SCC 782 of this Court held that special leave petition is not maintainable. In paras 3 and 4 following was laid down:

    “3. We find ourselves unable to agree with the views expressed by this Court in Eastern Coalfields Ltd. (2008) 14 SCC 295 In our view, once the High Court has refused to entertain the review petition and the same was dismissed confirming the main order, there is no question of any merger and the aggrieved person has to challenge the main order and not the order dismissing the review petition because on the dismissal of the review petition the principle of merger does not apply. In this connection reference may be made to the judgment of this Court in Manohar v. Jaipalsing (2008) 1 SCC 520 wherein this Court has taken the view that once the review petition is dismissed the doctrine of merger will have no application whatsoever. This Court in DSR Steel (P) Ltd. v. State of Rajasthan (2012) 6 SCC 782 also examined the various situations which might arise in relation to the orders passed in review petitions. Reference to paras 25, 25.1, 25.2 and 25.3 is made, which are extracted below for ready reference: [DSR Steel (P) Ltd. case (2012) 6 SCC 782]
    ‘25. Different situations may arise in relation to review petitions filed before a court or tribunal.
    25.1. One of the situations could be where the review application is allowed, the decree or order passed by the court or tribunal is vacated and the appeal/proceedings in which the same is made are reheard and a fresh decree or order passed in the same. It is manifest that in such a situation the subsequent decree alone is appealable not because it is an order in review but because it is a decree that is passed in a proceeding after the earlier decree passed in the very same proceedings has been vacated by the court hearing the review petition.
    25.2. The second situation that one can conceive of is where a court or tribunal makes an order in a review petition by which the review petition is allowed and the decree/order under review is reversed or modified. Such an order shall then be a composite order whereby the court not only vacates the earlier decree or order but simultaneous with such vacation of the earlier decree or order, passes another decree or order or modifies the one made earlier. The decree so vacated reversed or modified is then the decree that is effective for the purposes of a further appeal, if any, maintainable under law.
    25.3. The third situation with which we are concerned in the instant case is where the revision petition is filed before the Tribunal but the Tribunal refuses to interfere with the decree or order earlier made. It simply dismisses the review petition. The decree in such a case suffers neither any reversal nor an alteration or modification. It is an order by which the review petition is dismissed thereby affirming the decree or order. In such a contingency there is no question of any merger and anyone aggrieved by the decree or order of the Tribunal or court shall have to challenge within the time stipulated by law, the original decree and not the order dismissing the review petition. Time taken by a party in diligently pursing the remedy by way of review may in appropriate cases be excluded from consideration while condoning the delay in the filing of the appeal, but such exclusion or condonation would not imply that there is a merger of the original decree and the order dismissing the review petition.’
    4. We are in complete agreement with the principle laid down by this Court in DSR Steel (P) Ltd. (2012) 6 SCC 782 and applying the third situation referred to therein in para 25.3, we are inclined to dismiss this special leave petition. We find force in the contention made by the learned Senior Counsel appearing for the respondent that this SLP is not maintainable, since the main order was not challenged but only the order passed in the review petition alone was challenged in this SLP. Hence, the SLP is, therefore, not maintainable and the same is dismissed.”

    15. We may also notice another elaborate judgment of this Court in Bussa Overseas & Properties (P) Ltd. v. Union of India (2016) 4 SCC 696. In the above case also special leave petition was filed against the Division Bench judgment of the High Court rejecting the review petition. Facts have been noticed in para 1, which is to the following effect:

    “1. The present appeal is directed against the judgment and order dated 14-9-2004 passed by the Division Bench of the High Court of Judicature at Bombay in Bussa Overseas & Properties (P) Ltd. v. Union of India whereby the High Court while dealing with an application of review has declined to condone the delay of 129 days in preferring the application for review and also opined that the application for review was totally devoid of merit. The expression of the said view led to dismissal of the application for review.”

    16. In the above case, this Court noticed several earlier judgments and accepting the preliminary objection held that the special leave petition is not maintainable. Following was held in paras 29 to 32: [Bussa Overseas & Properties (P) Ltd. case (2016) 4 SCC 696]

    “29. Needless to state that when the prayer for review is dismissed, there can be no merger. If the order passed in review recalls the main order and a different order is passed, definitely the main order does not exist. In that event, there is no need to challenge the main order, for it is the order in review that affects the aggrieved party.
    30. The decisions pertaining to maintainability of special leave petition or for that matter appeal have to be seemly understood. Though in the decision in Shanker Motiram Nale (1994) 2 SCC 753 the two-Judge Bench referred to Order 47 Rule 7 of the Code of Civil Procedure that bars an appeal against the order of the court rejecting the review, it is not to be understood that the Court has curtailed the plenary jurisdiction under Article 136 of the Constitution by taking recourse to the provisions in the Code of Civil Procedure. It has to be understood that the Court has evolved and formulated a principle that if the basic judgment is not assailed and the challenge is only to the order passed in review, this Court is obliged not to entertain such special leave petition. The said principle has gained the authoritative status and has been treated as a precedential principle for more than two decades and we are disposed to think that there is hardly any necessity not to be guided by the said precedent.
    31. In this context, we may profitably reproduce a passage from State of A.P. v. A.P. Jaiswal (2001) 1 SCC 748 wherein a three-Judge Bench has observed thus:
    ‘24. Consistency is the cornerstone of the administration of justice. It is consistency which creates confidence in the system and this consistency can never be achieved without respect to the rule of finality. It is with a view to achieve consistency in judicial pronouncements, the courts have evolved the rule of precedents, principle of stare decisis, etc. These rules and principles are based on public policy….’
    32. In view of the aforesaid analysis, the submission of Mr Gulati that all the subsequent judgments are per incuriam as they have not taken into consideration the decision rendered in Thungabhadra Industries Ltd. AIR 1964 SC 1372, (1964) 5 SCR 174 is not correct. Consequently, the appeal, being not maintainable, stands dismissed. There shall be no order as to costs.”

    17. The rationale for not entertaining a special leave petition challenging the order of the High Court rejecting the review petition when main order in the writ petition is not challenged can be easily comprehended. Against the main judgment SLP having been dismissed earlier the same having become final between the parties cannot be allowed to be affected at the instance of the petitioner. When the main judgment of the High Court cannot be affected in any manner, no relief can be granted by this Court in the special leave petition filed against order rejecting review application to review the main judgment of the High Court. This Court does not entertain a special leave petition in which no relief can be granted. It is due to this reason that this Court in Bussa Overseas & Properties (P) Ltd. (2016) 4 SCC 696 has held that principle of not entertaining special leave petition against an order rejecting the review petition when main judgment is not under challenge has become a precedential principle. We reiterate the above precedential principle in this case again.

    18. The special leave petition against the Division Bench judgment dated 11-3-2015 having been dismissed by this Court earlier on 21-8-2015 2015 SCC OnLine SC 1877 and the review petition filed by the petitioner to review the judgment having been dismissed by the impugned judgment 2020 SCC OnLine Ker 4527, we see no reason to entertain this special leave petition. The special leave petition is accordingly dismissed.

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    T.K. David v. Kuruppampady Service Cooperative Bank Limited And Others
    (Oct 5, 2020)