Implied appellate power to stay proceedings preserves the appeal and prevents the remedy from becoming ineffective.

A statutory right of appeal carries implied ancillary powers necessary to make the appeal effective, including authority to stay proceedings that would otherwise defeat the appeal. The tribunal, while entertaining an appeal under section 22B of the C.P. and Berar Sales Tax Act, 1947, could therefore preserve the subject-matter in dispute and prevent the appellate remedy from becoming nugatory. Applying the broader principle that procedural powers exist to secure justice and avoid abuse of process, the court treated the stay power as inherent in the appellate jurisdiction. The refusal to grant stay of the reassessment proceedings was unsustainable, and the stay refusals were set aside.

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Issues: Whether the Appellate Tribunal, while entertaining an appeal under section 22B of the C.P. and Berar Sales Tax Act, 1947, had implied power to stay further proceedings before the assessing authority.

Analysis: The right of appeal conferred by section 22B carried with it such ancillary powers as were necessary for effective exercise of the appellate jurisdiction. A statutory tribunal clothed with authority to examine the correctness of the order appealed against must also be able to preserve the subject-matter of the appeal and prevent the appeal from being rendered nugatory. The reasoning drew support from the principle underlying inherent powers recognized in section 151 of the Code of Civil Procedure and from the broader rule that procedural powers exist to secure the ends of justice and prevent abuse of process. Since the tribunal could adjudge the validity of the reopening order, it necessarily possessed the power to stay the consequential proceedings.

Conclusion: The Tribunal had implied authority to grant a stay of the reassessment proceedings, and its refusal to do so was unsustainable.

Final Conclusion: The petitioners succeeded, the impugned stay refusals were set aside, and the matters were sent back for disposal according to law.

Ratio Decidendi: When a statute confers appellate jurisdiction, it impliedly authorises the tribunal to exercise all ancillary powers necessary to make the appeal effective, including power to stay proceedings whose continuation would defeat the appeal.

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