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        Central Excise

        1962 (10) TMI 55 - SC - Central Excise

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        Failure to Include Necessary Parties in Petition Leads to Dismissal; Importance of Including All Relevant Parties The Court upheld the dismissal of the petition due to the appellant's failure to include necessary parties, Phudan Manjhi and Bhagwan Rajak, who were ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Failure to Include Necessary Parties in Petition Leads to Dismissal; Importance of Including All Relevant Parties

                            The Court upheld the dismissal of the petition due to the appellant's failure to include necessary parties, Phudan Manjhi and Bhagwan Rajak, who were successful in previous proceedings. The Court emphasized the importance of including all relevant parties in a writ of certiorari. The appellant's request to add parties at a later stage was denied, and the appeal was ultimately dismissed with costs.




                            Issues Involved:

                            1. Jurisdiction of the Board of Revenue.
                            2. Applicability of Rule 101 and Rule 145 of the Excise Manual.
                            3. Necessary and proper parties in a writ of certiorari.
                            4. Principles of natural justice.

                            Issue-wise Detailed Analysis:

                            1. Jurisdiction of the Board of Revenue:

                            The appellant contended that the Board of Revenue acted without jurisdiction in directing a fresh settlement of the liquor shop. It was argued that neither Rule 101 nor Rule 145 of the Excise Manual applied to the facts of the case. Rule 101 was deemed inapplicable as no license was cancelled for malpractices, and Rule 145 was not attracted because Jadu Manjhi was not a licensee since no license was issued in his favor.

                            2. Applicability of Rule 101 and Rule 145 of the Excise Manual:

                            The appellant argued that Rule 101 does not apply as in this case no license was cancelled for malpractices. Additionally, Rule 145 is not applicable as Jadu Manjhi was not a licensee since no license was issued in his favor. The Board of Revenue's decision to direct a fresh settlement was therefore challenged as being beyond its jurisdiction.

                            3. Necessary and Proper Parties in a Writ of Certiorari:

                            The respondents raised a preliminary objection that Phudan Manjhi and Bhagwan Rajak, who were necessary parties to the writ petition, were not made parties. The Court accepted this objection, emphasizing that a necessary party is one without whom no order can be made effectively, while a proper party is one whose presence is necessary for a complete and final decision on the question involved in the proceeding. The Court stated that in a writ of certiorari, not only the tribunal or authority whose order is sought to be quashed but also parties in whose favor the said order is issued are necessary parties.

                            4. Principles of Natural Justice:

                            The Court highlighted that a tribunal exercising a judicial or quasi-judicial act cannot decide against the rights of a party without giving them a hearing or an opportunity to represent their case. This principle of natural justice demands that any order made without hearing the affected parties would be void. The Court noted that it would be against all principles of natural justice to make an order adverse to Phudan Manjhi and Bhagwan Rajak behind their back, and any such order would not be effective.

                            Conclusion:

                            The Court concluded that Phudan Manjhi and Bhagwan Rajak were necessary parties before the High Court as they succeeded in the proceedings before the Commissioner and the Board of Revenue, and the orders were in their favor. The appellant's failure to implead them rendered the petition incompetent. Consequently, the High Court's dismissal of the petition was upheld. The Court also declined the appellant's request to implead the necessary parties at this late stage and remand the matter to the High Court for disposal. The appeal was dismissed with costs.
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                            ActsIncome Tax
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