Article 227 review of tribunal stay conditions limited; equitable reduction in deposit requirement granted without disturbing discretion.

Supervisory jurisdiction under Article 227 is ordinarily not used to disturb a reasoned discretionary interim order of a tribunal unless it shows error, illegality, irregularity, or impropriety. Here, the tribunal had granted stay on prima facie merits and imposed a deposit condition. The High Court declined to interfere with the order on merits, but as a limited equitable measure it reduced the deposit condition from 30% to 20% of the amount due, making clear that the modification would not operate as a precedent.

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Issues: Whether the High Court should interfere under Article 227 of the Constitution of India with the Tribunal's interim order directing deposit of 30% of the disputed tax amount, and whether the condition of deposit required modification.

Analysis: The Tribunal had granted stay after assessing the prima facie merits of the second appeal and had exercised its discretion by imposing a deposit condition. Interference in supervisory jurisdiction with such a speaking interim order is unwarranted unless the order discloses error, illegality, irregularity, or impropriety. At the same time, in the circumstances of the case, the Court considered it appropriate, as a matter of equity, to reduce the deposit condition, while making it clear that the order would not operate as a precedent.

Conclusion: The original petition was not entertained on merits, but the interim condition was modified by reducing the deposit from 30% to 20% of the amount due.

Final Conclusion: The Tribunal's discretionary interim order was substantially upheld, subject to a limited equitable reduction in the deposit requirement.

Ratio Decidendi: Supervisory jurisdiction under Article 227 is ordinarily not invoked to disturb a reasoned discretionary interim order of a tribunal unless the order suffers from error, illegality, irregularity, or impropriety, though the Court may grant limited equitable modification in appropriate circumstances.

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