TaxTMI 
TaxTMI 
2002 (3) TMI 909
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....ied under the provisions of the Estates Abolition Act, 1948 and the State Government took over the two estates. The compensation due for the estates was notified on 20.6.1961. The State Government realising its mistake in notifying the two estates together, issued two separate notifications under the Estates Abolition Act, on 1.10.1963 and compensation for the two estates were determined separately, one on 21.11.64 for Meduru and another on 5.4.1966 for Vuyyur. The State Government issued an administrative instruction in G.O.Ms. No. 645 dated 28.5.66, indicating the procedure for determining the final compensation. Section 39 of the Act indicates the manner in which the compensation is to be determined. The scheme of the aforesaid provision is that the Director shall determine the compensation under sub-section (1) of Section 39 and a person aggrieved could put-forth his grievances to the Director, in the matter of proposed determination of the basic annual sum and also the total compensation payable. The Director is required to determine the compensation payable under sub-section (1) of Section 39, after giving the applicant an opportunity of making his representation, either in w....
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.... ordinance but not thereafter. Thus the amended Act was held to be valid prospectively. The present respondents along with several others filed writ petitions before the Andhra Pradesh High Court, seeking interim payments, which were registered as Writ Petition Nos. 3293 and 3294 of 1975. A learned Single Judge of the High Court disposed of the two writ petitions by Judgment dated 17.6.1977 and following the earlier Judgment in Venkatagiri's case, issued a writ of mandamus to make interim payments to the respondents herein in accordance with law laid down in Venkatagiri's case. Against this direction of the learned Single Judge, the State Government filed an application for leave to appeal under Article 133(a) & (b) of the Constitution, but the same on being dismissed, the State Government did not approach the Supreme Court and allowed the matter to rest therein. Notwithstanding the finality attached to the order of the learned Single Judge in favour of the respondents, the same not being complied with, a fresh writ petition was filed, which was registered as Writ Petition No. 730 of 1978, praying therein that the earlier order be commanded to be implemented by a writ of ma....
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....sed by the High Court. The learned Single Judge by Judgment dated 30th of January, 1993, dismissed the writ petition on the ground that the very basis namely the judgment in Venkatagiri's case, having been set aside by the Supreme Court, the earlier decision in favour of the respondents would not constitute an enforceable right and as such a writ of mandamus cannot be issued. The respondents however assailed the aforesaid judgment of the learned Single Judge in writ appeal No. 511 of 1993 and the said writ appeal having been allowed, the present appeal has been preferred by the State Government by grant of special leave. When this appeal had been listed before a Bench of two learned Judges of this Court on 7.2.2002, the Court felt that the decision of this Court in the case of M/s Shenoy & Co. & Ors vs. Commercial Tax Officer Circle II, Bangalore & Ors., on which the counsel for the State relied upon and the decision of this Court in the case of Authorised Officer (Land Reforms) vs. M.M. Krishnamurthy Chetty, 1998(9) SCC 138, on which Mr. Rao for the respondents relied upon, perhaps run counter to each other and as such to resolve the said conflict, the appeal should be decide....
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....be held to be unsustainable in law. Mr. Prabhakar also relied upon the Judgment of this Court in U.P. Pollution Control Board and Ors. vs. Kanoria Industrial Ltd. and Anr., 2001(2) S.C.C. 549, and urged that to apply the law laid down by this Court in Venkatagiri's case only to the parties to the said appeal, would tantamount to ignore the binding nature of a judgment of this Court under Article 141 of the Constitution. According to him, such an interpretation would make the mandate of Article 141 illusory and the High Court, therefore, committed serious error in not examining the effect of Article 141 of the Constitution in its true perspective. Mr. Prabhakar also relied upon the Constitution Bench decision of this Court in E.S.P. Rajaram and ors. vs. Union of India and Ors., 2001(2) S.C.C. 186, and contended that the very approach adopted by this Court in the aforesaid case to have a uniformity of law in respect of all concern leads to the only conclusion that the High Court was not justified in issuing a mandamus on the ground of finality to the earlier Judgment in favour of the respondents, as that would go against the provisions of Article 141 of the Constitution. Mr. P.P....
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....t as between the parties. In this view of the matter the mandamus issued in favour of the respondents in Writ Petition Nos. 3293 and 3294 of 1975 directing the State to make interim payments cannot be disobeyed or nullified merely because the judgment of the High Court in Venkatgiri's case was reversed by the Supreme Court, and more particularly, because the reversal of the judgment in the Supreme Court was on the basis of the concession of the counsel appearing for Venkatgiri. According to Mr. Rao, the rights accrued to the respondents in terms of the earlier judgment are not affected by the order and judgment of the Supreme Court dated 6.2.1986 in Venkatgiri's case and as such, the Division Bench of the High Court was fully justified in issuing the impugned order and direction. In view of the rival submissions following questions arise for our consideration: (a) Can the decision of this Court dated 6th February, 1986, upholding the constitutional validity of the Amendment Act of 1971 reversing the judgment of Andhra Pradesh High Court in C.A. Nos. 398 and 1385 of 1972 (State of Andhra Pradesh vs. Venkatagiri and batch), and further indicating that the period during whic....
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....nguished from a ratio decidendi is an observation by Court on a legal question suggested in a case before it but not arising in such manner as to require a decision. Such an obiter may not have a binding precedent as the observation was unnecessary for the decision pronounced, but even though an obiter may not have a bind effect as a precedent, but it cannot be denied that it is of considerable weight. The law which will be binding under Article 141 would, therefore, extend to all observations of points raised and decided by the Court in a given case. So far as constitutional matters are concerned, it is a practice of the Court not to make any pronouncement on points not directly raised for its decision. The decision in a judgment of the Supreme Court cannot be assailed on the ground that certain aspects were not considered or the relevant provisions were not brought to the notice of the Court (see AIR 1970 SC 1002 and AIR 1973 SC 794). When Supreme Court decides a principle it would be the duty of the High Court or a subordinate Court to follow the decision of the Supreme Court. A judgment of the High Court which refuses to follow the decision and directions of the Supreme Court o....
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....e of Krishena Kumar and Anr. Etc. etc. vs. Union of India and ors. 1990 (3) Supreme Court Reports 352. In the aforesaid case the Constitution Bench was considering the ratio decidendi in Nakara's case 1983 (2) SCR 165, when the question before the Court was whether the States' obligation is the same towards the Pension retirees as well as the Provident Fund retirees and ultimately the Court came to the conclusion that the Pension Scheme and Provident Fund Scheme are structurally different and, as such, the observation of the Court in Nakara may be a moral obligation of the State but cannot be construed a ratio decidendi for being enforceable and applicable in all cases. It is in this context, it was observed in Krishena Kumar that the enunciation of the reason or principle upon which a question before a Court has been decided is alone binding as a precedent, and the ratio decidendi is the underlying principle, namely, the general reasons or the general grounds upon which the decision is based on the test or abstract the specific pecularities of the particular case which gives rise to the decision. Having examined Nakara's case it was stated in Krishena Kumar that it was....
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....emplated under Article 141 of the Constitution. Applying the test to the case in hand is it possible for us to hold that the question of constitutionality of the Amendment Act of 1970 was not an issue before this Court in Civil Appeal No. 398 of 1972 or that the conclusion of the Court was not of a conscious consideration and the answer would be in the negative. In our considered opinion, therefore, the aforesaid decision is of no assistance to support Mr. Rao's contention. Mr. Rao then placed reliance on yet another decision of this Court in the case of A-One Granites vs. State of U.P. and Others (2001) 2 Supreme Court Cases 537, to which one of us (Pattanaik, J.) was a party. In that particular case the applicability of Rule 72 of the U.P. Minor Minerals (Concession) Rules, 1963 was one of the bone of the contention before this Court, and when the earlier decision of the Court in Prem Nath Sharma vs. State of U.P. (1997) 4 Supreme Court Cases 552, was pressed into service, it was found out that in Prem Nath Sharma's case the applicability of Rule 72 had never been canvassed and the only question that had been canvassed was the violation of the said Rules. It is in this c....
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....s upon which reliance was placed to contend that they apply to cases for fixation of rent also will not apply. It was held that the general observations therein should be confined to the facts of those cases and any general observation cannot apply in interpreting provisions of the Act unless the Court had applied its mind to analyse its decision to that particular Act. While there is no dispute with the aforesaid proposition, but in our view the same will be of no assistance in deciding the question for consideration inasmuch as the decision as to the constitutionality of the Amendment Act of 1971 is neither a general observation nor can it be held to be an observation without application of mind. The only other case which may be noticed in this connection, is the case of Municipal Corporation of Delhi vs. Gurnam Kaur (1989) 1 Supreme Court Cases 101. In the aforesaid case the Court examined the provisions of Article 141, elaborated the meaning of the expression 'obiter dicta, per incuriam and sub silentio decisions and ultimately held that the orders made with the consent of the parties and with the reservation that the same should not be treated as precedent, cannot have a b....
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.... So far as the second question is concerned, it is no doubt true that the Judgment of the Andhra Pradesh High Court in favour of the respondents, not having been challenged, has reached finality. The High Court in the aforesaid two cases, following the reasoning and conclusion of the earlier decision in Venkatagiri's case in Writ Petition No. 4709/70 dated 22.9.71 issued a writ of mandamus to make payments to the petitioners in accordance with law laid down in Writ Petition No. 4709 of 1970 dated 22.9.71. Notwithstanding the aforesaid direction in favour of the respondents in writ petition Nos. 3293 and 3294 of 1975, interim payments not having been made, the respondents approached the High Court again, by filing a fresh writ petition, which was registered as writ petition No. 730 of 1978. The High Court disposed of the matter on 28.3.78, directing the State to implement the earlier order dated 7.6.77 within a month from the date of the said order. Yet, no interim payments had been made and in the meantime, Supreme Court reversed the Judgment of the Andhra Pradesh High Court in Venkatagiri's case in C.A. Nos. 398 and 1385 of 1972 by Judgment dated 6.2.1986. While reversing ....
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....ollaterally or incidentally challenged ? The Court held that it would not be permissible for the State Government to challenge the correctness of the earlier Judgment either collaterally or incidentally, no appeal having been taken from the earlier decision. Mr. Rao further relied upon the decision of this Court in the case of B.N. Nagarajan and Ors. vs. State of Mysore and Ors, 1966(3) S.C.R. 682, whereunder while allowing the appeals filed by the State as well as private persons and setting aside the Judgment of the High Court, the Court also observed that those who have not prosecuted their appeals, they would also have the benefit of the Judgment and this the Supreme Court could do in exercise of its power under Article 142 of the Constitution. We really fail to understand as to how the aforesaid decision is of any application. According to Mr. Rao, since in Venkatagiri's case there has been no such observation notwithstanding the reversing the Judgment of the High Court, those of the persons against whom, the State did not come up in appeal, their rights are concluded by the earlier judgment of the High Court and that must be allowed to operate. It is however difficult for....
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....one and it would, therefore be futile to contend that the mandamus would still survive in favour of those parties against whom appeals were not filed. In our considered opinion, the ratio in the aforesaid case fully applies to the case in hand, particularly, when the Court is examining the question whether while issuing a mandamus, the earlier Judgment notwithstanding having been held to be invalid, can still be held to be operative. Mr. Rao also relied upon the Judgment of this Court in Ram Bai vs. Commissioner of Income Tax, 1999(3) S.C.C. 30, which was a case arising from an assessment made under the Income-tax Act . Having examined the aforesaid decision at length, we do not find anything stated therein which will be of any assistance to the respondents in the present case. Mr. Rao, no doubt submitted with force that in Shenoy's case, the Court never focussed its attention as to the finality of the earlier Judgment and the principle of res judicata and accordingly, the said decision require a consideration by a larger Bench. But we are not persuaded to accept this submission inasmuch as when the Court is examining the question of any right having emanated from a Judgment of....
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....Court's power for issuance of mandamus, it appears that the constitution empowers the High Court to issue writs, directions or orders in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari for the enforcement of any of the rights conferred by Part III and for any other purpose under Article 226 of the Constitution of India. It is, therefore essentially, a power upon the High Court for issuance of high prerogative writs for enforcement of fundamental rights as well as non-fundamental or ordinary legal rights, which may come within the expression 'for any other purpose'. The powers of the High Courts under Article 226 though are discretionary and no limits can be placed upon their discretion, it must be exercised along recognised lines and subject to certain self-imposed limitations. The expression 'for any other purpose' in Article 226, makes the jurisdiction of the High Courts more extensive but yet the Court must exercise the same with certain restraints and within some parameters. One of the conditions for exercising power under Article 226 for issuance of a mandamus is that the Court must come to the conclusion that the aggrieved p....