TaxTMI 
TaxTMI 
2014 (5) TMI 289
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.... and 413 of 2012 and Contempt Petition (Civil) no. 260 of 2013. To understand the exact purport of the prayers made in the writ petition, it is essential to extract herein the order dated 4.3.2014, which is subject matter of challenge through the present criminal writ petition:- "1. Contemnors are personally present in the Court, including the fifth respondent, who has been brought to the Court by the U.P. Police, in due execution of our non-bailable warrant of arrest. 2. We have heard the Senior Counsel on various occasions and perused the various documents, affidavits, etc. We have heard the learned counsel and contemnors today as well. We are fully convinced that the contemnors have not complied with our directions contained in the judgment dated August 31, 2012, as well as orders dated December 5, 2012 and February 25, 2013 passed in Civil Appeal no. 8643 of 2012 and I.A. no. 67 of 2013 by a three Judge Bench of this Court. 3. Sufficient opportunities have been given to the contemnors to fully comply with those orders and purge the contempt committed by them but, rather than availing of the same, they have adopted various dilatory tactics to delay the implementation of....
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.... 2014 at 2.00 p.m. All the contemnors be produced in Court on that date. Mrs. Vandana Bhargava, the fourth respondent, to appear on her own. However, liberty is granted for mentioning the matters for preponement of the date, if a concrete and acceptable proposal can be offered in the meantime." 2. When this matter came up for hearing for the first time on 12.3.2014, Mr. Ram Jethmalani, learned Senior Counsel appearing for the petitioner, sought liberty to make a frank and candid submission. He told us, that it would be embarrassing for him, to canvass the submissions which he is bound to raise in the matter before us, i.e., before the Bench as it was presently structured. It was also his submission, that hearing this matter would also discomfort and embarrass us as well. He therefore suggested, that we should recuse ourselves from hearing the case, and require it to be heard by another composition, not including either of us. 3. Mr. Arvind Datar, learned Senior Counsel, appearing for the respondents, vociferously implored us not to withdraw ourselves from hearing the case. It was his vigorous and emphatic contention, that the present petition was not maintainable, either unde....
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....y to determine, how exactly the matter was listed before us, as also, to ascertain whether the pleadings of the present criminal writ petition incorporated material which would embarrass us, as suggested by the learned counsel for the petitioner. So far as the filing and listing of the present petition is concerned, it was filed by the petitioner in the Registry of this Court on 11.3.2014. Thereafter, learned counsel for the petitioner, appeared before the Bench presided over by Hon'ble the Chief Justice, on the morning of 12.3.2014 to "mention for listing", for the same day. The Court Master of the Bench presided over by Hon'ble the Chief Justice, recorded the following note:- "As directed list today i.e., 12.3.2014, if in order, in the mentioning list at 2.00 PM, before appropriate Bench." For the concerned Bench before which the matter was to be posted, the noting file of the branch, reads as under:- "Apprised. May be listed before the Special Bench comprising Hon'ble Mr. Justice K.S. Radhakrishnan and Hon'ble Mr. Justice J.S. Khehar." The above note was recorded on the directions of Hon'ble the Chief Justice. A perusal of the above sequence of....
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....he manner Dr. Rajeev Dhawan had addressed the Court, it sounded like an insinuation. Mr. Ram Jethmalani joined in to inform us, that the Bar (those sitting on the side he represented) was shell-shocked, that an order violating the petitioner's rights under Article 21 of the Constitution of India, had been passed, and it did not seem to cause any concern to us. The petitioner had been taken into judicial custody, we were told, without affording him any opportunity of hearing. Learned counsel asked the Bench, to accept its mistake in ordering the arrest and detention of the petitioner, and acknowledge the "human error" committed by the Court, while passing the impugned order dated 4.3.2014. Dr. Rajeev Dhawan, then informed the Court, that "... moments come in the profession, though rarely, when we tell the Judges of the Supreme Court, that you have committed a terrible terrible mistake, by passing an order which has violated the civil liberties of our client. ... that the order passed is void ...". And moments later, referring to the order, he said, "... it is a draconian order ..." The seriousness of the submissions apart, none of them, even remotely, demonstrated "bias". 9. ....
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....determination of the High Court of Delhi was assailed before this Court in R.K. Anand v. Delhi High Court, (2009) 8 SCC 106. The determination of the High Court whereby Mr. Justice Manmohan Sarin declined to withdraw from the hearing of the case came to be upheld, with the following observations: "The above passage, in our view, correctly sums up what should be the Court's response in the face of a request for recusal made with the intent to intimidate the court or to get better of an `inconvenient' judge or to obfuscate the issues or to cause obstruction and delay the proceedings or in any other way frustrate or obstruct the course of justice." (emphasis is ours) 11. In fact, the observations of the High Court of Delhi and those of this Court reflected, exactly how it felt, when learned counsel addressed the Court, at the commencement of the hearing. If it was learned counsel's posturing antics, aimed at bench-hunting or bench-hopping (or should we say, bench-avoiding), we would not allow that. Affronts, jibes and carefully and consciously planned snubs could not deter us, from discharging our onerous responsibility. We could at any time, during the course of ....
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....this country, why are the two companies or the petitioner - Mr. Subrata Roy Sahara, in his capacity as promoter, and the other concerned directors, so agitated with our order. The findings against the two companies have been concurrent. At all levels, where issues raised by the two companies were considered and agitated, the determination has been in one voice, that the action of the two companies was unlawful and accordingly the moneys collected had to be refunded. There is not even a single order at any level, in favour of the two companies. The two companies were required to refund the money to its investors, because of the absolute illegality in its collection. 13. Because both the SEBI and the SAT were doubtful about the veracity of the receipt of the funds as alleged, they had directed the refund to the investors by way of cash "through" demand draft or pay order. During the course of final hearing of the appellate proceedings before this Court, submissions were heard over a period of three weeks during the summer vacation. We entertained a similar impression and suspicion. Firstly because, the two companies never made available any information sought from them. They alway....
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....s had rendered separate judgments, concurring with one another, on each aspect of the matter. During the course of writing the judgment, we had the occasion to minutely examine numerous communications, exchanged between the rival parties. That too had resulted in a different kind of understanding, about the controversy. For any other Bench to understand the nuances of the controversy determined through our order dated 31.8.2012, would require prolonged hearing of the matter. Months of time, just in the same manner as we had taken while passing the order dated 31.8.2012, would have to be spent again. Possibly the submissions made by the learned counsel seeking our recusal, was consciously aimed at the above objective. Was this the reason for the theatrics, of some of the learned Senior Counsel? Difficult to say for sure. But deep within, don't we all understand? It was also for the sake of saving precious time of this Court, that we decided to bear the brunt and the rhetoric, of some of the learned Senior Counsel representing the petitioner. We are therefore satisfied, that it would not be better, for another Bench to hear this case. II. Must judicial orders be obeyed at all ....
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....Court, is enforceable throughout the territory of India. But what is the scope of the law declared by the Supreme Court? And what are the kinds of orders it passes? The Supreme Court has been vested with the power to decide substantial questions of law, as also, to interpret the provisions of the Constitution of India. The Supreme Court exercises jurisdiction to determine, whether or not, laws made by Parliament or by a State Legislature, are consistent with the provisions of the Constitution of India. And in case any legislation is found to be enacted, in violation of the provisions of the Constitution of India, this Court is constrained to strike it down. The resultant effect is, that a law enacted by the Parliament or by a State Legislature, is declared illegal or void. After a Court's verdict has attained finality, not once, never and never, has any legislative body ever disobeyed or disrespected an order passed by a court, declaring a legislation, illegal or void. The Supreme Court also exercises original jurisdiction, to settle disputes between the Government of India and one or more States; or between the Government of India and any one State or more States on the one si....
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....sists, that a statutory provision struck down as unconstitutional, is valid? Or, if a decision rendered by the Supreme Court, in exercise of its original jurisdiction, is not accepted for compliance, by either the Government of India, and/or one or the other State Government(s) concerned? What if, the concerned government or instrumentality, chooses not to give effect to a Court order, declaring the fundamental right of a citizen? Or, a determination rendered by a Court to give effect to a legal right, is not acceptable for compliance? Where would we be, if decisions on private disputes rendered between private individuals, are not complied with? The answer though preposterous, is not far fetched. In view of the functional position of the Supreme Court depicted above, non-compliance of its orders, would dislodge the cornerstone maintaining the equilibrium and equanimity in the country's governance. There would be a breakdown of constitutional functioning. It would be a mayhem of sorts. 18. Before we advert to the question, whether this Court can order obedience of an order passed by it, it may be relevant to understand, the extent and width of jurisdiction, within the framew....
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.... is a superior Court of Record. This mandate is expressly contained in Article 129 of the Constitution of India. Since it is not the case of the petitioner before this Court, that there is some legislative or constitutional provision, curtailing the jurisdiction of this Court, to pass an order of the nature which is impugned through the instant writ petition, it stands acknowledged, that the above order has been passed by this Court, in legitimate exercise of its jurisdiction. 19. On the subject of obedience of orders passed by this Court, this Court recently in K.A. Ansari v. Indian Airlines Ltd., [2009] 2 SCC 164, observed thus: "The respondent Indian Airlines was obliged to obey and implement the ... direction. If they had any doubt or if the order was not clear, it was always open to them to approach the court for clarification of the ... order. Without challenging the ... direction or seeking clarification, Indian Airlines could not circumvent the same, on any ground whatsoever. Difficulty in implementation of an order passed by the Court, howsoever grave its effect may be, is no answer for its non-compliance." It is therefore that Article 142 of the Constitution of Indi....
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....iety and not in personam simpliciter. Courts are called upon to exercise jurisdiction with twin objects in mind. Firstly, to punish the persons who have disobeyed or not carried out orders of the court i.e. for their past conduct. Secondly, to pass such orders, including imprisonment and use the contempt jurisdiction as a tool for compliance of its orders in future. This principle has been applied in the United States and Australia as well. 34. Having found them guilty under the provisions of the 1971 Act and under Article 129 of the Constitution of India, we punish the Secretary, Transport and Commissioner, State Road Transport Authority of the State of Haryana as under: (i) They are punished to pay a fine of Rs.2,000/- each and in default, they shall be liable to undergo simple imprisonment for a period of fifteen days. (ii) We impose exemplary cost of Rs.50,000/- on the State of Haryana, which amount, at the first instance, shall be paid by the State but would be recovered from the salaries of the erring officers/officials of the State in accordance with law and such recovery proceedings be concluded within six months. The costs would be payable to the Supreme Court Leg....
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....lodge the cornerstone maintaining the equilibrium and equanimity, in the governance of this country. This has been the manner of understanding, of the power of this Court. In case there has been any ambiguity, let it now be understood, that this Court has the unlimited power (in fact, the sacred obligation), to compel obedience and observance of its orders. III. Facts reflecting the demeanour of the two companies, the petitioner, and other directors of SIRECL and SHICL, in the process of litigation, leading upto the passing of the order dated 31.8.2012. 20. During our entire careers as Advocates practicing before the High Court and before this Court, and as Judges of different High Courts, as Chief Justices of High Courts in different States, and also, as Judges of this Court, we have yet to experience a demeanour of defiance, similar to the one adopted by SIRECL or SHICL or their promoter and directors. The responsibility of the above defiance, which constituted a rebellious behaviour, challenging the authority of the SEBI, from investigating into the affairs of the two companies, required brazenness, flowing from unfathomable power and authority. It is therefore essential t....
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.... tender any reply, which could have been of help, to determine the authenticity of the allegations leveled in the complaints. 22. All the same, the SEBI again sought further details from Enam Securities Private Limited. The particulars of the information sought are being extracted herein below: "a. details regarding the filing of RHP of the said companies with the concerned RoC. b. date of opening and closing of the subscription list. c. details regarding the number of application forms circulated after the filing of the RHP with RoC. d. details regarding the number of applications received. e. the number of allottees f. list of allottees. g. the date of allotment. h. date of dispatch of debenture certificates etc. I. copies of application forms, RHP, pamphlets and other promotional material circulated." Enam Securities Private Limited, however, did not furnish the information sought. 23. The SEBI then directly sought the desired information from SIRECL and SHICL, through two separate letters dated 12.05.2010. Instead of furnishing the details of the information sought, the companies under reference....
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....ely preceding two financial years. 11. Date of dispatch of debenture certificate etc." The aforesaid summons were responded to by the companies, through two separate communications dated 13.09.2010, wherein the companies again adopted the stance, that the SEBI had no jurisdiction in the matter, and further, that the matter of jurisdiction was being examined by the Ministry of Corporate Affairs. Based on the above response, the companies required the SEBI to withdraw the above summons (dated 30.8.2010 and 23.9.2010). 27. On 30.09.2010, through separate letters issued by SIRECL and SHICL, the companies adopted the stance, that they did not have the complete information sought by the SEBI. This was indeed a shocking disclosure, by two statutory entities, holding thousands of crores of rupees of investment funds, deposited by crores of investors. Such like absurdities, were routine defences, adopted by the two companies. 28. The Chief Financial Officer of the Sahara India Group of Companies sought an opportunity of personal hearing. The SEBI (FTM) afforded the above sought opportunity of hearing, on 03.11.2010. During the course of hearing, it was impressed upon the Chief F....
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....ated/affiliated/connected to the Sahara Group of Companies, according to SEBI it was highly improbable, that the details and particulars of such friends, associate group companies, workers/employees and other individuals which were associated/affiliated/connected to the Sahara India Group of companies, was not available with them (for being passed over to SEBI)." wherein the following summary of inferences was recorded: "i. The issue of OFCDs by the companies have been made to a base of investors that are fifty or more in number. ii. The companies themselves tacitly admit the same as they have no case that funds have been mobilized from a group smaller than fifty. iii. A resolution under section 81(1A) of the Act does not take away the 'public' nature of the issue. iv. The filing of a prospectus under the Act signifies the intention of the issuer to raise funds from the public. Therefore, for the aforesaid reasons, the submission of the companies that their OFCD issues are made on private placement and do not fall under the definition of a public issue, is not tenable. The instances discussed above would prima facie suggest that the offer of OF....
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....uiry and their interest was protected by restraining the SEBI from passing any final orders. The matter was being heard finally under the expectation that the assurances given by the learned counsel for the petitioners would be honoured by the petitioners and the matter would be finished at the earliest. But the petitioners appear to have thought otherwise. The court's order cannot be allowed to be violated or circumvented by any means. We, therefore, do not find any ground to continue with the interim order, which is hereby vacated for the own conduct of the petitioners and for which they have to thank their own stars." (emphasis is ours) It is, therefore, apparent that the High Court had denied relief to the companies because of their non-cooperative attitude in the inquiry being conducted by the SEBI. It was also sought to be concluded against the two companies, that they had not honoured the commitments given to the Court. And further that, they were guilty of violating and circumventing Court's orders. The order passed by the High Court, is yet another instance of the defiance of the two companies, in allowing their affairs to be investigated. 32. The SEBI ....
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....d of India." (emphasis is ours) 34. The order of the SEBI (FTM) came to be assailed by the two companies, before the SAT. Even during the course of appellate proceedings, the companies did not disclose, the factual position. The companies, continued to contest the claim of the respondents, by relying on technicalities of law, i.e., on the same legal parameters, as had been adopted by them before the SEBI (FTM). The SAT by its order dated 18.10.2011 upheld the order passed by the SEBI (FTM) dated 23.6.2011. The SAT directed the appellant companies to refund the entire money collected from the investors, within six months (from the date of its order dated 18.10.2011). 35. Thereupon the matter was brought to this Court by way of appeals preferred by the two companies concerned, i.e., Civil Appeal nos. 9813 and 9833 of 2011. On 28.11.2011, this Court passed the following interim order:- "By the impugned order, the appellants have been asked by SAT to refund a sum of Rs.17,400 crores approximately on or before 28.11.2011. We extend the period upto 9.1.2012." It is, therefore, that this Court while issuing the interim directions, merely permitted the two companies co....
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....n that the material made available by the companies "... was totally unrealistic and could well be fictitious, concocted and made up...". While disposing of the appeals, filed by the two companies, this Court was not certain whether all the subscribers were genuine, and therefore, while concluding the matter, this Court in its order dated 31.08.2012, expressed the hope that all the subscribers were genuine. And so also, the subscription amount, as there was indeed a needle of suspicion on this subject as well. Accordingly this Court, in its order dated 31.8.2012 observed, that "... whole affair being doubtful, dubious and questionable...". These observations were recorded, because the actions of the appellants made the genuineness of the affairs of the two companies, questionable. 37. It is also important for us to record that the positive position adopted by the SEBI before this Court, during the disposal of Civil Appeal Nos.9813 and 9833 of 2011 was, that neither SIRECL nor SHICL ever provided details of its investors to the SEBI (FTM) or to the SAT. The two companies had, contested the proceedings initiated against them, only on technical grounds. We may record, that we were ....
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...., that the contemnors had maintained an unreasonable stand throughout the proceedings before the SEBI, SAT, High Court, and even before this Court. 39. According to the assertions made by SIRECL, it had collected an amount of Rs.19,400,86,64,200 through its open ended schemes between 25.4.2008 and 13.4.2011. Its collections, after taking into consideration redemptions, statedly stood at Rs.17,565,53,22,500 as on 31.8.2011. The above collection was allegedly made from 2,21,07,271 investors. It is not possible for us to narrate similar figures in respect of the amount collected by SHICL, or for that matter, the number of investors, because the records depicting the above details have never been disclosed by SHICL. The figures mentioned in the order dated 31.8.2012, are therefore, the figures provided by SIRECL and SHICL. All those figures are unauthenticated. In sum and substance, nothing was known. All assertions made by the two companies were subject to verification. The above factual position indicates the basis and the rationale, of the directions issued by this Court on 31.8.2012. We had simply required the two companies, to deposit the admitted investor funds. We had directe....
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....ani and Dr. Rajeev Dhawan, were lead counsel representing the contemnors in the contempt proceedings. They surely ought to have known better, because they had appeared in the contempt proceedings, in the defence of the contemnors. It is not for a Court, to tender any explanation to any litigant, or to his counsel. Accordingly, it should never be considered as obligatory, on the part of this Court, to tender any such explanation. Undoubtedly, it is open to a party to seek review, of an order passed by this Court, under Article 137 of the Constitution of India. Or to file a curative petition, after a review petition had been rejected, as laid down by this Court in Rupa Ashok Hurra's case (supra), if it is felt that a serious mistake had been committed. Just for this case, in order to depict the position in its correct perspective, we shall narrate in the succeeding paragraphs, the long rope which was extended to the petitioner (as also, to the other contemnors) to comply with the directions issued by this Court (on 31.8.2012 and 5.12.2012), before the order dated 4.3.2014 was passed. 42. Ever since the disposal of Civil Appeal nos. 9813 and 9833 of 2011, on the issue of compli....
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....panies, from the SEBI. When the SEBI declined, the concerned parties approached the SAT by preferring Appeal nos. 42 of 2013 (Subrata Roy Sahara v. SEBI), 48 of 2013 (SHICL v. SEBI), 49 of 2013 (SIRECL v. SEBI) and 50 of 2013 (Ashok Roy Chaudhary v. SEBI). For just the same purpose, Writ Petition no. 2088 of 2013, was filed before the High Court. We are at a loss to understand, how relaxation of an order passed by this Court, could have been sought either from the SEBI or the SAT, or for that matter, even from the High Court. How this abuse of process, was handled by us, stands recorded in a subsequent paragraph. 45. The SEBI filed Interlocutory Application nos. 72 and 73 of 2013. Notice in the above applications was issued for 8.5.2013. The above Interlocutory Applications pertained to proceedings initiated by the contemnors before the SAT and the High Court. The said proceedings were initiated by the contemnors, after the SEBI had declined to extend the time frame, fixed by this Court through its order dated 31.8.2012. Interestingly, the petitioner in the instant writ petition, had initiated one such proceeding in his own name (Appeal no. 42 of 2013, Subrata Roy Sahara v. SEBI....
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....ouncement of this order and it is for the SEBI (WTM) to examine the correctness of the details furnished. 3. We make it clear that if the documents produced by Saharas are not found genuine or acceptable, then the SEBI (WTM) would proceed as if the Saharas had not refunded any amount to the real and genuine subscribers who had invested money through RHPs dated 13.3.2008 and 16.10.2009. 4. Saharas are directed to furnish all documents in their custody, particularly, the application forms submitted by subscribers, the approval and allotment of bonds and all other documents to SEBI so as to enable it to ascertain the genuineness of the subscribers as well as the amounts deposited, within a period of 10 (ten) days from the date of pronouncement of this order. 5. SEBI (WTM) shall have the liberty to engage Investigating Officers, experts in Finance and Accounts and other supporting staff to carry out directions and the expenses for the same will be borne by Saharas and be paid to SEBI. 6. SEBI (WTM) shall take steps with the aid and assistance of Investigating Authorities/Experts in Finance and Accounts and other supporting staff to examine the documents produced by Saharas ....
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.... and also permit SEBI (WTM) to seek further directions from this Court, as and when, found necessary. The appeals were, therefore, dismissed with the aforesaid directions. 3. As indicated above, the present appeal is directed against the order of the Securities Appellate Tribunal, in the Appeal, being No.221 of 2012, which had been filed on 27th November, 2012, complaining that the SEBI had not accepted the documents, which were to be furnished to it by the appellants, since they were tendered a couple of days after the stipulated period. 4. We are not inclined to interfere with the substance of the order of the Tribunal impugned in this appeal. The only question which we are inclined to consider is whether the time for implementing the directions contained in the earlier order of 31st August, 2012, may be extended or not. 5. Mr. Gopal Subramanium, learned Senior Counsel, submitted that after the aforesaid order had been passed, certain amounts had been paid to investors and that according to them a sum of ' 5120/-Crores remained to be paid to SEBI, out of the amount already indicated, for the purpose of distribution to the investors. 6. Having heard learned Senior ....
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....opy of this order be made available to Mr. Justice B.N. Agrawal, who has been appointed by this Court, by tomorrow, to enable His Lordship to oversee the working of the Order of 31st August, 2012, and this Order passed by us today. 9. Having regard to the nature of the case, the appellants shall bear the costs of the respondent(s) in these proceedings. 10. In the event any excess payment is found to have been made by the appellants by virtue of the earlier Order and this Order, the same shall be refunded to the appellants by SEBI." (emphasis is ours) When the above order was passed by this Court, should the petitioner not have known, that the exercise of seeking extension of time had come to an end, and the first installment of Rs.10,000 crores had to be paid "within the first week of January, 2013"? 47. Even though responses to the contempt petitions referred to above, had been filed, and we were hearing learned counsel representing the contemnors, on the subject of contempt, we were also trying to cajole the two companies, into an understanding that they were obliged to comply with the orders dated 31.8.2012 and 5.12.2012. In our view, compliance of the above order....
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....re, that another attempt was made, consequent upon an offer made on behalf of the two companies, that other companies within the framework of the Sahara Group, would also make available to the SEBI, their unencumbered immovable properties. Is it possible for anyone to say, after the petitioner agreed to provide the list of immovable properties, that he was not aware of the nature of proceedings being conducted in this Court, or their gravity? Is it possible for the petitioner to say, that he was not aware of the reason, why these lists were being furnished to this Court? There can be no doubt, that it was abundantly clear to the petitioner, that the properties mentioned in the lists furnished, would be sold if necessary, to comply with this Court's order dated 31.8.2012. This was sufficient notice to the petitioner, of the seriousness of the situation. 49. Since our efforts of this Court, to secure the investors' interests, determined vide its order dated 31.8.2012, were being systematically frustrated this Court in order to demonstrate the seriousness of the issue, directed that "... the alleged contemnors (respondents) shall not leave the country without the permission....
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....longed). The Court was then constrained to record, that the order dated 28.10.2013 passed by this Court, had not been complied with, in its letter and spirit. It is, therefore, the Court took one further step to demonstrate to the petitioner, as also, the other contemnors, the seriousness of the issue, by ordering on 21.11.2013 "... that the Sahara Group of Companies shall not part with any movable or immovable property, until further orders..." Is it open to the petitioner to contend, that he had no notice, of the above Court proceedings? The business obligations of the petitioner, were bound to have been seriously affected, by the above order. The petitioner would have to be hugely unconcerned and disinterested, if he was still unaware of the nature of the ongoing contempt proceedings; and where the proceedings were leading to. The Court further directed (by the same order), that all the alleged contemnors would not leave the country, without the permission of this Court. By this, the Court restored its earlier order dated 28.10.2013. This order also had serious repercussions, for the petitioner. When the above order was passed, should the petitioner be permitted to contend, that....
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.... dealt with by us in this judgment (under the heading IX, "A few words, about the defence of redemption of OFCD's, offered by the two companies"). It is, therefore, that details about the conclusions on the alleged redemptions, are not being expressed here. All that needs to be stated is, that the two companies adopted the same tactics, as were adopted by them on all earlier occasions. No material worth the name, was ever produced before this Court, to establish the defence of redemption, even though ample opportunities were afforded to the petitioner to do so. The instant factual position, has been placed on the record of this case, only to demonstrate the efforts made by this Court, to cajole the contemnors (including the petitioner - Mr. Subrata Roy Sahara) into compliance of this Court's orders dated 31.8.2012 and 5.12.2012. In the process, the Court examined each and every defence raised on behalf of the two companies. The Court also examined alternative avenues by which, the compliance of the orders dated 31.8.2012 and 5.12.2012, could be ensured. In recording our conclusions, we may only state, that the petitioner only engaged eminent learned Senior Counsel, to avoid....
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.... be released forthwith and the amount deposited be released to S.E.B.I. We make it clear that this order is passed in order to facilitate the contemnors to further raise the balance amount so as to comply with the Court's Orders mentioned above." We are not, and have never been interested in the detention of the petitioner (and the two directors) in judicial custody. Our only purpose has been, to ensure compliance of this Court's orders dated 31.8.2012 and 5.12.2012. 54. Despite affording the contemnors close to 40 hearings, and despite putting them to terms which ought to have shown them, that leniency would not be extended forever, the contemnors have remained adamant, and steadfast. They made only one deposit of Rs.5,120 crores on 5.12.2012. Besides that amount, not a single paisa has been deposited by the contemnors. The thought, that repeatedly comes to our mind is, why the two companies had not been able to pay anything for the last about 1½ years (close to 17 months) from this Court's order dated 5.12.2012, whereas, in a period of three/four months (before our order dated 31.8.2012) SIRECL claims to have unilaterally refunded Rs.17,443 crores, and SH....
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....provisions of law. It is however interesting to notice, that in the written submissions handed over to us during the course of hearing, reference was actually made to such a provision. It was asserted in the written submissions prepared by Mr. Ram Jethmalani, that "No imprisonment for failure to comply with a decree or order for payment of money can be inflicted on a person liable to pay in compliance, without complying with the conditions of Section 51 proviso (b) of the CPC.". A contradiction in terms. But there were many such contradictions, even on facts. A new phase of advocacy seems to have dawned. 57. It is, therefore, that we shall first venture to set out the provisions contained in the Code of Civil Procedure, 1908 (hereinafter referred to as, the CPC), as also, the Code of Criminal Procedure, 1973 (hereinafter referred to as, the Cr.P.C.), to highlight the provisions whereunder, a Court may order arrest and detention, for the execution of a money-decree (or for the enforcement of a financial liability). 58. It is necessary, first of all, to place on record, the provisions of Sections 51, 55 and 58 of the CPC. The same are being extracted hereunder:- "51. Powers ....
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....ntion of persons ordered by the Courts of such district to be detained: Provided, firstly, that, for the purpose of making an arrest under this section, no dwelling-house shall be entered after sunset and before sunrise: Provided, secondly, that no outer door of a dwelling-house shall be broken open unless such dwelling-house is in the occupancy of the judgment-debtor and he refuses or in any way prevents access thereto, but when the officer authorised to make the arrest has duly gained access to any dwelling-house, he may break open the door of any room in which he has reason to believe the judgment-debtor is to be found: Provided, thirdly, that, if the room is in the actual occupancy of a woman who is not the judgment-debtor and who according to the customs of the country does not appear in public, the officer authorised to make the arrest shall give notice to her that she is at liberty to withdraw, and, after allowing a reasonable time for her to withdraw and giving her reasonable facility for withdrawing, may enter the room for the purpose of making the arrest: Provided, fourthly, that, where the decree in execution of which a judgment-debtor is arrested, is a decre....
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....e allowance: Provided, also, that he shall not be released from such detention under clause (ii) or clause (iii), without the order of the Court. (1A) For the removal of doubts, it is hereby declared that no order for detention of the judgment-debtor in civil prison in execution of a decree for the payment of money shall be made, where the total amount of the decree does not exceed two thousand rupees. (2) A judgment-debtor released from detention under this section shall not merely by reason of his release be discharged from his debt, but he shall not be liable to be re-arrested under the decree in execution of which he was detained in the civil prison." (emphasis is ours) A perusal of Section 51 of the CPC, leaves no room for any doubt, that for the execution of a decree for payment of money, an executing Court may order the arrest and detention of the judgment-debtor. Section 55 of the CPC lays down the manner and modalities to be followed, while executing an order of arrest or detention. A perusal of Section 58 of the CPC postulate the detention of a judgment-debtor for up to six weeks for the recovery of a meager amount, of less than Rs.5,000/-. Where the amount....
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....o pay the same to such person as the Magistrate may from time to time direct: Provided that the Magistrate may order the father of a minor female child referred to in clause (b) to make such allowance, until she attains her majority, if the Magistrate is satisfied that the husband of such minor female child, if married, is not possessed of sufficient means. Provided further that the Magistrate may, during the pendency of the proceeding regarding monthly allowance for the maintenance under this sub-section, order such person to make a monthly allowance for the interim maintenance of his wife or such child, father or mother, and the expenses of such proceeding which the Magistrate considers reasonable, and to pay the same to such person as the Magistrate may from time to time direct: Provided also that an application for the monthly allowance for the interim maintenance and expenses for proceeding under the second proviso shall, as far as possible, be disposed of within sixty days from the date of the service of notice of the application to such person. Explanation: For the purposes of this Chapter. (a) "minor" means a person who, under the provisions of the Indian Maj....
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....cement of order of maintenance. A copy of the order of maintenance or interim maintenance and expenses of proceeding, as the case may be, shall be given without payment to the person in whose favour it is made, or to his guardian, if any, or to the person to whom the allowance for the maintenance or the allowance for the interim maintenance and expenses of proceeding, as the case may be, is to be paid; and such order may be enforced by any Magistrate in any place where the person against whom it is made may be, on such Magistrate being satisfied as to the identity of the parties and the non-payment of the allowance, or as the case may be, expenses, due." (emphasis is ours) Rather than venturing an interpretation of Sections 125 and 128 of the Cr.P.C., in order to demonstrate the nature of orders, that can be passed thereunder, reference may be made to the decision rendered by this Court in Kuldip Kaur v. Surinder Singh, [1989] 1 SCC 405, wherein this Court observed as under:- "6. A distinction has to be drawn between a mode of enforcing recovery on the one hand and effecting actual recovery of the amount of monthly allowance which has fallen in arrears on the other. Sen....
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....h the sides. The appeal is allowed. The order passed by the learned Magistrate as confirmed by the High Court in exercise of its revisional jurisdiction to the effect that the amount of monthly allowance payable under Section 125 of the Code of Criminal Procedure is wiped out and is not recoverable any more by reason of the fact that respondent No. 1, Surinder Singh, was sent to jail in exercise of the powers under Section 125 of the Code of Criminal Procedure is set aside. In our opinion, respondent No. 1, husband of appellant, is not absolved of his liability to pay the monthly allowance by reason of his undergoing a sentence of jail and the amount is still recoverable notwithstanding the fact that the respondent No. 1 husband who is liable to pay he monthly allowance has undergone a sentence of jail for failure to pay the same. Our reasons for reaching this conclusion will follow. So far as the amount of monthly allowance awarded in this particular case is concerned, by consent of parties, we pass the following order in regard to future payments with effect from 15th August, 1986. We direct that respondent No. 1, Surinder Singh shall pay Rs. 275 (Rs.200 for the wife and....
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.... to Section 125(3), therefore did not extinguish or limit the entitlement of the Appellants to the maintenance granted by the learned trial court, as has been held by the High Court. 8. In view of the above, we are left in no doubt that the order passed by the High Court needs to be interfered with by us which we accordingly do. The order dated 21.04.2004 of the High Court is set aside and we now issue directions to the Respondent to pay the entire arrears of maintenance due to the Appellants commencing from the date of filing of the Maintenance Petition (M.C. No. 1 of 1993) i.e. 4.2.1993 within a period of six months and current maintenance commencing from the month of September, 2013 payable on or before 7 t h o f October, 2013 and thereafter continue to p ay the monthly maintenance on or before the 7th of each successive month. If the above order of this Court is not complied with by the Respondent, the learned Trial Court is directed to issue a warrant for the arrest of the Respondent and ensure that the same is executed and the respondent taken into custody to suffer imprisonment as provided by Section 1 25(3) Cr.P.C. ". (emphasis is ours) It is, therefore apparent, t....
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....on of the appeal. (3) When a Court imposes a sentence, of which fine does not form a part, the Court may, when passing judgment order the accused person to pay, by way of compensation, such amount as may be specified in the order to the person who has suffered any loss or injury by reason of the act for which the accused person has been so sentenced. (4) An order under this section may also be made by an Appellate Court or by the High Court or Court of Session when exercising its powers of revision. (5) At the time of awarding compensation in any subsequent civil suit relating to the same matter, the Court shall take into account any sum paid or recovered as compensation under this section. 421. Warrant for levy of fine. (1) When an offender has been sentenced to pay a fine, the Court passing the sentence may take action for the recovery of the fine in either or both of the following ways, that is to say, it may- (a) issue a warrant for the levy of the amount by attachment and sale of any movable property belonging to the offender; (b) issue a warrant to the Collector of the district, authorizing him to realise the amount as arrears of land revenue from the mov....
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....bserved that, Sub-section (1) of Section 357 provides power to award compensation to victims of the offence out of the sentence of fine imposed on accused. 18. In this case, we are not concerned with Sub-section (1). We are concerned only with Sub-section (3). It is an important provision but Courts have seldom invoked it. Perhaps due to ignorance of the object of it. It empowers the Court to award compensation to victims while passing judgment of conviction. In addition to conviction, the Court may order the accused to pay some amount by way of compensation to victim who has suffered by the action of accused. It may be noted that this power of Courts to award compensation is not ancillary to other sentences but it is in addition thereto. This power was intended to do something to reassure the victim that he or she is not forgotten in the criminal justice system. It is a measure of responding appropriately to crime as well of reconciling the victim with the offender. It is, to some extent, a constructive approach to crimes. It is indeed a step forward in our criminal justice system. We, therefore, recommend to all Courts to exercise this power liberally so as to meet the ends of....
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....y installments, may also be given. The Court may enforce the order by imposing sentence in default." ** ** ** 22. The law laid down in Hari Singh v. Sukhbir Singh (supra) was reiterated by this Court in the case of Suganthi Suresh Kumar v. Jagdeeshan, [2002] 2 SCC 420. The court observed: "5. In the said decision this Court reminded all concerned that it is well to remember the emphasis laid on the need for making liberal use of Section 357(3) of the Code. This was observed by reference to a decision of this Court in, 1989 Cri LJ 116 Hari Singh v. Sukhbir Singh. ** ** ** 10. That apart, Section 431 o f the Code has only prescribed that any money (other than fine) payable by virtue of an order made under the Code shall be recoverable "as if it were a fine". Two modes of recovery of the fine have been indicated in Section 4 21(1) of the Code. The proviso to the Sub-section....
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.... is different from a normal sentence of imprisonment. The court also delved into the factors to be taken into consideration while passing an order under Section 357(3) of the Cr.PC. This Court stated: "31. ...The term of imprisonment in default of payment of fine is not a sentence. It is a penalty which a person incurs on account of non-payment of fine. The sentence is something which an offender must undergo unless it is set aside or remitted in part or in whole either in appeal or in revision or in other appropriate judicial proceedings or "otherwise". A term of imprisonment ordered in default of payment of fine stands on a different footing. A person is required to undergo imprisonment either because he is unable to pay the amount of fine or refuses to pay such amount. He, therefore, can always avoid to undergo imprisonment in default of payment of fine by paying such amount. It is, therefore, not only the power , but the duty of the court to keep in view the nature of offence, circumstances under which it was committed, the position of the offender and other relevant considerations before ordering the offender to suffer imprisonment in default of payment of fine." (emphas....
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....at there can be no sentence of imprisonment for default in payment of compensation under Section 357(3) should fail." (emphasis is ours) It is therefore apparent, that even under the provisions of the Cr.P.C. there is an elaborate procedure prescribed, whereunder a person can be subjected to arrest and detention for the satisfaction of a fine or compensation (i.e., for the recovery of a financial liability). 61. From the above provisions of the CPC, as also, the Cr.P.C. it is apparent, that to enforce a financial liability ordered by a Court, one of the permissible means is, by way of arrest and detention. The submissions advanced by the learned counsel for the petitioner, that there is no provision, whereunder, an order of arrest and detention can be passed, for the execution of a money-decree, cannot therefore be accepted. It is also not possible for us to infer, that learned counsel were oblivious of the provisions contained in the civil/criminal procedure codes. It may be pointed out, that there are a large number of standalone statutory enactments, whereunder arrest and detention is ordered for the execution of a financial liability. VI. Whether it was imperative f....
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.... (c) that the decree is for a sum for which the judgment-debtor was bound in a fiduciary capacity to account. Explanation.- In the calculation of the means of the judgment-debtor for the purposes of clause (b), there shall be left out of account any property which, by or under any law or custom having the force of law for the time being in force, is exempt from attachment in execution of the decree." (emphasis is ours) Referring to Section 51 of the CPC, it was the pointed contention of the learned counsel, that the proviso to Section 51, lays down the preconditions for execution of a money-decree (by way of arrest and detention, in prison). While inviting our attention to the aforesaid proviso, it was asserted, that it was imperative for a Court, to afford an opportunity to show cause to a judgment-debtor, before he is committed to prison. Furthermore, while interpreting the above proviso, it was the submission of learned Senior Counsel, that such detention could be ordered, only and only, if the Court felt that the judgment-debtor had consciously obstructed or delayed the execution of a money-decree. Such active obstruction or delay, according to the learned counsel, ....
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....ment-debtor in obedience to notice or after arrest (1) When a judgment-debtor appears before the Court in obedience to a notice issued under rule 3 7, or is brought before the Court after being arrested in execution of a decree for the payment of money, the Court shall proceed to hear the decree-holder and take all such evidence as may be produced by him in support of his application for execution, and shall then give the judgment-debtor an opportunity of showing cause why he should not be committed to the civil prison. (2) Pending the conclusion of the inquiry under sub-rule (1) the Court may, in its discretion, order the judgment-debtor to be detained in the custody of an officer of the Court or release him on his furnishing security to the satisfaction of the Court for h is appearance when required . (3) Upon the conclusion of the inquiry under sub-rule (1) the Court may, subject to the provisions of section 51 and to the other provisions of this Code, make an order for the detention of the judgment-debtor in the civil prison and shall in that event cause him to be arrested if he is not already under arrest : Provided that in order to give the judgment-debtor an oppo....
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....uch as, it had exercised the power of an executing Court while passing the order dated 4.3.2014, whereas, no such power was vested in this Court. 65. In order to demonstrate, that it was not within the jurisdiction of this Court (in exercise of the power vested in it under Article 142 of the Constitution of India), to pass the impugned order dated 4.3.2014, learned Senior Counsel placed reliance on the judgment rendered by this Court in Supreme Court Bar Association's case (supra), wherein this Court had declared the legal position as under:- "47. The plenary powers of this court under Article 142 of the Constitution are inherent in the Court and are complementary to those powers which are specifically conferred on the court by various statutes though are not limited by those statutes. These powers also exist independent of the statutes with a view to do complete justice between the parties. These powers are of very wide amplitude and are in the nature of supplementary powers. This power exists as a separate and independent basis of jurisdiction, apart from the statutes. It stands upon the foundation, and the basis for its exercise may be put on a different and perhaps ev....
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....al No.535/2000 the appellant was working as an Electrical Superintendent in the Mangalore City Corporation. For the check period 1.5.1961 to 25.8.1987 he was found to have amassed assets disproportionate to his known sources of income. Charge-sheet accusing him of offences under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988 was filed on 15.3.1994. The accused appeared before the Special Court and was enlarged on bail on 6.6.1994. Charges were framed on 10.8.1994 and the case proceeded for trial on 8.11.1994. However, the trial did not commence. On 23.2.1999 the learned Special Judge who was seized of the trial directed the accused to be acquitted as the trial had not commenced till then and the period of two years had elapsed which obliged him to acquit the accused in terms of the directions of this court in Raj Deo Sharma v. State of Bihar [1998] 7 SCC 507 (hereinafter, Raj Deo Sharma-I). The State of Karnataka through the D.S.P. Lokayukta, Mangalore preferred an appeal before the High Court putting in issue the acquittal of the accused. The learned Single Judge of the High Court, vide the impugned order, allowed the appeal, set aside the order....
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....e of Criminal Procedure, 1973." It was, therefore the vehement contention of the learned counsel for the petitioner, that the order passed by this Court was clearly impermissible, not only under the provisions of the CPC, but also in terms of the Supreme Court Rules, 1966, coupled with the legal position declared by this Court. 66. Before endeavouring to deal with the submissions advanced at the hands of the learned counsel for the petitioner, on the basis of Section 51 of the CPC, and other allied provisions referred to hereinabove, it is relevant to keep in mind, that the orders dated 31.8.2012 and 5.12.2012 (the implementation whereof is subject matter of consideration), arose out of proceedings initiated by the SEBI (FTM), under the SEBI Act. In the context under reference, it is necessary to peruse Sections 11(3), 15U and 15Y of the SEBI Act. The same are accordingly being extracted hereunder:- "11(3) Notwithstanding anything contained in any other law for the time being in force while exercising the powers under 22 clause (i) or clause (ia) of sub-section (2) or sub-section (2A), the Board shall have the same powers as are vested in a Civil Court under the Code of Ci....
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....all have jurisdiction to entertain any suit or proceeding in respect of any matter which an Adjudicating Officer appointed under this Act or a Securities Appellate Tribunal constituted under this Act is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act." (emphasis is ours) A perusal of the above provisions reveals, that the functionaries under the SEBI Act, have been vested on some subjects, with the same powers, which are available to a Civil Court under the CPC. This necessarily leads to the inference, that other provisions of the CPC are per se, not applicable to the subjects not covered by the above provisions. Similarly, for the SAT, it has been specially provided, that the provisions of the CPC will be inapplicable to it, however, in its functioning it would be guided by the principles of natural justice. The above provision also vests in the SAT, some powers as are vested in a Civil Court. Obviously therefore, on the remaining subjects the provisions of the CPC would not be applicable. Since the provisions i....
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....n though the same may not be binding, insofar as the present controversy is concerned, yet if an order is passed keeping in mind the parameters laid down in the CPC, it would be sufficient to conclude that the rules of natural justice were fully complied with. We are of the view that the conditions contemplated in Section 51 of the CPC as preconditions, for the arrest and detention of a judgment-debtor for executing a Court's order, can be demonstrated as having been duly complied with, before this Court passed the impugned order dated 04.03.2014. The proviso to Section 51 of the CPC contemplates certain preconditions for execution of a money-decree by way of arrest and detention in prison. As already discussed above, on the satisfaction of any one of the preconditions, a money-decree can be executed, by ordering arrest and detention of the judgment-debtor in prison. 70. The first situation contemplated by the proviso to Section 51 of the CPC is, when the executing Court entertains the view, that the judgment-debtor is likely to abscond or leave the local jurisdiction of the Court, with the object of obstructing or delaying the execution of the decree. Insofar as the instant....
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.... dispose of the unencumbered immovable properties owned by the Sahara Group, to comply with the orders dated 31.8.2012 and 5.12.2012. In this background it may also be mentioned, that the official website of Sahara India, indicates the net worth of the Sahara Group as Rs.68,174/- crores. According to the above website, the Sahara Group has a land bank of approximately 36,631 acres, and the market value of the Group assets/potential earning is to the tune of Rs.1,52,518 crores. It is also not a matter of dispute, that the Sahara Group owns premium hotels in London (the Grosvenor House) and in New York (the New York Plaza). The above hotels, according to the Sahara Group, are valued at over several thousand crores of rupees. Be that as it may, after the passing of the orders dated 31.8.2012 and 5.12.2012, no payment has been made by the two concerned companies. The last deposit of Rs.5120 crores was made on 5.12.2012. It is, therefore apparent, that inspite of their means to pay, the two companies have refused and neglected to pay the amount due in its entirety (or even a substantial part thereof). Another postulated pre-condition for ordering the arrest and detention of a judgment-d....
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....of OFCD's, offered by the two companies". The above explanation may seem to be acceptable to the contemnors, but our view is quite the converse. It is not possible for us to accept, that the funds amounting to thousands of crores, were transacted by way of cash. We would, therefore, on the face of it, reject the above explanation tendered on behalf of the two companies. It is necessary to notice, that one of the preconditions contemplated under the proviso to Section 51 postulates, that if the judgment-debtor dishonestly transfers, conceals or removes any part of his property, or commits any act of bad faith in relation to his property, the concerned executing Court can enforce a money-decree, by way of arrest and detention. Since a farcical explanation was tendered by the two companies in respect of receipt, payment and transfer of thousands of crores of rupees by way of cash, without reference to any banking transactions whatsoever, it was legitimate to infer dishonest transfers, as well as, bad faith, on behalf of the contemnors. Therefore, for yet another reason, it was open for this Court, to order arrest and detention of the contemnors (including the present petitioner), ....
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.... alleged contemnors shall not leave the country without the permission of this Court.". The above restraint order was subsisting when the petitioner's order of arrest and detention was passed. Furthermore, having expressed its satisfaction, that the information furnished by the contemnors (including the petitioner) did not establish the stance adopted by them, this Court by its order dated 20.2.2014 noticing the defiant and non-cooperative attitude of the contemnors, had directed "the personal presence of the alleged contemnors and the directors of the respondent companies in Court on February 26, 2014 at 2.00 pm..." On 25.2.2014, a mention was made on behalf of the petitioner herein, for exemption from personal presence on 26.2.2014. The same was declined. Despite the above refusal, Mr. Subrata Roy Sahara did not enter appearance before this Court on 26.2.2014. The other directors were present. Thus there is no room for any doubt, that the above provision was rendered inapplicable, insofar as the petitioner is concerned. A perusal of rule 40 of Order XXI of the CPC reveals, that the procedural requirements expressed in the same, would come into play inter alia, after the perso....
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....ey decree. Reliance was placed on the following observations recorded in the above judgment:- "10. Equally meaningful is the import of Article 21 of the Constitution in the context of imprisonment for non-payment of debts. The high value of human dignity and the worth of the human person enshrined in Article 2 1 , read with Articles 14 and 1 9 , obligates the State not to incarcerate except under law which is fair, just and reasonable in its procedural essence. Maneka Gandhi's case [1978] 1 SCC 248, as developed further in Sunil Batra v. Delhi Administration, [1978] 4 SCC 494, Sita Ram and Ors. v. State of U.P., [1979] 2 SCC 656, and Sunil Batra v. Delhi Administration (W.P. no. 1009 of 1979 decided on December 20, 1979), lays down the proposition. It is too obvious to need elaboration that to cast a person in prison because of his poverty and consequent inability to meet his contractual liability is appalling. To be poor, in this land of daridra narayana, is no crime and to recover debts by the procedure o f putting one in prison is too flagrantly violative of Article 21 u nless there is proof of the minimal fairness of his wilful failure to pay in spite of his sufficient m....
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....ent pressures of their indebtedness, or alternatively whether they have had the ability to pay but have improperly evaded or postponed doing so or otherwise dishonestly committed acts of bad faith respecting their assets. The court will take note of other honest and urgent pressures on their assets, since that is the exercise expected of the court under the proviso to Section 51. An earlier adjudication will bind if relevant circumstances have not materially changed." (emphasis is ours) We have given our thoughtful consideration to the submissions advanced at the hands of the learned counsel for the petitioner, based on the judgment rendered by this Court in Jolly George Verghese's case (supra). We are of the view, that the conclusions to which our attention has been invited, must be viewed with reference to the factual matrix, as also, the actual consideration which had resulted in the above determination. In the instant view of the matter, the factual matrix taken into consideration emerges from the following narration in Jolly George Verghese's case (supra):- "1. This litigation has secured special leave from us because it involves a profound issue of constituti....
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....f the debts or their mala fide refusal, if any, to discharge the debts. The question is whether under such circumstances the personal freedom of the judgment-debtors can be held in ransom until repayment of the debt, and if Section 51 read with Order 21, Rule 37, C.P.C. does warrant such a step, whether the provision of law is constitutional, tested on the touchstone of fair procedure under Article 21 and in conformity with the inherent dignity of the human person in the light of Article 11 of the International Covenant on Civil and Political Rights. A modern Shylock is shackled by law's humane handcuffs. ** ** ** 9. We concur with the Law Commission in its construction of Section 51 C.P.C. It follows that quondom affluence and current indigence without intervening dishonesty or bad faith in liquidating his liability can be consistent with Article 11 of the Covenant, because then no detention is permissible under Section 51, C.P.C." (emphasis is ours) Having perused the judgment rendered by this Court in Jolly George ....
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....e passed a draconian order". Learned Senior Counsel in the above context, asserted, that this Court had made a "...terrible terrible mistake..., which needed to be corrected...". In this behalf his submission was, that "...to err was human..." and his advice was, that "... it is imperative for you, to correct this blunder...". In supporting the above contention advanced by Dr. Rajeev Dhawan, Mr. Ram Jethmalani, learned Senior Counsel, also representing the petitioner, submitted, that "... the whole Bar was shell-shocked...", when this Court out of the blue, directed the arrest of the petitioner, without affording him any opportunity to state his case. It was the contention of the learned Senior Counsel, that the order passed by this Court on 4.3.2014 was "... extremely disturbing...". It was submitted, that there was no hearing of the matter. Suddenly on the conclusion of the day's hearing on 4.3.2014, "... when there was still much to be said...", a judicial order was passed, to the detriment of the petitioner "... depriving him of his civil liberties...". The order, it was contended, "... was an absolute nullity...". Learned counsel advised the Court, "... humility was the gr....
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....on, that what was sought to be conveyed through erudite grandiloquence, was factually correct. The question therefore that needs to be considered is, whether the above submissions made by the learned counsel for the petitioner, are based on a truthful foundation. If their assertions are correct, we would concede at the beginning, that their inferences would have to be accepted as correct. 80. Mr. Arvind Datar, learned Senior Counsel appearing for the SEBI would contend, that there was nothing farther from the truth, in what had been submitted on behalf of the petitioner. We were taken through piles of pleadings, paper work, and orders passed by this Court, to demonstrate an express written notice to the petitioner, his written response, numerous opportunities of hearing afforded to learned Senior Counsel representing him, and finally, even an opportunity of personal oral hearing to the petitioner - Mr. Subrata Roy Sahara, himself. 81. Before examining the veracity of the submissions advanced by the learned Senior Counsel for the petitioner, we would unhesitatingly concede, that they were correct on one aspect of the matter. That it was an extraordinary situation. For many man....
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....; and (g) pass such other and/or further order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case." (emphasis is ours) In view of the above prayers made in Interlocutory Application nos. 68 and 69 of 2013, wherein notice was issued to the petitioner, can it be said, that the petitioner had no notice? Can it not be said, that there was a pending Interlocutory Application expressly, seeking his arrest and detention? We are fully satisfied, that the petitioner - Mr. Subrata Roy Sahara had due notice, as also, that he was fully alive to the basis and reasons, why his arrest and detention (along with the directors of the two companies) was being sought. 83. The said Interlocutory Application nos. 68 and 69 of 2013 were taken up for consideration on 22.4.2013. Mr. Gaurav Kejriwal, Mr. U.U. Lalit, and Mr. C.A. Sundaram, learned Senior Counsel appearing for the contemnors undertook to file their response to the above applications, within one week. Accordingly, liberty was granted to Mr. Subrata Roy Sahara (and the other contemnors) to file their reply affidavits by 29.4.2013. The petitioner herein - Mr. Subrata Roy Sahara, actually f....
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....e reasons, why his arrest and detention was sought, but he had availed of the opportunity to respond to the same in writing. We are fully satisfied, that the petitioner - Mr. Subrata Roy Sahara had a notice depicting the reasons why his arrest and detention was sought, and an opportunity to carefully respond to the same, by stating his defence in writing. 84. The matter was thereafter posted for hearing on 2.5.2013. Having found, that the petitioner - Mr. Subrata Roy Sahara (and the other contemnors) were engaging themselves in unnecessary litigation arising out of our order dated 31.8.2012, the following interim order came to be passed on 2.5.2013:- "We are inclined to stay all further proceedings in Appeal Nos. 42/2013 (Subrata Roy Sahara v. SEBI), 48/2013 (SHICL v. SEBI), 49/2013 (SIRECL v. SEBI) and 50/2013 (Ashok Roy Chaudhary & Ors. v. SEBI) pending before the Securities Appellate Tribunal, Mumbai, and in Writ Petition No. 2088/2013 pending before the High Court of Judicature at Allahabad, Lucknow Bench, since we are examining the question, whether the respondents have complied with the various conditions stipulated in our judgment dated 31st August, 2012." 85. Inter....
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....estment Services Limited. The same is taken on record and is marked as 'Annexure-A'. Mr. Sundaram, on the basis of the said letter and on instructions received from the Sahara Group of Companies, submitted that the alleged contemnors are willing to make available to SEBI the original title deeds of unencumbered properties, worth '20,000 crores, along with proper valuation reports, within a period of three weeks from today. SEBI, in turn, will examine the same and make their response, which shall be considered by this Court on the next date of hearing. Till the above direction is complied with to the satisfaction of SEBI, the alleged contemnors (respondents) shall not leave the country without the permission of this Court." (emphasis is ours) It is in furtherance of the prayer (f) made in Interlocutory Application nos. 68 and 69 of 2013, that the above order came to be passed on 28.10.2013, restraining the petitioner (and the other contemnors) from leaving the country, without this Court's permission. This Court through its above order, issued its first disciplinary order. We had hoped, that the above order would convey to the contemnors, the seriousness ....
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....the CRZ Zone, where no construction whatsoever was permissible. An extract of the order dated 21.11.2013 is reproduced hereunder:- "We are convinced that the order dated 28.10.2013 passed by this Court has not been complied with in its letter and spirit. In such circumstances, we direct that the Sahara Group of Companies shall not part with any movable or immovable properties until further orders. We further direct that all the alleged contemnors shall not leave the country without the permission of this Court." (emphasis is ours) This was another order, in the series of corrective and deterrent orders passed by this Court, in the process of enforcement of our orders dated 31.8.2012 and 5.12.2012. This Court through its above order, restrained the entire Sahara Group of Companies, from transferring any of their movable or immovable properties. Needless to mention, that the above order was also clearly passed in furtherance of the prayer made in Interlocutory Application nos. 68 and 69 of 2013, which was actually listed on the above date of hearing. This was another order in the series of orders passed by this Court, which would have certainly made the petitioner aware, tha....
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.... the abovesaid details. The demeanour of the two companies has remained the same, throughout. They have never supplied any investor related information. Not even such information, which would have substantiated their own defence. It is this repeated behaviour, that has given us the repeated impression, that the submissions advanced on behalf of the two companies, were just a pack of lies. The fact that the companies had not furnished the above details, was brought to our notice by Mr. Datar on 9.1.2014, prompting us to pass an express order directing the two companies, as also, the alleged contemnors including the present petitioner - Mr. Subrata Roy Sahara, to furnish the required particulars. The above order discloses the games the two companies, and the alleged contemnors, have been playing with this Court. 90. Thereafter the matter was taken up for consideration on 28.1.2014, when we passed the following order:- ""Heard Mr. Ram Jethmalani, learned Senior Counsel and Mr. Arvind P. Datar, learned Senior Counsel. Mr. Datar submitted that the Saharas have not disclosed the details as to when the refund was made. Reference was made to pages 6 to 9 of the reply affidavit fil....
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.... upon bank accounts of Sahara India as and when produced." (emphasis is ours) In a similar Appeal no. 48 of 2013, filed by SHICL before the SAT, exactly the same stance (as adopted by SIRECL, and extracted above), was taken. Even though the position adopted by the two companies was, that verification of redemption of OFCD's could be established from bank accounts of Sahara India Limited, the said bank accounts depicting the said transactions were not being disclosed. A perusal of the above order dated 28.1.2014 reveals, that Mr. Ram Jethmalani, learned Senior Counsel sought time to examine the matter, so as to be able to come out, with an appropriate response. On 20.2.2014, conflicting stands were taken by learned counsel appearing for the alleged contemnors (including the present petitioner). One learned counsel, went to the extent of contending, that the position adopted by the two companies in the two appeals, was the result of a typographical error. All along, most ridiculous and absurd defences were raised. Our impression is, that this was done to avoid furnishing of the information sought. Maybe there was no information to supply. 91. This Court was also convince....
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...., whilst the other alleged contemnors were present in Court, Mr. Subrata Roy Sahara, the petitioner herein, did not enter appearance. This Court passed the following order on 26.2.2014, to enforce the presence of the petitioner Mr. Subrata Roy Sahara on the next date of hearing, i.e., on 4.3.2014:- "This Court passed an order on February 20, 2014 directing the personal presence of the alleged contemnors and the Directors of the respondent companies today, i.e. on February 26, 2014 at 2.00 p.m. On our directions, Mr. Ashok Roy Choudhary, Mr. Ravi Shankar Dubey and Smt. Vandana Bhargava are present in Court today. Even though, Mr. Ram Jethmalani, learned Senior Counsel appearing for the alleged contemnors, made a mention yesterday, i.e. on February 25, 2014, before this Bench for dispensing with the personal presence of Mr. Subrata Roy Sahara, alleged contemnor No.5, that request was specifically turned down by this Court. Today, when the matter is taken up, same request was made by Mr. Jethmalani, by moving an application, which was supported by a medical certificate. The said medical certificate was issued by Sahara Hospital and, in our view, the factual position indicated....
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....een passed in furtherance of express prayers made to this Court, in Interlocutory Application nos. 68 and 69 of 2013. 95. We find each one of the submissions advanced by Mr. Arvind Datar on behalf of the SEBI, as fully justified. We have recorded our own observations, at the end of each of the above paragraphs, dealing with the factual position brought to our notice, by the learned Senior Counsel for the SEBI. We are satisfied, that Mr. Subrata Roy Sahara was well aware of the proceedings before this Court. He was well aware of the prayers made in Interlocutory Application nos. 68 and 69 of 2013. He filed his written response thereto, by way of an affidavit. The petitioner was aware of the seriousness of the issue, on account of various restraining, corrective and deterrent orders passed by this Court, from time to time, each graver than the previous ones. He remained unaffected to all the efforts made by this Court, to enforce refund of the moneys collected by the two companies, to those who had invested in their OFCD's, along with interest, in terms of this Court's orders dated 31.8.2012 and 5.12.2012. It is, therefore, that this Court was left with no other option, bu....
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....e petitioner argued, that the petitioner had been confined to Tihar Jail, since 4.3.2014, without any justification. It was submitted, that the incarceration of the petitioner was void, and with the march of events, during the course of hearing of the instant petition, it had further become clear to the petitioner, that it was likely that the petitioner would continue to remain in custody for an indefinite period. In this behalf it was submitted, that it was the petitioner's impression that the Judges hearing the matter, wished to enforce the orders dated 31.8.2012 and 5.12.2012, at all costs. It was submitted, that the above orders had been substantially complied with, yet without following the rules of natural justice, the petitioner has been accused of not complying with the orders of this Court. It was submitted, that the petitioner's incarceration vide order dated 4.3.2014 was a complete nullity, and it was the duty of this Court, to terminate his unlawful detention, and to order his release forthwith. 99. It was the pointed submission of the learned counsel for the petitioner, that during the course of hearing (of Contempt Petition (Civil) nos. 412 and 413 of 2012 ....
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....no such submission was advanced, during the course of hearing. It was therefore, the contention of the learned counsel for the petitioner, that the petitioner was of the firm belief, that in view of our pre-disposition, legitimate verification of the documents furnished by the two companies to the SEBI, cannot be expected. It was submitted, that the situation created by this Court was such, that the petitioner is in no position, even to make an effort to find a compromise solution to the problem. It was also the assertion of the learned counsel for the petitioner, that the impugned order recited, that the respondents/contemnors (including the petitioner herein) were heard, whereas, the respondents were called upon when only a few minutes were left for this Court to rise on 4.3.2014. While acknowledging, that all the four respondents (including the present petitioner) were individually asked, as to whether they had anything to say, they were not informed what they were asked to respond to. Accordingly, all the respondents who had appeared before this Court on 4.3.2014, were fully justified in stating to this Court on 4.3.2014, that their response was the same as had been submitted t....
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....l decisions and judicial administration that judges should be able to act impartially, objectively and without any bias. In such cases the test is not whether in fact a bias has affected the judgment; the test always is and must be whether a, litigant could reasonably apprehend that a bias attributable to a member of the tribunal might have operated against him in the final decision of the tribunal. It is in this sense that it, is often said that justice must not only be done but must also appear to be done." (emphasis is ours) On the issue, that justice must not only be done, but must also appear to be done, this Court in the above judgment, had relied on the judgment rendered in Frome United Breweries Co. v. Bath Justices, [1926] AC 586, and thereupon, had observed as under:- "As Viscount Cave L.C. has observed in From United Brewerses Co. v. Bath Justices, "this rule has been asserted not only in the case of Courts of Justices and other judicial tribunals but in the case of authorities which, though in no sense to be called Courts, have to act as judges of the rights of others ". In dealing with cases of bias attributed to members constituting tribunals, it is necessary....
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....alf of the justices that they reached their decision without consulting the acting clerk and that the acting clerk had in fact abstained from referring to the case. This affidavit was accepted as true by all the learned judges who heard the case and yet the conviction was quashed. "The question is" observed Lord Hewart C.J. "whether the acting clerk was so related to the case in its civil aspect, as to be unfit to act as a clerk to the justices in the criminal matter" and the learned judge added that "the answer to that question depends not upon what exactly was done but upon what might appear to be done. Nothing is to be done which creates even a suspicion that there has been an improper interference in the course of justice." Lush J. who agreed with Lord Hewart C.J. likewise accepted the affidavit made on behalf of the justices but observed, "that they have placed themselves in an impossible position by allowing the clerk in those circumstances to retire with them into their consultation room." (emphasis is ours) This Court in Manak Lal's case (supra) also placed reliance on Rex v. Essex Justices, Ex parte Perkins, (1927) 2 KB 475. The conclusions recorded in the latter....
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.... proposals offered by the petitioner for his release from detention, had been rejected by us, one after the other. According to learned counsel, the Bench had demonstrated its rigidity to such an extent, that the petitioner finds "no play in the joints". In other words, according to learned counsel, we were willing to accept nothing short of, what we had already ordered. The Bench according to learned Senior Counsel, had repulsed all alternative reasonable grounds of compromise. Learned counsel then invited our attention to an order passed by us on 26.3.2014. The said order is being extracted hereunder:- "We have gone through the fresh proposal filed on 25.03.2014. Though the same is not in compliance with our Order dated 31.08.2012 or the Order passed by the three-Judge Bench of this Court on 05.12.2012 in Civil Appeal No.8643 of 2012 and on 25.02.2013 in I.A. No.67 of 2013 in Civil Appeal No.9813 of 2011 with I.A. No.5 of 2013 in Civil Appeal No.9833 of 2011, we are inclined to grant interim bail to the contemnors who are detained by virtue of our order dated 04.03.2014, on the condition that they would pay the amount of Rs.10,000 crores -out of which Rs.5,000 crores to be dep....
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.... passed the order dated 5.12.2012. It needs to be clearly understood, that the order dated 31.8.2012 read with the order dated 5.12.2012 is final and binding, and no proceedings are pending before this Court, either at the hands of the two companies, or the petitioner herein, for their reconsideration on merits. We have neither the jurisdiction, nor the authority to relax the terms and conditions of the above orders. In fact, we would be committing contempt if we were to, on our own, interfere with the above directions. As a matter of fact, it is not open to us, to relax the order dated 5.12.2012, which was passed by a three-Judge Division Bench, requiring the contemnors to deposit the first installment of Rs.10,000 crores, in the first week of January 2013. 105. On 6.2.2013, we issued notice, in Contempt Petition (Civil) Nos. 412 and 413 of 2012. On 24.7.2013, we issued notice, in Contempt Petition (Civil) No. 260 of 2013. We heard the above contempt petitions on numerous dates (details whereof have already been enumerated above). No allegation of bias was ever levelled by any of the contemnors, not even by the petitioner herein, before the hearing of the present writ petition.....
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....been adjudged). For the same reason, there is no scope for a compromise. Issues of compromise arise between parties, while merits of rival claims are pending. The dispute between the parties has already been settled, and contempt by way of breach has already been admitted. The question of compromise does not arise at all. We therefore reject all the above submissions advanced by the learned counsel for the petitioner. 107. We shall now deal with the substance, and the import, of the judgments relied upon. It is not the case of the petitioner, that we have any connection with either the two companies under reference, or any other company/firm which constitutes the Sahara Group. We may state, that neither of us has even a single share with the two concerned companies or with any other company/firm comprising of the Sahara Group. In order to remove all ambiguity in the matter we would further state, that neither of us, nor any of our dependent family members, own even a single share in any company whatsoever. Neither of us has been assisted in this case, for its determination on merits by any law clerk, intern or staff member, while hearing, dealing with or deciding the controversy....
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....ree-Judge Division Bench. The three-Judge Division Bench while disposing of the matter on 5.12.2012, declined to accept the prayer made by the two companies, for taking into consideration the refund already made by way of redemptions to investors. At the time of disposal of Writ Petition (Civil) no. 527 of 2012 (and Civil Appeal no. 8643 of 2012) on 5.12.2012, it was directed, that the demand draft in the sum of Rs.5,120 crores, which had been produced before this Court on 5.12.2012, be immediately handed over. It was concluded, that the balance amount of Rs.17,400 crores, together with interest at the rate of 15% per annum, was still payable (even after the deposit of above Rs.5,120 crores). A direction was accordingly issued to pay the first installment of Rs.10,000 crores within the first week of January, 2013. The application filed by the petitioner for extension of time to make the above deposit, was rejected by a three-Judge Division Bench of this Court on 25.2.2013. The direction to pay the first installment of Rs.10,000 crores, by the first week of January, 2013, therefore, assumed finality. We have neither the authority nor the jurisdiction to entertain any prayer for redu....
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.... of this Court's orders (dated 31.8.2012 and 5.12.2012). Repeatedly, during Court hearings, we have been assuring learned counsel for the petitioner, that individual accounts will be permitted to be operated, if the deposits therein are to be transferred to the SEBI. Likewise, orders pertaining to particular immovable properties, will be lifted, if the sale proceeds thereof are to be utilized in honouring the commitment to refund investors' deposits (with 15% interest). None of the contemnors, have made any proposal, in consonance with the above liberty. Acceptance of the proposals is just not possible, in the teeth of the order dated 5.12.2012, passed by a three-Judge Division Bench, requiring the two companies to make a deposit of Rs.10,000 crores in the first week of January, 2013. By now, about 17 further months have elapsed without the petitioner and the two companies having made any deposit whatsoever. Within the framework of the requirement depicted in the order dated 5.12.2012, we, by our own order dated 26.3.2014 (extracted above), softened the modus of payment. It is, therefore, not possible for us to accept, that there has been "no play in the joints" for the enf....
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.... SEBI). We required him to invite our attention, to documents indicating disclosure of the above information. His ploy stood exposed, when no material depicting disclosure of names, and other connected details of SHICL to the SEBI, could be brought to our notice. That apart, what is essential to record is, that till date SHICL has never ever supplied investor related details to the SEBI. A fact about which there is now no ambiguity, specially after learned Senior Counsel filed the two volumes of papers referred to above. The above factual position remained unaltered before the SAT and even before this Court. Does it lie in the mouth of learned Senior Counsel to assert, that unjustified conclusions had been recorded against the two companies, without any basis? 111. Dr. Rajeev Dhawan, learned Senior Counsel also accused us of having a pre-disposition in respect of the controversy. This predisposition, according to him, appeared to be on the basis of a strong commitment towards the "other side". This assertion was repeated several times during the hearing. But, which is the other side? In terms of our order dated 31.8.2012, the only gainer on the other side, is the Government of I....
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....nt, the petition is being adjourned. The petitioner wants to place as application for transfer on record. He may file it in the Registry, if so advised. During the course of arguments yesterday, two sealed envelopes relating to polling booth Nos. 28 and 31 had been opened in the presence of the parties and their Counsel at the time when the report of the Commissioner who carried out test checking was being considered. These open envelopes had remained in my custody in my Almirah under lock and key. Since the case is now being adjourned, these open envelopes be resealed and the same be handed over to the Additional Registrar (Judicial) alongwith other sealed envelopes." 33. Thereafter, the appellant as already noticed, filed a transfer petition in this Court which was dismissed on 30.8.1993. The transfer petition like the application (supra) cast aspersions on the learned Judge in the discharge of his judicial functions and had the tendency to scandalise the Court. It was an attempt to brow beat the learned Judge of the High Court and cause interference in the conduct of a fair trial. Not only are the aspersions derogatory, scandalous and uncalled for but they also tend to bri....
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....n the integrity, ability, impartiality or fairness of a Judge in the discharge of his judicial functions as it amounts to an interference with the dues course of administration of justice." (emphasis is ours) The observations recorded in the above judgment are fully applicable, to the mannerism and demeanour of the petitioner - Mr. Subrata Roy Sahara and some of the learned Senior Counsel. We would have declined to recuse from the matter, even if the "other side", had been a private party. For, our oath of office requires us to discharge our obligations, without fear or favour. We therefore also commend to all Courts, to similarly repulse all baseless and unfounded insinuations, unless of course, they should not be hearing a particular matter, for reasons of their direct or indirect involvement. The benchmark, that justice must not only be done but should also appear to be done, has to be preserved at all costs. IX. A few words, about the defence of redemption of OFCD's, offered by the two companies: 113. The SEBI (FTM) vide order dated 23.6.2011 passed the following directions:- "1. The two Companies, Sahara Commodity Services Corporation Limited (earlier known ....
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....urt passed the following interim order:- "By the impugned order, the appellants have been asked by SAT to refund a sum of Rs.17,400 crores approximately on or before 28.11.2011. We extend the period upto 9.1.2012." The above interim order was continued indefinitely, by this Court on 9.1.2012. The direction to refund, therefore, stood eclipsed. It is necessary to understand the cumulative effect of the interim orders passed on 28.11.2011 and 9.1.2012. The above orders need to be interpreted, by keeping in mind the two affidavits dated 4.1.2012 filed by the two companies (in Civil Appeal nos. 9831 and 9833 of 2011). The above affidavits were filed in compliance of this Court's order, requiring the two companies to put on record, the manner in which the companies had applied the funds collected from the investors. This Court was informed that the funds were safe as they were either invested directly or indirectly, in real estate projects, or were held as current assets/cash and bank balances (as development rights on land and projects, and advances under joint ventures etc.). Believing the factual position depicted in the two affidavits, this Court was satisfied, that the in....
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.... Housing Bond 180 120 179 It would be relevant to mention, that in furtherance of the terms and conditions attached to the different kinds of bonds, it was acknowledged, that except for Nirman Bonds issued by SIRECL, no other bond could be redeemed before the year 2013. The earliest redemption of the bonds, could have been made in 2013. The above factual position was expressed by the two companies in separate affidavits dated 4.1.2012 (filed before this Court). The affidavits in unmistakable terms also clearly narrated, that only one out of the six different types of bonds issued, by the two companies was partially redeemable, in the financial year 2012-13. The companies also confirmed in their above affidavits, that the total amount which would become redeemable, towards the end of the financial year 2012-13, was only Rs.351 crores. There was therefore, no question of redeeming thousands of crores of rupees of deposits made towards the above OFCD's, in 2012 itself. It needs to be understood, that a debenture (OFCD) is a contract between a company and the debenture holder. It sets out the terms and conditions on the basis of which, the debenture certificate, which....
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....0 2. Sahara Q Shop 2411.90 When asked about the manner in which the aforesaid companies, had forwarded the above mentioned payments to the two companies, the response was, that the above amounts were never released to the two companies. The case set up was, that the amounts were transferred to Sahara India (Firm). When asked to explain the manner in which the companies had forwarded the funds to Sahara India (Firm), the submission was, that the companies had collected the funds by way of cash, and had forwarded the same to Sahara India (Firm), by cash. And Sahara India (Firm) had then directly made refunds to the investors. When proof of the same was sought, the submission advanced on behalf of the two companies was, that the above transfers were not made through banking channels, and therefore banking transactions were not available to establish the same. When asked how the amounts were disbursed to the investors concerned, it was submitted, that about 95% of the above payments to the investors, were also made by way of cash. To demonstrate the receipts and payments of the funds by way of cash, learned counsel representing the contemnors (including the petitioner herei....
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....ry 09, 2014 at 2.00 p.m." (emphasis is ours) 117. The fact that the companies had not furnished the above details, was brought to our notice by Mr. Arvind Datar on 9.1.2014. But the audacity and the fearlessness of the two companies is apparent, from the reason expressed to this Court, for not furnishing the above information. We were informed, that we had not passed any express direction to the companies, to furnish the information, therefore the companies were not obliged to provide the information to the SEBI. Ordinarily, an honest person would immediately provide the information sought, to obviate any adverse impression. Moreover, the SEBI had not only the authority, but every reason to seek the said information. The above stance adopted by the two companies, therefore, prompted us on 9.1.2014 to pass an express order directing the two companies, as also, the alleged contemnors (including the present petitioner), to furnish the required particulars. The order dated 9.1.2014 is being extracted below:- "Heard counsel on either side. Mr. C.A. Sundaram, learned Senior Counsel appearing for one of the alleged contemnors, submitted that earlier this Court on December 11, ....
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.... 5. Kirit City Homes Ltd. 44.05 Similarly, SEBI requires Saharas to show the following payments made on behalf of Sahara Housing Investment Corporation Ltd. (SHICL) (partnership firm), by the following firms, as mentioned below:- 1. SICCL 2479.00 2. Sahara Q Shop 2411.90 Further, the Saharas will also provide the bank statements of the above firms showing when the amount was paid to the partnership firms and subsequently when and how partnership firm made the disbursement, as sought for by the SEBI. Mr. Ram Jethmalani, learned Senior Counsel appearing for the respondents submitted that he will examine the same and come out with a response within a week." (emphasis is ours) The above order is self-explanatory. The two companies, as also, the contemnors including the present petitioner, were obviously not providing the required bank statements, even though in Appeal no. 49 of 2013 filed by SIRECL before the SAT, and in Appeal no. 48 filed by SHICL before the SAT, the two companies had committed to furnish their bank accounts, to establish redemption of payments. The relevant paragraph containing the undertaking given....
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.... A perusal of the above general ledger entries reveals just one cheque entry, and enormous inflow/outflow of funds by way of cash. On a single day (31.5.2012), the cash inflow is shown as Rs.15,535,89,65,601.00 (i.e. more than rupees fifteen thousand five hundred and thirty five crores). Mind boggling inflows, just by cash. Most certainly not acceptable as true, unless there is authentic supporting material. Can these general ledger entries ever be the basis for accepting, that the entire cash transactions were correct? We do not think so. Mr. S. Ganesh, learned Senior Counsel for the petitioner, was surprisingly in agreement with us. But his pointed submission was, that the above entries assumed authenticity, because they had been duly audited by a firm of Chartered Accountants. Our attention was invited to the two certificates issued by the firm of Chartered Accountants, both dated 31.1.2014, which were placed on the record of the case by the petitioner, for our consideration. The certificate pertaining to SIRECL is being reproduced hereunder:- "CA DE & Bose in association with ASH Associates UK 8/2, Kiran Sankar Roy Road, 2nd Floor Room no. 1 & 18, Kolkata - 700 0....
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....to the best of our knowledge and belief were necessary to give this certificate. 2. We have relied upon the system and procedure of the company, books, records, documents, bank statements, clarifications, representations, information and statements made available to us and also done verification and scrutiny of the same. Based on the above procedures and verification, we certify that M/s. Sahara Housing Investment Corporation Limited had subscription of Optionally Fully Convertible Debentures of approximately Rs.324.62 crores (covering 91,970 control numbers) through cheque. Further till March, 2013, Rs.14.66 crores (covering 10,501 control numbers) were paid to the Optionally Fully Convertible Debenture holders on account of redemption/pre-redemption through cheque. For De & Bose Chartered Accountants Firm Regn. No. 302175E Date: 31.01.2014 Sd/- Place: Kolkata (Subrata De) Partner Membership no. 054962" (emphasis is ours) A perusal of the above certificates reveals, that the above firm of Chartered Accountants, confirmed the redemption of OFCD's which were made by way of cheque only. Both the above certificates are silent on the redemptions ....
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....43 of 2012 (and Writ Petition (Civil) no. 527 of 2012). In the said proceedings, the two companies had sought exemption from depositing the amounts, which they had allegedly redeemed. The three-Judge Division Bench, which heard the matter(s), did not accept the redemption theory projected by the two companies. Accordingly, the prayer made by the two companies in Civil Appeal no.8643 of 2012 (and Writ Petition (Civil) no. 527 of 2012) for deduction of the above amount, was not accepted by this Court, when it passed the final order dated 5.12.2012. Accordingly, the companies were directed to deposit the entire balance amount of Rs.17,400 crores. It is, therefore imperative to conclude, that the issue of deduction of allegedly redeemed funds, stood concluded against the two companies, when this Court passed its order dated 5.12.2012. This plea is no longer available to the two companies, in law. To continue to harp on the alleged redemptions, is clearly a misrepresentation, specially when the order dated 5.12.2012 has attained finality. 121. Therefore, viewed from any angle, there is no substance in the contention advanced on behalf of the two companies, that the moneys payable to ....
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....ition, which is extracted hereunder: "PETITION UNDER THE POWERS OF THIS COURT TO ACT EX DEBITO JUSTITIAE A POWER EXPRESSLY RECOGNIZED BY THE AUTHORITIES MENTIONED IN THE PARA 'A' OF THIS PETITION." It was his vehement contention, that the instant petition does not disclose the provisions under which it had been filed. In this behalf, it was sought to be asserted, that the right to maintain a petition can only emerge from a statutory provision, or a constitutional mandate. It was also submitted that neither a maxim of law, nor a decision of a Court, could create jurisdiction in a Court. 124. The objection of jurisdiction, raised by the learned Senior Counsel representing the SEBI, met with the strangest possible response from the learned Senior Counsel representing the petitioner. It was a response of a nature which we had not experienced in our professional careers as Advocates, or even in approximately one and a half decades of service rendered as Judges. It is necessary to point out, that when the above objection was raised, we had informed learned Senior Counsel representing the SEBI, that we would not stand on technicality, inasmuch as, if the instant petition ....
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....umstances of the case." Referring to prayer (a) extracted above, it was submitted, that the declaration sought in the instant prayer would be in the nature of a writ of certiorari. Referring to clause (b) of the prayer clause, it was contended, that the declaration sought therein would be in the nature of a writ of certiorarified mandamus. Insofar as prayer clause (c) is concerned, it was asserted, that the prayer sought was in the nature of a writ of habeas corpus. In the above view of the matter, it was the submission of Mr. C.A. Sundaram, that the jurisdiction of this Court to issue writs, could be invoked only under Article 32 of the Constitution of India. As such, it was his submission, that the instant petition be treated as having been filed under Article 32 of the Constitution of India. In other words, the contention of Mr. C.A. Sundaram, learned Senior Counsel was, that the title of the petition be read by including Article 32 of the Constitution of India therein. In fact, it was the pointed submission of the learned counsel, that he should not be taken as having canvassed, that the instant petition was maintainable on account of the jurisdiction evolved through the jud....
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....veracity of the submissions advanced at the hands of Mr. Ram Jethmalani, Senior Advocate. To substantiate his contention learned counsel placed reliance, only on the judgment rendered by this Court in A.R. Antulay's case (supra). Before examining the decision rendered by this Court in the above judgment, we shall summarise the factual context, in which the aforesaid judgment was rendered. The appellant in the above case, A.R. Antulay was the Chief Minister of the State of Maharashtra from 1980 to 1982. R.S. Nayak belonged to a rival political party. R.S. Nayak filed a complaint before the Additional Metropolitan Magistrate, Bombay, under Sections 161 and 165 of the Indian Penal Code and Section 5 of the Prevention of Corruption Act, as also, under Sections 384 and 420 read with Sections 109 and 120-B of the Indian Penal Code. The complaint was not only against the appellant A.R. Antulay, but also against other known and unknown persons. Since sanction for prosecution had not been granted, the concerned Magistrate refused to take cognizance. To assail the order of the Magistrate, a criminal revision application came to be filed. In the meantime, the Governor of the State of Maha....
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....n the above view of the matter, it is apparent, that this Court set aside the order of discharge passed by the Special Judge, Bombay. This Court accordingly directed the trial Court, to proceed with the trial of the matter. While disposing of the two cases referred to hereinabove, this Court having taken into consideration the fact, that A.R. Antulay had already suffered adversely, as his reputation was tarnished by the imputations levelled against him, for a period of two and a half years (i.e., the period during which the controversy had remained pending), felt that he deserved an expeditious trial. In the aforesaid view of the matter, while disposing of the two matters referred to above, this Court directed, that the cases filed against A.R. Antulay before the Special Judge, Bombay, be withdrawn and be transferred to the High Court of Bombay for trial. The Chief Justice of the High Court of Bombay was also requested, to assign the trial of the matter, to a sitting Judge of the High Court, so as to conclude the matter by holding day-to-day proceedings. Accordingly, trial commenced before a Single Judge of the High Court of Bombay in 1984. A.R. Antulay again contested the maintain....
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....ntention advanced on behalf of A.R. Antulay was, that he could be tried only in accordance with the procedure established by law. This plea was raised under Article 21 of the Constitution of India. A.R. Antulay relied on Section 7(1) of the Criminal Law Amendment Act, 1952, which expressly provided (notwithstanding anything contained in the Code of Criminal Procedure or any other law), that the offences under Section 6(1) would be triable by a Special Judge only. It was, therefore, sought to be asserted, that his trial by the Single Judge of the High Court, was in clear violation of his constitutional rights, and the aforesaid legislative mandate. A.R. Antulay alleged prejudice by asserting, that four of his valuable rights had been taken away when this Court had passed the direction, whereby his trial was withdrawn from the Court of the Special Judge, Bombay, and transferred to the High Court. In this behalf, it was his contention, that he was deprived of the right to trial by a Special Judge, in accordance with the procedure established by law, i.e., procedure which had been enacted by Parliament. He also asserted, that his right of revision to the High Court under Section 9 of t....
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....iae in case injustice has been caused. No court, however high, has jurisdiction to give an order unwarranted by the Constitution and, therefore, the principles of Bhatia Co- operative Housing Society Ltd. v. D. C. Patel, (1953) SCR 185, would not apply. 80. ln giving the directions this Court infringed the constitutional safeguards granted to a citizen or to an accused and injustice results therefrom. It is just and proper for the court to rectify and recall that injustice, in the peculiar facts and circumstances of this case. 81. This case has caused us considerable anxiety. The appellant-accused has held an important position in this country, being the Chief Minister of a premier State of the country. He has been charged with serious criminal offences. His trial in accordance with law and the procedure established by law would have to be in accordance with the 1952 Act. That could not possibly be done because of the directions of this Court dated February 16, 1984, as indicated above. It has not yet been found whether the appellant is guilty or innocent. It is unfortunate, unfortunate for the people of the State, unfortunate for the country as a whole, unfortunate for the f....
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....s Court, even if there are any technicalities this Court should not feel shackled and decline to rectify that injustice or otherwise the injustice noticed will remain forever a blot on justice. It has been said long time ago that "actus curiae neminem gravabit" - an act of the Court shall prejudice no man. This maxim is founded upon justice and good sense and affords a safe and certain guide for the administration of the law. ** ** ** 83....It appears that in giving directions on February 16, 1984, this Court acted per incuriam inasmuch it did not bear in mind consciously the consequences and the provisions of Sections 6 and 7 of the 1952 Act and the binding nature of the larger Bench decision in Anwar Ali Sarkar case, 1952 SCR 284 which was not adverted to by this Court. The basic fundamentals of the administration of justice are simple. No man should suffer because of the mistake of the court. No man should suffer a wrong by technical procedure of irregularities. Rules or procedures are the handmaids of justice and not the mi....
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....Counsel for the petitioner, that even a judicial order passed in derogation of the constitutional limitations or in derogation of principles of natural justice, can always be remedied by this Court ex debito justitiae. According to learned counsel, it was imperative for this Court to exercise the above power without insisting on the formalities of the petitioner being required to file a review petition or a curative petition. 131. In addition to the reliance placed by the learned Senior Counsel for the petitioner on the judgment rendered by this Court in A.R. Anutlay's case (supra), he also placed reliance on the judgments of this Court in Supreme Court Bar Association's case (supra), and on M.S. Ahlawat v. State of Haryana & Anr., [2000] 1 SCC 278, wherein this Court had recalled its own order, when a litigant had approached it complaining of miscarriage of justice (through an earlier order, passed by this Court). Specially when the earlier order was without jurisdiction and without following due procedure of law. And specially, when the challenged order had resulted in the incarceration of the concerned petitioner. 132. In response to the contentions advanced at the....
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.... the earlier judgments/orders of this Court in an application filed under Article 32 of the Constitution. But in those cases no one joined issue with regard to the maintainability of the writ petition under Article 32 of the Constitution. Therefore, those cases cannot be read as authority for the proposition that a writ of certiorari under Article 32 would lie to challenge an earlier final judgment of this Court." emphasis is ours) 134. Before we advert to the question of jurisdiction, it may be relevant to understand the extent and width of jurisdiction within the framework whereof this Court can pass orders. In this behalf reference may be once again, made to the nine-Judge Bench judgment of this Court in Naresh Sridhar Mirajkar's case (supra), wherein it was held as under:- "60. There is yet another aspect of this matter to which it is necessary to refer. The High Court is a superior Court of Record and under Article 2 15 , shall have all powers of such a Court of Record including the power to punish contempt of itself. One distinguishing characteristic of such superior Courts is that they are entitled to consider questions of their jurisdiction raised before them. ....
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....rate heading examined the issue, whether this Court had the jurisdiction to order the arrest and detention of the petitioner - Mr. Subrata Roy Sahara. We have independently concluded, that we were possessed of such jurisdiction. It is therefore apparent, that the impugned order dated 4.3.2014, does not suffer from any jurisdictional error. 137. We are in absolute agreement with the submissions advanced by Mr. Arvind Datar, learned Senior Counsel for the respondent. In view of the factual position depicted in this judgment (under the heading: "Whether the impugned order dated 4.3.2014 was passed, in violation of the rules of natural justice?"), based on the pleas advanced by the petitioner on merits, it is apparent, that the rules of natural justice were followed to the hilt, before the impugned order dated 4.3.2014 was passed. Accordingly, the principle of actus curiae neminem gravabit is not available to the petitioner. 138. We have recorded hereinabove, that the instant petition is not maintainable, because the challenge raised by the petitioner herein, on the grounds of a jurisdictional error, or non compliance of the rules of natural justice have been found to be not made....
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....by Mr. C.A. Sundaram, to demonstrate that the present writ petition was maintainable at the hands of the petitioner, to assail the order passed by us, on 4.3.2014. 140. The instant issue being a pure question of law, was canvassed at the hands of the learned counsel for the rival parties, by placing reliance on judgments rendered by this Court. In our considered view, therefore, it would be in the fitness of matters to cite the judgments relied upon by the learned counsel for the parties, for the adjudication of the instant issue. 141. We have chosen to take into consideration various judgments brought to our notice chronologically. (i) In this behalf reference may first and foremost be made to the judgment rendered by a nine-Judge Bench of this Court in Naresh Shridhar Mirajkar, AIR 1967 SC 1, wherefrom our attention was invited to the following conclusions drawn therein:- "52. In this connection, it is necessary to refer to another aspect of the matter, and that has relation to the nature and extent of this Court's jurisdiction to issue writs of certiorari under Article 32(2) . Mr. Setalvad has conceded that if a Court of competent jurisdiction makes an order in a....
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....r and a person aggrieved by it, though a stranger, can move this Court by appeal under Article 136 of the Constitution . Principles of Res judicata have been applied by this Court in dealing with petitions filed before this Court under Article 32 in Daryao v. The State of U.P. and Others, AIR 1961 SC 1457. We apprehend that somewhat similar considerations would apply to the present proceedings. If a judicial order like the one with which we are concerned in the present proceedings made by the High Court binds strangers, the strangers may challenge the order by taking appropriate proceedings in appeal under Article 136. It would, however, not be open to them to invoke the jurisdiction of this Court under Article 32 and contend that a writ of certiorari should be issued in respect of it. The impugned order is passed in exercise of the inherent jurisdiction of the Court and its validity is not open to be challenged by writ proceedings." (emphasis is ours) Even though the challenge before us is raised on account of the alleged violation of Article 21 of the Constitution of India, yet the issue that needs to be determined is, whether a writ petition would be maintainable, as again....
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....the Court, to assail the validity of a conviction order, whereby the person concerned had been sentenced to life imprisonment. This Court, in Jharia S/o Maniya v. State of Rajasthan & Anr., [1983] 4 SCC 7, held that the writ petition was not maintainable. Incidentally, it would be pertinent to mention, that the above challenge was raised (as in the instant case), by asserting that the impugned judgment violated the fundamental right of the concerned detenue, under Article 21 of the Constitution of India (as in the instant case). Additionally, a challenge was also raised under Articles 14 and 19 of the Constitution of India. This Court dismissed the writ petition, with the following observations:- "2. It appears that the petitioner along with two others was arraigned before the Sessions Judge of Alwar in Sessions Trial No. 110 of 1976 for having committed an alleged offence punishable under Section 302 of the Indian Penal Code, alternatively, under Section 302 read with Section 34 of the Code. By his finding and sentence dated April 21, 1977 the learned Sessions Judge convicted the petitioner and his two associates for having committed the murder of the deceased Jharia in further....
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.... dismissed and therefore the petitioner has no other remedy except to approach this Court for appropriate writ, direction or order under Article 32 of the Constitution. 4. We fail to appreciate the propriety of asking for a declaration in there proceedings under Article 32 that conviction of the petitioner by the High Court for an offence punishable under Section 302 read with Section 34 of the India Penal Code is illegal, particularly when this Court has declined to grant special leave under Article 136 . Nor can the petitioner be heard to say that his detention in jail amounts to deprivation of the fundamental right to life and liberty without following the procedure established by law in violation of Article 21 read with Articles 14 and 19 . When a special leave petition is assigned to the learned Judges sitting in a Bench, they constitute the Supreme Court and there is a finality to their judgment which cannot be upset in these proceedings under Article 32 . Obviously, the Supreme Court cannot issue a writ, direction or order to itself in respect of any judicial proceedings and the learned Judges constituting the Bench are not amenable to the writ jurisdiction of this Court.....
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....ubhai Ratilal Patel v. State of Gujarat, [2013] 1 SCC 314. In the above judgment, this Court referred to the earlier judgments rendered by this Court, and approved the issue, which is subject matter of consideration at our hands. The observations which are relevant, are being extracted hereunder:- "14. In Kanu Sanyal v. District Magistrate, Darjeeling and Ors., [1973] 2 SCC 674, it was laid down that the writ of habeas corpus deals with the machinery of justice, not the substantive law. The object of the writ is to secure release of a person who is illegally restrained of his liberty. 15. Speaking about the importance of the writ of habeas corpus, a two-Judge Bench, in Ummu Sabeena v. State of Kerala and Ors. [2011] 10 SCC 781, has observed as follows: "15. ...the writ of habeas corpus is the oldest writ evolved by the common law of England to protect the individual liberty against its invasion in the hands of the executive or may be also at the instance of private persons. This principle of habeas corpus has been incorporated in our constitutional law and we are of the opinion that in a democratic republic like India where Judges function under a written Constitution and ....
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....rticle 32 of the Constitution of India, yet, the above two judgments, cannot be treated to have any bearing on the determination of the issue in hand, because in the aforesaid two cases, the maintainability of the petitions was not contested. Our instant conclusion, has also been recorded by this Court in, Rupa Ashok Hurra's case (supra), the relevant observations wherefrom, have already been extracted hereinabove. 142. Last of all, we shall endavour to deal with the submission advanced by Dr. Rajeev Dhawan, learned Senior Counsel, to the effect that the instant petition was maintainable in exercise of the jurisdiction vested in this Court, under Articles 129 and 142 of the Constitution of India. The above provisions are being extracted hereunder;- "129. Supreme Court to be a court of record - The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself. 142. Enforcement of decrees and orders of the Supreme Court and orders as to discovery, etc. - (1) The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary for doing complete justice i....
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....dgments in exercise of its inherent power. 50. The next step is to specify the requirements to entertain such a curative petition under the inherent power of this Court so that floodgates are not opened for filing a second review petition as a matter of course in the guise of a curative petition under inherent power. It is common ground that except when very strong reasons exist, the Court should not entertain an application seeking reconsideration of an order of this Court which has become final on dismissal of a review petition. It is neither advisable nor possible to enumerate all the grounds on which such a petition may be entertained." (emphasis is ours) 143. It is not possible for us to accept the contention advanced at the hands of the learned Senior Counsel. By placing reliance on the decision rendered by this Court in Rupa Ashok Hurra's case (supra), learned counsel must be deemed to have impliedly conceded the issue, against himself. In Rupa Ashok Hurra's case (supra), this Court examined the remedies available to an individual. In the above judgment, this Court examined the ambit and scope of Article 137 of the Constitution of India, whereunder, a review....
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....beyed at all costs. Howsoever grave the effect may be, is no answer for non-compliance of a judicial order. Judicial orders cannot be permitted to be circumvented. In exercise of contempt jurisdiction, Courts have the power to enforce compliance of judicial orders, and also, the power to punish for contempt. (For details, refer to paragraph nos. 15 to 19). III. The facts of this case reveal, that the two companies of which the petitioner is a promoter, flouted orders passed by the SEBI (FTM), SAT, the High Court and of this Court, with impunity. Facts and information solicited were never disclosed. The position adopted by the two companies was always projected on the basis of unverifiable material. This Court recorded in its order dated 31.8.2012, that the factual assertions made on behalf of the two companies seemed to be totally unrealistic and could well be fictitious, concocted and made up, and also remarked, that the affairs of the two companies seemed to be doubtful, dubious and questionable. The above position has remained unaltered, inasmuch as, no authentic and verifiable material sought has ever been furnished by the two companies. The two companies remained adamant wh....
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....ating out of the SEBI Act. So also, rule 6 of Order XIII of the Supreme Court Rules, 1966, has no applicability, with reference to the SEBI Act. Be that as it may, this Court before passing the impugned order dated 4.3.2014 had immaculately followed the procedure contemplated under the provisions of the Code of Civil Procedure, 1908, as were relied upon by the learned counsel for the petitioner, before ordering the petitioner's (and the other contemnors') arrest and detention. The submission of the learned counsel for the petitioner, so as to avoid his arrest and detention, based on the judgment rendered by this Court in Jolly George Varghese & Anr. v. Bank of Cochin, (1980) 2 SCC 360, being inapplicable to the facts and circumstances of this case, was liable to be rejected, and has accordingly been rejected. (For details, refer to paragraph nos. 62 to 77). VII. In response to a prayer made by the SEBI (in Interlocutory Application nos. 68 and 69 of 2013 in Civil Appeal no. 9813 of 2011), inter alia, seeking the arrest and detention of the petitioner (and two other contemnors, namely, Mr. Ravi Shankar Dubey and Mr. Ashok Roy Choudhary), the petitioner filed a personal re....
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....s factual perspectives and has been found to be untenable. Sole reliance on general ledger entries without any other authentication, has been held to be insufficient proof of the refunds claimed to have been made by the two companies to the investors, specially because, such cash redemptions have not been affirmed in the certificate issued by the firm of Chartered Accountants, which had audited the accounts of the two companies. (For details, refer to paragraph nos. 113 to 122). X. The submission advanced by Mr. Ram Jethmalani, learned Senior Counsel asserting the maintainability of the instant petition under the maxim of ex debito justitiae, expressly recognized by this Court in A.R. Antulay v. R.S. Nayak, (1988) 2 SCC 602, is held to be devoid of any merit, consequent upon a detailed analysis of the judgment relied upon. The contention advanced by Mr. C.A. Sundaram, learned Senior Counsel for the petitioner, projecting the maintainability of the instant petition under Article 32 read with Article 21 of the Constitution of India, has been found to be unacceptable in law on the basis of a series of judgments rendered by this Court. The submission advanced by Dr. Rajeev Dhawan, l....
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....sent petitioner before this Court - Mr. Subrata Roy Sahara, are such litigants. They never subjected themselves to the authority and jurisdiction of the SEBI. They have continued with the same mannerism at all levels, right upto this Court. They have always adopted an accusing stance, before all the adjudicatory authorities. Even against us. Exhaustive details in this behalf have been expressed by us, in the order dated 31.8.2012. The pleas raised have been found to be patently false, on the face of the record. 149. During the course of passing this judgment, we required the Registry of this Court to place before us a compilation of the orders passed on different dates of hearing, ever since the filing of the appeals, which culminated in passing of the order dated 31.8.2012. We were astounded to learn, that the controversy arising out of Civil Appeal nos. 9813 and 9833 of 2011 was listed for hearing on the following 81 dates:- "28.11.2011, 9.1.2012, 20.1.2012, 10.2.2012, 2.3.2012, 20.3.2012, 23.3.2012, 27.3.2012, 28.3.2012, 29.3.2012, 3.4.2012, 10.4.2012, 11.4.2012, 12.4.2012, 17.4.2012, 18.4.2012, 19.4.2012, 20.4.2012, 24.4.2012, 25.4.2012, 26.4.2012, 1.5.2012, 2.5.2012, 3.5....
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....lost, for no fault? The suggestion to the legislature is, that a litigant who has succeeded, must be compensated by the one, who has lost. The suggestion to the legislature is to formulate a mechanism, that anyone who initiates and continues a litigation senselessly, pays for the same. It is suggested that the legislature should consider the introduction of a "Code of Compulsory Costs". 151. We should not be taken to have suggested, that the cost of litigation should be enhanced. It is not our suggestion, that Court fee or other litigation related costs, should be raised. Access to justice and related costs, should be as free and as low, as possible. What is sought to be redressed is a habituation, to press illegitimate claims. This practice and pattern is so rampant, that in most cases, disputes which ought to have been settled in no time at all, before the first Court of incidence, are prolonged endlessly, for years and years, and from Court to Court, upto the highest Court. 152. This abuse of the judicial process is not limited to any particular class of litigants. The State and its agencies litigate endlessly upto the highest Court, just because of the lack of responsibil....
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....hat the legislature should evolve ways and means to curtail this unmindful activity. We are sure, that an eventual determination, one way or the other, would be in the best interest of this country, as also, its countrymen. ============= Document 1 SAHARA INDIA REAL ESTATE CORPORATION LTD. 6TH FLOOR, CASH & BANK GENERAL LEDGER VOC. DATE VOC. NO. CHQ. NO. NARRATION OF THE VOUCHER SUB CODE DEBIT CREDIT 31/05/2012 500009 072282 9BV 31/05/2012 500014 CHEQUE DEPOSITED BY SAHARA INDIA 9JV 31/05/2012 500015 OJV AMT. OF E-TAX PAID TH. SAHARA INDIA AMT. OF E-TAX PAID TH. SAHARA INDIA 1,40,00,000.00 11,03,260.00 11,11,321.00 Document 2 31/05/2012 500015 5JV 31/05/2012 500016 1JV BEING JV NO. 5000120 DT. 260512 WRONGLY CR TO INSURANCE TO VEHICLE INSTEAD OF SI NOW RECTIFIED AND TRF TOWARDS INSURANCE AMT. DEDUCTED FROM SI BEING BV NO 50000360 DT 10052012 WRONGLY CR TO SI INSTEAD OF SUNDRY ADV 430109 PAGE TOTAL CARRIED FORWARD 53,75,932.00 40,162.00 53,75,932.00 22,88,45,04,128.78 55,61,27,771.00 30,43,18,43,975.28 XXX XXX XXX XXX XXX ....
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....NG THE M/O MAY-12 40.00 31/05/2012 50002 18JV BEING AMT OF SSWF DEDUCTED DURING THE M/O MAY-12 58.00 31/05/2012 50002 19JV BEING AMOUNT RECOVERED FROM F.W. DURING THE M/O MAY- 60.00 12 31/05/2012 50002 20JV BEING SERVICE CHG RECEIVED IN THE M/O MAY-2012 31/05/2012 50002 21JV BEING AMOUNT RECEIVED FROM CUSTOMER DURING THE M/O MAY-12 48.00 57,69,750.00 31/05/2012 31/05/2012 PAGE TOTAL 1,54,05,15,19,593.00 CARRIED FORWARD 1,76,91,60,23,721.78 22,25,074.00 30,43,40,69,049.28 XXX XXX XXX XXX XXX VOC. DATE Voc. NO. CHQ. NO. 31/05/2012 50002 22JV 31/05/2012 50002 23JV 31/05/2012 50002 24JV 31/05/2012 50002 25JV 31/05/2012 50002 26JV 31/05/2012 50002 27JV 31/05/2012 50002 28JV SAHARA INDIA REAL ESTATE CORPORATION LTD. 6TH FLOOR, CASH & BANK GENERAL LEDGER NARRATION OF THE VOUCHER SUB CODE BROUGHT FORWARD BEING AMOUT RECEIVED FROM CUSTOMER DURING THE M/O MAY-12 BEING AMOUNT RECEIVED FROM CUSTOMER DURING THE M/O MAY-12 BEING AMOUNT RECEIVED FROM CUSTOMER DURING THE M/O MAY-12 ....