{"document_id": "1950_1_1008_1018_EN", "year": 1950, "text": "Patntalal Jankid-:u\n\nv, Mohanlal and\n\nAnother,\n\nPata1tjali S11stri J.\n\n!950\n\nDeo, 21.\n\nSUPREME COURT REPORTS [1950]\n\nof section 14, it seems to me, they would be bringing themselves under the bar of section 18 (2).\n\nThe respondents cannot therefore claim that the loss of the goods was explosion damage within the meaning of the Ordinance so as to bring the case within section 14 and at the same time contend that the loss was not \"due to or did not in any way arise ont of the explosion\" in order to a void the bar under section 18.\n\nBoth section 14 and section 18 have in view the physical cause for the loss or damage to property for which compensation is claimed and not the cause of action in relation to the person against whom relief is sought. The respondents cannot, in my opinion, be allowed to take up inconsistent positions in order to bring themselves within the one and to get out of the other.\n\nI would therefore allow the appeal and dismiss the counter-claim.\n\nDAS J. agreed with the Chief Justice.\n\nAppeal dismissed.\n\nAgent for the appellants: Mohan Behari Lal.\n\nAgent for the respondents : I. N. Shroff.\n\nCOMMISSIONER OF INCOME-TAX,\n\nWEST BENGAL v.\n\nCALCUTTA AGENCY LTD.\n\n[SHRI HARILAL KANIA CJ., PATANJAL! SASTRI\n\nand DAS JJ.]\n\nfoli.tn Income-tax Act (XI of 1922), ss. 10 (2) (xv), 66-Reference-Jwrisdiction of High Ooilft-Duty to decide case ori facts stated by Tribuna.l-Accepting arauments of CO'ltnsel as proved fa.cts and basing decision on them, impropriety of-Business expenditnre- Payments to avoid disclosure of misfeasance of director.~-Burden of prcof.\n\nThe jurisdiction of the High Court in the matter of incometax references is an advisory jurisdiction and under the Inco:netax Act the decision of the Appellate Tribunal on facts is final unless it can be successfully assailed on the ground tha~ there was\n\nno evidence for the conclusions on facts recorded by the Tribnnal. 1950 It is therefore the duty of the High Court to start by looking at tbe facts found by the Tribunal and ans~'e!: the questions of lHW Cornmiss:oritr of on that footing.\n\nIt is not p1oper to depart fron1 this rule of law Incnme-tax, as it will convert the High Court into a fact finding authority, Wcst Bengal which it is not, under the advisory jurisdiction. v.\n\nAs the statement of the case prepared by the Appellate Tri Calcutta Ag•ncy bunal in accordance v.'ith the rules fran1ed under the Income-tax Ltd.\n\nAct is prepared with the knowledge of the parties concerned and they have full opportunity to apply for any addition or deletion from that statement, if they have approved of the state1nent n1ade by the Tribunal, it iR the agreed etatement of facts by the parties on w bich the Iligh Court has to pronouncs its judgment.\n\nThe High Court would be acting improperly if it takes the arguments of the counsel for the assessee as if they were facts and bases its conclusion on tboso arguments.\n\nOne of the directors of the assessee company, acting in the capacity of managing agents of certain l\\'fills, had dra\\vn some hundis in the name of tho Mills, aod as the Mills repudiated liability, suits were filed on the hundis against the Mills and the assessees. The assessees thereupon agreed to reimburse the Mills by permitting the latter to deduct a moiety of the commission pa.yable to them under the agreement of managing agency, against payments which the Mills may have to make under the decrees.\n\nIn their assessment fio income-tnx the assessees claimed that the amounts so deducted should bo excluded from their asRessable income as business cxpenditme under s. 10 (2) (xv) of tbe Incometax Act.\n\nThe Appellate Tribunal found that the assessees had agreed to pay off the decree a1nount from the remuneration due to them, that the decre.e was passed against them evidently for some misfeasance committed by their directors, that the books of both companies showed that the assessees were paid their remuneration in full, and that the expenditure was not therefore laid out for the purpose of carrying on the business, and also that, as the payment was made for the liquidation of a debt, it was not a revenue expenditure. In the High Court the assessees' counsel argued, relying on the case cf Mitchell v. B. W. Noble Ltd.(1), that the payments were made by th• assessees to avoid the publicity of an action against them and the consequent exposure and loss of reputation as a. managing agency company, and as such the payments were deductible as business expenditure. The High Court accepted this argument and reversed the decision of the Tribunal.\n\nHeld, that the High Court acted wrongly in accepting the argurr1ents of the assessees' counsel as if they were proved facts and basing its decision on them ; and, as the facts necessary to support the claim for exemption under s. 10 (2) (xv) had not been established at any stage of the case, the assessees were not entitled to the deduction cJ.imed.\n\n(11 (1927] l K.B. 719,\n\n1~9\n\n1950 Judgment of the Calcutta High Court reversed.\n\n0 . . / APPELLATE JumsDICTION : Civil Appeal No. 59 of onimissioner o\n\n1\"come-tax, 1950.\n\nWest Bengal Appeal from a Judgment of the High Court of Judiv. cature at Calcutta (Harries C.J. and Chatterjea J.)\n\nGalcu~~/Y'\"'Y dated 9th Septern ber, 1949, in a reference under\n\n section 66 (2) of the Indian Income-tax Act, 1922. (Reference No. 8 of 1949).\n\nM. C. Setalvad, Attorney-General for India (G. N. ] oshi, with him) for the appellant.\n\nS. Mitra (B. Banerjee, with him) for the respondents.\n\n1950. December 21. The Judgment of the Court was delivered by\n\nKan•a o. J.\n\nKANIA C.J.-This is an appeal from the judgment of the High Court at Calcutta (Harries C.J. and Chatterjea J.) pronounced on a reference made to it by the Income.tax Tribunal under section 66 (2) of the Indian Income.tax Act.\n\nThe relevant facts are these. The respondents are a private limited company which was brought into existence to float various companies including cotton mills. In November, 1932, the Basanti Cotton Mills Ltd. was incorporated and the respondents were appointed their managing agents.\n\nTheir remuneration was fixed at a monthly allowance of Rs. 500 and a commission of 3 per cent. on all gross sales of goods manufactured by the Mills Company.\n\nThe fixed monthly allowance was liable to be increased in the event of the capital of the company being increased. The details are immaterial. lt appears that certain hundis were drawn by one of the directors of the respondent company, acting in the capacity of the managing agents of the :Mill Company, in the name of the Mill Company and the same were negotiated to others. The Nath Bank Ltd. claimed payment of these hundis.\n\nThe Mill Company repudiated its liability as it appeared from the books of the Mill Company that they had not the use of the sum of Rs. 1.80,000 claimed by the Nath Bank Ltd. under the hundis. The Nath Bank Ltd. instituted four suits\n\nI'\n\nagainst the Mill Company, in two of which the res- 1950 pondent company were party-defendants. The Mill Comm;:.;;; n.,· of Company was advised to settle the suits and the res- Incom•ta:r:. pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part. \\;\\/HEREAS the Nath Bank Limited demanded from the Mills the payment of the sum of Rs. 1,80,000 and interest thereon AND WHEREAS the said Mills repudiated their liability in respect thereof as it appeared from the books of the said Mills that the said Mills did not have the use of the said sum of Rs. 1,80 000 or any part thereof AND WHEREAS the said Nath Bank Ltd. thereupon instituted four suits in High Court being suit Nos. 1683, 1720, 1735 and 1757 of 1939 for the said aggregate sum of Rs. 1,80,000 and the interest thereon AND WHEREAS the said Mills have been advised to settle the said suits amicably AND WHEREAS the Calcutta Agency Limited by its Directors, S.N. Mitter or S.C. Mitter, having been and being still the Managing Agents of the said Mills have undertaken to reimburse the said Mills in respect of the decrees to oe\n\nmade in the said four suits in the manner hereinafter appearing NOW THESE PRESENTS WITNESS\n\nAND IT IS HEREBY AGREED AND DECLARED\n\n(i) That out of the commission of 3% payable by the said Mills to the said Agency under Regulation 131 of the Articles of Association of the Company, the\n\nCompany shall have paramount lien on and deduct and set off a moiety thereof against any payment which the said Mills may make in respect of the decrees or any of them and/or costs of the said suits.\n\n(ii) The said moiety shall be one half of the commission so payable less such sum as the Directors of the Mills may from time to time allow to be deducted.\" ..\n\nUnder the said agreement, the respondent company paid to the Mill Company Rs. 22,500 made up of\n\nt9oO Rs. 18,107 as principal and Rs. 4,393 as interest in the\n\n0 -:--:- 1accounting year. The assessee company claimed this omm1ssioner o .\n\nIncomo-ta:c before the Income-tax Appellate Tribunal as a deduc- Weat Benadi tion permitted under section IO (2) (xv) of the Indian v.\n\nIncome-tax Act. The relevant part of that section Calcutta Agency runs as follows :-\n\nLtd. \"10. (1) \"The tax shall be payable by an assessee\n\nKania o. J. under the head 'Profits and gains of business, profession or vocation' in respect of the profits or gains of any bminess, profession or vocation carried on by him.\n\n(2) Such profits or gains shall be computed after making the following allowances, namely:- ....................................\n\n(xv) any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively for the purpose of such business, profession or vocation.\"\n\nIn the statement of the case submitted by the Tribunal after reciting the fact of the incorporation of the company and the terms of the compromise mentioned above, the arguments urged on behalf of the assessee company have been recapitulated. The first argument\n\nwas that under the first proviso to section 7 of the Indian Income-tax Act, this payment was liable to be exempted. The Tribunal rejected that argument. On the reference, the High Court also rejected the same and it was not presented before us.\n\nThe next argument of the respondents was that in respect of\n\nRs. 22,500 it was entitled to exemption under section 10(2) (xv) of the Income-tax Act on the ground that the payment was an expenditure which was not in the nature of a capital expenditure or personal expenses of the applicant company but was an expenditure laid out wholly and exclusively for the purpose of its business. They urged that if the applicant company did not agree to pay this amount, Basanti Cotton Mills Ltd. could have brought a suit against the company to realise this amount due on the hundis which would •\n\nhave exposed the applicant company to the public and 1950 in order to save themselves from the scandal and maintain the managing agency they agreed to the deduction Commissioner of of certain amounts from the managing agency commis. 1\"come-ta•, sion due to it and thereby brought it within the West , Bengal principles of the decision of 1Vlitchell v. B. W. Noble Oalcutt.\"Agency Ltd.(1) The Tribunal found as facts: (1) That the Ltd. applicant company agreed to pay off the decretal amount from the remuneration which they are entitled K., nia o. J. to get from the Basanti Cotton Mills.\n\n(2) The decree was passed against the applicant company evidently for certain misfeasance committed by its directors and the applicant company agreed to pay it off from its remuneration.\n\n(3) The books of account of Basanti Cotton Mills Ltd. would show that they were paying the applicant company in full its remuneration and the books of the applicant company also show that it was entitled to its remuneration in full.\n\n(4) In the circumstances the Tribunal held that the expenditure was not laid out wholly and exclusively for the purpose of carrying on the business. (5) Besides, the Tribunal was of the opinion that in this case it was not a revenue expenditure at all. As the payment had to be made towards liquidation of the decretal amount the Tribunal held, in the circumstances of this case, that it was a capital payment. On behalf of the respondent it was argued in the further alternative that the Privy Council decision in Raja Bijoy Singh Dudhuria's easel.') would cover the present case. That contention was rejected by the Tribunal.\n\nThis statement of the case prepared by the Incometax Tribunal and submitted to the High Court for its opinion was perused by the parties and they had no suggestions to make in respect of the same. The statement of the case was thus settled with the knowledge and approval of the parties. When the matter came before the High Court, Mr. Mitra, who argued the case for the present respondents, as shown by the judgment of the High Court, urged as follows:-\" If the applicant company had not agreed to pay the amount mentioned\n\ni 1l [J 921) 1 R. B. 719.\n\n12) 61.T, C. 449,\n\n1950 in the aforesaid agreement, then the Basanti Cotton\n\nMills Ltd. would have sued the company for the reali- Oommi\"'•\"\"' of sation of the amounts due on the hundis and it seems\n\nIncom•tax, that there would have been no defence to the action.\n\nWest Bengal T .\n\nJd h b' d th l' t t v his wou ave su iecte e app ican company o Oa!cutt.\"Ag•ncy the danger of public exposure and in order to save Ltd. itself from the scandal and in order to maintain the managing agency, the applicant company agreed to Kania o. J. deduct certain amounts from the managing agency commission and therefore such expenditure came within section 10(2) (xv) of the Act.\" The High Court thereafter noticed several cases including 111 itchell' s case(') and towards the close of the judgment delivered by Chatterjea J. observed as follows:-\"In this case it is clear that the agreement was entered into with a view to avoid the publicity of an action against the managing agents and consequent exposure and scandal and in order to maintain the managing agency so that the company could carry on its business as before.\n\nThe payment in question did not bring in any new assets into existence nor in my opinion can it properly be said that it brought into existence an advantage for the enduring benefit of the company's trade. The Appellate Tribunal observed that the decree was evidently passed against the appellant company for certain misfeasance by its directors and the appellant company agreed to pay it off from its remuneration ...... The object of the agree. ment was to enable the company to remove a defect in carrying on the business of the company and to earn profits in its business. Therefore this case is covered by the judgment of the Court of Appeal in Mitchell's case(') ...... \" Applying this line of reasoning the High Court differed from the conclusion of the Tribunal and allowed the deduction to the respondent company under section 10(2) (xv) of the Income-tax Act, as claimed by the respondents.\n\nThe Commissioner of Income.tax, West Bengal, has come in appeal to us.\n\nNow it is clear that this being a claim for exemption of an amount, contended to be an expenditure falling under section 10(2)(xv), the burden of proving the\n\n(l) [1927] l K.B. 719. ...\n\nnecessary facts in that connection was on the assessee, 1950 it being common ground that the commission was due -:--:- and had become payable and was therefore the business cc7m\"\" 0;'\" of income of the assessee company liable to be taxed in ,;.::m;;:;:.1 the assessment year. The jurisdiction of the High Court v. in the matter of income-tax references is an advisory Calcutta Agency jurisdiction and under the Act the decision of the Ltd.\n\nTribunal on facts is final, unless it can be successfully\n\nKa1ita C. J, assailed on the ground that there was no evidence for the conclusions on facts recorded by the Tribunal. It is therefore the duty of the High Court to start by looking at the facts found by the Tribunal and answer the questions of law on that footing. Any departure from this rule of law will convert the High Court into a fact-finding authority, which it is not under the advisory jurisdiction. The statement of the case under the rules framed under the Income-tax Act is prepared with the knowledge of the parties concerned and they have a full opportunity to apply for any addition or deletion from that statement of the case. If they approved of that statement that is the agreed state. ment of facts by the parties on which the High\n\nCourt has to pronounce its judgment. In the present case the parties perused the statement of case and as disclosed by the note made at the end of it had no suggestions to make in respect thereof. It is therefore clear that it was the duty of the High Court to start with that statement of the case as the final statement of facts.\n\nSurprisingly, we find that the High Court, in its judgment, has taken the argument of Mr. Mitra as if they were facts and have based their conclusion solely on that argument. Nowhere in the statement of the case prepared by the Tribunal and filed in the High Court, the Tribunal had come to the conclusion that the payment was made by the assessee company to avoid any danger of public exposure or to save itself from scandal or in order to maintain the managing agency of the appellant company. The whole conclusion of the High Court is based on this unwarranted assumption of facts which are taken only from the argument of counsel for the present respondents before\n\n1950 the High Court. The danger of failing to recognise -. -. that the jurisdiction of the High Court in these matters Commm•onu of l d d 1 l f J T 'b 1 1 t \" is on y a v1sory an t ie cone uswns o t ie n una\n\n;,;:; m;~:az on facts are the conclusions on which the High Conrt\n\nv, is to exercise such advisory jurisdiction is illustrated Oa'cutta Agency by this case. It seems that unfortunately counsel for\n\nLtd. the respondents caught hold of Mitchell's case(1) and - basing his argument on the circumstances under which Ka, zia 0. J. d a payment could be escribed as a business expenditure falling within the terms of section 10 (2) (xv), argued that the facts in the present case were the same.\n\nInstead of first ascertaining what were the facts found by the Tribunal in the present case, the process was reversed and the procedure adopted was to take Mitchell's case(1) as the law and argue that the facts in the present case covered the situation. In our opinion this is an entirely wrong approach and should not have been permitted by the High Court. The High Court fell into a grave error in omitting first to ascertain what were the facts found in the case stated by the Tribunal. The High Court overlooked that in Afitchell's case(') the whole discussion started with a quotation from the case stated by the Commissioners as the facts of the case.\n\nA scrutiny of the record in the present case shows that before the Income-tax Officer the assessees claimed only a deduction of the interest of Rs. 5,582 as a permissible deduction under section 10 (2) (iii) of the Income-tax Act. That claim was rejected by the Income-tax Officer.\n\nWhen the matter went to the Assistant Income-tax Commissioner it was argued that the Income-tax Officer was in error in not allowing the deduction of interest and was also wrong in not allowing the entire sum of Rs. 22,500 as a deduction on the ground that, that portion of the income (viz., Rs . .'22,500) should be treated as not earned or deemed to be earned by the assessees at all, having regard to the decision of the Privy Council in Raja Bijoy Singh Dudhuria's case.(') The first paragraph of the order of the Appellate Assistant Commissioner contains the following\n\n(ll [1927) I K, B. 719.\n\n12) 6 I.T.C. '49,\n\n• •\n\nS.C.R.\n\nSUPREME COURT REPORTS l017\n\nstatement:-\" In disallowing this (interest) claim the 1950 Income-tax Officer was following the decision of my .-- predecessor in his order dated the 18th March 1942 in Oommimoner 0!\n\nAppeal No._ 1-~-~ 1 of.1941-42. My predecessor obser- ~:~·;;~~~1 • ved: \"Nothmg 1s m evidence to show that the managmg v. agency company had surplus money and such money Calcutta Ag••cv was invested or that there was any need to borrow.\n\nLtd.\n\nThus the need to borrow is not established. There is no doubt that money was borrowed but lmless it can Kania c. J. to proved that the borrowing is for the purpose of the business and the loan was u:sed in the business, the interest cannot be allowed under section 10(2)(iii).\"\n\nThe second objection raised before the Appellate Assistant Commissioner was in these terms:-' That the Income-tax Officer should have allowed the said sum of Rs. 22,500 as allowable expenditure being allocation of a sum out of the revenue receipt before it became income in the hands of the assessee.\" The wording of the objection and the argument noticed in the order of the Appellate Assistant Commissioner show that the contention was that this sum should be treated as not having become the income of the assessee at all because it was deducted at the source by the Mill company.\n\nReliance was placed for this contention on Raja Bijoy Singh Dudhuria's case('). The contention was rejected.\n\nAt the third stage, when the assessee urged his contentions before the Income Tax Appellate Tribunal, he thought of urging as an argument that this was a permissible deduction under section 10 (2) (xv) because of the principles laid down in Mitchell's case(2).\n\nNo evidence, it appears, was led before the Income Tax Tribunal, nor has the Tribunal recorded any findings of fact on which the principles laid down in Mitchell's case(') could be applied. The Tribunal's conclusions of facts were only as summarized in the earlier part of the judgment. It is therefore clear that the necessary facts required to be established before the principles laid down in Mitchell's case(2) could be applied, have not been found as facts in the present case at any stage of the proceedings and the High Court was in error\n\nil) 6 I.T.C. H9.\n\n(~) [19271 I K.B. 719.\n\nSUPREME COURT REPORTS [1950]\n\n1950 in applying the principles of Mitchell's case(1) on the -. -. assumption of facts which were not proved. The High OomI missioner of Court was carried away, it seems, by the argument of\n\nncometax, West Bengal the counsel and through error accepted the argument v. as facts.\n\nIndeed, if it had noticed the contention\n\nCalcutta Agenoy urged before the Income-tax Officer it would have seen Ltd, at once that the argument was in a measure conflicting with that contention which was based on the foot- Kania a. 1 ing of Rs. 1,80,000 being a loan to the assessee on which it had to pay interest, which was sought to be deducted under section 10 (2) (iii) of the Income-tax Act. In our opinion. therefore, this appeal should be allowed on the simple ground that the facts necessary to be established by the respondents to support their claim for exemption under section 10 (2) (xv) of the Indian Income-tax Act have not been established at any stage of the proceedings and therefore they are not entitled to the deduction claimed. The appeal is therefore allowed with costs here and before the High Court.\n\nAppeal allowed.\n\nAgent for the appellant : P.A. Mehta.\n\nAgent for the respondents: Ganpat Rai.\n\n(1) [19~1] 1 K.B. 719 .\n\n'J'", "total_entities": 79, "entities": [{"text": "Patntalal Jankid-:u", "label": "OTHER_PERSON", "start_char": 0, "end_char": 19, "source": "ner", "metadata": {"in_sentence": "Patntalal Jankid-:u\n\nv, Mohanlal and\n\nAnother,\n\nPata1tjali S11stri J.\n\n!"}}, {"text": "S11", "label": "PROVISION", "start_char": 59, "end_char": 62, "source": "regex", "metadata": {"statute": null}}, {"text": "section 14", "label": "PROVISION", "start_char": 120, "end_char": 130, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 199, "end_char": 209, "source": "regex", "metadata": {"statute": null}}, {"text": "section 14", "label": "PROVISION", "start_char": 370, "end_char": 380, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 523, "end_char": 533, "source": "regex", "metadata": {"statute": null}}, {"text": "section 14", "label": "PROVISION", "start_char": 541, "end_char": 551, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 556, "end_char": 566, "source": "regex", "metadata": {"statute": null}}, {"text": "DAS J.", "label": "JUDGE", "start_char": 978, "end_char": 984, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "Mohan Behari Lal", "label": "LAWYER", "start_char": 1062, "end_char": 1078, "source": "ner", "metadata": {"in_sentence": "Agent for the appellants: Mohan Behari Lal."}}, {"text": "I. 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(", "canonical_name": "Harries C.J."}}, {"text": "Chatterjea", "label": "JUDGE", "start_char": 5196, "end_char": 5206, "source": "ner", "metadata": {"in_sentence": "cature at Calcutta (Harries C.J. and Chatterjea J.)\n\nGalcu~~/Y'\"'Y dated 9th Septern ber, 1949, in a reference under\n\n section 66 (2) of the Indian Income-tax Act, 1922. ("}}, {"text": "section 66", "label": "PROVISION", "start_char": 5278, "end_char": 5288, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 5300, "end_char": 5327, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "M. C. Setalvad", "label": "OTHER_PERSON", "start_char": 5357, "end_char": 5371, "source": "ner", "metadata": {"in_sentence": "M. C. Setalvad, Attorney-General for India (G. N. ] oshi, with him) for the appellant."}}, {"text": "S. Mitra", "label": "LAWYER", "start_char": 5445, "end_char": 5453, "source": "ner", "metadata": {"in_sentence": "S. Mitra (B. Banerjee, with him) for the respondents."}}, {"text": "B. Banerjee", "label": "LAWYER", "start_char": 5455, "end_char": 5466, "source": "ner", "metadata": {"in_sentence": "S. Mitra (B. Banerjee, with him) for the respondents."}}, {"text": "Kan•a", "label": "JUDGE", "start_char": 5563, "end_char": 5568, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nKan•a o. J.\n\nKANIA C.J.-This is an appeal from the judgment of the High Court at Calcutta (Harries C.J. and Chatterjea J.) pronounced on a reference made to it by the Income.tax Tribunal under section 66 (2) of the Indian Income.tax Act.", "canonical_name": "Kan•a"}}, {"text": "KANIA", "label": "JUDGE", "start_char": 5576, "end_char": 5581, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nKan•a o. J.\n\nKANIA C.J.-This is an appeal from the judgment of the High Court at Calcutta (Harries C.J. and Chatterjea J.) pronounced on a reference made to it by the Income.tax Tribunal under section 66 (2) of the Indian Income.tax Act.", "canonical_name": "Kan•a"}}, {"text": "High Court at Calcutta", "label": "COURT", "start_char": 5630, "end_char": 5652, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nKan•a o. J.\n\nKANIA C.J.-This is an appeal from the judgment of the High Court at Calcutta (Harries C.J. and Chatterjea J.) pronounced on a reference made to it by the Income.tax Tribunal under section 66 (2) of the Indian Income.tax Act."}}, {"text": "Harries", "label": "JUDGE", "start_char": 5654, "end_char": 5661, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nKan•a o. J.\n\nKANIA C.J.-This is an appeal from the judgment of the High Court at Calcutta (Harries C.J. and Chatterjea J.) pronounced on a reference made to it by the Income.tax Tribunal under section 66 (2) of the Indian Income.tax Act.", "canonical_name": "Harries C.J."}}, {"text": "section 66", "label": "PROVISION", "start_char": 5756, "end_char": 5766, "source": "regex", "metadata": {"linked_statute_text": "the Indian Income-tax Act, 1922", "statute": "the Indian Income-tax Act, 1922"}}, {"text": "Basanti Cotton Mills Ltd.", "label": "ORG", "start_char": 5985, "end_char": 6010, "source": "ner", "metadata": {"in_sentence": "In November, 1932, the Basanti Cotton Mills Ltd. was incorporated and the respondents were appointed their managing agents."}}, {"text": "Nath Bank Ltd.", "label": "ORG", "start_char": 6626, "end_char": 6640, "source": "ner", "metadata": {"in_sentence": "The Nath Bank Ltd. claimed payment of these hundis."}}, {"text": "Bengal Mill Company", "label": "ORG", "start_char": 7161, "end_char": 7180, "source": "ner", "metadata": {"in_sentence": "pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part."}}, {"text": "Calcutta Agency • Ltd.", "label": "ORG", "start_char": 7244, "end_char": 7266, "source": "ner", "metadata": {"in_sentence": "pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part."}}, {"text": "Calcutta Agency Limited", "label": "ORG", "start_char": 7310, "end_char": 7333, "source": "ner", "metadata": {"in_sentence": "pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part."}}, {"text": "Basanti Kama", "label": "ORG", "start_char": 7354, "end_char": 7366, "source": "ner", "metadata": {"in_sentence": "pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part."}}, {"text": "Cotton Mills Ltd.", "label": "ORG", "start_char": 7374, "end_char": 7391, "source": "ner", "metadata": {"in_sentence": "pondent company entered into an agreement with the w .. t Bengal Mill Company, the material part of the terms of which •. rnns as follows ·- Calcutta Agency • Ltd. \" Memorandum of Agreement made between the Calcutta Agency Limited of the one part and Basanti Kama c. J.\n\nCotton Mills Ltd. of the other part."}}, {"text": "Nath Bank Limited", "label": "ORG", "start_char": 7426, "end_char": 7443, "source": "ner", "metadata": {"in_sentence": "\\;\\/HEREAS the Nath Bank Limited demanded from the Mills the payment of the sum of Rs."}}, {"text": "S.N. Mitter", "label": "ORG", "start_char": 8079, "end_char": 8090, "source": "ner", "metadata": {"in_sentence": "1,80,000 and the interest thereon AND WHEREAS the said Mills have been advised to settle the said suits amicably AND WHEREAS the Calcutta Agency Limited by its Directors, S.N. Mitter or S.C. Mitter, having been and being still the Managing Agents of the said Mills have undertaken to reimburse the said Mills in respect of the decrees to oe\n\nmade in the said four suits in the manner hereinafter appearing NOW THESE PRESENTS WITNESS\n\nAND IT IS HEREBY AGREED AND DECLARED\n\n(i) That out of the commission of 3% payable by the said Mills to the said Agency under Regulation 131 of the Articles of Association of the Company, the\n\nCompany shall have paramount lien on and deduct and set off a moiety thereof against any payment which the said Mills may make in respect of the decrees or any of them and/or costs of the said suits."}}, {"text": "S.C. Mitter", "label": "ORG", "start_char": 8094, "end_char": 8105, "source": "ner", "metadata": {"in_sentence": "1,80,000 and the interest thereon AND WHEREAS the said Mills have been advised to settle the said suits amicably AND WHEREAS the Calcutta Agency Limited by its Directors, S.N. Mitter or S.C. Mitter, having been and being still the Managing Agents of the said Mills have undertaken to reimburse the said Mills in respect of the decrees to oe\n\nmade in the said four suits in the manner hereinafter appearing NOW THESE PRESENTS WITNESS\n\nAND IT IS HEREBY AGREED AND DECLARED\n\n(i) That out of the commission of 3% payable by the said Mills to the said Agency under Regulation 131 of the Articles of Association of the Company, the\n\nCompany shall have paramount lien on and deduct and set off a moiety thereof against any payment which the said Mills may make in respect of the decrees or any of them and/or costs of the said suits."}}, {"text": "Mills to the said Agency under Regulation", "label": "STATUTE", "start_char": 8437, "end_char": 8478, "source": "regex", "metadata": {}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 9271, "end_char": 9285, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Kania", "label": "JUDGE", "start_char": 9413, "end_char": 9418, "source": "ner", "metadata": {"in_sentence": "1) \"The tax shall be payable by an assessee\n\nKania o. J. under the head 'Profits and gains of business, profession or vocation' in respect of the profits or gains of any bminess, profession or vocation carried on by him.", "canonical_name": "Kan•a"}}, {"text": "section 7", "label": "PROVISION", "start_char": 10230, "end_char": 10239, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 10254, "end_char": 10268, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 10(2)", "label": "PROVISION", "start_char": 10547, "end_char": 10560, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 10573, "end_char": 10587, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Basanti Cotton Mills", "label": "ORG", "start_char": 11595, "end_char": 11615, "source": "ner", "metadata": {"in_sentence": "\"Agency Ltd.(1) The Tribunal found as facts: (1) That the Ltd. applicant company agreed to pay off the decretal amount from the remuneration which they are entitled K., nia o. J. to get from the Basanti Cotton Mills."}}, {"text": "Raja Bijoy Singh Dudhuria", "label": "OTHER_PERSON", "start_char": 12555, "end_char": 12580, "source": "ner", "metadata": {"in_sentence": "On behalf of the respondent it was argued in the further alternative that the Privy Council decision in Raja Bijoy Singh Dudhuria's easel.')"}}, {"text": "Mitra", "label": "OTHER_PERSON", "start_char": 13005, "end_char": 13010, "source": "ner", "metadata": {"in_sentence": "When the matter came before the High Court, Mr. Mitra, who argued the case for the present respondents, as shown by the judgment of the High Court, urged as follows:-\" If the applicant company had not agreed to pay the amount mentioned\n\ni 1l [J 921) 1 R. B. 719."}}, {"text": "Basanti Cotton\n\nMills Ltd.", "label": "ORG", "start_char": 13282, "end_char": 13308, "source": "ner", "metadata": {"in_sentence": "12) 61.T, C. 449,\n\n1950 in the aforesaid agreement, then the Basanti Cotton\n\nMills Ltd. would have sued the company for the reali- Oommi\"'•\"\"' of sation of the amounts due on the hundis and it seems\n\nIncom•tax, that there would have been no defence to the action."}}, {"text": "West Bengal", "label": "PETITIONER", "start_char": 13486, "end_char": 13497, "source": "ner", "metadata": {"in_sentence": "West Bengal T ."}}, {"text": "section 10(2)", "label": "PROVISION", "start_char": 13855, "end_char": 13868, "source": "regex", "metadata": {"statute": null}}, {"text": "Mitchell", "label": "OTHER_PERSON", "start_char": 14983, "end_char": 14991, "source": "ner", "metadata": {"in_sentence": "Therefore this case is covered by the judgment of the Court of Appeal in Mitchell's case(') ...... \" Applying this line of reasoning the High Court differed from the conclusion of the Tribunal and allowed the deduction to the respondent company under section 10(2) (xv) of the Income-tax Act, as claimed by the respondents."}}, {"text": "section 10(2)", "label": "PROVISION", "start_char": 15161, "end_char": 15174, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 15187, "end_char": 15201, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Commissioner of Income.tax, West Bengal", "label": "PETITIONER", "start_char": 15239, "end_char": 15278, "source": "ner", "metadata": {"in_sentence": "The Commissioner of Income.tax, West Bengal, has come in appeal to us.", "canonical_name": "COMMISSIONER OF INCOME-TAX,\n\nWEST BENGAL"}}, {"text": "section 10(2)(xv)", "label": "PROVISION", "start_char": 15420, "end_char": 15437, "source": "regex", "metadata": {"statute": null}}, {"text": "Calcutta Agency jurisdiction and under the Act", "label": "STATUTE", "start_char": 15862, "end_char": 15908, "source": "regex", "metadata": {}}, {"text": "Ka1ita C.", "label": "JUDGE", "start_char": 15994, "end_char": 16003, "source": "ner", "metadata": {"in_sentence": "The jurisdiction of the High Court v. in the matter of income-tax references is an advisory Calcutta Agency jurisdiction and under the Act the decision of the Ltd.\n\nTribunal on facts is final, unless it can be successfully\n\nKa1ita C. J, assailed on the ground that there was no evidence for the conclusions on facts recorded by the Tribunal."}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 16462, "end_char": 16476, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 10", "label": "PROVISION", "start_char": 18368, "end_char": 18378, "source": "regex", "metadata": {"statute": null}}, {"text": "Afitchell", "label": "OTHER_PERSON", "start_char": 18971, "end_char": 18980, "source": "ner", "metadata": {"in_sentence": "The High Court overlooked that in Afitchell's case(') the whole discussion started with a quotation from the case stated by the Commissioners as the facts of the case."}}, {"text": "section 10", "label": "PROVISION", "start_char": 19293, "end_char": 19303, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 19321, "end_char": 19335, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 10(2)(iii)", "label": "PROVISION", "start_char": 20734, "end_char": 20752, "source": "regex", "metadata": {"statute": null}}, {"text": "Income Tax Appellate Tribunal", "label": "COURT", "start_char": 21522, "end_char": 21551, "source": "ner", "metadata": {"in_sentence": "At the third stage, when the assessee urged his contentions before the Income Tax Appellate Tribunal, he thought of urging as an argument that this was a permissible deduction under section 10 (2) (xv) because of the principles laid down in Mitchell's case(2)."}}, {"text": "section 10", "label": "PROVISION", "start_char": 21633, "end_char": 21643, "source": "regex", "metadata": {"statute": null}}, {"text": "Income Tax Tribunal", "label": "COURT", "start_char": 21757, "end_char": 21776, "source": "ner", "metadata": {"in_sentence": "No evidence, it appears, was led before the Income Tax Tribunal, nor has the Tribunal recorded any findings of fact on which the principles laid down in Mitchell's case(') could be applied."}}, {"text": "Calcutta Agenoy", "label": "RESPONDENT", "start_char": 22653, "end_char": 22668, "source": "ner", "metadata": {"in_sentence": "Indeed, if it had noticed the contention\n\nCalcutta Agenoy urged before the Income-tax Officer it would have seen Ltd, at once that the argument was in a measure conflicting with that contention which was based on the foot- Kania a. 1 ing of Rs.", "canonical_name": "CALCUTTA AGENCY LTD"}}, {"text": "section 10", "label": "PROVISION", "start_char": 22965, "end_char": 22975, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 22993, "end_char": 23007, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 10", "label": "PROVISION", "start_char": 23192, "end_char": 23202, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 23226, "end_char": 23240, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "P.A. Mehta", "label": "LAWYER", "start_char": 23480, "end_char": 23490, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant : P.A. Mehta."}}, {"text": "Ganpat Rai", "label": "LAWYER", "start_char": 23520, "end_char": 23530, "source": "ner", "metadata": {"in_sentence": "Agent for the respondents: Ganpat Rai."}}]} {"document_id": "1950_1_15_25_EN", "year": 1950, "text": "S.C.R.\n\nSUPREME COURT REPORTS\n\nRAM KRISHNA RAMNATH AGARWAL\n\nOF KAMPTEE v.\n\nSECRETARY, MUNICIPAL COMMITTEE,\n\nKAMP TEE.\n\nUNION OF INDIA AND GOVERNMENT OF\n\nMAD HY A PRADESH : INTERVENERS.\n\n[SHRI HARILAL KANIA C.J., SAIYID FAZL ALI,\n\nPATANJALI SASTRI, MEHR CHAND MAHAJAN, MuKHERJEA, and S.R. DAS JJ.]\n\nGovl!rnment of India Act, 1985, ss. 100, 148, 292; Sch. VII List I, Entry 45; List II, Entry 49-0entral Exciieli and Salt Act (I of 1944), SS. 2, a-Central Provinces Municipalities Act (II of 1922), s. 66 (1) (e)-I mport of tobacco within municipality for manu faoturing bidis-Tobaoco liable to Central excise duty-Levy of ootroi duty by municipality-Legality.\n\nSection 66 (1) (e) of the Central Provinces Municipalities Act, 1922, empowered municipalities within the Province to levy an octroi duty on goods brought within their .limits for sale, con su.mption or use within those limits. Section 3 of the Centr&l Excises and S< Act, 1944, an Act of the Central Legislature,. provided that there shall be levied and. collected duties of excise on all excisable goods other than salt which were produced or manu factured in British India, and included tbbacco in the list of excisable goods. The question being whether a municipality situated in the Central Pro•inces could levy octroi duty on tobacco brought within its limits for the purpose of manufactur ing bidis, in view of the exclusive power of the Central Govern ment to levy excise duty under Entry 45 of List I of the Seventh Schedule to the Government of India Act, 1935, and the provisions of s. 3 of the Central Excises and Salt Act: Held, that excise .duty and octroi were taxes essentially diff erent in their nature and tho power of the Province to levy octroi was not inconsistent with the power of the Centre to levy excise duty on the same goods, and a municipality could therefore validly levy an octroi duty on such tobacco under s. 66(1)(e) of the Central Provinces Municipalities Act of 1922.\n\nHeld further, that there was nothing in the Central Excises and Salt Act or its provisions contrary to the provisions of s. 66(1) (e) of the Central Provinces .Municipalities Act or to the levy of octroi duty under the same and s. 143 of the Government of India Act, therefore, preserved the right of the municipality to levy octroi duty under the Act of 1922.\n\nProvince of Madras v. Boddu Paidanna and Sons (1942) Ji'.C.R. 90; Governor-General in Council v. Province of Madras (1942] F.C.R 129, In re the Central Provinces and Berar Act No. XIV of 1938,\n\nMarch 14\n\nRam Krisltna\n\n[1939] F.C.R. 80, Mi,. Kishori Shetty v. The King [1949) F.C.R. 650 referred to.\n\nAdministrator, Laho1'e Municipality v. Daulat Ram [1942] Ramnatl• F.0.R. 31 distinguished.\n\nAgarwal of Kamptce Judgment of the High Court of Nagpur affirmed. v.\n\nAPPEAL from the High Court of Judicature at Nag- Srmtary, Mun;. pur: Case No. III of 1948. cipal Comn1ittee,\n\nKampt\" This was an appeal from a judgment and order of\n\nKanf4 C.J.\n\nthe High Court of Nagpur (Mis .. Civil No.158 of 1946) dated 9th April, 1948, made on a reference under s. 83 (2) of the Central Provinces Municipalities Act (II of 1922) by the Extra Assistant Commissioner, Nagpur. The facts of the case and the, arguments of counsel appear in the judgment.\n\nT.J. Kedar and B. B. Tawakley (Sri Narain AndJey with them) for the appellant.\n\nLobo, for the respondent.\n\nM. 0.\n\nSetalvad, Attorney-General of India, (8. M. Sikri with him) for the Union of India.\n\n1950. March, 14. The Judgment of the Court was delivered by KANIA C. J.-This is an appeal from the judgment and order of the High Court at Nagpur, made on a reference under Section 83 (2) of the Central Provinces Municipalities Act II of 1922, by the Extra Assistant Commissioner, Nagpur. The appellant is a trader in Kamptee who manufactures bidis. On the 30th of November, 1945, he brought to Kamptee from outside tobacco to make bidis. A declaration form signed on his behalf stated that the 254 bags of tobacco liable to octroi duty, which had that day arrived at octroi post No. 3, had been brought for use and consumption within the limits of the Municipality. He however put on record his protest against the recovery o'f the duty which was fixed at Rs. 1,128-2-0. Against the order claiming the amount, the appellant filed an appeal to the Extra Assistant Commissioner with , revenue appellate powers, Nagpu[. He contended that the municipality claimed to levy the duty under\n\nSection 66 (1) (e) of the Municipal Act, but they had\n\nno right to do so as under Section 3 of the Central I9l50 Excises and Salt Act, 1944, that excise duty was Ram Krishna levied on tobacco by the Central Government and the Ramnath levy of the octroi duty on the tobacco in question was Agarwal of covered by the excise duty and therefore not.permissi- Kamptee ble. The Appellate Assistant Commissioner in making v. . the reference to the Nagpur High Court expressed his scretary, M~·· · h h 11 > • h h ciPal Committee op1mon t at t e appe ant s content10n t at as t e Kamptee ' bidis were not sold within the municipal limits, duty was not leviable, was unsound. He however thought Ilee sale. But that method of collecting the tax is an acv. . cident of administration it is not of the essence of the secretary, Munid t f h\" h ' tt t d b th f t cipal Commillee. u yo exmse, w 1c is a rac e y e manu ac ure KamJ>tee. itself. That this is so is clearly exemplified in those excepted cases in which the Provincial, not the Kania C.J.\n\nFederal, legislature has power to impose a duty of excise. In such cases there appears to be no reason why the Provincial legislature should not impose a duty of excise in respect of the commodity manufactured and then a tax on first or other sales of the same commodity. Whether or not such a course is followed appeara to be merely a matter of administrative convenience. So, by parity of reasoning, may the Federal Legislature impose a duty of excise on the manufacture of excisable goods and the Provincial legislature impose a tax on the sale of the same goods when manufactured.\" This discussion clearly shows that the relevant question is what is the nature of the tax. Excise duty is a tax on manufactured goods. Octroi duty is a tax levied on the entry of goods within a particular area.\n\nUnder the Excise Act, tobacco becomes excisable goods within the meaning of Item 9 in the Schedule. The subsequent use of such manufactured goods in making different articles only affects the rate of tax. Therefore, tobacco becomes subject to excise duty when it reaches the stage of manufacture mentioned in Item 9 of the Schedule to the Excise Act. Even before it is converted into bidis or any other article mentioned in the entry it has become excisable goods and liable to pay excise 1duty. The levy of such duty is therefore not in conflict with the levy of an impost on the entry of the goods within a certain area ..\n\nIt was argued that under the rules framed by the Goyernment under the Central Excises and Salt Act, 1944, Government retained control over the movement of the\n\nRam \" rishna\n\nRaninaf/1 Agarwal of /{amptee v.\n\nSecretary, M11ni\n\nciPal Comtnittee, /{ aniptee\n\nKania C.J.\n\nSUPR!!:ME COURT REPORTS [ 19501\n\ngoods from the beginning till the end.\n\nThis.argument is not of assistance in determining the nature of the octroi tax. As Government has to collect excise duty and the rate of duty varies in respect of different shapes in which the excisable goods are ultimately converted, there is nothing unnatural in the Government keeping a control and note of the articles till the manufactured article becomes a commodity, and is mixed up with the commodities used by the people at large. 'l'he argument that Entry 49 in List II being in conflict with ltee\n\nSecretary, Mt1ni .. ciJ>al Committee,/\n\nKamJ>tee\n\nKania C.J.\n\nl\\Iaroh 1'.", "total_entities": 106, "entities": [{"text": "RAM KRISHNA RAMNATH AGARWAL\n\nOF KAMPTEE", "label": "PETITIONER", "start_char": 31, "end_char": 70, "source": "metadata", "metadata": {"canonical_name": "RAM KRISHNA RAMNATH AGARWAL OF KAMPTEE", "offset_not_found": false}}, {"text": "SECRETARY, MUNICIPAL COMMITTEE,\n\nKAMP TEE", "label": "RESPONDENT", "start_char": 75, "end_char": 116, "source": "metadata", "metadata": {"canonical_name": "SECRETARY, MUNICIPAL COMMITTEE, KAMP TEE", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA C.J.", "label": "JUDGE", "start_char": 187, "end_char": 210, "source": "metadata", "metadata": {"canonical_name": "SHRI HARILAL KANIA C.J.", "offset_not_found": false}}, {"text": "SAIYID FAZL ALI", "label": "JUDGE", "start_char": 212, "end_char": 227, "source": "metadata", "metadata": {"canonical_name": "SAIYID l!'AZL ALI", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 230, "end_char": 246, "source": "metadata", "metadata": {"canonical_name": "M. PATANJALI SASTRI", "offset_not_found": false}}, {"text": "ss. 100, 148, 292", "label": "PROVISION", "start_char": 330, "end_char": 347, "source": "regex", "metadata": {"linked_statute_text": "India Act, 1985", "statute": "India Act, 1985"}}, {"text": "Exciieli and Salt Act", "label": "STATUTE", "start_char": 402, "end_char": 423, "source": "regex", "metadata": {}}, {"text": "SS. 2", "label": "PROVISION", "start_char": 437, "end_char": 442, "source": "regex", "metadata": {"linked_statute_text": "Exciieli and Salt Act", "statute": "Exciieli and Salt Act"}}, {"text": "Central Provinces Municipalities Act", "label": "STATUTE", "start_char": 446, "end_char": 482, "source": "regex", "metadata": {}}, {"text": "s. 66", "label": "PROVISION", "start_char": 497, "end_char": 502, "source": "regex", "metadata": {"linked_statute_text": "Central Provinces Municipalities Act", "statute": "Central Provinces Municipalities Act"}}, {"text": "Section 66", "label": "PROVISION", "start_char": 660, "end_char": 670, "source": "regex", "metadata": {"linked_statute_text": "Central Provinces Municipalities Act", "statute": "Central Provinces Municipalities Act"}}, {"text": "Central Provinces Municipalities Act, 1922", "label": "STATUTE", "start_char": 686, "end_char": 728, "source": "regex", "metadata": {}}, {"text": "Section 3", "label": "PROVISION", "start_char": 888, "end_char": 897, "source": "regex", "metadata": {"linked_statute_text": "the Central Provinces Municipalities Act, 1922", "statute": "the Central Provinces Municipalities Act, 1922"}}, {"text": "India", "label": "GPE", "start_char": 1132, "end_char": 1137, "source": "ner", "metadata": {"in_sentence": "collected duties of excise on all excisable goods other than salt which were produced or manu factured in British India, and included tbbacco in the list of excisable goods."}}, {"text": "List I of the Seventh Schedule to the Government of India Act, 1935", "label": "STATUTE", "start_char": 1465, "end_char": 1532, "source": "regex", "metadata": {}}, {"text": "s. 3", "label": "PROVISION", "start_char": 1556, "end_char": 1560, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "s. 66(1)(e)", "label": "PROVISION", "start_char": 1902, "end_char": 1913, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "s. 66(1)", "label": "PROVISION", "start_char": 2089, "end_char": 2097, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "s. 143", "label": "PROVISION", "start_char": 2196, "end_char": 2202, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "(1942] F.C.R 129", "label": "CASE_CITATION", "start_char": 2446, "end_char": 2462, "source": "regex", "metadata": {}}, {"text": "Ram Krisltna", "label": "PETITIONER", "start_char": 2534, "end_char": 2546, "source": "ner", "metadata": {"in_sentence": "XIV of 1938,\n\nMarch 14\n\nRam Krisltna\n\n[1939] F.C.R. 80, Mi,.", "canonical_name": "Ram Krishna he Ramnath"}}, {"text": "[1939] F.C.R. 80", "label": "CASE_CITATION", "start_char": 2548, "end_char": 2564, "source": "regex", "metadata": {}}, {"text": "[1949) F.C.R. 650", "label": "CASE_CITATION", "start_char": 2598, "end_char": 2615, "source": "regex", "metadata": {}}, {"text": "APPEAL", "label": "RESPONDENT", "start_char": 2792, "end_char": 2798, "source": "ner", "metadata": {"in_sentence": "v.\n\nAPPEAL from the High Court of Judicature at Nag- Srmtary, Mun;."}}, {"text": "High Court of Nagpur", "label": "COURT", "start_char": 2974, "end_char": 2994, "source": "ner", "metadata": {"in_sentence": "cipal Comn1ittee,\n\nKampt\" This was an appeal from a judgment and order of\n\nKanf4 C.J.\n\nthe High Court of Nagpur (Mis .. Civil No.158 of 1946) dated 9th April, 1948, made on a reference under s. 83 (2) of the Central Provinces Municipalities Act (II of 1922) by the Extra Assistant Commissioner, Nagpur."}}, {"text": "s. 83", "label": "PROVISION", "start_char": 3074, "end_char": 3079, "source": "regex", "metadata": {"statute": null}}, {"text": "T.J. Kedar", "label": "OTHER_PERSON", "start_char": 3263, "end_char": 3273, "source": "ner", "metadata": {"in_sentence": "T.J. Kedar and B. B. Tawakley (Sri Narain AndJey with them) for the appellant."}}, {"text": "B. B. Tawakley", "label": "LAWYER", "start_char": 3278, "end_char": 3292, "source": "ner", "metadata": {"in_sentence": "T.J. Kedar and B. B. Tawakley (Sri Narain AndJey with them) for the appellant."}}, {"text": "Narain AndJey", "label": "LAWYER", "start_char": 3298, "end_char": 3311, "source": "ner", "metadata": {"in_sentence": "T.J. Kedar and B. B. Tawakley (Sri Narain AndJey with them) for the appellant."}}, {"text": "Lobo", "label": "OTHER_PERSON", "start_char": 3343, "end_char": 3347, "source": "ner", "metadata": {"in_sentence": "Lobo, for the respondent."}}, {"text": "Setalvad", "label": "RESPONDENT", "start_char": 3377, "end_char": 3385, "source": "ner", "metadata": {"in_sentence": "Setalvad, Attorney-General of India, (8."}}, {"text": "M. Sikri", "label": "LAWYER", "start_char": 3418, "end_char": 3426, "source": "ner", "metadata": {"in_sentence": "M. Sikri with him) for the Union of India."}}, {"text": "KANIA", "label": "JUDGE", "start_char": 3522, "end_char": 3527, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by KANIA C. J.-This is an appeal from the judgment and order of the High Court at Nagpur, made on a reference under Section 83 (2) of the Central Provinces Municipalities Act II of 1922, by the Extra Assistant Commissioner, Nagpur.", "canonical_name": "KANIA C.J."}}, {"text": "High Court at Nagpur", "label": "COURT", "start_char": 3587, "end_char": 3607, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by KANIA C. J.-This is an appeal from the judgment and order of the High Court at Nagpur, made on a reference under Section 83 (2) of the Central Provinces Municipalities Act II of 1922, by the Extra Assistant Commissioner, Nagpur."}}, {"text": "Section 83", "label": "PROVISION", "start_char": 3635, "end_char": 3645, "source": "regex", "metadata": {"statute": null}}, {"text": "Municipalities Act II of 1922", "label": "STATUTE", "start_char": 3675, "end_char": 3704, "source": "regex", "metadata": {}}, {"text": "Nagpur", "label": "GPE", "start_char": 3743, "end_char": 3749, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by KANIA C. J.-This is an appeal from the judgment and order of the High Court at Nagpur, made on a reference under Section 83 (2) of the Central Provinces Municipalities Act II of 1922, by the Extra Assistant Commissioner, Nagpur."}}, {"text": "Kamptee", "label": "GPE", "start_char": 3780, "end_char": 3787, "source": "ner", "metadata": {"in_sentence": "The appellant is a trader in Kamptee who manufactures bidis."}}, {"text": "30th of November, 1945", "label": "DATE", "start_char": 3819, "end_char": 3841, "source": "ner", "metadata": {"in_sentence": "On the 30th of November, 1945, he brought to Kamptee from outside tobacco to make bidis."}}, {"text": "Nagpu", "label": "GPE", "start_char": 4372, "end_char": 4377, "source": "ner", "metadata": {"in_sentence": "Against the order claiming the amount, the appellant filed an appeal to the Extra Assistant Commissioner with , revenue appellate powers, Nagpu[."}}, {"text": "Section 66", "label": "PROVISION", "start_char": 4447, "end_char": 4457, "source": "regex", "metadata": {"linked_statute_text": "Municipalities Act II of 1922", "statute": "Municipalities Act II of 1922"}}, {"text": "Section 3", "label": "PROVISION", "start_char": 4529, "end_char": 4538, "source": "regex", "metadata": {"linked_statute_text": "Municipalities Act II of 1922", "statute": "Municipalities Act II of 1922"}}, {"text": "Excises and Salt Act, 1944", "label": "STATUTE", "start_char": 4560, "end_char": 4586, "source": "regex", "metadata": {}}, {"text": "Nagpur High Court", "label": "COURT", "start_char": 4888, "end_char": 4905, "source": "ner", "metadata": {"in_sentence": "the reference to the Nagpur High Court expressed his scretary, M~·· · h h 11 > • h h ciPal Committee op1mon t at t e appe ant s content10n t at as t e Kamptee ' bidis were not sold within the municipal limits, duty was not leviable, was unsound."}}, {"text": "Section 3", "label": "PROVISION", "start_char": 5162, "end_char": 5171, "source": "regex", "metadata": {"linked_statute_text": "Excises and Salt Act, 1944", "statute": "Excises and Salt Act, 1944"}}, {"text": "Central Government", "label": "ORG", "start_char": 5222, "end_char": 5240, "source": "ner", "metadata": {"in_sentence": "He however thought Itee\n\nSecretary, Mt1ni .. ciJ>al Committee,/\n\nKamJ>tee\n\nKania C.J.\n\nl\\Iaroh 1'.\n\n1915()\n\nBhawanijJore Banking Cor- J>oration, Ltd,\n\nGowri Shankar\n\nSharma\n\nFazl AliJ,\n\nSUPREME COURT REPORTS (1950]\n\ndecree and the application was dismissed for default of appear ance on the ~0th December, 1941, and an application under O. IX, r. 9, C.P.C .• for restoration of this application was also dismissed on the 1st June, 1942. In the meanwhile on the ~2nd December, 1941, a final decree was passed.\n\nThe judgmentdebtor preferred an appeal from the order dismissing his application under o. IX, r. 9, C.P.C., a.nd this appeal was disn1issed for nonprosecution on the 3rd July, 1944. On the 9th April, 1945, the decree-holder applied for execution of the decree: Held that, even assuming that the Y/Ortl \"review\" has been used in Art. 182 of the Indian Limit:ttion Act, 1908, in a wide sense and that the application under ,. 36 of the Bengal Money lenders Act was an application for revibw. cl. 3 of Art. 182 was not a.pplica.ble to the case inasmuch a,; tbe application under s. 36 having been dismissed fo1 default the court had no occasion to apply its mind to the question \\vhether the decree could or should be re-opened ancl it could 11ot therefore be sidd t.ha, t ''there has been a review\" of the decrer \\Yithin the n1eaning of the !'ai \"for the exe cution of a decree or order\" iu the 1st coluwn of the Article and the fa.ct that there was a.n appeal from the order rlis1nissing the application under O. IX. r. 9, wade in connection with the proceeding under s. 36 of Money-lender• Act, could c.ot thernfore give\n\na fresh starting point for limitation under Art. 18~, cl. \\!.\n\nAPPEAL from the High Court of Judicature' at Calcutta: Civil Appeal No. LI of 1949.\n\nManohar Lal, (H. K. Mitter with him), for the appellant.\n\nB. G. Mitter, for the respondent.\n\n1950. March 14.\n\nThe Judgment of the Court was delivered by.\n\nFAZL ALI , J.-The only question to be decided in this appeal, which arises out of an execution proceeding, is whether the decree under execution is barred by limitation. The first court held that the decree was not barred, but the High Court has come to the opposite conclusion, and the decree-holder has, after obtaining a certificate under Section 110 of the Civil Procedure Code, appealed fo this Court. • The facts may be briefly stated as follows.\n\nOn the 21st August, 1940, a preliminary mortgage decree was\n\nS.C.R.\n\nSUPREME COBRT REPORTS 27\n\npassed ex parte in a suit instituted by the appellant to enforce a mortgage. On the 19th September, 1940, the judgment-debtor made an application under Order IX, rule 13, of the Civil Procedure Code for setting aside the ex parte decree, but this application was rejeMed on the 7th June, 1941. On the 11th July, 1941, the judgment-debtor filed an application under Section 36 of the Bengal Moneylendtirs Act, for reopening the preliminary decree, but this application was dismissed for defal}lt of appearance on the 20th December, 1941. Thereafter, a final mortgage decree was passed in favour of the appellant, on the 22nd December. The judgment-debtor then made an applicationunder Order IX, rule 9, of the Civil Procedure Code for the restoration of the proceedings under Section 36 of the Moneylenders Act. The application was however dismissed on the 1st June, 1942, both on the ground that no sufficient cause for the nonappearance of the applicant and his failure to take steps in the proceedings was shown and on the ground that no purpose would be served by reopening the preliminary decree after . the final decree had been passed. The judgment-debtor thereafter preferred an appeal to the High Court at Calcutta from the dedsion dismissing his application under Order IX, rule9, but the appeal was dismissed for non-prosecution, on the 3rd July, 1944. On the 9th April, 1945, the appellant filed an application for executing the decree against the original judgment-debtor, though he .had died previously, and this application was dismissed for default on the 11th May, 1945. On the 2nd June, 1945, the present application for execution was .filed, and the question which we have to decide is whether this application is in time.\n\nIt is quite clear that the application for execution having been macje more than three years after the date of the final decree, it must be held to be timebarred, unless, as has been contended before us, the\n\n6. case falls under either clause 2 or clause 3 of article 182 of the Indian Limitation Act.\n\nUnder these clauses, t.ime to make the applic1ttfon begins t.o run fromi980\n\nBhawaHij>orc BaffliHgCor j>oratiMS, Ltd.\n\nGowi ShaHkar\n\nSharma.\n\nFaz/ Ali].\n\n19ll0\n\nBha.wanipore BaHking Cor-\n\nJ>oratio1i Ltd.\n\nGo11Yi Sl1ankar\n\nShartna,\n\nFusl AUJ.\n\nSUPREME COURT REPORTS ll950] • \"2. (Where there has been an appeal) the date of the final decree or order of the appellate Court, or the withdrawal of the appeal, or\n\n3. (Where there has been a review of judgment) the date of the decision passed on the review .... \"\n\nIt is contended that the case is covered by clause 3, and the ground urged in support of this contention is • that the application made by tbe judgment-debtor for reopening the preliminary mortgage decree under Section 36 of the Moneylenders Act must be regarded as an application for review and time should be held to run from the date of the final order passed in the proceedings connected with that application. In our opinion, there is no substance in this contention. The important words in clause 3 of article 182 are : '\n\n(1) \" where there has been a review \" and (2) \" the decision passed on the review \". These words show that before a case can be brought under article 182, clause 3, it must be shown firstly that the court had undertaken to review the relevant decree or order and secondly, that there has been a decision on the review.\n\nIn the present case, even if it be assumed that the • word \"review\" has been used in article 182 in a large sense and that the application for reopening the decree under Section 36 of the Bengal Moneylenders Act was an application for review, the appellant cannot succeed, because the court never undertook or purported to review the decree in question.\n\nWhat actually happened was that the application under Section 36 for. reopening the prt>liminary decree (not the final decree which is the decree sought to be executed) was dismissed for default and the application under Order IX, rule 9, ofthe Civil Procedure Code for the restoration of the proceedings under Section 36 of the Moneylenders Act was also dismissed. Even if the fact that the judgment-debtor's application under Section 36 was directed against the preliminary mortgage decree is overlooked, that application having been dismissed for default, the court never had occa- J sion to apply its mind to the question as to whether the decree could or should be reopened, and hence it\n\ncannot be said that \" there has been a review \" of the\n\nS.O.R.\n\nSUPREME OOUR1' REPORTS 29\n\ndecree. The proceedings under Order II, rule 9, of the Code of Civil Procedure are not material to the present discussion, because they did not involve a review of the decree under execution but a review, if it is at\n\ne.11 possb~ to call it a review, (which, in our opinion, it is not), of the order dismissing the judgment- •· debtor's application under Section 36 for default.\n\nIt was also suggested by the learned counsel for the appellant.that the case mig'b.t be held to be covered by clause 2 of article 182 on the ground that, even though no appeal was preferred from the final mortgage decree, the words \" where there has been an appeal \" are comprehensive enough toinchide in this case the appeal • from the order dismissing the application under Order\n\nIX, rule 9, of the Civil Procedure Code, made in connection with the proceedings under Section 36 of the Moneylenders Act. This argument also is.a highly far-fetched one, because the expression \"where there has been an appeal\" must be read with the. words in column 1 of article 182, viz., \"for the execution of a ; decree or order of any civil Court ........ \", and, however\n\n•.\\.\n\nbroadly we may constrµe it, it cannot be held to cover an appeal from an/ order which is passed in a coll1Lteral proceeding o\\r w)lich ha.a no direct or immediate connection with tne decree under execution.\n\nIn our view, this appeal has no substance, and we accordingly dililmiss it with costs.\n\nAppeal dismissed.\n\nAgent for the appellant : P. K. Ghatterji.\n\nAgent for the respondent: R.R. Biswas.\n\nBhawaniport Banking Cor. poration Lid.\n\nGo11ri Shat1kar\n\nSharma.\n\nPaz/ All j.", "total_entities": 69, "entities": [{"text": "Section 66", "label": "PROVISION", "start_char": 698, "end_char": 708, "source": "regex", "metadata": {"statute": null}}, {"text": "Rajinder Narain", "label": "LAWYER", "start_char": 909, "end_char": 924, "source": "ner", "metadata": {"in_sentence": "Agent for the appellants: Rajinder Narain."}}, {"text": "S. P. Varma", "label": "LAWYER", "start_char": 953, "end_char": 964, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: S. P. Varma."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 997, "end_char": 1008, "source": "ner", "metadata": {"in_sentence": "Agent for the Union of India: P. A. Mehta."}}, {"text": "BHA W ANIPORE BANKING CORPORA-\n\nTION, LTD", "label": "PETITIONER", "start_char": 1011, "end_char": 1052, "source": "metadata", "metadata": {"canonical_name": "BHAWANIPORE BANKING CORPORATION, LTD", "offset_not_found": false}}, {"text": "GOURISHANKARSHARMA", "label": "RESPONDENT", "start_char": 1058, "end_char": 1076, "source": "metadata", "metadata": {"canonical_name": "GOURISHANKARSHARMA", "offset_not_found": false}}, {"text": "KANIA C.J.", "label": "JUDGE", "start_char": 1093, "end_char": 1103, "source": "metadata", "metadata": {"canonical_name": "KANIA C.J.", "offset_not_found": false}}, {"text": "SAIYID l!'AZL ALI", "label": "JUDGE", "start_char": 1105, "end_char": 1122, "source": "metadata", "metadata": {"canonical_name": "SIR SYED FAZL ALI", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 1125, "end_char": 1141, "source": "metadata", "metadata": {"canonical_name": "M. PATANJALI SASTRI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 1143, "end_char": 1161, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "S. I~. DAS JJ.", "label": "JUDGE", "start_char": 1179, "end_char": 1193, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "Limitation Act", "label": "STATUTE", "start_char": 1196, "end_char": 1210, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Art. 152", "label": "PROVISION", "start_char": 1225, "end_char": 1233, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 30", "label": "PROVISION", "start_char": 1385, "end_char": 1390, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 182", "label": "PROVISION", "start_char": 1570, "end_char": 1578, "source": "regex", "metadata": {"statute": null}}, {"text": "Bengal MoneylenderR Act", "label": "STATUTE", "start_char": 1738, "end_char": 1761, "source": "regex", "metadata": {}}, {"text": "Kania", "label": "JUDGE", "start_char": 1876, "end_char": 1881, "source": "ner", "metadata": {"in_sentence": "The judgment debtor made an application uurlet ij, 36 of tho Bengal MoneylenderR Act for reopeuing the\n\nRani J(rishna\n\nRamHath AgaYWal of\n\nKamJ>tee\n\nSecretary, Mt1ni .. ciJ>al Committee,/\n\nKamJ>tee\n\nKania C.J.\n\nl\\Iaroh 1'.", "canonical_name": "KANIA C.J."}}, {"text": "BhawanijJore Banking Cor- J>oration, Ltd,\n\nGowri Shankar\n\nSharma\n\nFazl AliJ", "label": "PETITIONER", "start_char": 1909, "end_char": 1984, "source": "ner", "metadata": {"in_sentence": "1915()\n\nBhawanijJore Banking Cor- J>oration, Ltd,\n\nGowri Shankar\n\nSharma\n\nFazl AliJ,\n\nSUPREME COURT REPORTS (1950]\n\ndecree and the application was dismissed for default of appear ance on the ~0th December, 1941, and an application under O. IX, r. 9, C.P.C .• for restoration of this application was also dismissed on the 1st June, 1942."}}, {"text": "C.P.C", "label": "STATUTE", "start_char": 2151, "end_char": 2156, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "C.P.C", "label": "STATUTE", "start_char": 2411, "end_char": 2416, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "3rd July, 1944", "label": "DATE", "start_char": 2477, "end_char": 2491, "source": "ner", "metadata": {"in_sentence": "The judgmentdebtor preferred an appeal from the order dismissing his application under o. IX, r. 9, C.P.C., a.nd this appeal was disn1issed for nonprosecution on the 3rd July, 1944."}}, {"text": "9th April, 1945", "label": "DATE", "start_char": 2500, "end_char": 2515, "source": "ner", "metadata": {"in_sentence": "On the 9th April, 1945, the decree-holder applied for execution of the decree: Held that, even assuming that the Y/Ortl \"review\" has been used in Art."}}, {"text": "Art. 182", "label": "PROVISION", "start_char": 2639, "end_char": 2647, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "cl. 3", "label": "PROVISION", "start_char": 2801, "end_char": 2806, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "Art. 182", "label": "PROVISION", "start_char": 2810, "end_char": 2818, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "s. 36", "label": "PROVISION", "start_char": 2887, "end_char": 2892, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "cl. 2", "label": "PROVISION", "start_char": 3236, "end_char": 3241, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "Art. 182", "label": "PROVISION", "start_char": 3245, "end_char": 3253, "source": "regex", "metadata": {"linked_statute_text": "C.P.C", "statute": "Code of Civil Procedure"}}, {"text": "s. 36", "label": "PROVISION", "start_char": 3505, "end_char": 3510, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 18", "label": "PROVISION", "start_char": 3604, "end_char": 3611, "source": "regex", "metadata": {"statute": null}}, {"text": "High Court of Judicature' at Calcutta", "label": "COURT", "start_char": 3639, "end_char": 3676, "source": "ner", "metadata": {"in_sentence": "APPEAL from the High Court of Judicature' at Calcutta: Civil Appeal No."}}, {"text": "Manohar Lal", "label": "OTHER_PERSON", "start_char": 3708, "end_char": 3719, "source": "ner", "metadata": {"in_sentence": "Manohar Lal, (H. K. Mitter with him), for the appellant."}}, {"text": "H. K. Mitter", "label": "LAWYER", "start_char": 3722, "end_char": 3734, "source": "ner", "metadata": {"in_sentence": "Manohar Lal, (H. K. Mitter with him), for the appellant."}}, {"text": "B. G. Mitter", "label": "LAWYER", "start_char": 3766, "end_char": 3778, "source": "ner", "metadata": {"in_sentence": "B. G. Mitter, for the respondent."}}, {"text": "FAZL ALI", "label": "JUDGE", "start_char": 3863, "end_char": 3871, "source": "ner", "metadata": {"in_sentence": "FAZL ALI , J.-The only question to be decided in this appeal, which arises out of an execution proceeding, is whether the decree under execution is barred by limitation."}}, {"text": "Section 110", "label": "PROVISION", "start_char": 4205, "end_char": 4216, "source": "regex", "metadata": {"statute": null}}, {"text": "21st August, 1940", "label": "DATE", "start_char": 4324, "end_char": 4341, "source": "ner", "metadata": {"in_sentence": "On the 21st August, 1940, a preliminary mortgage decree was\n\nS.C.R.\n\nSUPREME COBRT REPORTS 27\n\npassed ex parte in a suit instituted by the appellant to enforce a mortgage."}}, {"text": "11th July, 1941", "label": "DATE", "start_char": 4713, "end_char": 4728, "source": "ner", "metadata": {"in_sentence": "On the 11th July, 1941, the judgment-debtor filed an application under Section 36 of the Bengal Moneylendtirs Act, for reopening the preliminary decree, but this application was dismissed for defal}lt of appearance on the 20th December, 1941."}}, {"text": "Section 36", "label": "PROVISION", "start_char": 4777, "end_char": 4787, "source": "regex", "metadata": {"statute": null}}, {"text": "20th December, 1941", "label": "DATE", "start_char": 4928, "end_char": 4947, "source": "ner", "metadata": {"in_sentence": "On the 11th July, 1941, the judgment-debtor filed an application under Section 36 of the Bengal Moneylendtirs Act, for reopening the preliminary decree, but this application was dismissed for defal}lt of appearance on the 20th December, 1941."}}, {"text": "Section 36", "label": "PROVISION", "start_char": 5187, "end_char": 5197, "source": "regex", "metadata": {"statute": null}}, {"text": "1st June, 1942", "label": "DATE", "start_char": 5268, "end_char": 5282, "source": "ner", "metadata": {"in_sentence": "The application was however dismissed on the 1st June, 1942, both on the ground that no sufficient cause for the nonappearance of the applicant and his failure to take steps in the proceedings was shown and on the ground that no purpose would be served by reopening the preliminary decree after ."}}, {"text": "High Court at Calcutta", "label": "COURT", "start_char": 5612, "end_char": 5634, "source": "ner", "metadata": {"in_sentence": "The judgment-debtor thereafter preferred an appeal to the High Court at Calcutta from the dedsion dismissing his application under Order IX, rule9, but the appeal was dismissed for non-prosecution, on the 3rd July, 1944."}}, {"text": "11th May, 1945", "label": "DATE", "start_char": 5983, "end_char": 5997, "source": "ner", "metadata": {"in_sentence": "On the 9th April, 1945, the appellant filed an application for executing the decree against the original judgment-debtor, though he .had died previously, and this application was dismissed for default on the 11th May, 1945."}}, {"text": "clause 2", "label": "PROVISION", "start_char": 6390, "end_char": 6398, "source": "regex", "metadata": {"statute": null}}, {"text": "clause 3", "label": "PROVISION", "start_char": 6402, "end_char": 6410, "source": "regex", "metadata": {"statute": null}}, {"text": "article 182", "label": "PROVISION", "start_char": 6414, "end_char": 6425, "source": "regex", "metadata": {"statute": null}}, {"text": "Limitation Act", "label": "STATUTE", "start_char": 6440, "end_char": 6454, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Bha.wanipore BaHking", "label": "RESPONDENT", "start_char": 6618, "end_char": 6638, "source": "ner", "metadata": {"in_sentence": "19ll0\n\nBha.wanipore BaHking Cor-\n\nJ>oratio1i Ltd.\n\nGo11Yi Sl1ankar\n\nShartna,\n\nFusl AUJ."}}, {"text": "clause 3", "label": "PROVISION", "start_char": 7012, "end_char": 7020, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 36", "label": "PROVISION", "start_char": 7179, "end_char": 7189, "source": 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"label": "PROVISION", "start_char": 8483, "end_char": 8493, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 36", "label": "PROVISION", "start_char": 8600, "end_char": 8610, "source": "regex", "metadata": {"statute": null}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 9008, "end_char": 9035, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Section 36", "label": "PROVISION", "start_char": 9312, "end_char": 9322, "source": "regex", "metadata": {"statute": null}}, {"text": "clause 2", "label": "PROVISION", "start_char": 9447, "end_char": 9455, "source": "regex", "metadata": {"statute": null}}, {"text": "article 182", "label": "PROVISION", "start_char": 9459, "end_char": 9470, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 36", "label": "PROVISION", "start_char": 9807, "end_char": 9817, "source": "regex", "metadata": {"statute": null}}, {"text": "article 182", "label": "PROVISION", "start_char": 9991, "end_char": 10002, "source": "regex", "metadata": {"statute": null}}, {"text": "P. K. Ghatterji", "label": "LAWYER", "start_char": 10444, "end_char": 10459, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant : P. K. Ghatterji."}}, {"text": "R.R. Biswas", "label": "LAWYER", "start_char": 10488, "end_char": 10499, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: R.R. Biswas."}}, {"text": "Shat1kar\n\nSharma", "label": "LAWYER", "start_char": 10549, "end_char": 10565, "source": "ner", "metadata": {"in_sentence": "Go11ri Shat1kar\n\nSharma."}}]} {"document_id": "1950_1_30_63_EN", "year": 1950, "text": "l[areh li.\n\nSUPREME COURT REPORTS\n\nABDULLA AHMED v.\n\nANIMENDRA KISSEN MITTER.\n\n[SHRI HARILAL KANIA c . .1., SAIYID F AZL ALI, PATANJALI SASTRI, MEHR CHAND MAHAJAN and\n\nS. R. DAS JJ.)\n\nOontmct-.{gencu-Estate b1\"0ker-Authorit11 to ' 11tgotiate a sale' and '3ecure purcha.se1 '-Whether empower& broker to conclw11 contrnct-Constr\"-Otion of contract~Broker finding out purchaur ready awl willing to buy for pries fixed by principal-Principal concl,,.ding contract with same purchaser for lower price-Broker'1 right to commission-Powers of e&late agents.\n\nThe appellant, •u estate broker, was employed by the respondent by a letter .dated 5th May, 1943, to negotiate a sale of a certain property on the terms mentioned_ in a commission note which ran as follows: \"J ...... do hereby authorise yon to negotiate the sale of my property 27, Amratolla Street, free from all encumbrances at a price not less than Rs. 1,00,000. I shall make out a good title to the property. If you succeed in securing a huyer for Rs. 1,00,000, I shall pay you Rs. 1,000 as your remuneration. If the price exceeds Rs. 1,05,000 e.nd does not exceed Rs. 1,10,000, I shall pay you the whole of the excess over Rs. 1,05,000 in addition to your remunemtion of Rs. 1,000 as\n\ntated above.\n\nIn ce.se you can secure a buyer at a price exceed ing Rs. 1,10,000 I shall pay you twentyfive pet cent. of the excess amount over Rs. 1,10,000 in addition to Rs. 6,000 as stated\n\n1tbove.\n\nThis authority will remain in force for one month from !late.\" In pursuance of this contract the appellant found two persons rearly and willing to purchase the property for Rs. 1,10,000 on the 2nd June and by letters exchanged with them he purportecl to conclude the contract for the sale of the property, and on the 3rd June communicated the same to the responrlent.\n\nThe respondent, however, cancelled the authority or the appellant on the 9th June and on the same date entered into an agreement \\Vith a nominee of the said persons for a •ale of the property for Rs. 1,05,000 and eventually executerl a conveyance in their favour for Rs. 1,05,000. The appellant institutecl a suit against the respondent for Rs. 6,000.\n\nHeld, per KANIA C.J., FAZL ALI, PATANJALI SASTRI and DAS .J.T.-(i) that a house or estate agent is in a different position from a hroker at the Stock Exchange owing to the peculiarities or the p1operty with which he has to deal, and an owner employing an estate agent should not, in the absence of clear words to that effect, be taken to have authorised him to conclude a contract or\n\nsale; but the lack of such authority is not inconsistent with an understanding that the agent is . .not to be entitled to his commis- •ion unles• the owner and the purchase1 introduced by the agent\n\ncarried the transaction to completion; (ii) that even j.f the\n\n191JO commission note in the present case were to be construed as making payment of commission conditional on the completion of Abdulla Alimed the tre.nsaotion, the appellant having \"negotiated the sale\" and v. \"secured buyers\" who made a firm offe1 to buy for Rs. 1,10,000, Animendra acquired. the right to the payment of commission on the basis of Kis#n Mitter. that price subject only to the condition that the buyers should • complete the transaction of purchase and sale ; and as this condition was fulfilled when the buyers eventually purchased the property in question; the appellant's right to commission on that basis became absolute, and could not be affected by the circumstance that the respondent fo1 some reason of his own sold the property at a lower price.\n\nMAHAJAN J.-Under the terms of the commission note in the present case the appellant had authority to enter into a binding contract on behalf of the defendant, and, as he had entered i. into such a contract he was entitled to the commission of Rs. 6,000 according to the terms of the comission note. Even conceding that he had no such authority, under the terms of the commission note the agent was entitled to his remuneration as soon as he in troduced a buyer ready and willing to purchase for the price fixed by the o'wner, whether the owner completed the transaction or not.\n\nLuxor (Eastbourne) Ltd. v. Cooper ([1941) A.O. 108) distin guisbed. • Chadburn v. 1'rloore (67 L.T. 257), Rosenbaum v. Belson ((1900) 2 Cb. 267), Durga Charan Mitra v. Rniendra Narain Sinha (36 C.L.J. 467), Wragg v. Lovett ([1948) 2 All E.R. 969) referred to.\n\nAPPEAL from the High Court of Judicature at Calcutta: Civil Appeal No. XLIV of 1949.\n\nThis was an appeal by special leave from a judgment and decree of the High Court of Judicature at Calcutta (Harries C.J. and Mukherjea J.) dated 5th January 1948 which varied a judgment passed by a single Judge l sftting_m the Original Side of the same High Court\n\n(Gentle J:) dated 11th June, 1945. The facts of the case and the arguments of the Counsel appear fully in the judgment.\n\nM. 0. Setalvad (A. K. Sen with him), for the appellant.\n\nB. Sen, for the respondent.\n\n- - appellant who is carrying on business as an estate broker in Calcutta was employed by the respondent on the terms mentioned in a commission letter dated the 5th May, 194-3, to \"negotiate the sale\" of premises No. 27, Amratolla Street, Calcutta, belonging to him.\n\nIn pursuance of this contract the appellant found two persons who were ready and willing to purchase the property for Rs. l,10,000, and by letters extri J.\n\nAbdulla Ahmatanjali\n\nSastri J.\n\nMahajan}.\n\ncontingent right\" and arose only when the purchase materialised.\n\nAs Lord Simon put it \" The agent is promised a reward in return for an event and the event has not happened\". But the position is different where the principal, availing himself of the efforts of the agent, concludes the sale with the purchaser introduced by him, as the respondent did in the present case.\n\nAs observed by Lord Russell of Killowen in the same case, \"where a contract is concluded with the purchaser, the event has happened upon the occurrence of which a right to the promised commission has become vested in the agent. From that moment no act or omission by the principal can deprive the agent of his vested right\". Applying that principle, (even if the commission note in the present case were to be construed as making payment of commission conditional on the completion of the transaction, as it was in the English case) the appellant, having \"negotiated the sale\" and \"secured buyers\" who made a firm offer to buy for Rs. 1,10,000 had done everything he was required by the respondent to do and acquired a right to the paymel)-.\n\n- that is sufficient authority to the agent to sign a con- 1950 tract for the sale of the property fort.he price stated in the instructions, without making any provision wha_ tso- Atididla Alimed v. ever as to title. In considering whether the instructions - Animendra of October, 1872, were a sufficient authority to the agent Kissen Mitter. for that purpose, I cannot help expressing an opinion that such an authority to an agent on the part of a Maliajan J. vendor would be highly imprudent, as the purchaser would then be entitled to require, on completion, attested copies of all documents of title, and the expense of them would swallow up, to a great extent, the purchase money. This estate agent must have known that if this property had been offered for sale by public auction there would have been conditions to guard the vendor against being subject to c('lrtain expenses, and to prevent the contract becoming abortive by reason of a purchaser requiring a strictly marketable title. Could he suppose that he was invested with authority to sign a contract without considering what it should contain as regards title? As an intelligent and well informed person, he could not suppose that he was properly discharging his duty to his principal when he signed the contract which he signed; such a contract was not one within the scope of his authority to sign.\"\n\nThe case therefore stood decided on the construction of the document. It was remarked that in those circumstances it was not necessary to decide what words would confer such an authority. Having said so, the learned Vice-Chancellor proceeded to observe as follows:-\n\n\"but I nevertheless state my opinion to be, that when instructions are given to an agent to find a purchaser of landed property, he, not being instructed as to the conditions to be inserted in the contract as to title, is not authorized to sign a contract on the part of the vendor.\"\n\nThis case can hardly be said to be an authority for the construction of the agreement that we are called upon to construe in the present case. Considerable emphasis was laid in that case on the point that no instructions had been given as to the conditions that had to he\n\n1915() .\n\nAbdulla Ahmed\n\nAnimt!ndra\n\nKissn Mitter.\n\nMahajan J.\n\ninserted in the agreement as to title. In the present case the agent was told that the principal guaranteed marketable title. He was further told that the sale should be free of encumbrances. All the material conditions of sale were thus contained in the present agreement.\n\nThe next case on which considerable reliance was placed in the courts below is the case of Chadburn v.\n\nMoore('). In this case an advertisement appeared in the Daily Telegraph in these words:-\n\n\" Forced sale by order of the niortgagees-thirtyfour well built houses, situated at Grays, closa to the station on the London, Tilbury, and 'd11/lt1 Al11n, d\n\nAui111eudra f{issen Mitto.\n\nMt1ht1jt1t1 J.\n\n19ll0\n\nAbdulla Altmed\n\nAnimendra l\\\"issen Mitter.\n\nMahajau }.\n\ncould not have taken a conveyance of sale of the plot.\n\nIn the present case the attitude adopted by the parties, as already pointed out, was entirely different. Sir Asutosh Mookerjee also cited the case of Rosenbaum v.\n\nBelson ('). In this case the learned Judge made the following observations:-\n\n\"To my mind there is a substantial difference between those expressions .. Authorizing a man to sell means an authority to conclude a sale; authorizing him to find a purchaser means less than that-it means to find a man willing to become a purchaser, not to find him and also make him a purchaser.\"\n\nIn Saunders v. Dence('), Field J. distinguished Hamer v. Sharp('), saying that 'all th&t Hall, V.C., in that case decided, as I understand it, was that if you go to an estate agent, and tell him you have a property to sell, and that you want a purchaser, and you tell him what you have made up your mind shall be the price, and to a certain extent what shall be the conditions, and you instruct him to try and find a purchaser, that is not sufficient, under those circumstances, to authorize the agent to make a contract without any conditions whatever with regard to the title'.\n\nI have been unable to find any case in which it has been held 'that.Jnstructions given by A.B. to sell for him his house, and an agreement to pay so much on the purchase price accepted, are not an authority to make a binding contract, including an au.thority to sign an agreement.\n\nIn my opinion, on the terms of the instrument in this case and in view of the relevant evidence the correct conclusion to draw is that the agent had authority to enter into a binding contract with the purchaser and that he did and is therefore entitled to succeed in the case.\n\nReference in this connection may be made to Wragg v. Lovett('), where Lord Greene, M.R., put the proposition in these words:-\n\n\" Whether or not the . agents were authorized (or, what in law is the same thing, reasonably understood\n\n(ll 11900) 2 Ch. 267.\n\n(2) 62 L.T. G4'1.\n\n(8) 19 E:i 108.\n\n!') [19•SJ 2 A.E.R. 969.\n\nthemselves to be authorized) to make this particular contract\",\n\nand it was held that the proper inference from all the facts of the case was that the defendant was satisfied to allow his agents to make whatever contract they thought best and relied on them to protect his interests provided, and provided only, that they obtained the desired statement from the plaintiff as to his intention to remain in the house. The answer to the question depends on the facts of each individual case and though authority to make a binding contract has not to be lightly inferred from vague or ambiguous lnguage but from substantial grounds, that however does not mean that in express words it should be stated that the agent is authorized to sell the property.\n\nThe learned Chief Justice in the judgment under appeal observed that \"the agent had undertaken to negotiate a sale and secure a buyer. He could not be said to have either secured a buyer or negotiated a sale unless a sale actually took place or at least a contract of sale had been entered into\". If that is the correct construction of the note, then in my judgment, the true implication of the note is that the agent was authorized to enter into a bin'ding contract, because othewise he could not have secured a buyer. Later on, the learned Chief Justice while referring to the case.of Rosenbaum\n\nv. Belson(1), took the view that authorizing a man to sell meant an authority to conclude a sale and authorizing a man to find a puchaser meant less than that. It meant finding a man willing to become a purchaser, not to find him and also make him a purchaser. If that was the duty entrusted to the agent, then he had clearly performed his duty and was entitled to his commission.\n\nFor the reasons gi\\; en above I am o\"fthe opinion that the plaintiff had authority to enter into a binding contract on behalf of the defendant and he entered into such a contract and thereby earned the C61,!; lmission which he has claimed in the suit and he is entitled to a\n\n(1) [1900] 2 Ch. 267. 8\n\nAbdulla Ahmed\n\nAui111£ n,/ru /(i,')se.i Mitter.\n\nMahaja11 J.\n\n1911()\n\nAbdulla Aluned\n\n•• Animendf'a I( i.-rsen Mittr.\n\nMahajan}.\n\ndecree in the sum of Rs. 6,000 which the trial Judge hadgiven to him, with all costs throughout.\n\nConceding for the sake of argument that the construction that I have placed on the agreement entered into between the principal and the agent is not the correct one, the question arises whether in that event the decision under appeal can be maintained. I am inclined to the opinion that even on the construction placed by the trial Judge on the commission note the view taken by him was the correct one and the court of appeal arrived at a wrong conclusion by giving too much importance to certain obiter observations of Lord Russ(lll of Killowen and Lord Romer in Luxor (Eastbourne) Ltd. v. Gooper(1). In this very case it was pointed out by Viscount Simon L. C. that there were at least three different classes of cases in which the question of a right to commission could arise. He states the first of them in these terms:-\n\n\"There is the class in which the agent is promised a commission by his principal if he succeeds in introduc ing to his principal a person who makes an adequate\n\n' .\n\noffer, usually an offer of not less than the stipulated - amount. If that is all that is needed in order to earn his reward, it is obvious that he is entitled to be paid when this has been done, whether this principal accepts the offer and carries through the bargain or not. No implied term is needed to secure this result.\"\n\nIn my opinion, the present case falls within this class of case and commission became payable on the introduction of a willing buyer by the agent to the principal.\n\nIn Burchell v. Gowrie & Blockhouse Collieries Ltd. (1) it was observed by their Lordships of the Privy Coun cil that if an agent brings a person into relation with his principal as an intending purchaser, the agent has done the most effective, and possibly, the most labo rious and expensive, part of his work, and that if the principal takes advantage of that work, and, behind the back of the agent and unknown to him, sells to the purchaser thus brought into touch with him on terms\n\n(1) [19'1] A.C. 108. l~) (1910] A.C. 614.\n\nwhich the a.gent theretofore advised the principal not to accept, the agent's act may still well be the effective cause of the sale and that there can be no real difference between such a case and those cases where the principal sells to the purchaser intr@duced by the agent at a price below the limit given -to the agent.\n\nIn ln¢h/Jald v. Western Neilgherry Coffee etc.' Oo.(1) Willes J,. thus lays down the rule of law applicable to SUGh cases : -\n\n. -- u I apprehend that wherever money is to be paid by oue man to another upon a. given event, the party upon whom is cast the obligation to pay, is liable to the party who is to receive the money if he does any act which prevents or makes it less probable that he should receive it.\"\n\nThe rule has been stated by Story on Agency at page 404 in the following terms :-\n\n\"The general rule of law, as to commissions, undoubtedly is, that the whole service or duty must be performed, before the right to any commissions attaches, either ordinary or extraordinary ; for an agent must complete the thing required of him, before he is entitled to charge for it. In the case of brokers employed to sell real estate, it is well settled that they are entitled to their commission when they have found a. purchaser, even though the negotiations are conducted and concluded by the principal himself; and also where there is a failure to complete the sale in consequence of a defect in title and no fault on the part of the brokers.\"\n\nIn my judgment therefore, Gentle J. was right when he held on the interpretation placed by him on the document that the plaintiff had earned his commission in full iµasmuch as be had secured a buyer who was ready, able and willing to buy the property fol'. Rs. 1,10,000.\n\nAs l have indicated above, if the word \"buyer\" is to be construed in a strict sense, then it must be .held that the broker had authority to secure a buyer of that type an~ he could only do so by making a binding\n\n(1) 17 O.B. (N.B.) 788.\n\n1915()\n\nAbdulla Ahmul\n\nA.nime•ldra K isseu Jlfittcr.\n\nMahajati J.\n\n1911()\n\nAb:lulla AJ11ned\n\nAfiintendra Ki.ssen ,\\fitter.\n\ncontract with him. On the other hand, if the word is taken to mean a potential buyer, such a buyer having been secured, the agent was entitled to the commission that had been promised to him.\n\nIt is now convenient to consider the case of Luxor (Eastbourne) Ltd. v. Cooper(') in some detail because certain observations made by Lord Russell of Killowen and Lord Romer are the basis of the decision of the learned Chief Justice. In this case no commission note was addressed to the broker and the contract was not contained in any document. Evidence in support of the commission agreement was oral and its terms had to be deduced from that evidence. Viscount Simon L. C., out of the materials from which express contract had to be pieced together, reached the result that the bargain was this:\n\n\"If a party introduced by the respondent should buy the cinemas for at least £1,85,000, each of the two appellants would pay to the respondent £5,000 on the completion of the sale.\"\n\nNo such sale took place, and in those circumstances it was hel~ that there could be nothing due to the respondent on the terms of the express bargain. It was then argued that since the proposed purchasers introduced by the respondent were and remained willing and able to buy the properties for the minimum price, while the appellants did not close with the offer, the appellants were . liable in damages to the respondent for breach of an implied term of the commission contract. In the statement of claim the implied term was said to be that the appellants would \"do nothing to prevent the satisfactory completion of the transaction so as to deprive the respondent of the agreed commission.\" The breach pleaded was the failure to complete the contract of sale with th\\) respondent's client and the disposal of the subject-matter in another quarter. The Lord Chancellor was of the opinion that the suggested implied term was not necessary in this contract and it was observed that in contracts made with commission agents there was no justification for introducing a.11 implied term unless it was necessary to\n\n(1) [19U] A.C .. 108,\n\ndo so for the purpose of giving to the contract th'.e business effect which both parties to it intended it should have.\n\nLord Russell of Killowen in his opinion said that the only right of the plaintiff was to receive his commissi_on out of the purchase moneys if and when received. His right was a purely contingent right. He stood to earn a very large sum at comparatively small pains, taking the risk of either side withdrawing from the negotiations before any binding contract of sale and purchase was concluded, or of the contract for any reason not being carried to completion. In this view of the case the action was bound to fail and no occasion arose for pronouncing on the correctness or otherwise of the view expressed by the Court of Appeal in Trollope & Sonav.\n\nMartyn Brothera(1).\n\nThen it was said that as the question of these commission contracts was discussed at great length, that furnished an excuse for stating briefly conclusions which his Lordship's mind, free as it was from the fetter of previous decisions, reached. In dealing with the subject the following observations were made:-\n\n\"I can find no safe ground on which to base the introduction of any such implied term. Implied terms, as we all know, can only be justified under the compulsion of some necessity.\n\nNo such compulsion or necessity exists in the case under consideration.\n\nThe agent is promised a commission if he introduces a purchaser at a specified or minimum price. The owner is desirous of selling. The chances are largely in favour of the deal going through, if a purchaser is introduced.\n\nThe agent takes the risk in the hope of a substantial remuneration for comparatively small exertion. In the case of the plaintiff his contract was made on September 23, 1935; his client's offer was made on October 2, 1935.\n\nA sum of £10,000 (the equivalent of the remuneration of a year's work by a Lord Chancellor) for work done within a period of eight or nine days is no mean reward, and is one well worth a risk. There is no lack of business efficacy in such a contract, even\n\n(1) [1984] 2 K.B. 486.\n\n1911tl\n\nAbdulla Ahmed\n\nAnimendra\n\nKissn Mitter.\n\nMahajan J.\n\nAb4uUo Ah-tl ..,, Atlimnsdra Kis&m Jl; Uer.\n\nM aloaj\"\" J.\n\nthough the principal is free to refuse to sell to the agent's client.\n\nThe position will no doubt be different if the matter has proceeded to the stage of a binding contract having been made between the principal and the agent's client. In that case it can be said with truth that a 'purchaser' has been introduced by the agent; in other words, the event has happened upon the occurrence of which a right to the promised commission has become vested in the agent. From that moment no act or omission by the principal can deprive the agent of that vested right.\"\n\nIt is the observations last quoted which are the basis of the decision of the learned Chief Justice in the pre- -sent case. It seems to me that these observations had reference to cases visua.Jized by Lord Russell ofKillowen in the earlier part of this quotation with specific reference to the facts found in that case and cannot apply to all cases where the word ' purchaser' or 'buyer' has been loosely used in a different context.\n\nLord Romer in his opinion made the following obser vations :-\n\n\"But supposing that a contract by one person to pay another a sum of money in the event of the latter performing an unsolicited service. t6 the former is as\n\nmuch subject to an implied condition as if the latter had been employed to perform the srvice, the condition is in general one that merely imposes on the former a negative and not a positive obligation. If I employ a man for reward to build a house on my land I subject myself to an implied condition that I will do nothing to prevent him carrying out the work. But I am under no implied obligation to help him earn the reward whether by the supply of building materi11ols or otherwise. But there are exceptional cases where in a contract of employment the employer is under a positive obligation. If, for instance, I employ an artist to paint my portrait I subject myself to the positive obligation of giving him the requisite sittings.\n\nThe question, then, to be dermined upon the hypothesis that I mentioned just now is .this : Where an owner of\n\nproperty employs an agent to find a purchaser, which must mean at least a person who enters into a binding contract to purchase, is it an implied term of the contract of agency that, after the agent has introduced a person who is ready, willing and able to purchase at a price assented to by the principal, the principal shall enter into a contract with that person to sell at the agreed price subject only to the qualification that he may refuse to do so if he has just cause or reasonable excuse for his refusal ? This qualification must plainly be added, for the respondent does not contend, and no one could successfully contend, that the obligation of the principal to enter into a contract is an unconditional one.\"\n\nThe learned Chief Justice relying on the last part of the above quotation reached the conclusion that in the present case as the duty of the agent was to secure a purchaser, it could not be held that the purchaser had been secured till the contract of sale was concluded by the vendor with him and that the actual sale having been concluded for a sum of Rs. 1,05,000, the plaintiff ~9uld only get his remuneration on the basis of the price for which the sale was made and not on the basis of the offer the plaintiff had secured. It seems to me that when Lord Romer was laying down that a purchaser in such contracts means at least a person who enters into a binding contrct to purchase, he had in mind the contract with which he was dealing in that case ..\n\nI am free to think that Lord Romer had not in mind commission notes herein the word \"buyer\" or \"purchaser\" had been employed in a loose sense.\n\nIn Jones v. Lowe(1), wherein the instrument was in these terms-\n\n\"In the event of my introducing a purchaser, I shall look to you for the payment of the usual commission in accordance with the scale fixed by the Auctioneers and Estate Agents Institute'', Hilbery J. said that hadhebeenfreeofauthority, he should have thought that there were strong grounds for saying that what every owner of a house who desired to\n\n11) [19, ll] 1 K.B. 78.\n\n19&0\n\nAbdulla Ahmeil\n\nAnimenilra l(issen MUler.\n\nMahajan J.\n\nAbdulla Ahmed v.\n\nAnlntendra Kiuen Mitter.\n\nMahajan].\n\nsell it expected a house agent to do, was to bring the property fairly to the notice of persons who resorted to him for houses and endeavour to persuade one of them to buy it. The learned Judge further observed as follows:-\n\n\"If the agent introduces someone who is perfectly willing to go through with the purchase at a price which will satisfy the vendor, it would seem that the agent has done everything that the parties contemplate that he should do, for they do not contemplate that 'the agent should have anything to do with the actual completion of the transaction. He is to find a person who will pay the price which is asked for the property, and the contract is entered into on the basis that the person so found will be the person to whom the owner of the property will sell.\n\nIt seems to me hard, if an agent has done to the full extent what the parties contemplated that he should do, that he should not be entitled to say 'I have done what I contracted to do because I have introduced someone willing to purchase although he never, in fact. became the actual purchaser'. I do not feel, however, that it is open to.me to put thp.t construction on the words of the contract in the present case because I think that the observations made in the House of Lords, and particularly those of Lord Russell ofKillowen and Lord Romer in Luxor (Eastbourne) Ltd. v. Cooper('), ahow that they were clearly of opinion that if an agent is employed to introduce a purchaser for a house and before the purchaser has entered into a binding and legal contract, the house is withdrawn from the market, the agent cannot say that he has earned his commission.\"\n\nIn a later case, E. H. Bennett v. Millet('), the same learned Judge had to deal with a case where the contract was in these terms :-\n\n\"We confirm that in the event of our introducing a purchaser who is able and willing to complete the transaction, our commission will be in accordance with the recognized scale .... \".\n\nThe plaintiffs introduced a prospective purchaser, whom the court found to have been at all times able\n\n(l) [19U] A.C. 108,\n\n12) (19<8) 2 All E.R. 929,\n\nand willing to purchase, but the defendant refused to complete. It was argued by the defendant that the qualification of the word \"purchaser\" in the plaintiffs' letter was otiose and therefore should be struck out and the plaintiffs had not performed the contract until they had introduced a person who actually completed the purchase, It was held that the expression \"a purchaer who is able and willing to complete the transaction\"\n\nmeant not a person who did, in fact, ultimately purchase the property, but one who was prepared to purchase it at the seller's price, and, as the estate agents had found suQh a person, they were entitled to their commission. The learned Judge further stated that in ordinary parlance we do not use the word \"purchaser\" as necessarily restricted to a person who actually completes a transaction of purchase and sale.\n\nIn my judgment, therefore, on the alternative interpretation which has been placed by the two courts below on the commission note the word \"purchaser\" cannot be read in the strict sense in which it was read in Luxor's case (1), but should be read in the sense in which it is loosely used in common parlance, and that being so, the decision under appeal cannot be sustained.\n\nl\\Ir. Setalvad cited a number of Indian authorities where the words \"buyer\" and \"purchaser\" had not been given the strict meaning that had been given in Luxor' s case (1).\n\nSimilarly, the words \"lender\" and \"borrower\" had been given the meaning of \"potential lender\" and \"potential borrower\". It is, however, unnecessary to enter into a discussion of all those cases as it does not in any way advance the matter beyond what I have already said. It is unnecessary to go into the third contention of Mr. Setalvad in view of the above decision.\n\nFor the reasons given above I agree with the conclusion reached by my brother, Patanjali Sastri, in the judgment just delivered by him, that the appeal be allowed with costs throughout.\n\nAgent for the appellant: Agent for the respondent:\n\n(1) [1941] A.O. 108.\n\nAppeal allowed.\n\nS. P. Varma.\n\nSukurnar Gho8e.\n\n19!50\n\nAbduJla Ahtned\n\nAni11iettclra Kissen Mitter.\n\nMahaja11 J.", "total_entities": 112, "entities": [{"text": "ABDULLA AHMED", "label": "PETITIONER", "start_char": 35, "end_char": 48, "source": "metadata", "metadata": {"canonical_name": "Abdulla Alimed", "offset_not_found": false}}, {"text": "ANIMENDRA KISSEN MITTER", "label": "RESPONDENT", "start_char": 53, "end_char": 76, "source": "metadata", "metadata": {"canonical_name": ".AnimenJ,.a Kissen Milter", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA", "label": "JUDGE", "start_char": 80, "end_char": 98, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA", "offset_not_found": false}}, {"text": "SAIYID F AZL ALI", "label": "JUDGE", "start_char": 108, "end_char": 124, "source": "metadata", "metadata": {"canonical_name": "SIR SYED FAZL ALI", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 126, "end_char": 142, "source": "metadata", "metadata": {"canonical_name": "Patanja.li Sastri", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 144, "end_char": 162, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "S. R. DAS JJ.", "label": "JUDGE", "start_char": 168, "end_char": 181, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "KANIA", "label": "JUDGE", "start_char": 2175, "end_char": 2180, "source": "ner", "metadata": {"in_sentence": "Held, per KANIA C.J., FAZL ALI, PATANJALI SASTRI and DAS .J.T.-(i) that a house or estate agent is in a different position from a hroker at the Stock Exchange owing to the peculiarities or the p1operty with which he has to deal, and an owner employing an estate agent should not, in the absence of clear words to that effect, be taken to have authorised him to conclude a contract or\n\nsale; but the lack of such authority is not inconsistent with an understanding that the agent is .", "canonical_name": "Kania C."}}, {"text": "FAZL ALI", "label": "JUDGE", "start_char": 2187, "end_char": 2195, "source": "ner", "metadata": {"in_sentence": "Held, per KANIA C.J., FAZL ALI, PATANJALI SASTRI and DAS .J.T.-(i) that a house or estate agent is in a different position from a hroker at the Stock Exchange owing to the peculiarities or the p1operty with which he has to deal, and an owner employing an estate agent should not, in the absence of clear words to that effect, be taken to have authorised him to conclude a contract or\n\nsale; but the lack of such authority is not inconsistent with an understanding that the agent is .", "canonical_name": "FAZL ALI"}}, {"text": "Animendra", "label": "OTHER_PERSON", "start_char": 3087, "end_char": 3096, "source": "ner", "metadata": {"in_sentence": "1,10,000, Animendra acquired."}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 3586, "end_char": 3593, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-Under the terms of the commission note in the present case the appellant had authority to enter into a binding contract on behalf of the defendant, and, as he had entered i. into such a contract he was entitled to the commission of Rs.", "canonical_name": "Mahajati"}}, {"text": "High Court of Judicature at Calcutta", "label": "COURT", "start_char": 4442, "end_char": 4478, "source": "ner", "metadata": {"in_sentence": "APPEAL from the High Court of Judicature at Calcutta: Civil Appeal No."}}, {"text": "Harries C.J.", "label": "JUDGE", "start_char": 4620, "end_char": 4632, "source": "ner", "metadata": {"in_sentence": "This was an appeal by special leave from a judgment and decree of the High Court of Judicature at Calcutta (Harries C.J. and Mukherjea J.) dated 5th January 1948 which varied a judgment passed by a single Judge l sftting_m the Original Side of the same High Court\n\n(Gentle J:) dated 11th June, 1945.", "canonical_name": "Harries C.J."}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 4637, "end_char": 4646, "source": "ner", "metadata": {"in_sentence": "This was an appeal by special leave from a judgment and decree of the High Court of Judicature at Calcutta (Harries C.J. and Mukherjea J.) dated 5th January 1948 which varied a judgment passed by a single Judge l sftting_m the Original Side of the same High Court\n\n(Gentle J:) dated 11th June, 1945."}}, {"text": "M. 0. Setalvad", "label": "JUDGE", "start_char": 4898, "end_char": 4912, "source": "ner", "metadata": {"in_sentence": "M. 0."}}, {"text": "A. K. Sen", "label": "LAWYER", "start_char": 4914, "end_char": 4923, "source": "ner", "metadata": {"in_sentence": "Setalvad (A. K. Sen with him), for the appellant."}}, {"text": "B. Sen", "label": "LAWYER", "start_char": 4955, "end_char": 4961, "source": "ner", "metadata": {"in_sentence": "B. Sen, for the respondent."}}, {"text": "Kania C.", "label": "JUDGE", "start_char": 5025, "end_char": 5033, "source": "ner", "metadata": {"in_sentence": "The judgment of Kania C. J., and Fazl Ali, Patanjali Sastri and Das JJ.,", "canonical_name": "Kania C."}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 5042, "end_char": 5050, "source": "ner", "metadata": {"in_sentence": "The judgment of Kania C. J., and Fazl Ali, Patanjali Sastri and Das JJ.,", "canonical_name": "FAZL ALI"}}, {"text": "Patanjali Sastri", "label": "JUDGE", "start_char": 5052, "end_char": 5068, "source": "ner", "metadata": {"in_sentence": "The judgment of Kania C. J., and Fazl Ali, Patanjali Sastri and Das JJ.,", "canonical_name": "Patanja.li Sastri"}}, {"text": "Das", "label": "JUDGE", "start_char": 5073, "end_char": 5076, "source": "ner", "metadata": {"in_sentence": "The judgment of Kania C. J., and Fazl Ali, Patanjali Sastri and Das JJ.,"}}, {"text": "Patanja.li Sastri", "label": "JUDGE", "start_char": 5099, "end_char": 5116, "source": "ner", "metadata": {"in_sentence": "was delivered by Patanja.li Sastri J.: Mahajan J. delivered a separate judgment.", "canonical_name": "Patanja.li Sastri"}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 5121, "end_char": 5128, "source": "ner", "metadata": {"in_sentence": "was delivered by Patanja.li Sastri J.: Mahajan J. delivered a separate judgment.", "canonical_name": "Mahajati"}}, {"text": "Sastri", "label": "JUDGE", "start_char": 5234, "end_char": 5240, "source": "ner", "metadata": {"in_sentence": "Patanjali\n\nSastri J,\n\nPATANJALI SASTRI J. This is an appeal by special leave from a judgment and decree of the High Court of Judicature at Fort William in West Bengal dated 5th January, 1948, which varied a judgment and decree passed by a single Judge on 11th June, 1945, on the Original Side of the same Court."}}, {"text": "High Court of Judicature at Fort William in West Bengal", "label": "COURT", "start_char": 5334, "end_char": 5389, "source": "ner", "metadata": {"in_sentence": "Patanjali\n\nSastri J,\n\nPATANJALI SASTRI J. This is an appeal by special leave from a judgment and decree of the High Court of Judicature at Fort William in West Bengal dated 5th January, 1948, which varied a judgment and decree passed by a single Judge on 11th June, 1945, on the Original Side of the same Court."}}, {"text": "Calcutta", "label": "GPE", "start_char": 5602, "end_char": 5610, "source": "ner", "metadata": {"in_sentence": "Th<> appellant who is carrying on business as an estate broker in Calcutta was employed by the respondent on the terms mentioned in a commission letter dated the 5th May, 194-3, to \"negotiate the sale\" of premises No."}}, {"text": "5th May, 194-3", "label": "DATE", "start_char": 5698, "end_char": 5712, "source": "ner", "metadata": {"in_sentence": "Th<> appellant who is carrying on business as an estate broker in Calcutta was employed by the respondent on the terms mentioned in a commission letter dated the 5th May, 194-3, to \"negotiate the sale\" of premises No."}}, {"text": "2nd June, 1943", "label": "DATE", "start_char": 5976, "end_char": 5990, "source": "ner", "metadata": {"in_sentence": "l,10,000, and by letters exf s. 42 (8}.\n\nSection 5 of the Excess Profits Tax Act, 1940, provided that \"the Act shall apply to awry business of which any part of the profits made during the chargeable accounting period was chargeable to income-tax.\" There was also a proviso to the effect that \"the Act shall not apply to any business, the whoie of the profits of which accrued or arose in an Indian State and that where the profits of a part of a business aoorued or arose in an Indian State, such part shall for the purpose of this provision be deemed to be a separate business, the whole of the profits of which accrued or arose in an Indian State, and the other part of the business shall be deemed to be a separate business.\" A firm which was resident in British India and carried on the business of manufacturing and selling groundnut oil, owned some oil mills within British India and a mill in Raichur in the Hyderabad State where oil was manufactured.\n\nThe oil manufac tured in Raichur was sold partly within the State of Hyderabad and partly in Bombay :\n\nHelil,. lnJ the Fitll Comt (KANIA C. J., PATANJALI SASTRI, FAZL ALI, MEHR CHAND MAHA.JAN, MUKHERJEA and DAS JJ.)- The expression \"part of a business\" in the provieo to section 5 does not necessarily mean a separate composite unit of all the constituent activities of the business or a complete crosssection of the entire business operations but is wide enough to mean one or more of the operations of the business, and that the manufacturing operations which the firm carried on at Raichur were \"a part of tho business\" of the assessees within the meaning of the proviso. to section 5 of the Act.\n\nHeld also pe1 K~NIA C .. J., FAZL ALI, :\\IEHH CHAND l\\LULUAN, l\\11..\"KHEHJEA and DAS J.J.-that the profits of that part of the business, namely, the manufacture of oil at the mill in Raichur accrued or arose in Haichur within the meaning of the said proviso, even though Lhe manufactured oil was sold in Bombay and the price\n\nwas received there, and accordingly, that part of the profits derived from sales in Bombay which was attributable to the manufacture of the oil in Haichur was exempt from excess profits tax nnder the proviso to section 5 of the Act.\n\n~2-A\n\n195fl\n\nMay 4\n\nCo111111issio1tcr of /Jtco1uc-tax,\n\nBo111fJay\n\nAluucdbhai U111arbhai & Co.\n\nPer P.\\TANJALI SAS TRI J.-The first part of sub-section (1) of section 42 of the Income-tax A.ct was applicable to the assessees, the expressions \"business connection in British India\" and '\"asset or source of income in British India'' being wide enough to cover their selling organisation at Bombay ; and as a xesult, the profits received in Bombay from the sale of the oil manufactured in Haichur had to be apportioned under sub-section (3) of section 42 bet\\veen the two operations of manufacture and sale, and only such portion of the profits as was attributable to the sale in Bombay should he deemed to have accrued or arisen in British India.\n\nIt followed as a corollary that the rest of the profits attributable to the 1nanufacture at Raicbur rnust he regarded as accruing or arising in the Hyderabad State and ws therefore exempt under the proviso to s. 5 of the Act.\n\nQtae9e: \\Vhether it is in consonance with business principles or prA.ctice in the absence of any statutory requirement to that effect to cut business operations arbitrarily into two or more por .. tions and to 11pportion as between the1n the pro5Js resulting frorn one continuous process ending in a sale and \\vhether Kirk's case is applicable to assessments under the Indian Acts as laying down any general principle of apportionment.\n\nPer MAHAJAN J.-Though profits may not be realised until a manufactured article is sold, profits are not wholly made by the act of sale and do not necessarity accrue a.t the place of sale a.nd to the extent profits are attributable to the manufacturing operations, profits accrue at the place where the operations are carried on.\n\nPer :i\\fUKHERJEA J.-\\Vhere raw material is worked up into a new prorluct by process of manufacture, it obviously increases in value and this increase in value represents the income or profit which is the result of the 1nanufacture, and a.s this profit accrues by rea.son of the tnanufacture it cannot but be locn.ted at the place \\Vhere the inanufacturing process is gone through. It is im1naterial that the manufactured goods are sold later on at various places.\n\nIf tho manufacturer is himself the seller, it might be that he receives the entire profits including that of the manufacture only at the tin1e of sale; but in an inchoate shape a portion of the profits does accrue at the pln.ce of manufacture, the exact a1nount of which is only n.scertrdned after the Sale takes place.\n\nFor purposes of com pntation the two parts of the business may be conceived of e.s being carried on by two different sets of persons.\n\nAPPEAL [Civil Appeal No. LXVIII of 1949] from a Judgment of the High Court of Bombay dated 18th l\\Iarch 1948 (Chagla C.J. and Tendolkar J.) in a Reference under the Excess Profits Tax Act, 1940.\n\nJYI. C. Setalvad, Attorney-General for India, (B. Sen with him) for the appellant.\n\nICM. JY!unshi (S. K. Aiyar and N. K. Gamadia with him) for the respondents.\n\n1950. )lay 4.\n\nThe Court delivered the following Judgments:-\n\nKANIA C.J .-This is an appeal from a decision of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate Tribunal, Bombay, under section 66 ( 1) of the Indian Incometax Act.\n\nThe respondent firm, the assessees, carried on business of manufacturing and dealing in oil during the relevant accounting periods. They are a registered ' firm under the Income-tax Act and are residents in Bombay. They own three mills at Bombay and one at Raichur for manufacturing oil from groundnuts.\n\nThe oil produced at Raichur is sold partly at Raichur and partly in Bombay. Their liability to pay incometax in respect of their whole profits is not disputed under the Incom~-tax Act. The question is in respect of their liability under the Excess Profits Tax Act for the oil manufactured at Raichur, but sold in Bombay.\n\nThe assessees contend that in respect of such oil a portion of the profits earned by them is o.ttributable to theipbusiness of manufacturing oil at Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act. The taxing authorities rejected the contention of the assessees.\n\nThe Income-tax Tribunal agreed with them. On a reference the High Court disagreed with the view of the Tribunal and held that the assessees' contention was correct.\n\nThe Commissioner of Income-tax has come in appeal from that decision. In the Excess Profits Tax Act, section 2 (5) defines \"business\" as follows :-\n\n\"'Business' includes any trade, commerce or manufacture or any adventure in the nature of trade, commerce or manufacture ..... .\n\nProvided further that all businesses to which this Act applies carried on by the same person shall be treated as one business for the purposes of this Act.\"\n\nSection 5 of the Act runs as follows :- \"5. This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause (i) or sub-clause (ii) of clause (b) of sub-section ( 1) of section 4 of the Indian Income-tax Act, 1922, or of clause (c) of that subsection: Provided that this Act shall not apply to any business the whole of the profits of which accrue or\n\nCo1n1nissioncf' of Inconie-tax 1\n\nBombay\n\nAll11iedbhai V111arbliai & Co.\n\n:cania C. J.\n\n]950\n\nCo111111 issio1£cr of lncotne-tax,\n\nBo111bay , ..\n\nAltuzedbl1ai Umarb/iai & Co.\n\nl(ania CJ.\n\narise without British India where such business is carried on by or on behalf of a person who is resident but not ordinarily resident in British India unless the business is controlled in India : Provided further that where the profits of a part only of a business carried on by a person who is not resident in British India or not ordinarily so resident , accrue or arise in British India or are deemed under the Indian Income-tax Act, 1922, so to accrue or arise, then except where the business being the business of a person who is resident but not ordinarily resident in British India is controlled in India, this Act shall apply on! y to such part of the business, and such part shall for all the purposes of this Act be deemed to be a separate business : Provided further that this Act shall not apply to any business the whole of the profits of which accrue or arise in an Indian State ; and where the profits of a part of a business accrue or arise in an Indian State, such part shall, for the purposes of this provision, be deemed to be a separate business the whole of the profits of which accrue or arise in an Indian State, and the other part of the business shall for all the purposes of this Act, be deemed to be a separate. business.\"\n\nSection 21 of the Act, which was not referred to in the course of the arguments before us, runs as follows:-\n\n\" 21. The provisions of sections 4-A, 4-B, 10, 13, 24-B, 29, 36 to 44-C (inclusive), 45 to 48 (inclusive), 49-E, 49-F, 50, 54, 61 to 63 (inclusive), 65 to 67-A\n\n(inclusive) of the Indian Income-tax Act, 1922, shall apply with such modifications, if any, as may be prescribed as if the said provisions were provisions of this Act and referred to excess profits tax instead of to income-tax, and every officer exercising powers under the said provisions in regard to income-tax may exercise the like powers under this Act in regard to excess profits tax in respect of cases assigned to him under sub.section (3) of section 3 as he exercises in relation to income-tax under the said Act : Provided that references in the said provisions to the assessee shall be construed as references to a person to whose business this Act applies.\"\n\nThe relevant portion of section 42 of the Indian Income-tax Act is in these terms :-\n\n\" 42. (1) All income, profits or gains accruing or arising, whether directly or indirectly, through or from any business connection in - British India, or through or from any property in British India, or through or from any asset or source of income in British India, or through or from any money lent at interest and brought into British India in cash or in kind, shall be deemed to be income accruing or arising within British India, and where the person entitled to the income, profits or gains is not resident in British India, shall be chargeable to income-tax either in his name or in the name of his agent ....\n\n(2) Where a person not resident or not ordinarily resident in British India, carries on business with a person resident in British India, and it appears to the Income-tax Officer that owing to the close connection between such persons the course of business is so arranged that the business done by the resident person with the person not resident or not ordinarily resident produces to , fhe resident either no profits or less than the ordinary profits which might be expected to arise in that business, the profits derived therefrom or which may reasonably be deemed to have been derived therefrom, shall be chargeable to income-tax in the name of the resident _.Jerson who shall be deemed to be, , for all the purposes of this Act, the assessee in respect of such income-tax.\n\n(3) In the case of a business of which _all the operations are not carried out in British India, the profits and gains of the business deemed under this section to accrue or arise in British India shall.be only such profits and gains as are reasonably attributable to that part of the operations carried out in British India.\"\n\nOn behalf of the appellant it - was contended that in order to _ get exemption from the\n\nExce::s Profits Tax -Act the assessee has to show that his case is covered by section 5 proviso 3.\n\nIt \\vas argued on behalf of the appellant that in the\n\nCo111111issio11cr of /11co111c-tax,\n\nBo111l1ay\n\nAl1111cdblitri Untarb/Jai [ .. Ca.\n\nff ania C. J.\n\nCo11iu1issioner .of lnco111c-f11x,\n\nBo111!1ay\n\nAh1111dl1hai {/11tafbl1ai & Co.\n\n]{ a1tia C. J.\n\npresent case the business of the assessee consisted of manufacturing and selling oil and unless each of those operations took place at Raichur, \"a part of the business\" of the assessee was not at Raichur in the Hyderabad State and therefore he was not entitled to the exemption claimed by him. It was secondly contended that even assuming that this was not correct the profits of that part of the business, which was carried on at Raichur, did not accrue or arise in the Hyderabad State because the profits arose on the sale of the oil in Bombay and therefore the assessee's contention was incorrect.\n\nProviso 3 to section 5 of the Excess Profits Tax Act requires the assessee to fulfil three conditions to secure the exemption. They are (I) there should be a part of a business ; (2) that must be in an Indian State ; and (3) profits in respect of which exemption is claimed must accrue or arise .from that part of the business. The appellant's contention is that the part of the business must be a complete unit or as described on his behalf a complete cross-section of the business.\n\nIt is argued that inasmuch as the sale of the oil in question took place in Bombay the cross-section composed of manufacture and sale did not take place at Raichur in the Hyderabad State and therefore the as sessee's contention must fail. In my opinion this conten~ tion is unsound. The definition of business in the Excess Profits Tax Act clearly envisages manufacture as a business by itself. It is not necessary that a manufacturer must be a trader in the commodity he manufac- tures. Similarly because he is a manufacturer and a trader it does not follow that the two activities necessarily become one indissoluble business of which the profits c:rnnot be separately ascertained. Because a man is a mannfacturer, a trader and even an exporter it is not correct to say that unless all the three activities take place in an Indian State he is not entitled to the benefit of the proviso because a part of his busi- ·\n\nness is not in the Indian State. The argument of the appellant is that there should not be only a separate composite unit of the assessee's business in an Indian State but that each operation making up the assessee's business must take place in an Indian State. I find no\n\njustification for putting such construction on proviso 3 to section 5.\n\nNo authority is cited to support such interpretation of the proviso. It is not contended in the present case that the activities of the assessee as a manufacturer are so spread out as to beincapable of being ascertained as one unit of business in an Indian State. For instance, difficulties may arise if a manufacturer buys groundnuts in one place, has a crushing mill in another place, has a refinery in the third place and packing etc. in a fourth place. .Jt is not disputed here that the assessee's activities as a manufacturer are all in Raichur and ; f so, that set of activities under the definition of \" business \" in the Excess Profits Tax Act is a complete unit. I have no doubt that on the facts of the present case the manufacturing operations of the assessee are \"a part of his business in an Indian State.'.' Those conditions of the proviso are therefore fulfilled.\n\nOn behalf of the appellant it was pointed out that under section 42 (3) of the Indian Income-tax Act the legislature had made a provision for allocation of profits in respect of different operations of a business, but there was no such corresponding provision in the Excess Profits Tax Act. This contention overlooks section 21 of the Excess Profits Tax Act which expressly makes, amongst others, section 42 (3) a part of the Excess Profits Tax Act for assessing the profits of an assessee. If, therefore, profits can be allocated to the manufacture of oil in Raichur it seems to me clear that the manufacturing activity will be a part of the assessee's business in an Indian State.\n\nThe next contention of the appellant was that even if a part of the business was in an Indian State the profits accrued or arose only on the sale of the oil in Bombay and no part of the profits of manufacture therefore arose in an Indian State. In my opinion this argument is also unsound. On the sale of goods the assessee receives money. While the receipt of the price is thus in B01µbay it is an entirely different thing to say that therefore the whole profits of the manufacture and sale arose in Bombay. This argument sverlooks the distinction between accruing or arising on the one\n\nCmn111issio11er Of Income-tax;\n\nBombay\n\nAJ1medbhai Vmarbhai & Ci>.\n\nKania C.J.\n\nCo111111i.-1sioner <8f Inco11i:!-fax1\n\nBo111'1ay\n\nAh11i:•dl1hai U111arbltai & Co.\n\nJ{auia C. J.\n\nhand and receipt on the other. Again, the question of profits has to be determined not on receipt of the price of each lot sold by the assessee but the result of all the operations in connection with the manufacture and sale of oil during the accounting year. An individual transaction may result in profit but that will not make the assessce liable if the result of his accounting year's activities is a loss. It is therefore improper in a case of this kind to consider the sale of oil as the deciding factor either to ascertain profits or to determine the place of the accrual of profits.\n\nSeveral cases were cited at the.Bar dealing with a trader's business where he bought and sold goods. In my opinion those are not relevant to determine the question before us because in the present case the business is of a different nature. In The Commissioner of Taxation v. Kirk (1 ), Lord Davey distinguished Sulley v. Attorney-General (2 ) and Grai?l-ger & Son v. Gough(\") on this ground.\n\nThe place of.sale was not considered the test when the business was of manufacturing and sale.\n\nSimilarly cases which deal with the liability of the assessee under the Indian Income-tax Act because the profits were received (and not only accrued or arose) in India are also unhelpful. The Judges of the High Court strongly relied on The Commissioner of Taxation v.\n\nKirk ( ') for their conclusion in favour of the assessee.\n\nIt was a case of mining operations where the mines were in one colony and the sale of the ore in another.\n\nUnder the Taxing Act in that case, it was observed that it was wholly immaterial whether the person to be taxed resided in the colony or not. Nor was it material whether the income was received in the colony or not, if it was earned outside the colony. The Board attached no importance to the word \" derived \" which was treated as synonymous with arising or accruing. The real question was what income was arising or accruing to the assessee from the business oprations carried on by him in the colony.\n\nThis was considered a question of fact.\n\nUnder the New South Wales Act the liability to tax has to be decided on the existence of the source of the income in the particular colony and\n\n(!) (1900] A.C. 588.\n\n(2) (1860] 5 H. & N; 711.\n\n(3) (1896] A.C. 325.\n\nto that extent the liability to tax is based on a different basis. While accepting this distinction, I am how- .ever unable to accept the contention that the source of income can never be the place where the income accrues or arises. In my opinion there is nothing to prevent income accruing or arising at the place of the source.\n\nTf!e question where the income accrued has to be determined on the facts of each case. The income may accrue or arise at the place of the source or may accrue or arise elsewhere, but it does not follow that the income cannot accrue or arise at the place where the source exists. Therefore it is necessary to ascertain whether that part of the business which is capable of being treated as one separate unit in the Hyderabad State has given rise to the income or profit sought by the assessee to be exempted from taxation in the. present case. On behalf of the respondents our attention was drawn to the International Harvester Company of Canada v. The Provincial Tax Commissioner (1 ).\n\nIn that case the question was of the liability to tax of a resident outside the province of S, under the Incometax Act of S, in respect of profits arising from the sale in that province of agricultural implements which were manufactured outside the province. Under the relevant Act the tax was leviable on a person residing outside S who was carrying on business in S on the net profit or gain arising from the business of such person in S.\n\nThe Board held that although te profits were all received in S, where the goods were sold, the profits liable to taxation were only the net profits arising from the business in S and therefore the manufacturing profits should be excluded from the assessment. They referred to sections 23 and 24 of the Taxing Act, under which a non-resident person was charged to tax on an apportioned part of profit, which although it might be received outside the province of S cou1d fairly be regarded as having been partially earned inside that province. In my opinion that case substantially helps the contention of the respondents and negatives the appellant's contention. It shows that when the manufacturing portion of the activity of the assessee is in\n\n(1) [19,9) A.C. 39.\n\nCoH1111isstoner of l11co111e-tax,\n\nBombay\n\nAll 111ctlhlia i\n\nU111arMuri & Co.\n\nl\\a11ia C. ].\n\nCo1n111issioner of Inco1nc-ta:i:,\n\nBmnbay\n\nAh1n<>db/lai U11urrbhai & Co.\n\n/( auia C. J.\n\nPaz( Ali J.\n\none province and the sale is in another province, the whole profits are not necessarily considered as arising from the sale or at the place of sale although they may be treated as received on sale of the products. Secondly, it shows that profits could be apportioned between the manufacturing and trading activities, particularly when the assessee carried on the business of a manufai:turer and trader together. This decision was sought to be distinguished by the Attorney-General on the ground that sections 23 and 24 of the Taxing Act of that colony made it a completely different scheme of taxation. I do not think that is a good point of distinction, because pro\\iso 2 to section 5 of the Indian Excess Profits Tax Act, read with section 21, prescribes also a scheme in respect of a non-resident although not in the same details or with the same results under •the Indian Act.\n\nThe expression \"part of a business\" must in my opinion be read with the same meaning and implication in provisos (2) and (3) to section S of the Excess Profits Tax Act.\n\nI am also unable to accept the contention of the. Attorney-General that under our Act there is no scheme of apportionment. -That overlooks, as pointed out above, the provisions of section 21 of the Act, which incorporates by reference amongst others section 42 (3) of the Indian Income-tax Act.\n\nIn my opinion, therefore, proceeding on the footing that there can arise or accrue profits of the manufacturing activity of the assessee, profits ha Ye accrued to the assessee of a part of the business in an Indian State and they having accrued out of such business carried on in such State are exempted under the third proviso to section S of the Excess Profits Tax Act.\n\nFor these reasons, in my opinion, the conclusion of the.\n\nHigh Court is correct and the appeal is dismissed with costs.\n\nFAZL Au .J.-I agree fully with the judgment of Mahajan J.\n\n>atanjali sastri J.\n\nPATANJALI SASTRI J.-This is an appeal from a judgment of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate-\n\nTribunal, Bombay, under section 66 (1) of the Indian 1950 Income-tax Act, 1922, read with section 21 of the Co11-u1iission-er Excess Profits Tax Act, 1940. of bu:ome-t\"x, The respondent firm (hereiafter referred to as the Bombay \"assessees \") are carrying on the business of manufacv. turing ana dep.ling in oil at Raichur in the Hyderabad Ahmedbhai State and at Bombay which, during the relevant Umarbhai & Co. period, was part of what was then known as British Patanjastri J.\n\nIndia. The assessees are resident in Bombay and are registered for income-tax purposes, under section 26-A of the Income-tax Act, under the name of Ahmedbhai Umarbhai & Co., while their branch at Raichur is run under the name of Ahmed & Sons. They own three mills at Bombay and one at Raichur for manufacturing oil from groundnuts, and they sell the oil partly af\n\nRaichur and partly at Bombay. For the chargeable .accounting period commencing from 31st October, 1940, .and ending on 20th October, 1941, the assessees were assessed to excess profits tax in a sum of Rs. 1,61,807 on their business income of Rs. 6,08,761, including a sum of Rs. 2,49,615 which was said to have accrued or arisen from sales in Bombay of oil manufactured at Raichur. Part of such oil was also sold at Raichur, but the profits derived from such sales were not included in the assessment, and no question now arises in regard to such profits.\n\nFor the succeeding period commencing from 21st October,\n\n1941, and ending on 8th November, 1942, a tax of Rs- 2,55,485-1-0 computed on the same basis, was also imposed . on the assessees.\n\nThe assessees contended that a part of the profits derived from sales in British India of the oil manufactured at Raichur was attributable to the manufacturing operations at H.aichur which are an essential part of their business, and that such profits must be excluded from the assessment, under the third proviso to section 5 of the Excess Profits Tax Act, as having accrued or arisen in the Hyderabad State. The contention was rejected and the whole of the profits arising out of the sales in British India of the oil produced in Raichur were included in the assessments.\n\nAfter unsuccessful appeals to the Appellate\n\n1950 Assistant Commissioner, Bombay, the assessees carried the matter to the Income-tax Appellate Tribunal, Conunissioner of Income-tax, Bombay, but with no better result. The assessees Bomhay thereupon applied to the Tribunal requiring them to •· draw up a statement of the case and refer it to the Ahmcdbl•ai High Court at Bombay for decision of the question of U:aarbT1ai & Co. l d h ' 1 h _ aw mvolve , and t e Tnbunal according y stated t e\n\nPatanja!i sastri J. case and referred the following question: \"v\\'hether\n\non the facts stated above income accruing or arising to the assessees on sales made in British India of goods manufactured in Raichur situated outside British India has been rightly held by the Tribunal as income accruing or arising in British India and was liable to excess profits tax.\" In the letter of reference they indicated their view on the question referred by stating that the manufactured article received or brought into British India did not include any income, profits or gains, and that such profits and gains, having accrued only after the sale had taken place, accrued or arose in British India.\n\nThe reference was heard by Chagla C.J. and Tendolkar J. and they were of opinion that the question as framed by the Tribunal \" did not really bring out the controversy between the parties.\" The learned Judges, after stating the facts of the case,. framed the question thus : \" Whether on the facts stated above the profits of a part of the business of the assessees accrued or arose in an Indian State.\" The question as reframed is also open to similar criticism, for, it assumes that the manufacture of oil at Raic:hur is \" a part of the business\" of the assessees, whereas the Commissioner of Income-tax has been seriously contesting that position as the judgment under appeal itself shows.\n\nExcess profits tax is a charge on the profits arising out of a business in excess of its normal or standard profits, a business being regarded as the unit of assessment. . \" Business\" is defined in section 2 (5) of the Excess Profits Tax Act as inclucling, among other\n\nthings, \"11ianufacture,\" and a proviso to the clause\n\ns; iys that \"all businesses to which this Act applies\n\ncarried out by the same person shall be treated as one business for the purposes of this Act.\" Section 4 provides for the charge of tax in respect of any business to which the Act applies on the amount by which\n\nC01111nissio11er of Iuco111e-tax~\n\nBombay the profits during any chargeable accounting period\n\nv. exceed the standard profits. Section 5, on the true Alzmcdb/Jai U111arbhtri & Co~ interpretation of which the question for determination in this appeal turns, runs thus : Patanjali Sastri J. \"5. This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause (i) or sub-clause\n\n(ii) of clause (b) of sub-section (1) of section 4 of the Indian Income-tax Act, 1922, or of clause (c) of that sub-section: Provided that this Act shall not apply to any business the whole of the profits of which accrue or arise without British India where such business is carried on by or on behalf of a person who is resident but not ordinarily resident in British India unless the business is controlled in British India :\n\nProvided further that where the profits of a part only of a business carried on by a person who is not resident in British India or not ordinarily so resident accrue or arise in British India or are deemed under the Indian Income-tax Act, 1922, so to accrue or arise, then, except where the business, being the business of a person who is resident but not ordinarily resident in British India is controlled in India, this Act shall apply only to such part of the business, and such part shall, for all the purposes of this Act, be deemed to be a separate business : Provided further that this Act shall not apply to any business the whole of the profits of which accrue or arise in an Indian State, and where the profits of a part of business accrue or arise in an Indian State, such part shall, for the purposes of this provision, be deemed to be a separate business the whole of the profits of which accrue or arise in an Indian State, and the other part of the busilless shall, for all the purposes of this Act, be deemed to be a separate business.''\n\n1950 As the assessees are resident in British India and the profits of their business in the Hyderabad State Commiperations are not carried out in British India, the\n\n1950 profits and gains of the business deemed under this\n\nCmwui,, foncr section to accrue or arise in British India shall be only cf Incom:-tax, such profits and gains as are reasonably attributable Bom'>as to that part of the operations carried out in British v.\n\nIndia.\" ·\n\nAhm_dbluri It will be seen that these provisions, read together, Umarbhai & Co. lay down a rule of apportionment for ascertaining the\n\nPat,,,,1,-;;,.-;\"'''' J. profits of a business. art only of whose \"operations \"\n\nare earned out m Bnhsh India where such part could be n!garded as either \" a business connection in British India \" or \" a source of income in British India.\" They also provide machinery for facilitating collection of the tax from the resident agent where the person entitled to such income is a non-resident. :Now, these provisions are obviously complementary to section 5 proviso (2) of the Excess Profits Tax Act, and unless we read \" part of a business \" in that proviso as meaning one or more \" operations \" of the business referred to in sub-section (3) of section 42, the machinery provided in the latter section for collection of the tax leviable on a non-resident person by virtue of proviso\n\n(2) will not be applicable, and the scheme of charge and collection in such cases wfll be rendered incoherent. A harmonious interpretation of the scheme requires that the words \" part of a business \" in proviso (2) must be taken to signify one or more of the operations of the business, and, if so, the same expression used in proviso (3), with which we are here concerned, must also have the same connotation. It follows that the manufacture of oil in the mill at Raichur is a part of the assessees' business.\n\nThe question next arises whether the profits derived from such manufacture, other than those arising from sales at Raichur which are not now in question, accrued or arose in Raichur, so as to bring the case within proviso (3). It is clear that the oil manufactured at Raichur cannot itself be regarded as income, profits or gains within the meaning of the • Indian Income-tax Act or the Excess Profits Tax Act any more th<:1n the green coffee in Mathias' case (1) which the Privy Council held could not be so regarded.\n\nIll l.l .R. (1939] Mad.178.\n\nThe oil is manufactured for purposes of sale in order 1950 that profits may be earned, and such profits are realised Commis.,,. 011,., only when the commodity is sold and not before. But, of Income-tax, as the test of non-liability under proviso (3) is the ac- Bombay cruing or the arising of the profits in an Indian State, v. the question is whether the profits, when they do arise Alimet11~1,'.'; from the sales at Bombay of the product of the mill at Umar/Jhm t, Co.\n\nRaichur, arose in whole or in part a.t Raichur? Asp tan 7astri J pointed out by the Privy Council in Chunilal lvfehta's a ia'. . . case(1 ), the words \"profits accruing or arising in\" {a country) require a place to be assigned as that at which the trading operations come, whether gradually or suddenly, into existence, and they involve a notion difficult to apply; to particular transactions. The words \"ac .. crue or arise,\" too, have been variously interpreted, and no conclusive or clear test of when or where income can be said to accrue has been formulatetl in the decided cases. The learned Judges in the Court below solved the problem by invoking what they conceived to be the general principle underlying the decision in Kirk's case ( 2 ), namely, the principle of apportioning profits r' as between the different processes employed in producing those profits and the different places where they are employed. The learned Judges disagreed with the view of the Calcutta High Court in Re Mohanpura Tea Co. (s) that the profits accrue or arise only when the goods are sold and at the place where they are sold, and that the decision in Kirk's case ( 2 ) laid down no principle of general application but proceeded on the language of an Australian statute. The question in Kirk's .\n\ncase(~) related to the assessment of the profits of a mining company which extracted ore and converted it into a merchantable product in one colony and sold it in another. Under1:he relevant statute, tax was leviable in respect, of income \"arising or accruing from any ..................... trade ........................ carried on\" in the colony or \" derived from lands,\" or \"arising or accruing from any kind of property ................... or from any other source whatsoever,\" in the colo11y, but no tax was payable in respect of income \"earned\" outside the\n\n(1) I.L.H.. (1938) Born. 752.\n\n(2) [I £00] A.C. 588. (3) [1937) I.L.R. 2 Cal. 201.\n\n1950 colony. The Board held that the profits, having been\n\nCommissfoncr produced by the combined operations of extraction, of Income-tax, manufacture and sale, were assessable to tax in the Bombay colony either as derived from land by reason of the v. extraction or as \"arising or accruing, \" if not from a\n\nA11111cdbliai \"trade, \" certainly from a \"source, \" by reason of L'111arbhai & Co, _ the manufacture in the colony, and were therefore Patanjali s\"stri J. \" earned \" in the colony, though the profits were received outside the colony.\n\nWhile it may well be a \"fallacy,\" while in applying a taxing 'statute which directs attention to the situation of the source of income as the test of chargeability, to ignore the initial stages in the production of the income and fasten attention on the last stage when it is realised in money, it may be open to question whether it is in consonance with business principles or practice, in the absence of any statutory requirement to that effect, to cut business operations arbitrarily into two or more portions and to apportion, as between them, the profits resulting from one continuous process ending in a sale. It appears, however, unnecessary, in the present case, to consider the applicability of the decision in Kirk's case ( 1) to assessments arising under the Indian Act which makes the place at. which the profits accrue or arise the test of liability Oi' non-liability, as the case may be, as I am of opinion that section 42 of the Income-tax Act which, as. already stated, has been incorporated in the Excess Profits Tax Act, is applicable here and sanctions such apportionment.\n\nIt is noteworthy that the first part of sub-section\n\n(1) of section 42 providing that certain classes of income arP, to be deemed to accrue or arise in British India is not confined in its application to non-residents, but is in general terms so as to be applicable to both residents and non-residents.\n\nBefore its amendment in 1939 the sub-section began with the words \"in the case of any person residing out of British India\" which obviously restricted the application of the provision to non-resident persons, but in its amended form the subsection has been recast into two distinct parts, the first of which is not so restricted, and the second part\n\n(1) (1900] A.C. 588.\n\nalone, which begins with the words -'and where the 1950 person entitled to the income, profits and gains is not Commission., resident in British India,\" is made applicable to of bzcome-ta.r, non-resident persons, thereby showing that the former Bombay part applies to both residents and'non-residents. The v. -Opening words of the first proviso also point to the Alwzedbhai 1 ' f h d ld b 1 U111arbll11i & Co. same cone us10n, or t ese wor s wou e surp usage __ _ if the sub-section as a whole applied only to non-resi- Patanjali sastri J. dents. A contrary view has, no doubt, been expressed by a Division Bench of the Bombay High Court in Commissioner of Income-tax v.\n\nWetern India Life Insurance Co. Ltd. ( t). Though reference was made in that <.:ase to the alteration in the structure of sub-section (1) its significance, as it seems to me, was not properly appreciated. The facts that the marginal note to the whole section refers to \"non-residents\" and that the section itself finds a place in Chapter V headed \"Liability in Special Cases\" were relied upon as supporting the view that sub-section { 1) as a whole applies only to non-residents. As pointed out by the Privy Council in Ba/raj Kunwar v. Jagatpal Singh( 2 ), marginal notes in an Indian statute, as in an Act of Parliament, cannot be referred to for the purpose of construing the statute, and it may be mentioned in this connection that the marginal note relied on has since been replaced by the words \" Income deemed to accrue or arise within British India,\" which makes it clear that the main object of sub-section (1) wa5 to define that expression [see section 12 (a) of Act XXII of 1947].\n\nNor can the title of a chapter be legitimately used to restrict the plain terms o( an enactment. I am therefore of opinion that the first part of sub-section (1) is applicable to the assessees, the expressions \" business connection in British India\" and \" asset or source of income in British India \" being wide enough to cover their selling organisation at Bombay. The result is that the profits received at Born bay from the sale of the oil manufactured at Raichur have to be apportioned under sub-sect ion ( 3) between the two operations of manufactnre and sale, and only such portion of the profits as is reasonably attributable to the sale should\n\n{I) [1945] 13 J.T.R. 405.\n\n(2) LL.R. Z6 All. 393 at ~06.\n\n1950 be deemed to accrue or arise in British India. It must follow, as a corollary, that the rest of the profits, Co1111nissi01wr attributable to the manufacture at Raichur, must be of /nco111e4ax, n0 ,,,1..,). regarded as accruing or arising in the H yd era bad\n\nState. Therefore proviso (3) to;; ection 5 of the Excess\n\nAhmcdr.hm Profits Tax Act becomes applicable to the case and\n\nUmar/~,: r- Co. exempts the manufacturing part of the assessees'\n\nPatanjali sasfri .J. business from the operation of the Act.\n\nOn behalf of the respondent, Mr. Munshi called attention to certain observations of the Privy Council\n\nin Chunilal Mehta' s case ( 1 ) as supporting his contention that, although all the operations of a business must be completed before profit is received, the accrual of the profits begins with the first operation and continues cumulatively till the goods are finally sold, and that, therefore, the expression \"accruing or arising in\" a place must be applied distributively to the different operations and the places where such operations are carried out. The observations relied on are as follows : \"But the legislature-has chosen a different test and applied it to all kinds of profits accruing or arising in British India. It may even have chosen it as fairer because it can be applied distributively to the profits of a single source \" (p. 765), and again, \"no doubt if it can be held that under the Indian Act profit in the case of a business must be taken so strictly that it is not to be iinderstood distributively at all the profit of the assessee's business would become an ultimate and single figure irreducible and referable only to Bombay, but such a high doctrine cannot be read into the Indian statute without violence not only to its language but to its scheme:\" (p. 767). These passages may, at first sight, appear to lend some support to Mr. Munshi's thesis. But on closer examination in their context they do not, in my opinion, warrant any such general theory. Their Lordships were dealing with a case where the .assessee, resident in Bombay, derived profits from speculative contracts for purchase and sale of commodities carried out through brokers in various foreign markets such as Liverpool; London and New York.\n\nThe assessee\n\n(I' I.L.R .. [1938] Bom. 752.\n\n...\n\ncontended that he was not liable to pay Indian income-tax in respect of such profits, which were not received in British India, on the ground that they were not profits accruing or arising in British\n\nCo111111issioner of lncomefa-<.\n\nBombay India, and their Lordships upheld that contention. v.\n\nJt is with reference to such transactions which Alimcdbliai c:marbhai l; Co. individually contributed to the surplus arising in the various places abroad, that their Lordships spoke Patrmjati sastri J. of the profits accruing or arising distributively and not in a single place. That they were not thinking of the profits resulting from a single composite process such as manufacture and sale, and their disintegration and apportionment as between the different operations is shown by their further observation that\n\n\"profits are frequently, if not ordinarily, regarded as arising from many transactions each of which has a result not as if the profits need to be disintegrated with difficulty but as if they were an aggregate of the particular results:\" (p. 767).\n\nReference was also made to a recent decision of the same Tribunal in International Harvester Co. of Canada\n\nv. The Provincial Tax Commission ( 1 ) • The case arose out of the assessment of the profits of a non-resident to income-tax, under a provincial Income-tax Act in respect of the profits arising from the sale within the province of goods manufactured outside the province.\n\nThe tax was leviable, in_ the case of a non-resident person, on the \"net profit or gain arising from the business of such person in\" the province.\n\nTheir Lordships held that, although the profits sought to be assessed were all received in the province where the goods were sold, as the profits brought under charge under the Act was only the net profit arising from the business in the province, the manufacturing profits should be excluded from the assessment. Their Lordships referred to other provisions of the Act \\vhich, in the converse case, sought to charge a proportionate part of any profit derived from sale outside the province of goods produced in the province as being \"earned\" within the province, and inferred from those provisions that the intention of the legislature in the\n\n(I) (19•9) A.C. 36.\n\n1950 charging section was to bring within the ambit of tax-\n\nCou•uissioncr ation only an apportioned part of the profit.\n\nSuch a of Income-tax, construction, they thought, would \"result in a fair and n0,,,,,,, Y reasonable scheme of taxation in accordance with that\n\nv. comity which naturally prevails between one province Ahmedhlwi and another.\" Referring to Kirk's case(') their Lord- L'niarbhai & Co. h k d h 1 h h h d ___ s rps remar e \"t at at oug t e sections un er con- PMtanjali sastri J. sideration in Kirk's case ( 1 ) differed in their language from the provisions which their Lordships were considering, the reasoning which appears in the judgment in that case was helpful to the appellants' contention in the present case.\" This was, presumably, because chargeability in j:Joth cases depended not on the income accruing or arising in the country, but, on the source of the income being in the country. The decision was based on the language of the statute and the scheme of taxation disclosed thereby, and what I have said about Kirk's case( 1 ) equally applies to it.\n\nThe other cases cited by Mr. Munshi do not call for any special notice.\n\nI agree with the conclusion reached by the High Court, though on different grounds, and dismiss the appeal with costs.\n\nMahajan}.\n\nMAHAJAN J.-This is an appeal by the Commissioner of Income-tax, Bombay City, from the judgment of the High Court of Judicature at Bombay upon a case stated by the Income-tax Appellate Tribunal under the provisions of section 66 (1) of the Indian Incometax Act, 1922, and it raises a question as to the liability of the respondent, Messrs. Ahmedbhai Umarbhai & Co., for excess profits tax.\n\nExcess profits tax is levied under section 4 of the Excess Profits Tax Act, XV of 1940, \"in respect of any business to which the Act applies on the amount by which the profit during any chargeable accounting period exceeds the standard profits ........ \" The respondent is a registered firm resident in British India and owns three oil mills in Bombay and one oil mill in Raichur in Hyderabad State and the question to be decided in the appeal is whether the profits which were received or realized by the respondent on the sale of\n\n(!) [19CO] A.C. 588.\n\noil manufactured in Raichur and sold in British India are liable to excess profits tax.\n\nBy an order dated 27th March, 1944, the. Excess Profits Tax Officer, Circle III, Bombay, assessed the respondent to excess profits tax in the sum of Rs. 1,61,807 for the chargeable accounting period commencing from 31st October, 1940 and ending on 20th October, 1941 on the business income of Rs. 6,08,761, which included a sum of Rs. 2,49,615, being profits accruing or arising in British India in respect of the respondent's branch at Raichur in Hyderabad State and run in the name of Messrs. Ahmed & Sons. By another order dated 28th March, 1944 the ame officer assessed the firm to excess profits tax in a sum of Rs. 2,55,485-1-0 for the chargeable accounting period commencing from 21st October, 1941 and ending on 8th November, 1942 on the business income of Rs. 7,46,561, which included a sum of Rs. 2,34,785, being the profits accruing or arising in British India in respect of the Raichur branch. Both the assessment orders were appealed against to the Appellate Assistant Commissioner but without any success. The Incometax Appellate Tribunal on appeal drew up a statement of case and referred the following question of law to the High Court :-\n\n\"Whether on the facts as stated above income accruing or arising to the assessee on sales made in British India of goods manufactured in Raichur situated outside British India has been rightly held by the Tribunal as income accruing and arising in British India and was liable to excess profits tax? \"\n\nThe High Court re-framed the question as follows:-\n\n\"Whether on the facts as stated above profits of a part of the business of the assessee accrued or arose in an Indian State \"\n\nand answered it in the affirmative. It held that the activity which the respondent carried on at Raichur was a part of its business within the meaning of the third proviso to section 5 of the Excess Profits Tax Act and that the profits of a part of the business accrued or arose in an Indian State and that\n\nCotn111.issipnc I' of Income-tax,\n\nBombay\n\nAlimrdhhai Umarbliai &- Co_\n\nlifaliajan J.\n\nJ 950\n\nCn111111issioncr\n\n()/ b~CIJ/llC-tax,\n\nBo111'1a y v.\n\nAl11u:dhl1ai U111arbliai {;. Cv.\n\nJl111t11fa11 J.\n\nthe said profits were not assessable to excess profits tax.\n\nThis order of the High Court is being contested in the present appeal and it has been urged that as regards the oil manufactured in Raichur but sold in British India, no profits accrued or arose in the Indian State, but the profits accrued or arose in British India and are subject to excess profits tax. It was further contended that the construction put by the High Court on the third proviso to section 5 and on the phrase\n\n\" part of a business \" is erroneous and is not justified on the language of the proviso and the context. It was suggested that in order to constitute \"a part of the\n\nbusiness\" within the meaning of that proviso it must be a complete cross-section of the whole business and not merely one or more of the operations of that business.\n\nSection 5 of the Act on the true construction of which depends the decision of the appeal is in these terms:- \" This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause (i) or sub-clause\n\n(ii) of clause (b) of sub-section (1) of section 4 of the Indian Income-tax Act, 1922, or of clause (c) of that sub-section.\"\n\nIn other words, the Act brings within its ambit all income in the case of a person resident in British India which accrues or arises or which is deemed to accrue or arise to him in British India during the accounting year, as also all income which accrues or arises to him without British India during such year ; and if such person is not resident in British India during that year, then all income which accrues or arises or is deemed to accrue or arise in British India during such year. If section 5 of the Act stopped short at that stage, it is undoubted that in the case of the respondent who is a resident in British India all his income, no matter where it arose, within British India or without British India, would be chargeable to excess profits tax just in the same way as it is chargeable to income-tax under the Indian Income-tax Act. The whole of his income arising\n\nin Raichur has legitimately beentaxed under t.hat Act.\n\nSection 5 however has three provisos which limit\n\nCo11unissioner its scope and take certain incomes outside its ambit. of focome-tax, The first proviso is to the following effect : Bombay \"Provided that this Act shall not apply to any v. business the whole of the profits of which accrue or Ahmedbhai arise without British India where such business is car- Umarbhai & Co. ried on by or on behalf of a person who is resident but Mahajan}. no.t ordinarily resident in _British India unless the business.is controlled in British India.\"\n\nThis exception has no bearing to the facts of the present case. The second proviso is in these t, erms :-\n\n\"Provided further that where the profits of a part , only of a business carried on by a person who is not resident in British India or. not ordinarily so resident accrue or aristl in British India or are deemed under -the Indian Income-tax Act; 1922, so to accrue or arise, then, except where the business being the business of a person who is resident but not ordinarily resident in British India is controlled in India, this Act shall apply only to such part of the business, and such part shall for all the purposes of this Act be deemed to be a separate business.\" This proviso also concerns a person nof resident in British India and does not touch the present case .. It however furnishes a clue to the meaning of the following proviso inasmuch as it attracts the application of section 42 of the Indian Income-tax Act to the case of a non-resident and contemplates the. apportionment of income between part of a business _ controlled in British India and a part not so controlled.\n\nSub-section (3) of section 42 of the Income-tax Act enacts thus:\n\n\" In the case of a business of which all the operations are not carried out in British India,. the profits and gains of the business deemed under this section to accrue or arise in British. India shall be only such profits and gains as are reasonably attributable to that part of the operations carried out in British India.\"\n\n Under the second proviso by reason of the application of section 42 (3) of the Income-tax Act, if the manufacturing business of the assessee was in British\n\nCo11111iissioncr of brco11ic-tax,\n\nBouibay\n\nAlunedbhai U111arbhai & Co.\n\nf.IallajanJ,\n\nIndia and all his sales took place in Raichur, then excess profits tax could only be chargeable on such profits as would really be attributable to his manufacturing operations in British India and the manufacturing operations would be treated as part of the business of the assessee under the proviso. It is the third proviso to which the controversy in the case is limited and this proviso is in these terms :-\n\n\"Provided further that this Act shall not apply to any business the whole of the profits of which accrue or arise .in an Indian State, and where the profits of a part of business accrue or arise in an Indian State, such part shall, for the purposes of this provision, be deemed to be a separate business the whole of the profits of which accrue or arise in an Indian State, and the other part of the business shall, for all the purposes of this Act, be deemed to be a separate business.\"\n\nWe have firstly to determine the meaning of the words \"part of a business \"in this proviso; does it mean, as argued on behalf of the Commissioner, that the business must be a complete cross-section of the whole business and not merely one or more of the operations of that business, or, does it mean, as contended by the learned counsel for the respondent, a continued and severable business activity of which the profits could be apportioned or ascertained separately.\n\nSecondly, we are called upon to determine at what place do the profits accrue or arise in respect of the part of such business. Do . they arise at the place where in the case of a manufacturer his goods are sold, or can they be said to accrue or arise at the place of manufacture?\n\nThe word \"business\" has been defined by the Act in section 2 (5) as follows :-\n\n\" 'Business' includes any trade, commerce or manufacture or any adventme in the nature of trade, commerce or manufacture or any profession or vocation .... \"\n\nIt means any continued activity of a person which yields profits and which is in the nature of trade, commerce or manufacture. It may even be any adventure in the nature of trade, commerce or\n\nmanufacture. A proviso was added to this definition in the year 1940 in these terms :--\n\n\"Provided further that all businesses to which this Act applies carried on by the same person shall be treated as one business for the purposes of this Act.\"\n\nThe effect of the proviso is that if a man is carrying on a number of activities, whether of the same or of different natures, all these various businesses are treated as one.\n\nThe same person, if engaged in the manufacture of hardware, oils, textiles, motor tyres, bicycles and owning mills for his diverse activities in different places and also trading in merchandise and doing contract business, is deemed to carry on a single business. All the businesses that he carries on are. lumped together and treated as one business for the purpose of levying the tax and calculating the profits.\n\nThe proviso has made an amalgam of all the businesses of one individual and it is in view of this amalgam that proviso 3 of section 5 has to be considered.\n\nIt seems to me that what has been amalgamated by the definition has again been made separate by .the proviso to section 5. If a number of businesses carried on by a person are situate in different places, then the effect_ of the proviso is to again treat them as separate business under the description of the phrase \"part of a business.\" In other wor1:•-tax,\n\nBo111hay\n\nAli1ucdbhai U111arb/1ai l; Ca ..\n\nMalirrjau J.\n\nCouullissioucr of lncontc-tax,\n\nBo111'1ay\n\nv Ah11icd!JJ1ai Untarbltai & Co.\n\n.; faliajanJ,\n\nAct of sale is the culminating process in the earning of profits but it goes without saying that the act of sale could not be performed unless the goods were produced at Raichur and it would be wrong from a business point to say that all the profits resulted from that operation. It was the operation of manufacture at Raichur that enabled the assessee to sell oil and some portion of the profits must necessarily be attributable to the-manufacturing process.\n\nTo the extent that the profits are attributable to the manufacture of oil it is not possible to say that,-they accrue or arise at any place different from the place where the manufactured article came into existence.\n\nIt was not denied that the business of manufacture at Raichur may produce profits or it may even earn profits and it wa:s conceded that it may also be said that profits are derived from that process of manufacture but it was strenuously argued that earning of profits is not the same thing as the accrual of profits and no profits could be said to accrue or arise at a place where the profits may well have been earned or produced and that the place of accrual of profits must necessarily be the place where the sale proceeds are received or realized.\n\nOn behalf of the assessee it was urged that the words \"derived,\" \"earn,\" \"accrue\" or \"arise\" are synonymous and it is immaterial which word is used indicating the result of the activities of various business operations.\n\nThe totality of profits that accrues to a business or is earned by it may be ascribed to a number of operations; though it is .ascertained at the place where the produce is sold, it accrues where it is earned. Whether the words\n\n\"derive\" and \"produce\" are or are not synonymous with the words \"accrue\" or \"arise,\" it can be said without hesitation that the words \"accrue \" or \" arise \" though not defined in the Act are certainly synonymous and are used in the sense of \" bringing in as a natural result.\" Strictly speaking, the word \" accrue \" is not synonymous with \"arise,\" the former connoting idea of growth or accumulation and the latter of the growth or accumulation with a tangible shape so as to be receivable.\n\nThere is a distinction in the dictionary\n\nmeaning of these words, but throughout the Act they seem to denote the same idea or ideas very similar and the difference only lies in this that one is more appropriate when applied to a particular casi. In the case of a composite business, i.e., in the case of a person who is carrying on a number ofbusinesses, it is always difficult to decide as to the place of the accrual of profits and their apportionment inter se.\n\nFor instance, where a person carries on manufacture, sale, export and import, it is not possible to say that the place where the profits accrue to him is the place of safo.\n\nThe profits received relate firstly to his business as a manufacturer, secondly to his trading operations, and thirdlv to his business of import and exp::irt.\n\nProfit or foss has to be apportioned between these businesses in a businesslike manner and according to well-established principles of accountancy. In such cases it will be doing no violeJ; J.ce to the meaning of the words \" accrue \" or \" arise \" if the profits attributable to the manufacturing business are said to arise or accrue at the place where the manufacture is being done and the profits which arise by reason of the sale are said to arise at the place where the sales are made and the profits in respect of the import and export business are said to arise at the place where the business is conducted. This apportionment of profits between a number of businesses which are carried on by the same person at different places determines also the place of the accrual of profits. To hold that though a businessman has invested millions in establishing a bm.iness of manufacture, whether in the nature of a textile mill or in the nature of steel works, yet no profits are attributable to this business or can accrue or arise to the business of manufacture because the produce of his mills is sold at a different place and that it is only the act of sale by which profits accrue and they arise only at that place is to confuse the idea of receipt of inconte and realization of profits with the idea of the accrual of profits. The act of sale is the mode of realizing the profits. If the goods are sold tv a third person at the mill premises no one could have said that these profits arose merely by reason of\n\nCo1n1nissioner of Income-tax.\n\nBombay\n\nA/1mdbhai U111a, rb/zai & Co ..\n\nMahajan .f.\n\nCo1n11tissioner of lnco;1t::-t, r:c,\n\nBo11i?ay\n\nA11111::.dbhai V1narl1hai [;.\"Co.\n\ni.IahajanJ.\n\nthe sale.\n\nProfits would only be ascribed to the business of manufacture and would arise at the mill premises.\n\nMerely because the mill owner has started another business organization in the nature of a sales depot or a shop, that cannot wholly deprive the business of manufacture of its profits, though there may have to be apportionment in such a case between the bu>iness of manufacture and business of shopkeeping.\n\nIn a number of cases such apportionment is made and is also suggested by the provisions of section 42 of the Indian Income-tax Act, reference to which •has also been made in proviso (2) of section 5 of the Excess\n\nProfits Tax Act.\n\nIn Commissioners of Inland Revenue v. Maxse (1 ),\n\nfaxse purchased a monthly magazine for £ 1,500-and was the sole proprietor, editor and publisher thereof.\n\nThe earnings were derived from sales of the magazine, from advertisements and from reprints of articles mostly written by him. Before thi> war Maxse wrote a large part of each number, and, though some of the matter was contributed by others, the sales were largely due to the popularity of his own writings.\n\nWhen war broke out, he increased his personal contributions and did most of the wr'iting. At that time he required practically no capital.\n\nHaving been assessed to excess profits duty for the year ending May 31, 1915, he appealed to the General Income Tax Commissioners and contended that the profits were earned by reason of his personal qualifications, that the capital expenditure was small in comparison with the personal qualifications required to earn the profits, and that he was exempt from duty by virtue of para.\n\n(c) of section 39 of the Finance (No. 2) Act, 1915.\n\nTh~ General Commissioners having discharged the assessment, their decision was reversed by Sankey J. who held that Maxse was carrying on a commercial business and not a profession within para. ( c) and therefore he was liable to duty. The Coart of appeal held that Maxse was carrying on the profession of a journalist, author or man of letters, and also the business of publishing his own periodical. The publishing\n\n(1) [1919] 1 K.B. 6,7.\n\nbusiness should be debited with a fair and reasonable allowance in respect of Maxse's contributions, and .a proper sum for his remuneration as editor, and on that footing he would be liable to duty in respect of his business but exempt therefrom in respect of his profession.\n\nThis is a case of a combination of a profession with a business. .Under the law no excess profits duty could be levied on his professional income but his business income was liable to such duty and. the duty was so levied by making the apportionment. The rule laid down in this tase, though it has special reference to the scheme of the English statute, can appositely be laid down for the apportionment of profits qua parts of a business of an ssessee.\n\nA similar view was expressed by a Bench of the Calcutta High Court in Killing Valley Tea Cotttpany v. The Secretary of State for India( 1 ).\n\nThere the question arose whether the income from a tea garden where tea was grown and made ready for the market by mechanical process, was assessable. It was held that the income was to be apportioned and so much of it as was obtained by 'the manufacturing process was assessable. The principle of Maxse' s case and of other English cases was applied to the facts of that particular case. In cases where a person is (4rrying on composite businesses which for purposes of section 5 are regarded as one business and for purposes of the proviso as several parts of a business, it may be said that there are two stages in the production. of the net profit, ( 1) the manufacture of the article, and (2) the sale of the article and that part of the net profit should be attributed to each stage, the part. attributed to the earlier stage being described as a manufacturing profit. Reference in this connection may be made to the case of International Harvester Co. of Canada Ltd. v. Provincial TfJ, x Commission (2 ). In that case it was argiled that when money was received by the appellant in Saskatchewan as a result of a sale in Saskatchewan the whole of the net profit on the sale arose from the business of the appellant in Saskatchewan; and no apportionment was necessary:. This contention\n\n(1) I.L.R. •s Ca!.161.\n\n(2) A.I.R. 19•9 P.O. 72.\n\nConituissfotter of Income-tux,\n\nBombay\n\nAhmedbhai Umarbhai Ii- Co.\n\nMa/iajanJ,'\n\nCo1n11iissioner of f11co111e-tax,\n\nHo1nbay v.\n\nAhnt('dbliai U11tarbhai & Co,\n\nAfahajan J.\n\nwas described by their Lordships as fallacious and untenable.\n\nTheir Lordships quoted with approval the following observations from the minority judgment of Sir Lyman Duff C. J.\n\nThe quotation is in these terms:-\n\n\"Nowhere does the statute authorise the Province of Saskatchewan to tax' a manufacturing company, situated as the appellant company is, in respect of the whole of the profits received by the company in Saskatchewan. It is not the profits received in Saskatchewan that are taxable, it is the profits arising from its business in Saskatchewan not the profits arising from the company's manufacturing business in Ontario and from the company's operations in Saskatchewan taken together, but the profits arising from the company's operations in Saskatchewan.\" The question in the present case in whether in respect of the manufacturing business of the assessee in Raichur profits accure or arise a.nd if so, at what place.\n\nMy answer unhesitatingly is that the manufacturin~ profits arise at the place of manufacture.\n\nThey could arise nowhere els~. The sale profits arise at the , place of sale and apport10nment has to be made between the two, though the place of receiptg and realization of the profits is the place where the sales are made. The manufacturing profits could not be said to have accrued or arisen at that place because there was nothing done from which they could accrue or arise as natural accrual or as an increase. The increase only took place at the place of manufacture and if there was any accrual over the production cost, that accrual was at the place of the production itself.\n\nMr. Seta:lvad for the Commissioner placed reliance on a number of cases, inter alia, The Board of Revenue\n\nv. The Madras Export Company('), ]iwan Das v.\n\nIncome-tax Commissioner, Lahore(~). In re Port Said Salt Association Limited (3 ), and Sudalaimani Nadar\n\nv. Income-tax Commissioner (4 ).\n\nAll these cases fall in one category: These are cases where-raw materials\n\n(l) I.L.R. 46 Mad. 36~. (3i I.LR. 59 Cal. 12~6.\n\n(21I.L.R.10 Lah. 657. (<)A.LR. 19U Mad. 229.\n\nwere purchased at one place and sold at another and it was held that in such cases it was.the act of sale from which the profits accrued or arose. In most of these\n\nses the goods as purchased were sold without going through any manufacturing process. It was observed that mere act of purchase produces no profit. This proposition has been doubted in a later case. But it is unnecessary to go into this matter. In the case of a trading business, like purchase and sale, it may be said that the business of a person is one operation and the nature and character of the business is such that the profits arise at the place of sale and that in such a case it is not possible to ascribe any profits to the act of purchase and it is still more difficult to apportion them. These cases are no guide for the decision of cases of manufacturing business or business of a like nature. Observations made in these cases must be limited to the facts of each particular case. A number of cases were cited for the proposition that under the Indian Act. it is not the place where a person carries on business (as it is under the English law) whe're necessarily profits can be said to arise, because the Indian Act takes notice only of the place of accrual of profits and not of the place where the business is carried on or where the source which produces profit is situate. The matter was discussed by their Lordships of the Privy Council in C ommissioner of Income-tax, Bombay v. Chitnilal B. Mehta ( 1 ).\n\nThe assessee in that case was carrying on buying and selling operations in commodities in various foreign markets. No delivery was ever given or taken and the profits of such forward contracts were not received in fact in British India, and it was held that the contracts having been neither ftamed nor carried out in British India, the profits derived from the contracts did not accrue or arise in British India within the meaning of section 4, sub-section (1) of the Indian Income-tax Act, 1922. The contention raised in that case on behalf of the Commissioner was that these profits resulted from the exercise of skill and judgment in Bombay by the assessee and by the giving of directions\n\n(1) 65 I.A. 33f.\n\nCo1111nissionf.!r of Jnconic-tax.\n\nB01uba y v.\n\nAlunedb!tai U11zarbhai & Co.\n\nMa/zaja11 ].\n\nCoi11111issioncr of /11co111c-fax,\n\n1Jo111bay\n\nv. Al11ncdbliai l.h:za1bl1ai & Co.\n\nt\\lahaja11 J.\n\nfrom Bombay. This contention was negatived and it was observed that to determine the place at which such a profit arises not by reference to the transactions, or to any feature of the transactions, but by reference to a place in India at which the instructions therefor were determined on and cabled to New York is, in their Lordships' view, to proceed in a manner which cannot be supported if the transactions are to be looked at separately and the profits of each transaction considered by themselves. It was said that there is a distinct paradox in the contention that the profits resulting from an order placed in New York would have accrued or arisen in the same place (Bombay) had the order been sent to Liverpool with a like result, but that had the assessee decided on and directed the same New York transaction when in Hyderabad the same profits would have arisen in a different place (Hyderabad). It may be observed that the business of the forward contracts was not being conducted in Bombay at all in this case.\n\nThe whole argument was . based on the ground that the assessee, a big business magnate, was directing and controlling that business.\n\nSuch direction and control could hardly be said to be the place of the accrual of profits on the transactions done elsewhere. It was next argued in that case that these foreign transactions were part of the profits of the Bombay business carried on by the assessee and all the profits of the business must be computed as a whole.\n\nTheir Lordships negatived this contention and observed as follows :-\n\n\"But the legislature has chosen a different test, and applied it to all kinds of profits-' accruing or arising in British India.' It may even have chosen it as fairer because it could be applied distributively to the profits of a single source.\n\nHowever that may be, the profits of each particular business are to be computed wherever and by whomsoever the business . is carried on, but only on condition that they arc profits ' accrning or arising or received in British India,' etc.\n\nWhat connection exists, if any, between place of direction and place at which the profits arise is a matter not touched by sections 4, 6 or 10.\n\nNot only\n\ndo they lay no stress upon the place at which the business is carried on, they make no mention of it. In these circumstances it cannot be held that it is itself the test of chargeability by virtue of a rule, not men.\n\ntion(!d either, that profits arise or accrue at the place where the business is carried on.\"\n\nLater in the same judgment it was observed that there seemed to be no necessity arising out of the general conception of a business as an organization that profits should arise only at one place, that profits are frequently, if not ordinarily, regarded as arising from many transactions, each of which have a resultnot as if the profits need to be disintegrated with difficulty, but as if they were an aggregate of the particular results. It was said that the assessment order had discriminated between the Bombay and the foreign business income and that to discriminate between all kinds of profits according to the place at which they accrue or arise was a plain dictate of the statute, other discrimination was involved in the exemptions, and in such sections as section 42. In the concluding part of the judgment their Lordships said as follows :-\n\n\" These considerations lead their Lordships to the conclusion that under the Indian Act a person resident . in British India, carrying on business there and controlling transactions abroad in the course of such business, is not by these mere facts liable to tax on the profits of such transactions. If such profits have not been received in or brought into British India, it becomes, or may become necessary to consider on the facts of the case where they accrued or arose.\n\nTheir Lordships are not laying down any rule of general application to all classes of foreign transactions, or even with respect to the sale of goods. To do so would be nearly impossible, and wholly unwise. They are not saying that the place of formation of the contract prevails against everything else.\n\nIn some circumstances it may be so, but other matters-acts done under the contract, for example-cannot be ruled out a priori.\n\nIn the case before the Board the contracts were\n\nCo1111nissio1ter of luc:onie-tax.\n\nBo111fJay\n\nAl1111cdbl1ai\n\nfahnjan j.\n\nCo111111issio11cr of lnco11ic-tax, Bo11i!Jay\n\nAhn1cdhhai V1narbha i & Co.\n\nMaliajan J.\n\nneither framed nor carried out in British India, the High Court's conclusion that the profits accrued or arose outside British India is well founded.\"\n\nIn my view this decision does not make us any the wiser for the decision of the present case. It is true that the Indian Act does not lay down that profits necessarily arise or accrue at the place where the business is carried on or that they necessarily arise at the place where the source which produces the profit is situate but at the same time the Act does not lay down that the profits nec<:ssarily accrue or arise at the place where only one operation, namely of sale is performed. Place of accrual of profits cannot necessarily be determined on the test of receivability.\n\nIn certain cases the place of origin of the profits may be the determining factor while in others the test of receivability may have application. Profits of a trade or business are what is gained by the business.\n\nThe term implies a comparison between the state of business at two specific dates separated by an interval of an year and the fundamental meaning is the amount of gain made by the business during the year and can only be ascertained by a comparison of the assets of the business at the two dates, the increase shown at a later date compared to the earlier date represents the profits of the business. In this concept of the term the place of business or the source from which they originate would in the case of certain businesses .be the place where they can he said to accrue or arise. In this situation t_he profits realized at sale have to be apportioned between the different business operations which have produced them and those apportioned to the part of business of manufacture at Raichur can only be said to arise at the place of manufacture as no other activity has produced those profits. No other place can be suggested where this increase can be said to have arisen. In the view that I have taken it is unnecessary to refer to all the cases that were cited at the Bar, for most of these cases concerned the interpretation of the various sections of the Indian Income-tax Act and none of them concerned the interpretation ploiced on the Act with which we are concerned.\n\nThe result therefore is that in my opinion the High Court was right in answering the question. in favour of the assessee and no grounds exist for reversing that decision in appeal, which is therefore dismissed with costs.\n\nMUKHERJEA J.-I agree that this appeal should be dismissed and I would indicate briefly the reasons which have weighed with me in affirming the judgment of the High Court.\n\nThe question which was referred by the Incornetax Commissioner, Bombay, to the High Court under the provision of section 66 (1) of the Indian Incometax Act, 1922 and which. the latter reframed for the purpose of bringing out clearly the real controversy between the parties, turns upon the applicability of the third proviso to section 5 of the Excess Profits Tax Act (Act XV of 1940) to the facts of the present case.\n\nThe facts are not in controversy and may be shortly stated as follows :\n\nThe respondents assessees are a firm, resident in British India. and they are registered for income-tax purposes under section 26A of the Income-tax Act.\n\nTheir business consists in manufacturing and selling groundnut oil and they have three mills in Bombay and one at Raichur in the Hyderabad State where oil is manufactured. During the chareable accounting period, the oil that was manufactured at Raichur was sold partly in Raichur itself and partly in Bombay, and what the Income-tax Officer did was to ascertain the income arising to the assessees out of the Raichur business and apportion the same on the basis of sales made in Raichur and Bombay respectively. The profits arising out of sales made in Bombay were held by the Income-tax Officer to be assessable both to income-tax and excess profits tax. There is no doubt as to the propriety of his decision so far as income-tax is concerned. The only question that is 'raised relates to the liability of the firm to pay excess profits tax in respect of income arising out of the sales made in Bombay of the oil manufactured at Raichur. The contention put forward\n\n' 1950\n\nCo1n1nissio1ter of Inco11u?-tax.\n\nBombay\n\nAhmcdhhai Umarbhai & C<>,\n\nCon1111issioner of lnco11w-tc1x,\n\nBo111bay\n\nAl111tcdbl1ai Vnzarb/Jai & Co,\n\nMuklierjca J.\n\nby the assessees is that although the oil was sold in Bombay, it was manufactured at Raichur and a portion of the profits ultimately made must be allotted to the manufacturing process that was carried on at Raichur.\n\nThe manufacture of the oil, therefore, must be regarded as a part of the business and as the profits of this part accrued at Raichur, it has to be treated as a separate business for purposes of excess profits tax under the third proviso to section 5 of the Excess Profits Tax Act. The High Court answered this question in favour of the assessees and the Commissioner of Income-tax, Bombay, has come up on appeal to this Court.\n\nWith a view to appreciate the contentions that have been raised by the learned counsel on both sides, it will be convenient, first of all, to advert to the provisions of the Excess Profits Tax Act which have a bearing on the point. Section 2, sub-section (5), of the Act defines \"business\" as including any trade, commerce or manufacture or any adventure in the nature of trade, commerce or manufacture or any profession or vocation but does not include a profession carried on by an individual or by individuals in partnership if the profits of the profession depend wholly or mainly on his or their _personal qualifications ......... One of the provisos attacl!ed to this definition provides that all businesses to which this Act applies carried on by the same person shall be treated as one business for the purposes of this Act. Section 4 is the charging section and under it any business to which this Act applies is subject , to payment of excess profits tax in the manner and to the extent indicated in the section.\n\nSection 5 lays down to what businesses the Act will apply.\n\n\" This Act shall apply \" so runs the section, \" to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause\n\n(i) or sub-clause (ii) of clause (b) of sub-section (1) of section 4 of the Indian Income-tax Act, 1922, or of clause (c) of that sub-section.\" There are three provisos attached to this section ;\n\nwe are concerned fot our present purposes with the third proviso which is worded as follows :\n\n\" Provided further that this Act shall not apply to any business the whole of the profits of which accrue or arise in an Indian State, and where the profits of a part of a business accrue or arise in an Indian State, such part shall, for the purposes of this provision, be deemed to be a separate business the whole of the profits of which accrue or arise in an Indian State, and the other part of the business shall, for all the purpoes of this Act, be deemed to be a separate business.\"\n\nThe point for consideration is whether on the facts of this case which have been stated above, this third proviso to section 5 can be invoked by the assessees and it is open to them to claim that the work of manufacture of groundnut oil carried on by them at Raichur should be treated as a separate business within the meaning of this proviso. To succeed in their claim, it is incumbent upon the assessees to show that there was in fact a part of a business in the present case and that profit accrued or arose to this part in an Indian State. If both these elements are found to exist then and then only the part of the business could be treated as a separate business for purposes of the Act.\n\nIt is contended by the assessees that though they carry on the business of manufacturing and selling oil, the process of manufacture apart from the sale is itself a business and can be treated as a separate part of the trade that the assessees are carrying on. As the profits of this part arose or accrued at Raichur, both the conditions of the proviso are fulfilled in the present case.\n\nThe learned Attorney-General appearing for the Commissioner of Income-tax has, on the other hand, argued that the expression \" part of a business \" occurring in the proviso does not refer to or contemplate one of the many activities or processes thatare comprised in a business. It can only mean a cross-section of the entire business, complete in itself and including parts of each of the processes that are comprised in the same. It is next said that even assuming that the manufacturing operation can be treated as a part of the business, the\n\nCo111111issionc r of In.co111e-tax,\n\nBont!Jay\n\nAJ1111cdbhai U111arbhai & Co.\n\n!950\n\nCo1n11iissio11cr of btco111c-tax,\n\nBo1nbay\n\nAJ11nr:dbhai\n\nftlukhl'rja J.\n\nprofits of the same could and did accrue only at the place of sale and hence the proviso could not be attracted to the facts of the present case.\n\nAs regards the first part of Mr. Setalvad's contention, I do not think that it can be accepted as sound.\n\n\"Business\" is defined in the Act to include any trade, commerce or manufacture.\n\nA man may carry on the trade of a seller or purchaser of goods ; he may be a manufacturer of goods' or an exporter or importer of the same. Each of these would be a business within the meaning of the Act.\n\nSuppose, for example, that he combines all these activities and carries on a buiness which includes manufacturing, selling.and also exporting and importing of goods.\n\nCan it not be said that each one of these activities is a part of the business which he carries on? I agree with Mr. Munshi that if a particular process or activity of a continuous character can be distinguished from other processes and if a separate profit can be ascertained and allotted in respect to the same, there is no reason why it shopld not be regarded as a part of the business which yields income or profits.\n\nThe question has been raised in several cases in English Courts regarding liability to excess profits duty when a person carries on a trade or business liable to duty in connection with another business which is not so liable. It has been held that if separation is possible in such cases the proper course to follow is to sever the profits of the two businesses and assess accordingly.\n\nIn the case of Commissioners of Inland Revenue\n\nv. Ransom( 1 ) the respondents carried on the business as manufacturing chemists and growers of medicinal herbs; they owned a factory where the manufacture and distillation of herbs were carried on and they also occupied a farm on which they grew herbs for treatment in the factory.\n\nThe respondents were assessed to excess profits duty and on appeal against the assessment, the General Commissioners held that although the respondents occupied the farm mainly for the purpose of the factory, which was excluded from excess\n\n(I) [191~] 2 K.B. 709.\n\nprofits duty, as separation was possible, the profits of the farm were excluded and they were only assessed on the profits of the factory. This view of the General Commissioners was upheld by Sankey J. on appeal.\n\nThe same question arose in Commissioners of Inland Revenue v. 2\\1axse( 1 ), where the Court of appeal reversed the decision of Sankey J. In that case the appellant was the sole proprietor, editor and publisher -0f the \" National Review \" and was asessed on the profits of the publication. The General Commissioners held that the appellant was exempt from duty as he carried on the profession of a journalist, the profits of which depended mainly upon his personal qualifications within the meaning of the Finance Act. On appeal, Sankey J. reversed the decision of the General Commissioners and held that the assessee was not in the position of an ordinary journalist but derived his profits by the sale of a commodity, thereby carrying on an -0rdinary commercial business. The Court of appeal upset this decision of Sankey J. and held that the .assessee was really carrying on two businesses, one that of a journalist, author and a man of letters and the other that of publishing his periodical. The result was that the profits of the two businesses were directed to be apportioned, though the process was by no means an easy one. The same principle was applied by the Calcutta High Court in a case where the growing of tea as an agricultural produce, which was not liable to income-tax wq.s carried on along with the business of manufacturing tea [vide Killing Valley Tea Co. v. Secretary of State (2 )]. It is true that these are cases where several businesses were amalgamated and carried on together, or more of which were not liable to tax or exc; ess profits duty ; but the principle of apportionment upon which these cases were decided -could, in my opinion, be applied with equal propriety to cases where one part of the busine!\"s is distinct and separate from the other parts and is capable of earning profits separately.\n\nThat profits could and should be allotted to and\n\n.(1) [1919] 1. K.B. 6{7. m I.L; R . .(8 Cal.161.\n\nCo1111n.; ssionet' of Incoffi -tax,\n\nBombay v.\n\nAhmcdbhai U111arbluri & Co.\n\nM11khcrjea J.\n\nCo11111iissiu11er of !11co111c-fax,\n\n110111'1(!}'\n\nA/J111 .. :dbhai U111arbhai (.:Co.\n\napportioned between different parts of a business of a composite character is fully illustrated by the decision of the Privy Council in the Commissioner of Taxation\n\nv. Kirk('). In that case the assessees were a mining company who had mines in the colony of New South Wales.\n\nThe ore was extracted in New South V.'ales and was converted there into merchantable product.\n\nThe product, however, was sold not in New South \\; I/ales but in Victoria.\n\nUnder section 15 of the New South \\\\Tales Land and Income Tax Assessment Act, the following incomes were liable to be taxed :-\n\n\" Sub-section ( 1).\n\nArising or accruing to any person wheresoever residing from any profession, trade, employment or vocation carried on in New South \\Vales, whether the same be carried on by such person or on his behalf wholly or in part by any other person ...... (3) Derived from lands of the Crown held under lease or licence issued by or on behalf of the Crown. ( 4) Arising or accruing to any person wheresoever residing from any kind of property except from land subject to land tax as hereinafter specifically excepted, or from any other source whatsoever in New South Wales not included in the preceding sub-sections.\" It was held by the New South Wales Court that the assessee was not liable to tax under any of the above provisions. This decision was reversed by the Judicial Committee.\n\n\"It appears to their Lordships,\" so runs the judgment of the Judicial Committee, \" that there are four processes in the earning or production of this income- ( 1) the extraction of the ore from the soil ; (2) the conversion of the crude ore into a merchantable product, which is a manufacturing process; (3) the sale of the merchantable product; (4) the receipt of the moneys arising from the sale. All these processes are necessary stages which terminate in money, and the income is the money resulting less the expenses attendant on all the stages ...... The fallacy of the judgment of the Supreme Court in this and in Tindal's case is in leaving out of sight the initial stages, and fastening their attention\n\n111 [1 DJQJ A.C. 588.\n\nexclusively on the final stage in the production of the income.\"\n\nThus according to the Judicial Committee it was a fallacy to regard the profits as arising solely at the place of sale. It is to be noted that under the provisions of the New South Wales Act referred to above, the liability to tax depended not whether the income arose or accrued in New South Wales but whether it accrued from a source in New South Wales. This distinction is undoubtedly important and the learned Chief Justice of the Bombay High Court was not, it seems, right in laying no stress upon it and in observing in course of his judgment that income accrues or arisEs only at the place where its source is situated. This aspect of the case I will . discuss later on in connection with the second point that arises for consideration in this case.\n\nIt is enough to state at the present stage that bn the authority of Kirk's case it would be quite legitimate to hold that a portion of the net profit that the assessees in the present case made out of their total business could and should be allotted to the manufacturing process that was carried on at Raichur. The view is strengthened by two recent pronouncements of the Judicial Committee, the earlier of which reported in International Harvester Company of Canada v.\n\nProvincial Tax Commission (1 ) discusses the point in great details 'and was followed in its entirety in the later decision in Provincial Treasurer of Manitoba v.\n\nWrigley Jr. Co. Ltd. (2 ). lri International Harvester Co. of Canada v. Provincial Tax Commission (1 ), the question for decision turned upon the construction of section 21 (a) of the Income Tax Act, 1932 of Saskatchewan which after amendment was in the same terms as section 23 of the later Act of 1936.\n\nThe section provides that \" the income liable to taxation under this Act of every person residing outside of Saskatchewan who is carrying on business in Saskatchewan either directly or through or in the name of any other person shall be the net profit or gain arising from the business of such person in Saskatchewan.\" The .appellant company had its Head Office in Hamilton,\n\n(1) (194.9) A.O. 36.\n\n(21 (1950) A.I.R. 1950 P.O. 53.\n\n4.S\n\nCc.:1n1nissio11er of Inco1ne-tax,\n\nBombay v.\n\nA/1medb/1ai Umarbhai &- CA>.\n\nMuklrcrjeaj.\n\nCo1J1111issioncr 'lJj lm.:01111.:.fax,\n\nBo1u.'n1y\n\nAlitHr:clbliai Vnurrbhai & Go.\n\n.. \\luldh'rjca J.\n\nOntario, and was for income-tax purposes resident outside of Saskatchewan.\n\nIts business was that of manufacturing and selling agricultural implements, the manufacturing operations being carried on entirely outside the province of Saskatchewan and the selling operations partly in that province and partly in other provinces and countries.\n\nThe selling business in Saskatchewan was carried on at Branch Offices, all moneys received by the appellant in Saskatchewan being deposited in separate bank accounts and remitted in full to the Head Office which sent to the Saskatchewan branches such moneys as were required for operating and incidental expenses. It was held by the Judicial Committee that any part of the appellant's net profit which might fairly be attributed to its manufacturing operations outside the.province of Saskatchewan was not profit arising from the business of the appellant in Saskatchewan within the meaning of section 21 (a) of the Income Tax Act, 1932, as amended, and must be excluded in ascertaining the income of the appellant liable to taxation under that section.\n\nThe Judicial Committee in course of its judgment referred to the following passage occurring in the judgment of Duff C .• J. in the Supn: ne Court of Canada.\n\n\"The profits of the company are derived from a series of operations, including the purchase of raw materials or partly manufactured articles, completely manufacturing its products and transporting and selling them, and receiving the proceeds of such sales.\n\nThe essence of its profit-making business is a series of operations as a whole.\n\nThat part of the proceeds of sales in Saskatchewan which is profits is received in Saskatchewan, but it does not follow, of course, that the whole of such profit ' arises from ' that part of the company's business which is carried on there within contemplation of section 21 (a).\"\n\nTheir Lordships agreed with the appellant that a portion of the money received in Saskatchewan which represents net profit should be sub-divided and part of it should be treated as a ' manufacturing profit '\n\narisirig from the manufacturing business of the appellant outside Saskatchewan.\n\nThere was no insuperable difficulty according to their Lordships in making this apportionment.\n\nThis reasoning applies fully to the facts of the present case, though here again I should point out that the scheme of the Saskatchewan Act was to tax profits arising from a business in a particular place and to that extent the language of the Indian Act is undoubtedly different.\n\nLike the Kirk's case, it can, however, be taken as an authority for the proposition that in cases like the one we have before us, there <:ould be apportionment of the net profits that accrue to the business of the assessee and one portion of it could be allotted to that part of the business which relates to the manufacture of commodities which arc ultimately sold in the market.\n\nTJ.i.e later decision of the Judicial Committee referred to above simply follows the International Harvester Company's case without any further discussion.\n\nMr. Munshi in course of his arguments has referred to the provisions of section 42 (3) of the Indian Incometax Act and he contends that the language of this sub-section clearly indicates that in the contemplation of the legislature certain operatiot1s of a business could be regarded as a part of the business and the principle. of apportionment which this sub-section provides can very properly be made applicable to a case coming under the third proviso to section 5 of the Excess Profits Tax Act. Section 42, sub-section (1), provides inter alia that the whole of the income and profits accruing or arising whether directly or indirectly through business connection in British India would be deemed to be income accruing within British India so as to be liable to tax in this country. The scope of this provision is narrowed down by sub-rule (3) which provides that where all the operations of the business are not carried on in British India, the pr6fits and gains of the business deemed to accrue or arise in this country are limited to such profits or gains as can reasonably be attributed to the part of the\n\nCom.missione,.. of 1\"come-tax,\n\n&mba; y\n\nAhmedbhai Umarbhai & Co.\n\nM11kl1e1jea J.\n\nCo1J1111i.<; siont!r of Inco11tc+tax,\n\nBon1!ury\n\nv •\n\n. Al111ie:ll1/111 i Uniarbhai & Co.\n\n.Uuli!terj<'n J.\n\noperations carried on in this oountry. The Raichur factory certainly has business connection in British India for a part of the oil manufactured by it is sold through the Bombay establishment of the assessees.\n\nIt is clear also that all the operations of the Raichur business are not carried on in Bombay. Therefore, the profits that would be deemed under this section. to accrue or arise in Bombay will only be the profits which may reasonably be attributed to that part of the operations carried on in Bombay, tnat is to say, to sale of part of its oil in Bombay. As section 42 applies to an assessee who is a resident in India, there is no reason why this principle of apportionment should not apply to a case falling within the third proviso to section 5 of the Excess Profits Tax Act.\n\nMr. Setalvad points out that section 42 contemplates income or profits not actually arising or accruing in British India but only deemed to arise or accrue in this country under the circumstances specified in the section, and therefore no such question can arise under proviso (3) to section 5 of the Excess Profits Tax Act. It appears, however, that in enacting proviso (2) to section 5 of the Excess Profits Tax Act which relates to business carried on by a non-resident, the legislature had in mind the provision of section 42 of the Income-tax Act. The expression \" part of a business \" occurring in proviso (2) to section 5 can, therefore, be taken legitimately to mean such operations of the business to which separate profits are attributable as laid down in sub-section (3) of section 42. Although proviso (3) is applicable to a different set of circumstances, the words \" part of a business \" as used in that proviso must be taken to have been used in the same sense as in the earlier proviso and to this extent, at any rate, it favours the contention of the respondents that no cross-section of the entire business was meant by that expression.\n\nAgain it is quite true that there is no express direction as to apportionment in the third proviso to section 5 of the Excess Profits Tax Act as there is in sub-section (3) of section 42 of the Income-tax Act.\n\nHowever, pr')fits can accrue in respect to a part of a business only when apportionment is possible and it is\n\non this assumption that this proviso is based. If no apportionment can be made in respect of the processes or activities of a particular business, they will not be considered to be a part of the business at all and the proviso will not apply. The principle of apportionment, therefore, is implied in the third proviso to section 5 of the Excess Profits Tax Act.\n\nI now come to the other question as to whether the profits of the manufacturing part of the assessees' business did arise or accrue at Raichur within the Hyderabad State. The point is not altogether free from difficulty and although a large number of decided authorities have been placed before us in this connection by the learned counsel on both sides, none of them seems to be directly in point. The cases cited relate mostly to different provisions of the Income-tax Act which make income taxable if it arises, accrues or is received in British India or is deemed under the provisions of law to arise, accrue or to be received in British India. So far as the third provirn to section 5 of the Excess Profits Tax Act is concerned, it is to be noted that it uses the expression \"accrue\" and\" arise\" but not the word \"received \" and further there is no provision here under which income could be deemed to arise or accrue at a particular place even if it does not actually do so.\n\nProfits of a business are undoubtedly not \" received\" till the commodities are sold and they are ascertained only when the sale takes place, but the question is that if a part of the business which consists of manufacturing goods and is carried on prior to the sale, yields profits, do these profits accrue or arise only at the place where the manufactured goods are sold? We have been referred to a number of decided authorities, where the assessee carried on the business of buying and selling and the goods and raw materials were purchased in one place and sold in another and the question arose whether for purposes of taxation portion of the profits could be held to aris~ at the place of buying also.\n\nThe decision of the Madras High Court in Secretary, Board of Revenue, .Madras v. lvfadras Export\n\nCou11ui:>sio1Zcr of lncmm .. ·· t,1.-.:,\n\nBo:ubay\n\nV11larbllai & Co.\n\n.1luklw\"j, a J.\n\nCom1nissionef' of Income-tax,\n\nBo11ibay\n\nAfi1nr:dfJhai U111arbliai & Co.\n\nllfuklierjca J.\n\nCompany ( 1 ) is one of the leading pronouncements in this line of authorities. The question for decision in that case was whether the profits of a firm which had its headquarters in Paris and purchased raw skins through an Agent in Madras which were exported to and sold .in Paris were taxable in British India under section 33 (1) of the Income-tax Act of 1918 which corresponded, though not identically, to section 42 of the present Act. The question was answered in the negative. The learned Judges held that section 33 was not a charging but a machinery section and relied on the decision of the English Court i.n Greenwood v.\n\nSmidth and Company('), which laid down thata trade is exercised in the place where the business transactions are closed ; and in the case of a selling business, that place would be where the sales are effected and the profits realised. The propriety of the Madras decision was questioned by the Calcutta High Court in Rogers Pyatt Shellac and Company v. Secretary of State for India (•), and it was pointed out that the Judges of the Madras Court wholly overlooked a vital distinction between Indian and English Income Tax Law in so far as the former lays down that certain profits, though not actually arising or accruing in British India, should be deemed to arise or accrue in this country.\n\nUnder the English law, the essential thing for purposes of taxation was that profit should accrue from trade exercised within the United Kingdom and there was no provision there corresponding to that contained in section 42 of the Indian Income-tax Act.\n\nThe decision in the Secretary, Board of Revenue, Madras v.\n\nMadras Export Company (1 ) was, however, followed by a Full Bench of the Lahore High Court in jiwandas\n\nv. Income-tax Commissioner, Lahore (4). In that case, the question arose as to whether a person residing and carrying on business in British India and purchasing goods there which were sold in Kashmir was liable to assessment on the ground that a part of the profits accrued within British India. The Full Bench gave a negative answe;: to this question and the basis.\n\n(I) l.L.R. 46 Mad. 36P. (2)\n\n[1922] I A.C. 417.\n\n(3) I.L.R. 52 Cal. I.\n\n(4) I.L.R. 10 Lah. 657.\n\n~ I\n\ni I\n\nS.C.R.\n\nSUPREME. CQ.cyT REPORTS 385\n\n-of the decision was that mere purchase of goods\n\nin British Indi~ had too remote a connection to justify the conclusion that a part o.f the pi; ofits should be held to have \"accrued\" in this country. As the business was one of buying and selling, it was held that the profits accrued or arose actually at the place where the g?ods were sol~ and not at t, he place where they\n\nwere merely purchased for export. It should be noted -that .this case was decided pr, or to 1939 and the -changes that were introduced into section 42 ..of the Income-tax Act by the Amending' Act of 1939 were not in existence at that time. The assessee was a resident of British India and tbe only question for deci- sion in that case was Whether the profits''did actually .arise or accrue in British India. It was held. that they did not. Both these cases were followed with .approval by a Mdras Special Bench in the subsequent .case of S. V. P. Sudalainiani Nadar v. Commissioner .of Income-tax, Madras( 1 ).\n\nThat was also a case where the assessee was a resident of British India and h::..viD; g-purchased animals in Briti$h India exported them to foreign countries for sale. It was held that he was not assessable to income-tax, as ' the profits were not received or brought into British India. , All these cases were. reviewed by a Division B.ench of the Oriss':l High COurt, consisting of Chief Justice Ray and 'Narasimham J. ij1 Rahim v. Commissioner oj Income- .tax (le).\n\nHere tpe assessee used to buy hides, horns, etc. in the Orissa State and sell them in British India and the q'uestion was whether any part of the profits .accrued or arose within an Indian State. The answer given by the Court was in the negative, though the Chief Justice in a separate judgment observed that he was not prepared to lay down as a proposition of law - that in all businesses of buying and selling, the entire profits necessarµy accrue at the place where the sales , take place. Each case would depend upon its own\n\ncircum$tnces and there may be cases where the place where tne commodities are purchsed pas an im'portance of its o\\VJl.\n\nOn the 'facts. of the ase which they were actually deciding it was said that the act of buying\n\n(1) A.LR. [19•11 Mad. 229. ('l) A.I.R. 119,9) Ori~ GO.\n\n1950\n\nCot11111issioucr of l11co111e:t<1x,\n\nBombay_ '\n\nAhmerlbli a i Vmarbhai &- Co.\n\n, U11kl1crjca J.\n\nContmissiancr of Inc01ne-tax,\n\nBmnbay\n\nAhniedbhai Umarbhai & Co.\n\nJ.Iuklzerjc11 J.\n\nwas so negligible a part of the operation of the business. as not to make any appreciable difference in the appor-· tionment of the amount that accrued or arose in British.\n\nIndia. , It will .be seen that none of these decisions are .really of any assistance to the appellant in the present case. All of them proceeded on the footing that no appreciable profit resulted from the operation of buying when the goods were purchased at one place and exported in a raw state to another place for sale. In the- Orissa case referred to above, Narasimham J. expressly observed in course of his judgment that the position. might be different if. the materials purchased underwent any manufacturing process_ before they. wereexported. If no profits really resulted - from .the purchasing part of the business; obviously the question of the place where~ such profits arise or accrue does not. become material at all.\n\nAs against these cases, several authorities havebeen cited to us which have proceeded on the footing that even purchase of raw materials could be an operation in connection with a business and if it was carried. on in British India, it might make the profits attributable to such operation taxable under. section 42 of - the Indian Income-tax Act. ·· The case of Rogers Pyatt Shellac and Company v. Secretary ojState for India(') is one of the leading decisions on this point. In that case, a company incorporated in U.S. A. and having its Head Office in New York, and Branch Offices, Agencies and factories in Calcutta, London, etc. pur~· chased goods in India for sale in America. It had also _ a factory in l:he United Provinces where raw produce\n\nwas bought locally and worked up into a form suitablefor exports to America. It was held that the company was not exempt fromassessment. to income-tax or super-tax in India.\n\nThis case was decided under section 33 of the'lncome-tax Act of 1918 and the judg-• ment shows that the principle followed in the case was similar to that which was subsequently embodied in section 42 (3) of the Income-tax Act of 1922. The• - same line of reasonng was adopted by the Rangoon.\n\n(1) I.L.R. 52 Cal. 1.\n\nHigh Court in Commissioner of Income-tax, Burma v.\n\nMessrs. Steel Brothers and Company ( 1 ). Among recent cases, on this point, which were decided under section 42 of the Income-tax Act of 1922, can be mentioned the case of Motor Union Insurance Co.\n\nLtd. v. Commissioner of Income-tax. Bombay ( 2 ) and that of Webb Sons and Company v. Commissioner of Income-tax, East Punjab (a).\n\nIn the last case, the assessee company which was incorporated in the United States of America, was carrying on in America the business of manufacturing carpets. Its only business in India was the purchase of wool as raw material for the carpets. It was held that the purchase was an operation within the meaning of section 42 (3) of the Income-tax Act and profits from such purchases could be deemed to arise in British India and was consequently assessable under section 42 (3) of the Income-tax Act.\n\nThese cases, jt must be admitted, are not of much assistance to the respondents in this case, though they do not help the appellant either. They were decided on the express language of section 42 of the Incometax Act, 1922, as it then stood or the section corresponding to it in the earlier Act. There remains for me to refer to the other line of authorities upon which the judgment of the High Court seems to be primarily based.\n\nIn my opinion, they cannot also be regarded as direct authorities on the. point requiring consideration in the present case. In Commissioner of Income- Tax v. Kirk l 4), the profits derived frnm extraction of ore from the soil and also from the conversion of the crude ore into merchantable product were held to be taxable, as the source of these profits was situated in New South Wales and that was the basis of taxation\n\nnder the New South Wales Act. The High Court was not right in holding that as a matter of law, profits must be held to arise at the place where the source of the profit is situated.\n\nThe Privy Council clearly laid. down in the case of the Commissioner of Incometax1 v. Cltunilal(5) that income from business does not\n\nCl) I.L.R. 3 Rang. 614.\n\n(2) A.I.R. [19,5] Born. 285 •\n\n.(3) [1950) 18 I.TR. 33.\n\nC'l [1900] A.C. 588.\n\n(5) 65 I.A. 332. ,9\n\nCo111111issioner of Inco111e-tax,\n\nB0111bay\n\nAl1111cdf>11ai U111arbhai & Co.\n\nCo11unissioncr of Jnconu:.tax,\n\nBonibay\n\nAJ1111edbhai Umarbliai &- Co.\n\nM'ikhcrfca /.\n\nnecessarily arise or accrue at the place from which directions are given or skill and judgment exercised, although the operat1ons may take place elsewhere ; and it is not the scheme of the Income-tax Act that the profits in the case of a business cannot be taken distributably but must be taken as a single indivisible result accruing at one place.\n\nThe learned Chief Justice of Bombay in support of his judgment relied strongly upon the decision of the Madras High Court in Commissioner of Income-tax v . • Uathias('). In that case, the assessee, who was a resident of Mangalore in British India, owned coffee plantations in Mysore.\n\nThe harvested crops were brought to Mangalore to be dried and cleansed there in the factory of the selling agents of the assessee and sold there by that company, the sale proceeds being received and retained at Mangalore by the assessee himself. The question was whether the assessee was entitled to claim the benefit of the second proviso to\n\nection 4 (2) of the Income-tax Act and if so, to what extent? It was held by the learned Judges that the\n\nassess~~ was entitled to exemption of the whole profits earned 'by the sale of the produce at Mangalore, and the ground upon which the decision rested was that the agricultural produce itself could be taken to be income in kind which accrued at Mysore outside British India. On appeal to the Privy Council, this decision was reversed and the Privy Council took the view that as the income was received in British India, the proviso to sction 4 (2) had no application(•). The particular point upon which the Madras High Court based its decision was not considered by the Judicial Committee and was left open. Obviously in the case before us the manufactured oil that was produced at Raichur could not be taken to be income or profits in kind.\n\nThe manufactured products themselves cannot be regarded as income though the process of manufacture yields profits which form a portion of the profits ultimtely realised at the time of the sale. The question before\n\n(1) I.L.R. (1938] Mad. 25.\n\n(2) Vide Co1111nissioncr of lncometax v. Matltias-66 I.A. 23.\n\nus is, where do the profits resulting from the manufacturing process accrue or arise ?\n\nIt was pointed out by Muherji J. in Re Rogers Pyatt Shellac and Co. v. Secretary of State for India ( 1 ) that etymologically the word \"accrues\" connotes the idea of a growth, addition or increase by way of accession or advantage, while the word \" arises \" suggests the idea of growth or accumulation with a -tangible shape so as to be receivable. The two expressions denote almost the same idea and the difference only lies in the fact that one is more appropriate than the other when applied to particular cases. It is clear, however, as the learned Judge pointed out that these words have been used in contradistinction to the word \" received \" and both of them represent a stage anterior to the point of time when the income becomes receivable ; they connote a character of income which is more or less inchoate. As I have stated already, in proviso (3) to section 5 of the. Excess Profits Tax Act, the legislature has deliberately left out the word \"received\" and has spoken only of \" accruing\" or \"arising.\" This shows that the legislature l).ad in \"'.ind cases where profits could accrue to parts of a busmess before they were actually received. When a raw material is worked up into a new product by process of manufacture, it obviously increases in value ; in other words, there is an accretion of profit to it and the increased value represents this income or profit which is the result of manufacture.\n\nAs these profits accrue by reasW>n of manufacture, the accrual, in my opinion, cannot but be located at the place where the manufacturing -process is gone through. It is immaterial that the manufacture:d goods are sold later on at various places. If the manufacturer is himself the seller, it might be that he receives the entire profits including that of the manufacture only at the time of the sale ; but in an inchoate shape, a portion of the profits does accrue at the place of manufacture, the exact amount of which is 0•1~, y ascertained after the sale takes place. For purposes of computation, the two parts of the business may be conceived of as being carried on by two\n\n(1) 'I.L.R. 52 Cal. 1 at p. 30.\n\nCou111iissioner of Income-tax,\n\nBombay\n\nAlwicdbhai Umarbhai &o Co,\n\n.llukherjea J.\n\nCommissioner of lncomctax,\n\nBombay\n\nAhmedbliai Umarbllai & Co.\n\nMt4khcrjea /.\n\nDas/.\n\ndifferent sets of persons. As soon as the manufacture is complete, that part of the business is finished and the profits that accrue to that part certainly arises at the place where the manufacture is carried on and not where the sale ultimately takes place. As the principle of section 42 of the Income-tax Act applies to this case the profits to be deemed under that section to accrue or arise in British India would only be the profits that may reasonably be attributed to one part of the operations, namely, sales of part of the oil; and the profits accruing or arising out of the other part of the operation, namely, the manufacture of the oil which takes place outside India could not be deemed to accrue or arise in In'dia. Where then these profits would arise or accrue or be deemed to arise or accrue except at the place of manufacture?\n\nMy conclusion, therefore, is that the profits of the manufacturing part of the assessees' business did accrue and arise at Raichur and the judgment of the High Court should be affirmed, though I do not concur in all the reasons given by the learned Judges.\n\nDAS J.-1 substantially agree with the .reasonings given in the judgment just delivered oymy learned brother Mukherjea and concur in dismissing this appeal.\n\nAppeal dismissed.\n\nAgent for the Appellant: P.A. Alehta.\n\nAgent for the Respondents: Ranjit Singh Narula.\n\n' '", "total_entities": 308, "entities": [{"text": "335\n\nCOMMISSIONER OF INCOME-TAX, BOMBAY", "label": "PETITIONER", "start_char": 30, "end_char": 69, "source": "metadata", "metadata": {"canonical_name": "COMMISSIONER OF INCOME-TAX, BOMBAY", "offset_not_found": false}}, {"text": "AHMEDBHAI UMARBHAI & CO., BOMBAY", "label": "RESPONDENT", "start_char": 71, "end_char": 103, "source": "metadata", "metadata": {"canonical_name": "AHMEDBHAI UMARBHAI & CO., BOMBAY", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA G~ SAIYID F AZL ALI", "label": "JUDGE", "start_char": 107, "end_char": 145, "source": "metadata", "metadata": {"canonical_name": "SIR SYED FAZL ALI*", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 148, "end_char": 164, "source": "metadata", "metadata": {"canonical_name": "PATANJALI SASTRI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 166, "end_char": 184, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHA.JAN", "offset_not_found": false}}, {"text": "MUKHERJEA", "label": "JUDGE", "start_char": 187, "end_char": 196, "source": "metadata", "metadata": {"canonical_name": "MUKHERJEA", "offset_not_found": false}}, {"text": "DAS JJ.", "label": "JUDGE", "start_char": 201, "end_char": 208, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS*", "offset_not_found": false}}, {"text": "Prnjits Tax Act", "label": "STATUTE", "start_char": 219, "end_char": 234, "source": "regex", "metadata": {}}, {"text": "s. 5", "label": "PROVISION", "start_char": 249, "end_char": 253, "source": "regex", "metadata": {"linked_statute_text": "Prnjits Tax Act", "statute": "Prnjits Tax Act"}}, {"text": "s. 42", "label": "PROVISION", "start_char": 306, "end_char": 311, "source": "regex", "metadata": {"linked_statute_text": "Prnjits Tax Act", "statute": "Prnjits Tax Act"}}, {"text": "s. 42", "label": "PROVISION", "start_char": 634, "end_char": 639, "source": "regex", "metadata": {"linked_statute_text": "Prnjits Tax Act", "statute": "Prnjits Tax Act"}}, {"text": "Section 5", "label": "PROVISION", "start_char": 646, "end_char": 655, "source": "regex", "metadata": {"linked_statute_text": "Prnjits Tax Act", "statute": "Prnjits Tax Act"}}, {"text": "Excess Profits Tax Act, 1940", "label": "STATUTE", "start_char": 663, "end_char": 691, "source": "regex", "metadata": {}}, {"text": "India", "label": "GPE", "start_char": 1372, "end_char": 1377, "source": "ner", "metadata": {"in_sentence": "A firm which was resident in British India and carried on the business of manufacturing and selling groundnut oil, owned some oil mills within British India and a mill in Raichur in the Hyderabad State where oil was manufactured."}}, {"text": "British India", "label": "GPE", "start_char": 1478, "end_char": 1491, "source": "ner", "metadata": {"in_sentence": "A firm which was resident in British India and carried on the business of manufacturing and selling groundnut oil, owned some oil mills within British India and a mill in Raichur in the Hyderabad State where oil was manufactured."}}, {"text": "Raichur", "label": "GPE", "start_char": 1506, "end_char": 1513, "source": "ner", "metadata": {"in_sentence": "A firm which was resident in British India and carried on the business of manufacturing and selling groundnut oil, owned some oil mills within British India and a mill in Raichur in the Hyderabad State where oil was manufactured."}}, {"text": "Hyderabad", "label": "GPE", "start_char": 1521, "end_char": 1530, "source": "ner", "metadata": {"in_sentence": "A firm which was resident in British India and carried on the business of manufacturing and selling groundnut oil, owned some oil mills within British India and a mill in Raichur in the Hyderabad State where oil was manufactured."}}, {"text": "Bombay", "label": "GPE", "start_char": 1659, "end_char": 1665, "source": "ner", "metadata": {"in_sentence": "The oil manufac tured in Raichur was sold partly within the State of Hyderabad and partly in Bombay :\n\nHelil,."}}, {"text": "Helil", "label": "JUDGE", "start_char": 1669, "end_char": 1674, "source": "ner", "metadata": {"in_sentence": "The oil manufac tured in Raichur was sold partly within the State of Hyderabad and partly in Bombay :\n\nHelil,."}}, {"text": "KANIA", "label": "JUDGE", "start_char": 1697, "end_char": 1702, "source": "ner", "metadata": {"in_sentence": "lnJ the Fitll Comt (KANIA C. J., PATANJALI SASTRI, FAZL ALI, MEHR CHAND MAHA.JAN, MUKHERJEA and DAS JJ.)- The expression \"part of a business\" in the provieo to section 5 does not necessarily mean a separate composite unit of all the constituent activities of the business or a complete crosssection of the entire business operations but is wide enough to mean one or more of the operations of the business, and that the manufacturing operations which the firm carried on at Raichur were \"a part of tho business\" of the assessees within the meaning of the proviso.", "canonical_name": "KANIA"}}, {"text": "FAZL ALI", "label": "JUDGE", "start_char": 1728, "end_char": 1736, "source": "ner", "metadata": {"in_sentence": "lnJ the Fitll Comt (KANIA C. J., PATANJALI SASTRI, FAZL ALI, MEHR CHAND MAHA.JAN, MUKHERJEA and DAS JJ.)- The expression \"part of a business\" in the provieo to section 5 does not necessarily mean a separate composite unit of all the constituent activities of the business or a complete crosssection of the entire business operations but is wide enough to mean one or more of the operations of the business, and that the manufacturing operations which the firm carried on at Raichur were \"a part of tho business\" of the assessees within the meaning of the proviso.", "canonical_name": "FAZL ALI"}}, {"text": "MEHR CHAND MAHA.JAN", "label": "JUDGE", "start_char": 1738, "end_char": 1757, "source": "ner", "metadata": {"in_sentence": "lnJ the Fitll Comt (KANIA C. 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J., PATANJALI SASTRI, FAZL ALI, MEHR CHAND MAHA.JAN, MUKHERJEA and DAS JJ.)- The expression \"part of a business\" in the provieo to section 5 does not necessarily mean a separate composite unit of all the constituent activities of the business or a complete crosssection of the entire business operations but is wide enough to mean one or more of the operations of the business, and that the manufacturing operations which the firm carried on at Raichur were \"a part of tho business\" of the assessees within the meaning of the proviso."}}, {"text": "section 5", "label": "PROVISION", "start_char": 1837, "end_char": 1846, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 2244, "end_char": 2253, "source": "regex", "metadata": {"statute": null}}, {"text": "NIA", "label": "JUDGE", "start_char": 2283, "end_char": 2286, "source": "ner", "metadata": {"in_sentence": "Held also pe1 K~NIA C .. J., FAZL ALI, :\\IEHH CHAND l\\LULUAN, l\\11..\"KHEHJEA and DAS J.J.-that the profits of that part of the business, namely, the manufacture of oil at the mill in Raichur accrued or arose in Haichur within the meaning of the said proviso, even though Lhe manufactured oil was sold in Bombay and the price\n\nwas received there, and accordingly, that part of the profits derived from sales in Bombay which was attributable to the manufacture of the oil in Haichur was exempt from excess profits tax nnder the proviso to section 5 of the Act."}}, {"text": "\\IEHH CHAND l\\LULUAN", "label": "JUDGE", "start_char": 2307, "end_char": 2327, "source": "ner", "metadata": {"in_sentence": "Held also pe1 K~NIA C .. J., FAZL ALI, :\\IEHH CHAND l\\LULUAN, l\\11..\"KHEHJEA and DAS J.J.-that the profits of that part of the business, namely, the manufacture of oil at the mill in Raichur accrued or arose in Haichur within the meaning of the said proviso, even though Lhe manufactured oil was sold in Bombay and the price\n\nwas received there, and accordingly, that part of the profits derived from sales in Bombay which was attributable to the manufacture of the oil in Haichur was exempt from excess profits tax nnder the proviso to section 5 of the Act."}}, {"text": "\"KHEHJEA", "label": "JUDGE", "start_char": 2335, "end_char": 2343, "source": "ner", "metadata": {"in_sentence": "Held also pe1 K~NIA C .. J., FAZL ALI, :\\IEHH CHAND l\\LULUAN, l\\11..\"KHEHJEA and DAS J.J.-that the profits of that part of the business, namely, the manufacture of oil at the mill in Raichur accrued or arose in Haichur within the meaning of the said proviso, even though Lhe manufactured oil was sold in Bombay and the price\n\nwas received there, and accordingly, that part of the profits derived from sales in Bombay which was attributable to the manufacture of the oil in Haichur was exempt from excess profits tax nnder the proviso to section 5 of the Act."}}, {"text": "Haichur", "label": "GPE", "start_char": 2478, "end_char": 2485, "source": "ner", "metadata": {"in_sentence": "Held also pe1 K~NIA C .. J., FAZL ALI, :\\IEHH CHAND l\\LULUAN, l\\11..\"KHEHJEA and DAS J.J.-that the profits of that part of the business, namely, the manufacture of oil at the mill in Raichur accrued or arose in Haichur within the meaning of the said proviso, even though Lhe manufactured oil was sold in Bombay and the price\n\nwas received there, and accordingly, that part of the profits derived from sales in Bombay which was attributable to the manufacture of the oil in Haichur was exempt from excess profits tax nnder the proviso to section 5 of the Act."}}, {"text": "section 5", "label": "PROVISION", "start_char": 2804, "end_char": 2813, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 2986, "end_char": 2996, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 3369, "end_char": 3379, "source": "regex", "metadata": {"statute": null}}, {"text": "Raicbur", "label": "GPE", "start_char": 3666, "end_char": 3673, "source": "ner", "metadata": {"in_sentence": "It followed as a corollary that the rest of the profits attributable to the 1nanufacture at Raicbur rnust he regarded as accruing or arising in the Hyderabad State and ws therefore exempt under the proviso to s. 5 of the Act."}}, {"text": "s. 5", "label": "PROVISION", "start_char": 3783, "end_char": 3787, "source": "regex", "metadata": {"statute": null}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 4242, "end_char": 4249, "source": "ner", "metadata": {"in_sentence": "Per MAHAJAN J.-Though profits may not be realised until a manufactured article is sold, profits are not wholly made by the act of sale and do not necessarity accrue a.t the place of sale a.nd to the extent profits are attributable to the manufacturing operations, profits accrue at the place where the operations are carried on."}}, {"text": "i\\fUKHERJEA", "label": "JUDGE", "start_char": 4573, "end_char": 4584, "source": "ner", "metadata": {"in_sentence": "Per :i\\fUKHERJEA J.-\\Vhere raw material is worked up into a new prorluct by process of manufacture, it obviously increases in value and this increase in value represents the income or profit which is the result of the 1nanufacture, and a.s this profit accrues by rea.son of the tnanufacture it cannot but be locn.ted at the place \\Vhere the inanufacturing process is gone through."}}, {"text": "High Court of Bombay", "label": "COURT", "start_char": 5553, "end_char": 5573, "source": "ner", "metadata": {"in_sentence": "LXVIII of 1949] from a Judgment of the High Court of Bombay dated 18th l\\Iarch 1948 (Chagla C.J. and Tendolkar J.) in a Reference under the Excess Profits Tax Act, 1940."}}, {"text": "Chagla C.J.", "label": "JUDGE", "start_char": 5599, "end_char": 5610, "source": "ner", "metadata": {"in_sentence": "LXVIII of 1949] from a Judgment of the High Court of Bombay dated 18th l\\Iarch 1948 (Chagla C.J. and Tendolkar J.) in a Reference under the Excess Profits Tax Act, 1940."}}, {"text": "Tendolkar", "label": "JUDGE", "start_char": 5615, "end_char": 5624, "source": "ner", "metadata": {"in_sentence": "LXVIII of 1949] from a Judgment of the High Court of Bombay dated 18th l\\Iarch 1948 (Chagla C.J. and Tendolkar J.) in a Reference under the Excess Profits Tax Act, 1940."}}, {"text": "Reference under the Excess Profits Tax Act, 1940", "label": "STATUTE", "start_char": 5634, "end_char": 5682, "source": "regex", "metadata": {}}, {"text": "JYI. C. Setalvad", "label": "OTHER_PERSON", "start_char": 5685, "end_char": 5701, "source": "ner", "metadata": {"in_sentence": "JYI."}}, {"text": "B. Sen", "label": "LAWYER", "start_char": 5732, "end_char": 5738, "source": "ner", "metadata": {"in_sentence": "C. Setalvad, Attorney-General for India, (B. Sen with him) for the appellant."}}, {"text": "ICM. JY!unshi", "label": "LAWYER", "start_char": 5769, "end_char": 5782, "source": "ner", "metadata": {"in_sentence": "ICM."}}, {"text": "S. K. Aiyar", "label": "LAWYER", "start_char": 5784, "end_char": 5795, "source": "ner", "metadata": {"in_sentence": "JY!unshi (S. K. Aiyar and N. K. Gamadia with him) for the respondents."}}, {"text": "N. K. Gamadia", "label": "LAWYER", "start_char": 5800, "end_char": 5813, "source": "ner", "metadata": {"in_sentence": "JY!unshi (S. K. Aiyar and N. K. Gamadia with him) for the respondents."}}, {"text": "High Court of Judicature at Bombay", "label": "COURT", "start_char": 5961, "end_char": 5995, "source": "ner", "metadata": {"in_sentence": "The Court delivered the following Judgments:-\n\nKANIA C.J .-This is an appeal from a decision of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate Tribunal, Bombay, under section 66 ( 1) of the Indian Incometax Act."}}, {"text": "Income-tax Appellate Tribunal, Bombay", "label": "COURT", "start_char": 6025, "end_char": 6062, "source": "ner", "metadata": {"in_sentence": "The Court delivered the following Judgments:-\n\nKANIA C.J .-This is an appeal from a decision of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate Tribunal, Bombay, under section 66 ( 1) of the Indian Incometax Act."}}, {"text": "section 66", "label": "PROVISION", "start_char": 6070, "end_char": 6080, "source": "regex", "metadata": {"linked_statute_text": "Reference under the Excess Profits Tax Act, 1940", "statute": "Reference under the Excess Profits Tax Act, 1940"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 6287, "end_char": 6301, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 2", "label": "PROVISION", "start_char": 7328, "end_char": 7337, "source": "regex", "metadata": {"linked_statute_text": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act", "statute": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act"}}, {"text": "Section 5", "label": "PROVISION", "start_char": 7664, "end_char": 7673, "source": "regex", "metadata": {"linked_statute_text": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act", "statute": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act"}}, {"text": "section 4", "label": "PROVISION", "start_char": 7955, "end_char": 7964, "source": "regex", "metadata": {"linked_statute_text": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act", "statute": "Raicbur and that portion of the profits should not be assessed to tax under the Excess Profits Tax Act"}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 7972, "end_char": 7999, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "cania", "label": "JUDGE", "start_char": 8213, "end_char": 8218, "source": "ner", "metadata": {"in_sentence": "This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause (i) or sub-clause (ii) of clause (b) of sub-section ( 1) of section 4 of the Indian Income-tax Act, 1922, or of clause (c) of that subsection: Provided that this Act shall not apply to any business the whole of the profits of which accrue or\n\nCo1n1nissioncf' of Inconie-tax 1\n\nBombay\n\nAll11iedbhai V111arbliai & Co.\n\n:cania C. J.\n\n]950\n\nCo111111 issio1£cr of lncotne-tax,\n\nBo111bay , ..\n\nAltuzedbl1ai Umarb/iai & Co.\n\nl(ania CJ."}}, {"text": "British India or are deemed under the Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 8701, "end_char": 8766, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Section 21", "label": "PROVISION", "start_char": 9576, "end_char": 9586, "source": "regex", "metadata": {"linked_statute_text": "British India or are deemed under the Indian Income-tax Act, 1922", "statute": "British India or are deemed under the Indian Income-tax Act, 1922"}}, {"text": "sections 4", "label": "PROVISION", "start_char": 9710, "end_char": 9720, "source": "regex", "metadata": {"linked_statute_text": "British India or are deemed under the Indian Income-tax Act, 1922", "statute": "British India or are deemed under the Indian Income-tax Act, 1922"}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 9866, "end_char": 9893, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 3", "label": "PROVISION", "start_char": 10299, "end_char": 10308, "source": "regex", "metadata": {"linked_statute_text": "the Indian Income-tax Act, 1922", "statute": "the Indian Income-tax Act, 1922"}}, {"text": "section 42", "label": "PROVISION", "start_char": 10543, "end_char": 10553, "source": "regex", "metadata": {"linked_statute_text": "the Indian Income-tax Act, 1922", "statute": "the Indian Income-tax Act, 1922"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 10568, "end_char": 10582, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": ".Jerson", "label": "OTHER_PERSON", "start_char": 11889, "end_char": 11896, "source": "ner", "metadata": {"in_sentence": "1) All income, profits or gains accruing or arising, whether directly or indirectly, through or from any business connection in - British India, or through or from any property in British India, or through or from any asset or source of income in British India, or through or from any money lent at interest and brought into British India in cash or in kind, shall be deemed to be income accruing or arising within British India, and where the person entitled to the income, profits or gains is not resident in British India, shall be chargeable to income-tax either in his name or in the name of his agent ....\n\n(2) Where a person not resident or not ordinarily resident in British India, carries on business with a person resident in British India, and it appears to the Income-tax Officer that owing to the close connection between such persons the course of business is so arranged that the business done by the resident person with the person not resident or not ordinarily resident produces to , fhe resident either no profits or less than the ordinary profits which might be expected to arise in that business, the profits derived therefrom or which may reasonably be deemed to have been derived therefrom, shall be chargeable to income-tax in the name of the resident _.Jerson who shall be deemed to be, , for all the purposes of this Act, the assessee in respect of such income-tax."}}, {"text": "section 5", "label": "PROVISION", "start_char": 12500, "end_char": 12509, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 13387, "end_char": 13396, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 15111, "end_char": 15120, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 16060, "end_char": 16070, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 16089, "end_char": 16103, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 21", "label": "PROVISION", "start_char": 16320, "end_char": 16330, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 16400, "end_char": 16410, "source": "regex", "metadata": {"statute": null}}, {"text": "AJ1medbhai Vmarbhai", "label": "JUDGE", "start_char": 17316, "end_char": 17335, "source": "ner", "metadata": {"in_sentence": "This argument sverlooks the distinction between accruing or arising on the one\n\nCmn111issio11er Of Income-tax;\n\nBombay\n\nAJ1medbhai Vmarbhai & Ci>."}}, {"text": "Kania", "label": "JUDGE", "start_char": 17344, "end_char": 17349, "source": "ner", "metadata": {"in_sentence": "Kania C.J.\n\nCo111111i.-1sioner <8f Inco11i:!-fax1\n\nBo111'1ay\n\nAh11i:•dl1hai U111arbltai & Co.\n\nJ{auia C. J.\n\nhand and receipt on the other.", "canonical_name": "KANIA"}}, {"text": "Similarly cases which deal with the liability of the assessee under the Indian Income-tax Act", "label": "STATUTE", "start_char": 18535, "end_char": 18628, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "sections 23 and 24", "label": "PROVISION", "start_char": 21468, "end_char": 21486, "source": "regex", "metadata": {"statute": null}}, {"text": "sections 23 and 24", "label": "PROVISION", "start_char": 22655, "end_char": 22673, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 22831, "end_char": 22840, "source": "regex", "metadata": {"statute": null}}, {"text": "section 21", "label": "PROVISION", "start_char": 22889, "end_char": 22899, "source": "regex", "metadata": {"statute": null}}, {"text": "section 21", "label": "PROVISION", "start_char": 23387, "end_char": 23397, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 23457, "end_char": 23467, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 23486, "end_char": 23500, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "FAZL", "label": "JUDGE", "start_char": 23997, "end_char": 24001, "source": "ner", "metadata": {"in_sentence": "FAZL Au .J.-I agree fully with the judgment of Mahajan J.\natanjali sastri J.\n\nPATANJALI SASTRI J.-This is an appeal from a judgment of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate-\n\nTribunal, Bombay, under section 66 (1) of the Indian 1950 Income-tax Act, 1922, read with section 21 of the Co11-u1iission-er Excess Profits Tax Act, 1940.", "canonical_name": "FAZL ALI"}}, {"text": "Income-tax Appellate-\n\nTribunal, Bombay", "label": "COURT", "start_char": 24202, "end_char": 24241, "source": "ner", "metadata": {"in_sentence": "FAZL Au .J.-I agree fully with the judgment of Mahajan J.\natanjali sastri J.\n\nPATANJALI SASTRI J.-This is an appeal from a judgment of the High Court of Judicature at Bombay upon a reference made by the Income-tax Appellate-\n\nTribunal, Bombay, under section 66 (1) of the Indian 1950 Income-tax Act, 1922, read with section 21 of the Co11-u1iission-er Excess Profits Tax Act, 1940."}}, {"text": "section 66", "label": "PROVISION", "start_char": 24249, "end_char": 24259, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act, 1922", "label": "STATUTE", "start_char": 24283, "end_char": 24303, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 21", "label": "PROVISION", "start_char": 24315, "end_char": 24325, "source": "regex", "metadata": {"linked_statute_text": "Income-tax Act, 1922", "statute": "Income-tax Act, 1922"}}, {"text": "Excess Profits Tax Act, 1940", "label": "STATUTE", "start_char": 24351, "end_char": 24379, "source": "regex", "metadata": {}}, {"text": "section 26", "label": "PROVISION", "start_char": 24798, "end_char": 24808, "source": "regex", "metadata": {"linked_statute_text": "Excess Profits Tax Act, 1940", "statute": "Excess Profits Tax Act, 1940"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 24818, "end_char": 24832, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Ahmedbhai Umarbhai & Co.", "label": "ORG", "start_char": 24852, "end_char": 24876, "source": "ner", "metadata": {"in_sentence": "The assessees are resident in Bombay and are registered for income-tax purposes, under section 26-A of the Income-tax Act, under the name of Ahmedbhai Umarbhai & Co., while their branch at Raichur is run under the name of Ahmed & Sons."}}, {"text": "Ahmed & Sons", "label": "ORG", "start_char": 24933, "end_char": 24945, "source": "ner", "metadata": {"in_sentence": "The assessees are resident in Bombay and are registered for income-tax purposes, under section 26-A of the Income-tax Act, under the name of Ahmedbhai Umarbhai & Co., while their branch at Raichur is run under the name of Ahmed & Sons."}}, {"text": "31st October, 1940", "label": "DATE", "start_char": 25153, "end_char": 25171, "source": "ner", "metadata": {"in_sentence": "For the chargeable .accounting period commencing from 31st October, 1940, .and ending on 20th October, 1941, the assessees were assessed to excess profits tax in a sum of Rs."}}, {"text": "20th October, 1941", "label": "DATE", "start_char": 25188, "end_char": 25206, "source": "ner", "metadata": {"in_sentence": "For the chargeable .accounting period commencing from 31st October, 1940, .and ending on 20th October, 1941, the assessees were assessed to excess profits tax in a sum of Rs."}}, {"text": "21st October,\n\n1941", "label": "DATE", "start_char": 25668, "end_char": 25687, "source": "ner", "metadata": {"in_sentence": "For the succeeding period commencing from 21st October,\n\n1941, and ending on 8th November, 1942, a tax of Rs- 2,55,485-1-0 computed on the same basis, was also imposed ."}}, {"text": "8th November, 1942", "label": "DATE", "start_char": 25703, "end_char": 25721, "source": "ner", "metadata": {"in_sentence": "For the succeeding period commencing from 21st October,\n\n1941, and ending on 8th November, 1942, a tax of Rs- 2,55,485-1-0 computed on the same basis, was also imposed ."}}, {"text": "H.aichur", "label": "GPE", "start_char": 25989, "end_char": 25997, "source": "ner", "metadata": {"in_sentence": "The assessees contended that a part of the profits derived from sales in British India of the oil manufactured at Raichur was attributable to the manufacturing operations at H.aichur which are an essential part of their business, and that such profits must be excluded from the assessment, under the third proviso to section 5 of the Excess Profits Tax Act, as having accrued or arisen in the Hyderabad State."}}, {"text": "section 5", "label": "PROVISION", "start_char": 26132, "end_char": 26141, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Appellate Tribunal, Conunissioner of Income-tax, Bombay", "label": "COURT", "start_char": 26512, "end_char": 26578, "source": "ner", "metadata": {"in_sentence": "After unsuccessful appeals to the Appellate\n\n1950 Assistant Commissioner, Bombay, the assessees carried the matter to the Income-tax Appellate Tribunal, Conunissioner of Income-tax, Bombay, but with no better result."}}, {"text": "Ahmcdbl•ai High Court at Bombay", "label": "COURT", "start_char": 26735, "end_char": 26766, "source": "ner", "metadata": {"in_sentence": "The assessees Bomhay thereupon applied to the Tribunal requiring them to •· draw up a statement of the case and refer it to the Ahmcdbl•ai High Court at Bombay for decision of the question of U:aarbT1ai & Co. l d h ' 1 h _ aw mvolve , and t e Tnbunal according y stated t e\n\nPatanja!i sastri J. case and referred the following question: \"v\\'hether\n\non the facts stated above income accruing or arising to the assessees on sales made in British India of goods manufactured in Raichur situated outside British India has been rightly held by the Tribunal as income accruing or arising in British India and was liable to excess profits tax.\""}}, {"text": "Patanja!i sastri", "label": "JUDGE", "start_char": 26882, "end_char": 26898, "source": "ner", "metadata": {"in_sentence": "The assessees Bomhay thereupon applied to the Tribunal requiring them to •· draw up a statement of the case and refer it to the Ahmcdbl•ai High Court at Bombay for decision of the question of U:aarbT1ai & Co. l d h ' 1 h _ aw mvolve , and t e Tnbunal according y stated t e\n\nPatanja!i sastri J. case and referred the following question: \"v\\'hether\n\non the facts stated above income accruing or arising to the assessees on sales made in British India of goods manufactured in Raichur situated outside British India has been rightly held by the Tribunal as income accruing or arising in British India and was liable to excess profits tax.\"", "canonical_name": "PATANJALI SASTRI"}}, {"text": "Raic:hur", "label": "GPE", "start_char": 28081, "end_char": 28089, "source": "ner", "metadata": {"in_sentence": "The question as reframed is also open to similar criticism, for, it assumes that the manufacture of oil at Raic:hur is \" a part of the business\" of the assessees, whereas the Commissioner of Income-tax has been seriously contesting that position as the judgment under appeal itself shows."}}, {"text": "section 2", "label": "PROVISION", "start_char": 28462, "end_char": 28471, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 4", "label": "PROVISION", "start_char": 28738, "end_char": 28747, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 5", "label": "PROVISION", "start_char": 28982, "end_char": 28991, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 29395, "end_char": 29404, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 29412, "end_char": 29439, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 30006, "end_char": 30020, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 4", "label": "PROVISION", "start_char": 31051, "end_char": 31060, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 31176, "end_char": 31185, "source": "regex", "metadata": {"statute": null}}, {"text": "Patanjali Sastri", "label": "JUDGE", "start_char": 31271, "end_char": 31287, "source": "ner", "metadata": {"in_sentence": "Tax Act, and the duty would be leviable on the\n\nPatanjali Sastri J. pro1 fitds dofh the said.", "canonical_name": "PATANJALI SASTRI"}}, {"text": "section 2", "label": "PROVISION", "start_char": 31429, "end_char": 31438, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 31851, "end_char": 31860, "source": "regex", "metadata": {"statute": null}}, {"text": "Munshi", "label": "OTHER_PERSON", "start_char": 32683, "end_char": 32689, "source": "ner", "metadata": {"in_sentence": "Both these propositions were held to be untenable by the learned Judges of the High Court and were contested before us by Mr. Munshi on behalf of the assessees."}}, {"text": "section 5", "label": "PROVISION", "start_char": 33540, "end_char": 33549, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 33897, "end_char": 33906, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 33944, "end_char": 33954, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 33969, "end_char": 33983, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 21", "label": "PROVISION", "start_char": 34088, "end_char": 34098, "source": "regex", "metadata": {"statute": null}}, {"text": ".India", "label": "GPE", "start_char": 34839, "end_char": 34845, "source": "ner", "metadata": {"in_sentence": "1) All income, profits or gains accruing or arising, whether directly or indirectly, through or from any business connection in British India, or through or from any property in British India, or\n\nthroug~ or from any asset or source of income in British India, or through or from any money lent at interest and brought into British India in cash or in kind, shall be deemed to be income accruing or arising withinBritish."}}, {"text": "section 18", "label": "PROVISION", "start_char": 35356, "end_char": 35366, "source": "regex", "metadata": {"statute": null}}, {"text": "Umarbhai & Co.", "label": "ORG", "start_char": 35819, "end_char": 35833, "source": "ner", "metadata": {"in_sentence": "Ahm_dbluri It will be seen that these provisions, read together, Umarbhai & Co. lay down a rule of apportionment for ascertaining the\n\nPat,,,,1,-;;,.-;\"'''' J. profits of a business."}}, {"text": "section 5", "label": "PROVISION", "start_char": 36334, "end_char": 36343, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 36533, "end_char": 36543, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income-tax Act or the Excess Profits Tax Act", "label": "STATUTE", "start_char": 37542, "end_char": 37593, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Mathias", "label": "OTHER_PERSON", "start_char": 37630, "end_char": 37637, "source": "ner", "metadata": {"in_sentence": "It is clear that the oil manufactured at Raichur cannot itself be regarded as income, profits or gains within the meaning of the • Indian Income-tax Act or the Excess Profits Tax Act any more th<:1n the green coffee in Mathias' case (1) which the Privy Council held could not be so regarded."}}, {"text": "Umar/Jhm t, Co.\n\nRaichur", "label": "ORG", "start_char": 38188, "end_char": 38212, "source": "ner", "metadata": {"in_sentence": "from the sales at Bombay of the product of the mill at Umar/Jhm t, Co.\n\nRaichur, arose in whole or in part a.t Raichur?"}}, {"text": "Chunilal lvfehta", "label": "OTHER_PERSON", "start_char": 38306, "end_char": 38322, "source": "ner", "metadata": {"in_sentence": "Asp tan 7astri J pointed out by the Privy Council in Chunilal lvfehta's a ia'. . .", "canonical_name": "Chunilal lvfehta"}}, {"text": "Kirk", "label": "OTHER_PERSON", "start_char": 38935, "end_char": 38939, "source": "ner", "metadata": {"in_sentence": "The learned Judges in the Court below solved the problem by invoking what they conceived to be the general principle underlying the decision in Kirk's case ( 2 ), namely, the principle of apportioning profits r' as between the different processes employed in producing those profits and the different places where they are employed."}}, {"text": "Calcutta High Court", "label": "COURT", "start_char": 39174, "end_char": 39193, "source": "ner", "metadata": {"in_sentence": "The learned Judges disagreed with the view of the Calcutta High Court in Re Mohanpura Tea Co. (s) that the profits accrue or arise only when the goods are sold and at the place where they are sold, and that the decision in Kirk's case ( 2 ) laid down no principle of general application but proceeded on the language of an Australian statute."}}, {"text": "Mohanpura Tea Co.", "label": "ORG", "start_char": 39200, "end_char": 39217, "source": "ner", "metadata": {"in_sentence": "The learned Judges disagreed with the view of the Calcutta High Court in Re Mohanpura Tea Co. (s) that the profits accrue or arise only when the goods are sold and at the place where they are sold, and that the decision in Kirk's case ( 2 ) laid down no principle of general application but proceeded on the language of an Australian statute."}}, {"text": "section 42", "label": "PROVISION", "start_char": 41610, "end_char": 41620, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 41628, "end_char": 41642, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 42", "label": "PROVISION", "start_char": 41837, "end_char": 41847, "source": "regex", "metadata": {"statute": null}}, {"text": "Bombay High Court", "label": "COURT", "start_char": 43074, "end_char": 43091, "source": "ner", "metadata": {"in_sentence": "A contrary view has, no doubt, been expressed by a Division Bench of the Bombay High Court in Commissioner of Income-tax v.\n\nWetern India Life Insurance Co. Ltd. ( t)."}}, {"text": "Parliament", "label": "ORG", "start_char": 43736, "end_char": 43746, "source": "ner", "metadata": {"in_sentence": "As pointed out by the Privy Council in Ba/raj Kunwar v. Jagatpal Singh( 2 ), marginal notes in an Indian statute, as in an Act of Parliament, cannot be referred to for the purpose of construing the statute, and it may be mentioned in this connection that the marginal note relied on has since been replaced by the words \" Income deemed to accrue or arise within British India,\" which makes it clear that the main object of sub-section (1) wa5 to define that expression [see section 12 (a) of Act XXII of 1947]."}}, {"text": "section 12", "label": "PROVISION", "start_char": 44080, "end_char": 44090, "source": "regex", "metadata": {"statute": null}}, {"text": "Profits Tax Act", "label": "STATUTE", "start_char": 45161, "end_char": 45176, "source": "regex", "metadata": {}}, {"text": "Chunilal Mehta", "label": "OTHER_PERSON", "start_char": 45447, "end_char": 45461, "source": "ner", "metadata": {"in_sentence": "On behalf of the respondent, Mr. Munshi called attention to certain observations of the Privy Council\n\nin Chunilal Mehta' s case ( 1 ) as supporting his contention that, although all the operations of a business must be completed before profit is received, the accrual of the profits begins with the first operation and continues cumulatively till the goods are finally sold, and that, therefore, the expression \"accruing or arising in\" a place must be applied distributively to the different operations and the places where such operations are carried out.", "canonical_name": "Chunilal lvfehta"}}, {"text": "Liverpool", "label": "GPE", "start_char": 47048, "end_char": 47057, "source": "ner", "metadata": {"in_sentence": "Their Lordships were dealing with a case where the .assessee, resident in Bombay, derived profits from speculative contracts for purchase and sale of commodities carried out through brokers in various foreign markets such as Liverpool; London and New York."}}, {"text": "London", "label": "GPE", "start_char": 47059, "end_char": 47065, "source": "ner", "metadata": {"in_sentence": "Their Lordships were dealing with a case where the .assessee, resident in Bombay, derived profits from speculative contracts for purchase and sale of commodities carried out through brokers in various foreign markets such as Liverpool; London and New York."}}, {"text": "New York", "label": "GPE", "start_char": 47070, "end_char": 47078, "source": "ner", "metadata": {"in_sentence": "Their Lordships were dealing with a case where the .assessee, resident in Bombay, derived profits from speculative contracts for purchase and sale of commodities carried out through brokers in various foreign markets such as Liverpool; London and New York."}}, {"text": "Patrmjati sastri", "label": "JUDGE", "start_char": 47609, "end_char": 47625, "source": "ner", "metadata": {"in_sentence": "v.\n\nJt is with reference to such transactions which Alimcdbliai c:marbhai l; Co. individually contributed to the surplus arising in the various places abroad, that their Lordships spoke Patrmjati sastri J. of the profits accruing or arising distributively and not in a single place."}}, {"text": "Provincial Tax Commission", "label": "RESPONDENT", "start_char": 48308, "end_char": 48333, "source": "ner", "metadata": {"in_sentence": "Reference was also made to a recent decision of the same Tribunal in International Harvester Co. of Canada\n\nv. The Provincial Tax Commission ( 1 ) • The case arose out of the assessment of the profits of a non-resident to income-tax, under a provincial Income-tax Act in respect of the profits arising from the sale within the province of goods manufactured outside the province."}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 48446, "end_char": 48460, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Their Lordships referred to other provisions of the Act", "label": "STATUTE", "start_char": 49036, "end_char": 49091, "source": "regex", "metadata": {}}, {"text": "Ahmedhlwi", "label": "GPE", "start_char": 49711, "end_char": 49720, "source": "ner", "metadata": {"in_sentence": "v. comity which naturally prevails between one province Ahmedhlwi and another.\""}}, {"text": "L'niarbhai & Co.", "label": "ORG", "start_char": 49775, "end_char": 49791, "source": "ner", "metadata": {"in_sentence": "Referring to Kirk's case(') their Lord- L'niarbhai & Co. h k d h 1 h h h d s rps remar e \"t at at oug t e sections un er con- PMtanjali sastri J. sideration in Kirk's case ( 1 ) differed in their language from the provisions which their Lordships were considering, the reasoning which appears in the judgment in that case was helpful to the appellants' contention in the present case.\""}}, {"text": "Bombay City", "label": "GPE", "start_char": 50739, "end_char": 50750, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-This is an appeal by the Commissioner of Income-tax, Bombay City, from the judgment of the High Court of Judicature at Bombay upon a case stated by the Income-tax Appellate Tribunal under the provisions of section 66 (1) of the Indian Incometax Act, 1922, and it raises a question as to the liability of the respondent, Messrs. Ahmedbhai Umarbhai & Co., for excess profits tax."}}, {"text": "section 66", "label": "PROVISION", "start_char": 50892, "end_char": 50902, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Incometax Act, 1922", "label": "STATUTE", "start_char": 50914, "end_char": 50940, "source": "regex", "metadata": {}}, {"text": "Ahmedbhai Umarbhai & Co.", "label": "RESPONDENT", "start_char": 51014, "end_char": 51038, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-This is an appeal by the Commissioner of Income-tax, Bombay City, from the judgment of the High Court of Judicature at Bombay upon a case stated by the Income-tax Appellate Tribunal under the provisions of section 66 (1) of the Indian Incometax Act, 1922, and it raises a question as to the liability of the respondent, Messrs. Ahmedbhai Umarbhai & Co., for excess profits tax.", "canonical_name": "AHMEDBHAI UMARBHAI & CO., BOMBAY"}}, {"text": "section 4", "label": "PROVISION", "start_char": 51100, "end_char": 51109, "source": "regex", "metadata": {"linked_statute_text": "the Indian Incometax Act, 1922", "statute": "the Indian Incometax Act, 1922"}}, {"text": "27th March, 1944", "label": "DATE", "start_char": 51727, "end_char": 51743, "source": "ner", "metadata": {"in_sentence": "By an order dated 27th March, 1944, the."}}, {"text": "28th March, 1944", "label": "DATE", "start_char": 52241, "end_char": 52257, "source": "ner", "metadata": {"in_sentence": "By another order dated 28th March, 1944 the ame officer assessed the firm to excess profits tax in a sum of Rs."}}, {"text": "21st October, 1941", "label": "DATE", "start_char": 52396, "end_char": 52414, "source": "ner", "metadata": {"in_sentence": "2,55,485-1-0 for the chargeable accounting period commencing from 21st October, 1941 and ending on 8th November, 1942 on the business income of Rs."}}, {"text": "section 5", "label": "PROVISION", "start_char": 53522, "end_char": 53531, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian State", "label": "GPE", "start_char": 54116, "end_char": 54128, "source": "ner", "metadata": {"in_sentence": "This order of the High Court is being contested in the present appeal and it has been urged that as regards the oil manufactured in Raichur but sold in British India, no profits accrued or arose in the Indian State, but the profits accrued or arose in British India and are subject to excess profits tax."}}, {"text": "section 5", "label": "PROVISION", "start_char": 54312, "end_char": 54321, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 5", "label": "PROVISION", "start_char": 54674, "end_char": 54683, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 55033, "end_char": 55042, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 55050, "end_char": 55077, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 5", "label": "PROVISION", "start_char": 55613, "end_char": 55622, "source": "regex", "metadata": {"linked_statute_text": "the Indian Income-tax Act, 1922", "statute": "the Indian Income-tax Act, 1922"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 55952, "end_char": 55966, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Section 5", "label": "PROVISION", "start_char": 56057, "end_char": 56066, "source": "regex", "metadata": {"linked_statute_text": "the Indian Income-tax Act, 1922", "statute": "the Indian Income-tax Act, 1922"}}, {"text": "British India or are deemed under -the Indian Income-tax Act", "label": "STATUTE", "start_char": 56882, "end_char": 56942, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 42", "label": "PROVISION", "start_char": 57484, "end_char": 57494, "source": "regex", "metadata": {"linked_statute_text": "British India or are deemed under -the Indian Income-tax Act", "statute": "British India or are deemed under -the Indian Income-tax Act"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 57509, "end_char": 57523, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 42", "label": "PROVISION", "start_char": 57707, "end_char": 57717, "source": "regex", "metadata": {"linked_statute_text": "British India or are deemed under -the Indian Income-tax Act", "statute": "British India or are deemed under -the Indian Income-tax Act"}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 57725, "end_char": 57739, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "British.", "label": "GPE", "start_char": 57935, "end_char": 57943, "source": "ner", "metadata": {"in_sentence": "the profits and gains of the business deemed under this section to accrue or arise in British."}}, {"text": "section 42", "label": "PROVISION", "start_char": 58139, "end_char": 58149, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 58161, "end_char": 58175, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Alunedbhai U111arbhai & Co.", "label": "JUDGE", "start_char": 58283, "end_char": 58310, "source": "ner", "metadata": {"in_sentence": "Under the second proviso by reason of the application of section 42 (3) of the Income-tax Act, if the manufacturing business of the assessee was in British\n\nCo11111iissioncr of brco11ic-tax,\n\nBouibay\n\nAlunedbhai U111arbhai & Co.\n\nf.IallajanJ,\n\nIndia and all his sales took place in Raichur, then excess profits tax could only be chargeable on such profits as would really be attributable to his manufacturing operations in British India and the manufacturing operations would be treated as part of the business of the assessee under the proviso.", "canonical_name": "Alunedb!tai U11zarbhai & Co."}}, {"text": "section 2", "label": "PROVISION", "start_char": 60032, "end_char": 60041, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 61378, "end_char": 61387, "source": "regex", "metadata": {"statute": null}}, {"text": "section 5", "label": "PROVISION", "start_char": 61523, "end_char": 61532, "source": "regex", "metadata": {"statute": null}}, {"text": "Mysore", "label": "GPE", "start_char": 61836, "end_char": 61842, "source": "ner", "metadata": {"in_sentence": "In other wor1:•-tax,\n\nBo111hay\n\nAli1ucdbhai U111arb/1ai l; Ca ..\n\nMalirrjau J.\n\nCouullissioucr of lncontc-tax,\n\nBo111'1ay\n\nv Ah11icd!JJ1ai Untarbltai & Co.\n\n.;"}}, {"text": "section 42", "label": "PROVISION", "start_char": 72422, "end_char": 72432, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 72447, "end_char": 72461, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 5", "label": "PROVISION", "start_char": 72520, "end_char": 72529, "source": "regex", "metadata": {"statute": null}}, {"text": "faxse", "label": "OTHER_PERSON", "start_char": 72614, "end_char": 72619, "source": "ner", "metadata": {"in_sentence": "In Commissioners of Inland Revenue v. Maxse (1 ),\n\nfaxse purchased a monthly magazine for £ 1,500-and was the sole proprietor, editor and publisher thereof."}}, {"text": "Maxse", "label": "OTHER_PERSON", "start_char": 72864, "end_char": 72869, "source": "ner", "metadata": {"in_sentence": "Before thi> war Maxse wrote a large part of each number, and, though some of the matter was contributed by others, the sales were largely due to the popularity of his own writings."}}, {"text": "May 31, 1915", "label": "DATE", "start_char": 73234, "end_char": 73246, "source": "ner", "metadata": {"in_sentence": "Having been assessed to excess profits duty for the year ending May 31, 1915, he appealed to the General Income Tax Commissioners and contended that the profits were earned by reason of his personal qualifications, that the capital expenditure was small in comparison with the personal qualifications required to earn the profits, and that he was exempt from duty by virtue of para."}}, {"text": "section 39", "label": "PROVISION", "start_char": 73561, "end_char": 73571, "source": "regex", "metadata": {"statute": null}}, {"text": "Sankey", "label": "JUDGE", "start_char": 73698, "end_char": 73704, "source": "ner", "metadata": {"in_sentence": "Th~ General Commissioners having discharged the assessment, their decision was reversed by Sankey J. who held that Maxse was carrying on a commercial business and not a profession within para. ("}}, {"text": "section 5", "label": "PROVISION", "start_char": 75393, "end_char": 75402, "source": "regex", "metadata": {"statute": null}}, {"text": "Saskatchewan", "label": "GPE", "start_char": 76011, "end_char": 76023, "source": "ner", "metadata": {"in_sentence": "In that case it was argiled that when money was received by the appellant in Saskatchewan as a result of a sale in Saskatchewan the whole of the net profit on the sale arose from the business of the appellant in Saskatchewan; and no apportionment was necessary:."}}, {"text": "Conituissfotter of Income-tux,\n\nBombay", "label": "RESPONDENT", "start_char": 76264, "end_char": 76302, "source": "ner", "metadata": {"in_sentence": "Conituissfotter of Income-tux,\n\nBombay\n\nAhmedbhai Umarbhai Ii- Co.\n\nMa/iajanJ,'\n\nCo1n11iissioner of f11co111e-tax,\n\nHo1nbay v.\n\nAhnt('dbliai U11tarbhai & Co,\n\nAfahajan J.\n\nwas described by their Lordships as fallacious and untenable."}}, {"text": "Ahmedbhai Umarbhai Ii- Co.", "label": "RESPONDENT", "start_char": 76304, "end_char": 76330, "source": "ner", "metadata": {"in_sentence": "Conituissfotter of Income-tux,\n\nBombay\n\nAhmedbhai Umarbhai Ii- Co.\n\nMa/iajanJ,'\n\nCo1n11iissioner of f11co111e-tax,\n\nHo1nbay v.\n\nAhnt('dbliai U11tarbhai & Co,\n\nAfahajan J.\n\nwas described by their Lordships as fallacious and untenable.", "canonical_name": "AHMEDBHAI UMARBHAI & CO., BOMBAY"}}, {"text": "Lyman Duff", "label": "JUDGE", "start_char": 76597, "end_char": 76607, "source": "ner", "metadata": {"in_sentence": "Their Lordships quoted with approval the following observations from the minority judgment of Sir Lyman Duff C. J.\n\nThe quotation is in these terms:-\n\n\"Nowhere does the statute authorise the Province of Saskatchewan to tax' a manufacturing company, situated as the appellant company is, in respect of the whole of the profits received by the company in Saskatchewan."}}, {"text": "Ontario", "label": "GPE", "start_char": 77060, "end_char": 77067, "source": "ner", "metadata": {"in_sentence": "It is not the profits received in Saskatchewan that are taxable, it is the profits arising from its business in Saskatchewan not the profits arising from the company's manufacturing business in Ontario and from the company's operations in Saskatchewan taken together, but the profits arising from the company's operations in Saskatchewan.\""}}, {"text": "Seta", "label": "OTHER_PERSON", "start_char": 78055, "end_char": 78059, "source": "ner", "metadata": {"in_sentence": "Mr. Seta:lvad for the Commissioner placed reliance on a number of cases, inter alia, The Board of Revenue\n\nv. The Madras Export Company('), ]iwan Das v.\n\nIncome-tax Commissioner, Lahore(~).", "canonical_name": "Setalvad"}}, {"text": "Port Said Salt Association Limited", "label": "ORG", "start_char": 78247, "end_char": 78281, "source": "ner", "metadata": {"in_sentence": "In re Port Said Salt Association Limited (3 ), and Sudalaimani Nadar\n\nv. Income-tax Commissioner (4 )."}}, {"text": "section 4", "label": "PROVISION", "start_char": 80442, "end_char": 80451, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income-tax Act, 1922", "label": "STATUTE", "start_char": 80476, "end_char": 80503, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Alunedb!tai U11zarbhai & Co.", "label": "RESPONDENT", "start_char": 80767, "end_char": 80795, "source": "ner", "metadata": {"in_sentence": "B01uba y v.\n\nAlunedb!tai U11zarbhai & Co.\n\nMa/zaja11 ].", "canonical_name": "Alunedb!tai U11zarbhai & Co."}}, {"text": "Al11ncdbliai", "label": "RESPONDENT", "start_char": 80861, "end_char": 80873, "source": "ner", "metadata": {"in_sentence": "Coi11111issioncr of /11co111c-fax,\n\n1Jo111bay\n\nv. 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(3) Derived from lands of the Crown held under lease or licence issued by or on behalf of the Crown. ("}}, {"text": "New South Wales", "label": "GPE", "start_char": 99900, "end_char": 99915, "source": "ner", "metadata": {"in_sentence": "4) Arising or accruing to any person wheresoever residing from any kind of property except from land subject to land tax as hereinafter specifically excepted, or from any other source whatsoever in New South Wales not included in the preceding sub-sections.\""}}, {"text": "New South Wales Court", "label": "COURT", "start_char": 99980, "end_char": 100001, "source": "ner", "metadata": {"in_sentence": "It was held by the New South Wales Court that the assessee was not liable to tax under any of the above provisions."}}, {"text": "Supreme Court", "label": "COURT", "start_char": 100724, "end_char": 100737, "source": "ner", "metadata": {"in_sentence": "All these processes are necessary stages which terminate in money, and the income is the money resulting less the expenses attendant on all the stages ...... The fallacy of the judgment of the Supreme Court in this and in Tindal's case is in leaving out of sight the initial stages, and fastening their attention\n\n111 [1 DJQJ A.C. 588."}}, {"text": "Tindal", "label": "OTHER_PERSON", "start_char": 100753, "end_char": 100759, "source": "ner", "metadata": {"in_sentence": "All these processes are necessary stages which terminate in money, and the income is the money resulting less the expenses attendant on all the stages ...... 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Income-tax Commissioner, Lahore (4)."}}, {"text": "Kashmir", "label": "GPE", "start_char": 114191, "end_char": 114198, "source": "ner", "metadata": {"in_sentence": "In that case, the question arose as to whether a person residing and carrying on business in British India and purchasing goods there which were sold in Kashmir was liable to assessment on the ground that a part of the profits accrued within British India."}}, {"text": "section 42", "label": "PROVISION", "start_char": 115028, "end_char": 115038, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 115048, "end_char": 115062, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Ray", "label": "JUDGE", "start_char": 115898, "end_char": 115901, "source": "ner", "metadata": {"in_sentence": "reviewed by a Division B.ench of the Oriss':l High COurt, consisting of Chief Justice Ray and 'Narasimham J. ij1 Rahim v. Commissioner oj Income- .tax (le)."}}, {"text": "Narasimham", "label": "JUDGE", "start_char": 115907, "end_char": 115917, "source": "ner", "metadata": {"in_sentence": "reviewed by a Division B.ench of the Oriss':l High COurt, consisting of Chief Justice Ray and 'Narasimham J. ij1 Rahim v. Commissioner oj Income- .tax (le)."}}, {"text": "J.Iuklzerjc11", "label": "JUDGE", "start_char": 116942, "end_char": 116955, "source": "ner", "metadata": {"in_sentence": "1950\n\nCot11111issioucr of l11co111e:t<1x,\n\nBombay_ '\n\nAhmerlbli a i Vmarbhai &- Co.\n\n, U11kl1crjca J.\n\nContmissiancr of Inc01ne-tax,\n\nBmnbay\n\nAhniedbhai Umarbhai & Co.\n\nJ.Iuklzerjc11 J.\n\nwas so negligible a part of the operation of the business."}}, {"text": "section 42", "label": "PROVISION", "start_char": 118172, "end_char": 118182, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 118199, "end_char": 118213, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "U.S. A.", "label": "GPE", "start_char": 118384, "end_char": 118391, "source": "ner", "metadata": {"in_sentence": "In that case, a company incorporated in U.S. A. and having its Head Office in New York, and Branch Offices, Agencies and factories in Calcutta, London, etc."}}, {"text": "Calcutta", "label": "GPE", "start_char": 118478, "end_char": 118486, "source": "ner", "metadata": {"in_sentence": "In that case, a company incorporated in U.S. A. and having its Head Office in New York, and Branch Offices, Agencies and factories in Calcutta, London, etc."}}, {"text": "America", "label": "GPE", "start_char": 118541, "end_char": 118548, "source": "ner", "metadata": {"in_sentence": "pur~· chased goods in India for sale in America."}}, {"text": "section 33", "label": "PROVISION", "start_char": 118821, "end_char": 118831, "source": "regex", "metadata": {"statute": null}}, {"text": "section 42", "label": "PROVISION", "start_char": 118983, "end_char": 118993, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 119005, "end_char": 119019, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Rangoon", "label": "OTHER_PERSON", "start_char": 119077, "end_char": 119084, "source": "ner", "metadata": {"in_sentence": "The• - same line of reasonng was adopted by the Rangoon."}}, {"text": "section 42", "label": "PROVISION", "start_char": 119264, "end_char": 119274, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 119282, "end_char": 119296, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "United States of America", "label": "GPE", "start_char": 119563, "end_char": 119587, "source": "ner", "metadata": {"in_sentence": "In the last case, the assessee company which was incorporated in the United States of America, was carrying on in America the business of manufacturing carpets."}}, {"text": "section 42", "label": "PROVISION", "start_char": 119809, "end_char": 119819, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 119831, "end_char": 119845, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 42", "label": "PROVISION", "start_char": 119958, "end_char": 119968, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 119980, "end_char": 119994, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 42", "label": "PROVISION", "start_char": 120182, "end_char": 120192, "source": "regex", "metadata": {"statute": null}}, {"text": "Incometax Act, 1922", "label": "STATUTE", "start_char": 120200, "end_char": 120219, "source": "regex", "metadata": {}}, {"text": "nder the New South Wales Act", "label": "STATUTE", "start_char": 120851, "end_char": 120879, "source": "regex", "metadata": {}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 121648, "end_char": 121662, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Mangalore", "label": "GPE", "start_char": 122029, "end_char": 122038, "source": "ner", "metadata": {"in_sentence": "In that case, the assessee, who was a resident of Mangalore in British India, owned coffee plantations in Mysore."}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 122458, "end_char": 122472, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Muherji", "label": "JUDGE", "start_char": 123704, "end_char": 123711, "source": "ner", "metadata": {"in_sentence": "It was pointed out by Muherji J. in Re Rogers Pyatt Shellac and Co. v. Secretary of State for India ( 1 ) that etymologically the word \"accrues\" connotes the idea of a growth, addition or increase by way of accession or advantage, while the word \" arises \" suggests the idea of growth or accumulation with a -tangible shape so as to be receivable."}}, {"text": "section 5", "label": "PROVISION", "start_char": 124543, "end_char": 124552, "source": "regex", "metadata": {"statute": null}}, {"text": "Excess Profits Tax Act", "label": "STATUTE", "start_char": 124561, "end_char": 124583, "source": "regex", "metadata": {}}, {"text": "section 42", "label": "PROVISION", "start_char": 126257, "end_char": 126267, "source": "regex", "metadata": {"statute": null}}, {"text": "Income-tax Act", "label": "STATUTE", "start_char": 126275, "end_char": 126289, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 127191, "end_char": 127200, "source": "ner", "metadata": {"in_sentence": "DAS J.-1 substantially agree with the .reasonings given in the judgment just delivered oymy learned brother Mukherjea and concur in dismissing this appeal.", "canonical_name": "MUKHERJEA"}}, {"text": "P.A. Alehta", "label": "LAWYER", "start_char": 127284, "end_char": 127295, "source": "ner", "metadata": {"in_sentence": "Agent for the Appellant: P.A. Alehta."}}, {"text": "Ranjit Singh Narula", "label": "LAWYER", "start_char": 127325, "end_char": 127344, "source": "ner", "metadata": {"in_sentence": "Agent for the Respondents: Ranjit Singh Narula."}}]} {"document_id": "1950_1_391_434_EN", "year": 1950, "text": "S.C.R.\n\n. SUPREME COURT REPORTS 391\n\nNANALAL ZAVER AND ANOTHER\n\nBOMBAY LIFE ASSURANCE CO. LTD.\n\nAND OTHERS.\n\n[SHRI HARILAL KANIA C.J., MEHR CHAND MAHAJAN,\n\nMuKHERJEA and DAS, JJ.]\n\nIndian Companies Act (VII of 1913), s. _ 105-C-Company- Outsidet trying to get control of management by p11rchasing shores\n\n-Issue of further shares-Offer of new shares to es; isting shareholders-Validity of resolution and offer-Company in need of funds-Additional motit1e to pret1ent outsidet getting control-Bona fides of resolution-Scope of s. 105-C.\n\nA company was incorporated with a capital divided into 10,000 shares. After 5,404 shares had been subscribed, the directors of the company, finding that a businessman. who had several other businesses and who was likely to use the funds of this company for his own businesses, was trying to get control of this company by purchasing its shares, resolved to issue the remaining 4,596 shares and qffered . these shares to the existing shareholders in the proportion of four new shares for every five she.res held by them.\n\nTwo of the shareholders of the company instituted .a suit age.inst the company and the directors for the following reliefs: (i) a. declaration that the resolution of the directors and the offer of shares contravened the provisions of section 105.c of the Indian Companies Act, 1913, and was therefore ultra vires and illegal; (ii) a. declaration that the. offer of she.res was not made bona fide or in the interests of the company and was therefore illegal ; a.nd (iii) to restre.in the defenda.nts from allotting any shares in pursue.nee of their offer :\n\nHeld per KANIA C.J., MAHAJAN, MUKHERJEA and DAB JJ.- that inasmuch as the sh!Lres resolved to be issued were offered to the existing shareholders only, and not to any outsider a.nd these shares were also offered to the existing shareholders in proportion to the she.res held by each member without making any discriminatior.<,, between them the two requirements of section 105-C were complied with and the resolution e.nd offer did not contravene tba.t section even though 272 shares remained undistributed as a. result of the offer of four new shares for every five shares.\n\nMay 4.\n\nN anal al Zaver\n\nAnd A1wther\n\nBo1nba y Life Assurance Co,\n\nA.nd Others\n\nIul Others\n\nltlalinja\"l\n\nNanalal Zaver\n\nAnd Anotlu1\n\nBoiirba y Life Asst'1ance Co.\n\nAnd Others\n\nMahajan J.\n\nof further shares in those cases alone where there was\n\nan increase in the nominal capital of the company by recourse to the provisions of section 50 of the Indian Companies Act. It was argued that the phrase \"increase of capital\" has been employed by the legislature in section 50 and some other sections preceding section 105-C with reference only to the nominal capital of a company and' that this expression had not been used with reference to the subscribed capital anywhere in the Act and therefore the scope of section 105-C should be limited to cases where the increase in the capital is brought about under section 50 of the Act and new shares are created and issued by the directors. In Sircar and Sen's Indian Companies Act, 1937 Edn. at page 309 the learned authors observe as follows :-\n\n\" The words •further shares' must be read in conjunction with the words 'decide to increase the capital of the company.' They must mean shares which are issued for the purpose of increasing the capital beyond the authorized capital.\" .\n\nMr. Ghosh on Indian Company Law, 8th Edn. at page 263 has stated as follows :-\n\n\" The object of this new section appears to be to make the salient provisions of Regulation 42 in Table A compulsory. The section as drafted is liable to the construction that whenever the directors !lecide to increase the capital of the company by the issue of further shares, even if it be a part of the authorized capital, the new shares must be first offered to the existing shareholders. But this section should be read in conjunction with clause (a) of section 50 under subsection (2) of which the directors have no power to increase the share capital of the company. Therefore it seems that the words •further shares' mean shares beyond the authorized capital of the company.\"\n\nWhatever might be the opinion expressed by these commentators, the matter has to be decided on the language of the Act itself. As already pointtd out,. the learned counsel for the respondents contended that the above was the correct view as to the scope of the ,\n\n' section. The learned counsel for the appellants however urged that on a proper interpretation of the\n\n...\n\nsection its scope could not be limited only to cases of issue of further shares by creation of new shares by increasing the nominal capital of the company, but that the language employed in the section also included within its ambit cases where there was a further issue of shares by the directors, within the authorized capital. The learned counsel laid considerable emphasis on the expression \" further shares \" used in the section and suggested that these words have been used advisedly instead of the expression \"new shares \" in order to bring within the scope of the section increases in the capital of a company whether within the authorised limit or outside it.\n\nThe third interpretation of the section finds support from the language employed by the legislature in the opening part of the section, wherein it is said : \" Where the directors decide to increase the capital of the company by the issue of further shares ....... \" The directors can only decide to increase the capital at their own initiative when they issue further shares out of the authorised capital. In no other case can the directors themselves decide as to the increase in the capital ot a company. Under section 50 the capital can only be increased by a resolution of the company. Once the company has increased the nominal capital, then the directors can issue shares within the new limit. Therefore the authority of the directors, strictly speaking, in respect to the increase of capital is limited to an increase within the authorised limit. They cannot by their own decision increase the nominal cap-ital of the company. In view of this language the third interpretation of the section seems more plausible.\n\nThe expression \"capital of a company \" is an ambiguous phrase and may mean either issued capital or authorized capital according to the context. It has been used in different senses in various parts of the Act. In what sense it has been used in this section is by no means an easy matter to decide, particularly in view of the fact that in spite of the introduction of this ction in the Indian Companies Act in the year 1936r article 42 still remains as one of the articles to be adopted by companies if they do not choose otherwise 51\n\nNana/al Zat'el\"\n\nAnd Another\n\nBombay Life Assurance C<>..\n\nA11tl Others\n\nMahaja1'].\n\n!950\n\nNa1ialal Zavcr\n\nAnd Another v.\n\nBoml1a y Life Assurance Co.\n\nAnd Others\n\nMahajan/,\n\nand this refers to cases of increase in the nominal capital of a company. In my opinion, for the purpose of deciding the present case it is not necessary to pronounce on the question as to the precise scope of the section because I consider that on any interpretation of it the appellants' contention has to be negatived. If the interpretation suggested by the learned counsel for the respondents is accepted, then the plaintiffs' contention on the first question fails, because here there has been no increase in the capital of the company under section 50. Conceding however for the sake of argument (but not deciding) that the scope of the section is as it has been contended for by Sir Noshirwan, the question still remains \" To what extent has there been a contravention of its provisions by the directors in the present case.\" So far as I have been able to see, the resolution passed by the directors is in accordance with the provisions of the section and does not injuriously affect the shareholders or the company, and they cannot be said to have any cause of grievance against it.\n\nIn other words, in my opinion, the resolution substantially complies with the provisions of section 105-C of the Indian Companies Act. The directors offered all the new shares to the shareholders in the ratio of 4 to 5, as the shares of the company were held in multiples of five to a larger extent than in any other multiple. The result of fixing this ratio is that 272 shares remain outside the offer. In whatever other proportion the shares were offered, still a few shares were.bound to remain unoffered. If a liberal interpretation is placed on the section, then it has to be held that the directors' resolution substantially complies with its provisions. On the other hand, if a technical and literal interpretation is placed on the section, then the directors were bound to offer the shares in the ratio of 4596/5404 in spite of the practical difficulties that might result in the actual working out of such a proportion, and irrespective also of whatever absurdities or anomalies might thus result. I am of the opinion that the section has to be given a workable construction and a. construction that is businesslike in preference to a literal construction which might lead to a deadlock. In each .\n\ncase it should be seen whether the directors have substantially complied with the provisions of the section or not.\n\nThe basic idea underlying the section is that whatever is given, is given to all the existing shareholders and is distributed equally and equitably between them.\n\nIt cannot be denied that all the shareholders were offered the further shares arid that they were offered equally and equitably. Whatever is the balance remains with the company with the result that the capital remains unincreased to this extent. In such a situation it is difficult to hold that the resolution passed by the directors has contravened the provisions of section 105-C and has caused any detriment or injury either, to the company or to the shareholders. Even if the resolution passed by the directors is held to be in technical breach of the section, as it has caused no injury to anybody, the resolution cannot be held to be void. Under the law as it existed prior to 1936, if a company iecorporated in its Articles of Association article 42 mentioned in the schedule to the Indian Companies Act, then in the case of issua of new shares the directors' discretion was curtailed inasmuch as they were bound to offer these shares in the first instance in proportion as nearly as the circumstances admitted to the amount of the existing shares to the existing shareholders but in all other cases their discretion remained unfettered. It was open to a company not to adopt article 42 and thus fetter the discretion of the directors even in the case of the issue of new capital.\n\nAfter 1936. it has been made obligatory on the directors to give the first option to buy further shares to the existjng shareholders and without any favour to anyone. That being the intent and purpose of the section, it has been fully carried out by the directors in the present instance and has been carried out in a businesslike way because the ratio in which they offered the shares is the ratio which works to the convenience of the largest number of shareholders as the shares of the company are held mostly in multiples of five. If the\n\nshares were issued in any other ratio, that would have created some difficulty in the way of shareholders who held shares in multiples of five and who owned 2, 110\n\nN anal al Z aver\n\nAnd Another\n\nBombay Ufe Assurn1t -; e Co-.\n\nAnd Others.\n\nM alwjan J.\n\n] 950\n\nNanalal Zaver\n\nAnd Another\n\nBo11iba y Life Ass11ran ; e Co.\n\nAnd Others\n\nMahajan}.\n\nshares. They would have been obliged to collect fractions before they could claim a whole share and thus make an application within the time allowed to exercise the option. Where the language of a statute in its ordinary meaning and grammatical construction leads to a manifest contradiction of the apparent purpose of the enactment, or to some inconvenience or absurdity, hardship or injustice, presumably not intended, a construction may be put upon it which modifies the meaning of the words, and even the structure of the sentence. In my opinion, the section when it says \"such. shares shall be offered to the members \" should be construed liberally and not literally, as such an interpretation would make th~ section workable and would not in any way affect its intent and purpose, the phrase \"such. shares\" meaning those shares which admit of being so offered in a businesslike way.\n\nIt was argued that a liberal interpretatibn of the section would result in the directors allottii:ig the balance of shares remaining out of the further shares unoffered to their own friends and relations and it would operate to the detriment of the other shareholders. In this connection reference was made to para 8 of the resolution above mentioned. In my opinion this paragraph does not bear out the contention of the appellants because it has reference only 'to shares not applied for, obviously shares not offered and which could not be taken up by the shareholders cannot fall under that description. That paragraph applies only to cases where the shares could be applied for and then no application was made in respect of them. It was not disputed that the directors in., the present case had not sold these shares to any one and that these have remained unissued. It was urged strongly by the learned counsel for the appellants that the section being imperative and its language being unambiguous, the Court was bound to place a literal interpretation on it and 'the argument of. hardship or inconvenience should not weigh with it. It was further suggested that the directors could always give effect to.,\n\nthe provisions of the section by increasing the capital in a manner and to the extent that the further shares\n\n<:ould be offered to the shareholders in such a proportion that all the shares offered could be taken up by them. In other words, it was contended that the section not only fetters the powers of the directors in the matt- er of sale of shares but it also restricts their discretion in the matter of increase of capital and as to the number of further shares. This contention, if accepted, would mean that the legislature by enacting section\n\n105-C indirectly enjoined on the directors that when- ever they decide to increase capital by issue of further shares they should make the increase only to such an extent and in a manner as to enable the existing shareholders to take the whole of it. If that was the\n\nintenion of the section, there was nothing easier for the legislature to say so. The section, on the other\n\n1 hand, recognizes that the directors have a discretion in the matter of the increase of capital when it says, \"'' when the directors decide to increase the capital of a company.\" It means that it is within their absolute discretion to take the decision whether to increase the capital or not. It is also within their discretion to say to what limit and to what extent they will increase the -capital. It is also for them to decide how many shares and of what value ±h.ey will issue. Once they have taken their decision, it is then and then only that. section 10sc comes into operation. At that stage they have to offer the new shares to the shareholders and at that stage they can offer them i.J; i a businesslike manner io all of them equitably and equally and if out of the shares offered some cannot be taken up by the shareholders as they do not fit in the ratio in which th~ Offer ha:; been made, the only result isthat those shares Temain unoffered and thus unissued. I am therefore -0f the opinion that the learned Judges of the Court of appeal were right when they held that under section\n\n105-C the shares have to be offered to the existing shareholde1s as nearly as the circumstances would admit and that the section has to be given a businesslike construction and should be construed liberally and\n\ni. that the charge of contravention of section 105-C cannot be levelled against the directors -so long as they .ha, ve not disposed of the unoffered balance contrary tb\n\nN analal Z aver\n\nA11d Another\n\nBombay Life Assurance Co.\n\nA\".d Others\n\nlYlahajan J.\n\nN anal al Z aver\n\nAnd Another\n\nBo111!Jay Life Assrv-t11icc Co.\n\nAnd Others\n\nMaliajanJ.\n\nthe provisions of the section. The result . is that the first contention of the learned counsel stands negatived.\n\nThe next question whether the action of the directors in passing the resolution was not bona fide seems to be concluded by concurrent findings of fact of the\n\nCourts below to the effect that the resolution was passed because the company needed additional funds at the moment when the new issue was decided upon and that the issue of shares was not due solely to the desire on the part of the directors to keep themselves in the saddle.\n\nIt is not the practice of this Court ordinarily to interfere with concurrent conclusions on questions of fact reached in the Courts below unless those conclusions have been reached on extraneous considerations or by violating rules of procedure or by committing any breach of some provision of law : vide Srirnati Bibhabati Devi v. K urnar Rarnendra Narayan Roy ( 1 ).\n\nThe learned counsel for the appellants while conceding that it was not open to him to challenge concurrent findings of fact of the Courts below, urged that the whole case has been looked at by them from an erroneous angle. It was contended that the Courts below had misdirected themselves in their approach to the\n\ndecision of the issue of bonafides. In this connection emphasis was laid on the following observations in the\n\njudgment of the learned Chief Justice and on similar observations occurring elsewhere :-\n\n\"In this particular case it is urged and urged with considerable force that the reason whiCh actuated the directors on the 21st February, 1945, in resolving to issue new shares was the fear that the Singhania group would capture the company and oust the present directors from their vantage point and take control of the company itself. It may be that one of the factors that weighed with the directors was that consideration. It may even be that it weighed with them a great deal.\n\nIt may also be that the directors selected this particular time viz. the 21st February, 1945, for the issue of •\n\nthese shares because of the impending danger of the\n\n(1) 73 I.A. H6.\n\nS.C.R.\n\nSUPREME COURT l<.EPORTS 409\n\nmajority of shares going into the hands of the Singhania group with the necessary consequences. If, with all that, it is established before the Court that in fact on the 21st February, 1945, the company was in need -of funds, that the funds were required for the working of the company, then the Court will not interfere with -the discretion exercised by the directors, because the principle is obvious that if the new shares have been issued because the company needs funds, then it cannot be said that the discretion vested in the directors has been exercised not in the interests of the company or for the purpo$e of the company. It is only when that discretion is exercised solely for the personal ends -of directors, for their personal aggrandisement, for keeping themselves in power, then undoubtedly that discretion cannot be said to have been exercised for -the purpose of or in the interests of the company.\"\n\nReference was also made to the concluding part of the same judgment which runs thus :-\n\n\"Undoubtedly this is a case of high finance and. we have been given a glimpse of what high finance can be and there is great justification in what Mr. Amin .has said as tq the manner in which some of the things were done with regard to the affairs of this company. :But ultimately we must come down to the one short and simple question, was the company in need of funds at the time when the directors decided upon the issue of new shares, and in my opinion there can be no doubt on the evidence led this case that the answer to that question must be in the affirmative. If that be the position all other consideratio_ns can be of no avail or -Of very little avail as against this central fact in this\n\nase and as I am satisfied as to the central fact, I would agree with the learned judge who took the same view and came to the conclusion that the plaintiffs have failed to discharge the burden which lily upon theni of establishing that the issue of new shares was\n\nnot bona fide and not in the interests of and for the benefit of the compan:y.\"\n\nIt was argued that the learned Judges were not -right in thinking that all other considerations were of\n\nN analal Z er-Jet\n\nAnd Another v.\n\nBombay Life Assurance Co.\n\nAnd Others\n\nMahajauJ.\n\nNanalal Zaver\n\n;.lnd Anotlii.:r\n\nBo1111'ay lzfe Assurance Co.\n\nAnd Others\n\nr.talu1ja11 J.\n\nno avail and shoqlg be practically kept out of consideration once it was-established that the company needed funds. It was said that it having been found that at the time of the aforesaid resolution the directors were considerably influenced by the consideration of keep- - ing out the Singhania group from capturing the company, and by the consideration of keeping themselves in the saddle, it should have been held that they were acting with an ulterior motive, and that their decision as to the need of the company for further funds was. vitiated by reason of the ulterior motive.\n\nIt is convenient here to state what the true approach should be to a question of this nature when it arises in a case. It is well settled that in exercisingtheir powers whether general or special, the directors must always bear in mind that they hold a fiduciary position and must exercise their powers for the benefit of the company and for that alone and that the Court can intervene to prevent the abuse of a power whenever such abuse is held proved, but it is equally settled that where directors have a discretion and are bona fate' acting in the exercise of it, it is not the habit of the Court to interfere with them. When the company is in no need of further capital, directors are not entitled to use their power of issuing shares merely for thepurpose of maintaining themselves and their friends in management over the affairs of the company, or merely for the purpose of defeating the wishes of the existing majority of shareholders.\n\nIt appears to me that the learned Judges in the Court below approached the decision of this question in the light of the principles stated above and thecontention of the learned counsel therefore does not seem right. Where the directors are not chargeable for breach of trust so far as the company is concerned and where their action is for the benefit of the company, then merely because in promoting the interests of the company they also promte their own interests it cannot be held that they have not acted bona fide.\n\nAs it has been said in Hirsche v. Sims (1 ), if the true effect of the whole evidence is that the defendants truly\n\n(1) (189') A.C. 65•.\n\nand reasonably believed at the time that what they did was for the interest of the company, they are not chargeable with dolus malus or breach of trust merely because in promoting the interest of the company they were also promoting their own, or because they afterwards sold shares at prices which gave them large profits.\n\nBoth the Courts below have found as a fact that to a certain extent in resolving to issue new shares the directors were actuated by a fear that the Singhania group would capture the company and oust the present directors from their vantage point and take control of the company itself. It was argued that this motive was an ulterior motive and the exercise of power by the directors to achieve this objective by the issue of further shares was an exercise of power for the purp.::>se for which it was not conferred. This argument would have had force if this was the main purpose of the directors in issuing the further shares, but this is not the case here. As found by the High Court, the central fact working in the mind of the directors was the necessity of further funds for the company at the moment they passed the resolution. That being so, it seems to me that the existence of the other motive does not make the action of the directors in respect of the issue of further shares mala fide.\n\nMoreover, in the present case it seems to me that the directors were on the defensive. They felt that the attempt of the Singhanias to capture the controlling interest in the company by paying high prices for its shares must have been with a purpose, i.e., to make use of the funds of the company in their own concerns.\n\nSome evidence of this exists on the record. They thought that it was their duty as directors to protect the company from such an attack and they felt that it was beneficial to the company to protect it from such an attack. They did not keep the matter in secret but informed all the shareholders about it. They first attemptea to enter into the field of competition with the Singhanias but it seems that they were not wholly successful in their objective. They then decided to issue further capital 'by taking into consideration the\n\n/Ii .. a1u1lal Za'f)r•'\"\n\nA11d Another\n\nBombay Life Assurance Co ..\n\nA11d Others\n\nMahajan/.\n\n.Nana/al Zav11r\n\n1-111d AnothiJr\n\nBonzba y Life .Assurtu1ce Co,\n\nAnd Otltcrs\n\nMal1ajanJ.\n\ninterest and the needs of the company and its requirements in respect of capital at the moment. They also thought that by this action they would also be able to keep out the Singhanias from capturing the company. They were under no obligation to Singhanias who had not yet even been entered as shareholders on the register of shareholders. There was no dolus malus in their mind as directors of the company, as affecting the company or its shareholders. On the other hand, they honestly considered it to be in the best interests of the company to meet such an attack.\n\nThe result therefore is that it cannot be held that this is one of those unusual cases where this Court should not give weight to the concurrent findings of fact by the Courts below, or that it is a case where it can be held that the High Court in arriving at its findings has committed a breach of any rule of procedure or law and that there is no evidence to support the findings that have been arrived at.\n\nThe result therefore is that this appeal fails and is dismissed with costs.\n\nDasJ.\n\nDAS J.-1 agree that this appeal must be dismissed. As, however, my decision rests on slightly different reasons, I desire to state them in my judgment.\n\nFor the purpose of appreciating the questions involved in this appeal which has been brought by the plaintiffs it will suffice to set out the following facts.\n\nThe Bombay Life Assurance Company, Ltd. (hereinafter referred to as \" the company \") was incorporated in 1908 with an authorised capital of Rs. 10,00,000 divided into 10,000 shares of Rs. 100 each. By 1945, 5,404 shares in all were subscribed, and Rs. 25 per share had been paid on them.\n\nThis left 4,596 shares out of the total authorised capital yet to be issued. The plaintiffs are two of the shareholders of the company.\n\nRespondents 2 to 9 are the.directors of the company of whom respondent 2 is the chairman of the board of directors.\n\nIt appears that\n\nfrom July, 1944, shares in the company began to be purchased from the holders thereof by or in the interest of SrFPadampat Singhania. This attempt to buy up the shares on a large scale naturally resulted in a sudden rise in the price of tP.e shares. This abnormal rise in the price could not but attract the attention of the board of directors. On September 18, 1944, a board meeting was held at which the chairman drew the attention of his co-directors to the serious implications of the attempt of an outsider group to corner the shares of the company. It was decided at that meeting that a circular should be issued to the shareholders acquainting them of the tru\"; l position and the chairman was authorised to sign the circular.\n\nAccordingly, on September 19, 1944, a circular was issued to the shareholders drawing their attention to what was happening and exhorting them, in case they wanted to dispose of their holdings, to offer them to the chairman. The result of the chairman and other directors entering the arena was a race for purchase of shares of the company which inevitably led to a pheno- menarrise in the price of the shares. The shares which in 1944 were quoted at Rs. 250 per share went up to Rs. 2,000 per share in March, 1945. I.t may be noted here that the shares purchased by the Singhania group were not submitted for registration of the transfers with the result that their names have not yet been entered on the register of members. In the meantime, on January 8, 1945, an applic;, i.tion was submitted by the company to the Examiner of Capital Issues for sanction for a. fresh issue of capital, setting forth several reasons for whieh such . capital was required by the company. The required sanction dated :February 16, 1945, was received by the company on February 20, 1945, and on the next day (February 21, 1945) a board meeting was held at which the directors decided to issue the remaining 4,596 shares at a premium of Rs. 75 per share and to call-up Rs. 25 per share on them. The minutes of the board meeting (Ex. 0) are printed at pages 301-2 of the Paper Book. Pursuant to this resolution of the board a circular (Ex. Q) was issued to the shareholders on the same day with copies\n\n!950\n\nNaualal Zat1£r\n\nAIJd An-0tlter\n\nBombay Life AsSt11a1tce C0r.\n\nAud Others\n\nDas/.\n\nNa1tt1lal Zaver\n\nAnd Another\n\nBo1nba y Lift Assurance Co.\n\nArid Others\n\nDasJ.\n\nof the form of application and form of renunciation referred to in the resolution and in the circular.\n\nThese further shares, were offered to the shareholders shown on the.register of members in the proportion of four further shares to every five shares then held .by them.\n\nThe last date for submission of the applications and necessary payments for the shares so offered was fixed for March IO, 1945. It is said that on the very next day after the board meeting 1,648 shares were allotted and that between February 22, and March 6, 1945, 2,204 shares were allotted to the shareholders who had applied for the same.\n\nThe suit out of which the present appeal has arisen was filed on March 5, 1945.\n\nThe plaintiffs are two of the members of the company suing \" for themselves and all other aggrieved shareholders\" of the company. The defendants are the company and the eight directors.\n\nThe reliefs prayed for are as follows, inter alia :\n\n(a) That it may be declared that the resolution of the directors and the offer referred to in para 6 hereof contravenes the provisions of section 105-C of Indian Companies Act and was and is ultra vires, and illegal ;\n\n(b) That it may be declared that the said offer of shares referred to in para 6 hereof is not bona fide or in the interest of the defendant company and is ultra vires and illegal ;\n\n(c) That the defendants 2 to 9 may be restrained by an injunction from allotting any shares or doing any further act in pursuance of the said offer.\"\n\nIt will be noticed that none of the shareholders other than the directors to whom further shares had been allotted before the filing of the suit has been made a party to the suit. Further, even as against the defendants 2 to 9 the consequential relief by way of cancellation of the allotments of further shares to them and the rectification of the register in respect thereof has not been prayed for by the plaintiffs.\n\nThe contentions of the plaintiffs as set forth in the plaint on which the above prayers were founded may be summarised shortly as follows :\n\n(i) the company was not in need of capital,\n\n(ii) the issue of further shares was not made bona fide for the benefit or in the interest of the company but had been made \" merely with the object of retaining or secqring to the second defendant and his friends the control of the first defendant company,\" and\n\n(iii) the issue and offer of farther shares are illegal and void for contravention of the provisions of section 105-C of the Indian Companies Act. It is necessary to examine each of these contentions and to ascertain their effect. - Re (i): Both the Courts below.have found it as a fact that at the time the directors resolved upon the issue of further shares the company was in need of capital for the purposes mentioned in the company's application to the Examiner of Capital Issues referred to above. This concurrent finding of fact has not been contested before us and the next contention of the appellants will have to be examined in that light.\n\nRe (ii) : It is not disputed that the company's need for funds standing by itself will afford a good motive to the directors to issue further shares. The contention, however, is that if that motive was not the sole motive but was mixed up with any other motive, it was an abuse of the powers of the directors to issue further shares. This plea is clearly a departure from the case made in the plaint. There the case was that there was no need for funds at all and the sole motive of the directors was merely to retain their own control over the affairs of the company. It will, however, be a hypertechnicality to shut out this piea altogether.\n\nThe plea of mixed motive raises three questions, namely- ( a) whether apart from the motive of finding further capital for the company, there was any, and, if so, what_ other motive,\n\n(b) was that other motive vitiated by bad faith, and -\n\n(c) if it was so vitiated, whether the presence of it nullified the good motive and rendered the issue of further shares illegal and void.\n\nN analal Z ave1'\n\nAnd Another\n\n'I• BombP:V Life Assurance Co.\n\nAnd Others\n\nDas.].\n\nN analal Zaver\n\nAnd Another\n\nBo1nbay Life Assurance Co,\n\nAnd Others\n\nDas].\n\nThe contention of the plaintiffs before Bhagwati J. as before us, was that the company was not in need of any further capital in February, 1945, and that the directors of the company decided to issue the further capital merely with a view to retain control of the management of the company in their hands. On the evidence before him, Bhagwati J. found that the motive of the directors was rather to keep the Singhania group out of the control of the company than to retain their own control. The race for the purpose of purchasing the shares was not merely for the purpose of increasing their holdings for holdings' sake but was really with a view to prevent the Singhania group from obtainirig a majority of shares which would give them the control of the management of the company and enable them to utilise the life funds of the company for the purposes of the various industrial concerns of the Singhania group.\n\nThe result of keeping out the Singhania group might well be_ to strengthen the position of the directors and to keep them in the saddle, but the proximate motive was to exclude the Singhanias. The distinction is real and quite understandable. The appeal Court does not appear to have dissented from this view of the matter .and I do not see any reason to take a different view.\n\nIt follows, therefore, that apart from the rrtotive of raising fresh capital for the purposes and benefit of the company, the directors also had another motive, namely, to prevent the Singhania group, who are strangers to the company, from intruding into its affaii:s so as to be able to assume a controlling hand in its management for their own purposes rather than for the benefit of the company.\n\nOn the evidence on record the existence of this motive side by side with the motive of raising further capital cannot be denied.\n\nThe question then arises whether in acting up to it the directors were actuated by bad faith. In coming to a conclusion on this point it has to be borne in mind_ that the Singhania group had only purchased some shares from various existing shareholders but did not submit the transfers of registration so q.s to get their names put upon the register of members: It is clear that until the Singhania group get their names\n\nentered in the register of members, they are not shareholders but are complete strangers to the company.\n\nIt has been held in Percival v. Wright( 1 ) that ordinarily the directors are not trustees for individual shareholders.\n\nEven if the directors owe some duty to the existing shareholders on the footing of there being some fiduciary relationship between them as stated in some cases [see for example In re Greshain Life Assurance Society] ( 2 ), I see no cogent reason for extending this principle and imputing any kind of fiduciary relationship between the directors and persons who are complete strangers to the company. In my judgment, therefore, the conduct of the respondents 2 to 9 cannot be judged on the basis of any assumed fiduciary relationship existing between them and the Singhania group. In my opinion, the respondents 2 to 9 owed no duty to the Singhania group and, therefore, the motive to exclude them cannot be said to be 1nala fide . per se. In North-West Transportation Company, Ltd.\n\nv. Beatty (3 ) the Judicial Committee observed at p. 601:\n\n\" But the constitution of the company enabled the defendant J.H. Beatty to acquire this voting power; there was no limit upon the number of shares which a shareholder might hold, and for every share so held he was entitled to vote, tbe charter itself recognised the defendant as a holder of 200 shares, one-third of the aggregate number; he had a perfect right to acquire further shares, and to exercise his voting power in such .a manner as to secure the election of directors whose views upon policy agreed with his own, and to support those views at any shareholders' meeting.\"\n\nBeatty referred to in the above passage was a director. It follows therefore, that the fact of the directors entering into a competition with the Singhania group in purchasing the shares of the company was quite legitimate and was not mala fide. It was urged, however, that the issuing of further shares, although the company required further capital, was, in the circumstances, evidence of bad faith. Bhagwati J. dealt (I) L.R. (1902) 2 Ch. ,21. (2) L.R. S Ch. App. 4'6 at p. ~~9.\n\n(3) L.R. 12 A.O. 589.\n\nNana/al Zavc1\n\nAnd Another\n\nBombay Life Assura11.ci! Co.\n\nA1'd Others\n\nDasJ.\n\n!950\n\nN analal Zaver\n\nA11d Another\n\nB0111ba y Life Assurance Co.\n\nAud Others\n\nDas}.\n\nwith the various acts of the directors relied upon by the plaintiffs as indicating bad faith on the part of the directors and on a consideration of all of them was \" unable to come to the conclusion that the issue of new shares was decided upon by the directors not bona fide in the interests of the company and merely with a view to keep the control of the affairs of the company in their hands.\" The learned Judge, therefore, came to the conclusion that the :issue of further shares and the offer thereof made on the 21st February, 1945, was. not ultra vires and illegal. Some of these facts on which the charge of mala fide was sought to be founded were urged before the appeal Court by learned counsel for the appellants. The learned Chief Justice discussed the matters and concluded by saying that he agreed with the trial Judge that the plaintiffs had failed to discharge the burden which lay upon them of establishing that the issue of new shares was not bona fide and not in the interests, and for the benefit, of the company_ I do not see any cogent reason for taking a different view on the facts.\n\nThe position, shortly put, was that the Singhania group, who were outsiders and to whom the directors owed no duty, were out to corner the shares of the company for their own ends. To thwart that object of the Singhania group by making it more and more difficult for them to acquire more shares the directors took advantage of the existing needs of the company for further capital and decided µpon to issue further shares. The issue of further shares served tw<> purposes, namely, the purpose of finding the necessary finance, and to exclude the interlopers, both of which purposes, according to the directors, were for the benefit of the company. Rightly or wrongly, the directors felt that it was not in the interests of the company t<> allow the Singhania group a controlling hand in the management of the affairs of the company. Their apprehension evidently was that the Singhania group, f and when they became shareholders, would use their voting power in their own interests and to the detriment of the company by utilising the life fund of the company for the purposes of their various other industrial concerns. I find nothing in the evidence on\n\nrecord to doubt the honesty of the directors in holding this view and, that being so, I see nothing improper if the directors in the interests of the company and the existing shareholders tried to prevent what, according to them, would be a catastrophe. Indeed, if the directors honestly held that view-and as already stated I have no reason to think that they did not-· they would, in my opinion, have been guilty of dereliction of duty to the company and to the existing shareholders if they did not exert themselves to prevent such evil. In my judgment the motive to prevent the Singhania group, who \\Vere outsiders, from acquiring a control over the company cannot, as between the directors and the company and the existing shareholders, be stigmatised as mala fide. .\n\nAt two places in his judgment the learned Acting Chief Justice expressed the view that if it were established before the Court that the company needed further capital, all other considerations could be of no avail or of very little avail as against that central fact.\n\nTendolkar J. did not consider it necessary to deal with tht various acts of the directors relied upon as evidence of their mala fules, because he was of the view that assuming that the directors did all those acts with the object of keeping the Singhania group out of control of the company, the moment it was established that the company was in need of further capital for legitimate purposes, the fact that the directors utilised such need for the purpose of establishing themselves more firmly in the saddle did not render the issue of further capital either ultra vires or invalid.\n\nLearned counsel for the plaintiffs contends that the learned Judges in the Courts below entirely overlooked the point that the presence of such bad motive would nullify the good motive of finding capital necessary for the company and this mixture of motives would render the issue of further shares illegal and void. This leads me to a consideration of the third sub-head on the assumption that what I have called the additional motive was a bad motive.\n\nIt is well established that directors of a company are in a fiduciary pJsition vis-a-vis the company and\n\nN analal Zavcy\n\nAnd Another\n\nBombay Li/• Assurance Co ..\n\nAnd Others\n\nDasJ.\n\nNana/al Zaver\n\nAncl Another\n\nBo1nba y Life .Assiirance Co.\n\nAnd Others\n\nDas J,\n\nmust exercise their power for the benefit of the company. If the power to issue further shares is exercised by the directors not for the benefit of the company but simply and solely for their personal aggrandisement and to the detriment of the company, the Court will interfere and prevent the directors from doing so. The very basis of the Court's interference in such a case is the existence of the relationship of a trustee and of ces(ui que trust as between the directors and the company.\n\nThe first case to be referred to is that of Fraser\n\nv. Whalley('). In that case a new company was incorporated in 1859 by an Act of Parliament. By that Act also certain existing railway companies were authorised \"to acquire, take and hold shares in the undertaking of the company, and for such purpose to create new shares in their undertakings.\" The existiQg companies in 1861 passed resolutions authorising their directors to exercise this power. The resolutions were, however, not acted upon and the existing companies did not iEsue n w shares in their undertakings for the purpose of taking up any share in the new company and all the shares of the new company were issued to persons other than the existing companies.\n\nIn short, the shares which it was contemplated would be taken up by the existing companies were no longer available.\n\nSubsequently, in 1862, another Act of Parliament was passed authorising the new company to make a branch line and for that purpose to raise fresh capital by the creation and issue of new shares.\n\nBut this new Act gave no fresh power to the existing companies to toke up any of these new shares to be issued by the new company.\n\nOne Savin held the majority of shares in the existing companies and there was dispute between him and the directors. The general meeting of the company was shortly going to be held and the directors knew that at the ensuing general meeting their policy would be repudiated by the majority of shareholders and they would be turned out. from their office. It was in these circumstances thaf the directors purporting to act on the resolutiens of\n\n(1) (186l) 2 H. & M. 10.\n\n' \\,\n\n~ ('\n\n'\\-\n\n1861, resolved to issue new shares. Suit was filed on behalf of the shareholders to restrain the directors from issuing any new shares. On a motion for injunction Wood V. C. granted an interlocutory injunction. In course of his judgment the learned Judge observed:\n\n\" The directors are informed that at the next general meeting they are likely to be removed, and, . therefore, on the very verge of a general meeting, they, without giving notice to anyone, with this indecent haste and scramble which is shewn by the times at which the meetings were held, resolve that shares are, on the faith of this obsolete power entrusted to them for a different purpose, to be issued for the very purpose of controlling the ensuing general meeting.\n\nI have no doubt that the Court will interfere to prevent so gross a breach of trust. I say nothing on the question whether the policy advocated by the directors, or that which I am told is to be pursued by Savin, is the more for the interest of the company.\n\nThat is a matter wholly for the shareholders. I fully concur in the principle laid down in Foss v. Harbottle (2 Hare, 461) as to that, but if the directors can clandestinely and at the last moment use a stale resolution for the express purpose of preventing the free action .of the shareholders, this Court will take care that, when the company cannot interfere, the Court will do so.\"\n\nIt will be noticed that this decision proceeds entirely on the grounds tha~ the resolutions of 1861 on which the directors purported to act were obsolete, for they had not so long been acted upon and also because the shares contemplated by that resolution were not availaHc, and that even if the resolutions were still effective and gave authority to the directors to issue new shares, the directors could only do so for the purpose of acquiririg shares in the new company and not for the purpose of controlling the ensuing general meeting and preventing the free action of the shareholders. There was no evidence whatever in that case that the issue of shares was at all for the benefit of the company. The issue of shares in that case was not for the purpose of taking up shares in the new company for which purpose alone the power conld be. exercised,\n\nNa11a/al Zav<:I'\n\nAnd Another\n\nBombay Life Assttra11cc COi..\n\n1lnd Others\n\nDas/.\n\nNana/al Zavcr\n\nAnd Another\n\nBo11zba y Lif~ Assuran::e Co\n\nAn, I Others\n\nDasJ.\n\nbut that it was being exercised, wholly and solely for quite a different purpose, namely, of maintaining themselves in office.\n\nPunt v. Symons & Co. Limited ( 1 ) was a motion for an interim injunction to restrain the holding of a meeting of the defendant company for confirming the resolution for issue of shares. On the evidence it was quite clear \" that these shares were not issued bona fide for the general advantage of the company, but that they were issued with the immediate object of controlling the holders of the greater number of shares in the company, and of obtaining the necessary statutory majority for passing a special resolution while, at the same time, not conferring upon the minority the power to demand a poll.\" Byrne]. granted an injunction restraining the defendant from holding the confirmatory meeting and observed :\n\n\" I am quite satisfied that the meaning, object, and intention of the issue of these shares was to enable the shareholders holding the smaller amount of shares to control the holders of a very considerable majority.\n\nA power of the kind exercised by the directors in this case, is one which must be exercised for the benefit of the company ; primarily it is given them for the purpose of enabling them to raise capital when required for the purposes of the company. There may be occasions when the directors may fairly and properly issue shares in the case of a company constituted like the present for other reasons. For instance, it would not be at all an unreasonable thing to create a sufficient number of shareholders to enable sta, tutory powers to be exercised, but when I find a limited issue of shares to persons who are obviously meant and intended to secure the necessary statutory majority in a particular interest, I do not think that is a fair and bona fal, P exercise of the power.\"\n\nThe learned Judge concluded with the following words:\n\n\" If I find as I do that shares have been issued under the general and fiduciary power of the directors for the express purpose of acquiring an unfair majority\n\n(I) L.R. (1903] 2 Ch. 506.\n\n...\n\nfor the purpose of altering the rights of parties under the articles, I think I ought to interfere.\"\n\nPiercy v. S. Mills & Co. Ltd. (1 ) was a witness action before Peterson J. It was indeed a gross case.\n\nOn the evidence Peterson .J. found that it was manifest \" that the shares were allotted simply and solely for the purpose of retaining control in the hands of the existing directors.\" After stating the facts, the learned Judge said:\n\n\" The question is whether the directors were justified in acting as they did, or whether their conduct was a breach of the fiduciary powers which they possessed under the articles. What they did in fact was to override the wishes of the holders of the majority of the shares of the company for the time being by the issue of fresh shares issued solely for that purpose.\"\n\nThen after referring.to Fraser v. Whalley and Pmit\n\nv. Symons & Co. Ltd. (supra), the learned Judge concluded:\n\n\"The basis of both cases is, as I understand, that directors are not entitled to use their powers of issuing shares merely for the purpose of maintaining their control or the control of themselves and their friends -0ver the affairs of the company, or merely for the purpose of defeating the wishes of the existing majority of shareholders. That is, however, exactly what has happened in the present case. With the merits of the dispute as between the directors and the\n\nplaintiff I have no concern whatever. The plaintiff and his friends held a majo; rity of the shares of the company, and they were entitled, so long as that majority remained, to have their views prevail in accordance with th{)regulations of the company, and it was not, in my opinion, open to the directors, for the purpose of -conyerting a minority into a majority, and solely for the , purpose of defeating the wishes of the existing majority, to issue the shares which are in dispute in the present , action;\"\n\nIn the result, the shares allotted to the defendants were declared void.\n\n(1) L.R. (ltiOJ 1 Ch. 77.\n\nN a11al al Z avc1\"\n\n; ind Anotlrcr\n\nBombay Life Assurance Co.\n\nA1'd Others\n\nDas J.\n\nN analal Z aver\n\nAna Another\n\nBot1WaJ' Life Assurance Co.\n\nAnd Others\n\nDas/.\n\nIt will oe noticed that in each of the: three cases the act of the directors was not only not of advantage to the company but was in essence to its detriment in that it was calculated to reduce the existing majority into minority and to prevent the majority of the existing shareholders from exercising their discretion. with respect to what they conceived to be in the best interests of the company. Those cases we not cases of mixed motives at all. The only motive operating in those cases in the minds of the directors was detrimental to the interests of existing shareholders and, therefore, to the company itself. Our attention was drawn to .Palmer's Company Law, 18th Edition, p. 183, where it is stated that\n\n\"in exercising their powers, whether general or special, directors must always bear in mind that they are in a fiduciary position, and must exercise their powers for the benefit of the company, and for that alone.\" Relying on the words \"and for that alone,\" it is urged that the power to issue shares must be exercised wholly and solely for the benefit of the company, that there must not be any other motive whether or not that other motive is injurious to the company and that if that power is exercised for that purpose and also for some other purpose then irrespective of the nature of that other purpose the directors would be guilty of an abuse of their power. I am not prepared to read the passage in the way urged by learned counsel for the plaintiffs. None of the cases cited on that point in Palmer's Company Law was concerned with mixed motives at all. In none of th.em was there any motive beneficial to the company or to the existing shareholders. In my view what that passage means is that the power must be exercised for the benefit of the company and that as between the directors and the company there must be no other motive which may operate to the detriment of the company. If the directors exercise the power for the benefit of the company and at the same time they have a subsidiary motive which in no way affects the company or its interests or the existing shareholders then the very basis of interference of the Court is absent, for, as I have pointed out, the Court of equity only intervenes in order I r\n\nto prevent a breach of trust on the part of the directors .and to protect the cesliti que trust, namely the company and possibly the existing shareholders. If as between the directors and the company and the existing shareholders there is no breach of trust or bad faith there can be no occasion for the exercise of the equitable jurisdiction of the Court. I find support for my views in the following observations of their Lordships of the Judicial Committee in Hirsche v. Sims( 1 ):\n\n\"If the true effect of the whole evidence is, that the defendants truly and reasonably believed at the time that what they did was for the interest of the company, they are not chargeable with dolus nialus or breach of trust merely because in promoting the interest of the company they were also promoting their own, or because they afterwards sold shares at priCes which gave them large profits.\"\n\nOri the facts of this case the concurrent finding is that the company was in need of funds and, therefore, the issue of further shares was clearly necessary and is referable to such need. The further motive of keeping out the Singhania group, who are not yet shareholders but are strangers, does not prejudicially affect the company or the existing shareholders and the presence of such further moti\\'e cannot vitiate the good motive of finding the necessary funds for the company. In my judgment it is impossible to hold that the issue of fresh shares was, in the circumstances, illegal or v0id.\n\nRe (iii) :-Learned counsel for the plaintiffs contends that both the Courts below were in error in holding that there has been no contravention of the provisions of section 105-C of the Indian Companies Act. That section is in the following terms:-\n\n\" vVhere the directors decide to increase the capital of the company by the issue of further shares snch shares shall be offered to the memlwrs in proportion to the existing shares held by each member (irrespective of class) and such offer shall be made by notice specifying the number of shares to which the member is entitled, and limiting a time within which the offer, if\n\n(1) (1894] A.C. 654, at pp. 660.GGl.\n\nNana/al Zat't'r\n\nAnd Anotlic•\n\nBombay L1je Assurance Co.\n\nAnd Others\n\nDasJ.\n\nN analal Z aver\n\nAnd Another v.\n\nBombay Life Assurance Co.\n\nAnd Others\n\nDas].\n\nnot accepted, will be deemed to be declined ; and after the expiration of such time, or on receipt of an intimation from the merober to whom such notice. is given that he declines to accept the shares offered, the directors may dispose of the same in such manner as they think most beneficial to the company.\"\n\nThis section was added to the Indian Companies.\n\nAct in 1936.\n\nThe first question is whether the section contemplates increase of capital above the authorised limit, or only below the authorised limit. Learned Attorney~ General appearing for the company urges that the words\n\n\"further shares\" must be read in conjunction with the words \" decide to increase the capital of the company \" and, so read, must mean shares which are issued for the purpose of increasing the capital beyond the authorised capital.\n\nHe contends that section )05-C has no application to this case. Section 50 deals with, among other things, alteration of the conditions of the Memorandum of Association of the company by increasing its share capital by the issue of new shares.\n\nThe very idea of alteration of the memorandum by the issue of new shares clearly indicates that it contemplates an increase of the share capital above the authorised capital with which the company got itself registered. This increase can only be done by the company in a general meeting as provided in sub-section (2) of section 50.\n\nThis increase above foe authorised limit cannot possibly be done by the directors on their own responsibility.\n\nSection 105-C, however, speaks of increase of capital by the issue of further shares. The words used are capital and not share capital and further shares and not new shares. It speaks of increase by the directors.· Therefore, the section only contemplates such increase of capital as is within the competence of the directors to decide upon. It clearly follows from this that the section is intended to cover a case where the directors decide to increase the capital by issuing further shares within the authorised limit, for it is only within that limit that the directors can decide to issue further shares, unless they are precluded from doing even that by the regulations of\n\nthe company. It is said that section 105-C becomes applicable after the company in a general meeting has decided upon altering its memorandum by increasing its . share capital by issuing new shares.\n\nIf the company at a general meeting has decided upon the increase of its share capital by the issue of new shares, then it is wholly inappropriate to talk of the directors deciding to increase capital, because the increase has already been decided 'upon by the company itself. Further, after the company has at a general meeting decided to increase its share capital by the issue of new shares, the increased capital becomes its authorised capital and then if the directors under section 105-C decide to increase the capital by the issue of further shares, then this decision is nothing more than a decision to raise capital within the newly authorised limit.\n\nFinally, if section 105-C were to be held applicable to the case of an increase of capital above the authorised limit then such construction will lead to anomalous results so far as the companies which have adopted Table A, for the section is not consonant with Regulaticn 42 of Table A which, as will be shown hereafter, applies to increase of capital beyond the authorised limit. If the Legislature intended that sedion 105-C should apply to all companies in the matter of increase of capital above the authorised limit, then the simplest thing would have been to make Regulation 42 a compulsory regulation, instead of introducing a section which in its terms differs from Regulation 42 an dispose of in such manner as they think fit.\n\nLearned Attorney-General appearing for the company submits:\n\n(a) That section 105-C should be construed in the light of Regulation 42 in Table A of the Indian Companies Act, 1913 ;\n\n(b) That in order to prevent absurdity and to give business efficacy to the section, the words \" as nearly as circumstances admit \" should be read into the section ; and\n\n( c) That in any event the directors have not contravened the provisions of the section even if the same be literally construed.\n\nEach of these points requires serious consideration.\n\nAs to the first point it should be remembered that section 105-C was introduced in thi: .Act only in 1936.\n\nThere is no counterpart of it in the English Act even now.\n\nPrior to 1936 there was no check on the powers of the directors to issue blocks of shares, within the authorised limit, to themselves or to their nominees, unless their powers were circumscribed by the Articles of Association.\n\nOne of the mischiefs of the managing agency system which prevails in this country was that the managing agents, who usually dominated the board of directors, could, to secure their own position, induce the board to issue blocks of preference shares to the managing agents or their nominees. To check this mischief section 105-C was introduced in the Indian Act in 1936.\n\nAs regards the increase of capital beyond\n\nthe authorised limit it could only be done by the coµJ.pa.ri.y. The shareholders could, while sanctioning such increase, protect themselves by giving special directions to the directors as to the mode of disposal of the new shares. In the model Regulations set forth in Table A of the 1882 Act under the heading '' Increase of Capital\" are grouped three Regulations 26 to 28.\n\nRegulation 27 was in. the following terms :\n\n\"(27) Subject to any directions to the contrary that may be given by the meeting that sanctions the increase of capital, all new shares shall be offered to the members in proportion to the existing shares held by them, and such offer shall be made by notice specifying the number of shares to which the member is entitled, and limiting a time within which the offer, if\n\nnot accepted; will be deemed to be declined, and after the expiration of such time, or on the receipt of an intimation from the member to whom such notice is given that he declines to accept the shares offered, the directors may dispose of the same in such manner as they think most beneficial to the company.\"\n\nIn Table A of our present Act under the heading \"Alteration of Capital \" are to be found three corresponding Regulations 41 to 43.\n\nRegulation 42 is as follows:-\n\n\" (42) Subject to any direction to the contrary that may be given by the resolution sanctioning the increase of share capital, all new shares shall, before issue, be offered to such persons as at the date of the offer are entitled to receive notices from the company of general meetings in proportion, as nearly as the circu.mstances admit, to the amount of the existing shares tO Wpich they are entitled. The offer shall be made by n0tice specifying the number of shares offered, and limiting a time within which the offer, if not accepted, will be deemed to be declined, and after the expiration of that time, or on the receipt of an intimation from the person to }Vhom the offer is made that he declines to accept the shares offered, the directors may dispose\n\n1~50\n\nNana/al Zul Others\n\nltlalinja\"l\n\nNanalal Zaver\n\nAnd Anotlu1\n\nBoiirba y Life Asst'1ance Co.\n\nAnd Others\n\nMahajan J.\n\nof further shares in those cases alone where there was\n\nan increase in the nominal capital of the company by recourse to the provisions of section 50 of the Indian Companies Act.", "canonical_name": "MAHAJAN"}}, {"text": "section 50", "label": "PROVISION", "start_char": 24486, "end_char": 24496, "source": "regex", "metadata": {"statute": null}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 24511, "end_char": 24524, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 50", "label": "PROVISION", "start_char": 24618, "end_char": 24628, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 24663, "end_char": 24674, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 24865, "end_char": 24876, "source": "regex", "metadata": {"statute": null}}, {"text": "section 50", "label": "PROVISION", "start_char": 24963, "end_char": 24973, "source": "regex", "metadata": {"statute": null}}, {"text": "Sircar", "label": "OTHER_PERSON", "start_char": 25044, "end_char": 25050, "source": "ner", "metadata": {"in_sentence": "In Sircar and Sen's Indian Companies Act, 1937 Edn."}}, {"text": "Sen", "label": "OTHER_PERSON", "start_char": 25055, "end_char": 25058, "source": "ner", "metadata": {"in_sentence": "In Sircar and Sen's Indian Companies Act, 1937 Edn."}}, {"text": "Indian Companies Act, 1937", "label": "STATUTE", "start_char": 25061, "end_char": 25087, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Ghosh", "label": "OTHER_PERSON", "start_char": 25389, "end_char": 25394, "source": "ner", "metadata": {"in_sentence": "Mr. Ghosh on Indian Company Law, 8th Edn."}}, {"text": "section 50", "label": "PROVISION", "start_char": 25924, "end_char": 25934, "source": "regex", "metadata": {"linked_statute_text": "Indian Companies Act, 1937", "statute": "Indian Companies Act, 1937"}}, {"text": "section 50", "label": "PROVISION", "start_char": 27706, "end_char": 27716, "source": "regex", "metadata": {"statute": null}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 28609, "end_char": 28622, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "article 42", "label": "PROVISION", "start_char": 28641, "end_char": 28651, "source": "regex", "metadata": {"statute": null}}, {"text": "Bombay Life Assurance", "label": "RESPONDENT", "start_char": 28782, "end_char": 28803, "source": "ner", "metadata": {"in_sentence": "In what sense it has been used in this section is by no means an easy matter to decide, particularly in view of the fact that in spite of the introduction of this ction in the Indian Companies Act in the year 1936r article 42 still remains as one of the articles to be adopted by companies if they do not choose otherwise 51\n\nNana/al Zat'el\"\n\nAnd Another\n\nBombay Life Assurance C<>..\n\nA11tl Others\n\nMahaja1'].", "canonical_name": "BOMBAY LIFE ASSURANCE CO. 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e Co-."}}, {"text": "Nanalal Zaver", "label": "RESPONDENT", "start_char": 33600, "end_char": 33613, "source": "ner", "metadata": {"in_sentence": "M alwjan J.\n\n] 950\n\nNanalal Zaver\n\nAnd Another\n\nBo11iba y Life Ass11ran ; e Co.\n\nAnd Others\n\nMahajan}.", "canonical_name": "Na1ialal Zavcr"}}, {"text": "section\n\n105", "label": "PROVISION", "start_char": 36333, "end_char": 36345, "source": "regex", "metadata": {"statute": null}}, {"text": "section 10", "label": "PROVISION", "start_char": 37270, "end_char": 37280, "source": "regex", "metadata": {"statute": null}}, {"text": "section\n\n105", "label": "PROVISION", "start_char": 37808, "end_char": 37820, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 38068, "end_char": 38079, "source": "regex", "metadata": {"statute": null}}, {"text": "lYlahajan", "label": "JUDGE", "start_char": 38270, "end_char": 38279, "source": "ner", "metadata": {"in_sentence": "I am therefore -0f the opinion that the learned Judges of the Court of appeal were right when they held that under section\n\n105-C the shares have to be offered to the existing shareholde1s as nearly as the circumstances would admit and that the section has to be given a businesslike construction and should be construed liberally and\n\ni. that the charge of contravention of section 105-C cannot be levelled against the directors -so long as they .ha, ve not disposed of the unoffered balance contrary tb\n\nN analal Z aver\n\nA11d Another\n\nBombay Life Assurance Co.\n\nA\".d Others\n\nlYlahajan J.\n\nN anal al Z aver\n\nAnd Another\n\nBo111!Jay Life Assrv-t11icc Co.\n\nAnd Others\n\nMaliajanJ.\n\nthe provisions of the section."}}, {"text": "MaliajanJ.", "label": "RESPONDENT", "start_char": 38360, "end_char": 38370, "source": "ner", "metadata": {"in_sentence": "I am therefore -0f the opinion that the learned Judges of the Court of appeal were right when they held that under section\n\n105-C the shares have to be offered to the existing shareholde1s as nearly as the circumstances would admit and that the section has to be given a businesslike construction and should be construed liberally and\n\ni. that the charge of contravention of section 105-C cannot be levelled against the directors -so long as they .ha, ve not disposed of the unoffered balance contrary tb\n\nN analal Z aver\n\nA11d Another\n\nBombay Life Assurance Co.\n\nA\".d Others\n\nlYlahajan J.\n\nN anal al Z aver\n\nAnd Another\n\nBo111!Jay Life Assrv-t11icc Co.\n\nAnd Others\n\nMaliajanJ.\n\nthe provisions of the section."}}, {"text": "S.C.R.\n\nSUPREME COURT", "label": "COURT", "start_char": 40477, "end_char": 40498, "source": "ner", "metadata": {"in_sentence": "S.C.R.\n\nSUPREME COURT l<.EPORTS 409\n\nmajority of shares going into the hands of the Singhania group with the necessary consequences."}}, {"text": "Amin", "label": "OTHER_PERSON", "start_char": 41672, "end_char": 41676, "source": "ner", "metadata": {"in_sentence": "we have been given a glimpse of what high finance can be and there is great justification in what Mr. Amin .has said as tq the manner in which some of the things were done with regard to the affairs of this company. :"}}, {"text": "Bombay Life Assurance Co", "label": "PETITIONER", "start_char": 47261, "end_char": 47285, "source": "ner", "metadata": {"in_sentence": "They then decided to issue further capital 'by taking into consideration the\n\n/Ii .. a1u1lal Za'f)r•'\"\n\nA11d Another\n\nBombay Life Assurance Co ..\n\nA11d Others\n\nMahajan/.\n\n.Nana/al Zav11r\n\n1-111d AnothiJr\n\nBonzba y Life .Assurtu1ce Co,\n\nAnd Otltcrs\n\nMal1ajanJ.\n\ninterest and the needs of the company and its requirements in respect of capital at the moment.", "canonical_name": "BOMBAY LIFE ASSURANCE CO. 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LTD.\n\nAND OTHERS"}}, {"text": "SrFPadampat Singhania", "label": "OTHER_PERSON", "start_char": 49451, "end_char": 49472, "source": "ner", "metadata": {"in_sentence": "from July, 1944, shares in the company began to be purchased from the holders thereof by or in the interest of SrFPadampat Singhania.", "canonical_name": "SrFPadampat Singhania"}}, {"text": "September 18, 1944", "label": "DATE", "start_char": 49688, "end_char": 49706, "source": "ner", "metadata": {"in_sentence": "On September 18, 1944, a board meeting was held at which the chairman drew the attention of his co-directors to the serious implications of the attempt of an outsider group to corner the shares of the company."}}, {"text": "September 19, 1944", "label": "DATE", "start_char": 50091, "end_char": 50109, "source": "ner", "metadata": {"in_sentence": "Accordingly, on September 19, 1944, a circular was issued to the shareholders drawing their attention to what was happening and exhorting them, in case they wanted to dispose of their holdings, to offer them to the chairman."}}, {"text": "January 8, 1945", "label": "DATE", "start_char": 50822, "end_char": 50837, "source": "ner", "metadata": {"in_sentence": "In the meantime, on January 8, 1945, an applic;, i.tion was submitted by the company to the Examiner of Capital Issues for sanction for a. fresh issue of capital, setting forth several reasons for whieh such ."}}, {"text": "February 16, 1945", "label": "DATE", "start_char": 51078, "end_char": 51095, "source": "ner", "metadata": {"in_sentence": "The required sanction dated :February 16, 1945, was received by the company on February 20, 1945, and on the next day (February 21, 1945) a board meeting was held at which the directors decided to issue the remaining 4,596 shares at a premium of Rs."}}, {"text": "February 20, 1945", "label": "DATE", "start_char": 51128, "end_char": 51145, "source": "ner", "metadata": {"in_sentence": "The required sanction dated :February 16, 1945, was received by the company on February 20, 1945, and on the next day (February 21, 1945) a board meeting was held at which the directors decided to issue the remaining 4,596 shares at a premium of Rs."}}, {"text": "February 21, 1945", "label": "DATE", "start_char": 51168, "end_char": 51185, "source": "ner", "metadata": {"in_sentence": "The required sanction dated :February 16, 1945, was received by the company on February 20, 1945, and on the next day (February 21, 1945) a board meeting was held at which the directors decided to issue the remaining 4,596 shares at a premium of Rs."}}, {"text": "Naualal Zat1£r", "label": "PETITIONER", "start_char": 51566, "end_char": 51580, "source": "ner", "metadata": {"in_sentence": "950\n\nNaualal Zat1£r\n\nAIJd An-0tlter\n\nBombay Life AsSt11a1tce C0r."}}, {"text": "Bombay Life AsSt11a1tce", "label": "PETITIONER", "start_char": 51598, "end_char": 51621, "source": "ner", "metadata": {"in_sentence": "950\n\nNaualal Zat1£r\n\nAIJd An-0tlter\n\nBombay Life AsSt11a1tce C0r.", "canonical_name": "BOMBAY LIFE ASSURANCE CO. 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LTD.\n\nAND OTHERS"}}, {"text": "Section 50", "label": "PROVISION", "start_char": 79355, "end_char": 79365, "source": "regex", "metadata": {"statute": null}}, {"text": "section 50", "label": "PROVISION", "start_char": 79857, "end_char": 79867, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 105", "label": "PROVISION", "start_char": 79982, "end_char": 79993, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 80691, "end_char": 80702, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 81342, "end_char": 81353, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 81535, "end_char": 81546, "source": "regex", "metadata": {"statute": null}}, {"text": "section 105", "label": "PROVISION", "start_char": 82364, "end_char": 82375, "source": "regex", "metadata": {"statute": null}}, {"text": "Bombay Life", "label": "RESPONDENT", "start_char": 82923, "end_char": 82934, "source": "ner", "metadata": {"in_sentence": "Nana/al Ztroer\n\nAnd Another\n\nBombay Life .Asstwance C:o.", "canonical_name": "BOMBAY LIFE ASSURANCE CO. LTD.\n\nAND OTHERS"}}, {"text": "section 105", "label": "PROVISION", "start_char": 83557, "end_char": 83568, "source": "regex", "metadata": {"statute": null}}, {"text": "Table A of the Indian Companies Act, 1913", "label": "STATUTE", "start_char": 83624, "end_char": 83665, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 105", "label": "PROVISION", "start_char": 84075, "end_char": 84086, "source": "regex", "metadata": {"linked_statute_text": "Table A of the Indian Companies Act, 1913", "statute": "Table A of the Indian Companies Act, 1913"}}, {"text": "is no counterpart of it in the English Act", "label": "STATUTE", "start_char": 84138, "end_char": 84180, "source": "regex", "metadata": {}}, {"text": "section 105", "label": "PROVISION", "start_char": 84734, "end_char": 84745, "source": "regex", "metadata": {"linked_statute_text": "There is no counterpart of it in the English Act", "statute": "There is no counterpart of it in the English Act"}}, {"text": "Vhom", "label": "OTHER_PERSON", "start_char": 86769, "end_char": 86773, "source": "ner", "metadata": {"in_sentence": "The offer shall be made by n0tice specifying the number of shares offered, and limiting a time within which the offer, if not accepted, will be deemed to be declined, and after the expiration of that time, or on the receipt of an intimation from the person to }Vhom the offer is made that he declines to accept the shares offered, the directors may dispose\n\n1~50\n\nNana/al Z C(handra\n\nh 11 h t . · h\" Mane/al s a serve on sue person a no ice reqmrmg 1m, on a date to be therein specified, either to attend at Das.f. the Agricultural Income-tax Officer's office or to produce or to cause to be there produced any evidence on which such person may rely in support of the return. This section expressly permits production of evidence by an agent.\n\nSection 41 gives to the Agricultural Income-tax Officer, the Assistant Commissioner and the Appellate Tribunal for the purposes of Chapter V, and to the Commissioner for the purposes of section 37, the same powers as are vested in a Court under the Code of Civil Procedure, 1908, when trying a suit in respect of certain specified matters only namely, enforcing attendance of any person and examining him on oath or affirmation, compelling production of documents and ir; suing commissions for the examination of witnesses, and the proceedings before those officers are to be deemed to be \" judicial proceedings\" within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code.\n\nAgain, section 60 of the Act permits a notice or requisition under the Act to be served as if it were a summons issued by a Court\n\nunder the Code of Civil Procedure, 1908, and specifies the person on whom such service may be effected.\n\nThere is nothing in the Act making the provisions of the Code relating to the signing or verification of pleadings applica-ble to the returns to be filed by any assessee. If the Legislature intended that the return might be signed by the assessee or by his authorised agent 1'.nere could have been no difficulty in inserting a section in the Act adopting the provisions of the Code relating to the signing and verification of pleadings as if the return was a pleading in a suit. Sections 35 and 58 expressly permit an assessee to attend before the Assistant Commissioner and the AppeUate Tribunal or\n\nCo1n11iiss!cncr cf Agricu!tural\n\nlnconw-tax\n\nK cshab Chandra\n\nMandal\n\nDas].\n\nany Agricultural Income-tax authority in connection with any . proceeding under the Act, otherwise than when required .under section 41 to attend personally for examination, to attend by a person authorised by him in writing in this. behalf, being a relative of, or a person regularly employed by, the assessee, or a lawyer or accountant or agricultural income-tax practitioner.\n\nIt should be noted that even under this section any and every agent cannot represent the assessee but only certain specified kinds of agents can do so.\n\nTo summarise, the omission of a d;; finition of the word \" sign\" as including a signature by an agent, the permission under section 25 for production of evidence by an agent and under sections 35 and 58 for attendance by an agent and the omission of any provision in the Act applying the P' ovisions of the Code of Civil Procedure relating to the signing and verification of pleadings to the signing and verification of the return while expressly a:lopting the provisions of that Code relating to-the attendance and examination of witnesses, production of documents and issuing of commission for examination and for service of notices under sections 41 and 60 respectively, cannot be regarded as wholly without significance. The matter, however, does not rest there.\n\nSection 24 of the Act requires the Agricultural Income-tax Officer to call for a return in the prescribed form and verified in the prescribed manner.\n\nRule 11 of the Bengal Agricultural Income-tax Rules, 1944, framed under section 57 of the Act prescribes that the return required under section 24 must be in Form 5 and shall be verified in the manner indicated therein.\n\nThere is a footnote in Form 5 to the following effect:\n\n\" The declaration shall be signed- ( a) in the case of an individual by the individual himself ;\n\n(b) in the case of a Hindu undivided family by the Manager or Karta ;\n\n(c) in the case of a company or the Ruler of an Indian State by the principal officer ;\n\n(d) in the case of a firm by a partner;\n\n(e) in the case of any other association by a member of the association.\n\nThere is also a note that the signatory should satisfy himself that the return is correct and complete in every respect before signing the verification, and the alternatives which are not required should be scored out. It will be interesting to compare the requirements of rule 11 and Form 5 with those of other rules dealing. with appeals and other proceedings. Section 34 allows an appeal from the Agricultural Income-Tax Officer to the Assistant Commissioner. Sub-section (3) of that section requires that the appeal shall be in the prescribed form and shall be verified in the prescribed manner. Likewise section 36 provides for a further appeal to the Appellate Tribunal and sub-section (4) of that section also requires that such an appeal must be in the prescribed form .and be verified in the prescribed manner. l{ule 13 prescribes the forms of appeals under section 34 and rule 14 prescribes the forms of appeals under section 63 of the Act.\n\nRule 15 is as follows:- \" The forms of appeal prescribed by rules 13 and 14 and the forms of verification appended thereto shall be signed-\n\n(a) in the case of an individual, by the individual himself ;\n\n(b) in the case of a Hindu undivided family, by the Manager or Karta thereof ;\n\n(c) in the case of a company, by the principal officer of the company ;\n\n(d) in the case of a firm, by a partner of the firm; ( e) in the case of a Ruler of an Iru::lia1i State, by the principal officer of the State; and\n\n(f) in the case of any other association of individuals, by a member of the association, .and such forms of appeal shall be also signed by the authorised representative, if any, of the appellant.\"\n\nRule 17 deals with applications for refund of tax.\n\nSub-rule (2) requires every such application to be signed by the claimant and his authorised representa.tive, if any, and allows such application to be presented by the applicant either in person or through\n\nConuuissz'un.cr of Agricultur,:J\n\nInco111lJ-ta:1::\n\nv. lfrsliab Chandra\n\n;<, fandal\n\nDas J.\n\nConunissioncr of Agricultural\n\nI nco11ic-ta x ., Keshab Chandra\n\nMand al\n\nDasJ.\n\nsuch authorised representative. Rule 22 requires that where an application or memorandum of appeal is signed by an authorised representative, the latter must annex to it the writing constituting his authority and his acceptance of it. Under rule 25 an appeal to the Tribunal has to be presented in person or by an authorised representative and under rule 28 every such appeal has to be preferred in the form of a memorandum signed by the appellant and his authorised representative, if any, and verified by the appellant.\n\nEach of the forms, from Form 7 to Form 20, contains. separate spaces for the signatures of the appellant or the applicant or the claimant as the case may be and the authorised representative, if any. Form 23 which is notice of hearing of appeal under section 36 requires the attendance of the appellant or respondenteitherinperson or by an authorised representative. Rule 47 provides that, subject to certain special provisions, the provisions contained in Part II of the rules relating to the presentation, notices and hearing of an appeal before the Appellate Tribunal shall apply to the presentation, notices and hearing of a section 63 reference application as if it were an appeal. Rule 53 empowers the Tribunal, if it considers it necessary, to hear the applicant or his authorised representative. A perusal of the several rules referred to above will show that while rules 15, 17 (2), 28 and the forms thereunder require the appeal or application to be sigi:ted by the appellant or applicant or claimant as well as by his authorised representative, if any, rule 11 and Form 5 require only the signature of the assessee in the manner therein prescribed for different categories of assessees. Again rules 17 (2), 25 and 47 permit presentation of applications and appeals by the authorised representative of the assessee wh.ereas there is no sucli provision for the presentation by an authorised agent of a return under rule 11 which could easily be inserted in the rules if the Legislature so intended. That wherever the assessee or the appellant or the applicant is required to sign he must sign personally, is also borne out by note (1) at the foot of Form 20 which is for refund of tax under section 48 (2). It runs as follows :\n\n''In the case of a person not resident in British India, 1950 the above declaration shall be sworn(a) before a Justice Comtnissioner -0£ the Peace, a Notary Public, a Commissioner of Oaths, of Agricult,.rat if the applicant resides in any part of His Majesty's Income-tax Dominions outside British India, (b) before a Magisv. trate or other official of the State or a Political Officer, Keshab c1ia .. <1ra if he resides in a State in India, and ( c) before a British Mandal Consul, if he resides elsewhere.\" DasJ.\n\nThis does not mean that only the claimant for refund under section 48 (2) who resides outside India must sign his application personally and other assessees Or appellants or applicants or claimants need not sign their return or appeal or application personally. All that it means is that such a claimant for refund under section 48 (2) must have his signature authenticated by certain public officers by swearing the declaration in their presence. This clearly indicates that personal signature of the assessee, the appellant or' applicant is necessary in all cases wherever his signature is required and authentication of such signature is required only in the case of a claimant for refund of tax under section 48 (2). There are yet other reasons why personal signature of an assessee, appellant, applicant or claimant is necessary. It has been seen that under the Act and/or the rules several acts can be done by or through the authorised representative, namely, production of doc1:Jments, presentation of appeal or application and attendance in proceedings before the authorities. The expression \"authorised representative\" is defined in rule 2 (a). It will be noticed that in each case the authorised representative has to be duly authorised in writing.\n\nUnder rule 22 the authorised representative has to file the writing constituting his authority and his acceptance of it. If it were intended that the •signature by an agent on a return or a memorandum of appeal or other application will suffice as the signa- , ture of the assessee or the appellant or the applicant or the claimant, there would certainly have been some rule for constitution of such agency in writing and for the filing of the writing constituting such agency and the agent's acceptance of it. If an agent for mere__ pre~ sentation of an appeal is expressly required by the\n\nCou1111is . ., ion _'r of A._f}ric11ltural\n\n/t\".:0111.·-f:ax\n\nAushab Clurndra\n\nManda/\n\nDasJ.\n\nrules to be duly authorised in writing and such writing has to be filed on record I cannot think that the Act or the rules contemplate or permit the employment of an agent to sign an important document, namely a return or an appeal or application without any written authority and that such agent may sign without producing any such written authority. And yet that would be the result, for there is no provision in that behalf in the Act or in the rules. On a consideration of the provisions of the Act and of the rules and the forms and for reasons stated above there appears to be many clear indications of an intention on the part of the Legislature to insist on the personal signature of the assessee, appellant or applicant whenever his signatu:e is required by the Act or the rules and the common law rule qui facit per alium f acit per se is excluded by necessary implication or intendment of the Act and the rules.\n\nThe Appellate Tribunal and the High Court have referred to certain difficulties in arriving at this conclusion which may now be considered.\n\nIt is pointed out that to insist on the personal signature of ail individual assessee will result in the anomaly that persons authorised to sign for the assessees of other categories will be free to get the returns signed by their own agents. This argument really begs the question. For reasons stated above none of the persons designated in the footnote to Form 5 are authorised to employ an agent to sign for him and therefore no anomaly can arise. If anything, the use of the word \"himself\"\n\nwith reference to an individual makes the position clearer so far as such individual is concerned. There is an argument based on hardship or inconvenience.\n\nHardship or inconvenience cannot alter the meaning of the language employed by the Legislature if such meaning is clear on the face of the statute or the rules.\n\nFurther, there is no hardship or inconvenience.\n\nIn the case of an illiterate person, he can put his mark which, by the Bengal General Clauses Act, is included in the definition of\" sign.\" If claim Form 20 for re- fund of tax under section 48 ( 2) can be sent to a claimant abroad for his signature before certain public\n\nofficer for authentication, there can be no hardship or inconvenience in sending to him abroad the return in Form 5 for his signature without the necessity of any authentication thereof. It is said that such a construction will prevent a leper who, by reason of the loss of his fingers, cannot even put his mark. Such cases will indeed be rare and in anv event it will be for the Legislature to rectify thiS.defect. Not to insist on personal signature on returns or appeals or applications will Jet in signature by agent not duly authorised in writing and without production of such writing. In that case the provisions for penalty for filing false returns may quite conceivably be difficult of application. The omission of a definition of the expression \"sign\" so as to include the signature of an agent, the presence of the provisions permitting only certain specified acts, other than signing, to be done by or through an authorised agent are significant and indicate that the intention of the Legislature is not to permit signature by an agent so as to exclude the common law rule referred to above.\n\nTurning now to the judicial decisions cited before us it will be found that Courts have insisted on personal signature even when there were not so many clear indications in the statutes under consideration in those cases as there are in the statute and the rules before us. Thus in Monls v. ]ackson( 1 ), which was a case under section I (3) of the Municipal Elections Act (38 nd ~9 Vic., c. 40) which required delivery of the nommahon paper \" by the candidate himself or his proposer or seconder to the Town Clerk\" it was held\n\ntht this requirement was not satisfied by the delivery of it by an agent. In The Qiteen v. JY!ansel jones(2), it\n\nas held tha! a person charged with any corrupt or\n\nillegal practice at a municipal election who was entitled, under section 38 of the Corrupt and Illegal\n\nP.ractice,~ Prevention. Act, 1883, to be \"hear.d by h1mse.lf. was not entitled to be .heard by his counsel or sohc1tor.\n\nIn In re Prince Blucher( 3 ), the English Court of Appeal held that a proposal of composition\n\n(1) (1876) L.R. 1 C.P.D. 683\n\n(2) L.R. 23 Q.B.D. 29\n\n(3) L.R. (1931) 2 Ch. 70\n\nCo11uuissio11er of Agricultural\n\nInconwtax\n\nJ{cshab Chandra\n\nMand al\n\nDas].\n\n1950 signed by the solicitors of a debtor, who was, by reason of his serious illness, unable to sign it, did not c; omply Cmnmissloner -0/ Agdc•dtural with the requirements of section 16 (1) of the Bank-\n\n1,, comc-ta.< ruptcy Act, 1914, which required \"a proposal in\n\nv. writing signed by him.\" The Court of Appeal applied Keshab Chandra the principles of the decision in Hyde v. Johnson( i) and Mandal in In re Whitley Partners Ltd.( 2 ).\n\nIn Luckman Buksh\n\n;;~-;:,.\n\nRoy v. Runjeet Ram Panday(\"), a Full Bench of the Calcutta High Court held that an acknowledgment by a Mooktear was not sufficient for the purposes of section 1 (5) of the Limitation Act (XIV of 1859) which required an acknowledgment signed by the mortgagee. Rankin C. J. held in japan Cotton Trading Co. Ltd. v. Jajodia Cotton Nlills, Ltd.(•) that a demand Jetter signed by the solicitors of the petitioning creditor was not a notice under section 163 of the Indian Companies Act which as it then stood required a demand\" under his hand.\" A similar view was taken by the Rangoon High Court in Ji, fanjeebhai Khataw & Co. v. Jamal Brothers & Co. Ltd.(•) and M.A. Kureshi v. Argus Footwear, Ltd. ( 6 )._ See also Wilsonv. Wallani( 7 ).\n\nInC.T.A.C.T.Nachiappa Chettyar v. Secretary of State for India(•), it was held that the registration of a firm on an application signed by the agent of the partners was ultra vires inasmuch as the rules framed under section 59 of the Income-tax Act required an application signed by at least one of the partners. In Commissioner of Income-tax, Madras v.\n\nSubba Rao (9 ), it was held that by reason of the word\n\n\" personally\" occurring in rule 6 of the Income-tax Rules framed under section 59 of the Income-tax Act, 1922, a duly authorised agent of a partner was precluded from signing on behalf of the partner an application under section 26-A of the Act for registration of the firm.\n\nIn all-these cases the common law rule was not applied, evidently because the particular statutes were held to indicate that the intention was to exclude that rule. This intention was gathered from the use of the\n\n(1) {1836J 2 Bing. (N.C.) 776\n\n(2) (1886) L.R. 32 Ch. D. 337\n\n(3) (1873) 20W.R. 375 (') (1926) I.L.R. 5' Cal._341i\n\n(5) I.L.R. 5 Rang. '83\n\n(6) I.L.R. 9 Rang. 323 (7l (1~80) L.R. 5 Ex. D. 155\n\n(8) (193~ I.L.R. 11 Rang. 380\n\n(9) I.L.R. (19'7) Mad.167\n\nword \"himself\" or \"by him\" or \"under his hand\" 1950 -0r \"personally.\" It is needless to say that such an f Commissionet' intention may _als_o be gathered from the nature o the of Agricultural\n\nparticular statute or inferred from the different provi- Income-tax sions of the statute and the rules framed -thereunder. v.\n\nAs already stated, there are many indications in the Keshab Chandt'a Bengal Agricultural Income-tax Act, 1944, and the Mat rules made thereunder evidencing an intention to Das J. exclude the common law rule in the matter of the -signature of the assessee, appellant or applicant on the return, appeal or application.\n\nThe High Court referred to the case of In the matter of Commissioner of Income-tax, C.P. & U.P. (1 ) and sought to find support for its views from the circumstance that the Court in that case rejected the return not on the ground that it was bad because it was signed by an agent but on the ground that the power of attorney did not authorise the agent to sign\n\nit. It is quite clear that the Court in that case found it easier to decide the case on the latter ground than to enter upon a discussion of the first ground. It is impossible to read that case as an authority for the proposition that the signature of an agent was permissible at all. The Full Bench decision of the Allahabad High ..Court in Deo Narain Rai v. Kukur Bind(~) referred to in the High Court judgment before us does not appear to milit_ate against the views expressed , above. On a construction of section 59 of the Transfer of Property Act it was held that there was nothing in the Act to exclude the application of the common law rule.\n\nThe 011ly provision of that Act on which reliance was placed in establishing such exclusion was section 123.\n\nStanley C. J. pointed out that the language of the last mentioned section was elliptical and was not accurate draughtsmanship and, therefore, it could not be relied upon in construing section 59. The judgment Qf Banerjee J. also makes it clear that he found,\n\nnothing in th.e Act to exclude signature -by an agent and that the words '' on behalf of\" in section 123 were surplusage. -It is quite true that when sigiiature by an agent is permissible, the writing ofthe name Qf\n\n(1) A.IR. (1935) Oudh. 305\n\n(2) (1902) I.L.R. 24 AIL 319.\n\n1950 the principal by the agent is regarded as the signature of the principal himself. But this result only follows Co11l1nissio1ic•r of Agricultural when it is permissible for the agent to sign the name\n\nIncome-tax of the principal. If on a construction of a statute v. signature by an agent is not found permissible then Kcshab Chandra the writing of the name of the principal by the agent\n\nMa1tdal however clearly he may have been authorised by th~\n\nDas 1_ principal cannot possibly be regarded as the signature of the principal for the purposes of that statute. If a statute requires personal signature of a person, which includes a mark, the signature or the mark must be that of the man himself. There must be physical contact between that person and the signature or the mark put on the document.\n\nFa>l Ali/.\n\nThe result, therefore, is that this appeal must be accepted and the question referred to the High Court must be answered in the negative. There will be no order for costs against the assessee and the appellant Commissioner must bear his own costs throughout.\n\nPatanjali Sastri J.\n\nFAZL Au J.-I agree.\n\nPATANJALI SASTRI J.-I agree.\n\nMUKHERJEA J.-I agree.\n\nMukherjea J,\n\nMahajan/.\n\nMAHAJAN J.-The question of law referred to the High Court and answered by it in the affirmative is in these terms :-\" Whether in the circumstances of this case, the declaration in the form of return signed by the illiterate assessee by the pen of his son should be treated as properly signed and a valid return.\" The Hi;; h Court was not called upon to answer the question whether an income-tax return could be validly signed by an agent in the name of the principal ; on the other -hand, the question as framed assumes that the return was signed by the illiterate assessee but that the pen affixing the signature was that of his son. The physical act of putting the mark was made by the pen or possibly by the hand of the son who was not the agent appointed by the father and was not otherwise authorised by him to sign for him.\n\nNo evidence was led and there is nothing whatsoever on the record to establish that this illiterate assessee did not touch the pen or the hand of the son when the signature was affixed on the return. No precise definition of the word \" signature\" is given in the Indian Income-tax Act or in any other law. In the General Clauses Act there is no exhaustive definition of the word. It merely says what the word \"signature\" shall include. It includes the affixing of a mark. In India it is a well known practice that when the executant of a document is illiterate he simply touches the pen wherewith someone else signs his name for him. Reference in this connection may be made to page 972, para. 1659, of Gour on The Law of Transfer. The signature niade in these circumstances is personal signature of the executant. It is his autograph. No question of agency arises in such a situation. This is what seems to have happened here as one can guess from the frame of the question.\n\nBe that as it may, without any enquiry into the circumstances in which the pen of the son affixed the signature of the assessee on the return it could not be assumed that the son acted as the agent of the father and signed his name in that capacity.\n\nIn my opinion the discussion of the question whether an agent can sign a return for an assessee was outside the scope of the question which the High Court was called upon to answer. The answer given in my view was a correct one.\n\nAfter considerable thought I am disinclined to reverse the decision of the High Court by placing an interpretation on the question which it does not bear.\n\nIn an ex parte hearing we had not the advantage of hearing any arguments in support of the view taken by the High Court as the respondent did not appear.\n\nIt is unnecessary to express any opinion on the question whether an agent can sign for the principal a form of return under the Indian Income-tax Act as that enquiry is outside the scope of the question referred to the High Court as already pointed out.\n\nIn the absence of any material to the contrary I am satisfied that the assessee signed the return\n\nCo111nr.isslo11c,·· of Agrirnlturaf\n\nlncottw-tax\n\nKcs/iab Clumdr<&\n\nMandal\n\nMahajan].\n\nCmn11iissioner -of Agricultural\n\nloco1nc-tax\n\nKesl1ab Chandra\n\n1lla11dal\n\n}lfnhajan J.\n\npersonally. If the Income-tax Officer felt that the assessee had not touched the pen or the hand of the person who put the signature on the return he should have called upon the assessee to appear before him and ascertain from him the circumstances in which the son's pen was used for the signature. In In the matter of Commissioner of Income-tax, C.P. & U.P.('), it was observed that it is the duty of the Income-tax Officer before he accepts a return signed by an agent to satisfy himself about the authority of the agent to do so.\n\nIn my opinion, it is equally the duty of an Income-tax Officer before he rejects a return of an illiterate assessee or a person such as a leper, to satisfy himself that there was no physical contact of the person with the mark or the signature put on the form.\n\nI agree with my brother Das that there should be physical contact between the person and the signature or the mark put on the document, but I am afraid I cannot agree with him that in this case that has not happened. The question to a certain extent assumes the contact of the assessee with the pen of his son when it states . that the illiterate assessee's signature was put with the pen of the son.\n\nBe that as it may, that circumstance has not been eliminatel;·.ces 01 In my opinion, the functions and duties of the Bharat ia111, cu.\n\nIndustrial Tribunal are very much like those of a body discharging j\\;1dicial fuqctions, although it is not -a /{auia c .f.\n\nCourt. The rules framed by the Tribunal require evidence to be taken and witnesses to be examined, cross-examined and re-examined. The Act constituting the Tribunal imposes penalties for incorrect statements made before the Tribunal. While the powers of the Industrial Tribunal in some respects are different from those of an ordinary civil Court and it has jurisdiction and powers to give reliefs which a civil Court administering the law of the land (for instance, ordering the reinstatemwt of a workman) does not possess in the discharge of its duties it is essentially working as a judicial body. The fact that its determination has to be followed by an order df the Government which makes the award binding, or that in cases where Governme_nt is a party the legislature is. permitted to revise the decision, or that the Government is empowered to fix the period of the operat_ion of the award do not, to my mind, alter the nature and character of the functions of the Tribunal. Having considered all the provisions of the Act it seems to me clear that the Tribunal is discharging functions very near those of a Court, although it is not a Court in the technical sense of the word.\n\nThe next question is whether under 2.rtide 136 the Court hris jurisdiction to entertain an application for leave to appeal against the decision of such a body .. It is not disputed that the Court has power to issue writs of certiorari and prohibition in re.3pect of the work\n\nof the Tribunal. The only question is whether there is a right of appeal also. In my opinion the wording of article 136 is wide enough to give jurisdiction to the Court to entertain an application for leave to appeal, although it is obvious that having regard to the nature of the functions of the Tribunal, this Court will be very reluctant to entertain such an application.\n\n1950 As regards the merits, I do not think this is a case\n\nBharat Bank Ud. in which I would admit the appeal.\n\nThe aggrieved parties may apply for redress by adopting other appropriate proceedings. The appeal therefore should be dismissed with costs.\n\nv. ' Eu1filoyecs of Bharat B1111k Ltd.\n\nFazl AliJ.\n\nF AZL Au J .-The important question to be decided in this case is whether the present appeal lies at all to this Court. The question is not free from difficulty, but on the whole I am inclined to think that the appeal does lie. It is fully recognized that the scope of article 136 of the Constitution is very wide, but the significance of the language used in the section can be appreciated only by comparing it with the articles which precede it. Article 132 deals with the appellate jurisdiction of the Supreme Court in cases involving a substantial question of law as to the interpretation of the Constitution, and the words used in that article are: \"appeal. ..... from any judgment, decree or final order.\" Article 133 deals with appeals in civil matters and the same words are used here also. Article 134 deals with appeals iri criminal matters, and the words used in it are: \"appeal.. .... from any judgment, final order or sentence.\" In article 136, the words \"judgment\" and \"decree,\" which are used in articles 132 and 133 are retained. Similarly, the words \"judgment\" and \"sentence\" occurring in article 134 are also retained. But the expression \"final order\" becomes \"order,\" and, instead of the High Court, reference is made to \"any court.\" Certain other words are also used in the article which seem to me to have a special significance, these being \"determination,\" \"cause or matter\" and \"tribunal.\" It is obvious that these words greatly widen the scope of article 136.\n\nThey show that an appeal will lie also from a determination or order of \"any tribunal\" in any cause or matter.\n\nCan we then say that an Industrial Tribunal does not fall within the scope of article 136 ? If we go by a mere label, the answer must be in the affirmative.\n\nBut we have to look further and see what are the main functions of the Tribunal and how it proceeds to discharge those functions.\n\nThis is necessary because\n\nI take it to be implied that before an appeal can lie to 1950 this Court frcm a tribunal it must perform some kind Bl B k Ud.\n\n1 of judicial function and partake to some extent of the wrat /n\n\ncharacter of a Court.\n\nEmployees of Now there can be no doubt that the Industrial Bharat Bank ua.\n\nTribunal has, to use a well-known expression, \"all the\n\nC · Fazl Ali J. trappings of a ourt \" and performs functions wh1oh cannot but be regarded as judicial. This is evident from the rules by which the proceedings before the Tribunal are regulated. It appears that the proceeding before it commences on an application which in many respects is in the nature of a plaint. It has the same powers as are vested in a civil Court under the Code of Civil Procedure when trying a suit, in respect of discovery, inspection, granting adjournment, reception of evidence taken on affidavit, enforcing the attendance of witnesses, compelling the production of documents, issuing commissions, etc. It is to be deemed to be a civil Court within the meaning of sections 480 and 482 of the Criminal Procedure Code, 1898. It may admit and call for evidence at any stage of the proceeding and has the power to administer oaths. The parties appearing before it have the right of examination, cross-examination and re-examination and of addressing it after all evidence has been called.\n\nA party may also be represented by a legal practitioner with its permission. .\n\nThe matter does not rest there. The main function of this Tribunal is to adjudicate on industrial disputes which implies that there must be two or more parties before it with conflicting cases, and that it has also to arrive at a conclusion as to how the dispute is to be ended. Prima f acie, therefore, a Tribunal like this cannot be excluded from the scope of article 136, but before any final conclusion can be expressed on the subject certain contentions which have been put forward on behalf of the respondents have to be disposed of..\n\nThe first contention is that the Industrial Tribunal cannot be said to perform a judicial or quasi-judicial function, since it is not required to be guided by any recognized substantive law in deciding disputes\n\nBharat Bani: Ud,\n\nE111j, loyees of Bharat 8.?nk Ud\n\nFaz/ Ali J.\n\nwhich come before it. On the other hand, in deciding industrial disputes; it has to override contracts and create rights which are opposed to contractual rights.\n\nIn these circumstances, it is said that the very questions which arose before the Privy Council in Moses v.\n\nParker, Ex parte 1'1oses (') arise in this case, these questions being:-\n\n(1) How can the propriety of the Tribunal's deGision be tested on appeal, and\n\n(2) \\Vhat are the canons by which the appellate\n\nCourt is to be guided in deciding the appeal?\n\nTheir Lordships of the Privy Council undoubtedly felt that these were serious questions, but they had no hesitation in saying that \"if it were clear that appeals ought to be allowed. such difficulties woul_d doubtless be met somehow.\" This, in my opinion, i? a sufficient answer to the difficulty raised. The Tribunal has to adjudicate in accordance with the provisions of the Industrial Disputes Act. It may sometimes override contracts, but so can a Court which has to administer law according to the Bengal or Bihar Moneylenders Act, Encumbered Estates Act and other similar Acts. The Tribunal has to observe the provisions of the special law which it has to administer though that law may be different from the law which an ordinary Court of justice administers.\n\nThe appellate Court, therefore, can at least see that the rules loy.zes of acted in ny other manner, in an arbitrary or despotic Bharat Bank u.1. fashion.\n\nIn such circumstances no question arises of h. C · f 'b l d MalwjanJ. t 1s ourt constituting 1tsel mto a tn una an assuming powers of settling a dispute. All that the Court\n\nwhen it entertains an appeal would do is to quash the award and direct the tribunal to proceed within the powers conferred on it and approach the adjudication of the dispute according to principles of natural justice.\n\nThis Court under article 136 would not constitute itself into a mere court of error. Extraordinary powers have to be exercised in rare and exc.eptional cases and on well known prindples. Considered in the light of these. principles, there is no insuperable difficulty in the present case of the nature pointed out in the passage cited above. It was conceded that the High Court could exercise powers under section 226 and could quash an award but it was said that under article 136 this power should not be exercised in an appeal. I do not see why ? Particularly when after the High Court has passed any decision on an application made to it in exercise of the powers under section 226, that decision could be brought to this Court in appeal. In the matter of an industrial dispute where expedition is the crux of the matter, it is essential that any abuse of powers by such tribunals is corrected as soon as possible and with expedition.\n\nIt may be mentioned that it is no novel practice for a court empowered to grant special leave to exercise its powers even though there may be intermediate rigl).ts of appeal or other remedies available, if it is considered essential to do so in extraordinary situations. Vide Bentwick's Privy Council Practice, 3rd Edn., page 125.\n\nTherein it is stated as follows :- \"In several cases from Jamaica, the Privy Council granted leave to appeal to the Queen in Council dire\"Ctly from the Supreme Court, ,, ithout an intermediate appeal (which would have been attcuded with much\n\n1950 expense and delay) to the Court of Error in the island,\n\n81 tB k Ltd there being in each of those cases manifestly some point iara /\" of law raised which deserved discussion.\"\n\nEmployees of Th I\n\nR B tt( 1 ) H . 81 1 8 k Lt 1 e cases were n e arne , arrison v. •ara_::_n '\"Scott(•), and Attorney-General of ]amacia v. 11fander- Mahajan J. son {3 ). The phraseology employed in article 136 itself justifies this course. The article empowers this Court to grant special leave against sentences or orders made by any court. In all other articles of the Constitution right of appeal is conferred against final decisions of the highest . court of appeal in the country but under this article power is given to this Court to circumvent that procedure if it is considered necessary to do so.\n\nI am, therefore, of the opinion that the mere circumstance that a remedy i.n the nat, ure of a writ of certiorari is open to the petitioners does not necessarily lead to the conclusion that the power of this Court under article 136 is circumscribed by that circumstance. \\Vhenever judicial review is permissible in one form or another, this Court as the highest Court in the land can exercise its special powers and circumvent ordinary procedure by granting special leave.\n\nWhat it has to ultimately decide it can decide earlier.\n\nI now proceed to examine some of the cases to which reference was made by Mr. Alladi.\n\nThree Australian cases were cited which concern the construct.ion of sections 51, 71 and 72 of the Australian Constitution (63 and 64 Viet., c. 12).\n\nSection 72 requires that every Justice of the High Court and every Justice of any other Court created by the Parliament of the Commonwealth shall snbject to the power of removal contained in the section be appointed for life. Section 71 confers the whole judicial power of the Commonwealth upon the Courts therein mentioned and no other tribunal or body can exercise that power.\n\nEvery Court referred to in section 71 has to be constituted in the manner provided by section 72. The question in these 'cases was as to the meaning of the phrase \"judicial power of the Commonwealth.\" Similar\n\n(2J 5 Moo. 357. \\3) 6 Moo. 239.\n\n...\n\nphraseology has not been used in any part of the Con- 1950 stitution of India and in these circumstances t _is di~- Bilamt ua,,•k Utf. cult to derive any assistance from these dec1s1ons m v. solving the problem before us.\n\nThe Constitution of Bmptoy, csof India is not modelled on the Constitution of Australia. Blwmt Uauk I.id. and that being so, any observations ipade in decisions Me1/1ajm1 J. given under that Constitution cannot be held to be a safe guide in the interpretation of language employed in a Constitution differently drafted. .\n\nThe first of these cases is Waterside Worhers' Federation of Australia v. ]. W. Alexander Ltd. ( 1 ).\n\nTherein it was held that the power conferred by the Commonwealth Conciliation and Arbitration Act 1904- 1915 upon the Commonwealth Court of Conciliation and Arbitration to enforce awards made by it is part of \"the judicial power of the Commonwealth \"within tRe meaning of section 71 of the Constitution, and can . only be vested in the courts mentioned in that section.\n\nMr. Alladi placed reliance on a passage at page 467 in the judgment of Isaacs and Rich JJ., which reads as follows:- , \" The arbitral part of the Act, therefore, is quite within the power of pl. xxxv, and is not intended by the Act to be exercised by an ordinary Court of Justice, which, it is suggested, Parliament by some strange perversity proceeded to destroy at birth. It is true that enforcement provisions are found ........ But all this was in imitation of the State Acts of Arbitration, and not in reliance on the .Judicature Chapter of the Federal Constitution. The arbitral portion of the Act i;;, in our opinion, perfectly good, subject to its severability from any other portion which may be bad.\"\n\nIt was argued that the Industrial Tribunal here was an arbitration tribunal of the same kind as in\n\nustralia and exercises similar functions. It is ho\"·- ever pertinent to observe that the phraseology employed in section 15 of the Indian Act is different from that used in the Australian statute. The Indian statute has constituted different bodies for different purposes. An Industrial Tribunal has been constituted\n\n(1) 25 C.L.R; 4.34.\n\nBharat .1'1arik Ud.\n\nEniployces of Bharat Han}~ l.td.\n\nonly to discharge one function of adjudication. It is not described as an arbitral tribunal. The Act has avoided the use of the word \" arbitration\" either in its preamble or in any of its relevant provisions though the determination has been named as an award. In these circumstances it is unsafe to seek any guidance from observations made in this case.\n\nThe next case to which reference was made is Rola Co. (Australia) Proprietary Ltd. v. The Commonwealth\n\n( 1 ).\n\nThe question here was whether the Women's Employment Board constituted under the Women's Employment Act, 1942, did not exercise the judicial power of the Commonwealth. It was held that the Board exercised functions which were arbitral in character. Emphasis was laid on a passage occurring in page 198 of the report which reads as \"follows:-\n\n\"An industrial award lays down rules of conduct for the future. 1t does not purport to ascertain and enforce existing rights ; it js directed to the creation of new rights. It is urged on behalf of the plaintiff that a determination of the Committee does not <'reate a rule of conduct binding the parties for the future, but that it authoritatively determines a possibly controverted question of fact and that the making of such an authoritative determination is necessarily an exercise of judicial power. Reference is made to the frequently quoted statement of Griffith C. J. in Huddart Parker & Co. Pty. Ltd. v. lvloorehead (2 ), approved by the Privy Council in Shell Co. of Australia Ltd. v.\n\nFederal Commissioner of Taxation (8 ) :-\n\n\" I am of opinion that the words 'judicial power' as used in section 71 of the Constitution mean the power which every sovereign authority must of necessity have to decide contr;:iverises between its subjects or between itself and its subjects, whether the rights relate to life, liberty or property. The exercise of this power does not begin until some tribunal which has power to give a binding and authoritative decision (whether subject to appeal or not) is called upon to take action.\"\n\n(I) 69 C.L.R. 185.\n\n(2) 8 C.L.R. 330 at 357.\n\n(3) [1931] A.C. 275.\n\nReg. SC gives Committees power: to decide con- 195·0 troversies between subjects relating to thei~-ights :ind Bharat Bank ur1. the regulation purports to make those dec1s1ons bmd- '\" ing and authoritative.\n\nEmployees of I am not. satisfied that the words of Griffith C. J. Bliarat Rank LI.I. are properly interpreted when it is said that they mean Maliaja,, J. that a power to make binding and authoritative decisions as to facts is necessarily judicial power. I direct attention to the concluding words-\" is called upon to take action. \" In my opinion these words are directed to action to be taken by a tribunal which has power to give a binding and authoritative decision. The mere giving of the decision is not the action to which the learned Chief Justice referred. If a body which has power to give a binding and authoritative decision is able to take action so as to enforce that decision, then, but only then, according to the definition quoted, all the attributes of judicial powr are plainly present.\n\nI refer to what I say more in detail hereafter, that the Privy Council, in the Shell case (1), in which approval was given to the definition quoted, expressly held that a tribunal was not necessarily a Court because it gave decisions (even final decisions) between contending parties which affected their rights.\n\nIn Huddart Parker's case (2 ), Isaacs J. referred to the.statement of Palles C. B. in R. v. Local Government Board for Ireland (3 ) \"to erect a tribunal into a\n\n•Court' or 'jurisdiction', so as to make its determinations judicial, the essential element is that it should have power, by its determination within jurisdiction, . to im, Pose liability or affect rights.\" \"By this,\" said the learned Chief Baron, \"I mean that the liability is imposed, or the right affected by the determination only, and not_ by the fact determined, and so that the liability will exist, or the right will be affected, although the determination be wrong in law or in fact. It is otherwise of a ministerial power. If the existence of such a power depends upon a contingency, although it may be necessary for the officer to determine whether\n\n(1) [1931] A.O. 275.\n\n(2) 8 C.L.R. 330 at 383.\n\n(3) [1902] 2 I.R. 3~9 at p. 373.\n\n1950 • the contingency has happened, in order to know\n\nBit -;;; k ua whether he shall exercise the power, his determination nra v. \"\" does not bind. The happening of the contingency\n\nRmp1oyccs of may be questioned in an action brought to try the Bharat Bank Ltd. legality of the act done under the alleged exercise of the power. But where the determination binds, al- Mal1/oyces of Bhamt Rani: Ud.\n\nMahajan J.\n\n195fl\n\nB/Jarat Hank f..td.\n\nE11iPloyl'es of Blurrat !Jank l.Jd,\n\niia/iajau J,\n\ntwo members will now constitute the Tribunal. An affidavit with two telegrams annexed was filed before us on behalf of the respondents which disclosed that l\\lr. Chandrasekhar a Aiyar who was one of the members of the Tribunal, in November, 1949, was appointed a melI)ber of the Boundary Commission in Bengal and thattfreother two members sent a telegram to the Labour Ministry asking it to fill up the vacancy or to reconstitute the Tribunal. The advice given by the Ministry was that they could proceed as they were and that the Government would later on, if necessary, fill up the vacancy. We are not concerned whether the advice given was right or wrong. But the fact remains that the Tribunal was never reconstituted and it was not denied that Mr. Chandrasekhara Aiyar is now sitting in the same Tribunal without being again nominated to it and the Tribunal is hearing the same reference under the other issues referred to it.\n\nMoreover, I do not see why after having heard the reference he could not give the award even if he was in Calcutta or sign the award given by the other two members. The idea of three persons hearing a case and two of them deciding it is repugnant to all notions of fairness. It may well have been that the opinion of the third may have influenced the other two or the decision arrived at may have been quite different. It so happened in this case that two members of the Tribunal differed on an important question of law but somehow adjusted their differences and gave a unanimous award. The presence of the third in such a situation may have very vitally affected the result. After a good deal of thought I feel that it would be most dangerous for this Court to condone proceedings of this character. If exceptional powers are not exercised even when a body legally constituted under the statute does not function according to the statute, then they defeat the very purpose of the Constitution.\n\nReference in this connection may be made to the decision of their Lordships of the Privy Council in Fakira v. King Emperor( 1). In that case section 377\n\n(1) A.I.R.1937 P.C.119.\n\nof the Code of Criminal Procedure as modified and as applicable to Hyderabad stood as follows:-.\n\n\"In every case so submitted, the confirmation of the sentence or order passed by the Court of the\n\nH.esident at Hyderabad shall, when such Court consists of two or more Judges, be made, passed and signed by at least two of them.\"\n\nIn Fakira's case the order of confirmation was only made, passed and signed by one of them, though the Court of the Resident consisted of two Judges.\n\nTheir Lordships held that the peremptory provisions of section 377 had not been complied with and that the sentence passed had not been validly confirmed. The appeal was allowed and the case was remitted to the Court of the Resident. The provisions of section 18 of the Industrial Disputes Act are also of a peremptory nature. Reference may also be made to a case arising under the Bar Councils Act reported in 1 n re An Advocate, Madras( 1 ), where one member of the tribunal under that Act had died and had not signed the report.\n\nIt was held that the tribunal ceased to be properly constituted and that the report could not be considered.\n\nFor the reasons given above I would quash this award and direct that the Tribunal which is still functioning should readjudge item 18 of the reference and then submit its award on this point to Government.\n\nThe employees cannot be held responsible for the method of procedure adopted by two members of the Tribunal. Each party will have to bear their own costs in this Court. The appeal is allowed to the extent indicated above.\n\nJ 950\n\nBlzarat Bank Ud.\n\nEmpio yees of Bharat Batik Ud,\n\nMalzajan}.\n\nl UKHERJ EA J .-This appeal, which has come up Jiuld1crjea J. before us on special leave, is directed against an award made by the All India Industrial Tribunal, dated the 19th of January, 1950.\n\nThe Tribunal was constituted by the Central Goyernment under section 7 of the Industrial Disputes Act and a large number of disputes\n\n(1 A.LR. 19'2 Mad. 267.\n\n1900 between several Banking companies and their em-\n\nB ployees were referred to it for adjudication. Amongst B/, arat ank Ud, h B k · ' h B v t ese an mg compames were t e harat Bank Empto; ees of Limited, the appellants before us, and the disputes Bharat Bank ua. between them and their employees, who are respondents in this appeal, related inter alia to a number of M\"khccj, a J. cases of retrenchment and victimization which the latter alleged against the former.\n\nThe Tribunal held its enquiry in Delhi in respect to the cases which were connected with the Ddhi Branch of the appellants and as a result of the same, made their award on 19th January, 1950, holding that 26 persons, who were employees under the appellants, were improperly dismissed. by the latter and should be reinstated. Further directions were given in the award regarding the salaries and allowances that were to be paid to the dismissed employees.\n\nThis award was declared to be binding in terms of the provisions of sections 15 and 19 of the Industrial Disputes Act by the Central Government on 30th of January, 1950, and it was directed to remain in operation for a period of one year. It is against this award that the present appeal has been preferred.\n\nOn behalf of the Indian Union which appeared as an intervener in this appeal, as also on behalf of the respondents, a preliminary objection was taken challenging the competency of the appeal.\n\nThe contention put forward by Sir Alladi Krishnaswami Aiyar, who appeared for the intervener, in substance, is that article 136 of the Indian Constitution, under which special leave was prayed for and obtained by the appellants in this case, does not contemplate or include within its scope an appeal against an award of an Industrial Tribunal which is not vested with, and cannot exercise, judicial powers, and the decision of which cannot, therefore, rank as a judicial determination.\n\nThe Industrial Tribunal, it is said, is an administrative body exercising quasi-judicial functions and this Court cannot be called upon to exercise the powers of an appellate Court in respect to the decision of a tribunal which is really a part of the administrative machinery of the Government.\n\nS.C.R.\n\nSUPRE1IE COURT REPORTS 505\n\nIn reply to this objection, it has been urged by Sir Tek Chand that the Tribunal constituted under the Industrial Disputes Act is really and in substance, a Court or judicial tribunal which is invested with the power and authority to exercise judicial functions; and in any event, the language of article 136 of the Constitution is wide enough to include an appeal from the award or determination of any tribunal, be it judicial or not.\n\nThere are two questions which require consideration on this preliminary point. The first is, whether the award or decision of an Industrial Tribunal constituted under the Industrial Disputes Act is a judicial decision in the proper sense of the expression or is it the pronouncement of an administrative or quasi-judicial body which may exercise some of the functions of a Court of law but is really not so? The other question turns upon the construction to be put upon article 136 of the Constitution particularly on the meaning to be given to the words 'tribunal' and ' determination ' occurring therein ; and the question is whether the language is wide enough to include an adjudication or award of an Industrial Tribunal.\n\nAs regards the first question, it is to be noticed that owing to the intricate and complex system of Government that exists in a modern Btate and the vast expansion of social legislation of all sorts that have taken place in England and in other countries including our own, within the last few decades, the so-called administrative and quasi-judicial tribunals have come to be a permanent feature of our social and political system.\n\nThey function as adjudicating bodies in disputes concerning a large number of economic and social affairs.\n\nIn a sense they are governmental bodies appertaining to the executive and not to the judicial branch of the State, though in various matters they are armed with judicial po\\vPrs analogous to those normally carried out by Courts of law.\n\nThe question is, what are the tests or distinguishing feaJures, if any, which distinguish an administrative tribunal from a Court of law.\n\nOnce we are able to formulate these tests, we would be\n\nBharat Batill Ltd.\n\nv. . Emptoy\"s of Bharat Ba1tk Ud.\n\n.ll 11khafca J.\n\n1950 in a position to determine whether a Tribunal function-\n\n& 8 k Ltd ing under the Industrial Disputes Act is or is not a arat /\" • judicial tribunal properly so called.\n\nEmployees of.\n\nWhether a particular function or activity is judi- Bharat Ba11k ua. cial or not is often a difficult question to decide.\n\nThe - point was elaborately dealt with by Lord Sankey who Mukherjca J.\n\nC delivered the judgment of the Privy ouncil in Shell Co. of Australia v. Federal Commissioner of Taxation\n\n( 1 ) •. The question raised in that case was whether the Board of Review, which was set up in 1925 under the Commonwealth Income Tax legislation, was a Court exercising judicial powers of the Commonwealth ? The High Court of Australia decided by a majority that it was an administrative and not a judicial tribunal and this majority judgment was affirmed in appeal by the Privy Council. Lord Sankey remarked in course of his judgment that \" the decided cases show that there . are Tribunals which possess many of the trappings of a Court but which, nevertheless, are not Courts in the strict sense of exercising judicial power.\n\nMere externals do not make a direction by an ad hoc tribunal to an administrative officer, an exercise by a Court of judicial power.\" The actual decision in the case rested on the ground tbat the Board of Review could not be a judicial tribunal, as its orders were not conclusive for any purpose whatsoever. The decision, it sc:ems, has only a negative value. The Lord Chancellor enumerated a series of negative propositions which stated inter alia that a tribunal is not necessarily a Court because two or more contending parties appear before it, nor because it hears witnesses, or gives a final decision which affects the right of the parties. What the real or positive test is, the Privy Council did not care to formulate, though the judgment quoted, with approval, certain observations of Griffith C. J. given in another Australian case, namely, Huddart Parker & Co. v.\n\nMoorehead(•), which to some extent neutralised the effect of the negative tests enumerated in the judgment.\n\nThe observations of Griffith C.]. are as follows:-\n\n(1) (1931] A.O. 276.\n\n(2) 8 C.L.R. 330, at p. 357.\n\n\" lam of opinion that the words • judicial power' ...... mean the power which every sovereign authority must have of necessity to decide controversies between its subjects, or between itself and its subjcets, whether the rights relate to life, liberty or property. The exercise of this power does not begin until some tribunal which has power to give a binding and authoritative decision (whether subject to appeal or not) is called upon to take action.\"\n\nIt may be stated that the authority to hear and decide on evidence between a proposal and an opposition though it is one of the most essential of judicial powers, may be present is an administrative tribunal also. In the majority of cases, administrative bodies are also armed with the powers of a Court of Justice in summoning withesses, administering oaths and punishing disobedience to its order made for the purpose of effecting its enquiries (1 ). As a matter of fact, it is usual to find that those features which were at one time attached exclusively to activities carried on in a Court of law are being extended to committees, commissions or boards conducting enquiries under directions or supervisi:m of the Government. The presence or absence of these features, therefore, does not furnish any conclusive test to determine whether a particular body is a judicial boay or not. In the observations of Griffith C. J. quoted above, the learned Chief Justice laid stress on the power to make a binding and authoritative decision as the essential element in the exercise of judicial power. The exact meaning and implication of these expressions were the subject mat~\n\nter of discussion in later Australian cases and it was held by the majority of the Judges in Rola Co. (Australia) Pty. Limited v. The Commonwealth (2 ), that they do not simply mean that if an authority is given power to dec!ide controverted questions of fact and its determination is made binding on the parties to the controversy, it would be sufficient to show that judicial power was entrusted to such authority. A determination, it was pointed out, may be binding on the parties\n\n(1) Vide W F. O'Co1'1'or v. Wald1'01' [1935) A.C. 67 at p. 82.\n\n12) 69 C.L.R. 185. 65 I\n\nBl!mat Bcmk Uct.\n\nEmployees of Bharat Ba11/1 LU\n\nMukherjea J.\n\n1 so in the same sense as a contract is binding on them.\n\nE•1 -n- 1 vVhat is necessary is that the determination by its own ''\"'\"' \"\"'' .ta. f d h th d · t t l't f v. orce an wit out e a1 or ms rumen a 1 y o any Emp1oym of other authority or power must affect the rights and w .. nat Hauk ua. obligations of the parties ; or in other words, the decision itself irrespective of the facts decided, must create .llahajauJ. rights and impose obligations; and it should be enforceable as such under the ordinary law of the land.\n\nThis undoubtedly is one of the fundamental tests which distinguishes a judicial body from one which exercises administrative or quasi-judicial functions.\n\nSometimes the decision or report of the administrative tribunal becomes operative after it is accepted by the head of the department under which the tribunal conducted its enquiries and it is then enforced by some sort of administrative process; or it might create rights between the parties which have to be sued upon in the ordinary way in a Court of law and it is only on the basis of a judgment or decree that is obtained in such action that relief could be had by the party.\n\nThe essence of judicial determination is that nothing further remains to be done except thP, enforcement of the judgment, a step which is compelled automatically by the law of the land.\n\nThe other fundamental test which distinguishes a judicial from a quasi-judicial or administrative body is that the former decides controversies according to law, while the latter is not bound strictly to follow the law for its decision. The investigation of facts on evidence adduced by the parties may be a common feature in both judicial and quasi-judicial tribunals, but the difference between the two lies in the fact that in a judicial proceeding the Judge has got to apply to the facts found, the law of the land which is fixed and uniform.\n\nThe quasi judicial tribunal on the other hand gives its decision. on the differences between the parties not in accordance with fixed rules of law but on principles of administrative policy or convenience or what appears to be just and proper in the circumstances of a particular case. In other words, the process employed by an administrative tribunal in coming to its decision i.s not what is known as 'judicial\n\nprocess' ( i ). Sir Maurice Gwyer in his deposition be- 1950 fohreEthe\n\n1 ohmPmit 1 ee on im 1\n\n s9t2e9r' s Pt otwdersthappo_i, nted1 by Bharut~--;;,, k Ud. t e ng is ar iament m s a e at a c ear v. distinction is to be drawn between judicial and quasi- Employm of judicial powers.\" The 'judicial power' was defined Bharat Bank u by the witness as a power to decide a question of legal right in a dispute between parties involving either a Muhh\"rj<'n I finding of fact or the application of a fixed rule or principle of law or involving both. \" The quasi-judicial power,\" he defined as meaning \"the power of giving decisions on questions of differences of an administrative and not justiciable character which cannot be determined by reference to any fixed law or principle of law but are matters of administrative discretion and judgment\" ( 11 ). In Cooper v. Wilson (3), Scott L. J. quoted with approval and adopted as the basis of his judgment the followfog passage from the report of the above committee :\n\n\" A true judicial decision presupposes an existing dispute between two or more parties, and then involves four requisites :-(1) The presentation (not necessarily orally) of their case by the parties to the dispute ; (2) if the dispute between them is a question of fact, the ascertainment of the fact by means of evidence adduced by the parties to the dispute and often with the assistance of argument by or on behalf of the parties on the evidence ; (3) if the dispute between them is a question of law, the submission of ltgal argument by the parties; and (4) a decision which disposes of the whole matter by a finding upon the facts in dispute and an application of the law of the land to the facts so found, including where required a ruling upon any !disputed question of law.\n\nA quasi-judicial decision\n\n(qually presupposes an existing dispute between two\n\nor more parties and involves (1) and (2) but does not necessarily involve (3) and never involves (4).\n\nThe place of (4) is in fact taken by administrative action, the character of which is determined by the Minister's free choice.\"\n\n(1) See Robson's Justire and Administrative Law, p. H.\n\n(2) Vide Committee of Minister's Powers, Minutes of Evd., Vol. II, pages 15-16 and also Robson's Justice and Administrative Law, p. 319.\n\n(3) (1937] 2 K.B. 309.\n\nBl1arat Bank I..td.\n\nE1up!oyc.'s of B.'iarat Baul: Ltd.\n\n.\\l11kherjec1 /\n\nIn our opinion these statements correctly bring out the distinction between a judicial tribunal and an administrative body which exercises quasi-judicial functions.\n\nThese being the essential features which distinguish the two classes of tribunals, we would have to ascertain with reference to the provisions of the Industrial Disputes Act, which class or category of tribunals an Industrial Tribunal comes under.\n\nThe object of the Industrial Disputes Act, as set out in the preamble, is \"to make provisions for investigation and settlement of industrial disputes and for certain other purposes hereinafter appearing.\" The word \"settlement\" suggests the idea of establishing compromise between the interests of disputing parties.\n\nThere are three classes of authorities provided for by the Act who are entrusted with the powers and duties of investigation and settlement of industrial disputes. First of all, there are conciliation officers or Boards of Conciliation, whose duties mainly are to induce parties to come to a fair and amicable settlement amongst themselves. Secondly, there are Courts of Enquiry and though they are described as Courts, their duties end with investigation into the matters referred to them and submitting reports thereupon to the appropriate Government. Lastly, there are Industrial Tribunals composed of independent persons whn either. are or had been Judges of a High Court or District Judges or are qualified for appointment a, High Court Judges.\n\n It will be seen from the descriptions given above that the Board of Conciliation or Court of Enquiry constituted under the Industrial Disputes Act coulq, on no account, be regarded as judicial tribunals. To enable them to investigate facts they are however armed with certain powers of compelling attendance of witnesses and production of documents etc_ These provisions are to be found in section 11 of the Act.\n\nThe significant thing to note is, that there is no distinction made in this respect between Conciliation Boards and Courts of Enquiry on the one hand and Industrial Tribunals on the other. The same powers are conferred\n\non the three classes of authorities without any distinc- 1950 tion whatsoever and sub-section (3) of section 11 further Bharat Bank UJ.\n\nIays down that any .enquiry ?r investigation by a v.\n\nBoard, Court of Enqmry or Tribunal shall be deemed Employees of to be a judicial proceeding within the meaning of sec- Bharat Bank UJ. tions 193 and 228 of the Indian Penal Code. This means that proceedings before an Industrial Tribunal .\\Tutdwr;\"a J. -0r for the matter of that before the other two bodies also could be deemed to be judicial proceedings only for certain specified purposes. The express provision making the proceedings judicial proceedings for those purposes only emphasises that they are not judicial proceedings otherwise. Under section 15 (1), the Industrial Tribunal has got to submit its award to the appropriate Government and sub-section (2) lays down that on receipt of such an award, the appropriate Government shall by order in writing declare the award to be binding. A different provision has been made in regard to cases where the Government itself figures as a party to the dispute. In such cases. if the Government considers it inexpedient On public grounds to give effect to the award either in whole or in part, it may, at the earliest opportunity, lay the award for consideration before the Provincial or Central Legislative Assembly as the case may be and the Legislative Assembly may by its resolution .confirm, modify or reject the award.\n\nAfter the resolution is passed, the Government is to declare the award so confirmed or modified to be binding [see sub-section (3)]. Sub-section (4) of section 15 expressly lays down that an award declared to be binding under any two of the previous sub-sections shall not be called into question in any manner whatsoever. The Government is not merely to declare the award binding but under section 19 (3), it has got to specify the date when the award would come into force and also to fix the period during which it would remain binding, and this period shall not exceed one year.\n\nIt will be seen, therefore, that there is nothing in the Industrial Disputes Act from \\vhich it could be inferred that the Industrial Tribunal really functions as a Court exercising judicial functions.\n\nRegarding\n\nBharat Bank Ud.\n\nBr11Ployees of Blzarat Bank Ltd.\n\nthe trappings or the external indicia of a Court, its position is almost the same as that of the Board of Conciliation or Court of Enquiry and Bakshi Sir Tek Chand concedes that the latter are not judicial tribunals at all. The powers of an Industrial Tribunal are certainly wider than those of the other bodies, but it has no power to make a final pronouncement which would proprio 11igore be binding on, and create rights and obligations between the parties. It is for the appropriate Government to declare the award to be binding and the part which the Government plays in such matters is not a mechanical part merely, for the award can really become operative only when the date of its commencement and the period of its duration are fixed, and it is for the Government and Government alone to fix the same. With regard to the other class of cases, where the Government itself is one of the parties to the dispute, the position is still worse .. An award in such cases is always subject to the contingency of being rejected or modified by the legislature before whom it could be placed for.consideration at the option of the Government. Where a contingency like this is attached to an award, it can never be regarded as a final or binding decision which is of the essence of a judicial proceeding. The fact that in cases of disputes between private employers and their workmen, the Government has to accept the award as it is, makes no difference in principle.\n\nPossibly, this rule was made in con sideration of the status and training of the people who constitute the Tribunal, but nevertheless the determination cannot acquire any authority or force, so long as the appropriate Government does not make the declaration and fix the time of its operation as mentioned above.\n\nIn regard to the other class of awards, where the Government is one of the disputing parties, the award on the face of it is neither the final nor the authoritative pronouncement on the matter in dispute, and it is always in the powers of one of the disputing parties to subject it to further scrutiny at the hands of the legislature who can reject the whole award or effect such changes in it as it considers proper.\n\nThis shows the real naturn of the Tribunal and it is not and\n\nould not be suggested that the Industrial Tribunal is a Tribunal which exercises judicial functions when the dispute is only between private employers and their workmen, and it ceases to be such when the employer is the Government itself.\n\n\\Ve would now examine the process by which an Industrial Tribunal comes to its decisions and I have no hesitation in holding that the process employed is not judicial process at all.\n\nIn settling the disputes between the employers and the workmen, the function -of the Tribunal is not confined to administration of justice in accordance with law. It can confer rights and privileges on either party which it considers reasonable and proper, though they may not be within the terms of any existing agreement.\n\nIt has not merely to interpret or give effect to the contractual rights and obligations of the parties. It can create new rights and obligations between them which it considers essential for keeping industrial peace.\n\nAn industrial dispute as has been said on many occasions is nothing but a trial of strength between the employers on the one hand and the workmen's organization on the other and the Industrial Tribunal has got to arrive at some equitable arrangement for averting strikes and lock-outs which impede production of goods and the industrial development of the country.\n\nThe Tribunal is not bound by the rigid rules of law.\n\nThe process it employs is rather an extended form of the process of collective bargaining and is more akin to administrative than to judicial function.\n\nIn describing the true position of an Industrial 'l'ribunal in dealing with labour disputes, this Court in Wes tern India Automobile Assoct'.ation v.\n\nIndustrial Tribunal, Bombay, and others( 1 ) quoted with approval .a passage from Ludwig Teller's well known work on the subject, where the learned author observes that \"industrial arbitration may involve the extension of existing agreement or the making of a new one or in\n\ngeneral the creation of new obligations or modification of old ones, while commercial arbitration generally\n\n(1) [1949] F. C.R. 321 at p. 345.\n\nBharat Bank Lt.I.\n\nEmployees of Bharat Bank Ltd.\n\nMahajan].\n\n195o concerns itself with interpretation of existing obliga-\n\nBharat 8 \"'''' Ltd. hons ad disputes rdating to existing agreements. \"\n\n\"· The views expressed m these observations were Employees of adopted in its entirety by this Court. Our conclusion, Bhurat Ba\"'' Ud. therefore, is that an Industrial Tribunal formed under the Industrial Disputes Act is not a judicial tribunal\n\n~Inkhnjn two words, namely, \"determination\" and \"tribunal\" used in the article. Does the word \"tribunal\" mean a judicial tribunal only and is the expression \"determination\" restricted to what is known as \"judicial determination\"?\n\nSir Alladi's contention is that in interpreting these words we should follow the principle of ejusdem\n\ngen.ris. \"Determination,\" he says, must be taken to be judicial-determination which is of the same nature as decree, judgment, order or sentence; and ... tribunal \" associated with the word \" Court \" could not but\n\nmean \"judicial tribunal.\"\n\nBakshi Sir Tek Chand on the other hand lays stress on the fact that the word \" determination \" was not in the original draft Constitution, and it was, subsequently added, presumably with a vjew to widen the scope of article 136 and include within it, the decisions of administrative and quasi-judicial tribunals also.\n\nHe :points out that according to the definition given in section 2 (b) of the Industrial Disputes Act, \"award \" means a determination either interim or final of an industrial dispute by an Industrial Tribunal.\n\nThere is undoubtedly something to be said in favour of both these views.\n\nThe difficulty, in our opinion, arises from the fact that neither of these terms \"determination \" or \" tribunal\" has a fixed or definite connotation in ordinary language. The word \" determination'' means and signifies the ending of a controversy or litigation by the decision of a Judge or Arbiltrator. It cannot be said that it is restricted exclusively to proceedings in court. Likewise, the dictionary meaning of the word \" tribunal \" is ' court of justice' or 'seat of a Judge.' By 'Judge' we mean some authority by which contested matters are decidecJ, .between rival parties: Here again, it is not possible to say that the expression is applicable only to a\n\nBh({rat Bank Utl.\n\nEmployees of Bharat Ba111' Ltd.\n\n1950 regular court of, law. If the tribunal is a full-fledged ludicial tribunal, it is not disputed that its decisions CJ/iarat Bank Ltd. v would be proper subject-matter of appeal under article Emplo; ccs of 136 of the Constitution. The question is whether this nharat Rauk Ud. article. includes within its scope the determinations of\n\nAlukhe1jea J. quasi-judicial tribunals as well.\n\nOur view is that ordinarily we should not put any restricted interpretation upon the plain words of an article in the Constitution and thereby limit our powers of granting special leave for appeals, which the Constitution for best of reasons did not choose to fetter or circumscribe in any way. At the same time, we must admit that some sort of restricted interpretation may be unavoidable in view of the context in which particular words appear ; and certain restrictions may be implicit in the very purpose for which article 136 has been framed.\n\nArticle 136 empowers us in our discretion to hear appeals from pronouncements of all inferior courts and tribunals. With regard to law courts, no difficulty arises. As regards tribunals which are not courts in the proper sense of the expression, it lllay not be proper, in our opinion, to lay down a hard and fast rule that no appeals could, on any account, be allowed against determinations of such tribunals.\n\nThere are numerous varieties of these adjudicating bodies, whose structures vary greatly in character and composition and so do the powers and functions which they exercise.\n\nThe best thing to do would be to examine each type of cases as it arises and if we find that with regard to determinations emanating from certain tribunals it is not possible for us to exercise fully and effectively the powers of an appellate Court, such determinations must be held to lie outside the purview of article 136 of the Constitution.\n\nThis disability in the matter of exercising our powers as an appellate Court might arise from the fact that the rules and principles by which we ordinarily judge the soundness or otherwise of judicial decisions are not capable of being applied to the determinations of certain administrative tribunals. It might also arise from the fact that the law under which the\n\ntribunal functions prevents us from making any effective order which woutd be binding and operative of its own force without the intervention of some other power or authority; or there may be some kind of contingency attached to it.\n\nIn our opinion, these difficulties do confront us in the entertaining or hearing of an appeal against the decision of an Industrial Tribunal. In the first place, as we have said above, the determination of an Industrial \"Tribunal does not become complete and binding unless and until it is declared to be so by the appropriate Government. Till the Government makes such declaration, neither of the parties to the dispute can have any real reason for filing an appeal. An appeal,. if it lies, could be filed after the determination has been declared binding.\n\nBut in such cases, is it the determination of the Tribunal merely which is challenged by way of appeal or is it the determination by the Tribunal to which has been super-added a declaration by the Government ? The decision in the appeal would undoubtedly affect not merely the decision of the Tribunal but that of the Government as well which is certainly not . a tribunal within the meaning of article I 36.\n\nAssuming again that the award is set aside and we substitute our own determination in place of the award given by the Tribunal, will our award be enforceable by itself or will it require a declaration by the Government to make it binding ? If Government is itself a party to the disute, will it , he op.en to Governmen~ to place our decision for consideration by the Legislative Assembly?\n\nAnd will tqe Legislative Assembly be competent to reject or modify our award ? These problems arise because under section 15 the award under the Act becomes binding only when the Government declares it to be so and if our judgment takes the place of the award of the , Tribunal, all the infirmities that attach to the award must necessarily attach to our judgment also.\n\nThe other difficulty is no less formidable.\n\naid above, the Tribunal is not bound to decide the disputes by application of the ordinary law of the land. A good deal depends upon questions of policy\n\nBharat Banlc Lid\n\nEmployus of Bharat Bank Lid.\n\nMukherjea ].\n\nu; o and public convenience. It is not possible for us to\n\n81 ;-;; k Ud judge the propriety of the decision by a reference to iara •• \"\" some standard or fixed rules and we think that the\n\nEmPlosccs of very policy of the law prevents us from interfering Bharat Bank ua. with the discretion exercised by the Tribunal.\n\nAfok\"\"\"i\"\" J. \\Vhere the direction is committed to any body or a tribunal exercising quasi-judicial functions which are not fettered by ordinary rules of law, the tribunal should in the absense of any provision to the contrary be deemed to have the final authority in the exercise of that discretion. \\Ve cannot sit in appeal over their decision and substitute our own discretion for theirs.\n\nQuestions, however, may and do arise where such .quasi-judicial body attempts to usurp jurisdiction which it does not possess. It may assume jurisdiction under a mistaken view of law or refuse to exercise jurisdiction properly by adoption of extraneous or irrelevant considerations ; or there may be cases where in its proceedings the tribunal violates the principles of natural justice. In all such cases the most proper and adequate remedy would be by writs of certiorari or prohibition and the Court having authority may direct that the decision of the body or tribunal might be brought up to be quashed for Jack of jurisdiction or for mistake apparent on the face of it ; and if the proceedings had not terminated at that time, a writ of prohibition may also be issued for preventing the tribunal from exceeding its jurisdiction. The issuing of such writs would not be an exercise of appellate powers which means the rehearing of the case and passing of such judgment which in the opinion of the appellate Court the original tribunal should have made.\n\nThe object of these writs is simply to keep the exercise of powers by these quasi-judicial tribunals within the limits of jurisdiction assigned to them by law and to restrain them from acting in excess of their authority. These principles are well settled and require no elucidation( 1 ).\n\nOur conclusion, therefore, is that article 136 of the Constitution does not contemplate a determination given by the Industrial Tribunal.\n\n(1) J?.ex v. Eh'ctric{fy Co111111issioncrs {192~1 1 K. B. 171; lloanf of Education v. Rfrc [1911) A.C.179.\n\nEven assuming for argument's sake that we have got jurisdiction under article 136, the exercise of which would , depend upon the circumstances of each case, in view of the reasons which we have set out above, this is not an appeal which, in our opinion, should be a9mitted even if we have the power to do so.\n\n-The result is that tlie preliminary objection succeeds and the appeal fails and dismissed with costs.\n\nBharat Bank Ltd\n\nEmployeu •f Bharat Bllllk\n\nPATANJALI SASTRI J.-1 entirely agree with the PAiar!iali Sa11ri, judgment just now delivered by Mukherjea J. and I have oothing to add.\n\nAppeal dismissed.\n\nAgent for the appellant: Ganpat Rai for Tanubhai C. Desai.\n\nAgent for the respondents : R. R. Biswas.\n\nAgent for the Union of India: P. A. Mehta.\n\nDR. N. B. KHARE\n\nfl.\n\nTHE STATE OF DELHI\n\n, SHRI HARILAL KANIA C. J., SAIYID FAZL Au,\n\nPATANJALI SASTRI,\n\nMEHR CHAND MAHAJAN, ' and MuKHERJEA, JJ.]\n\nConstitution of India, Art 19, els. (1)\n\n(d) and (5)-Fundamental rights-Freedom of movement-Law imposing restrictions- V alidity -Reasonableness of restrictions-Scope of enquiry-East P11n1ab Public Safety Act, 1949, s. 4(1) (c), (3), (6)-Provisions empowering Provincial Government or District Magistrate to extern persons mqking satisfaction of externing authority final, authorising e:rternment for indefinite period, and directing that authority \"may communicate\" grounds of e:rternment-Whether reasonable-Construction and Validity of Act.\n\nMay 26.", "total_entities": 321, "entities": [{"text": "S. P. Varma", "label": "LAWYER", "start_char": 640, "end_char": 651, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: S. P. Varma."}}, {"text": "P, A. Mehta", "label": "LAWYER", "start_char": 680, "end_char": 691, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: P, A. Mehta.", "canonical_name": "P, A. Mehta"}}, {"text": "EMPLOYEES OF THE BHARAT BANK LTD.,\n\nDELHI", "label": "RESPONDENT", "start_char": 723, "end_char": 764, "source": "metadata", "metadata": {"canonical_name": "EMPLOYEES OF THE BHARAT BANK LTD., DELHI", "offset_not_found": false}}, {"text": "SHRI liARILAL KANIA C.J.", "label": "JUDGE", "start_char": 843, "end_char": 867, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "SAIYID FAZL ALI", "label": "JUDGE", "start_char": 869, "end_char": 884, "source": "metadata", "metadata": {"canonical_name": "SAIYID FAZL ALI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 907, "end_char": 925, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN*", "offset_not_found": false}}, {"text": "ss. 8, 16", "label": "PROVISION", "start_char": 1251, "end_char": 1260, "source": "regex", "metadata": {"statute": null}}, {"text": "loi::=~ 'f.d. (MUKHERJEA", "label": "JUDGE", "start_char": 1374, "end_char": 1398, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA*", "offset_not_found": false}}, {"text": "PATANJALI SASTRI J.J.", "label": "JUDGE", "start_char": 1403, "end_char": 1424, "source": "metadata", "metadata": {"canonical_name": "M. PATANJALI SASTRI*", "offset_not_found": false}}, {"text": "functions and duties of the Industrial Tribunal constituted under the Industrial Disputes Act, 1947", "label": "STATUTE", "start_char": 1442, "end_char": 1541, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Art. 136", "label": "PROVISION", "start_char": 1647, "end_char": 1655, "source": "regex", "metadata": {"linked_statute_text": "The functions and duties of the Industrial Tribunal constituted under the Industrial Disputes Act, 1947", "statute": "The functions and duties of the Industrial Tribunal constituted under the Industrial Disputes Act, 1947"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 1663, "end_char": 1684, "source": "regex", "metadata": {}}, {"text": "Supreme Court", "label": "COURT", "start_char": 1689, "end_char": 1702, "source": "ner", "metadata": {"in_sentence": "136 of the Constitution of India the Supreme Court has jurisdiction to entertain an application for leave to appeal ftom a decision of the Tribunal, even though It will be very reluctant to entertain such an application. ·"}}, {"text": "Kaia", "label": "JUDGE", "start_char": 1876, "end_char": 1880, "source": "ner", "metadata": {"in_sentence": "Kaia C.J.\n\nPer 'MUKHERJEA J. (PATANJALI SASTRI J. concurring).-An Industtial Tribunal functioning under the Industrial Disputes Act is not a judicial tribunal.", "canonical_name": "KANIA"}}, {"text": "Industrial Disputes Act", "label": "STATUTE", "start_char": 1984, "end_char": 2007, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Art. 136", "label": "PROVISION", "start_char": 2329, "end_char": 2337, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "KANIA", "label": "JUDGE", "start_char": 2550, "end_char": 2555, "source": "ner", "metadata": {"in_sentence": "[On the merits KANIA C.J., FAZL ALI, PATANJALI SASTRI and MUKHERJEA, JJ.", "canonical_name": "KANIA"}}, {"text": "All-Ind1a Industrial Tribunal (Bank Disputes) Bombay", "label": "ORG", "start_char": 2854, "end_char": 2906, "source": "ner", "metadata": {"in_sentence": "Appeal by special leave from an Award of the All-Ind1a Industrial Tribunal (Bank Disputes) Bombay, dated 1st January, 1950."}}, {"text": "Bakshi Tek Chand", "label": "LAWYER", "start_char": 2989, "end_char": 3005, "source": "ner", "metadata": {"in_sentence": "Dr. Bakshi Tek Chand (Veda Vyas and S. K.\n\nKapur, with him) for the appellant.", "canonical_name": "Bakshi Sir Tek Chand"}}, {"text": "Veda Vyas", "label": "OTHER_PERSON", "start_char": 3007, "end_char": 3016, "source": "ner", "metadata": {"in_sentence": "Dr. Bakshi Tek Chand (Veda Vyas and S. K.\n\nKapur, with him) for the appellant.", "canonical_name": "Veda Vyas"}}, {"text": "S. K.\n\nKapur", "label": "LAWYER", "start_char": 3021, "end_char": 3033, "source": "ner", "metadata": {"in_sentence": "Dr. Bakshi Tek Chand (Veda Vyas and S. K.\n\nKapur, with him) for the appellant."}}, {"text": "B. Sen", "label": "LAWYER", "start_char": 3065, "end_char": 3071, "source": "ner", "metadata": {"in_sentence": "B. Sen for the respondents."}}, {"text": "Alladi Krishnaswami Aiyar", "label": "LAWYER", "start_char": 3094, "end_char": 3119, "source": "ner", "metadata": {"in_sentence": "Alladi Krishnaswami Aiyar (Jindra Lal, with him) for the Union of India.", "canonical_name": "Alladi Krishnaswami Aiyar"}}, {"text": "Jindra Lal", "label": "LAWYER", "start_char": 3121, "end_char": 3131, "source": "ner", "metadata": {"in_sentence": "Alladi Krishnaswami Aiyar (Jindra Lal, with him) for the Union of India."}}, {"text": "Fa1ll Ali", "label": "JUDGE", "start_char": 3283, "end_char": 3292, "source": "ner", "metadata": {"in_sentence": "The Court delivered judgment as follows:-'\n\nKANIA C.J- I have read the judgments prepared by Messrs. Fa1ll Ali, Mahajan and Mukherjea JJ."}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 3294, "end_char": 3301, "source": "ner", "metadata": {"in_sentence": "The Court delivered judgment as follows:-'\n\nKANIA C.J- I have read the judgments prepared by Messrs. Fa1ll Ali, Mahajan and Mukherjea JJ.", "canonical_name": "Mahajan"}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 3306, "end_char": 3315, "source": "ner", "metadata": {"in_sentence": "The Court delivered judgment as follows:-'\n\nKANIA C.J- I have read the judgments prepared by Messrs. Fa1ll Ali, Mahajan and Mukherjea JJ.", "canonical_name": "Mukherjea"}}, {"text": "Bharat Bank", "label": "ORG", "start_char": 3477, "end_char": 3488, "source": "ner", "metadata": {"in_sentence": "As the views in those judgments in 1950 respect of the nature of the duties and functions of the Industrial Tribunal do not show agreement I Bharat Bank r.u."}}, {"text": "article 136", "label": "PROVISION", "start_char": 5324, "end_char": 5335, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Eu1filoyecs of Bharat B1111k Ltd.", "label": "RESPONDENT", "start_char": 5850, "end_char": 5883, "source": "ner", "metadata": {"in_sentence": "v. ' Eu1filoyecs of Bharat B1111k Ltd.\n\nFazl AliJ.\n\nF AZL Au J .-The important question to be decided in this case is whether the present appeal lies at all to this Court."}}, {"text": "article 136", "label": "PROVISION", "start_char": 6166, "end_char": 6177, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 132", "label": "PROVISION", "start_char": 6345, "end_char": 6356, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 133", "label": "PROVISION", "start_char": 6609, "end_char": 6620, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 134", "label": "PROVISION", "start_char": 6696, "end_char": 6707, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 6842, "end_char": 6853, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "articles 132 and 133", "label": "PROVISION", "start_char": 6908, "end_char": 6928, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 134", "label": "PROVISION", "start_char": 7003, "end_char": 7014, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 7369, "end_char": 7380, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 7573, "end_char": 7584, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Industrial Bharat Bank", "label": "ORG", "start_char": 8075, "end_char": 8097, "source": "ner", "metadata": {"in_sentence": "Employees of Now there can be no doubt that the Industrial Bharat Bank ua."}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 8163, "end_char": 8171, "source": "ner", "metadata": {"in_sentence": "Tribunal has, to use a well-known expression, \"all the\n\nC · Fazl Ali J. trappings of a ourt \" and performs functions wh1oh cannot but be regarded as judicial."}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 8535, "end_char": 8562, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "sections 480 and 482", "label": "PROVISION", "start_char": 8850, "end_char": 8870, "source": "regex", "metadata": {"statute": null}}, {"text": "Criminal Procedure Code, 1898", "label": "STATUTE", "start_char": 8878, "end_char": 8907, "source": "regex", "metadata": {}}, {"text": "article 136", "label": "PROVISION", "start_char": 9614, "end_char": 9625, "source": "regex", "metadata": {"linked_statute_text": "the Criminal Procedure Code, 1898", "statute": "the Criminal Procedure Code, 1898"}}, {"text": "Industrial Disputes Act", "label": "STATUTE", "start_char": 10969, "end_char": 10992, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Court which has to administer law according to the Bengal or Bihar Moneylenders Act", "label": "STATUTE", "start_char": 11044, "end_char": 11127, "source": "regex", "metadata": {}}, {"text": "Encumbered Estates Act and other similar Act", "label": "STATUTE", "start_char": 11129, "end_char": 11173, "source": "regex", "metadata": {}}, {"text": "section 15", "label": "PROVISION", "start_char": 11844, "end_char": 11854, "source": "regex", "metadata": {"linked_statute_text": "Encumbered Estates Act and other similar Act", "statute": "Encumbered Estates Act and other similar Act"}}, {"text": "Industrial Disputes Act", "label": "STATUTE", "start_char": 11862, "end_char": 11885, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Parliament", "label": "ORG", "start_char": 12844, "end_char": 12854, "source": "ner", "metadata": {"in_sentence": "The Houses of Parliament may put anything into the order they please, whether consistent with the Act of 1919, or not."}}, {"text": "Bharat Bank", "label": "RESPONDENT", "start_char": 14293, "end_char": 14304, "source": "ner", "metadata": {"in_sentence": "(1) {1924) 1 K.D. 171 .•\n\nBharat Bank Ud.", "canonical_name": "Bharat Bank Limited"}}, {"text": "article 136", "label": "PROVISION", "start_char": 14790, "end_char": 14801, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 15", "label": "PROVISION", "start_char": 15049, "end_char": 15059, "source": "regex", "metadata": {"statute": null}}, {"text": "Industrial Disputes Act, 1947", "label": "STATUTE", "start_char": 15067, "end_char": 15096, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Section 15(2)", "label": "PROVISION", "start_char": 15343, "end_char": 15356, "source": "regex", "metadata": {"linked_statute_text": "the Industrial Disputes Act, 1947", "statute": "the Industrial Disputes Act, 1947"}}, {"text": "section 15", "label": "PROVISION", "start_char": 15841, "end_char": 15851, "source": "regex", "metadata": {"linked_statute_text": "the Industrial Disputes Act, 1947", "statute": "the Industrial Disputes Act, 1947"}}, {"text": "Central Government", "label": "ORG", "start_char": 16306, "end_char": 16324, "source": "ner", "metadata": {"in_sentence": "Our attention was however drawn to the proviso to section 15 (2), which runs as follows:-\n\n\"Provided that where the appropriate Government is a party to the dispute and in Its opinion it would be inexpedient on public grounds to give effect to the whole or any part of the award, it shall on the first available opportunity lay the award together with the statement of its reasons for not making a declaration as aforesaid before the Legislative Assembly of the Province, or where the appropriate Government is the Central Government, before the Central Legislative Assembly, and shall, as soon as may be, cause to be moved therein a resolution for the consideration of the\n\naward, and the Legislative Assembly may."}}, {"text": "Central Legislative Assembly", "label": "ORG", "start_char": 16337, "end_char": 16365, "source": "ner", "metadata": {"in_sentence": "Our attention was however drawn to the proviso to section 15 (2), which runs as follows:-\n\n\"Provided that where the appropriate Government is a party to the dispute and in Its opinion it would be inexpedient on public grounds to give effect to the whole or any part of the award, it shall on the first available opportunity lay the award together with the statement of its reasons for not making a declaration as aforesaid before the Legislative Assembly of the Province, or where the appropriate Government is the Central Government, before the Central Legislative Assembly, and shall, as soon as may be, cause to be moved therein a resolution for the consideration of the\n\naward, and the Legislative Assembly may."}}, {"text": "article 136", "label": "PROVISION", "start_char": 17293, "end_char": 17304, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 17509, "end_char": 17520, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Industrial Disputes Act", "label": "STATUTE", "start_char": 17717, "end_char": 17740, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "article 136", "label": "PROVISION", "start_char": 18430, "end_char": 18441, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Faz! AhJ.", "label": "JUDGE", "start_char": 19048, "end_char": 19057, "source": "ner", "metadata": {"in_sentence": "From fhe Bha\"\" Hank ua decision of the Tribunal however, it appears that the evidence that was shut out related to one isolated point Faz!"}}, {"text": "section 8", "label": "PROVISION", "start_char": 19740, "end_char": 19749, "source": "regex", "metadata": {"statute": null}}, {"text": "1ahajanJ.\n\nMAHAJAN", "label": "JUDGE", "start_char": 20550, "end_char": 20568, "source": "ner", "metadata": {"in_sentence": "• '1ahajanJ.\n\nMAHAJAN J.-This is an appeal by special leave from the determination of an industrial dispute by the Industrial ."}}, {"text": "Bharat Bank Limited", "label": "PETITIONER", "start_char": 20723, "end_char": 20742, "source": "ner", "metadata": {"in_sentence": "Bharat Bank Limited,· Delhi, the appellant, is a company registered under the Indian Companies Act.", "canonical_name": "Bharat Bank Limited"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 20808, "end_char": 20821, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 7", "label": "PROVISION", "start_char": 21381, "end_char": 21390, "source": "regex", "metadata": {"statute": null}}, {"text": "Industrial Disputes Act", "label": "STATUTE", "start_char": 21398, "end_char": 21421, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 10", "label": "PROVISION", "start_char": 21516, "end_char": 21526, "source": "regex", "metadata": {"statute": null}}, {"text": "Delhi", "label": "GPE", "start_char": 21779, "end_char": 21784, "source": "ner", "metadata": {"in_sentence": "The dispute under this item between the Bharat Bank and its employees was heard by the Tribunal at Delhi and its award was made on the 19th January,\n\n1950."}}, {"text": "19th January,\n\n1950", "label": "DATE", "start_char": 21815, "end_char": 21834, "source": "ner", "metadata": {"in_sentence": "The dispute under this item between the Bharat Bank and its employees was heard by the Tribunal at Delhi and its award was made on the 19th January,\n\n1950."}}, {"text": "4th February, 1950", "label": "DATE", "start_char": 21894, "end_char": 21912, "source": "ner", "metadata": {"in_sentence": "It was published in the Government of India Gazette dated 4th February, 1950, and was declared to be binding for a period of one year."}}, {"text": "article 136", "label": "PROVISION", "start_char": 22733, "end_char": 22744, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "India", "label": "GPE", "start_char": 23049, "end_char": 23054, "source": "ner", "metadata": {"in_sentence": "This article.is in th, ese terms :-\n\n\" (1) Notwithstanding anything in this Chapter, the Supreme Court may, in its discretion, grant special leave to appeal f.rom any judgment, decree, determination, sentence or order in any cause or matter passed\n\nor made by any court or tribunal in the territory of India."}}, {"text": "Btwat Bank Ltd.", "label": "ORG", "start_char": 23188, "end_char": 23203, "source": "ner", "metadata": {"in_sentence": "(2) Nothing in clause (1) shall apply to any Jomployees of judgment, determination, sentence or order passed or Btwat Bank Ltd. made by any court or tribunal constitutj!d by or under any law relating to the Armed Forces.\""}}, {"text": "Article 124", "label": "PROVISION", "start_char": 23387, "end_char": 23398, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 131", "label": "PROVISION", "start_char": 23467, "end_char": 23478, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Government of India", "label": "ORG", "start_char": 23563, "end_char": 23582, "source": "ner", "metadata": {"in_sentence": "Article 131 confers original jurisdiction on this Court in certain disputes arising between the Government of India and the States etc."}}, {"text": "Articles 132 and 133", "label": "PROVISION", "start_char": 23604, "end_char": 23624, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 134", "label": "PROVISION", "start_char": 23755, "end_char": 23766, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "10th October, 1949", "label": "DATE", "start_char": 23928, "end_char": 23946, "source": "ner", "metadata": {"in_sentence": "The Judicial Committee of the Privy Council which was the highest Court of appeal for India prior to 10th October, 1949, was not a Court of criminal appeal in the sense in which this Court has been made a Court of criminal appeal under article 134."}}, {"text": "article 134", "label": "PROVISION", "start_char": 24063, "end_char": 24074, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 135", "label": "PROVISION", "start_char": 24174, "end_char": 24185, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Federal Court of India", "label": "COURT", "start_char": 24274, "end_char": 24296, "source": "ner", "metadata": {"in_sentence": "Article 135 empowers this Court to hear all appeals which under existing laws could be heard by the Federal Court of India."}}, {"text": "Privy Council Jurisdiction Act, 1949", "label": "STATUTE", "start_char": 24319, "end_char": 24355, "source": "regex", "metadata": {}}, {"text": "powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844", "label": "STATUTE", "start_char": 24700, "end_char": 24791, "source": "regex", "metadata": {}}, {"text": "article 135", "label": "PROVISION", "start_char": 24987, "end_char": 24998, "source": "regex", "metadata": {"linked_statute_text": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844", "statute": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844"}}, {"text": "article 136", "label": "PROVISION", "start_char": 25081, "end_char": 25092, "source": "regex", "metadata": {"linked_statute_text": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844", "statute": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844"}}, {"text": "Article 136", "label": "PROVISION", "start_char": 25750, "end_char": 25761, "source": "regex", "metadata": {"linked_statute_text": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844", "statute": "The powers of the Judicial Committee were conferred upon it by the Judicial Committee Act, 1844"}}, {"text": "article 136", "label": "PROVISION", "start_char": 26315, "end_char": 26326, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 26579, "end_char": 26590, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 26879, "end_char": 26890, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "JudiciaI Committee Act", "label": "STATUTE", "start_char": 27002, "end_char": 27024, "source": "regex", "metadata": {}}, {"text": "article 136", "label": "PROVISION", "start_char": 27055, "end_char": 27066, "source": "regex", "metadata": {"linked_statute_text": "JudiciaI Committee Act", "statute": "JudiciaI Committee Act"}}, {"text": "article 136", "label": "PROVISION", "start_char": 27992, "end_char": 28003, "source": "regex", "metadata": {"linked_statute_text": "JudiciaI Committee Act", "statute": "JudiciaI Committee Act"}}, {"text": "articles 138, 139 and 140", "label": "PROVISION", "start_char": 28126, "end_char": 28151, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Alladi Krishnaswami Aiyar", "label": "LAWYER", "start_char": 28807, "end_char": 28832, "source": "ner", "metadata": {"in_sentence": "It was conceded by the learned counsel appearing for the Central Government, Mr. Alladi Krishnaswami Aiyar, that if any tribunal, whether ad!Jlinistrative, domestic or quasi-judicial, acts in excess of its jurisdiction, then it can be controlled by the High Courts under the powers conferred on them by article 226 by the issue of a writ of certiorari.", "canonical_name": "Alladi Krishnaswami Aiyar"}}, {"text": "article 226", "label": "PROVISION", "start_char": 29029, "end_char": 29040, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 29296, "end_char": 29307, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Alladi", "label": "OTHER_PERSON", "start_char": 29314, "end_char": 29320, "source": "ner", "metadata": {"in_sentence": "Mr. Alladi's contentions may be briefly summarized as follows: ( 1) The expression \" tribunal \" means seat of a judge, or a court of justice."}}, {"text": "article 136", "label": "PROVISION", "start_char": 29905, "end_char": 29916, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Bakshi Tek Chand", "label": "LAWYER", "start_char": 30759, "end_char": 30775, "source": "ner", "metadata": {"in_sentence": "Dr. Bakshi Tek Chand, appearing for the bank, on the other hand argued that whenever a tribunal, whether exercising judicial or quasi-judicial functions, determined a matter in a judicial manner, then s.uch a determination is within article 136.", "canonical_name": "Bakshi Sir Tek Chand"}}, {"text": "article 136", "label": "PROVISION", "start_char": 30988, "end_char": 30999, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article\n\n136", "label": "PROVISION", "start_char": 32120, "end_char": 32132, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Bharat Bc:nk Ltd.", "label": "ORG", "start_char": 32337, "end_char": 32354, "source": "ner", "metadata": {"in_sentence": "It was finally argued that powers should be exercised by this Court wherever there is a miscarriage\n\nof justice by a determination of any tribunal and that if the intention of the Constitution by use of Bharat Bc:nk Ltd.\n\nv. the word \"tribunal\" was in the same sense as \"court,\"\n\nt950\n\nEmptoy<\"CS of then it was not n.cessary to import it in article 136, Bharat Ban\" u.i."}}, {"text": "article 136", "label": "PROVISION", "start_char": 32476, "end_char": 32487, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 33340, "end_char": 33350, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 33508, "end_char": 33519, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 35108, "end_char": 35119, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "England", "label": "GPE", "start_char": 35469, "end_char": 35476, "source": "ner", "metadata": {"in_sentence": "As pointed out in Halsbury's Laws of England, the word \"Court \" originally meant the King's Palace but subsequently acquired the meaning of (1) a place where justice was administered, and (2) the person or persons who administer it."}}, {"text": "Saville", "label": "JUDGE", "start_char": 36524, "end_char": 36531, "source": "ner", "metadata": {"in_sentence": "In R. v. London County Council (1 ), Saville L. J. gave the following meaning to the word \"Court \" or \" judicial authority\":-\n\n(1) [193t) 2 K.B. 215."}}, {"text": "Sankey L. C.", "label": "JUDGE", "start_char": 37200, "end_char": 37212, "source": "ner", "metadata": {"in_sentence": "language by Lord Sankey L. C. in Shell Co. of Australia v. Federal Commissioner of Taxation(•), there are tribunals with many of the trappings of a Court which,· nevertheless, are not Courts in the .strict sense of exercising judicial power.", "canonical_name": "Sankey L. C."}}, {"text": "article 136", "label": "PROVISION", "start_char": 37589, "end_char": 37600, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 38207, "end_char": 38218, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Griffith", "label": "JUDGE", "start_char": 38470, "end_char": 38478, "source": "ner", "metadata": {"in_sentence": "The best definifion of it on high authority is the one given by Griffith C.J. in Huddart, Parker G Co. v. :Moorehead(•), wherein it is defined as follows:-\n\n.. \"The words ' judicial power' as used in section."}}, {"text": "was conceded that a tribunal constituted under Emproyus of the Industrial Disputes Act, 1947", "label": "STATUTE", "start_char": 39155, "end_char": 39247, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Allen", "label": "OTHER_PERSON", "start_char": 40902, "end_char": 40907, "source": "ner", "metadata": {"in_sentence": "Reference was made to certain passages from Professor Allen's book on Law and Order, Chapter IV, page 69, where mention is made of the kindS' of ad- ·· -·- ministrative tribunals functioning in various countries today."}}, {"text": "Bha\"\" Ban/", "label": "JUDGE", "start_char": 41409, "end_char": 41419, "source": "ner", "metadata": {"in_sentence": "There can be no doubt that varieties of administrative tribunals and domestic tribunals are known to exist in this country as well as\n\nEmp1u; ws of in other countries of the world but the real question to Bha\"\" Ban/, Ud."}}, {"text": "article 136", "label": "PROVISION", "start_char": 41626, "end_char": 41637, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 41707, "end_char": 41718, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 41814, "end_char": 41825, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 42116, "end_char": 42127, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "is now convenient to consider whether a tribunal constituted under the Industrial Disputes Act, 1947", "label": "STATUTE", "start_char": 42277, "end_char": 42377, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 2", "label": "PROVISION", "start_char": 42654, "end_char": 42663, "source": "regex", "metadata": {"linked_statute_text": "It is now convenient to consider whether a tribunal constituted under the Industrial Disputes Act, 1947", "statute": "It is now convenient to consider whether a tribunal constituted under the Industrial Disputes Act, 1947"}}, {"text": "section 7", "label": "PROVISION", "start_char": 43850, "end_char": 43859, "source": "regex", "metadata": {"statute": null}}, {"text": "section 38", "label": "PROVISION", "start_char": 44771, "end_char": 44781, "source": "regex", "metadata": {"linked_statute_text": "Industrial Tribunal and a duty is cast on it to adjudicate it in accordance with the provisions of Act", "statute": "Industrial Tribunal and a duty is cast on it to adjudicate it in accordance with the provisions of Act"}}, {"text": "Bharat Bauk Ltd.", "label": "ORG", "start_char": 45864, "end_char": 45880, "source": "ner", "metadata": {"in_sentence": "In Bharat Bauk Ltd. rule 19 provision has been made for proceedings ex parte."}}, {"text": "Mahafau", "label": "OTHER_PERSON", "start_char": 45987, "end_char": 45994, "source": "ner", "metadata": {"in_sentence": "Rule 21 provides that in addition to the powers Mahafau .f."}}, {"text": "section 11", "label": "PROVISION", "start_char": 46031, "end_char": 46041, "source": "regex", "metadata": {"statute": null}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 46129, "end_char": 46156, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "sections 480 and 482", "label": "PROVISION", "start_char": 46532, "end_char": 46552, "source": "regex", "metadata": {"statute": null}}, {"text": "Code of Criminal Procedure, 1898", "label": "STATUTE", "start_char": 46560, "end_char": 46592, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "section 11", "label": "PROVISION", "start_char": 47023, "end_char": 47033, "source": "regex", "metadata": {"linked_statute_text": "the Code of Criminal Procedure, 1898", "statute": "the Code of Criminal Procedure, 1898"}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 47134, "end_char": 47161, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "sections 193 and 228", "label": "PROVISION", "start_char": 47597, "end_char": 47617, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Penal Code", "label": "STATUTE", "start_char": 47625, "end_char": 47642, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 7", "label": "PROVISION", "start_char": 48213, "end_char": 48222, "source": "regex", "metadata": {"statute": null}}, {"text": "Industrial Tribunal, Bombay", "label": "COURT", "start_char": 48730, "end_char": 48757, "source": "ner", "metadata": {"in_sentence": "Industrial Tribunal, Bombay (1 ), and it was observed that such a tribunal can do what no Court can, namely, add to or alter the terms or conditions of the contract of service."}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 49739, "end_char": 49766, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "(1949) F. C.R. 5", "label": "CASE_CITATION", "start_char": 50158, "end_char": 50174, "source": "regex", "metadata": {}}, {"text": "Statutes like the Relief of Indebtedness Act", "label": "STATUTE", "start_char": 50263, "end_char": 50307, "source": "regex", "metadata": {}}, {"text": "article 136", "label": "PROVISION", "start_char": 50966, "end_char": 50977, "source": "regex", "metadata": {"linked_statute_text": "Statutes like the Relief of Indebtedness Act", "statute": "Statutes like the Relief of Indebtedness Act"}}, {"text": "section 11(3)", "label": "PROVISION", "start_char": 51130, "end_char": 51143, "source": "regex", "metadata": {"linked_statute_text": "Statutes like the Relief of Indebtedness Act", "statute": "Statutes like the Relief of Indebtedness Act"}}, {"text": "article 136", "label": "PROVISION", "start_char": 51342, "end_char": 51353, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chapter VI of the Act", "label": "STATUTE", "start_char": 51433, "end_char": 51454, "source": "regex", "metadata": {}}, {"text": "section 29", "label": "PROVISION", "start_char": 51515, "end_char": 51525, "source": "regex", "metadata": {"linked_statute_text": "Chapter VI of the Act", "statute": "Chapter VI of the Act"}}, {"text": "sections 15 and 19", "label": "PROVISION", "start_char": 52208, "end_char": 52226, "source": "regex", "metadata": {"linked_statute_text": "Chapter VI of the Act", "statute": "Chapter VI of the Act"}}, {"text": "Section 15", "label": "PROVISION", "start_char": 52239, "end_char": 52249, "source": "regex", "metadata": {"linked_statute_text": "Chapter VI of the Act", "statute": "Chapter VI of the Act"}}, {"text": "section 19", "label": "PROVISION", "start_char": 53670, "end_char": 53680, "source": "regex", "metadata": {"statute": null}}, {"text": "article 136", "label": "PROVISION", "start_char": 53978, "end_char": 53989, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 15", "label": "PROVISION", "start_char": 54175, "end_char": 54185, "source": "regex", "metadata": {"statute": null}}, {"text": "Bharat Bauk", "label": "RESPONDENT", "start_char": 54434, "end_char": 54445, "source": "ner", "metadata": {"in_sentence": "Bharat Bauk Ud.", "canonical_name": "Bharat Bank Limited"}}, {"text": "section 15", "label": "PROVISION", "start_char": 54535, "end_char": 54545, "source": "regex", "metadata": {"statute": null}}, {"text": "article 136", "label": "PROVISION", "start_char": 55365, "end_char": 55376, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 58593, "end_char": 58604, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 58680, "end_char": 58691, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 58823, "end_char": 58834, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Army Act", "label": "STATUTE", "start_char": 58900, "end_char": 58908, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "by the Housing Act, 1925", "label": "STATUTE", "start_char": 59468, "end_char": 59492, "source": "regex", "metadata": {}}, {"text": "article 136", "label": "PROVISION", "start_char": 61330, "end_char": 61341, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 19", "label": "PROVISION", "start_char": 61469, "end_char": 61479, "source": "regex", "metadata": {"statute": null}}, {"text": "section 15", "label": "PROVISION", "start_char": 61557, "end_char": 61567, "source": "regex", "metadata": {"statute": null}}, {"text": "article 136", "label": "PROVISION", "start_char": 62779, "end_char": 62790, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Bltarat Bank L.td", "label": "PETITIONER", "start_char": 63368, "end_char": 63385, "source": "ner", "metadata": {"in_sentence": "Bltarat Bank L.td."}}, {"text": "iUaltnjroz", "label": "JUDGE", "start_char": 63426, "end_char": 63436, "source": "ner", "metadata": {"in_sentence": "iUaltnjroz J.\n\nBharat Bank Ltd.\n\nBniployees of B!1arat Banh Lt, l.\n\nMahajanJ.\n\nthought that the status and training of the judges made them the most proper depositaries of that power."}}, {"text": "Bharat Bank Ltd.", "label": "RESPONDENT", "start_char": 63441, "end_char": 63457, "source": "ner", "metadata": {"in_sentence": "iUaltnjroz J.\n\nBharat Bank Ltd.\n\nBniployees of B!1arat Banh Lt, l.\n\nMahajanJ.\n\nthought that the status and training of the judges made them the most proper depositaries of that power.", "canonical_name": "Bharat Bank Limited"}}, {"text": "article 136", "label": "PROVISION", "start_char": 65462, "end_char": 65473, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 66485, "end_char": 66496, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 226", "label": "PROVISION", "start_char": 66874, "end_char": 66885, "source": "regex", "metadata": {"statute": null}}, {"text": "article 136", "label": "PROVISION", "start_char": 66938, "end_char": 66949, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 226", "label": "PROVISION", "start_char": 67142, "end_char": 67153, "source": "regex", "metadata": {"statute": null}}, {"text": "Vide Bentwick", "label": "OTHER_PERSON", "start_char": 67679, "end_char": 67692, "source": "ner", "metadata": {"in_sentence": "Vide Bentwick's Privy Council Practice, 3rd Edn.,"}}, {"text": "Jamaica", "label": "GPE", "start_char": 67798, "end_char": 67805, "source": "ner", "metadata": {"in_sentence": "Therein it is stated as follows :- \"In several cases from Jamaica, the Privy Council granted leave to appeal to the Queen in Council dire\"Ctly from the Supreme Court, ,, ithout an intermediate appeal (which would have been attcuded with much\n\n1950 expense and delay) to the Court of Error in the island,\n\n81 tB k Ltd there being in each of those cases manifestly some point iara /\" of law raised which deserved discussion.\""}}, {"text": "article 136", "label": "PROVISION", "start_char": 68365, "end_char": 68376, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 136", "label": "PROVISION", "start_char": 68994, "end_char": 69005, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "sections 51, 71 and 72", "label": "PROVISION", "start_char": 69461, "end_char": 69483, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 72", "label": "PROVISION", "start_char": 69542, "end_char": 69552, "source": "regex", "metadata": {"statute": null}}, {"text": "Parliament of the Commonwealth", "label": "ORG", "start_char": 69651, "end_char": 69681, "source": "ner", "metadata": {"in_sentence": "Section 72 requires that every Justice of the High Court and every Justice of any other Court created by the Parliament of the Commonwealth shall snbject to the power of removal contained in the section be appointed for life."}}, {"text": "Section 71", "label": "PROVISION", "start_char": 69768, "end_char": 69778, "source": "regex", "metadata": {"statute": null}}, {"text": "section 71", "label": "PROVISION", "start_char": 69949, "end_char": 69959, "source": "regex", "metadata": {"statute": null}}, {"text": "section 72", "label": "PROVISION", "start_char": 70008, "end_char": 70018, "source": "regex", "metadata": {"statute": null}}, {"text": "Constitution of Bmptoy", "label": "RESPONDENT", "start_char": 70397, "end_char": 70419, "source": "ner", "metadata": {"in_sentence": "The Constitution of Bmptoy, csof India is not modelled on the Constitution of Australia."}}, {"text": "section 71", "label": "PROVISION", "start_char": 71091, "end_char": 71101, "source": "regex", "metadata": {"linked_statute_text": "Therein it was held that the power conferred by the Commonwealth Conciliation and Arbitration Act 1904", "statute": "Therein it was held that the power conferred by the Commonwealth Conciliation and Arbitration Act 1904"}}, {"text": "Isaacs", "label": "JUDGE", "start_char": 71261, "end_char": 71267, "source": "ner", "metadata": {"in_sentence": "Mr. Alladi placed reliance on a passage at page 467 in the judgment of Isaacs and Rich JJ.,"}}, {"text": "Rich", "label": "JUDGE", "start_char": 71272, "end_char": 71276, "source": "ner", "metadata": {"in_sentence": "Mr. Alladi placed reliance on a passage at page 467 in the judgment of Isaacs and Rich JJ.,"}}, {"text": "all this was in imitation of the State Act", "label": "STATUTE", "start_char": 71626, "end_char": 71668, "source": "regex", "metadata": {}}, {"text": "section 15", "label": "PROVISION", "start_char": 72115, "end_char": 72125, "source": "regex", "metadata": {"linked_statute_text": "But all this was in imitation of the State Act", "statute": "But all this was in imitation of the State Act"}}, {"text": "Employment Act, 1942", "label": "STATUTE", "start_char": 72953, "end_char": 72973, "source": "regex", "metadata": {}}, {"text": "section 71", "label": "PROVISION", "start_char": 74007, "end_char": 74017, "source": "regex", "metadata": {"statute": null}}, {"text": "Maliaja", "label": "JUDGE", "start_char": 74854, "end_char": 74861, "source": "ner", "metadata": {"in_sentence": "satisfied that the words of Griffith C. J. Bliarat Rank LI.I. are properly interpreted when it is said that they mean Maliaja,, J. that a power to make binding and authoritative decisions as to facts is necessarily judicial power."}}, {"text": "Huddart Parker", "label": "OTHER_PERSON", "start_char": 75835, "end_char": 75849, "source": "ner", "metadata": {"in_sentence": "In Huddart Parker's case (2 ), Isaacs J. referred to the.statement of Palles C. B. in R. v. Local Government Board for Ireland (3 ) \"to erect a tribunal into a\n\n•Court' or 'jurisdiction', so as to make its determinations judicial, the essential element is that it should have power, by its determination within jurisdiction, ."}}, {"text": "Palles", "label": "JUDGE", "start_char": 75902, "end_char": 75908, "source": "ner", "metadata": {"in_sentence": "In Huddart Parker's case (2 ), Isaacs J. referred to the.statement of Palles C. B. in R. v. Local Government Board for Ireland (3 ) \"to erect a tribunal into a\n\n•Court' or 'jurisdiction', so as to make its determinations judicial, the essential element is that it should have power, by its determination within jurisdiction, ."}}, {"text": "Bharat Bank Ltd.", "label": "ORG", "start_char": 76982, "end_char": 76998, "source": "ner", "metadata": {"in_sentence": "The happening of the contingency\n\nRmp1oyccs of may be questioned in an action brought to try the Bharat Bank Ltd. legality of the act done under the alleged exercise of the power."}}, {"text": "rjan", "label": "JUDGE", "start_char": 77109, "end_char": 77113, "source": "ner", "metadata": {"in_sentence": "But where the determination binds, al- Mal1 restricted, the same is also for the consideration of the Court, as it has to determine if the exercise of the right has been reasonably restricted.\n\nI do not think by this interpretation the scope and ambit of the word \"reasonable\" as applied to restrictions on the exercise of the right, is in any way unjustifiably enlarged. It seems that the narrow construction sought to be put on the expression, to restrict the Court's power to consider only the substantive law on the point, is not correct.\n\nIn my opinion this ospect of tlie construction of article 19 (5) has escaped the minority judgment in the two matters mentioned above.\n\nI am. not concerned with the conclusions of the two Courts about the invalidity of the provisions of the Acts they were asked to consider.\n\nTo the extent they help in the interpretation of article 19 (5) only they are helpful.\n\nThe next question is whether the impugned Act contains reasonable restrictions on the exercise of the rigbt given under article 19 (1) (d) or (e). Itwas argiied on behalf of the petitioner that under sec tion 4the power to make the order of extern .. ment was given to the Provincial Government or the District Magistrate, whose satisfaction was final.\n\nThat decision was not open to review by the Court.\n\nOn that ground it was contended that there was an un reasonable restriction on the exercise of the citizen's right.\n\nIn my opinion, this argument is unsound.\n\nThis is not legislative delegation.\n\nThe desirability of passing an individual order of externment against a citizen has to be left to an officer.\n\nIn the Act such a provision cannot be made. - The satisfaction of the officer Jhus does not impose an unreasonable restriction on the exercise of the citizen's right.\n\nSo far as f4e Bombay Highl Court is concerned Chagla C. J. appears to have decided this point against the contention of the petitioner.· It was next urged that under section 4 (3) the order made by the District Magistrate shall not, unless the Proviricial Government by special order otherwise direct, remain in force for more than three months. It was argued that the period of three months itself was unreasonable as the externee had no remedy during that time. [ - It was contended that when the Provincial Governmefit directed the renewal of the order no limit of time was prescribed by. the legislature for the duration of the order.\n\nThe order therefore can be in operation for ari indefinite period.\n\nThis was argued to be an unreasonable restriction on the exercise of a citizen's right.\n\nIn this connection it may be pointed out that in respect of preventive detention, which is a more severe restiction on the right of the citizen, the Constitution itself under article 22 (4) to (7) permits preventive detention for three months without any remedy.\n\nThe period of three months therefore prim a f acie does\n\nnot appear unreasonable.\n\nUnder the proviso to section 4 (5) the Provincial Government is not permitted to direct the exclusion or removal from the Province of a person ordinarily residing in the Province, and similarly\n\nDr. N. B. Khare\n\nThe State of Dtilii\n\nKania C.J.\n\nDr. N. B. Khare\n\nThe Stak of Dllhi\n\nKania C.].\n\nthe District Magistrate is not permitted to order the exclusion or removal of a person ordinarily resident in his district from that district.\n\nThis is a great safeguard provided under the East Punjab Public Safety Act.\n\nThe further extension of the exter1.1ment order beyond three months may be for an indefinite period, but in that connection the fact that the whole Act is to\n\nremain in force only up to the 14th August, 1951, cannot be overlooked.\n\nMoreover, . this whole argument is based on the assumption that the Provincial Government when making the order will not pe, form its duty and may abuse the provisions of the sect10n.\n\nIn my opinion, it is improper to start with such an assumption and decide the legality of an Act on that basis.\n\nAbuse of the power given by a law. sometimes occurs ; but the validity of the law cannot be contested because of such an apprehension.\n\nIn my opinion, therefore, this contention of .the petitioner cannot be accepted.\n\nIt \"was next argued that there is no provision in the Act for furnishing grounds of externment to the citizen.\n\nSection 4 (6) provides that when an externment order has been made its grounds may be communicated to the externee by the authority making the order and in any case when the order is to be enforced for more than three months he shall have a right of making a representation which shall be referred to the advisory tribunal constituted under section 3 ( 4).\n\nWhile the word \"may\" ordinarily conveys the idea of a discretion and not compulsion, reading it with the last part of the clause it seems that when an externment order has to be enforced for more than three months an absolute right is given to the externee to make a representation.\n\nHe cannot make a representation unless he has been furnished grounds for the order.\n\nIn no other part of the Act a right to obtain the grounds for the order in such a case is given to him.\n\nTherefore, that right has to be read as given under the first part of section 4 (6).\n\nThat can be done only by reading the word \"may\" for that purpose as having the meaning of \"shall\".\n\nIf the word \"may\" has to be so read for that purpose, it appears to be against the well-recognised canons of construction to\n\nread the same \"may\" as having a different meaning when the order is to be in force for less than three months.\n\nI do not think in putting the meaning of \"shall\" on \"may\" in the clause, I am unduly strainc ing . the language used in the clause. So read this argument must fail.\n\nIt was next argued that there is no provision in the Act showing what the advisory board has to do when it receives a representation. A reference to the advisory board necessarily implies a consideration of the case by s1,1ch board.\n\nThe absence of an express statement to that effect in the impugned act does not invalidate the Act.\n\nIt was finally contended on behalf of the petitioner that the grounds for the externment 011der supplied to him are vague, insufficient and incomplete.\n\nThe grounds are stated as follows :-\n\n\"Your activities generally and particularly . since the recent trouble in East and West Bengal have been of a communal nature tending to excite hatred between communities and whereas in the present composition of .the population of Delhi and the recent communal disturbances of Delhi feelings are roused be.tween the majority and minority communities your presence and activities in Delhi are likely to prove prejudicial to the maintenance of law and order, it is considered necessary to order you to leave Delhi.\n\nThese grounds cannot be described as vague, insufficient or incomplete.\n\nIt is expressly stated that the activities of the petitioner, who is the President of the Hindu Mahasabha, since the recent disturbances between two communities in the East and West Bengal have particularly been of a communal riature which excites hatred between the communities.\n\nIt is\n\nrther stated that having regard to the recent disturbance in Delhi, the population of which is composed of both these communities, the excitement of such hatred . is likely to be dangerous to the peace and maintenance\n\nof law and order.\n\nApart from. being vague, I think that these grounds are specific and if honestly believed can support the order.\n\nThe argument that lhe order\n\nDr. Jt. B. Kht11t-\n\nK•aC.J.\n\nDr. N. B. n.,.,\n\nTh• SlaJt of DI/hi\n\nXatriaC.J.\n\nFazl Ali].\n\nPatmfiali SGltri].\n\nMulart III of the Constitution.\n\nIt has been urged, though somewhat faintly, by the learned Attorney-General that the; right of free movement throughout the Indian territory as enunciated in article 19 (1) (d) of the Constitution contemplates nothing else but absence of inter-State restrictions, which might prevent citizens of the Indian Union from moving from one State to another.\n\nA law which does not impose barriers of this kind, it is said, cannot be inconsistent with the fundamental right secured by this clause.\n\nSuch a restricted interpretation is, in my opinion, not at all warranted by the language of the sub-clause.\n\nWhat article 19 (1) (d) of the Constitution guarantees is the free right of all citizens to go wherever they like in the Indian territocywithout any kind of restriction whatsoever.\n\nThey can move not merely from one State to another but from one place to another within the same State ind what the Constitution lays stress upon is that the entire Indian territory is one unit so far as the citizens arc concerned.\n\nClause (c) of section 4 (1) of the Eaet Punjab Public Safety Act, 1949, authorises the Provincial Government or the District Magistrate to direct any person to remo\\'e himself from any area and prohibit him from entering the same.\n\nOn the face of it such provision represents an interference with the fundamental right guaranteed by article 19 (1) (d) of the Constitution.\n\nThe controversy, therefore, narrows down to this, whether the impugned legislation is saved by reason of its being within the permissible limits prescribed by clause (5) of article 19 ..\n\nWith regard to clause (5), the learned Attorney- General points out at the outset that the word \"reasonable\" occurring in the clause qualifies \"restrictions\" and not \"law\". It is argued that in applying the clause,. all that we haye to see is whether 'the restrictions that are imposed upon the exercise of the right by law are reasonable or not and we have not to enquire into the reason; ibleness or otherwise of the law itself.\n\nThe reasonableness of the restrictions can be judged, according to the learned Attorney-General from the nature of the restrictions themselves and not from the manner in which or the authorities by which they are\n\n2-5 S.C. Indiil (N.D.)(~\n\n195ct\n\nDr. J'{. JJ. KIJMr\n\nT& Siau of Delhi\n\nMherjea].\n\nDr. N. B. Khare\n\nTiu State of Delhi\n\nMuti...jea J.\n\nimposed.\n\nThe question whether the operation of the law produces hardship in individual cases is also a matter which is quite irrelevant to our enquiry.\n\nI do agree that in clause (5) the adjective 'reasonable' is predicated of the restrictions that are imposed by law and not of the law itself ; but that does not mean that in deciding the reasonableness or otherwise of the restrictions, we have to confine ourselves to an examination of t'he restrictions in the abstract with reference merely to their duration or territorial extent, and that it is beyond our province to look up to the circumstances under which or the manner in whicl\\ the n; strictions have been imposed.\n\nIt is not possible to formulate an effective test which would enable us to pronounce any particular restriction to be reasonable or unreasonable per se.\n\nAll the attendant circumstances must be taken into consideration and one cannot dissociate the actual contents of the restnct1ons from the manner of their imposition or the mode of 1ft1tting them into practice. The question of reasonableness of the restrictions imposed by. a law may arise as much from the substantive part of the law as from its procedural portion.\n\nThus, although I agree with the learned Attorney-General that the word \"reasonable\" in clause (5) of article 19 goes with \"restrictions\" and not with \"law\", I cannot accept his suggestion as regards the proper way of determining the reasonableness of the restrictions which a legislation might impose upon the exercise of the right of free movement.\n\nComing now to the provisions of the impugned Act, Mr. Banerjee's main contention is that section 4\n\n(1) (c) of the East Punjab Public Safety Act, which provides for passing of orders removing a person from a particular area, on the satisfaction of the Provincial Government or the District Magistrate, cannot be a reasonable piece of legislation inasmuch as the only pre-requisite for imposition of the restrictions is the personal satisfaction of certain individuals or authorities, the propriety or reasonableness of which cannot be tested by the application of any external rule or standard.\n\nIt is said that any law which places the liberty\n\nof a subject at the mercy of an executive officer, however high placed he might be and whose action 'Cannot\n\nbe reviewed by a judicial tribunal, is an arbitrary and not a reasonable exercise of legislative powers.\n\nThe contention requires careful examination.\n\nIt is not disputed that under clause (5) of article 19, the reasonableness of a challenged legislation has to be determined by a Court and the Court decides such matters by applying some objective standard which is said to be the standard of an average prudent man.\n\nJudged by such standard which is sometimes described as an external yard-stick, the vesting of authority in particular officers to take prompt action under emergent circumstances, entirely on their own responsibility or personal satisfaction, is not necessarily unreasonable.\n\nOne has to take into account the whole scheme of the legislation and the circumstances under which the restrictive orders could be made.\n\nThe object of the East Punjab Public Safety Act is to provide for special measures to ensure public safety . and maintenance of public order. Under section 4 (1) (c) of the Act, the Provincial Government or the District Magistrate may make an order directing the removal of a certain person from a particular area, if they are satisfied that such order is necessary to prevent such person from acting in any way prejudicial to public safety . or maintenance of public order.\n\nPreventive orders by their very nature cannot be made after any judicial enquiry or trial. If emergent steps have got to be taken to prevent apprehended acts which are likely to jeopardise the interests or safety of the public, somebody must be given the power of taking the initial steps ori his own responsibility ; and no reasonable objection could be taken if the authority, whp is given the power; is also entrusted with the responsibility of iµaintaining order and public-. peace in any particular district or province.\n\nThe preventive provisions of the Criminal Procedure Code are based on similar principle.\n\nIn my opinion, therefore, the provision of section 4 ( 1)\n\n(c) of the East Punjab Public Safety Act cannot be pronounced . to be um:easonable, simply because the order could be passed by the Provincial Government\n\nDr. N. B. Khan\n\nThe Stau of Delhi\n\nl'rfukknjeaJ.\n\nDr. N. B. Khar•\n\nTiu Stall of Delhi\n\nor the District Magistrate on their own personal satisfaction and not on materials which satisfy certain objective tests.\n\nBut though certain authorities can be invested with powers to make the initial orders on their own satisfaction in cases of this description, the position would certainly be different if the order thus made is allowed to continue for any indefinite period of time without giving the aggrieved person an opportunity to say what he has got to say against the order.\n\nI have already set out the provisions of sub-section (3) of section 4 which deals with duration of the orders made under the various clauses of sub-section (1).\n\nIt will be seen from this sub-section that there is absolutely no limit as to the period of time during which an externment order would remain in force if the 9rder is made by the Provincial Government.\n\nThe Provincial Government has been given unlimited authority in this respect and they can keep the order in force as long as they chose to do so.\n\nAs regards orders made by a District Magistrate, the period indeed has been fixed at three months; but Cllen here the Provincial Government is competent to extend it to any length of time by means of a special order.\n\nThe law does not fix an¥ maximum period beyond which the order cannot continue ; and the fact that the Act itself would expire in August, 1951, is, in my op1ruon, not a relevant matter for consideration in this connection at all.\n\nI have no hesi(lltion in holding that the provision of sub-section (3) of section 4 is manifestly unreasonable and cannot be supportc:d on . any just ground.\n\nOne could understand that . the exigencies of circumstances might justify. the vesting of plenary powers on certain authorities which could pass -0rders on their own personal satisfaction temporarily and for a short period of time; but if these orders are to continue indefinitely, it is only fair that an opportunity should be given to the person against whom such order is made to say what he has to say in answer to the allegations made against him.\n\nThere may riot be an investigation by a regular Court but it is necessary that the aggrieved person should be given a fair hearing and that by an\n\nimpartial tribunal.\n\nThe provision of the impugned Act which has bearing on this point is contained\" in sub-sectioh (6) of section 4 and it runs as follows :\n\n\"When an order has been made in respect of any person under any of the clauses under section 4, sub-section (1), or sub-section (2) the grounds of it may be communicated to him by the authority making the order and in any case, when the order is to be in force for more than three months, he shall have a right of making a representation which shall be referred to the Advisory Tribunal, constituted under section 3, sub-section ( 4) ,\"\n\nIt will be noted that the first part of the subsection makes it entirely optional with the authorities to communicate the grounds, upon which the order is made, to the person affected by it.\n\nThe grounds need not be communicated at all if the authorities so desire.\n\nAs regards the right of representation the latter part of the sub-section seems to imply that when the order is to remain in force for more than three months, the right of representation should be given to the aggrieved person and the representation shall be referred for consideration to the advisory tribunal constituted under section 3, sub-section ( 4), of the Act.\n\nThe right, however, is purely illusory as would appear from the fact that even in cases where the order is to be operative for more than three . months, there is no obligation on the part of the authorities o communicate to _ the person the grounds upon which the order was made.\n\nThe aggrieved person consequently may not at all be apprised of the allegations made against him and it will be impossible for him to make any adequate or proper representation, if he is not told on what grounds the order was passed. In my opinion, this is an equally unreasonable provision and neither sub-section (3) nor sub-section (6) of. section 4 of the Act can be said to have imposed restrictions which are reasoriable in the interests of the general public.\n\nMy conclusion, therefore, is that under article 13 ( 1) of the Indian. Constitution, these provisions of the Act became void and inoperative after the Constitution came into\n\nDr. N. B. Khare\n\n.v.\n\nThe State of Delhi\n\nMukherjea ].\n\nDr.N.B. Khare v.\n\nThe Stale of Delhi\n\nMukhnjea].\n\nforce, and consequently the order made by the District Magistrate in the present case cannot stand.\n\nI would, therefore, allow the application and quash the externment order that has been passed against the petitioner.\n\nPetition dismissed.\n\nAgent for the petitioner: Gan pat Rai.\n\nAgent for the opposite party: P. A. Mehta.\n\nCHIEF CONTROLLING REVENUE AUTHORITY\n\nAND\n\nSUPERINTENDENT OF STAMPS\n\nti.\n\nMAHARASHTRA SUGAR MILLS\n\nLTD.\n\n[SHR1 HARILAL KANg C. J., SAIYID FAzL Au,\n\nPATANJALI SASTRI, MEHR CHAND MAHAJAN\n\nand MUKHERJEA J J.)\n\nIndian Stamp Act (II of 1899), ss. 57, 59 (2)-Reference lo High Court-Nature of power .to refer-Duty to refer on reque.11\n\nof party affected-Order directing Chief Controlling Authority to refer-Whether \"matter concerning revenues\"-furisdiction of Original Side of High Court-Government of India Act, 1935, s. 266(1).\n\nThe power conferred on the Chief Revenue Authority by Sec. 57 of the Indian Stamp Act, to make a reference to the High Court is not intended for the benefit of the Revenue Authority alone, but ensures, also for the benefit of the party affected by the assessment. It is threforc coupled with a duty to make a reference when he is called upon to do so by the party affected, and if he declines to do so, it is within the power of the Court to direct him to discharge that ducy and make a reference to the Court.\n\nAlcock Ashdown & Co., Ltd. v. Chief Revenue Authority (SO I.A. 227) and /ulius v. Bishop of Orford (5 A.C. 214) applied.", "total_entities": 147, "entities": [{"text": "article 136", "label": "PROVISION", "start_char": 105, "end_char": 116, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Bharat Bank Ltd", "label": "ORG", "start_char": 449, "end_char": 464, "source": "ner", "metadata": {"in_sentence": "Bharat Bank Ltd\n\nEmployeu •f Bharat Bllllk\n\nPATANJALI SASTRI J.-1 entirely agree with the PAiar!iali Sa11ri, judgment just now delivered by Mukherjea J. and I have oothing to add."}}, {"text": "PATANJALI SASTRI J.", "label": "JUDGE", "start_char": 493, "end_char": 512, "source": "metadata", "metadata": {"canonical_name": "PATANJALI SASTRI J.", "offset_not_found": false}}, {"text": "judgment just now delivered by Mukherjea J.", "label": "JUDGE", "start_char": 558, "end_char": 601, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA", "offset_not_found": false}}, {"text": "Ganpat Rai", "label": "LAWYER", "start_char": 674, "end_char": 684, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: Ganpat Rai for Tanubhai C. Desai.", "canonical_name": "Gan pat Rai"}}, {"text": "R. R. Biswas", "label": "LAWYER", "start_char": 737, "end_char": 749, "source": "ner", "metadata": {"in_sentence": "Agent for the respondents : R. R. Biswas."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 782, "end_char": 793, "source": "ner", "metadata": {"in_sentence": "Agent for the Union of India: P. A. Mehta."}}, {"text": "N. B. KHARE", "label": "PETITIONER", "start_char": 800, "end_char": 811, "source": "metadata", "metadata": {"canonical_name": "N. B. KHARE", "offset_not_found": false}}, {"text": "THE STATE OF DELHI", "label": "RESPONDENT", "start_char": 818, "end_char": 836, "source": "metadata", "metadata": {"canonical_name": "THE STATE OF DELHI", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA", "label": "JUDGE", "start_char": 840, "end_char": 858, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 902, "end_char": 920, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 945, "end_char": 966, "source": "regex", "metadata": {}}, {"text": "Art 19", "label": "PROVISION", "start_char": 968, "end_char": 974, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Public Safety Act, 1949", "label": "STATUTE", "start_char": 1136, "end_char": 1159, "source": "regex", "metadata": {}}, {"text": "s. 4(1)", "label": "PROVISION", "start_char": 1161, "end_char": 1168, "source": "regex", "metadata": {"linked_statute_text": "Public Safety Act, 1949", "statute": "Public Safety Act, 1949"}}, {"text": "Whether reasonable-Construction and Validity of Act", "label": "STATUTE", "start_char": 1435, "end_char": 1486, "source": "regex", "metadata": {}}, {"text": "N. B.", "label": "PETITIONER", "start_char": 1502, "end_char": 1507, "source": "ner", "metadata": {"in_sentence": "Dr. N. B. Khart v.\n\nT ht St alt of Delhi\n\nSection 4, sub-s. (I) (c), of the East Punjab Public Safety Act of 1949 which was passed on the 29th March, 1949, and was to be in force until the 14th August, 1951, provided that ''The Provincial Government or the District Mag.lstratC. if satisfied \\Vith respect to any particular person that with a view to preventing hirn from acting in any manner prejudicial to the public safety or the maintenance of public order it is necessary to do so, 1nay, by order in writing, give a direction that such person shall rcn1ove himself fron1, and shall not return to, any area that 1nay oe specified in the order.\"", "canonical_name": "N. B. KHARE"}}, {"text": "Section 4", "label": "PROVISION", "start_char": 1540, "end_char": 1549, "source": "regex", "metadata": {"linked_statute_text": "Whether reasonable-Construction and Validity of Act", "statute": "Whether reasonable-Construction and Validity of Act"}}, {"text": "29th March, 1949", "label": "DATE", "start_char": 1636, "end_char": 1652, "source": "ner", "metadata": {"in_sentence": "Dr. N. B. Khart v.\n\nT ht St alt of Delhi\n\nSection 4, sub-s. (I) (c), of the East Punjab Public Safety Act of 1949 which was passed on the 29th March, 1949, and was to be in force until the 14th August, 1951, provided that ''The Provincial Government or the District Mag.lstratC. if satisfied \\Vith respect to any particular person that with a view to preventing hirn from acting in any manner prejudicial to the public safety or the maintenance of public order it is necessary to do so, 1nay, by order in writing, give a direction that such person shall rcn1ove himself fron1, and shall not return to, any area that 1nay oe specified in the order.\""}}, {"text": "14th August, 1951", "label": "DATE", "start_char": 1687, "end_char": 1704, "source": "ner", "metadata": {"in_sentence": "Dr. N. B. Khart v.\n\nT ht St alt of Delhi\n\nSection 4, sub-s. (I) (c), of the East Punjab Public Safety Act of 1949 which was passed on the 29th March, 1949, and was to be in force until the 14th August, 1951, provided that ''The Provincial Government or the District Mag.lstratC. if satisfied \\Vith respect to any particular person that with a view to preventing hirn from acting in any manner prejudicial to the public safety or the maintenance of public order it is necessary to do so, 1nay, by order in writing, give a direction that such person shall rcn1ove himself fron1, and shall not return to, any area that 1nay oe specified in the order.\""}}, {"text": "s. 4", "label": "PROVISION", "start_char": 2166, "end_char": 2170, "source": "regex", "metadata": {"linked_statute_text": "Whether reasonable-Construction and Validity of Act", "statute": "Whether reasonable-Construction and Validity of Act"}}, {"text": "s. 4", "label": "PROVISION", "start_char": 2514, "end_char": 2518, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 3", "label": "PROVISION", "start_char": 2821, "end_char": 2825, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 4", "label": "PROVISION", "start_char": 2885, "end_char": 2889, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 2948, "end_char": 2955, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "India", "label": "GPE", "start_char": 3200, "end_char": 3205, "source": "ner", "metadata": {"in_sentence": "32 of the Constitution for a writ of cntiorari contending that the order was illegal inasmuch as the provisions of t_he above mentioned Act under wliich the order was made infringed the fundamental right to move freely throughout the territory of India which was guaranteed by Art."}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 3230, "end_char": 3237, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 13", "label": "PROVISION", "start_char": 3298, "end_char": 3305, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "KANIA", "label": "JUDGE", "start_char": 3342, "end_char": 3347, "source": "ner", "metadata": {"in_sentence": "13 (I) of the Constitution : Held, per KANIA C. J., FAzL ALI and PATANJALI SAsTRI, JJ-\n\n(MAHAJAN and MuKHERJEA, JJ.", "canonical_name": "KANIYA C."}}, {"text": "FAzL ALI", "label": "JUDGE", "start_char": 3355, "end_char": 3363, "source": "ner", "metadata": {"in_sentence": "13 (I) of the Constitution : Held, per KANIA C. J., FAzL ALI and PATANJALI SAsTRI, JJ-\n\n(MAHAJAN and MuKHERJEA, JJ.", "canonical_name": "FAzL ALI"}}, {"text": "PATANJALI SAsTRI", "label": "JUDGE", "start_char": 3368, "end_char": 3384, "source": "ner", "metadata": {"in_sentence": "13 (I) of the Constitution : Held, per KANIA C. J., FAzL ALI and PATANJALI SAsTRI, JJ-\n\n(MAHAJAN and MuKHERJEA, JJ.", "canonical_name": "PATANJALI SASTRI J."}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 3392, "end_char": 3399, "source": "ner", "metadata": {"in_sentence": "13 (I) of the Constitution : Held, per KANIA C. J., FAzL ALI and PATANJALI SAsTRI, JJ-\n\n(MAHAJAN and MuKHERJEA, JJ."}}, {"text": "s. 4", "label": "PROVISION", "start_char": 3519, "end_char": 3523, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 4", "label": "PROVISION", "start_char": 3747, "end_char": 3751, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 4461, "end_char": 4468, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 13", "label": "PROVISION", "start_char": 4523, "end_char": 4530, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "MlliAJAN", "label": "JUDGE", "start_char": 4601, "end_char": 4609, "source": "ner", "metadata": {"in_sentence": "Per MuKHERJEA J. (MlliAJAN J. concurring)-Though cercain authorities can be invested with power to make\n\ninitial orders on their own satisfaction in cases of this descrip- 1950 tion, and s. 4 ( 1) ( c) of the East Punjab Public Safety Act cannot be pronounced."}}, {"text": "s. 4", "label": "PROVISION", "start_char": 4770, "end_char": 4774, "source": "regex", "metadata": {"statute": null}}, {"text": "N. B. Khm•", "label": "PETITIONER", "start_char": 4891, "end_char": 4901, "source": "ner", "metadata": {"in_sentence": "to be unreasonable simply because an order Dr. N. B. Khm• could be passed by the Provincial Government or the District v.\n\nMagistrate on their own personal satisfaction and not on The State of Delh7 materials, which satisfy certain objective' tests, yet, the position would be different if the order thus made is allowed to continue for any indefinite period of time without giving the aggrieved person an oppellant under section 57 of the Stamp Act and minor points of distinction between the schemes of the two Acts are immaterial for the present discussion.\n\nIn t;.he words of Lord Cairns the very nature. of the thing empowered to be. done by t; he appellant and the conditions under which he has to fix the amount of the duty, couple the power with the duty to state a case for the opinion of the Court.\n\nThe provisions of section 51 (1) and (3) run on the same lines as section 59 of the Stamp Act.\n\nMr.\n\nDaphtary next pointed out that there was a difference in the scheme of the Act, because when the Collector issued a certificate under section 32, even though his assessment might be faulty and against the interest of the State, the State or the appellant had no remedy.\n\nThis overlooks the provisions of the . section empowering the Collector to issue the certificate.\n\nThe scheme of the Stamp Act may be briefly noticed. Chapter II • contains provisions about the liability of instruments 'tq duty, of the time of stamping instruments, of valuations for duty and provisions as to the person by whom duty is payable.\n\nChapter III which contains only two .. sections deals with the adjudication as to stamps.\n\nThe first (section 31) is where an instrument, whether executed or not and whether previously stamped or not, is brought to the Collector with an application to have his opinion as to the duty with which it is chargeable.\n\nFor obtaining that opinion the applicant has to pay a \"fee. , The Collector mav call for information and t.akc evidence. After he has done so he determines the\n\nChief Controlling\n\nRiv. Authoril.J\n\nv •.\n\nMaharashtra Sugar Mills Lid.\n\nKaniaC.J.\n\nChief CmitrDlling\n\n&f}. Authority\n\nv. ftlaharashlra S•gar MiJu Ltd.\n\nSUJ,>REME COURT REPORTS [19501\n\namount of the stamp duty and certifies under section 32 thar the full duty with which it is chargeable has been paid, It is obvious that the party applying is interested in obtaining the opinion and therefore he cannot object to the certificate of the Collector.\n\nIf the Collector himself is in doubt he has the power under section 56 (2) to ask for the opinion of the appellant.\n\nIt is therefore clear that in respect of these two provisions under Chapter III no grievance could exist on either side.\n\nFrom section 33 and Chapter IV onwards there are provisions in which the opinion of the Stamp Officer and of the party interested in paying the stamp duty may come in conflict.\n\nThe sections in Chapters IV, V and VI ending with section 61, deal with situations arising from such difference of opinion.\n\nSection 57 (!) falls under this .heading.\n\nIn our opinion, there fore, this contention of the aP, pellant fails.\n\nThe next point urged was whether tl'ie High Coun has jurisdiction to order the Revenue Authority to state a case in face of the provisions of section 226 of the Government of India Act,\n\n1935. The argument was urged in two parts : Firstly, that this being a revenue matter, the jurisdiction of the Court was excluded.\n\nSecondly, that the matter had ceased to be in the stage of assessment but had reached the stage of collection of stamp duty.\n\nOn that ground the present case was sought to be distinguished from A/cock's case ( ').\n\nIn our opinion this argument of the appellant must also fail.\n\nA similar argument based on the wording of the corresponding section 106 (2) of the Government of India Act, 1915, as mentioned above, was urged in Alcock'; case ( 1 ). On that point their Lordships observed i!S follows :-\"Upon the point thus broadly stated their Lordships have no difficulty in pronouncing a decision.\n\nTo argue that if the legislature says that a public officer. even a revenue officer, shall do a thing and he, without cause or justification, refused to do that thing, yet the Specific Relief Act would not be applicable and there would be no power in the Conn to compel him to give relief to the subject is to state a\n\n(') 50 I.A. 227.\n\nproposition to which their Lordships must refuse assent.\" In dealing with the argument that because of section 106 (2) of the Government of India Act, 1915 the High Court had no jurisdiction to make the order, the Board observed as follows :-\"In their Lordships' view the order of a High Court to a revenue officer to do his statutory duty would not be the exercise of original . jurisdiction in any matter concerning the revenue.\" In our opi_n_ion, in the present case also the respondent seeks the Court's intervention to make the appellant perform his statutory duty to state a case.\n\nThat is not exercising the original jurisdiction of the Court in any matter concerning the revenue.\n\nIt is only asking the appellant to perform his statutory duty. The further argument that the proceedings in this case had passed beyond . the stage of assessment and had reached the stage of\n\n. enforcing payment is again irrelevant because by the -relief granted by the High Court no attempt is made\n\nto obstruct the Revenue Authority in the discharge of his duties.\n\nAt one stage an injunction was granted _ against the appellant but that has been cancelled.\n\nIn fact, this aspect of the discussion is only academic because if payment .is enforced and the opinion of the Court, on the statement of the case is against the appellant, he will have to act in conformity with that . opinion under section 59 (2) of the Stamp Act and refund whatever may be held to be recovered in excess.\n\nIn our opinion therefore the contentions of the: appellant fail and the appeal is dismissed with costs.\n\nAppeal dismissed.\n\nAgent for the appellant: R. S. Narula.\n\nAgent for the respondent: Tanuhhai C. Desai.\n\n3-5 S. C India (N.D.> 58\n\nChief Con1,,, l/ing\n\nRtv. Authorit.7\n\nMaharashtra Sugar Mills lJd.\n\nKaniaC.J.", "total_entities": 106, "entities": [{"text": "Gan pat Rai", "label": "LAWYER", "start_char": 347, "end_char": 358, "source": "ner", "metadata": {"in_sentence": "Agent for the petitioner: Gan pat Rai."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 391, "end_char": 402, "source": "ner", "metadata": {"in_sentence": "Agent for the opposite party: P. A. Mehta."}}, {"text": "CHIEF CONTROLLING REVENUE AUTHORITY", "label": "PETITIONER", "start_char": 405, "end_char": 440, "source": "metadata", "metadata": {"canonical_name": "CHIEF CONTROLLING REVENUE AUTHORITY", "offset_not_found": false}}, {"text": "AND\n\nSUPERINTENDENT OF STAMPS\n\nti.\n\nMAHARASHTRA SUGAR MILLS\n\nLTD.", "label": "RESPONDENT", "start_char": 442, "end_char": 507, "source": "metadata", "metadata": {"canonical_name": "SUPERINTENDENT OF STAMPS AND MAHARASHTRA SUGAR MILLS LTD", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 552, "end_char": 568, "source": "metadata", "metadata": {"canonical_name": "M. PATANJALI SASTRI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 570, "end_char": 588, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "MUKHERJEA J", "label": "JUDGE", "start_char": 594, "end_char": 605, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA", "offset_not_found": false}}, {"text": "Indian Stamp Act", "label": "STATUTE", "start_char": 611, "end_char": 627, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "ss. 57, 59", "label": "PROVISION", "start_char": 642, "end_char": 652, "source": "regex", "metadata": {"linked_statute_text": "Indian Stamp Act", "statute": "Indian Stamp Act"}}, {"text": "Original Side of High Court-Government of India Act, 1935", "label": "STATUTE", "start_char": 858, "end_char": 915, "source": "regex", "metadata": {}}, {"text": "s. 266(1)", "label": "PROVISION", "start_char": 917, "end_char": 926, "source": "regex", "metadata": {"linked_statute_text": "Original Side of High Court-Government of India Act, 1935", "statute": "Original Side of High Court-Government of India Act, 1935"}}, {"text": "Sec. 57", "label": "PROVISION", "start_char": 983, "end_char": 990, "source": "regex", "metadata": {"linked_statute_text": "Original Side of High Court-Government of India Act, 1935", "statute": "Original Side of High Court-Government of India Act, 1935"}}, {"text": "Indian Stamp Act", "label": "STATUTE", "start_char": 998, "end_char": 1014, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Sec. 226", "label": "PROVISION", "start_char": 1733, "end_char": 1741, "source": "regex", "metadata": {"linked_statute_text": "Original Side of High Court-Government of India Act, 1935", "statute": "Original Side of High Court-Government of India Act, 1935"}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 1749, "end_char": 1778, "source": "regex", "metadata": {}}, {"text": "Sec. 57", "label": "PROVISION", "start_char": 1895, "end_char": 1902, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "Sec. 226", "label": "PROVISION", "start_char": 1938, "end_char": 1946, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "Sec. 59", "label": "PROVISION", "start_char": 2306, "end_char": 2313, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "High Court of Judicature at Bombay", "label": "COURT", "start_char": 2347, "end_char": 2381, "source": "ner", "metadata": {"in_sentence": "APPEAL from the High Court of Judicature at Bombay : Civil Appeal No."}}, {"text": "High Court of Bombay", "label": "COURT", "start_char": 2467, "end_char": 2487, "source": "ner", "metadata": {"in_sentence": "This was an appeal from a judgment and order of the High Court of Bombay (Chagla, Acting C. J. and Bhagwati J.) dated 2nd September, 1947, in Appeal No."}}, {"text": "Chagla", "label": "JUDGE", "start_char": 2489, "end_char": 2495, "source": "ner", "metadata": {"in_sentence": "This was an appeal from a judgment and order of the High Court of Bombay (Chagla, Acting C. J. and Bhagwati J.) dated 2nd September, 1947, in Appeal No."}}, {"text": "Bhagwati", "label": "JUDGE", "start_char": 2514, "end_char": 2522, "source": "ner", "metadata": {"in_sentence": "This was an appeal from a judgment and order of the High Court of Bombay (Chagla, Acting C. J. and Bhagwati J.) dated 2nd September, 1947, in Appeal No."}}, {"text": "2nd September, 1947", "label": "DATE", "start_char": 2533, "end_char": 2552, "source": "ner", "metadata": {"in_sentence": "This was an appeal from a judgment and order of the High Court of Bombay (Chagla, Acting C. J. and Bhagwati J.) dated 2nd September, 1947, in Appeal No."}}, {"text": "K. Daphtary", "label": "LAWYER", "start_char": 2627, "end_char": 2638, "source": "ner", "metadata": {"in_sentence": "K. Daphtary, Advocate-General of Bombay (M. M. Desai, with him) for the appellant.", "canonical_name": "K. Daphtary"}}, {"text": "M. M. Desai", "label": "LAWYER", "start_char": 2668, "end_char": 2679, "source": "ner", "metadata": {"in_sentence": "K. Daphtary, Advocate-General of Bombay (M. M. Desai, with him) for the appellant."}}, {"text": "M. C. Setalvad", "label": "LAWYER", "start_char": 2711, "end_char": 2725, "source": "ner", "metadata": {"in_sentence": "M. C. Setalvad, Attorney-General for India (S.S.\n\nRagnekar, with him) for the respondent."}}, {"text": "S.S.\n\nRagnekar", "label": "LAWYER", "start_char": 2755, "end_char": 2769, "source": "ner", "metadata": {"in_sentence": "M. C. Setalvad, Attorney-General for India (S.S.\n\nRagnekar, with him) for the respondent."}}, {"text": "KANIA", "label": "JUDGE", "start_char": 2866, "end_char": 2871, "source": "ner", "metadata": {"in_sentence": "KANIA C. J.-This is an appe-al from a judgment of the High Court at Bombay and it relates to the jurisdiction of the Court to direct the Chief Controlling Revenue Authority and the Superintendent of Stamps at Bombay to state a case for the opinion of the Court under section 57 of the Stamp Act.", "canonical_name": "KANIA"}}, {"text": "section 57", "label": "PROVISION", "start_char": 3133, "end_char": 3143, "source": "regex", "metadata": {"statute": null}}, {"text": "Central Bank of India Ltd.", "label": "ORG", "start_char": 3229, "end_char": 3255, "source": "ner", "metadata": {"in_sentence": "The respondent company, for its business, borrowed money from the Central Bank of India Ltd. at Bombay."}}, {"text": "Bombay", "label": "GPE", "start_char": 3259, "end_char": 3265, "source": "ner", "metadata": {"in_sentence": "The respondent company, for its business, borrowed money from the Central Bank of India Ltd. at Bombay."}}, {"text": "22nd of March, 1945", "label": "DATE", "start_char": 3327, "end_char": 3346, "source": "ner", "metadata": {"in_sentence": "In order to secure the loan a document was executed on the 22nd of March, 1945, with a stamp of Rs."}}, {"text": "Assistant Superintendent of Stamps\n\nChief Conli'ollina", "label": "RESPONDENT", "start_char": 3582, "end_char": 3636, "source": "ner", "metadata": {"in_sentence": "The Assistant Superintendent of Stamps\n\nChief Conli'ollina\n\nRev. Authority\n\nMaharashlTa Sugar Mills Ltd.\n\nKania C.J.\n\nCliiAJ ConJrol/ing\n\nRev. Aflthori!J\n\nVo Maharashlr• Gug\"r Mills-W.\n\nEam•C.J.\n\nwrote to the respondent that the document was a mortgage with possession, chargeable with duty under article 40 (a) of the Schedule and inquired why it was not duly stamped before execution."}}, {"text": "Kania", "label": "JUDGE", "start_char": 3684, "end_char": 3689, "source": "ner", "metadata": {"in_sentence": "The Assistant Superintendent of Stamps\n\nChief Conli'ollina\n\nRev. Authority\n\nMaharashlTa Sugar Mills Ltd.\n\nKania C.J.\n\nCliiAJ ConJrol/ing\n\nRev. Aflthori!J\n\nVo Maharashlr• Gug\"r Mills-W.\n\nEam•C.J.\n\nwrote to the respondent that the document was a mortgage with possession, chargeable with duty under article 40 (a) of the Schedule and inquired why it was not duly stamped before execution.", "canonical_name": "KANIA"}}, {"text": "article 40", "label": "PROVISION", "start_char": 3875, "end_char": 3885, "source": "regex", "metadata": {"statute": null}}, {"text": "27th July, 1945", "label": "DATE", "start_char": 4515, "end_char": 4530, "source": "ner", "metadata": {"in_sentence": "On the 27th July, 1945, the respondent filed a suit against the Central Bank contending that the document was not a mortgage with possession."}}, {"text": "Central Bank", "label": "ORG", "start_char": 4572, "end_char": 4584, "source": "ner", "metadata": {"in_sentence": "On the 27th July, 1945, the respondent filed a suit against the Central Bank contending that the document was not a mortgage with possession."}}, {"text": "9th August, 1945", "label": "DATE", "start_char": 4965, "end_char": 4981, "source": "ner", "metadata": {"in_sentence": "On 9th August, 1945, the respondent's solicitors informed the Assistant Superintendent that such a suit had been filed and requested that the demand for payment of stamp duty and penalty may not be pressed under the circumstances."}}, {"text": "section 48", "label": "PROVISION", "start_char": 5319, "end_char": 5329, "source": "regex", "metadata": {"statute": null}}, {"text": "17th January, 1946", "label": "DATE", "start_char": 5429, "end_char": 5447, "source": "ner", "metadata": {"in_sentence": "The Collector thereafter sent a letter to the respondents on the 17th January, 1946, demanding payment."}}, {"text": "25th of January, 1946", "label": "DATE", "start_char": 5475, "end_char": 5496, "source": "ner", "metadata": {"in_sentence": "On the 25th of January, 1946."}}, {"text": "section 56", "label": "PROVISION", "start_char": 6018, "end_char": 6028, "source": "regex", "metadata": {"statute": null}}, {"text": "5th of February", "label": "DATE", "start_char": 6230, "end_char": 6245, "source": "ner", "metadata": {"in_sentence": "A petition on behalf of the respondent to the appellant was also filed on the 5th of February in which it was prayed that either the order of the Assistant Superintendent of Stamps be rescinded or in the alternative a case may be referred under section 57 of the Stamp' Act for the opinion of the High Court."}}, {"text": "section 57", "label": "PROVISION", "start_char": 6397, "end_char": 6407, "source": "regex", "metadata": {"statute": null}}, {"text": "4th July, 1946", "label": "DATE", "start_char": 6496, "end_char": 6510, "source": "ner", "metadata": {"in_sentence": "This petition was rejected on the 4th July, 1946."}}, {"text": "19th of July, i94b", "label": "DATE", "start_char": 6580, "end_char": 6598, "source": "ner", "metadata": {"in_sentence": "The respondent thereupon filed a petition in the High Court on the 19th of July, i94b, praying that a writ of certiorari way be issued against the appellant, or an order may be made against him under section 45 of the Specific Relief Act, to cancel the levy of the stamp duty and penalty as claimed on behalf of the appellant or in the alternative the appellant may be ordered under section 57 of the Stamp Act to refer the matter to the High Court for its opinion."}}, {"text": "section 45", "label": "PROVISION", "start_char": 6713, "end_char": 6723, "source": "regex", "metadata": {"statute": null}}, {"text": "Specific Relief Act", "label": "STATUTE", "start_char": 6731, "end_char": 6750, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 57", "label": "PROVISION", "start_char": 6896, "end_char": 6906, "source": "regex", "metadata": {"statute": null}}, {"text": "Blagden", "label": "JUDGE", "start_char": 7027, "end_char": 7034, "source": "ner", "metadata": {"in_sentence": "The matter came for hearing before Mr. Justice Blagden who did not grant the first relief but directed the appellant to state a case under section 57 of the Stamp Act to the Court for its opinion."}}, {"text": "section 57", "label": "PROVISION", "start_char": 7119, "end_char": 7129, "source": "regex", "metadata": {"statute": null}}, {"text": "section 57", "label": "PROVISION", "start_char": 7348, "end_char": 7358, "source": "regex", "metadata": {"statute": null}}, {"text": "section 226", "label": "PROVISION", "start_char": 7578, "end_char": 7589, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 7601, "end_char": 7630, "source": "regex", "metadata": {}}, {"text": "section 57", "label": "PROVISION", "start_char": 7991, "end_char": 8001, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "section 56", "label": "PROVISION", "start_char": 8282, "end_char": 8292, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "Section 226", "label": "PROVISION", "start_char": 8490, "end_char": 8501, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "Government of India Ac~, 1935", "label": "ORG", "start_char": 8513, "end_char": 8542, "source": "ner", "metadata": {"in_sentence": "sub-section (2), or otherwise coming to its notice, and refer such case, with its own opinion thereon-\n•\n\n(b) if it arises in the Province of Bombay, to the High Court at Bombay; ...... \"\n\nSection 226 (l) of the Government of India Ac~, 1935, runs as follows :-\n\n\"226. ("}}, {"text": "section 57", "label": "PROVISION", "start_char": 8951, "end_char": 8961, "source": "regex", "metadata": {"statute": null}}, {"text": "section 56", "label": "PROVISION", "start_char": 9313, "end_char": 9323, "source": "regex", "metadata": {"statute": null}}, {"text": "section 60", "label": "PROVISION", "start_char": 9587, "end_char": 9597, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 57", "label": "PROVISION", "start_char": 9876, "end_char": 9886, "source": "regex", "metadata": {"statute": null}}, {"text": "section 57", "label": "PROVISION", "start_char": 10600, "end_char": 10610, "source": "regex", "metadata": {"statute": null}}, {"text": "section 56", "label": "PROVISION", "start_char": 11984, "end_char": 11994, "source": "regex", "metadata": {"statute": null}}, {"text": "section 60", "label": "PROVISION", "start_char": 12004, "end_char": 12014, "source": "regex", "metadata": {"statute": null}}, {"text": "section 57", "label": "PROVISION", "start_char": 12434, "end_char": 12444, "source": "regex", "metadata": {"statute": null}}, {"text": ".Maharashlra Sugar", "label": "RESPONDENT", "start_char": 12691, "end_char": 12709, "source": "ner", "metadata": {"in_sentence": "Authoritf\n\nv. .Maharashlra Sugar Mills Lid."}}, {"text": "section 57", "label": "PROVISION", "start_char": 12835, "end_char": 12845, "source": "regex", "metadata": {"statute": null}}, {"text": "section 51", "label": "PROVISION", "start_char": 13366, "end_char": 13376, "source": "regex", "metadata": {"statute": null}}, {"text": "section 106", "label": "PROVISION", "start_char": 15975, "end_char": 15986, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of India Act, 1915", "label": "STATUTE", "start_char": 15998, "end_char": 16027, "source": "regex", "metadata": {}}, {"text": "Viscount Haldane", "label": "JUDGE", "start_char": 16069, "end_char": 16085, "source": "ner", "metadata": {"in_sentence": "The judgment of the Board consisting of Viscount Haldane, Lord Phillimore and Lord Carson was delivered by Lord Phillimore."}}, {"text": "Phillimore", "label": "OTHER_PERSON", "start_char": 16092, "end_char": 16102, "source": "ner", "metadata": {"in_sentence": "The judgment of the Board consisting of Viscount Haldane, Lord Phillimore and Lord Carson was delivered by Lord Phillimore."}}, {"text": "Carson", "label": "OTHER_PERSON", "start_char": 16112, "end_char": 16118, "source": "ner", "metadata": {"in_sentence": "The judgment of the Board consisting of Viscount Haldane, Lord Phillimore and Lord Carson was delivered by Lord Phillimore."}}, {"text": "section 51", "label": "PROVISION", "start_char": 17429, "end_char": 17439, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Income Tax Act, 1918", "label": "STATUTE", "start_char": 17451, "end_char": 17478, "source": "regex", "metadata": {}}, {"text": "Cairns", "label": "OTHER_PERSON", "start_char": 18067, "end_char": 18073, "source": "ner", "metadata": {"in_sentence": "To use the language of Lord Cairns in the case of /ulius v. Bishop of Oxford ( 1 ): 'There may be something in the nature of the thing empowered to be done, something in the object for which it is to be done, something in the conditions under which it is to be done, something in the title of the person or persons for whose benefit the power is to be exercised, which may couple the power with a duty, and make it the duty of the person in whom the power is reposed to exercise that power when called upon to do so.'"}}, {"text": "Chief Revenue Authority", "label": "ORG", "start_char": 18687, "end_char": 18710, "source": "ner", "metadata": {"in_sentence": "that there is a serious point of law to be considered, there does lie a ducy upon the Chief Revenue Authority to state a case for the opinion of the Court, and if he does not apyreciate that there is such a serious point, it is in the power of the Court to control him and to order him to state a case.\""}}, {"text": "26th of January, 1950", "label": "DATE", "start_char": 19006, "end_char": 19027, "source": "ner", "metadata": {"in_sentence": "This reasoning and conclusions, although they have not now the compelling force they had before the 26th of January, 1950, are entitled to great respect."}}, {"text": "section 57", "label": "PROVISION", "start_char": 19217, "end_char": 19227, "source": "regex", "metadata": {"statute": null}}, {"text": "Daphtary", "label": "LAWYER", "start_char": 19682, "end_char": 19690, "source": "ner", "metadata": {"in_sentence": "Mr. Daphtary on behalf of the appellant tried to distinguish ' this case on the ground that the scheme -of the Income Tax Act was different from the scheme\nOf the Stamp Act.", "canonical_name": "K. Daphtary"}}, {"text": "section 57", "label": "PROVISION", "start_char": 19997, "end_char": 20007, "source": "regex", "metadata": {"statute": null}}, {"text": "section 51", "label": "PROVISION", "start_char": 20403, "end_char": 20413, "source": "regex", "metadata": {"statute": null}}, {"text": "section 59", "label": "PROVISION", "start_char": 20451, "end_char": 20461, "source": "regex", "metadata": {"statute": null}}, {"text": "section 32", "label": "PROVISION", "start_char": 20620, "end_char": 20630, "source": "regex", "metadata": {"statute": null}}, {"text": "section 31", "label": "PROVISION", "start_char": 21206, "end_char": 21216, "source": "regex", "metadata": {"statute": null}}, {"text": "Maharashtra Sugar Mills Lid", "label": "RESPONDENT", "start_char": 21621, "end_char": 21648, "source": "ner", "metadata": {"in_sentence": "J\n\nv •.\n\nMaharashtra Sugar Mills Lid.", "canonical_name": "Maharashtra Sugar Mills Lid"}}, {"text": "ftlaharashlra S•gar MiJu Ltd.", "label": "RESPONDENT", "start_char": 21700, "end_char": 21729, "source": "ner", "metadata": {"in_sentence": "Authority\n\nv. ftlaharashlra S•gar MiJu Ltd.\n\nSUJ,>REME COURT REPORTS [19501\n\namount of the stamp duty and certifies under section 32 thar the full duty with which it is chargeable has been paid, It is obvious that the party applying is interested in obtaining the opinion and therefore he cannot object to the certificate of the Collector."}}, {"text": "section 32", "label": "PROVISION", "start_char": 21808, "end_char": 21818, "source": "regex", "metadata": {"statute": null}}, {"text": "section 56", "label": "PROVISION", "start_char": 22087, "end_char": 22097, "source": "regex", "metadata": {"statute": null}}, {"text": "section 33", "label": "PROVISION", "start_char": 22271, "end_char": 22281, "source": "regex", "metadata": {"statute": null}}, {"text": "section 61", "label": "PROVISION", "start_char": 22494, "end_char": 22504, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 57", "label": "PROVISION", "start_char": 22569, "end_char": 22579, "source": "regex", "metadata": {"statute": null}}, {"text": "section 226", "label": "PROVISION", "start_char": 22825, "end_char": 22836, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of India Act", "label": "STATUTE", "start_char": 22844, "end_char": 22867, "source": "regex", "metadata": {}}, {"text": "section 106", "label": "PROVISION", "start_char": 23341, "end_char": 23352, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act,\n\n1935", "statute": "the Government of India Act,\n\n1935"}}, {"text": "Government of India Act, 1915", "label": "STATUTE", "start_char": 23364, "end_char": 23393, "source": "regex", "metadata": {}}, {"text": "Alcock", "label": "OTHER_PERSON", "start_char": 23428, "end_char": 23434, "source": "ner", "metadata": {"in_sentence": "A similar argument based on the wording of the corresponding section 106 (2) of the Government of India Act, 1915, as mentioned above, was urged in Alcock'; case ( 1 )."}}, {"text": "Specific Relief Act", "label": "STATUTE", "start_char": 23777, "end_char": 23796, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 106", "label": "PROVISION", "start_char": 24041, "end_char": 24052, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1915", "statute": "the Government of India Act, 1915"}}, {"text": "Government of India Act, 1915", "label": "STATUTE", "start_char": 24064, "end_char": 24093, "source": "regex", "metadata": {}}, {"text": "section 59", "label": "PROVISION", "start_char": 25321, "end_char": 25331, "source": "regex", "metadata": {"statute": null}}, {"text": "R. S. Narula", "label": "LAWYER", "start_char": 25562, "end_char": 25574, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: R. S. Narula."}}, {"text": "Tanuhhai C. Desai", "label": "LAWYER", "start_char": 25603, "end_char": 25620, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: Tanuhhai C. Desai."}}, {"text": "S. C India", "label": "RESPONDENT", "start_char": 25627, "end_char": 25637, "source": "ner", "metadata": {"in_sentence": "3-5 S. C India (N.D.> 58\n\nChief Con1,,, l/ing\n\nRtv."}}, {"text": "Maharashtra Sugar Mills", "label": "RESPONDENT", "start_char": 25687, "end_char": 25710, "source": "ner", "metadata": {"in_sentence": "Authorit.7\n\nMaharashtra Sugar Mills lJd.", "canonical_name": "Maharashtra Sugar Mills Lid"}}]} {"document_id": "1950_1_548_553_EN", "year": 1950, "text": "M-clause interest is deductible whether the amount borrowed on the security of the property was spent on the property or not.\n\nThere is no question of any capital or other expenditure on the property.\n\nThe expression \"capital charge\" in the sub-clause cannot connote a charge on the capital, that is, the property assessed.\n\nThat would be a redundancy as the opening words themselves clearly indicate that the charge is on the property.\n\nWe are therefore of opinion that capital charge here could only mean a charge created for a capital sum, i.e., a charge to secure the discharge of a liability of a capital nature.\n\nIn 1933 the Privy Council decided the case of Biioy Singh Dud huria v. Commissioner of Income-tax Calcutta (1 ).\n\nIt was not an assessment under section 9 but an assessment on the general income of an assessee who was liable to pay maintenance for his step-mother which had been charged on all his assets by a decree of Court.\n\nIt was not a liability voluntarily incurred by him but one cast on him by law. The Privy Council held that the amount paid by him in discharge of that liability formed no part of his real income and so should not be included in his assessment. Though the deci, ion proceeded on the principle that the outgoings were not part of the assessee's income at all, the framers of the amending Act of 1939 wanted, apparently, to extend the principle, so far as the assessment of property was concerned, even to cases where obligatory payments had to be made out of the assessee's income from the property charged with such payments, and the second sub-clause, namely, \"where the property is subject to an annual charge not being a capital charge, the amount of such charge\" was added.\n\nIt is this sul>-clause which the appellant invokes in support of its claim to deduction of the municipal and urban property taxes in the present case.\n\nIn view of the opening words of the newly added sul>-clause, the expression \"capital charge\" also used therein cannot have reference to a charge on the property, and we think it must\n\n(1) T.t •. R. 6o Cal. 1029.\n\nbe understood in the same sense as in sub-clause ( 1); that is to say, the first sub-clause having provided for deduction of interest where a capital sum is charged on the property, this sub-clause provides for adeduction of annual sums so charged, such sums not being capital sums, the limiting words being intended to exclude cases where capital raised on the securiy of the property is made repayable in instalments.\n\nIn Commissioner of Income-tax, Bombay v.\n\nMahomedbhoy Rowji (1), a Bench of the Bombay High Court considered the meaning of these words.\n\nAs regards \"annual charge,\" Beaumont C. J. observed as follows:-\n\n\"The words, I think, would cover a charge to secure an annual liability.\"\n\nKania J ., as he then was, said as follows :-\n\n\"I do not see how a charge can be annual unless it rnearis a charge in respect of a payment to be made a nmw ll v.\"\n\nThis construction of the words has been followed in the iudgment under appeal.\n\nIn Gappumal Kanhaiya Lal v.\n\nCommissioner of Income-tax (2) (the connected appeal before use), the Bench of the Allahabad High Court agreed with the construction placed on these words in the Bombay case, i.e., the words \"annual charge\" mean a charge to secure an annual liabilitv.\n\nIt is therefore clear that there is no conflit of jdicial decisions as to the meaning of the phrase \"annual charge\" occurring in sectian 9 (1) (iv) and the meaning given is the natural meaning of these words.\n\nAs. to the phrase \"capital charge\", Beaumont C. J. in the case above referred to took the view that the words mean a charge on capital.\n\nKania J., however, took a different view and observed that he was not prepared to accept the suggestion that a document which provides for a certain payment to be made monthly or annually and charged on immoveable propel:ty or the estate of an individual becomes a capital charge.\n\nIn the Allahabad judgment under appeal these\n\nNtt11 Pieugoods Bazar Co. Ltd.\n\nCommissioner of lncMm-lfVI,.\n\nBomhiJALI SASTRI MEHR CHAND MAHAJAN\n\nMuKHERJEA and DAs J J. J\n\nConstitution of India, Arts. 19 (1), 19 (6), 32-Fundamental right to carry on trade-Reasonableness of restrictions imposed- U. P. Municipalities Act, 1916, s. 241\n\n(2) (a)-Municipal bye/aw prohibiting carrying on u1holesale trade without permission-Absence of provisions for issuing license to old traders-Provisfons permitting grant of monopoly-Lt:gality of bye/aw.\n\nByelaw No. 2 of the byclaws of a municipal board, which came into force on the 1st January, 1950, provided that\n\n0 no person shall establish any new n1arket or place for wholesale transactions without obtaining the previous permission of the board, and no person shall sell or expose for sale any vegetable, fruit, etc. at any Place other than -that fixed by the board for. the purpose\"; and byelaw No. 4 permitted the grant of a monopoly to a contractor to deal in wholesale transactions at the place fixed as a market.\n\nIn anticipation of these byclaws the monopoly right to do wholesale business in vegetable for three years was auctioned by the municipal board and granted to the highest bidder and a place was also fixed as the market where such business could be carried on. The petitioner who had been carrying on wholesale business in vegetables at a rented shop with:.o the mtµticipality for two years before the byelaws came into force applO!:d for a license to carry on his business at his shop but this was rejected on the ground that there was no provision in the byelaws authorising the grant of any . such license, and he was prosecuted for contravention of th'c byelaws.\n\nHe applied under Art. 32 of the Constitution for the enforcement of his fundamental right as a citizen to carry on his busincsa which was gaaranteed by Art. 19 (1) of the Constitution.\n\nHeld\n\n(i) . that the prohibition in byelaw No. 2 became absolute in the absence of provision authorising the issue of a license, and inasmuch as the municipal board had, further, put it out of its power to grant a license to the petitioner by granting a monopoly, the restrictions imposed \\Vere not reasonable within\n\nthe meaning of Art. 19 ( 6) of the Constitution, and the byelaws were accordingly void and the prosecution of the petitioner illegal, (ii) that the fact that the Constitution came into force only after the byelaws had come into force did not affect the petitioner's right to carry on his business.\n\nHeld also, that an appeal under section 318 of the U. P.\n\nMunicipalities Act was not _in the circumstances an adequate legal remedy the_ existence of which would disentitlc the petitioner from maintaining this application.\n\nORIGINAL JuRISDICTION: Petition No. X of 1950\n\nThis was an application under article 32 (1) of the Constitution for the enforcement of the applicant's fundamental right to carry on his businss which was guaranteed by article 19 ( 1) of the Constitution.\n\nThe facts of the case appear in the judgment.\n\nNur-ud-din, for the petitioner.\n\nRadhelal Agaruiala, for the opposite prty.\n\nM. C. Setalvad, Attorney-General for India, ( S. M.\n\nSikri, with him), for the Union of India.\n\nPearylal Banerji, Advocate-General of U. P. ( Shri Ram, with him), for the State of Uttar Pradesh.\n\n1950.\n\nMay 19. The Judgment of the Court was delivered by\n\nDAs J.~I am reading the judgment of the Court.\n\nThis i§ an application under article 32 of the Constitution of India made by Rashid Ahmed for enforcement of his fundamental right to carry on his business which is said to have _been completely stopped by the respondent, the Municipal-- Board of K.airana.\n\nThe facts shortly are as follows:\n\nThe petitioner is an Aratia (commission agent) carrying on wholesale business in vegetables and fruits at Kairana in the District of Muzaffarnagar in the\n\nRashid Ahnid\n\nMunicipal Board,\n\nKair1111a\n\nDos].\n\nDas].\n\nSUPREME COL?RT REPORT~ f 1950 J\n\nState of Uttar Pradesh.\n\nHe has been carrying on this business for the last two years at a rented shop in Bazar Jama Masjid in the town of Kairana.\n\nUntil recently there were no bye-laws of the respondent Board regulating the sale of vegetables and fruit within the limits of the municipality.\n\nIn March, 1949, the respondent Board published certain proposed bye- .laws made under section 298 of the U.P. Municipalities Act, 1916.\n\nThese bye-laws were passeJ by the respondent Board on the 19th April, 1949.\n\nAfter confirmation by the Commissioner these bye-laws came into operation on anJ from 1st January 1950.\n\nIn anticipation of these new bye-laws coming into effect the respondent Board on the 21st May, 1949, auctioned \"the contract for wholesale of vegetables\", presumably meaning 'thereby the monopoly right to do wholesale business in vegetables.\n\nThe contract was given to one Habib Ahmad, who was the highest bjdder for three years at and for Rs. 72,750 payable in equal quarterly instalments in advance.\n\nOn the 31st December, 1949, respondent BoarJ notified a place near Police Post Imam as the market for wholesale pur.chase and sale of vegetables and fruits.\n\nThe petitioner applied for a license to carry on his wholesale Aratia business at his shop.\n\nOn or about the 22nd December, 1949, the respondent Board by resolution No. 188 rejected the petitioners application. This decision was. communicated to the petitioner on the 9th February 1950. The order of the Chairman of the respond- . ent Board was in these terms : \"According to resolution No. 188 dated 22-12-49 the application of Mr. Rashid Ahmed is rejected and he be informed accordingly\".\n\nNo reason was. assigned by the respondent Board's resolution for the rejection of the petitioner's application.\n\nWe are now informed by the learned Advocate tor the respondent Board that the application was rejected as there was no bye-law for entertaining such application or granting such license as was prayed for.\n\nThe fact that the respondent Board had already auctioned the conHact to Habib Ahmad might conceivably have had some bearing on this refusal to grant a license to the petitioner.\n\nIn the meantime on the 28th\n\nJanuary, 1950. a notice was served on the petitioner in the following terms :\n\n\"You are liereby informed that the Municipal Board, Kairana, have given the contract of wholesale .purchase and sale of the vegetables, which is in force from the 1st day of January, 1950.\n\nIt has been repeatedly promulgated, in the city by the beat of drum, through a Khakrob (sweeper) that excepting the contractor of vetables the Municipal Board, Kairana, nobody shall deal in wholesale purchase and sale of vegetables at a place other than the one approved by the Municipal Board aforesaid (i.e. the place near Police rost Imam).\n\nAs against this, you in the first place kept selling vegetables by wholesale, at the house near Jama Masjid otherwise known as Qaziwala, despite occasional verbal warnings requiring you to desist therefrom, which were conveyed through an employee of the Board. On your failure tG comply, you were warned by a notice in writing, dated the 3rd January, 1950.\n\nThat notice was duly served on you.\n\nBut still you paid no heed.\n\nAccordingly a complaint was lodged against you, under the bye-laws, quoted above, in the Court of Pargana Officer, Tahsil Kairana.\n\nThe com- .Plaint is still pending.\n\nNow you are selling wholesale by auction, vegetable at another place in Jama Masjid Bazar, which is a thoroughfare.\n\nYour above conduct is unlawful and in contravention of the Municipal Board's Bye-law 2 pertaining to vegetable contract.\n\nMoreover, highly prejudicial as it is to the interests of both the contractor and the Board, you are warned that after this notice has been served on you, you should cease to sell any more ffgetable in breach of the bye-laws above mentioned.\n\nHerein fail not.\"\n\nThis notice is rather disingenous in that while it • suggests that everybody can deal in wholesale purchase and sale of vegetables at the place approved by the Board, i.e., at the place near Police Post Imam, the , fact, as we are now told by the learned Advocate for the i:espondent BOard, is entirdy contrary for it is\n\nRashid Ahmed\n\n\"· Municipal Board,\n\nEairana\n\nDas}.\n\nRashid Ahmed\n\nMunicipal Board,\n\nKaiTtma\n\nDas).\n\nonly the contractor Habib Ahmad who can carry on wholesale business at that place.\n\nThe position, therefore, is that the petitioner cannot do any wholesale business either at the appointed marktit or at his own shop where he had admittedly been doing wholesale business for two years prior to the bye-laws coming into force.\n\nIn short, the petitioner's business has been wholly stopped and he is being prosecuted for alleged breach of the bye-laws.\n\nThe above notice was headed as \"Notice under bye-law 2 of the bye-laws pertaining to contract of vegetables.\" Bye-law 2 runs thus :\n\n\"No person shall establish any new market or\n\nplcc for wholesale transaction without obtaining the previous permission of the Board and no person shall sell or expose for sale any vegetable, fruit, etc., at any place other than that fixed by the Board for the purpose.\"\n\nThe second part of this bye-law clearly contemplates that everybody will be entitled to do business at the place fixed by the respondent Board, but as a result of a monopoly in favour of the contractor Habib Ahmad having been created, nobody else can do business at that place as conceded by the learned Advocate for the respondent Board.\n\nUnder the first part of this bye-law no person can establish a new market or place for wholesale transaction wit.hout obtaining the permission of the respondent Board.\n\nThis part of the bye-law clearly contemplates that the Board may permit the establishment of a new market for wholesale dealings in vegetables.\n\nThe petitioner applied for this permission but it was refused.\n\nBye-law 2 is still in force.\n\nIf it requires a license then under section 241 (2) (a) the respondent Board cannot refuse such license except on the ground that the place where the market or shop is established fails to comply with any condition prescribed by, or under, the Act.\n\nIt is conceded that the rejection of the petitioner's application. was not based on any such ground but that it was because there was no bye-law authorising the issue of any license.\n\nThe Constitution by article 19 ( 1) guarantees\n\nto the Indian citizen the right to ca.rry on trade or business subject to such reasonable restrictions as are mentioned in clause ( 6) of that article.\n\nThe position, however, under bye-law 2 is that while it provided that no person shall establish a market for wholesale transactions in vegetables except with the permission of the Board, there is no bye-law authorising the respondent Board to issue the license.\n\nThe nett result is that the prohibition of this bye-law, in the absence of any provision for issuing license:, becomes absolute.\n\nFurther, bye-law 4 contemplates the grant of a monopoly to a contractor to deal in wholesale transactions at the place fixed as a market.\n\nActing up, on that provision, the respondent Board has granted monopoly to Habib Ahmad and has put it out of its power to grant a license to the petitioner to carry dn wholesale business in vegetables either at the fixed market place or at any other place within the municipal limits of Kairana.\n\nThis certainly is much more than reasonable restrictions on the petitioner as are contemplated by clause (6) of article 19.\n\nThis being the position, the bye-laws would be void under article 13 (1) of the Constitution.\n\nOn the other hand, if there is no bye-law requiring . the petitioner to take out license, then there can' be no justification for the respondent Board to stop the petitioner's business or to prosecute him.\n\nr\" Learned counsel tor the respondent Board faintly contended that the bye-laws having come into force on 1st January, 1950, i.e., before the Constitution came into force, the petitioner no longer had any right to continue the business and, therefore, his case is not governed by article 19(1) (g).\n\nThere is no substance in this argument for, if it were sound, article 19 (1) (g) would only protect persons who were carrying on business before the Constitution came into force.\n\nLearned Advocate-General of Uttar Pradesh appearing for the intervener drew our attention to section 318 of the U.P. Municipalities Act, 1916, and submitted that the petitioner haviJ:ig adequate remedy by way of appeal, this Court should not grant any writ in the nature of the prerogative writ of mandamus\n\nMuniripal Botmf\n\nKairana\n\nDas].\n\nMunicipal Board,\n\nKairana\n\nDas].\n\nor certiorari.\n\nThere can be no question th.at the aistence of an adequate legal remedy is ; i thing to be taken into consideration in the matter of granting writs, but the powers given to this Court under article 32 are much wider and are not confined to issuing prerogative writs only.\n\nThe respondent Board having admittedly put it out of its power to grant a license and having regard to the fact that there is no specific bye-law authorising the issue of a license, we do not consider that the appeal under section 318 to the local Government which sanctioned the bye-laws is, in the circumstances of this case, an adequate legal remedy.\n\nWe are satisfied that in this case the petitioner's fundamental rights have been infringed and he is entitled to have his grievance redressed.\n\nThe proper order in such circumstances would be to direct the respondent Board not to prohibit the petitioner from carrying on the trade of wholesale dealer and commission agent of vegetables and fruits within the limits of the Municipal Board of Kairana, except in accordance with the bye-laws as and when framed in future according to law and further to direct the respondent Municipal Board to withdraw the pending prosecution of the petitioner and we order accordingly.\n\nThe respondents to pahthe costs of the petitioner ..\n\n' ,.\n\nPetition allowed.\n\nAgent for the petitioner : Narmitlal.\n\nAgent for the opposite party : Tarachand Bri; mohanlal.\n\nAgent for the Union of India : P. A. Mehta.\n\nAgent for Uttar Pradesh : Tarachand Bri; mohan/al.", "total_entities": 59, "entities": [{"text": "l\n\nRASHID AHMED", "label": "PETITIONER", "start_char": 36, "end_char": 51, "source": "metadata", "metadata": {"canonical_name": "l\n\nRASHID AHMED", "offset_not_found": false}}, {"text": "THE MUNICIPAL BOARD,\n\nKAIRANA.\n\nTHE UNION OF INDIA and THE STATE OF\n\nUTT AR PRADESH", "label": "RESPONDENT", "start_char": 58, "end_char": 141, "source": "metadata", "metadata": {"canonical_name": "THE MUNICIPAL BOARD, KAIRANA, THE UNION OF INDIA and THE STATE OF UTTAR PRADESH", "offset_not_found": false}}, {"text": "SHRt HARILAL KANIA", "label": "JUDGE", "start_char": 159, "end_char": 177, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "PATA>iJALI SASTRI MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 201, "end_char": 237, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "MuKHERJEA", "label": "JUDGE", "start_char": 239, "end_char": 248, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA", "offset_not_found": false}}, {"text": "DAs J", "label": "JUDGE", "start_char": 253, "end_char": 258, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 265, "end_char": 286, "source": "regex", "metadata": {}}, {"text": "Arts. 19", "label": "PROVISION", "start_char": 288, "end_char": 296, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Municipalities Act, 1916", "label": "STATUTE", "start_char": 395, "end_char": 419, "source": "regex", "metadata": {}}, {"text": "s. 241", "label": "PROVISION", "start_char": 421, "end_char": 427, "source": "regex", "metadata": {"linked_statute_text": "Municipalities Act, 1916", "statute": "Municipalities Act, 1916"}}, {"text": "1st January, 1950", "label": "DATE", "start_char": 712, "end_char": 729, "source": "ner", "metadata": {"in_sentence": "2 of the byclaws of a municipal board, which came into force on the 1st January, 1950, provided that\n\n0 no person shall establish any new n1arket or place for wholesale transactions without obtaining the previous permission of the board, and no person shall sell or expose for sale any vegetable, fruit, etc."}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 1838, "end_char": 1845, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 1973, "end_char": 1980, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 2340, "end_char": 2347, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "section 318", "label": "PROVISION", "start_char": 2656, "end_char": 2667, "source": "regex", "metadata": {"statute": null}}, {"text": "article 32", "label": "PROVISION", "start_char": 2925, "end_char": 2935, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 3065, "end_char": 3075, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Radhelal Agaruiala", "label": "LAWYER", "start_char": 3183, "end_char": 3201, "source": "ner", "metadata": {"in_sentence": "Radhelal Agaruiala, for the opposite prty."}}, {"text": "M. C. Setalvad", "label": "LAWYER", "start_char": 3227, "end_char": 3241, "source": "ner", "metadata": {"in_sentence": "M. C. Setalvad, Attorney-General for India, ( S. M.\n\nSikri, with him), for the Union of India."}}, {"text": "S. M.\n\nSikri", "label": "LAWYER", "start_char": 3273, "end_char": 3285, "source": "ner", "metadata": {"in_sentence": "M. C. Setalvad, Attorney-General for India, ( S. M.\n\nSikri, with him), for the Union of India."}}, {"text": "Pearylal Banerji", "label": "LAWYER", "start_char": 3323, "end_char": 3339, "source": "ner", "metadata": {"in_sentence": "Pearylal Banerji, Advocate-General of U. P. ( Shri Ram, with him), for the State of Uttar Pradesh."}}, {"text": "Ram, with", "label": "LAWYER", "start_char": 3374, "end_char": 3383, "source": "ner", "metadata": {"in_sentence": "Pearylal Banerji, Advocate-General of U. P. ( Shri Ram, with him), for the State of Uttar Pradesh."}}, {"text": "article 32", "label": "PROVISION", "start_char": 3559, "end_char": 3569, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 3577, "end_char": 3598, "source": "regex", "metadata": {}}, {"text": "Rashid Ahmed", "label": "LAWYER", "start_char": 3607, "end_char": 3619, "source": "ner", "metadata": {"in_sentence": "This i§ an application under article 32 of the Constitution of India made by Rashid Ahmed for enforcement of his fundamental right to carry on his business which is said to have _been completely stopped by the respondent, the Municipal-- Board of K.airana.", "canonical_name": "l\n\nRASHID AHMED"}}, {"text": "State of Uttar Pradesh", "label": "RESPONDENT", "start_char": 4068, "end_char": 4090, "source": "ner", "metadata": {"in_sentence": "SUPREME COL?RT REPORT~ f 1950 J\n\nState of Uttar Pradesh."}}, {"text": "section 298", "label": "PROVISION", "start_char": 4449, "end_char": 4460, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Municipalities Act, 1916", "label": "STATUTE", "start_char": 4473, "end_char": 4497, "source": "regex", "metadata": {}}, {"text": "1st January 1950", "label": "DATE", "start_char": 4663, "end_char": 4679, "source": "ner", "metadata": {"in_sentence": "After confirmation by the Commissioner these bye-laws came into operation on anJ from 1st January 1950."}}, {"text": "21st May, 1949", "label": "DATE", "start_char": 4767, "end_char": 4781, "source": "ner", "metadata": {"in_sentence": "In anticipation of these new bye-laws coming into effect the respondent Board on the 21st May, 1949, auctioned \"the contract for wholesale of vegetables\", presumably meaning 'thereby the monopoly right to do wholesale business in vegetables."}}, {"text": "Habib Ahmad", "label": "RESPONDENT", "start_char": 4955, "end_char": 4966, "source": "ner", "metadata": {"in_sentence": "The contract was given to one Habib Ahmad, who was the highest bjdder for three years at and for Rs.", "canonical_name": "Habib Ahmad"}}, {"text": "31st December, 1949", "label": "DATE", "start_char": 5092, "end_char": 5111, "source": "ner", "metadata": {"in_sentence": "On the 31st December, 1949, respondent BoarJ notified a place near Police Post Imam as the market for wholesale pur.chase and sale of vegetables and fruits."}}, {"text": "BoarJ", "label": "RESPONDENT", "start_char": 5124, "end_char": 5129, "source": "ner", "metadata": {"in_sentence": "On the 31st December, 1949, respondent BoarJ notified a place near Police Post Imam as the market for wholesale pur.chase and sale of vegetables and fruits."}}, {"text": "22nd December, 1949", "label": "DATE", "start_char": 5352, "end_char": 5371, "source": "ner", "metadata": {"in_sentence": "On or about the 22nd December, 1949, the respondent Board by resolution No."}}, {"text": "9th February 1950", "label": "DATE", "start_char": 5511, "end_char": 5528, "source": "ner", "metadata": {"in_sentence": "communicated to the petitioner on the 9th February 1950."}}, {"text": "22-12-49", "label": "DATE", "start_char": 5644, "end_char": 5652, "source": "ner", "metadata": {"in_sentence": "188 dated 22-12-49 the application of Mr. Rashid Ahmed is rejected and he be informed accordingly\"."}}, {"text": "Rashid Ahmed", "label": "PETITIONER", "start_char": 5676, "end_char": 5688, "source": "ner", "metadata": {"in_sentence": "188 dated 22-12-49 the application of Mr. Rashid Ahmed is rejected and he be informed accordingly\".", "canonical_name": "l\n\nRASHID AHMED"}}, {"text": "28th\n\nJanuary, 1950", "label": "DATE", "start_char": 6256, "end_char": 6275, "source": "ner", "metadata": {"in_sentence": "In the meantime on the 28th\n\nJanuary, 1950."}}, {"text": "1st day of January, 1950", "label": "DATE", "start_char": 6504, "end_char": 6528, "source": "ner", "metadata": {"in_sentence": "a notice was served on the petitioner in the following terms :\n\n\"You are liereby informed that the Municipal Board, Kairana, have given the contract of wholesale .purchase and sale of the vegetables, which is in force from the 1st day of January, 1950."}}, {"text": "3rd January, 1950", "label": "DATE", "start_char": 7214, "end_char": 7231, "source": "ner", "metadata": {"in_sentence": "On your failure tG comply, you were warned by a notice in writing, dated the 3rd January, 1950."}}, {"text": "Court of Pargana Officer, Tahsil Kairana", "label": "COURT", "start_char": 7389, "end_char": 7429, "source": "ner", "metadata": {"in_sentence": "Accordingly a complaint was lodged against you, under the bye-laws, quoted above, in the Court of Pargana Officer, Tahsil Kairana."}}, {"text": "Rashid Ahmed", "label": "WITNESS", "start_char": 8291, "end_char": 8303, "source": "ner", "metadata": {"in_sentence": "This notice is rather disingenous in that while it • suggests that everybody can deal in wholesale purchase and sale of vegetables at the place approved by the Board, i.e., at the place near Police Post Imam, the , fact, as we are now told by the learned Advocate for the i:espondent BOard, is entirdy contrary for it is\n\nRashid Ahmed\n\n\"· Municipal Board,\n\nEairana\n\nDas}."}}, {"text": "Rashid Ahmed", "label": "RESPONDENT", "start_char": 8342, "end_char": 8354, "source": "ner", "metadata": {"in_sentence": "Rashid Ahmed\n\nMunicipal Board,\n\nKaiTtma\n\nDas).", "canonical_name": "l\n\nRASHID AHMED"}}, {"text": "Habib Ahmad", "label": "RESPONDENT", "start_char": 8410, "end_char": 8421, "source": "ner", "metadata": {"in_sentence": "only the contractor Habib Ahmad who can carry on wholesale business at that place.", "canonical_name": "Habib Ahmad"}}, {"text": "section 241", "label": "PROVISION", "start_char": 10028, "end_char": 10039, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 10446, "end_char": 10456, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Kairana", "label": "GPE", "start_char": 11446, "end_char": 11453, "source": "ner", "metadata": {"in_sentence": "Acting up, on that provision, the respondent Board has granted monopoly to Habib Ahmad and has put it out of its power to grant a license to the petitioner to carry dn wholesale business in vegetables either at the fixed market place or at any other place within the municipal limits of Kairana."}}, {"text": "article 19", "label": "PROVISION", "start_char": 11568, "end_char": 11578, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 13", "label": "PROVISION", "start_char": 11639, "end_char": 11649, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19(1)", "label": "PROVISION", "start_char": 12163, "end_char": 12176, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 12245, "end_char": 12255, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Uttar Pradesh", "label": "GPE", "start_char": 12391, "end_char": 12404, "source": "ner", "metadata": {"in_sentence": "Learned Advocate-General of Uttar Pradesh appearing for the intervener drew our attention to section 318 of the U.P. Municipalities Act, 1916, and submitted that the petitioner haviJ:ig adequate remedy by way of appeal, this Court should not grant any writ in the nature of the prerogative writ of mandamus\n\nMuniripal Botmf\n\nKairana\n\nDas]."}}, {"text": "section 318", "label": "PROVISION", "start_char": 12456, "end_char": 12467, "source": "regex", "metadata": {"statute": null}}, {"text": "Municipalities Act, 1916", "label": "STATUTE", "start_char": 12480, "end_char": 12504, "source": "regex", "metadata": {}}, {"text": "article 32", "label": "PROVISION", "start_char": 12944, "end_char": 12954, "source": "regex", "metadata": {"linked_statute_text": "Municipalities Act, 1916", "statute": "Municipalities Act, 1916"}}, {"text": "section 318", "label": "PROVISION", "start_char": 13250, "end_char": 13261, "source": "regex", "metadata": {"linked_statute_text": "Municipalities Act, 1916", "statute": "Municipalities Act, 1916"}}, {"text": "Narmitlal", "label": "LAWYER", "start_char": 14107, "end_char": 14116, "source": "ner", "metadata": {"in_sentence": "Agent for the petitioner : Narmitlal."}}, {"text": "Tarachand Bri", "label": "LAWYER", "start_char": 14150, "end_char": 14163, "source": "ner", "metadata": {"in_sentence": "Agent for the opposite party : Tarachand Bri; mohanlal."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 14207, "end_char": 14218, "source": "ner", "metadata": {"in_sentence": "Agent for the Union of India : P. A. Mehta."}}]} {"document_id": "1950_1_573_593_EN", "year": 1950, "text": "s. c. R.\n\nSUPREME COURT REPORTS\n\nDR. BABU RAM SAKSENA\n\nti.\n\nTHE STATE r SttRI HARILAL KANIA c. J ., SAIYID F AZL Au,\n\nPATANJALI SASTRI, MEHR CHAND MAHAJAN,\n\nMuKHERJEA and DAs JJ.]\n\nConstitutioll of India-Merger of. States-Effect-Treaty of Extradition between British Government and Indian State-Whether subsists after merger-Extradition Act 1903, ss. 7, IS-Provision i11 Act for extradition for additional offences-Whether \"derogates\" from Treaty-F.xtradition warrant for additional offences-Legality.\n\nIn 1869 the British Government and Qie State of Tonk entered into treaty which provided for the extradition of offenders in respect of certain offe11ces specified therein called \"heinous offences,\" which did not include the offences of chcati ng and extortion. In 1903 the Indian Extradition Act was passed which provided for extradition in respect of cheating and extortion also, but s. 18 of the Act provided that nothing contained in the Act \"shall derogate from the provisions of any treaty for the extradition of offenders.\" Under the Independence of India Act, 1947, the suzerainty of His Majesty over the Indian States lapsed ana with it all reaties and agreements in force; but under a \"standstill agreement,\" between the Indian Dominion and the States (including Tonk) all agreements between His Majesty and the States were continued, including agreements in respect of extradition. Tonk acceded to the Dominion of lridia in 1947 and became a member State of the United State of Rajasthan.\n\nThe appellant was a member of the Uttar Pradesh Civil Service and his services were lent to the State of Tonk in\n\n1948. After he had reverted to the Uttar Pradesh he was charged with the offences of cheating and extortion alleged to have been committed while he was in Tonk and was arrested under an extradition warrant issued under s. 7 of the Extradition Act,\n\n1903. He applied under ss. 491 and 561-A of the Code of Criminal Procedure for his release, contending that in view of the provisions of s. 18 of the Extradition Act and the Trety of Extradition of 1869, his arrest was illegal :\n\n Held per KANIA C. J. and PATANJALI SAsTRI J. (FAzL ALI J. concurring).-Even assuming that the Extradition Treaty of 1869 subsisted after the merger of the Tonk State, by providing for extradition for additional offences the Extradition Act of 1903 did not derogate . from the provisions of the Treaty of 1869 or the rights of Indian citizens thereunder, and the arrest and surrender of the appellant under s. 7 of the Act was not, therefore, rendered unlawful by anything contained in the said Treaty.\n\nltlig 5.\n\nDr. Babu Ram\n\nSalama\n\nThe Siok.\n\nPatdnjali\n\nSastri].\n\nPer MuKHERJEA J.\n\n(FAZL\n\nAL1, ivfAHAJAN anc demanded or ordered.\n\nDr. Babu Ram\n\nSahtna\n\nThe Stott.\n\nPatwifoli Sastri].\n\nDr. Babu Ram\n\nSaksnld\n\nT/,. Statt.\n\nPatalljllli Sanri ].\n\nThe Attorney-General appearing for the Government advanced three lines of argument in answer to that contention.\n\nIn the first place, the standstill agreement entered into with the various Indian States were purely temporary arrangements designed to maintain the status quo ante m respect of certain administrative matters of common concern pending the accession of those States to the Dominion of India, and they were superseded by the Instruments of Accession executed by the Rulers of those States. Tonk having acceded to the Dominion on the 16th August, 1947, the standstill agreement relied on by the appellant must be taken to have lapsed as from that date.\n\nSecondly, the treaty was no longer subsisting and its execution became impossible, as the Tonk State ceased to exist politically and such wvereignty as it possessed was extinguished, when it covenanted with certain other States, with the concurrence of the Indian Government ·\"to unite and integrate their territories in one State, with a common executive, legislature and judiciary, by the name of the United State of Rajasthan,\" the last of such covenants, which superseded the earlier . ones, having been entered into on the 30th March, 1949. ' Lastly, even assuming that the treaty was still m operation as a binding executory contract, its prov1s10ns were in no way derogated from by the application of section 7 of the Act to the present case, and the extradition warrant issued under that section and the arrest made in pursuance thereof were legal and valid and cou Id not be called in question under section 491 of the Criminal Procedure Code.\n\nAs we are clearly of opm10n that the appellant's contention must fail on this last ground, we consider it unnecessary to pronounce on the other points raised by the Attorney- .\n\nGeneral especially as the issues involved are not purely legal but partake also of a political character, and we have not had the views of the Governments concerned on those points.\n\nIt was not disputed before us that the present case would fall within section 7 of the Act, all the requirements thereof being satisfied, if only the applicability of\n\nthe section was not excluded, under section 18, by reason of the Extradition Treaty of 1869, assuming that it still subsists. The question accordingly arises whether extradition under section 7 for an offence which is not extraditable under the treaty is, in any sense, a derogation from the provisions of the treaty, which provides for the extradition of offenders for certain specified offences therein called \"heinous offences,\" committed in the respective territories of the high contracting parties. Under article 1 the Government of the Tonk State undertakes to extradite any person, whether a British or a foreign subject, who commits a l_leinous offence in British territory.\n\nA reciprocal obligation is cast by article 2 on the British Government to extradite a subject of Tonk committing such an offence within the limits of that State. Article 3 provides, inter alia, that any person other than a Tonk subject committing a heinous offence within the limits of the Tonk State and seeking asylum in British territory shall be apprehended and the case investigated by such Court as the British Government may direct. Article 4 prescribes the procedure to be adopted and the conditions to be fulfilled before extradition could be had, and :article 5 enumerates the offences which are \"to 1)e deemed as coming within the category of heinous offences\" which, however, do not include the offences charged against the appellant.\n\nThe argument on behalf of appellant was put thus: The maxim expressio unius est exclusio alterius is :applicable, as pointed out by McNair on The Law of Treaties, (1938-pp. 203, 204), to the interpretation of treaties. According to that rule the treaty in question should be read as allowing extradition only for the specified offences and for no others, that is to .say, as implying a prohibition of extradition by either State for any other offence than those enumerated in article\n\n5. Further, while the treaty entitled each of the high contracting parties to demand extradition on a reciprocal basis; an unilateral undertaking by the Indian Government to grant extradition for an offence for which it could not claim extradition under the treaty\n\nDr. Babu Ram\n\nSaksenu\n\nTk State.\n\nPatanjali Sastrij.\n\nDr. Babu Ram\n\nSaksena\n\nTk Stale.\n\nPat1171iali Sas1ri].\n\nviolates the principal of reciprocity which is the recognised basis of all international compacts for extradition.\n\nSuch an arrangement places the State of Tonk in a more advantageous position which was not contemplated by the framers of the treaty. And whre, as here, the person whose surrender is demanded is an Indian subject who is not liable to be , extradited under the treaty, his surrender under section 7 trenches upon the liberty of the subject. In so far, therefore, as that sec. tion authorises extradition of a person, especially when he is an Indian subject, for an offence which is not extraditable under the treaty, it derogates from the provisions of the treaty within the meaning of section 18, and its application to the present case is thereby excluded. The argument proceeds on a misconception and cannot be accepted.\n\nNo doubt the enumeration of \"heinous offences\" in article 5 of the treaty is exhaustive in the sense that the high contracting parties are not entitled, under the treaty, to claim extradition of criminals in respect of other offences.\n\nBut we cannot agree that such enumeration implies a prolzibition against either of those parties providing by its own municipal laws for the surrender of criminals for other offences not covered by the treaty. It is difficult to imagine why the contracting States should place such a fetter on their respective legislatures in advance not only in regard to their subjects but also in regard to alien offenders, for, if such prohibition is at all to be implied, it should cover both.\n\nAs pointed out in Wheaton's International Law, there is no universally recognised practice that there can be no extradition except under a treaty, for some countries grant extradition without a treaty : (Fourth Edition, sections 116 (a) to (d), pp. 186-189).\n\nNo doubt the constitutional doctrine 'in England is that the Crown makes treaties with foreign States for extradition of criminals but those treaties can only be carried into effect by Act of Parliament : (Ibid-section 116 (b ), p. 187). Accordingly, the extradition Acts arc made applicable by an. Order in Council in the case of each State which enters into an extradition treaty\n\nwith the Crown, and they are made applicable only so far as they can be applied constently with the terms and conditions contained in the treaty.\n\nUnder such a system where the high contracting parties expressly provide that their own subjects shall not be delivered up, as in the case of the treaty between England and Switzerland, the power to arrest and surrender does not exist: Regina v. Wilson(1 ). This it was observed by Cockburn C.J. in that case, was a \"serious\n\nblot\" on the British system of extradition, and the Royal Commission on Extradition, of which he was the chairman, recommended in their report that \"reciprocity in this matter should no longer be insisted upon whether the criminal be a British subject or not. If he has broken the laws of a foreign country his liability to be tried by them ought not to depend upon his nationality ...... The convenience of trying crimes in the country where they were committed is obvious. It is . very much easier to transport the criminal to the place of his offence than to carry all the witnesses and proofs to some other country where the trial is to be held :\" (Wheaton, section 120 (a), pp. 197, 198).\n\nEvidently, similar considerations led to the passing of the Act by the Indian Legislature providing for the surrender of criminals, including Indian subjects, for a wide variety of offences, with power to the Governor-General in Council to add to the list by notification in the Gazette generally for all States or specially for any one or more States. This statutory authority to surrender cannot of course enlarge the obligation of the other party where an extradition treaty has been entered into, and this is made clear by section 18. But it is equally clear that the Act does not derogate from any such treaty when it authorises the Indian Government to grant extradition for some additional offences, thereby enlarging, not curtailing, the power of the other party to claim surrender of criminals. Nor does the Act derogate, in the true sense of the term, from the position of an Indian subject under the treaty of 1869.\n\nThat treaty created no right in the subjects of either\n\n(11\n\n3 Q B. D. 42. 5--5 S. C. India ; N.D.)/58\n\n19So\n\nDr. Babu Rom\n\nSaksma\n\nThi State.\n\nPaJanjali • .\n\nSastri J.\n\nDr. Babu Ram\n\nSaksma\n\nThe Stau.\n\nPatanjali Sastri j.\n\nF., J Ali j.\n\nMalrf!ia; o j.\n\nMuk/rerfea].\n\nState any more than in fugitive aliens not to he extradited for other than \"heinous offences\".\n\nIt is noteworthy that even in Wilson's case, (ubi supra) where there was an exception in the treaty in favour of the subjects of the contracting States, the decision was based not on the ground that the treaty by itself conferred any right or privilege on English subjects not to be surrendered but on the ground that the Order in Council applying the Extradition Act, 1870, to Switzerland limited its operation, consistently with the terms of the treaty, to persons other than English subjects. It is, therefore, not correct to say that, by providing for extradition for additional offences, the Act derogates from the rights of Indian citizens under the treaty or from the provisions of the treaty.\n\nWe are accordingly of opinion that the arrest and surrender of the appellant under section 7 of the Act is not rendered unlawful by anything contained in the treaty of 1869, assuming that it still subsists.\n\nThe appeal fails and is dismissed.\n\nFAzL Au J.-I have had the advantage of reading the judgments prepared by my brothers, Sastri and Mukherjea, who have given different reasons for arriving at the same conclusion. As I am inclined to agree with the line of reasoning in both the judgments, I concur in the order that this appeal should be dismissed.\n\nMAHAJAN J.-I agree with the judgment going to be delivered by my brother Mukherjea. For the reasons given therein this appeal should be dismissed.\n\nMuKHERJEA J.-This appeal, which has come up before us on special leave granted by this Court, is directed against a judgment of Harish Chandra J. of the Allahabad High Court dated 11th of November, 1949, by which the learned Judge dismissed an application of the appellant under sections 491 and 561-A of the Criminal Procedure Code.\n\nThe facts which are material for purposes of this appeal are not in controversy and may be shortly stated as follows: The appellant Dr.\n\nBabu Ram\n\nSaksena, who is a resident of the United Provinces, was a member of the Executive Civil Service in that province, and during his official career, extending over 30 years, held various important posts, both in and outside that province. In January, 1948, he was appointed Administrator of the Tonk State, where a\n\ndisp.ute was going on at that time regarding succession to the rulership of the State between -two rival claimants. On 11th of February, 1948, the dispute was settled and Ismail Ali Khan was recognised as the Nawab or the Ruling Prince of the State and appellant was then appointed Dewan and Vice-President of the State Council, of which the Nawab was the President. In April, 1948, the Tonk State, together with several other States in Rajputana, integrated and formed together the United State of Rajasthan and the appellant thereupon became the Chief Executive Officer of the Rajasthan Government.\n\nTowards the end of July, 1948, he got a'nother special post under the Rajasthan Governtllent, but soon afterwards, he took leave and proceeded to Naini Tai, where he has been residing since then. On 23rd May, 1949, he was arrested at Naini Tai on the strength of a warrant issued under section 7 of the Indian Extradition Act,\n\n1903, by Shri V. K. B. Pillai, Regional Commissioner and Political Agent of the United State of Rajasthan.\n\nThe warrant, which is dated the 8th of May, 1949, was addressed to the District Magistrate of Naini Tai and directed to the arrest of Dr. Saksena and his removal to Rajasthan, to be delivered to the District Magistrate of Tonk for enquiry into certain offences :igainst the laws of that State which he was alleged to have committed. After his arrest, the appellant was released on bail in terms of the warrant itself and was directed to be present before the District Magistrate of Tonk on the 7th of June, 1949.\n\nThe allegations against the appellant in substance are, that while he was the Dewan of the Tonk State and Vice-President of the State Council, the Nawab, being in urgent need of money to meet his personal demands, requested Dr. SakSena to help him in obtaining for his own use\n\nDr. Babu Ram\n\nS.7kstna\n\nThe Stair.\n\nMukhtrjea ].\n\nDr. Babu Ram\n\nsots ... v.\n\nTM Slat<.\n\nMuklrerjea ].\n\na sum of Rs. 14 lakhs from the State Treasury.\n\nDr. Saksena promised his assistance on condition that the Nawab would give him a sum of Rs. 3 lakhs out of this amount as his share. By dint of his efforts, the appellant succeeded in inducing the State Ministry to pay the full amount of Rs. 14 lakhs to the Nawab in different instalments.\n\nThe first instalment, amounting to over Rs. 2} lakhs was paid on 31st March, 1948, and a further sum of Rs. 5 lakhs was paid on 21st of April following. On that date, it is said, the Nawab paid to Dr. Saksena a sum of Rs. 1,50,000 which was only half of the promised amount. A few days later, Dr. Saksena pressed for payment of the balance and held out threats to the Nawab that in case the money was not paid, the latter would find himself in serious difficulties as his position as a Ruling Prince of the State was not at all secure and there were grave charges against him. As a result of these threats and misrepresentations, the Nawab was induced .to pay .to the appellant the balance of Rs. 1,50,000 m two mstalments. The matter became known to the Regional Commissioner some time in November 1948 and he called Dr. Saksena for an interview and succeeded in getting back from him the entire sum of Rs. 3 lakhs which the Nawab had paid. On the basis of these facts, Dr. Saksena has been accused of having committed offences under sections 383 and 420 of the Indian Penal Code.\n\nOn 3rd June, 1949, Dr. Saksena filed an application in the High Court of Allahabad under sections 491 and 561-A of the Criminal Procedure Code, complaining of illegal and unauthorised detention under the warrant of the Regional Commissioner of Rajputana dated the 8th of May, 1949. The legality of the warrant and of arrest thereunder was attacked on a number of grounds.\n\nIt was contended, first of all, that the applicant was falsely implicated by the Nawab on account of enmity which grew up between them for various reasons and the allegations made were totally false. It was next said that the District Magistrate of Naini Tai could not take cognizance of the matter without the previous\n\nsanction of the U. P. Government under section 197 'of the Criminal Procedure Code and that the sanction of the Rajpramukh of the United State of Rajasthan was also necessary before any proceeding could be initiated.\n\nThe third and the main contention was that the alleged offences being said to have been committed in the State of Tonk, the case would be governed by the provisions of the Extradition Treaty entered into between the British Government and the Tonk State on 28th of January, 1869, and as neither \"extortion\" nor \"cheating\" was mentioned in the list of offences for which extradition was permissible under that Treaty, the warrant .of arrest issued under sectio~ 7 of the Extradition Act was wholly illegal and unauthorised.\n\nIt is admitted that these offences are specified in the Schedule to the Inclan Extradition Act of 1903, but it was said that section 18 of the Extradition Act expressly made the Act inapplicable when its provisions \"derogated\" from those of a Treaty. Lastly, it was urged that the extradition warrant was a mala fide step taken by the Nawab of Tonk with the help of his friend the Regional Commissioner of Rajasthan for ulterior purposes and that it constituted a fraud upon the Statute and an abuse of the processes of law.\n\nThe application was head by Harish Chandra, J. sitting singly, and by a judgment dated 11th of November, 1949, which fully and elaborately discussed the different points raised in the case, the learned Judge rejected the application of the petitioner.\n\nNo certificate was given by the High Court u_nder section 205(1) of the Government of India Act, 1935, and the present appeal has been, brought to this Court on the strength of special leave granted by it.\n\nSir Alladi Krishnaswami Aiyar, who appeared in support of the appeal, has very properly not pressd before us all the points that were canvassed on behalf of his client in the Court below. His contention, in substance, is that the rights of extradition in the present case should be regulated exclusively by the provisions of the Extradition Treaty that was entered into\n\nbetween the 1'onk State and the British Government\n\nDt. Babu Ram\n\nSoa\n\nTire State\n\nMulr.her:ita},\n\n-Or. Babu Ram Sahma\n\nThe Stau Muk/ie, j.a J.\n\non 28th of January, 1869, and was subsequently modified by a supplementary Treaty in the year 1887.\n\nThis Treaty, it is argued, has not been abrogated or rendered ineffective in any way by reason of the merger of the Tonk State in the United State of Rajasthan, and the decision of the High \"Court on this point is erroneous.\n\nAccording to the provisions of this Treaty, no extradition is permissible in respect to offences of \"extortion\" and \"cheating\" with which the appellant is charged and the warrant of arrest issued by the Political Agent is consequently illegal and ultra vires. It is conceded by Sir Alladi that if section 7 of the Indian Extradition Act, 1903, is held to be applicable to the facts of the present case, the warrant of arrest issued bv the Political Agent of Rajasthan could not be assaifed as invalid or inoperative; but his contention is that section 18 of the Extradition Act makes an express reservation in cases where Treaty rights exist and to the extent that the provisions of Chapter III of the Extradition Act derogate from those of any Treaty relating to extradition of offenders, the Treaty is entitled to prevail.\n\nTo appreciate the merits of this contention, it may be convenient to refer at this stage to a few sections of the Indian Extradition Act of 1903 as well as to the material provisions of the Extradition Treaty between the Toni( State and the British Government which have a bearing upon the present question.\n\nChapter III of the Indian Extradition Act deals with surrender of fugitive criminals in case of States other than foreign States and section 7, with which this chapter opens, provides as follows :\n\n\" (I) Where an extradition offence has been committed or is supposed to have been committed by a person, not being a European British subject, in the territories of any State not being a foreign State, and such person escapes into or is in British India, and the Political Agent in or for such State issues a warrant, addressed to the District Magistrate of any district in which such person is believed to be, (or if such person is believed to be in any Presidency town\n\nto the Chief J>residency Magistrate of such town), for his arrest and delivery at a place and to a person for authority indicated in the W'iffitllt such Magistrate shall act in pursuance of such warrant and may give directions accordingly.\"\n\n• • • •\n\nThe expression \"extradition offence\" has be.::n defined in section 2(b) and means \"any such offence as is described in the First Scheme to the Act.\" The First Schedule gives a catalogue of offences described with reference co specific sections of the Indian Penal Code and it includes offences punishable under sections 383 and 420 of the Indian Penal Code prima facie, it seems therefore that all the conditions laid down in section 7 of the Extradition Act are fulfilled in the present case. The warrant has been issued by the Political Agent of a State which is not a \"foreign State\" as defined by the Act and the offences with which the appellant is charged are \"extradition offences\" as specified in Schedule I. Sir Alladi's contention, as stated above, is that section 7, which is in Chapter III of the Extradition Act, is controlled by section 18 which lays down that \"nothing in this chapter shall derogate from the provisions of any treaty for the extradition of offenders, and the procedure provided by any such treaty shall be followed in any case to which it applies, and the provisions of this Act shall be modified accordingly.\"\n\nTurning now to the Extradition Treaty between the Tonk State and the British Government, it will be seen that the First Article of the Treaty provides for extradition, where a British subject or a foreign subject commits a \"heinous\" offence in British territory ant capable of being given effect to in the present day in view of the merger of the Tonk State in the United State of Rajasthan.\n\nAs no treaty rights exist, section 18 of the Indian Extradition Act has no application and sction 7 of the Act has been complied with, there is no ground upon which we can interfere.\n\nIn view of my decision on the first point, the second point does not require determination and I refrain from expressing any opinion upon it.\n\nIn the result, the appeal fails and is dismissed.\n\nOAS J.-1 substantially agree with the reasonings given in the judgment just delivered by my learned brother Mukherjea and concur in dismissing this application.\n\nAppeal dismissed.\n\nAgent for the appellant: Rajinder Narain.\n\nAgent for the respndent : P. A. Mehta.\n\n(') (1933) A. C. 289.\n\nDr. Babu Ram\n\nSaluma\n\nTill Stak.\n\nDM].", "total_entities": 220, "entities": [{"text": "BABU RAM SAKSENA", "label": "PETITIONER", "start_char": 37, "end_char": 53, "source": "metadata", "metadata": {"canonical_name": "Babu Ram\n\nSaksena", "offset_not_found": false}}, {"text": "THE STATE r SttRI HARILAL KANIA", "label": "JUDGE", "start_char": 60, "end_char": 91, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 118, "end_char": 134, "source": "metadata", "metadata": {"canonical_name": "Patanjali Sastrij", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 136, "end_char": 154, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN*", "offset_not_found": false}}, {"text": "MuKHERJEA", "label": "JUDGE", "start_char": 157, "end_char": 166, "source": "metadata", "metadata": {"canonical_name": "MuKHERJEA", "offset_not_found": false}}, {"text": "DAs JJ.", "label": "JUDGE", "start_char": 171, "end_char": 178, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS*", "offset_not_found": false}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 325, "end_char": 340, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "ss. 7", "label": "PROVISION", "start_char": 347, "end_char": 352, "source": "regex", "metadata": {"linked_statute_text": "States-Effect-Treaty of Extradition between British Government and Indian State-Whether subsists after merger-Extradition Act 1903", "statute": "States-Effect-Treaty of Extradition between British Government and Indian State-Whether subsists after merger-Extradition Act 1903"}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 783, "end_char": 798, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "s. 18", "label": "PROVISION", "start_char": 888, "end_char": 893, "source": "regex", "metadata": {"linked_statute_text": "States-Effect-Treaty of Extradition between British Government and Indian State-Whether subsists after merger-Extradition Act 1903", "statute": "States-Effect-Treaty of Extradition between British Government and Indian State-Whether subsists after merger-Extradition Act 1903"}}, {"text": "Independence of India Act, 1947", "label": "STATUTE", "start_char": 1043, "end_char": 1074, "source": "regex", "metadata": {}}, {"text": "and the States", "label": "RESPONDENT", "start_char": 1249, "end_char": 1263, "source": "metadata", "metadata": {"canonical_name": "THE STATE", "offset_not_found": false}}, {"text": "Tonk", "label": "OTHER_PERSON", "start_char": 1275, "end_char": 1279, "source": "ner", "metadata": {"in_sentence": "Under the Independence of India Act, 1947, the suzerainty of His Majesty over the Indian States lapsed ana with it all reaties and agreements in force; but under a \"standstill agreement,\" between the Indian Dominion and the States (including Tonk) all agreements between His Majesty and the States were continued, including agreements in respect of extradition."}}, {"text": "Dominion of lridia", "label": "ORG", "start_char": 1415, "end_char": 1433, "source": "ner", "metadata": {"in_sentence": "Tonk acceded to the Dominion of lridia in 1947 and became a member State of the United State of Rajasthan."}}, {"text": "United State of Rajasthan", "label": "GPE", "start_char": 1475, "end_char": 1500, "source": "ner", "metadata": {"in_sentence": "Tonk acceded to the Dominion of lridia in 1947 and became a member State of the United State of Rajasthan."}}, {"text": "Uttar Pradesh Civil Service", "label": "ORG", "start_char": 1537, "end_char": 1564, "source": "ner", "metadata": {"in_sentence": "The appellant was a member of the Uttar Pradesh Civil Service and his services were lent to the State of Tonk in\n\n1948."}}, {"text": "State of Tonk", "label": "ORG", "start_char": 1599, "end_char": 1612, "source": "ner", "metadata": {"in_sentence": "The appellant was a member of the Uttar Pradesh Civil Service and his services were lent to the State of Tonk in\n\n1948."}}, {"text": "Uttar Pradesh", "label": "GPE", "start_char": 1652, "end_char": 1665, "source": "ner", "metadata": {"in_sentence": "After he had reverted to the Uttar Pradesh he was charged with the offences of cheating and extortion alleged to have been committed while he was in Tonk and was arrested under an extradition warrant issued under s. 7 of the Extradition Act,\n\n1903."}}, {"text": "Tonk", "label": "GPE", "start_char": 1772, "end_char": 1776, "source": "ner", "metadata": {"in_sentence": "After he had reverted to the Uttar Pradesh he was charged with the offences of cheating and extortion alleged to have been committed while he was in Tonk and was arrested under an extradition warrant issued under s. 7 of the Extradition Act,\n\n1903."}}, {"text": "s. 7", "label": "PROVISION", "start_char": 1836, "end_char": 1840, "source": "regex", "metadata": {"linked_statute_text": "Under the Independence of India Act, 1947", "statute": "Under the Independence of India Act, 1947"}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 1848, "end_char": 1863, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "ss. 491 and 561", "label": "PROVISION", "start_char": 1889, "end_char": 1904, "source": "regex", "metadata": {"linked_statute_text": "the Extradition Act,\n\n1903", "statute": "the Extradition Act,\n\n1903"}}, {"text": "Code of Criminal Procedure", "label": "STATUTE", "start_char": 1914, "end_char": 1940, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "s. 18", "label": "PROVISION", "start_char": 2003, "end_char": 2008, "source": "regex", "metadata": {"linked_statute_text": "the Extradition Act,\n\n1903", "statute": "the Extradition Act,\n\n1903"}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 2016, "end_char": 2031, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "KANIA", "label": "JUDGE", "start_char": 2106, "end_char": 2111, "source": "ner", "metadata": {"in_sentence": "491 and 561-A of the Code of Criminal Procedure for his release, contending that in view of the provisions of s. 18 of the Extradition Act and the Trety of Extradition of 1869, his arrest was illegal :\n\n Held per KANIA C. J. and PATANJALI SAsTRI J. (FAzL ALI J. concurring).-Even assuming that the Extradition Treaty of 1869 subsisted after the merger of the Tonk State, by providing for extradition for additional offences the Extradition Act of 1903 did not derogate .", "canonical_name": "Kania C.J."}}, {"text": "PATANJALI SAsTRI", "label": "JUDGE", "start_char": 2122, "end_char": 2138, "source": "ner", "metadata": {"in_sentence": "491 and 561-A of the Code of Criminal Procedure for his release, contending that in view of the provisions of s. 18 of the Extradition Act and the Trety of Extradition of 1869, his arrest was illegal :\n\n Held per KANIA C. J. and PATANJALI SAsTRI J. (FAzL ALI J. concurring).-Even assuming that the Extradition Treaty of 1869 subsisted after the merger of the Tonk State, by providing for extradition for additional offences the Extradition Act of 1903 did not derogate .", "canonical_name": "Patanjali Sastrij"}}, {"text": "FAzL ALI", "label": "JUDGE", "start_char": 2143, "end_char": 2151, "source": "ner", "metadata": {"in_sentence": "491 and 561-A of the Code of Criminal Procedure for his release, contending that in view of the provisions of s. 18 of the Extradition Act and the Trety of Extradition of 1869, his arrest was illegal :\n\n Held per KANIA C. J. and PATANJALI SAsTRI J. (FAzL ALI J. concurring).-Even assuming that the Extradition Treaty of 1869 subsisted after the merger of the Tonk State, by providing for extradition for additional offences the Extradition Act of 1903 did not derogate ."}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 2321, "end_char": 2336, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "s. 7", "label": "PROVISION", "start_char": 2503, "end_char": 2507, "source": "regex", "metadata": {"linked_statute_text": "the Extradition Act,\n\n1903", "statute": "the Extradition Act,\n\n1903"}}, {"text": "Babu Ram", "label": "PETITIONER", "start_char": 2614, "end_char": 2622, "source": "ner", "metadata": {"in_sentence": "Dr. Babu Ram\n\nSalama\n\nThe Siok.", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "ivfAHAJAN", "label": "JUDGE", "start_char": 2694, "end_char": 2703, "source": "ner", "metadata": {"in_sentence": "Per MuKHERJEA J.\n\n(FAZL\n\nAL1, ivfAHAJAN anc demanded or ordered."}}, {"text": "Tonk State", "label": "ORG", "start_char": 6354, "end_char": 6364, "source": "ner", "metadata": {"in_sentence": "Learned counsel, relying on section 18 of the Act which provides that nothing in Chapter III (which contains section 7) shall \"derogate from the provisions of any treaty for the extradition of offenders,\" submitted that the treaty entered into between the British Government and the Tonk State on the 28th January, 1869, although declared by section 7 of the Indian Independence Act, 1947, to have lapsed as from the 15th August, 1947, was continued in force by the \"Standstill Agreement\" entered into on the 8th August, 1947, that that treaty exclusively governed all matters relating to extradition between the two States, and that, inasmuch as it did not cover the offences now charged against the appellant, no extradition of the appellant could \\>c demanded or ordered."}}, {"text": "28th January, 1869", "label": "DATE", "start_char": 6372, "end_char": 6390, "source": "ner", "metadata": {"in_sentence": "Learned counsel, relying on section 18 of the Act which provides that nothing in Chapter III (which contains section 7) shall \"derogate from the provisions of any treaty for the extradition of offenders,\" submitted that the treaty entered into between the British Government and the Tonk State on the 28th January, 1869, although declared by section 7 of the Indian Independence Act, 1947, to have lapsed as from the 15th August, 1947, was continued in force by the \"Standstill Agreement\" entered into on the 8th August, 1947, that that treaty exclusively governed all matters relating to extradition between the two States, and that, inasmuch as it did not cover the offences now charged against the appellant, no extradition of the appellant could \\>c demanded or ordered."}}, {"text": "section 7", "label": "PROVISION", "start_char": 6413, "end_char": 6422, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Independence Act, 1947", "label": "STATUTE", "start_char": 6430, "end_char": 6459, "source": "regex", "metadata": {}}, {"text": "15th August, 1947", "label": "DATE", "start_char": 6488, "end_char": 6505, "source": "ner", "metadata": {"in_sentence": "Learned counsel, relying on section 18 of the Act which provides that nothing in Chapter III (which contains section 7) shall \"derogate from the provisions of any treaty for the extradition of offenders,\" submitted that the treaty entered into between the British Government and the Tonk State on the 28th January, 1869, although declared by section 7 of the Indian Independence Act, 1947, to have lapsed as from the 15th August, 1947, was continued in force by the \"Standstill Agreement\" entered into on the 8th August, 1947, that that treaty exclusively governed all matters relating to extradition between the two States, and that, inasmuch as it did not cover the offences now charged against the appellant, no extradition of the appellant could \\>c demanded or ordered."}}, {"text": "8th August, 1947", "label": "DATE", "start_char": 6580, "end_char": 6596, "source": "ner", "metadata": {"in_sentence": "Learned counsel, relying on section 18 of the Act which provides that nothing in Chapter III (which contains section 7) shall \"derogate from the provisions of any treaty for the extradition of offenders,\" submitted that the treaty entered into between the British Government and the Tonk State on the 28th January, 1869, although declared by section 7 of the Indian Independence Act, 1947, to have lapsed as from the 15th August, 1947, was continued in force by the \"Standstill Agreement\" entered into on the 8th August, 1947, that that treaty exclusively governed all matters relating to extradition between the two States, and that, inasmuch as it did not cover the offences now charged against the appellant, no extradition of the appellant could \\>c demanded or ordered."}}, {"text": "Babu Ram", "label": "LAWYER", "start_char": 6905, "end_char": 6913, "source": "ner", "metadata": {"in_sentence": "Dr. Babu Ram\n\nSaksnld\n\nT/,.", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "16th August, 1947", "label": "DATE", "start_char": 7504, "end_char": 7521, "source": "ner", "metadata": {"in_sentence": "Tonk having acceded to the Dominion on the 16th August, 1947, the standstill agreement relied on by the appellant must be taken to have lapsed as from that date."}}, {"text": "Indian Government", "label": "ORG", "start_char": 7881, "end_char": 7898, "source": "ner", "metadata": {"in_sentence": "Secondly, the treaty was no longer subsisting and its execution became impossible, as the Tonk State ceased to exist politically and such wvereignty as it possessed was extinguished, when it covenanted with certain other States, with the concurrence of the Indian Government ·\"to unite and integrate their territories in one State, with a common executive, legislature and judiciary, by the name of the United State of Rajasthan,\" the last of such covenants, which superseded the earlier ."}}, {"text": "30th March, 1949", "label": "DATE", "start_char": 8152, "end_char": 8168, "source": "ner", "metadata": {"in_sentence": "ones, having been entered into on the 30th March, 1949. '"}}, {"text": "section 7", "label": "PROVISION", "start_char": 8332, "end_char": 8341, "source": "regex", "metadata": {"statute": null}}, {"text": "section 491", "label": "PROVISION", "start_char": 8533, "end_char": 8544, "source": "regex", "metadata": {"statute": null}}, {"text": "section 7", "label": "PROVISION", "start_char": 9009, "end_char": 9018, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 9143, "end_char": 9153, "source": "regex", "metadata": {"statute": null}}, {"text": "section 7", "label": "PROVISION", "start_char": 9291, "end_char": 9300, "source": "regex", "metadata": {"statute": null}}, {"text": "article 1", "label": "PROVISION", "start_char": 9618, "end_char": 9627, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of the Tonk State", "label": "ORG", "start_char": 9632, "end_char": 9660, "source": "ner", "metadata": {"in_sentence": "Under article 1 the Government of the Tonk State undertakes to extradite any person, whether a British or a foreign subject, who commits a l_leinous offence in British territory."}}, {"text": "British", "label": "GPE", "start_char": 9772, "end_char": 9779, "source": "ner", "metadata": {"in_sentence": "Under article 1 the Government of the Tonk State undertakes to extradite any person, whether a British or a foreign subject, who commits a l_leinous offence in British territory."}}, {"text": "article 2", "label": "PROVISION", "start_char": 9827, "end_char": 9836, "source": "regex", "metadata": {"statute": null}}, {"text": "Article 3", "label": "PROVISION", "start_char": 9954, "end_char": 9963, "source": "regex", "metadata": {"statute": null}}, {"text": "Article 4", "label": "PROVISION", "start_char": 10232, "end_char": 10241, "source": "regex", "metadata": {"statute": null}}, {"text": "article 5", "label": "PROVISION", "start_char": 10354, "end_char": 10363, "source": "regex", "metadata": {"statute": null}}, {"text": "McNair", "label": "OTHER_PERSON", "start_char": 10672, "end_char": 10678, "source": "ner", "metadata": {"in_sentence": "The argument on behalf of appellant was put thus: The maxim expressio unius est exclusio alterius is :applicable, as pointed out by McNair on The Law of Treaties, (1938-pp."}}, {"text": "article\n\n5", "label": "PROVISION", "start_char": 11016, "end_char": 11026, "source": "regex", "metadata": {"statute": null}}, {"text": "Patanjali Sastrij", "label": "LAWYER", "start_char": 11325, "end_char": 11342, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastrij.", "canonical_name": "Patanjali Sastrij"}}, {"text": "section 7", "label": "PROVISION", "start_char": 11805, "end_char": 11814, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 12102, "end_char": 12112, "source": "regex", "metadata": {"statute": null}}, {"text": "article 5", "label": "PROVISION", "start_char": 12291, "end_char": 12300, "source": "regex", "metadata": {"statute": null}}, {"text": "Wheaton", "label": "OTHER_PERSON", "start_char": 12979, "end_char": 12986, "source": "ner", "metadata": {"in_sentence": "As pointed out in Wheaton's International Law, there is no universally recognised practice that there can be no extradition except under a treaty, for some countries grant extradition without a treaty : (Fourth Edition, sections 116 (a) to (d), pp."}}, {"text": "sections 116", "label": "PROVISION", "start_char": 13181, "end_char": 13193, "source": "regex", "metadata": {"statute": null}}, {"text": "section 116", "label": "PROVISION", "start_char": 13432, "end_char": 13443, "source": "regex", "metadata": {"linked_statute_text": "England is that the Crown makes treaties with foreign States for extradition of criminals but those treaties can only be carried into effect by Act", "statute": "England is that the Crown makes treaties with foreign States for extradition of criminals but those treaties can only be carried into effect by Act"}}, {"text": "Switzerland", "label": "GPE", "start_char": 13924, "end_char": 13935, "source": "ner", "metadata": {"in_sentence": "Under such a system where the high contracting parties expressly provide that their own subjects shall not be delivered up, as in the case of the treaty between England and Switzerland, the power to arrest and surrender does not exist: Regina v. Wilson(1 )."}}, {"text": "Cockburn", "label": "JUDGE", "start_char": 14033, "end_char": 14041, "source": "ner", "metadata": {"in_sentence": "This it was observed by Cockburn C.J. in that case, was a \"serious\n\nblot\" on the British system of extradition, and the Royal Commission on Extradition, of which he was the chairman, recommended in their report that \"reciprocity in this matter should no longer be insisted upon whether the criminal be a British subject or not."}}, {"text": "section 120", "label": "PROVISION", "start_char": 14739, "end_char": 14750, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 15299, "end_char": 15309, "source": "regex", "metadata": {"statute": null}}, {"text": "Babu Rom", "label": "JUDGE", "start_char": 15814, "end_char": 15822, "source": "ner", "metadata": {"in_sentence": "5--5 S. C. India ; N.D.)/58\n\n19So\n\nDr. Babu Rom\n\nSaksma\n\nThi State.", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "Sastri", "label": "JUDGE", "start_char": 15859, "end_char": 15865, "source": "ner", "metadata": {"in_sentence": "Sastri J.\n\nDr. Babu Ram\n\nSaksma\n\nThe Stau."}}, {"text": "Babu Ram\n\nSaksma", "label": "JUDGE", "start_char": 15874, "end_char": 15890, "source": "ner", "metadata": {"in_sentence": "Sastri J.\n\nDr. Babu Ram\n\nSaksma\n\nThe Stau.", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 16416, "end_char": 16431, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 7", "label": "PROVISION", "start_char": 16849, "end_char": 16858, "source": "regex", "metadata": {"linked_statute_text": "English subjects not to be surrendered but on the ground that the Order in Council applying the Extradition Act, 1870", "statute": "English subjects not to be surrendered but on the ground that the Order in Council applying the Extradition Act, 1870"}}, {"text": "FAzL Au J.-I", "label": "JUDGE", "start_char": 17010, "end_char": 17022, "source": "ner", "metadata": {"in_sentence": "FAzL Au J.-I have had the advantage of reading the judgments prepared by my brothers, Sastri and Mukherjea, who have given different reasons for arriving at the same conclusion."}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 17107, "end_char": 17116, "source": "ner", "metadata": {"in_sentence": "FAzL Au J.-I have had the advantage of reading the judgments prepared by my brothers, Sastri and Mukherjea, who have given different reasons for arriving at the same conclusion.", "canonical_name": "MuKHERJEA"}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 17325, "end_char": 17332, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-I agree with the judgment going to be delivered by my brother Mukherjea."}}, {"text": "11th of November, 1949", "label": "DATE", "start_char": 17653, "end_char": 17675, "source": "ner", "metadata": {"in_sentence": "MuKHERJEA J.-This appeal, which has come up before us on special leave granted by this Court, is directed against a judgment of Harish Chandra J. of the Allahabad High Court dated 11th of November, 1949, by which the learned Judge dismissed an application of the appellant under sections 491 and 561-A of the Criminal Procedure Code."}}, {"text": "sections 491 and 561", "label": "PROVISION", "start_char": 17752, "end_char": 17772, "source": "regex", "metadata": {"statute": null}}, {"text": "Babu Ram\n\nSaksena", "label": "PETITIONER", "start_char": 17945, "end_char": 17962, "source": "ner", "metadata": {"in_sentence": "The facts which are material for purposes of this appeal are not in controversy and may be shortly stated as follows: The appellant Dr.\n\nBabu Ram\n\nSaksena, who is a resident of the United Provinces, was a member of the Executive Civil Service in that province, and during his official career, extending over 30 years, held various important posts, both in and outside that province.", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "11th of February, 1948", "label": "DATE", "start_char": 18387, "end_char": 18409, "source": "ner", "metadata": {"in_sentence": "On 11th of February, 1948, the dispute was settled and Ismail Ali Khan was recognised as the Nawab or the Ruling Prince of the State and appellant was then appointed Dewan and Vice-President of the State Council, of which the Nawab was the President."}}, {"text": "Ismail Ali Khan", "label": "OTHER_PERSON", "start_char": 18439, "end_char": 18454, "source": "ner", "metadata": {"in_sentence": "On 11th of February, 1948, the dispute was settled and Ismail Ali Khan was recognised as the Nawab or the Ruling Prince of the State and appellant was then appointed Dewan and Vice-President of the State Council, of which the Nawab was the President."}}, {"text": "Rajputana", "label": "GPE", "start_char": 18705, "end_char": 18714, "source": "ner", "metadata": {"in_sentence": "In April, 1948, the Tonk State, together with several other States in Rajputana, integrated and formed together the United State of Rajasthan and the appellant thereupon became the Chief Executive Officer of the Rajasthan Government."}}, {"text": "United State of Rajasthan", "label": "ORG", "start_char": 18751, "end_char": 18776, "source": "ner", "metadata": {"in_sentence": "In April, 1948, the Tonk State, together with several other States in Rajputana, integrated and formed together the United State of Rajasthan and the appellant thereupon became the Chief Executive Officer of the Rajasthan Government."}}, {"text": "Rajasthan Government", "label": "ORG", "start_char": 18847, "end_char": 18867, "source": "ner", "metadata": {"in_sentence": "In April, 1948, the Tonk State, together with several other States in Rajputana, integrated and formed together the United State of Rajasthan and the appellant thereupon became the Chief Executive Officer of the Rajasthan Government."}}, {"text": "Rajasthan Governtllent", "label": "ORG", "start_char": 18940, "end_char": 18962, "source": "ner", "metadata": {"in_sentence": "Towards the end of July, 1948, he got a'nother special post under the Rajasthan Governtllent, but soon afterwards, he took leave and proceeded to Naini Tai, where he has been residing since then."}}, {"text": "Naini Tai", "label": "GPE", "start_char": 19016, "end_char": 19025, "source": "ner", "metadata": {"in_sentence": "Towards the end of July, 1948, he got a'nother special post under the Rajasthan Governtllent, but soon afterwards, he took leave and proceeded to Naini Tai, where he has been residing since then."}}, {"text": "23rd May, 1949", "label": "DATE", "start_char": 19069, "end_char": 19083, "source": "ner", "metadata": {"in_sentence": "On 23rd May, 1949, he was arrested at Naini Tai on the strength of a warrant issued under section 7 of the Indian Extradition Act,\n\n1903, by Shri V. 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Setalvad t950 has drawn our attention to various political changes --,."}}, {"text": "15th of August, 1947", "label": "DATE", "start_char": 31931, "end_char": 31951, "source": "ner", "metadata": {"in_sentence": "The major political change with regard to _all Indian States which vitally affected their existing Treaties with the British Government occurred on th\" 15th of August, 1947, when India became an Independent Dominion."}}, {"text": "Section 7", "label": "PROVISION", "start_char": 31996, "end_char": 32005, "source": "regex", "metadata": {"statute": null}}, {"text": "section 18", "label": "PROVISION", "start_char": 32562, "end_char": 32572, "source": "regex", "metadata": {"statute": null}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 32587, "end_char": 32602, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 18", "label": "PROVISION", "start_char": 33661, "end_char": 33671, "source": "regex", "metadata": 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in any event not later than the first day of May, 1948, make over the administration of his State to the Raj Pramuh; and thereupon-\n\nDr. Bab11 Rarrr\n\nSakseno."}}, {"text": "Babu Ram\n\nSaksoia", "label": "LAWYER", "start_char": 37231, "end_char": 37248, "source": "ner", "metadata": {"in_sentence": "Dr. Babu Ram\n\nSaksoia\n\nMu.t,.,,", "canonical_name": "Babu Ram\n\nSaksena"}}, {"text": "Hanover", "label": "GPE", "start_char": 38710, "end_char": 38717, "source": "ner", "metadata": {"in_sentence": "Thus the forceable incorporation of Hanover into the Prussain Kingdom destroyed the previous treaties of Hanover."}}, {"text": "Texas", "label": "GPE", "start_char": 38806, "end_char": 38811, "source": "ner", "metadata": {"in_sentence": "The admission of Texas into the United States of America by joint resolution extinguished the."}}, {"text": "United States of America", "label": "GPE", "start_char": 38821, "end_char": 38845, "source": "ner", "metadata": {"in_sentence": "The admission of Texas into the United States of America by joint resolution extinguished the."}}, {"text": "Korea", "label": "GPE", "start_char": 38964, "end_char": 38969, "source": "ner", "metadata": {"in_sentence": "The position is the same when Korea merged into ."}}, {"text": "Japan", "label": "GPE", "start_char": 38984, "end_char": 38989, "source": "ner", "metadata": {"in_sentence": "Japan."}}, {"text": "Oppenheim", "label": "OTHER_PERSON", "start_char": 39005, "end_char": 39014, "source": "ner", "metadata": {"in_sentence": "According to Oppenheim, whose opinion has been relied upon by Sir Alladi, no succession of rights and duties ordinarily takes place in such cases, and as political and personal treaties presuppose the existence of a contracting State,\n\n(1) Vide Hyde on International Law, Vol."}}, {"text": "Vide Hyde", "label": "OTHER_PERSON", "start_char": 39232, "end_char": 39241, "source": "ner", "metadata": {"in_sentence": "According to Oppenheim, whose opinion has been relied upon by 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"ner", "metadata": {"in_sentence": "The question there was whether an Extradition Treaty between Prussia and the U nitcd States of America, wJ1ich was entered into in 1852, could be given effect to after the incorporation of Prussia into the German Empire."}}, {"text": "U nitcd States of America", "label": "GPE", "start_char": 43232, "end_char": 43257, "source": "ner", "metadata": {"in_sentence": "The question there was whether an Extradition Treaty between Prussia and the U nitcd States of America, wJ1ich was entered into in 1852, could be given effect to after the incorporation of Prussia into the German Empire."}}, {"text": "Fuller", "label": "JUDGE", "start_char": 43667, "end_char": 43673, "source": "ner", "metadata": {"in_sentence": "It was pointed out inter alia that the Constitution of the German Empire left sufficient independent power and sovereignty to the States composing the confederation to enable them to act upon these treaties and il was observed by Chief Justice Fuller, who delivered the opinion of the Court, that where sovereignty in respect\n\n(1) VUle Hyde on International Law, VoL III, p. 153.'1. (')"}}, {"text": "s. 270", "label": "PROVISION", "start_char": 43817, "end_char": 43823, "source": "regex", "metadata": {"statute": null}}, {"text": "Btitish Government", "label": "ORG", "start_char": 44709, "end_char": 44727, "source": "ner", "metadata": {"in_sentence": "My conclusion, therefore, is that the Extradition Treaty between the Tonk State and the Btitish Government in 1869 is nc,>t capable of being given effect to in the present day in view of the merger of the Tonk State in the United State of Rajasthan."}}, {"text": "section 18", "label": "PROVISION", "start_char": 44899, "end_char": 44909, "source": "regex", "metadata": {"statute": null}}, {"text": "Extradition Act", "label": "STATUTE", "start_char": 44924, "end_char": 44939, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Rajinder Narain", "label": "LAWYER", "start_char": 45456, "end_char": 45471, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: Rajinder Narain."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 45500, "end_char": 45511, "source": "ner", "metadata": {"in_sentence": "Agent for the respndent : P. A. Mehta."}}, {"text": "Babu Ram\n\nSaluma", "label": "PETITIONER", "start_char": 45541, "end_char": 45557, "source": "ner", "metadata": {"in_sentence": "Dr. Babu Ram\n\nSaluma\n\nTill Stak.", "canonical_name": "Babu Ram\n\nSaksena"}}]} {"document_id": "1950_1_594_605_EN", "year": 1950, "text": "May26.\n\nSUPREME COURT REPORTS\n\nROMESH THAPPAR\n\nI/.\n\nTHE STATE OF MADRAS [SHR1 HAR1LAL KANIA C. J., SA1Y1D FAZL Au,\n\nPATANJALI ~ASTRI, MEHR CHAND MAHAJAN, MuKHERJEA and DAs JJ.]\n\n[1950}\n\nConstitution of India, Art. 19, els. {I) (a) and (2), 32-Application under Art. 32-Preliminary ob1ection-Fundamental right of freedom of speech and expression-Law imposing restrictions for securing public order and maintenance of public safety-Validity-- Seuerability of Act-Madras Maintenance of Public Order Act tXXXIll of 1949), s. 9 ( 1-A)-Validity.\n\nHeld, by the Full Court (i) (overruling o preliminary objections) -TJnder the Constitution the Supreme Court is constituted the protector and guarantor of fundamental rights, and it cannot, con sistently with the responsibility so laid upon it, refuse to entertain applications seeking prota:tion against infringement of such right$,. although such applications are made to the Court in the first instance without resort to a High Court having concurrent juris-diction in the matter.\n\nUrguhar v. Brown (205 U. S. 179.) and Hooney v. Kolohan (294 U. S. 103) distinguished.\n\n(ii) Freedom of speech and expression includes freedom of propogation of ideas and that freedom is ensured by the freedom of circulation.\n\nEx parte /ackson (96 U. S. 727) and Lovell v. City of Griffin (303 U. S. 444) referred to.\n\nHeld per\n\nKANIA\n\nC. J.,\n\nPATANJAL.I SAsTRJ,\n\nMEHR CttAND\n\nMAHAJAN, MuKHERJEA and DAs IJ.-(FAzL Au J. dissenting):\n\n(i) Apart from libel, slander etc. unless a law restricting freedom of speech and expressiofi is directed solely against the undermining of the: st:curity of the State or the overthrow of it, such law cannot fall within the reservation under cl. (2) of the Art. 19 of the Constitution, although the restrictions \\vhich it seeks to impose may have been conceived generally in the interests of public order. Section 9 0-A) of the Madras Maintenance of Public Order Act, XXXlll of 1949, which authorises impositions of restrictions for the wider purpose of securing public safety or the maintenance of public order falls outside the scope of authorised restrictions under cl. (2) and is therefore void and unconstitutional; (ii) Where a la\\\\' purports to authorise the imposition of restrictions on a fundamental right in langauge wide enough to cover restrictions both within and without the limits of constitutionally permissible legislative actiOft. affecting such right, it is not possible to uphold it even so I far as it may be applied within the constitutional limits, as it is1 not severable. So long as the possibility of its being applied for purposes not sanctioned by the Constitution cannot be ruled o~\n\nit must be held to be wholly unconstitutional and void. Section 9 (1-A) is therefore wholly unconstitutional and void.\n\nPer FAZL Au J.-Rcstrictions which s. 9 (1-A) authorised arc within the provisions of cl. (2) of art. 19 of the Constitution and s. 9 (1-A) is not therefore uncoqstitutional or void. (1)\n\nBrij BhuJhan and Another v. The State (1950) S.C.R. 60) referred to. . .\n\nORIGINAL Ju&Is01c110N: Petition No. XVI of 1950.\n\nApplication under article 32 of the Constitution for a. writ of prohibition and certiorari.\n\nThe facts are set out in the judgment.\n\nC. R. Pattabhi Ra1nan, for the petitioner.\n\nK. Rajah Ayyar, Advocate-Gene; al of Madras, (Ganapathi Ayyar, with him) fQr the opposite party.\n\n1950. May 26. The Judgment of Kania C. J., Mehr Chand ~1ahajan, Mukherjea and Das JJ. Was delivered by Patanjali Sastri, J. Fazl Ali. J. delivered a separate judgment.\n\nPATANJALI SASTRI J.-The petitioner is the printer, publisher and editor of a recently started weekly journal in English called Cross. Roads printed and published in Bombay.\n\nThe Government of Madras, the respondents herein, in exercise of their powers under section 9(1-A) of the Madras Maintenance of Public Order Act, 1949 (hereinafter referred to as the impugned Act) purported to issue an order No. MS. 1333 dated 1st March, 1950, whereby they imposed a ban upon the entry and circulation of the journal in that State. The order was published in the Fort St.\n\nGeorge Gazette and the notification ran as follows :-\n\n\"In exercise of the powers conferred by section 9 (1-A) of the Madras Maintenance of Public Order, Act, 1949 (Madras Act XXlII of 1949) His Excellency the Governor of Madras, being satisfied that for the purpose of securring the public safety and the maintenance of puolic order, it is necessary so to do, hereby prohibits, with effect on and from the, date of publication of this order in the Fort St. George Gazette the entry into or the circulation, sale or distribution in the State of Madras or any part thereof of the newspaper entitled Cross\n\nRoads an English weekly published at Bombay.\"\n\nThe petitioner cl; iims that the said order contravenes the fundamental right of the petitioner to freedom of . (1) Sec the .headnote to Brij Bhus.%an v. The Stale of Delhi, p. 60~ Infra. 6-5 S. C. India 1N.Dl 58\n\nRamesh Thappar.\n\nThe Stat• a} Madras.\n\nPatanjali\n\nSast1iJ.\n\nR..., sh 1'happar\n\nT \"- Slau of\n\nMadras.\n\nPalanjali Sastri].\n\nspeech and expression conferred on him by article 19 ( 1) (a) of the Constitution and he challenges the validity of section 9 (1-A) of the impugned Act as being void undr article 13 ( 1) of the Constitution by reason of its being inconsistent with his fundamental right aforesaid.\n\nThe Advocate-General of Madras appearmg on behalf of the respondents raised a prelimmary objection, not indeed to the jurisdiction of this Court to entertain the application under article 32, but to the petitioner resorting to this Court directly for such relief in the first instance. He contended that, as a matter of orderly procedure, the petitioner should first resort to the High Court at Madras which under article 226 of the Constitution has concurrent jurisdiction to deal with the matter. He cited criminal revision petitions under section 435 ot the Criminal Procedure Code, applications for bail and applications for transfer under section 24 of the Civil Procedure Code as instances where, concurrent jurisdiction having been given in certain matters to the High Court and the Court of a lower grade, a rule of practice has been established that a party should proceed first to the latter Court for relief before resorting to the High Court. He referred to Emperor v.\n\nBishes11Jar Prasad Sinha( 1 ) where such a rule of practice was enforced in a criminal revision case, and called our attention also to certain American decisions Urquhart v.\n\nBrown(') and Hooney v.\n\nKolohan( ') as showing that the Supreme Court of the United States ordinarily required that whatever judicial remedies remained open to the applicant in Federal . ancl State Courts should be exhausted before the remedy in the Supreme Court-be it habeas corpus or certiorariwould be allowed.\n\nWe are of opinion that neither the instances mentioned by the learned Advocate-General nor the American decisions referred to by him are really analogous to the remedy afforded by article 32 of the Indian Constitution. That article does not merely confer power on this Court, as article 226 does on the\n\n(') I. L, R. 56 All. l58. i'j 20s u. 5. 179.\n\n(') 294 U.S. W\n\nHigh Courts, to issue certain writs for the enforcement of the rights conferred by Part III or for any other purpose, as part of its general jurisdiction.\n\nIn that case it would have been more appropriately placed among articles 131 to 139 which define that jurisdiction. Article 32 provides a \"guaranteed\" remedy for the enforcement of those rights, and this remedial right is itself made a fundamental right by being included in Part UL This Court is thus constituted the protector and guarantor of fundamental rights, and it cannot, consistently with the responsibility so laid upon it, refuse to entertain applications seeking protection\n\nagain.t infringements of such rights. No similar provision is to be found in the Constitution of the United States and we do not consider that the American decisions are in point.\n\nTurning now to the merits, there can be no doubt that freedom of speech and expression includes freedom of propagation of ideas, and that . freedom is ensurt:d / by the freedom of circulation. \"Liberty of circulation is as esscn tia I to that freedom as the liberty of publication.\n\nIndeed, without circulation the publication would be of little value\". Ex parte fackso11(1 ). Sec also Lovell v. City of Griffin( 2). It is therefore perfectly clear that the order of the Government of Madras would be a Yiolation of the petitioner's fundamental right under article 19(1) (a), unless section 9 (I-A) of the impugned Act under which it was made is saved by the reservations mentioned in clause (2) of article 19 w!iich (omitting immaterial words regarding laws relating to libel, slander, etc., with which we are not concemed in this case) saves the operation of any \"existing law in so far as it relates to any matter which undermines the security of, or tends to overthrow, the State.\" The question accordingly arises whether the impugned Act, in so far as it purpo:-ts by section 9(1-A) to authorise the Provincial Government \"for the purpose of ''ecming the public safety or tlie maintenance of public order, to prohibit or regulate the entry into\n\n( 1) 96 u, s. 727.\n\n(') 303 U.S. 444.\n\nRomesh T happar v.\n\nThe Stale of Madras.\n\nPatanjali Sastri, J.\n\nRonush T happar v.\n\nTiu State of\n\nMadras.\n\nPatanjali Sastri, J.\n\nor the circulation, sale or distribution in the Province of Madras or any part thereof of any document or class of documents\" is a \"law relating. to any matter which undermines the security of or tends to overthrow the State.\"\n\n. The impugned Act was passed by the Provincial Legislature in exercise of the power conferred upon it by section 100 of the Government of India Act, 1935, read with Entry I of List II of the Seventh Schedule to that Act, which comprises among other matters, \"public order.\" Now \"public order\" is an expression of wide connotation and signifies that state of tranquillity which prevails among titc members of a political society as a result of the internal regulations enforced by the government which they have established.\n\nAlthough section 9 (1-A) refers to \"securing the public\n\nsafety\" and \"the maintenance of public order\" as distinct purposes, it must be taken that \"public safety\" is used as a part of the wider concept of public order, for, if public safety were intended to signify any matte1 distinct from and outside the content of the expression \"public order,\" it would not have been competent for the Madras Legislature to enact the provision so far as it relates to public safety. This indeed was not disputed on behalf of the respondents.\n\nBut it was urged that the expression \"public safety\" in the impugned Act, which is a statute relating to law and order, means the security of the Province, and, therefore, \"the security of the State\" within the meaning of article 19 (2) as \"the State\" has been defined in article 12 as including, among other things, the Government and the Legislature of each of the erstwhile Provinces.\n\nMuch reliance was placed in support of this view on Rex v. Wormwood Scrubbs Prison(') where it was held that the phrase \"for securing the public. safety and the defence of the realm\" in section I of the Defence of the Realm (Consolidation) Act, 1914, was not limited to securing the cuntry against a foreign foe but included also protection against internal disorder such as a rebellion. The decision is not of much assistance to the respondents as the context in\n\n(') L.R. [1920] 2 K.B. 305.\n\nwhich the words \"public safety\" occurred in that Act showed unmistakably that the security of the State was the aim in view. Our attention has not been drawn to any definition of the expression \"public safety,\" nor does it appear that the words have acquired an.y technical signification as words of art.\n\n\"Public safety\" ordinarily means security of the public or their freedom from danger. In that sense, anything which tends to prevent dangers to public health may also be regarded as securing , public safety . . The meaning of the expression must, however, vary according to the context. In the classification of offences in the Indian Penal Code, for instance, Chapter XIV enumerates the \"offences affecting the public health, safety, convenience, decency, and morals\" and it includes rash driving or riding on a public way (section 279) and rash navigation of a vessel (section 280), among others, as offences against public safety, while Chapter VI lists waging war against the Queen (section 121), sedition (section 124-A) etc. as \"offences against the State\", because they are calculated to undermine or affect the security of the State, and Chapter. VIII defines \"offences against the public tranquillity\" which include unlawful assembly (section 141) rioting (section 146), prmoting enmity between classes (section 153-A), affray (section 159) etc. Although in the context of a statute relating to law and order \"securing public safety\" may not include the securing of public health, it may well mean securing the public against rash driving on a public way and the like, and not necessarily the security of the State.\n\nIt was said that an enactment which provided for drastic remedies like preventive detention and ban on newspapers must be taken to relate to matters affecting the security of the State rather than trivial offences like rash driving or an affray.\n\nBut whatever ends the impugned Act. may have been intended to subserve, and whatever aims its framers may have had in view, its application and scope cannot, in the absence of limiting words in the statute itself, be restricted to those aggravated forms of prejudicial activity which are calculated to\n\nRomnh T hap/HJ\n\nThe S1aJe of Madras.\n\nPaJanjali Sastri, J.\n\nRo\"\"'h Thappar\n\nThe Stall of\n\nMadras.\n\nPatanjali Sastri, J.\n\nendanger the security of the State. Nor is there any guarantee that those authorised to exercise the powers under the Act will in using them discriminate between those who act prejudicially to the security of the State and those who do not.\n\nThe Government of India Act, 1935, nowhere used the expression \"security of the State\" though it made provision under section 57 for dealing with crimes of violence intended to overthrow the Government.\n\nWhile the administration of law and order including the maintenance of public order was placed in charge of a Minister elected by the people, the Governor was entrusted with the responsibility of combating the operations of persons who \"endangered the peace or tranquillity of the Province\" by committing or attempting \"to commit \"crimes of violence intended to overthrow the Government.\"' Similarly, article 352 of the Constitution empowers the President to make a.\n\nProclamation of Emergency when he is satisfied that the \"security of India or any part of the territory thereof is thratene\n\nAnolhn\n\nT fie State of\n\nDelhi.\n\nFiu:l Ali J.\n\nhrjj B/slulian 6f .....,,.,,\n\nTiu S1au of\n\nINlhi.\n\nFaz.I Ali].\n\nIn my opinion, the word \"or\" is us¢d here not so much to separate two wholly different c'Oncepts as to show that they are closely allied concepts and can be used almost interchangeably in the context. I think that \"public order\" may well be paraphrased in the context as public tranquillity and the words \"public safety\" and \"public order\" may be read as equivalent to \"security of the State\" and \"public tranquillity.\"\n\nI will now advert once more to clause (2) of article 19 and state what I consider to be the reason for inserting in it the words \"matter which undermines the security of, or tends to overthrow, the State.\" It is well recognized in all systems of law that the right to freedom of speech and expression or freedom of the press means that any person may write or say what he pleases so long as he does not infringe the law relating to libel or slander or to blasphemous, obscene or seditious words or writings : (see Halsb\\lfy' s Laws of England, 2nd Edition, Vol. II, page 391).1 This is practically what has been said in clause (2) of article 19, with this difference only that instead of using the words \"law relating to sedition,\" the framers of the Constitution have used the words mentioned above.\n\nIt is interesting to note that sedition was mentioned in the original draft of the Constitution, but subsequently that word was dropped and the words which I have quoted were inserted. I think it is not difficult to discover the reason for this change and I shall briefly state in my own words what I consider it to be.\n\n, The latest pronouncement by the highest Indian tribunal as to the law of sedition is to be found in Niharendu Dutt Majumdar v.\n\nThe King(') which has been quoted again and again and in which Gwyer C. J. laid down that public disorder, or the reasonable anticipation or likehood of public disorder, is the gist of the offence of sedition and \"the acts or words complained of must either incite to disorder or\n\n(1) [194•] •. c. ll, 38.\n\nS.C.R.\n\nSUPREME COUR'f REPORTS. 61~\n\nmust be such as to satisfy reasonable men that that is their intention or tendency.\" For this. view, the learned Chief Justice relied on certain observations of Fitzgerald J. in R. v. Sullivan(1)1, and he also added that he was content to adopt \"the words 6£ tliat learned Judge which are to be found in every book dealing with' this branch of the criminal\n\nlaw.\" There is no doubt that what Gwyer C. J. has stated in that case repre8ents the view of a number of Judges and authors and was also the view of Sir James Stephen in regard to whom Cave J. in his charge to the jury in a case relating to the law of sedition [R. v.\n\n· Burns (1 ) said :-\n\n\"The law upon the question of what is seditious and what is not is to be found stated very clearly in a book by Stephen J. who has undoubtedly a greater kaowledge of criminal law than any other Judge who sits . upon the Bench, and what he has said upon the . $Ubject of sedition was submitted to the other Judges, who sometime back were engaged with him in drafting a criminal code, and upon their report the Commissioners say . that his statement of law appears to them to be stated accurately as it exi5\"s at present.\"\n\nThe decision. of Gwyer C. J. held the field for several years until the Privy Council, dealing with a case under the Defence of India Rules, expressed the view in King Emperor v.\n\nSadhashiv Narayan Bhalerao (8 ) that the test laid down by thG learned Chief Justice . was not applicable in India where the offence under section 124A of the Indian Penal Code should be construed with reference to the words used in that section. They also added :-\n\n''The word 'sedition' does not occur either in section 124A or in the Rule ; it is only found as a marginal note to section 124A, and Is not an operative part of the section, but merely provides the name by which the crime defined in the section will be known.\n\n(1) [1868]'11 Cox. C.C. 44. (') [1886] 16. Cox. 355. (•) 74 I.A. 89.\n\nUl50\n\nBrij Bhushan 6f\n\nAllDl/ur ·\n\nTlllS1ai. of\n\nDllhi.\n\nFa.ti Ali].\n\nBrij Bhushan &\n\nAnothlr\n\nTJr. Stau qf\n\nDelhi.\n\nFa:/ Ali]·\n\nThere can be no justification for restricting the contents of the section by the marginal note. In England there is no statutory definition of sedition ; its meaning and content have been laid down in many decisions, some of which are referred to by the Chief Justice, but these decisions are not relevant when you have a statutory definition of that which is termed sedition as we have in the present case.\n\nTheir Lordships are unable to find anything in the language of either section 124A or the Rule which could suggest that 'the acts or words complained of must either incite to disorder or must be such as to satisfy reasonable men that this is their intention or tendency.' \"\n\nThe framers .of the Constitution must have therefore found themselves face to face with the dilemma as to whether the word \"sedition\" should be used in article 19 (2) and if it was to be used in what sense it was to be used. On the one hand, they must have had before their mind the very widely accepted view supported by numerous authorities that sedition was essentially an offence agai11.st public tranquillity and was connected in some way or other with public disorder ; and, on the other hand, there was the pronouncement of the Judicial Committee that sedition as defined in the Indian Penal Code did not necessarily imply any intention or tendency to incite disorder.\n\nIn these circumstances, it is not surprising that they decided not to use the word \"sedition\" in clause (2) but used the more general. words which cover sedition and everything else which makes sedition such a serious offence.\n\nThat sedition does undermine the security of the State is a matter which cannot admit of much doubt. That it undermines the security of the State usually through the medium of public disorder is also a matter on which eminent Judges and jurists are agreed.\n\nTherefore it is difficult to hold that public disorder or disturbance of public tranquillity are not matters which undermine the security of the State.\n\nS.C.R.\n\nSUJ?REME COURT REPORTS 617\n\nIt will not be out of place to quote here the following passage from Stephen's Criminal Law of England (Vol. If, pp. 242 and 243) :-\n\n\"It often happens, however, that the public peace is disturbed by offences which without tending to the subversion of the existing political constitution practically subvert the authority of the Government over a greater or less local area for a longer or shorter time.\n\nThe Bristol riots in 1832 and the Gordon riots in 1780 are instances of this kind.\n\nNo definite line. can be drawn between insurrections of this sort, ordinary riots, and unlawful assemblies. The difference between a meeting stormy enough to cause well-founded fear of a breach of the peace, and a civil war the result of which may determine the course of a nation's history for centuries, is a difference of degree. Unlawful assemblies, riots, insurrections, rebellions, levying of war, are offences which run into each other, and are not capable of being marked off by perfectly defirute boundaries.\n\nAll of them haye in common one feature, namely, that the normal tranquillity of a civilised society is in each of the cases mentioned disturbed either by actual force or at least by the show and threat of it.\n\nAnother class of offences against public tranquillity are those in which no actual force is either employed or displayed, but in which steps are taken tending to cause it.\n\nThese are the formation of secret societies, seditious conspiracies, libels or words spoken.\n\nUnder these tcrnal public arranged.''\n\ntwo heads all offences against the intranquillity of the State may be\n\nThis passage brings out two matters with remarkable clarity. It shows firstly that sedition is essentially an offence against public tranquillity and secondly that broadly speaking there are two classes of offences agaihst public tranquillity : (a) those accompanied by violence including disorders which\n\nBrij BhushfJJI &\n\nAnoth.r\n\nThe State of Delhi.\n\nFazl Ali J.\n\n.Brij B.- l'I .,,..,,,,,\n\nTA1St.u of\n\nDI/Iii.\n\nFatJ .Ali J.\n\naffect tranquillity of a considerable number of persons or an extensive local area, and (b) those not accompaI).icd by violence but tending to cause it, such as seditious utterances, seditious conspiracies, etc.\n\nBoth these classes of offences are such as will undermine. the security of the State or tend to overthrow it if left unchecked, and, as I have tried to point out, there is a good deal of authoritative opinion in favour of the view that the gravity ascribed to sedition is due to the fact that it tends to seriously affect the tranquillity and security of .the tate. In principle, en, .it would not have been logical to Icfer to sedioon m clause (2) of article . 19 and omit matters .which are no less grave and which have equal potentiality for undermining the security of the State.\n\nIt appears that the framers of the Constitution preferred to adopt the logical course and have used the more general and basic words which are apt to cover sedition as well as other matters which are as detrimental to the security of the State as sedition.\n\nIf the Act is to be viewed as I have suggested, it is difficult to hold that section 7 ( 1) ( c) falls outside the ambit of article 19 ( 2). That clause clearlystates that nothing in clause ( 1) (a} shall affect the operation of any existing law relating to any matter which undermines the security of, or tends to overthrow, the State. I have tried to show that public disorders and disturbance of public tranquillity do undermine the security of the State . and if the Act is a law aimed at preventing such disorders, it fulfils the requirement of the Constitution. It is needless to add that the word \"State\" has been defined in article 12 of the Constitution to include \"the Government and Parliament of India and the Government and Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of Jndia.\"\n\nI find that section 20 of the impugned Act provides that the Provincial Government may by notification\n\ndeclare that the whole or any part of the Province as may be specified in the notifiGation is a dangerously disturbed area. This provision has some bearing on the aim and object of the Act, and we cannot overlook it when considering its scope. It may be incidentally mentioned that we have been informed that, under this section, Delhi Province has been notified to be a \"dangerously disturbed area.\"\n\nIt must be recognized that freedom of speech and expression is 'one of the most valuable rights guaranteed to a citizen bv the Constitution and should be jealously guarded by the Courts.\n\nIt must also be recognised that free political discussion is essential for the proper functioning of a democratic government, aad the tendency af modern jurists is to deprecate censorship though they all agree that \"liberty of the press\" is not to be confused with its \"licentiousness.\" But the Constitution itself has prescribed . certain limits for the exercise of the freedom of speech and expression and this Court is only called upon to sec whether a particular case comes within those limits.\n\nIn my opinion, the law which is impugned is fully saved by article 19 (2) and if it cannot he successfully assailed it is not possible to grant the remedy which the petitioners arc seeking here.\n\nAs has been stated already, the order which is impugned in this case recites that the weekly Organizer has been publishing highly objectionable matter constituting a threat of public law and order\" and that the action which it is proposed to take against the petitioners \"is necessary for the. purpose of preventing or combating activities prejudicial to public safety or . the maintenance of public order.\" These facts arc supported by an affidavit sworn by the Home .\n\nSecretary to the Chief Commissioner, who also states among other things that the order in question was passed by the Chief Commissioner in consultation with the C-cntral Press Advisory Committee, which is an independent body elected by the AU-India Newspaper Editors' Conference and is . composed of 8---5 S. C. India (N.D.J/58\n\nBrij BJ111shtJ11 f.! btit,,,.\n\nTllA Stnttef\n\nD1/hi.\n\nT t.. SlotL ef\n\nDll/O.\n\nTtll!l ,(Ji J.\n\nreprcsentati ves of some of the lc;.ding papen such as The Hind•stao Times, Stausmtm, etc.\n\nIn my tipinion, there can be no doubt that the Chief Commissioner has purported to act in this case within the sphere within which he is pemiitted to act under the Jaw, and it is beyond the power of this Court to grant the reliefs claimed by the petitioners.\n\nIn these circumstances, I would dismiss the petitioners' application.\n\nPetition allowed.\n\nAgent for the petitioners : Ganpat RJli.\n\nAgent for the respondent: P. A. Mehta.\n\nQIPN-S1-5 S. C. Indi• (N. D.)/58.-27-2-59-500.", "total_entities": 118, "entities": [{"text": "-K. /. Kale", "label": "LAWYER", "start_char": 981, "end_char": 992, "source": "ner", "metadata": {"in_sentence": "Agent for the petitioner :-K. /. Kale."}}, {"text": "-P. A. Mehta", "label": "LAWYER", "start_char": 1025, "end_char": 1037, "source": "ner", "metadata": {"in_sentence": "Agent for the opposite party :-P. A. Mehta.", "canonical_name": "-P. A. Mehta"}}, {"text": "BRIT BHUSHAN AND ANOTHER", "label": "PETITIONER", "start_char": 1040, "end_char": 1064, "source": "metadata", "metadata": {"canonical_name": "BRIT BHUSHAN AND ANOTHER", "offset_not_found": false}}, {"text": "THE STATE OF DELHI", "label": "RESPONDENT", "start_char": 1071, "end_char": 1089, "source": "metadata", "metadata": {"canonical_name": "THE STATE OF DELHI", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA C.J.", "label": "JUDGE", "start_char": 1092, "end_char": 1115, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 1134, "end_char": 1150, "source": "metadata", "metadata": {"canonical_name": "PATANJALI SASTRI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 1152, "end_char": 1170, "source": "metadata", "metadata": {"canonical_name": "MEHR\n\nCHAND MAHAJAN", "offset_not_found": false}}, {"text": "DAs JJ", "label": "JUDGE", "start_char": 1186, "end_char": 1192, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 1195, "end_char": 1216, "source": "regex", "metadata": {}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 1550, "end_char": 1557, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "East Punjab Public Safety Act, 1949", "label": "STATUTE", "start_char": 1567, "end_char": 1602, "source": "regex", "metadata": {}}, {"text": "sec. 7", "label": "PROVISION", "start_char": 1604, "end_char": 1610, "source": "regex", "metadata": {"linked_statute_text": "East Punjab Public Safety Act, 1949", "statute": "East Punjab Public Safety Act, 1949"}}, {"text": "Section 7", "label": "PROVISION", "start_char": 1630, "end_char": 1639, "source": "regex", "metadata": {"linked_statute_text": "East Punjab Public Safety Act, 1949", "statute": "East Punjab Public Safety Act, 1949"}}, {"text": "East Punjab Public Safety Act, 1949", "label": "STATUTE", "start_char": 1656, "end_char": 1691, "source": "regex", "metadata": {}}, {"text": "Delhi", "label": "GPE", "start_char": 1724, "end_char": 1729, "source": "ner", "metadata": {"in_sentence": "Section 7 (I) ( c) of the East Punjab Public Safety Act, 1949, as extended to the Province of Delhi provided that \"the Provincial Government or any authority authorised by it in this behalf, if satisfied that such action is necessary for preventing or combating any activity prejudicial to the public safety or the maintenance of public order may, by order in writing adGresscd to a printer, publisher or editor require that any matter relating to a\n\nRomtsh T hap/HJ•\n\nThe Stau qf\n\nMadras."}}, {"text": "Brij Bhus", "label": "PETITIONER", "start_char": 2149, "end_char": 2158, "source": "ner", "metadata": {"in_sentence": "Brij Bhus\"\"' &I\n\nA'1t1lhtr\n\nT Ju S1au ef\n\nn.lhi.", "canonical_name": "BRIT BHUSHAN AND ANOTHER"}}, {"text": "S1", "label": "PROVISION", "start_char": 2182, "end_char": 2184, "source": "regex", "metadata": {"linked_statute_text": "the East Punjab Public Safety Act, 1949", "statute": "the East Punjab Public Safety Act, 1949"}}, {"text": "S1", "label": "PROVISION", "start_char": 2325, "end_char": 2327, "source": "regex", "metadata": {"linked_statute_text": "the East Punjab Public Safety Act, 1949", "statute": "the East Punjab Public Safety Act, 1949"}}, {"text": "MEHR\n\nCHAND MAHAJAN", "label": "JUDGE", "start_char": 2336, "end_char": 2355, "source": "ner", "metadata": {"in_sentence": "Held per KANIA\n\nC. J.,\n\nPATANJALI S1i.sTRI,\n\nMEHR\n\nCHAND MAHAJAN, MuKHERJEA and DAs\n\nJJ.-(FAZL ALI J. dissenting) that inasumch as s. 7 ( l) ( c) authorised the imposition of restrictions on the fundamental right of freedom of speech and expression guaranteed by art.", "canonical_name": "MEHR\n\nCHAND MAHAJAN"}}, {"text": "MuKHERJEA", "label": "JUDGE", "start_char": 2357, "end_char": 2366, "source": "ner", "metadata": {"in_sentence": "Held per KANIA\n\nC. J.,\n\nPATANJALI S1i.sTRI,\n\nMEHR\n\nCHAND MAHAJAN, MuKHERJEA and DAs\n\nJJ.-(FAZL ALI J. dissenting) that inasumch as s. 7 ( l) ( c) authorised the imposition of restrictions on the fundamental right of freedom of speech and expression guaranteed by art.", "canonical_name": "MuKHERJEA"}}, {"text": "DAs", "label": "JUDGE", "start_char": 2371, "end_char": 2374, "source": "ner", "metadata": {"in_sentence": "Held per KANIA\n\nC. J.,\n\nPATANJALI S1i.sTRI,\n\nMEHR\n\nCHAND MAHAJAN, MuKHERJEA and DAs\n\nJJ.-(FAZL ALI J. dissenting) that inasumch as s. 7 ( l) ( c) authorised the imposition of restrictions on the fundamental right of freedom of speech and expression guaranteed by art.", "canonical_name": "DAs"}}, {"text": "s. 7", "label": "PROVISION", "start_char": 2422, "end_char": 2426, "source": "regex", "metadata": {"linked_statute_text": "the East Punjab Public Safety Act, 1949", "statute": "the East Punjab Public Safety Act, 1949"}}, {"text": "art. 19", "label": "PROVISION", "start_char": 2554, "end_char": 2561, "source": "regex", "metadata": {"linked_statute_text": "the East Punjab Public Safety Act, 1949", "statute": "the East Punjab Public Safety Act, 1949"}}, {"text": "art. 19", "label": "PROVISION", "start_char": 2872, "end_char": 2879, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "FAZL ALI", "label": "JUDGE", "start_char": 2986, "end_char": 2994, "source": "ner", "metadata": {"in_sentence": "Per FAZL ALI J.-The expression \"public safety\"_ has, as a result of a long course of legislative practice acquired a wellrccognised meaning and may be taken to denote safety, or security of the State; and, though the expression \"public order\" is wide enough to cover small disturbances of the peace which do not jeopardise the security of the State yet, prominence given in the Act to public safety, the fact that the Act is a piece of special legislation providing for special measures and the aim and scope of the Act in general, show that preservation of public safety is the dominant purpose of the Act~ and .. public order\" may well be paraphrased in the context as \"public tranquillity\".", "canonical_name": "Fazl JfliJ."}}, {"text": "s. 7", "label": "PROVISION", "start_char": 3779, "end_char": 3783, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 19(2)", "label": "PROVISION", "start_char": 3911, "end_char": 3921, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "art. 19", "label": "PROVISION", "start_char": 4148, "end_char": 4155, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Blackstone", "label": "OTHER_PERSON", "start_char": 4165, "end_char": 4175, "source": "ner", "metadata": {"in_sentence": "Blackstone's Commentaries referred .to."}}, {"text": "article 32", "label": "PROVISION", "start_char": 4276, "end_char": 4286, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 4296, "end_char": 4317, "source": "regex", "metadata": {}}, {"text": "N. C. Chatterjee", "label": "LAWYER", "start_char": 4399, "end_char": 4415, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee ( B. Banerji, with him) for the petitioner."}}, {"text": "B. Banerji", "label": "LAWYER", "start_char": 4418, "end_char": 4428, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee ( B. Banerji, with him) for the petitioner."}}, {"text": "M.\n\nSetaluad", "label": "LAWYER", "start_char": 4462, "end_char": 4474, "source": "ner", "metadata": {"in_sentence": "M.\n\nSetaluad, Attorney-Geneal for India, (S. M.\n\nSikri, with him) for the respondent."}}, {"text": "S. M.\n\nSikri", "label": "LAWYER", "start_char": 4504, "end_char": 4516, "source": "ner", "metadata": {"in_sentence": "M.\n\nSetaluad, Attorney-Geneal for India, (S. M.\n\nSikri, with him) for the respondent."}}, {"text": "Kania C.", "label": "JUDGE", "start_char": 4579, "end_char": 4587, "source": "ner", "metadata": {"in_sentence": "The judgment of Kania C. J .,"}}, {"text": "Patanjali Sastri", "label": "JUDGE", "start_char": 4593, "end_char": 4609, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri, Mehr Chand Mahajan, Mukherjea and Das\n\nJJ.", "canonical_name": "PATANJALI SASTRI"}}, {"text": "Mehr Chand Mahajan", "label": "JUDGE", "start_char": 4611, "end_char": 4629, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri, Mehr Chand Mahajan, Mukherjea and Das\n\nJJ.", "canonical_name": "MEHR\n\nCHAND MAHAJAN"}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 4631, "end_char": 4640, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri, Mehr Chand Mahajan, Mukherjea and Das\n\nJJ.", "canonical_name": "MuKHERJEA"}}, {"text": "Das", "label": "JUDGE", "start_char": 4645, "end_char": 4648, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri, Mehr Chand Mahajan, Mukherjea and Das\n\nJJ.", "canonical_name": "DAs"}}, {"text": "FAZL Au", "label": "JUDGE", "start_char": 4692, "end_char": 4699, "source": "ner", "metadata": {"in_sentence": "was delivered by Patanjali Sastri J.\n\nFAZL Au J. delivered a separate dissenting judgment.", "canonical_name": "Fazl JfliJ."}}, {"text": "PATANJALI SAsTR1", "label": "JUDGE", "start_char": 4746, "end_char": 4762, "source": "ner", "metadata": {"in_sentence": "PATANJALI SAsTR1 J.-This is an application under article 32 of the Constitution praying for the issue of writs of certiorari and prohibition to the respondent, the Chief Commissioner of Delhi, with a view to examine the legality of and quash the order made by him in regard to an English weekly of Delhi called the Organizer of which the first applicant is the printer and publisher, and the second is the editor.", "canonical_name": "PATANJALI SASTRI"}}, {"text": "article 32", "label": "PROVISION", "start_char": 4795, "end_char": 4805, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "2nd March, 1950", "label": "DATE", "start_char": 5163, "end_char": 5178, "source": "ner", "metadata": {"in_sentence": "On 2nd March, 1950, the respondent, in exercise of powers conferred on him by section 7 ( 1) ( c) of the East Punjab Public Safety Act, 1949, which has been extendtd to the Delhi Province and is hereinafter referred to as the impugned Act, issued the following order : \"Whereas the Chief Commissioner, Delhi, is satisfied that -Organizer, an English weekly of Delhi, has been publishing highly objectionable matter constituting a threat to public law and order and that action as is hereinafter mentioned is necessary for the purpose of preventing or combating activities prejudicial to the public safety or the maintenance of public order."}}, {"text": "section 7", "label": "PROVISION", "start_char": 5238, "end_char": 5247, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "East Punjab Public Safety Act, 1949", "label": "STATUTE", "start_char": 5265, "end_char": 5300, "source": "regex", "metadata": {}}, {"text": "section 7(1)(c)", "label": "PROVISION", "start_char": 5855, "end_char": 5870, "source": "regex", "metadata": {"linked_statute_text": "the East Punjab Public Safety Act, 1949", "statute": "the East Punjab Public Safety Act, 1949"}}, {"text": "Shankar Prasad", "label": "OTHER_PERSON", "start_char": 5955, "end_char": 5969, "source": "ner", "metadata": {"in_sentence": "Now therefore in exercise of the powers conferred by section 7(1)(c) of the East Punjab Public Safety Act, - i949, as extended to the Delhi Province, I, Shankar Prasad, Chief Commissioner, Delhi, do by this order require you Shri Brij Bhushan, Printer and Publisher and Shri K. R. Halkani, Editor of the aforesaid paper to submit for scrutiny, in duplicate, before publication, till fyrther orders, all communal matter and news and views about Pakistan including photographs and cartoons other than those derived from official sources or supplied by the news agencies, viz.,"}}, {"text": "Brij Bhushan", "label": "PETITIONER", "start_char": 6032, "end_char": 6044, "source": "ner", "metadata": {"in_sentence": "Now therefore in exercise of the powers conferred by section 7(1)(c) of the East Punjab Public Safety Act, - i949, as extended to the Delhi Province, I, Shankar Prasad, Chief Commissioner, Delhi, do by this order require you Shri Brij Bhushan, Printer and Publisher and Shri K. R. Halkani, Editor of the aforesaid paper to submit for scrutiny, in duplicate, before publication, till fyrther orders, all communal matter and news and views about Pakistan including photographs and cartoons other than those derived from official sources or supplied by the news agencies, viz.,", "canonical_name": "BRIT BHUSHAN AND ANOTHER"}}, {"text": "K. R. Halkani", "label": "OTHER_PERSON", "start_char": 6077, "end_char": 6090, "source": "ner", "metadata": {"in_sentence": "Now therefore in exercise of the powers conferred by section 7(1)(c) of the East Punjab Public Safety Act, - i949, as extended to the Delhi Province, I, Shankar Prasad, Chief Commissioner, Delhi, do by this order require you Shri Brij Bhushan, Printer and Publisher and Shri K. R. Halkani, Editor of the aforesaid paper to submit for scrutiny, in duplicate, before publication, till fyrther orders, all communal matter and news and views about Pakistan including photographs and cartoons other than those derived from official sources or supplied by the news agencies, viz.,"}}, {"text": "Pakistan", "label": "GPE", "start_char": 6246, "end_char": 6254, "source": "ner", "metadata": {"in_sentence": "Now therefore in exercise of the powers conferred by section 7(1)(c) of the East Punjab Public Safety Act, - i949, as extended to the Delhi Province, I, Shankar Prasad, Chief Commissioner, Delhi, do by this order require you Shri Brij Bhushan, Printer and Publisher and Shri K. R. Halkani, Editor of the aforesaid paper to submit for scrutiny, in duplicate, before publication, till fyrther orders, all communal matter and news and views about Pakistan including photographs and cartoons other than those derived from official sources or supplied by the news agencies, viz.,"}}, {"text": "Press Trust of India", "label": "ORG", "start_char": 6377, "end_char": 6397, "source": "ner", "metadata": {"in_sentence": "Press Trust of India, United Press of India and United Press of America to the Provincial Press Officer, or in his absence, to Superintendent of Press\n\nBranch at his office at 5, Alipur Road, Civil Lines, Delhi, between the hours 10 a.m. and 5 p.m. on working days.\""}}, {"text": "United Press of India", "label": "ORG", "start_char": 6399, "end_char": 6420, "source": "ner", "metadata": {"in_sentence": "Press Trust of India, United Press of India and United Press of America to the Provincial Press Officer, or in his absence, to Superintendent of Press\n\nBranch at his office at 5, Alipur Road, Civil Lines, Delhi, between the hours 10 a.m. and 5 p.m. on working days.\""}}, {"text": "United Press of America", "label": "ORG", "start_char": 6425, "end_char": 6448, "source": "ner", "metadata": {"in_sentence": "Press Trust of India, United Press of India and United Press of America to the Provincial Press Officer, or in his absence, to Superintendent of Press\n\nBranch at his office at 5, Alipur Road, Civil Lines, Delhi, between the hours 10 a.m. and 5 p.m. on working days.\""}}, {"text": "section 7", "label": "PROVISION", "start_char": 6719, "end_char": 6728, "source": "regex", "metadata": {"statute": null}}, {"text": "PolaNjali", "label": "JUDGE", "start_char": 6917, "end_char": 6926, "source": "ner", "metadata": {"in_sentence": "PolaNjali &slri, J.\n\nllr{i Bhushan &\n\nAnollur."}}, {"text": "Bhushan", "label": "JUDGE", "start_char": 6944, "end_char": 6951, "source": "ner", "metadata": {"in_sentence": "PolaNjali &slri, J.\n\nllr{i Bhushan &\n\nAnollur."}}, {"text": "State of\n\nDelhi", "label": "RESPONDENT", "start_char": 6969, "end_char": 6984, "source": "ner", "metadata": {"in_sentence": "The State of\n\nDelhi.", "canonical_name": "State of\n\nDelhi"}}, {"text": "Section 7", "label": "PROVISION", "start_char": 7080, "end_char": 7089, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19(1)", "label": "PROVISION", "start_char": 7787, "end_char": 7800, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19(1)", "label": "PROVISION", "start_char": 8184, "end_char": 8197, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "section 7", "label": "PROVISION", "start_char": 8596, "end_char": 8605, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 8713, "end_char": 8723, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "section 7(1)", "label": "PROVISION", "start_char": 9303, "end_char": 9315, "source": "regex", "metadata": {"statute": null}}, {"text": "Public Safety Act, 1949", "label": "STATUTE", "start_char": 9340, "end_char": 9363, "source": "regex", "metadata": {}}, {"text": "Brij Bliusltan", "label": "PETITIONER", "start_char": 9431, "end_char": 9445, "source": "ner", "metadata": {"in_sentence": "runs as follows:-\n\nBrij Bliusltan &\n\n.dllllllrlr\n\n\"The Proyincial Government or any authority authorised by it in this behalf if satisfied that such action is necessary for the purpose of preventing or combating any activity prejudicial to the public safety or the maintenance of public order, may, by order 'tn\n\nwriting addressed to a printer, publisher or editor- • •\n\n(c) require that any matter relating to a particular subject or class of subjects shall before publication be submitted for scrutiny ;\"\n\nIt should be noted that the provisio11s of sub-clause ( c) are not in gen!=ral terms but are confined to a \"particular subject or .", "canonical_name": "BRIT BHUSHAN AND ANOTHER"}}, {"text": "Proyincial Government", "label": "PETITIONER", "start_char": 9467, "end_char": 9488, "source": "ner", "metadata": {"in_sentence": "runs as follows:-\n\nBrij Bliusltan &\n\n.dllllllrlr\n\n\"The Proyincial Government or any authority authorised by it in this behalf if satisfied that such action is necessary for the purpose of preventing or combating any activity prejudicial to the public safety or the maintenance of public order, may, by order 'tn\n\nwriting addressed to a printer, publisher or editor- • •\n\n(c) require that any matter relating to a particular subject or class of subjects shall before publication be submitted for scrutiny ;\"\n\nIt should be noted that the provisio11s of sub-clause ( c) are not in gen!=ral terms but are confined to a \"particular subject or ."}}, {"text": "Fazl JfliJ.", "label": "JUDGE", "start_char": 11344, "end_char": 11355, "source": "ner", "metadata": {"in_sentence": "Fazl JfliJ.\n\nT h4 Sra/6 of\n\nD1lhi.", "canonical_name": "Fazl JfliJ."}}, {"text": "article 19", "label": "PROVISION", "start_char": 11701, "end_char": 11711, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Articles 19", "label": "PROVISION", "start_char": 11742, "end_char": 11753, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "section 7", "label": "PROVISION", "start_char": 12288, "end_char": 12297, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 12399, "end_char": 12409, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 12978, "end_char": 12988, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 13099, "end_char": 13109, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "East Punjab Public Safety Act, 1949", "label": "STATUTE", "start_char": 13153, "end_char": 13188, "source": "regex", "metadata": {}}, {"text": "section 7", "label": "PROVISION", "start_char": 13199, "end_char": 13208, "source": "regex", "metadata": {"linked_statute_text": "The East Punjab Public Safety Act, 1949", "statute": "The East Punjab Public Safety Act, 1949"}}, {"text": "section 100", "label": "PROVISION", "start_char": 13307, "end_char": 13318, "source": "regex", "metadata": {"linked_statute_text": "The East Punjab Public Safety Act, 1949", "statute": "The East Punjab Public Safety Act, 1949"}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 13326, "end_char": 13355, "source": "regex", "metadata": {}}, {"text": "List II of the Seventh Schedule to that Act", "label": "STATUTE", "start_char": 13382, "end_char": 13425, "source": "regex", "metadata": {}}, {"text": "was not disputed that under the Government of India Act, 1935", "label": "STATUTE", "start_char": 14133, "end_char": 14194, "source": "regex", "metadata": {}}, {"text": "Indian Penal Code", "label": "STATUTE", "start_char": 14699, "end_char": 14716, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 1", "label": "PROVISION", "start_char": 15198, "end_char": 15207, "source": "regex", "metadata": {"statute": null}}, {"text": "Brjj Bhushan", "label": "PETITIONER", "start_char": 15494, "end_char": 15506, "source": "ner", "metadata": {"in_sentence": "7-s s. c. India (N.D.)/58\n\nBrjj Bhushan &\n\nAnother\n\nThe State of Delhi.", "canonical_name": "BRIT BHUSHAN AND ANOTHER"}}, {"text": "State of Delhi", "label": "RESPONDENT", "start_char": 15523, "end_char": 15537, "source": "ner", "metadata": {"in_sentence": "7-s s. c. India (N.D.)/58\n\nBrjj Bhushan &\n\nAnother\n\nThe State of Delhi.", "canonical_name": "State of\n\nDelhi"}}, {"text": "Brjj Bhushan", "label": "JUDGE", "start_char": 15555, "end_char": 15567, "source": "ner", "metadata": {"in_sentence": "Fa-i:l Ali J.\n\nBrjj Bhushan (JI\n\nAnother\n\nThe Slate of\n\nDelhi\n\nfoci Ali].", "canonical_name": "BRIT BHUSHAN AND ANOTHER"}}, {"text": "Penal Code", "label": "STATUTE", "start_char": 17680, "end_char": 17690, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "S1", "label": "PROVISION", "start_char": 19924, "end_char": 19926, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 20420, "end_char": 20430, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "England", "label": "GPE", "start_char": 20910, "end_char": 20917, "source": "ner", "metadata": {"in_sentence": "It is well recognized in all systems of law that the right to freedom of speech and expression or freedom of the press means that any person may write or say what he pleases so long as he does not infringe the law relating to libel or slander or to blasphemous, obscene or seditious words or writings : (see Halsb\\lfy' s Laws of England, 2nd Edition, Vol."}}, {"text": "article 19", "label": "PROVISION", "start_char": 21009, "end_char": 21019, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Gwyer", "label": "JUDGE", "start_char": 21691, "end_char": 21696, "source": "ner", "metadata": {"in_sentence": ", The latest pronouncement by the highest Indian tribunal as to the law of sedition is to be found in Niharendu Dutt Majumdar v.\n\nThe King(') which has been quoted again and again and in which Gwyer C. J. laid down that public disorder, or the reasonable anticipation or likehood of public disorder, is the gist of the offence of sedition and \"the acts or words complained of must either incite to disorder or\n\n(1) [194•] •. c. ll, 38."}}, {"text": "Fitzgerald", "label": "JUDGE", "start_char": 22133, "end_char": 22143, "source": "ner", "metadata": {"in_sentence": "view, the learned Chief Justice relied on certain observations of Fitzgerald J. in R. v. Sullivan(1)1, and he also added that he was content to adopt \"the words 6£ tliat learned Judge which are to be found in every book dealing with' this branch of the criminal\n\nlaw.\""}}, {"text": "James Stephen", "label": "OTHER_PERSON", "start_char": 22483, "end_char": 22496, "source": "ner", "metadata": {"in_sentence": "There is no doubt that what Gwyer C. J. has stated in that case repre8ents the view of a number of Judges and authors and was also the view of Sir James Stephen in regard to whom Cave J. in his charge to the jury in a case relating to the law of sedition [R. v.\n\n· Burns (1 ) said :-\n\n\"The law upon the question of what is seditious and what is not is to be found stated very clearly in a book by Stephen J. who has undoubtedly a greater kaowledge of criminal law than any other Judge who sits ."}}, {"text": "Cave", "label": "JUDGE", "start_char": 22515, "end_char": 22519, "source": "ner", "metadata": {"in_sentence": "There is no doubt that what Gwyer C. J. has stated in that case repre8ents the view of a number of Judges and authors and was also the view of Sir James Stephen in regard to whom Cave J. in his charge to the jury in a case relating to the law of sedition [R. v.\n\n· Burns (1 ) said :-\n\n\"The law upon the question of what is seditious and what is not is to be found stated very clearly in a book by Stephen J. who has undoubtedly a greater kaowledge of criminal law than any other Judge who sits ."}}, {"text": "Stephen", "label": "JUDGE", "start_char": 22733, "end_char": 22740, "source": "ner", "metadata": {"in_sentence": "There is no doubt that what Gwyer C. J. has stated in that case repre8ents the view of a number of Judges and authors and was also the view of Sir James Stephen in regard to whom Cave J. in his charge to the jury in a case relating to the law of sedition [R. v.\n\n· Burns (1 ) said :-\n\n\"The law upon the question of what is seditious and what is not is to be found stated very clearly in a book by Stephen J. who has undoubtedly a greater kaowledge of criminal law than any other Judge who sits ."}}, {"text": "India", "label": "GPE", "start_char": 23432, "end_char": 23437, "source": "ner", "metadata": {"in_sentence": "was not applicable in India where the offence under section 124A of the Indian Penal Code should be construed with reference to the words used in that section."}}, {"text": "section 124A", "label": "PROVISION", "start_char": 23462, "end_char": 23474, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Penal Code", "label": "STATUTE", "start_char": 23482, "end_char": 23499, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 124A", "label": "PROVISION", "start_char": 23637, "end_char": 23649, "source": "regex", "metadata": {"statute": null}}, {"text": "section 124A", "label": "PROVISION", "start_char": 23706, "end_char": 23718, "source": "regex", "metadata": {"statute": null}}, {"text": "section 124A", "label": "PROVISION", "start_char": 24530, "end_char": 24542, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 24887, "end_char": 24897, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Indian Penal Code", "label": "STATUTE", "start_char": 25321, "end_char": 25338, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Bristol", "label": "GPE", "start_char": 26496, "end_char": 26503, "source": "ner", "metadata": {"in_sentence": "The Bristol riots in 1832 and the Gordon riots in 1780 are instances of this kind."}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 28036, "end_char": 28044, "source": "ner", "metadata": {"in_sentence": "Fazl Ali J.\n\n.Brij B.- l'I .,,..,,,,,", "canonical_name": "Fazl JfliJ."}}, {"text": "FatJ .Ali", "label": "JUDGE", "start_char": 28096, "end_char": 28105, "source": "ner", "metadata": {"in_sentence": "FatJ .Ali J.\n\naffect tranquillity of a considerable number of persons or an extensive local area, and (b) those not accompaI).icd by violence but tending to cause it, such as seditious utterances, seditious conspiracies, etc."}}, {"text": "section 7", "label": "PROVISION", "start_char": 29243, "end_char": 29252, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 29290, "end_char": 29300, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 12", "label": "PROVISION", "start_char": 29798, "end_char": 29808, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Parliament of India", "label": "ORG", "start_char": 29860, "end_char": 29879, "source": "ner", "metadata": {"in_sentence": "It is needless to add that the word \"State\" has been defined in article 12 of the Constitution to include \"the Government and Parliament of India and the Government and Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of Jndia.\""}}, {"text": "Government of Jndia", "label": "ORG", "start_char": 30030, "end_char": 30049, "source": "ner", "metadata": {"in_sentence": "It is needless to add that the word \"State\" has been defined in article 12 of the Constitution to include \"the Government and Parliament of India and the Government and Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of Jndia.\""}}, {"text": "section 20", "label": "PROVISION", "start_char": 30065, "end_char": 30075, "source": "regex", "metadata": {"statute": null}}, {"text": "article 19", "label": "PROVISION", "start_char": 31306, "end_char": 31316, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "C-cntral Press Advisory Committee", "label": "ORG", "start_char": 32075, "end_char": 32108, "source": "ner", "metadata": {"in_sentence": "Secretary to the Chief Commissioner, who also states among other things that the order in question was passed by the Chief Commissioner in consultation with the C-cntral Press Advisory Committee, which is an independent body elected by the AU-India Newspaper Editors' Conference and is ."}}, {"text": "AU-India Newspaper Editors' Conference", "label": "ORG", "start_char": 32154, "end_char": 32192, "source": "ner", "metadata": {"in_sentence": "Secretary to the Chief Commissioner, who also states among other things that the order in question was passed by the Chief Commissioner in consultation with the C-cntral Press Advisory Committee, which is an independent body elected by the AU-India Newspaper Editors' Conference and is ."}}, {"text": "Ganpat RJli", "label": "LAWYER", "start_char": 32806, "end_char": 32817, "source": "ner", "metadata": {"in_sentence": "Agent for the petitioners : Ganpat RJli."}}, {"text": "P. A. Mehta", "label": "LAWYER", "start_char": 32846, "end_char": 32857, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: P. A. Mehta.", "canonical_name": "-P. A. Mehta"}}, {"text": "S1", "label": "PROVISION", "start_char": 32865, "end_char": 32867, "source": "regex", "metadata": {"statute": null}}]} {"document_id": "1950_1_621_741_EN", "year": 1950, "text": "S.c.R.\n\nSUPREME COURT REPORTS\n\nPROVINCE OF BOMBAY\n\nti.\n\nKUSALDAS S. ADV ANI AND OTI; IERS\n\n[SHRI fuRILAL KANIA c. J., SAIYID FAZL ALI,\n\nPATANJALI SASTRI, MEHR CHAND MAHAJAN,\n\nMt:KHERJV.A and DAs JJ.]\n\nBombay I.And Requisition Ordinance ( V of 1947), ss. 3, 4, 10, 12-0rder requisitioning Land-Application for writ of certiorari -Order of requisition, whether judicial or quasi-judicial act, or administrative act-Construction of s. 3-Existence of public purpose, whethe1 condition precedent to exercise of power to requisition -Whether collateral fact or compo, site part of power to requisition- Distinction between jujicial or quasi-judicial acts, and administr• tive acts-Guiding principles and tests-Writ of certiorari-Nature and incidents of the writ- -Power of High Court to issu' writ ogainst Provincial Government-Government of India Act, 1935, ss. 176, 306-\"Sue,\" meaning of.\n\nHeld by the Full Court, (KANIA C. J., FAZL Au, PATANJALI SASTRI, MEHR . CHAND MAHAJAN, MuKHERJEA and DAs JJ.).-A writ of ceitiorari lies whenever a body of persons having legal authority to determine questions affecting the rights of subjects and having the duty to act judicially act in exess of their legal authority ; it docs not lie to remove or adjudicate upon an order which is of an administrative or ministerial nature.\n\nSection 3 of the Bombay Land Requisition Ordinance (V of 1947) provided as follows:-\"If in the opinion of the Provincial Government it is necessary or expedient to do so the Provincial Government may, by order in writing requisition any land for any public purpose: Provided that no land used for the purpose of public religious worship or for any purpose which the Provincial Government may specify by notification in the Official\n\nGazette shall be requisitioned under this section.\" The l st respondent wbo was a refugee from Sind got an assignment of the tenancy rights in a flat in Bombay and went into possession of the flat.\n\nA few days later the Government of Bombay issued an order requisitioning the Rat under s. 3 of the abovesaid Ordinance, allotte~ the samo:: to another refugee and issued orders to an Inspector to take possession of the same. On an application under Art. 32 of the Constitution, a writ of certiorari was issued by the Bombay High Court against the Province of Bombay and others and this order was confirmed on appeal as against the Province of Bombay by a Division Bench of the said High Court.\n\nHeld, per KANIA C. J., FAzL Au, PATANJALI SAsTR1 and DAs\n\n]J. (MAHAJAN and MuKHERJEA JJ. dissenting)-that on a proper construction of s. 3 of the Ordinance the decision of the Bombay Government that the property was required for a public\n\nSept. 15.\n\nProvince. of\n\nBombay\n\nK. S. Advtmi\n\nad OtherJ.\n\npurpose was no.~ a judicial or quasi-judicial decision but an ad- 1ninistrative act and the High Court of Bombay had therefore no jurisdiction to issue a writ of ceriiorari in respect of the order of requisition.\n\nPer MAHAJAN and MuKlffiRJEA Jj. (contra).-The Go\\ernn1ent of Bombay is a body of persons having legal authority co d<; terminc questions affecting the rights of subjects and in deciding whether a land was required for a public purpose under s. 3 of the Ordinance it had to :ict judicially. The conditions necessary for the granting of a \\\\'rit of certiorari were accordingly satisfied :ind the. J Jigh Court of. Bo1nhay had power .to issue the \\\\'rit. ~\n\nKANIA C. J.-Though a writ of certiorari 1nay be issued where a body of persons having legal authority to determine questions affectin,;; the rights of subjects anJ haYing a duty to act judicially act in excess of their legal authority, yet merely because an c::xe~ cutive authoritv has to detern1ine certain objective facts affe-.:ting the rights of subjects as a prelin1inary step to the discharge of an executive function it does not follow that it tnust determine those facts judicially. On the contrary, when the executive authority has to forn1 an opinion about an objective matter as a preliminary step to the exercise of a certain power conferred on it, the deter~ mination of the ohjectivc iai.::t anJ the exercise of the power based thereon are alike nlatters of an administrative character and arc not amenable to the \\\\'rit of certiorari.\n\nIt cannot be laid do\\vn broadly that in order that a deter~ mination may be a judicial or quasi-judicial one there must be a proposition and an opposition, or that a /is is necessary, or that it is necessary that there should be right to exan1inc, cross-examine and re-examine witnc-sscs.\n\nThe true test is whether the law, under which the authQrity is making a decision, itself requires a judicial approach.\n\nPrescribed forms are not necessary to make an inquiry judicial, provided in coming to the decision wellrccognised principles of approach are required to be followed.\n\nFAZL ALt J .-The mere fact that au executive authority has: to decide something does not make the decision judicial. It is the manner in which the decision has to be arrived at which makes the difference and the real test is: is there any duty to decide judicially. There is nothing in s. 3 or any other section of the Ordinance in question which imposes expressly or impliedly a dutv on the Provincial Government to decide the existence of a\n\npubli~ purpose judicially or quasi-judicially.\n\nIt is well settled that \\vhen an .'\\.ct or regulation cotnmits to an executive authority the decision o{ what is necessary or expedient and that authority make the decision, it is not comt to the courts to investigate the grounds or the reasonableness of the dcci>ion in the absence of an allegation of bad faith, and the opinion formed by the Provincial Government whether it is necessary or expedient to acquire land, give<: a public purpooe,\n\ncannot therefore be questioned. The same cannot be said with\n\nregard to the decision of the Provincial Government as to the existence of a public purpose which is the foundation of its power and is a condition precedent to its exercise. The determination of the public purpose and the opinion formed as to the necessin\" ot\" expediency of requisition do not form one psychological process but are two distinct and independent steps and if the executive authority requisitions land under s; 3 without . there being a public purpose in existence its action would be a nullity, and the person whose right is affected can go to the proper court ana claim a declaration that his rights cannot be affected. An application for certiorari would not, however, lie in such a case as the requisition of premises under s~ 3 of the Ordinance is a purely administrative act and docs not involve any duty to decide the. existence of a public purpose or any other marw judicially or quasi-judicially.\n\nMAHAJAN J.-The question whether an act is a judidal or a quasi-judicial one or a purely executive act depends on the terms of the particular rule and the nature, scope and effect of the puticular power in cxcccisc of which the act may be done and would therefore depend on the facts and circumstances of each case.\n\nThe question whether a land is required for a public purpose or is being used for public worship involves difficult questions of law and fact seriously affecting the rights of parties.\n\nThe.o; e are not questions for the mere determination of the Government subjectively by its own opinion, but are matters for determination objectively and in a judicial manner, on materials which , the Governmrent have sufficient power to call for under ss; 10 and 12 of the Ordinance after hearing any opposition to its proposal, and the High Court of Bombay had therefore jurisdiction to issue a writ of certiorari.\n\nMU!(HERJEA J.-Undcr s. 3 of the Ordinance, the act of requisitioning land is left to the_ executive discretion of the Provincial Government. But the section makes the existence of a public purpose an cssentiai pre-requisite to the taking of steps by the Provincial Government in the matter of requisitioning any property and under th, e section the essential fact on which the jurisdiction to proceed with the requisition is founded is the existence of a public purpose as an objective fact, and not the subjective opinion of the Provincial Government that such fact exists.\n\nWhether a public purpose exists or not has to be determined judicially as there is a lis or controversy between the interest of the public on the one hand and th:lt of the individual who owns the property on the other hand, and the determination. of the Government was therefore a judicial act; the detemiination was further a collateral matter on which the jurisdiction to requisition was ' founded, and not a part of the executive act of\n\n19.';0\n\nProoiflscd to each othr, there is a lis and prima J11cie, and in the absence of anything in the statute to the contrary, it is the duty of the authority to act judicially and the decision of the authority is a quasijudicial act.\n\nJf a statutory body . has power to do any act which will pre1udicially affect the subject, then although there arc not two par.lies apart from the authority, and .the contest is between the\n\n11uoi:i~ -proposing to do the act and the subject opposing it, the\n\n6ul . clctumination of thc autlu>rity will yet be a quasi-judicial act provided the authority is required by the statute to act judiciaUJ.\n\nA mere provision for an enquiry s a preliminary tp to coming to a decision will not necessarily m?kc the dcc1S1on a quasi-judicial act; for, the purpose of the enquiry ay only be to enable the deciding authority to make up its mmd to do what may be a purely administrative act.\n\nHeld, per\n\nKANI4 C. J.,\n\nFAZL ALI,\n\nPATANJALI SASTRI, and Dit.s JJ.-The powers given to the Provincial Government under ss. IO and 12. of the Ordinance are only enabling and in terms arc not compulsory, and there is , nothing in these sections which makes it incumbent on the Government to act judicially in the maner ot making an order tor requisition under s. 3.\n\nHeld aho, per MAHAJAN, and MuKHERJI:A JJ.-(i) that the immunity granted by s. 306 of the Government of India Act, 1935, related to the Governor and not to the Provincial Government and under the said Act the High Court of Bombay had jurisdiction to issue a writ of certiorari against the Provin, ial Government of Bombay; (ii) that the word \"sue\" in s. 176 of the said Act meant the enforcement of a claim or a civil right by means of legal proceedings and was wide enough to include :rn application for a writ of certiorari.\n\nRex v. Electricity Commissioners ([1924] 1 K. B. 171), Rex v . . London County Council ([1931) 2 K. B. 215), The Queen v. Corporntion of Dublin ([1878] 2 L.R. Ir. 371), Frome United Bmueries v.\n\nBath fustices ( [1926] A.C. 386), Rex v. Archbishop of Canterbury ([1944] l K. B. 281), Rex v. Woodhouse (1906) 2 K. B. 501), King v.\n\nPostmaster General ([1928] 1 K.B. 291), Rex v. Boycott and Others\n\n(fl939] 2 K. B. 651), Franklin v. Minister of Town .and Country Planning ([1948] A. C. 87), In re Banwarilal Roy ( 48 C. W. N. 766), fugilal Kamlapat v'. Collector of Bombay (47 Born. L. R. 1070), Hamabai Framji Petit v. Secretary of State for India (L R. 42 I. A.\n\nH), King. v.\n\nBradford ([1908] 1 K. B. 365), and other cases referred to.\n\nAPPELLATE JuRISDICTION (C1v1L) : Case No. III . of 1949.\n\nAppeal under section 205 of the Government of India Act, 1935, from . the judgment of the Bombay High Court (Chagla C. J. and Tendolkar J.) dated the 4th day of January, 1949, in Appeal No. 65 of 1948.\n\nM. C. Setalvad, Attorney-General for India and\n\nC~ K. Daphtary, Advocate-General of Bombay (G. N. /oslzi and M. M. Desai, with them) for the appellant.\n\nH.- M. Seert1_ai, R. /. Joshi and Ramesluvar Nath, for respondents Nos. 1 (a) and 1 (b).\n\nProvinu of\n\nBombay\n\nK. S. Advani\n\n'Ind Others.\n\nP,.11ince of\n\nB..,.b'!J!\n\nK. S. AJuani\n\nand Others.\n\nKaniaC.J.\n\n1950. September 15. The Court delivered judgment as follows :-\n\nKANIA C. J.-This is an appeal from a judgment of tbe High Court at Bombay and it relates to the power of the High Court to issue a writ of certiormi against the province of Bombay to quash an order to requisition certain premises.\n\nThe material facts, as stated in the judgment of the High Court, are these.\n\nOne Abdul Hamid Ismail was, prior to the 29th of January, 1948, the tenant of the first floor of a building known as \"Paradise\" at Warden Road, Bombay, the landlord of which was one Dr. M. D. Vakil.\n\nOn the 29th January, 1948, Ismail assigned his tenancy to the petitioner and two others, the son and hrother's daughter's son of the petitioner (the respondent). All the three assignees were refugees from Sind.\n\nOn the 4th February, 1948, the petitioner went into possession of the flat.\n\nOn the 26th February, 1948, the Government of Bombay issued an order requisitioning the flat under section 3 of the Bombay Land Requisition Ordinance (V of 1947) which came into force on the 4th December, 1947.\n\nOn the same day Dr. Vakil was informed that the Government had allotted the premises to Mrs. C. Dayaram who was also a refugee from Sind.\n\nFurther orders were issued authorising an Inspector to take possession of the premises.\n\nOn the 4th March, 1948, the petitioner filed a petition for a writ of certiorari and an order under section 45 of the Specific Relief Act.\n\nThe petition was heard by Mr. Justice Bhagwati who, inter alia, granted the writ against the province of Bombay and the Secretary etc. On appeal the appellate Court confirmed the order as regards the issue of the writ of certiorari against the appellant, bnt cancelled the order as regards the other parties.\n\nThe appellant has come on appeal to this Court.\n\nThe learned Attorney-General, on behalf of the appellant, urged the following three points for the Court's consideration. ( 1) (a) t):aving regard to the provisions of Ordinance V of 1947, whether the order in question was quasi-judicial or only administrative ?\n\n( b) Assuming the order to be of a quasi-judicial nature, whether it was a case of want or excess of jurisdiction, or it was only a case of mistake of law ?\n\n(2) Whether a writ of certiorari can be issued against the appellant, which for its actions under the Ordinance, represents the Crown ?\n\n(3) Whether the order in question was made for a public purpose t ·\n\nSection 3, 4, 10 and 12 of the Ordinance which are material for the discussion m this appeal run as follows:\n\n\"3; Requisition of land.-!£ in the opinion of the Provincial Government it is necessary or expedient to do so, the Provincial Government may by order in '\\.vriting requisition any land for any public purpose :\n\nProvided that no land used for the purpose of public religious worship or for any purpose which the\n\nProvincial Government may specify by notification in the Official Gazette shall be requisitioned under this section.\n\n4. Requisition of vacant premises.-(1) If any premises situate in an area specified by the Provincial Government by notification in the Official Gazette are vacant on the date of such notification and whenever any such premises become vacant after such date either by the landlord ceasing to occupy the premises, or by the termination of a tenancy, or by the eviction of a tenant, or by the release of the premises from requisition or otherwise, the landlord of such premises shall give intimation thereof in the prescribed form to an officer authorised in this behalf by the Provincial Gqyernment.\n\n(2) Such intimation shall be given by post within one month of the date of such notification in the case of premises which are vacant on such date, and in other cases within seYen days of the premises being vacant.\n\n(3) A landlord shall not, without the permission of the Provincial Government, let the premises before\n\nPl'<'vinrt oJ\n\nBombay\n\n\"· K. S. Muani\n\ntmd Otnns.\n\nKania C.J.\n\nProiilV4 qf\n\nBom61f1\n\nJr. S .. Advani\n\nmu/ 01/Jtrs.\n\nx..ia c. J.\n\ngiving such intimation an50\n\nProWice of\n\n&mibay\n\nK, S, Adonni\n\nand 01/ws\n\nKaniaC.J.\n\nK. S . .A.dva•ti\n\nand 0Jhers.\n\nKania C. J\n\nsection, it 1s not seriously disputed that the subjective op1111on of the Provincial Government in respect of the ordn of the requisition is not open to challenge by a writ of certiorari. The Ordinance has left that decision to the discretion of the Provincial Government and that opm10n cannot be revised by another authority.\n\nIt appears therefore that except when ma/a fides is clearly proved, that opinion cannot be questioned.\n\nThe next question is whether the requirement \"for any public purpose\" stands on the same footing. On behalf of the appellant, it was argued that the opinion of the Government, that it is necessary or expedient to pass an order of requisition, stands on the same footing as its decision on the public purpose.\n\nIn the alternative it was urged that the two factors, viz., necessity to requisition and decision about public purpose, form one composite opinion and the composite decision is the subjective opinion of the Provincial Govcrm; nent. The third alternative contention was that the decision of the Government about a public purP.ose is a fact which it has to ascertain or decide, and thereafter the order of requisition has to follow. The decision of the Provincial Government as to the public purpose contains no judicial element in it. Just as the Government has to sec that its order of requisition is not made in respect of land which is used for public religious worship or is not in respect of land used for a purpose specified by tht Provincial Government in the Official Gazette, (as mentioned in the proviso to section 3) or that the premises are vacant on the date when the notification is issued (as mentioned in section 4 of the Ordinance), the Government has to decide whether a particular object, for which it is suggested that land should be requisitioned, was a public purpose.\n\nIn my opm10n, this third alternative contention is clearly correct and it is unnecessary therefore to deal with the first two arguments. There appears nothing in the Ordinance to show that in arriving at its decision on this point the Provincial Government has .. to act judicially.\n\nSections 10 and 12, which were relid upon to show that the decision was quasi-judicial, in my\n\nop1ruon, do not support the plea. The enquiries mentioned in those sections are only permissive and the Government is not obliged .to make them. Moreover, they do not relate to the purpose for which the land may be required. . They are in :respect of the condition of the land and such other matters affecting land.\n\nE-fery decision of the Government, followed by the exercise of certain power given to it by any law is not necessarily judicial or quasi-judicial.\n\nThe words of section .. 3 read with the proviso, and the words of section 4 taken along with the scheme of the whole Ordinance, in my opinion, do not import into the decision of the public purpose the judicial element required to make the decision judicial or quasi-judicial. The decision of the Provincial Government about public purpose is therefore an administrative act. If the Government erroneously decides that fact it is open td question in a court of law in a regular, suit, just as its action, on its decision on the facts mentioned in the proviso to section 3 and in. section 4, is open to question in a similar way. The argument that a suit may be infructuous because a notice under section 80 of the Code of Civil Procedure is essential and that remedy is therefore inadequate, is unhelpful.\n\nInconvenience or want of adequate remedy does not create a right to a writ of certiorari.\n\nIt is clear that such writ can be asked for if two conditions are fulfilled. Firstly, the decision of the authority must be judicial or quasi-judicial, and secondly; the challenge must be in respect of the excess or want of . jurisdiction of the deciding authority. Unless both those conditions are fulfilled no application for a writ of certiorari can succeed. As, in my opinion, the decision of the Provincial Govern- . ment about public purpose is not a judicial or quasijudicial decision, there is no scope for an application for a writ ofcertiorari.\n\nHaving regard to my conclusion, it is not necessary to discuss the other points urged by the Attorney- Gcneral against the issue of a writ against the Province of Bombay and. I pronounce no opinion on the same.\n\nProvinu Of\n\nBom611J\n\nY, K. S. Jfd•1J11i\n\n\"n4 Othtr$.\n\nKmnaC.J.\n\nPro&ince qf\n\nBombay\n\nv. t;. S. Ad1•ani\n\nand Others.\n\nKania C.J.\n\nF•tl Ali].\n\n' [1950)\n\nThe result is that the appeal is allowed and the petition dismissed.\n\nThe order of costs made by the lower .:ourts in favour of the respondents is cancelled.\n\nThe respondents will pay the costs throughout.\n\nThe costs of the lower courts will be taxed in favour of the appellant on the terms allowed by those courts in favour of the respondents.\n\nThe respondent will pay the costs of the appeal here. The order of costs against the respondents will be limited to the assets of the deceased come to their hands, as the original applicant has died pending these proceeding<.\n\nFAzL Au J.-This is, in my opinion, quite a simple case, but it has been greatly complicated by the citation of a mass of decisions hy the parties and by an attempt on their part to extract from them some principle to support their respective contentions.\n\nThe principal question to he decided m this appeal is whether a writ of certiorari is available to the respondent to remove or quash an order made by the Government of Bombay requisitioning certain premises under section 3 of Bombay Ordinance No. V of 1947.\n\nIt is well settled that a w.rit of certiorari can be issued only against inferior courts or persons or authorities who are required by law to act judicially or quasi-judicially, in those cases where they act in excess of their legal authority.\n\nSuch a writ is not available to remove or correct executive or administrative acts.\n\nThe first question therefore to be decided in this case is whether the order passed by the Government of Bombay requisitioning the premises in question is a judicial or quasi-judicial order or an executive or administrative order.\n\nWithout going into the numerous cases cited before us, it may be safely laid down that an order will be a judicial or quasi-judicial order if it is made by a court or a judge, or by some person or authoity who is legally bound or authorized to act as if he was a court or a judge. To act as a court or a judge necessarily involves giving an opportunity to the party who is to be affected by an order to make a representation,\n\nmaking some kind of inquiry, hearing and weighing evidence, if any, and considering all the facts and circumstances bearing on the merits of a controversy, before any decision affecting the rights of one or more parties is arrived at.\n\nThe procedure to be followed may not be as elaborate as in a court of law and it may be very summary, but it must contain the essential elements of judicial procedure as indicated by me.\n\nIn some of the cases which were cited before us and which have been discussed in the elaborate -judgments under appeal, an attempt has been made to lay down certain fomulae for determining whether an order is a judicial or quasi-judicial order or not, but in my opinion it is safer to grasp the principle than to depend on the application of any formula or formulae. Again, a large number of cases were cited to show various instances in which a person or persons was or were held to act judicially or quasi-judicially, but those cases, as I have already indica, ted, often obscure what may otherwise be a simple question ; and apart from the fact that this Court is not bound to refer to cases unless it finds it necessary to do so, I fully share the view expressed by the Privy Council in Wijeyesekara v.\n\nFesting ( 1 ) as to why cases decided under different enactments are often not very helpful.\n\nIn that case, which related to a Ceylon Ordinance, one of the provisions of which appears to be similar in certain respects to section 3 of the Ordinance before us, the Privy Council observed :\n\n\"Reference has been made to cases dealing with similar questions arising under statutory enactments in India.\n\nTheir L( 1'hips do not refer to those cases because the wording ot ti•.: enactment is not the same, and their discussion might, to some extent, complicate what appears to their Lordships to be a very simple . \" issue.\n\nHaving made these observations, they proceeded to say:\n\n(1) [1919] A.C. 646.\n\nProvine• of\n\nBombay\n\nK. S. Adt>(Jfli\n\nand Otlvrs.\n\nFaz/ Ali ].\n\nProvince ef\n\n.8m:h(!'\n\n.K'. S.~Adt•ani\n\nand Oth.trt.\n\n\"The whole case is decided, in I he opinion of their Lordships, in the last three lines of section 6 of the Ordinance.\"\n\nIn the present case also, the simplest way to decide it is to try to construe correctly section 3 of the Ordinance under which this case has arisen.\n\nThat section runs as follows :\n\n\"If in the opinion of the Provincial Government it is necessary or expedient to do so, the Provincial Government may by order in writing requisition any land for any public purpose :\n\nProvided that no land used for the purpose of public religious worship or for any purpose which the Provincial Government may specify by notification in the Official (', azette shall be requisitioned under this section.\"\n\nIn construing this section, it is our first duty to enter into the mind of the framers of the Ordinance and look at the whole matter as they must have looked at it. Proceeding in this way, two things seem to me\n\nto be clear : ( 1) The existence of a public purpose is the foundation of the power (or jurisdiction, if that term may appropriately be used with reference to an executive body) of the Provincial Government to requisition premises under sectio11 3, or, as is son1ctimes said,· it is a condition precedent to the exercise of that power. I think that this aspect of the matter has been very luciclly ; ummed up by Bhagwati J. in these words :\n\n\"Unless and until there was a public purpose in existence for the achievement of which they would exercise the power invested in them under section 3, there would be no jurisdiction at all in the Provincial Government to make any order for requisition of bnd.\n\nIt is only when that public purpose existed that the jurisdiaion of the Provincial Government would come to be exercised and then and then only would they be invested with the discretion of deciding whether it is necessary or expedient to requisition any land for the\n\nachievement of that purpose.\n\nIt therefore follows that\n\n...\n\nthe existence of a public purpose is a condition precedent to the exercise of the power of requisitioning invested in the Provincial Government by section 3 of the Ordinance.\n\nThe Provincial Government are not constituted the sole judges of what that public purpose is. The public purpose has to exist before they can exercise any pow:er of requisition of land within the meaning of that section.\"\n\n(2) The framers of the Ordinance never intended to impose any duty on the Provincial Government to determine judicially whether a certain purpose is a public purpose or not.\n\nThere are no express words in section 3 or any other section, to impose such a duty ; nor is there anything to compel us to hold that such a duty is implied.\n\nA reference to section 6 of the Ordinance wherein an inquiry is specifically provided for with a view to assess the compensation and sections 10 and 12 under which the Provincial Government is empowered to obtain certain information and enable its officer to inspect land, show that where an inquiry or anything like an inquiry was intended to be made it was specifically provided for.\n\nThere is however no provision for any inquiry being made for determining the public purpose. Indeed it appears to me that in a large majority of cases no inquiry should be necessary as the existence of a public purpose would be self. evident or obvious, and a mere reference to the purpose will make anyone say : This is of course a public\n\npurpoe. It may be that just in a few exceptional cases, legalistic or some other considerations may make the position obscure, but in an Act or Ordinance which has to provide for prompt action and which in its day-to-day application must be confined to normal and not exceptional cases, the legislature may not attach too much importance to such cases and may credit the Provincial Government with sufficient intelligence to know before acting under the Ordinance whether a certain purpose is a public purpose or not.\n\nHowever that may be, the fact remains that there is nothing in the Ordinance to suggest that the public purpose is to be determined in, a judicial way.\n\nProDinee of\n\nBombay\n\nJC S. Advani\n\ntmd Others.\n\nFaz! Ali].\n\nPr0fline8 of\n\nB .... '!!'\n\nK. S. Adroni\n\nand Othtrs:\n\nFa..,\n\nIr. s. ,14,..;\n\nand Ot,,,, s.\n\nFiul Ali J.\n\nform one psychological process and not two distinct and independent . steps ; and therefore the rule which applies to one applies to the other. The correct position in my opinion is that the determination of the public purpose is the first step so that if the Provincial Government decided that .there is no public purpose the second step need not follow. Besides, whereas the subjective opinion of the Government as to necessity or expediency is not capable of being accurately tested objectively, the existence of a public purpose can be so tested, because there are well-known definitions of public purpose and those definitions can form the common basis for the ascertainment of a public purpose by different individuals. I think that the following dictum of Lord Halsbury in Mayor etc. of Westminster v. London & North Western Ry. Co. ( 1 ), sums\n\nup the legal position correctly :\n\n\"Where the legislature has confided the power to a particular body with a discretion how it is to be used, it is beyond the power of any Court to contest that discretion.\n\nOf course, this assumes that the thing done is the thing which the Legislature has authorised.\"\n\nA number of cases were cited before us by the appellant to show thab in construing certain provisions in other enactments which are drafted in similar language, the courts have held that the existence or otherwise of a public purpose is as completely left to the satisfaction of the executive authority as the question as to whethet it is necessary or expedient to acquire land.\n\nThe leading case in support of this proposition is\n\nWijeyesekara v. Festing (' ). The decision of that cue turned on the construction of sections 4 and 6 of Ceylon Ordinance No. 3 of 1876, which run as follows :\n\n\"4. Whenever it shall :.ppear to the Governor that land in any locality' is likely to be needed for any public purpose, it shall be lawful for the Governor to direct the Surveyor-General or other officer generally or specially authorized by the Governor in this behalf, to examine such land and report whether the same is fitted for such purpose.\n\n(') [191;] A.C. 426. ('l [1919] A.C. 646.\n\n6. The Surveyor-General or other officer as authorized as aforesaid shall then make his report to the Governor, whether the possession of the land is needed for the purposes for which it appeared likely to be needed as aforesaid. And upon the receipt of such report it shall be lawful for the Governor, with the advice of the Executive Council, to direct the Government Agent to take order for the acquisition of the land.\"\n\nIt appears that the procedure prescribed by the Ordinance in the above sections was followed and an order was made by the Governor of Ceylon directing the Government Agent to make an order for the acquisition of certain land for a public purpose, namely, the making of a road.\n\nThe appellant to the Privy Council, who was the person whose land had been acquired, contended that the land was not required for any public purpose and that the direction of the Governor was invalid.\n\nThe Privy Council repelled this contention and held that it was not open to the appellant to contend that the land was not needed for a public purpose.\n\nLord Finlay who delivered the judgment of the Board quoted with approval a previous decision of the Ceylon Court,\n\nGovernment Agent v. Perera ( 1 ), in which the first two paragraphs of the headnote run as follows :\n\n\"In the acquisition of a private land for a public purpose, the Governor is not bound to take the report of the Surveyor-General as to the fitness for such a purpose. His decision on the question whether a land is needed or not for a public purpose is final, and the District Court has no . power to entertain objections to His Excellency's decisions.\" ·\n\nIn my opinion, this case does not go so far as it is supposed to have gone and it is apt to be misunderstood and misapplied.\n\nThe land was acquired there for the purpose of making a road, and it could not have been argued that the making of a road was not a public purpose. The emphasis was on whether the land was\n\n(1) 7 Cey. N.L.R. 313.\n\nP11oince ef\n\nBomba_,\n\nv. r. S. Advani\n\narui Others.\n\nFa:r.l Ali].\n\nProvince Qj\n\nBarubay\n\nJC S. Ad\"\"\"i\n\nond Othtrs.\n\nFazl ,, fJ; ].\n\nactually needed or wanted for a public pu\"PQSC and not on the character of the purpose and their Lordships held that the question whether the land was or was #JOI needed for a pubilc purpose had been left to the satisfaction of the executive authority. It seems to me that if the land had been acquired not for the purpotc of making a road but for a purpose which was evidently not a public purpose at all, the courts could not have held that the Governor's action in acquiring the land for a non-public purpose was not open to challenge.\n\nI do not wish to refer to cases decided under the Land Acquisition Acts, such as Ezra v. Secretary of .State ( 1 ) and others because, aprt from other things,\n\nas was pointed out by the Privy Council in the course of the arguments in Wiieyesekara v. Festing ( ' ) the Indian Land Acquisition Acts expressly provide that the order of the local Government directing the acquisition of land is conclusive.\n\nA third class of cases are those arising under certain war and emergency laws, of which Carltona Ltd. v.\n\nCommissioners of Works and Others(\"\") may be taken to be a specimen. Tht case was decided under regulation 51 (1) of the Defence (General) Regulations which ran as follows :\n\n\"A competent authority, if it appears to that authority to be necessary or expedient so to do in the interests of the public safety, the defence of the realm or the efficient prosecution of the war, or for maintaining supplies and services eS>ential to the life of the community, may take possession of any land, and may give such directions as appear to the competent authority to be necessary or expedient in connection with the taking of possession of that land.\"\n\nIn that case and other similar cases, it was held that the Parliament had completely entrusted to the executive the discretion of deciding when it would be necessary or expedient to requisition land in the (') I.LR. 30 Cal. 36. (') [1943] 2 All E.R. 560.\n\n(') (1919] A.C. 646 ..\n\n.....\n\ninterests of public safety, the defence of the realm, etc., and therefore with that discretion if bona fide exercised no court coul9 interfere.\n\nIt is clear that .the relevant provisions under which those cases have been decided refer to matters such as interest of public safety, defence of the realm, efficient prosecution of the war, etc., of which the executive authorities alone could be the best judges. So far as these matters are concerned, it is difficult to lay down an objective test for determining when the conditions upon which the executive authorities are to act should be deemed to be fulfilled. Thus there is no true analogy between this case and the c:.1se before us.\n\nAn analogy to be complete must rest not 01ily on similarity of language but also on simibrity of objects. li1 certain complicated or border-line cases; the courts mav find it difficult to decide whether ::t certain matter ha.,· been committed to the judgment of the executive authority and made entirely dependent on its satisfaction or whet her it i5 a condition precedent to the exercise of its jurisdiction or power. The line of demarcation between these two matters may appear to be a thin one but it has to he drawn for arriving at a correct coriclusion.\n\nAs I have already stated, a petition for a writ of certiorari can succeed onlv if two conditions are fulfilled : firstly, the order to be quashed is passed by an inferior court or a person or authority exercising a judicial or quasi-judicial function, and secondly, such court or quasi-judicial body has acted in excess of its legal authority.\n\nThe second element 'Would seem to be present in this case on the concurrent findings of the three Judges of the Bombay High Court which are clear and well-reasoned.\n\nBut that does not seem to be enough for the purpose of granting a writ of certiorari to the respondent, since the requisitioning of the premises under section 3 of the Ordinance was a purely administrative act and did not involve any duty to decide the existence of a public purpose or any other matter judicially or quasi-judicially.\n\nThe remedy of the respondent is clearly by action and not by Jsking for a writ of certiorari. In the circumstances, the::\n\nProvince of\n\nB0111bay\n\nK. S. Advani\n\na11J Others.\n\nFazl Ali].\n\nPr•uitUe 11/\n\nBombay\n\nK. S. Adoani\n\nand Others.\n\nPatanJali\n\nSastri].\n\nMahajan].\n\nfurther points raised in the case do not call for decision, and I agree that this appeal should be allowed. It would however be for the Provincial Government to consider whether in view of the findings of the Bombay High Court it is desirable to pursue the matter any further.\n\nPATANJALl SAsTRI J.-I agree that the appeal should be allowed for the reasons indicated in the judgment. of my Lore! and have nothing useful to add.\n\nMEHR CHAND MAHAJAN J.-1 agree with the judgment which my brother Mukherjea proposes to deliver and wish to add some observations of my own out of respect for my Lord the Chief Justice from whose judgment we feel constrained to differ.\n\nThe principal questions raised by this appeal are : ( 1) Whether the order of requisition dated 26th February 1948' made under section 3 of the Bombay Land Requisition Ord!nance (Ordinance No. V of 1947) is a quasi-judicial order ?\n\n(2) Whether a writ of certiorari lies against the Government of Bombay ?\n\n(3) Whether the High Court has jurisdiction to issue a writ of certiorari against the Provincial Government ? ( 4) Whether the requisition of the said flat and its allotment to Mrs. C. Dayaram, a refugee from Sindh, was for a public purpose ?\n\nThe case of the appellant is that the said requisition order is an administrative order, hence no writ of certiorari can issue, that no writ of certiorari lies against the Provincial Government, that the High Court has no juriscliction to issue a writ of certiorari. against the I Provincial Government which in law means and in- \\_ eludes the Governor and that the requisition and the allotment of the said flat to Mrs. C. Dayaram was for a public purpose.\n\nIt is well settled that a writ of certiorari lies if the order complained of is either a judicial or a quasijudicial order but it is not competent if the order is\n\nan administrative or an executive order.\n\nThe circumstances under which a writ of certiorari can be issued are succinctly stated by Atkin L. J. in Rex v. Electricity Commissioners (1 ). in these terms :\n\n\"Whenever any body of prsons having legal authority to determine questions affecting the rights of subjects, and having the duty to act judicially, act in excess of their legal authority, they are subject to the controlling jurisdiction of the King's Bench Division exercised in these writs.\"\n\nIt was said in Rex v. London County Council( 2 ) that four condition~ have to be fulfilled before a writ of certiorari can issue,\n\n(1) there must be a body of persons, (2) it must have legal authority to determine questions affecting the rights of subjects, ( 3) it has the duty laid upon it to act judicially, and ( 4) it acts in excess of Its legal authority.\n\nThe learned trial Judge as well as the Judges of the court of appeal have not in any way departed from these conditions. On the other hand, they have stood firmly by them. Mr. Justice Bhagwati, the learned trial Judge, observed that it is only when these conditions are fulfilled that the body of persons is subject to the controlling jurisdiction of the King's Bench Division exercised in these writs.\n\nIn the court of appeal the learned Chief Justice said that the very basis and foundation of the writ is that the act complained of must be a judicial or a quasi-judicial act.\n\nThe fundamental rules governing the writ were not disputed before us during the course of the arguments.\n\nThe real controversy centred round the de.finitfon of a judicial and a quasi-judicial act as distinguished from an administrative or a purely ministerial act.\n\nThe que-stion is where to draw a line which demarcates the executive or purely administrative act from a quasi-judicial . or a judicial act. The learned Chief Justice in the court below summed up the result of the authorities on the point in these terms :\n\n\"In the .first place, a duty must be cast by the legislature upon the person or persons who is or are\n\n( 1) [1924] 1 K.B. 171 .at 205 (\") [1931] 2 K.B. 215 at 243. 3-6 S.C. Tndia (N.D.) /58\n\nP, o,, ince of Bombay v.\n\nK. S. Advanj and Others.\n\nMahajan].\n\n19'0\n\nProvince of _\n\nBomba, ..\n\nK. S . .Aduani and Others.\n\nMaA.efanJ.\n\nempowered to act to determine or decide some fact or facts.\n\nThere must also be some !is or dispute\n\nrsulting from there being two sides to the question he has to decide.\n\nThere must be a proposal and an opposition. It must ly: necessary that he should have - to weigh the pros and cont before he can come to a conclusion. He would also have to consider facts and circumstances bearing upon the subject.\n\nIn other words, the duty cast must not only be to determine and decide a question, but there must also be a duty to determine or decide that fact judicially.\"\n\nThe statement of the law seems unexceptionable. It is based on high authority. The classic ckfinition of the term \"judicial\" was given by May C. J. in The Q11een\n\nv. The Corporation of D11blin( 1 ), and this definition is in these terms :\n\n\"It is established that the writ of certiorari does not lie to remove an order merely ministerial, such as a warrant. but it lies to remove and adjudicate upon the validity of acts judicial. In this connection the term 'judicial' does not necessarily mean acts of a Judge o~ legal tribunal sitting for the determination of matters of law, but for the purpose of this question a judicial act seems to be an act done by competent authority, upon consideration of facts and circumstances, and imposing liability or affecting the rights of others.\"\n\nThese observations of May C. J. were quoted by Lord Atkinson in Frame United Breweries v. Bath /t1stices( ' ) as 'one of the best definitions of a iudicial act as distinguished from an administrative act.\" They seem to have been approvl!d by Lord Greene M. R. in Rex\n\nv. Archbishop of Canterbt1ry( 8 ). In Rex v. Woodhouse(' ) Lord Fletcher Moulton L. J. observed as follows :\n\n\"The term 'judicial act' is used in contrast with purely ministerial acts. To these latter the process of certiorari does not apply, as for instance to the issue of a warrant to enforce a rate. even though the rate is one which could itself be' questioned by certiorari.\n\nIn short, there must be the exercise of some right or duty in (') (1878) 2 L.R. Tr. 371 (') [19HJ l K.ll. 282.\n\n(') [1926] A.C. 586.\n\n(') (1906] 2 K.B. 501.\n\norder to provide scope for a writ of certiorari at common law.\"\n\nIn /ugilal Kamlapat v. The Collector of Bombay( 1 ) Bhagwati J. after a consideration of a number of English authorities reached the conclusion that the phrase \"judicial act\" must be taken in a very wide sense ncluding many acts that would not ordinarily be termed judicial. The cases cited at the Bar fully bear out this conclusion.\n\nReference may be made to The King v. Postmaster General ( 1), where it was held that the . giving of a certificate by a medical man was of the nature. of a judicial act, and that the certificate was a proper object of proceedings by way of certiorari.\n\nBy the effect of section 1 sub-section (1) (i) of the Workmen's Compensation Act, 1925, and an order extending its provisions to include telegraphists' cramp, a post\n\noffice workman obtaining the certificate of the certifying . surgeon that he was suffering from that complaint\n\nnd was thereby disabled, :was entitled to compensation.\n\nBy section 44, sub-section (3), a medical practitioner 2ppointed by the Secretary of State was given the powers and duties of a certifying surgeon. An or- positions to the circumstances of different ca'c' the exercise of jurisdiction to issue a writ of certiorari varies according to the foot of the Chancellor.\n\nThe question therefore for decision in this case is whether the Government is a body of persons having legal authority to determine questions affecting the rights of subjects, and secondly, to the extent to which it has and in performing that duty has it the duty to act judicially. In my opinion, the position and duties of the Government under the Bombay Lane! Acquisition Ordinance arc such that it satisfies hoth the tests.\n\nIt is a body of persons having legal authority to determine questions affecting the rights of subjects and I\n\n(') (1914) 4R C.W.N. 766.\n\nthink its duty is to act judicially. It cannot arrive at its determination on a mental process of its own.\n\nAn examination of the provisions of this Ordinance shows that before the Government forms the opinion that it is necessary and expedient to requisition any land it has to v1s1ons have been made in it for facilitating them. It seems that a duty is cast on Government before reaching its decision on such important matters to make enquiries and hear persons concerned. Though no express provision exists that objections have to be heard, the power given under section 12 o make enquiries from the person occupying the premises or owning them show that no sooner enquirie! are made all that a person ha§ to say on the matter will be said and heard.\n\n For the reasons given above I cannot accede to the contention of the learned Attorney-General as to .lite . construction of section 3 of the Ordinance when he says that it means that the determination of \"public purpose\" is a matter which rests in the opinion of the Government alone and that the decision of the facts mentioned. in the proviso also depends on that opinion. I cannot also agree in the contention that even if these matters required determination objectivdy, they can be so determined by making administrative enquiries and without hearing persons concerned. In my judgment the learned trial Judge aS' well as the Judges of the Court of appeal reached a correct decision in this ca!C which is a case on the border line and I do not think that there are any substantial grounds for reversing their well considered decision.\n\nAs regarcls the second question, I have no hesitation in holding that a writ of certiorari lies against the Government of Bombay. Section 306, read with section 176 of the Government of India Act, 1935, expressly preserves the right to sue in all cases where such a right could be exercised as against the East India\n\nCompany.\n\nThe learned Attorney-General argued that the section was confined to suits and to actions and did not cover the case of a writ of certiorari. It was said that there is no power to issue a command to the Sovereign.\n\nMy simple answer is that the Provincial Government is not the sovereign and that the Government of India Act expressly says that there is a right to sue the Province. The expression \"sue\" means \"the enforcement of a claim or a civil right by means of legal proceedings.\" When a right is in jeopardy, then ariy proceedings that can be adopted to put it out of jeopardy fall within the expression \"sue\". Any remedy that can be taken to vindicate the right is included within the expression.\n\nA writ of certiorari therefore falls within the expression \"sue\" used in section 176 of the Government of India Act, 1935, and the remedy therefore is within the express terms of the statute. The immunity granted by section 306 is to the Governor and not to the Province.\n\nIt was argued that the word \"Governor\" in the section is synonymous with \"Provincial Government\" by reasoµ of the definition of the phrase \"Provincial Government\" given in section 46 (3) of the General Clauses Act. In my opinion, this definition cannot affect the interpretation of the Government of India Act. In that Act the Provincial Government and the Governor have been used in two different senses and not in one sense.\n\nImmunity from suits is given to the Governor and not to the Provincial Government, though the Governor may be one of the important component parts of the Provincial Government. Reference in this connection was made to the East India Company Act, 1780 (21 Geo. 3, c. vii), and to various statutes which eventually culminated in sections 306 and 176 of the Government of India Act, 1935.\n\nOn the basis of the Act of 1780 it was contended that the High Court had no jurisdiction to issue a writ against the Governor. That statute, however, did not prohibit the issue of a writ against the East India Company. On the , other hand, there are cases which show that such writs were being issued against the East India Company. In my opinion, the\n\nProvince of\n\nBombay\n\nK. S. Advani' and Others.\n\nMahajan J.\n\np, ovince of\n\nBomh~J\n\nK. S. Adrlf.1t1i\n\nand 01M, s.\n\nMahajan J.\n\nmatter has to be of the public also is to my mind immaterial. If there is a duty to decide judicially it would be a judicial act, and it is not necessary that there must be two opposing parties other than the deciding authority appearing in a regular or formal manner.\n\nMy conclusion, therefore, is that on the first point the decision of the High Court is right, and the contentions raised by t):ie learned Attorney-General must fail.\n\nThe question now arises whether the Ordinance has conferred upon the Provincial Government the jurisdiction or authority to decide finally as a part of the requisition proceeding itself whether .any public purpose exists or not.\n\nIf it has, the error, if any, committed by the Provincial Government, may be an error of fact or law, but would not be one of jurisdiction, and whatever other remedy might be open to the aggrieved party, a writ of certiorari would not lie. As has been said already, it is clear from the language of section 3 of the Ordinance that the act of requisition itself, provided the condition precedent is fulfilled, is a pure executive act, in regard to which an untrammelled discretion has been left to the Provincial Government. If the state of fact exists which entitles the Provincial Government to act, the function that the Provincial Government exercises is a purely administrative function, which does not involve performance of any judicial duty. In such circumstance the existence of public purpose is either a matter of personal opinion of the Provincial Government\n\nin which case no question of exerc1smg a judicial function at all arises, or it is wholly independent of and collateral to the executive act and is an objective condition which must be fulfilled before the Provincial Government can take any steps in the matter. As I have stated already, on a proper interpretation of section 3 of the Ordinance, the latter is the proper view to . take.\n\nThis being the position, whether or not a public purpose exists is a preliminary question which is collateral to the merits of the executive act which is to be performed by the Government under section 3 of the Ordinance.\n\nPublic purpose must exist as a fact, and the Provincial Government must satisfy itself as to its existence before it can take any steps in requisitioning property; but it is not for the Provincial Government to decide the matter finally or conclusively, and its decision on this preliminary point would be open to enquiry by superior courts.\n\nThese principles are laid down in Bunbury v. Fuller ( 1 ), Pease v. Chaytor ( 9 ) and Colonial Bank of Australasia v.\n\nWillan ( 8 ). By way of illustration of these principles reference may be made to two well-known English cases.\n\nIn Rex v. Woodhouse( •) there was an application to bring up an order made by Licensing Justices under the Licensing Act referring an application for renewal of a licence to quarter sessions. One of the points . raised in the case was whether or not the Justices were right in deciding that the. applicants were qualified to apply for licence under the provisions of the Beer House Act, 1840, which required that the applicant should be the real resident holder and occupier of the dwelling house in which he should apply to be licensed.\n\nIt was held by the majority of Judges in the Court of Appeal that the fact that the applicants were not the real resident holders of the_ Beer houses excluded them from the class to whom licences, whether absolute or conditional, could be granted and no erroneous decision on this\n\n(1) 9 Ex. Ch. lll.\n\n(3) [1874-] 5 P.C. 417 at p. 422\n\n(2) 3 B. & S. 620.\n\n(4) (1900)12 K.B. 505.\n\nProvinc1 of\n\n.llt>m6ay\n\nv. 1.·. S. Advani\n\nsnd Others.\n\n. Proriince of\n\nBombqy\n\nK. S. Adllani\n\nand OtMrs.\n\nMW.lrajea J.\n\nquestion of fact by the Magistrates could give them jurisdiction .\n\nReference was made by Fletcher Moulton L. J. to certain passages in Bunbury v. Fuller( 1 ) and Pease v.\n\nChaytor ( ) and it was held that if the licensing Magistrates did decide these points of fact, it is the duty of the Court to review their decisions, and if it is erroneous, to quash the licences and references.\n\nThe other case is that of Rex v. Bedford( 3 ), and it arose upon a rule for a certiorari to bring up an order of the Justices authorising the entry upon certain enclosed land for the purpose of taking materials for the repair of cenain roads under sections 53 and 54 of the Highways Act, 1835. Under sections 53 and 54 of the Highways Act, the Justices may license the Surveyor of Highways to take materials for repair of the Highways \"at such time or times as to such Justices may seem proper from the enclosed land of any person .... not being a park.\" On a licence being granted by the justices to the Newton Abbot Rural District Council, authorising them by their Surveyor, to take materials for the repairs of the Highway from a place known as Grange Quarry in the said Parish, a rule was obtained for a writ of certiorari to bring up the order to be quashed, inter alia on the ground that it was made in respect of a land which was a park. It was held that the land was in fact a park, and the Justices cannot give themselves jurisdiction by finding that. it was not a park.\n\nThe question whether the place is a park or not is a matter which is preliminary to exercise of the Justices' jurisdiction, and one which is not for the Justices to determine finally. \"The enquiry is not in the course of exercise of jurisdiction but as a prelimina.ry to it. The case therefore falls within the rule laid\"down in Bunbury v. Fuller (' ) and the Justices' decision in the matter is subject to . \" review.\n\nIt must be admitted that in both these was no dispute that the Justices had\n\n(1) 9 E><. Ch. 111.\n\n(3) [1908) 1 K.B. 3[>5.\n\n(2) 3 B. & S. 620.\n\n(4) 9 Ex. Ch. 111.\n\ncases there to exercise\n\nquasi-judicial powers, and the only question was whether the facts upon which the exercise of jurisdiction was made to depend were preliminar{ matters collateral to the enquiry or were matters to be adjudicated\n\n1 upon as part of the enquiry itself. fo the case before us the act of requisition, as said already, is an executive and not a judicial act, and to this extent therefore there is no similarity between. the present case_ and those referred to above.\n\nBut the principles underlying these authorities can certainly be invoked for our present purpose. The act of requisition being an executive act, the determination of the existence of a public purpose upon which the exercise of powers is dependent is either a part of the executive act itself or is something . collateral to it.\n\nI have attempted to show that it is a thing collateral and preliminary to the exercise of executive authority and not a part of it.\n\nThat being so, the determination of this conateral matter by the executive authority which is, in my op1mon, a judicial function cannot be regarded as final and if the determination is erroneous, it can be corrected and removed by a writ of certiorari.\n\n, It may be stated here that before the learned Judges of the appellate Bench in the High Court no attempt was made on behalf of the Government to establish that the premises in question were requisitioned for any public purpose.\n\nA public purpose involves some benefit to the community as a whole, as opposed to the perso.qal gain or interest of particular individuals.\n\nHousing of refugees may certainly be a public purpose, and under certain circumstances even securing a house for an individual may be in the interests of the community, but it cannot be to the general interest of the community to requisition the property of on!! refugee for the benefit of another refugee.\n\nThe only other question that remains to be considered is whether a writ of certiorari lies against the Provincial Government ?\n\nOn this point the .contentions Attorney-General fall under raised by the learned two heads.\n\nThe first\n\nPrDllina of\n\nBombfJJJ\n\nK. S. Adtani\n\nand Ot/rzn.\n\n!9.'iO\n\nP1o; ina~ ef\n\nBomb~\n\nK. S. Aduuii\n\nand Ol!.1:11.\n\nMukhnj,. ].\n\nbranch of the argument is that the expression \"Provincial Government\" occurring in section 3 of the Ordinance means the same thing as the Governor of the Province.\n\nThis being the position there is complete immunity enjoyed by the Provincial Government in respect of all judicial processes under section 306 (I) of the Constitution Act, and the powers of the High Court itself are restricted and limited in this respect by certain enactments.\n\nThe other branch of the contention is that under section 176 of the Constitution Act, no action of this character could be brought against the Province of Bombay, and in any view the expressions \"sue or be sued\" as usccl in section 176, do not include an application for a writ of certiorari.\n\nAs regards the first branch of the argument. it may be pointed out at the outset that no definition of the term \"Provincial Government\" has been given in the Constitution Act, 1935, Part III of the Act deals with Governors' Provinces.\n\nSection 49 (1) which occurs in this Part provides that \"the executive authority of a Province shall be exercised on behalf of Hi.s Majesty by the Governor, either directly or through officers subordinate to him.\" Section 50 lays down that \"there shall be a Council of Ministers to aid and advise the Governor in the exercise of his functions, except in so far as he is by or under this Act required to exercise his functions or any of them in his discretion.\" Section 51 provides inter alia how the ministers are to be chosen and section 52 deals with the special responsibilities of the Governor: Section 59 (1) provides that \"all executive action of the Government of a Province shall be expressed to be taken in the name of the Governor.\"\n\nThe Governor is thus the executive head of a Province and all executive acts are done in his name.\n\nThis does not mean that Government of a Province 1s vested solely in the Governor, or that the expressions \"Governor\" and \"Provincial Government\" have t11e same meaning and connotation in the Constitution Act.\n\nIt is only a form adopted for purpose of convenience that in a Governor's Province, all acts of the Provincial Government would be done in the name of the Governor, no matter wherever under the Constitution,\n\nthe responsibility might actually lie.\n\nSection 3 ( 43)\n\n(a) of the General Clauses Act (as amended by the Adaptation Order of 1947) which is relied upon in this connection does not in any way affect this position.\n\nIt says that \"as respects anything done or to be done\n\nter the establishment of the Dominion of India,\n\n'Provincial Ckwcmment' shall mean in the Governor's Province the Governor.\" This is a mere description as will be apparent from the fact that under the same dause, the expression \"Provincial Government\" used with reference to a Chief Commissioner's Province means the Central Government.- Section 306 ( 1) of the Constitution Act however is based on an absolutely different principle and it is not concerned with the acts of any Provincial Government no matter in whose name the acts are expressed to be taken.\n\nThe section runs as follows :\n\n\"No proceedings whatsoever shall lie in, and no process whatsoever shall issue from, any court in India . .against the Governor-General, against the Governor\n\n.of a Province, or against the Secretary of State, whether in a personal capacity or otherwise, and, except with the sanction of His Majesty in Council, no proceedings whatsoever shall lie in any court in India against any person, who has been the Governor-General, the Governor of a Province, or the Secretary of State in respect of anything done or omitted to be done by any .of them during his term of office in performance or purported performance of the duties thereof : '\n\nProvided that nothing in this section shall be construed as restricting the right of any person to bring against the Federation, a Province, or the Secretary .of State such proceedings as are mentioned in Chapter III of Part VII of this Act.\"\n\nThe lartguage of the section is perfectly clear and indicates that its whole object is to grant personal\n\nProviNCI oj\n\nBombay\n\nK. S. Mvani\n\nlllld 01rs.\n\nMukherjea J.\n\n1950.\n\nProvinct of\n\nBombay\n\nK. S. Advani\n\nand Otlwrs.\n\nimmunity to the Governor-General, the Secretary of State or the Governor of a Province from all proceedings in or processes from any court in India, both during the term of their office and afterwards.\n\nThe protection is. given in the interests of the administration itself, 'for it would really be productive of disastrous consequences if the Governor-General or the Governor of a Province could be hauled up before any court in India in respect of acts committed by them in their personal capacity or otherwise.\n\nThat this protection is purely personal follows clearly from the latter part of the section which interdicts any proceeding against the Governor- General, the Governor of a Province or the Secretary of State, after they have ceased to be in office, for any act of omission or commission during the term of their office.\n\nThis part of the section would be wholly devoid of any meaning, if the Governor of a Province, is taken to be sonymous with the Provincial Government. The Govefrnor of a Province is certainly a part of the Government of the Province and formally he is the mouthpiece of all executive acts done in the Province, but section 306 (1) does not purport to protect any of the official acts. It grants a personal exemption to the Governor from any judicial processes in India, no matter whether they arise out of official or non-official acts committed by him, and this exemption continues even after he has ceased to be in office, except where His Majesty chooses to relax the rule.\n\nI agree with the learned Judges of the High Court in holding that even the possibility of a misconstruction of this section has been removed by the proviso engrafted on it, which lays down in clear terms tha( the provisions of the section shall not be construed as restricting in any way the right of any person to bring against the Federation, a Province, or the Secretary of State such proceedings as are mentioned in Chapter III of Part VII of the Act.\n\nThe material provision in Chapter III of Part VII of the Act is that contained in. section 176 and I will come to that presently; but before I d~ so, it would\n\nbe convenient to dispose of. the other point raised by the learned Attorney-General in connection with the first branch of his argument. The point raised is that apart from , the protection afforded by section 306 (1) of the Constitution Act there is a limitation on the powers of the High Court, to grant processes against the Provincial Government and we have been referred in this connection to section 1 of the East India Company Act (21 George III, Ch. 17) and certain pro-. visions in the Act of 1823 under which the Supreme Court was established in Bombay.\n\nThis contention again, in my opinion, would be of no avail, if as I have stated above, the Provincial Government is not identifiable with the Governor personally.\n\nIt may be mentioned here that the Supreme Court was established at Fort William in Bengal under the Statute (13 George III, Ch. 63) commonly known as the Regulating Act, and the Charter establishing the Court was issued by King George III on March 26,\n\n1774. It is a historical fact that there was conflict of an unseemly character between the Judges of the Supreme Court and the Executive Government headed by the Governor-General in Council. In view of this conflict an Act was pased in 1781 (21 George III, Ch.\n\n17) section 1 of which provided that the Governor- General in Council in Bengal \"should not be subject to the jurisdiction of the Supreme Court for or by reason of any act or order or any other matter of thing whatsoever counselled or ordeed or done by them in their public capacity only.\" Bombay got its Supreme Court in 1823, under Statute, 3 George IV, Ch. 71, and clause VII laid down \"that it shall be lawful for His Majesty to establish a Supreme Court at Bombay, to be invested with such powers and authorities and privileges, limitations, restrictions and control. ....... as the said Supreme Court of Judicature at Fort William in Bengal by virtue of any law, now in force ...... is invested or subject to.\"\n\nThe Charter expressly provided that \"the Governor and Council at Bombay and the Governor-General and Council of Fort William shall enjoy the same\n\nProoina of\n\nBomb191\n\n11. S. Mvani\n\ntlllt! Others.\n\nMukherj1a J.\n\nv Ji.. S. Moani\n\ntltUl Others.\n\nexemptions and no other from the authority of the Supreme Court to be erected at Bombay as is enjoyed by the said Governor in Council at Fort William from the Judicature of the Supreme Court of Judicature there already established.\" Assuming that these powers and disabilities of the . Supreme Court continued even after the establishment of High Courts by reason of section 9 of the High Courts Act, 1861, and that these. limitations were implicitly recognised in section 106 of the Government of India Act, 1915, and section 223 of the Act of 1935, it is quite clear from the language of the provisions set out above that they granted only a personal exemption to the Governor and Members of the Council. As the Governor in his personal capacity is different from the Provincial Government, these provisions are of no '1-ssistance to the appellant in the present case.\n\nIt would be seen that these exemptive provisions were substantially embodied in section 110 of the Government of India Act, 1915, and were later on placed in a much more comprehensive form in section 306( 1) of the Constitution Act. As the jurisdiction of the old Supreme Court was inherited by the Original Side of the three . Presidency High Courts, section 110 of the Government of India Act, 1915, granted exemption to the Governor-General the Governor and members of the Council from the Original Jurisdiction of High Courts. both civil and criminal, the only exception being when there were charges of treason and felony against these officials.\n\nSection 306(1) of the Act of 1935 is more comprehensive and includes proceedings and pr<; icesses of any kind either civil o.r criminal, and started either in the Original Side of a High Court, or in any other Court in , the mofusil. As there were no members of the Council under the Constitution Act of J935, there is no mention of such members in section 306(1) of the Act.\n\n The first . branCh of the contention advanced by the learned Attorney-General cannot therefore be supported.\n\n' As regards the other branch of the appellant's contention the decision really hinges on the true\n\nconstruction of section 176 of the Constitution Act.\n\nSection 176(1) stands as follows:\n\n\"The Federation may sue or be sued by the name of the Federation of India and a Provincial Government may sue or be sued by the name of the Province, and, without prejudice , to the subsequent provisions of this chapter, may, subject to any provisions which may be made by Act of the Federal or a Provincial Legislature enacted by virtue of powers conferred on that Legislature by this Act, sue or be sued in relation to their respective affairs in the like cases as the Secretary of State in Council might have sued or been sued if this Act had not been passed.\"\n\nThe first part of the sub-section relates to parties and procedure, and lays down in what form a suit is to be instituted against Government in respect to matters relating to the Federation or Provinces of India. The latter part enacts that subject to any statutory provision that might be made, suits WGuld lie against the Provincial Government in the name of the Province, and against the Federal Government in the name of the Federation of India, in relation to their respective affairs, where such suits would have laid against the Secretary of State in Council if the Act of 1935 had not been passed. The present proceeding which. has been started against the Province of Bombay, would therefore be competent if such proceeding could have been instituted against the Secretary of State in Council under the law as it stood prior to the passing of the Constitution Act.\n\nThe right and liability of the Secretary of State for India to sue or •to be sued were created for the first time by section 65 of Act 21 and 22 Victoria, Ch. 106, which was passed in 1858 on the transfer of the Government of India from the East' India Company to the Crown. The section runs as follows :\n\n\"The Secretary of State in Council shall and may sue and be sued as well in India as in England by the name of the Secretary of State in Council as a body corporate, and all persons and bodies politic shall and\n\nProvi'itt1 of\n\nBwibf!!\n\nK. S .. .4dvanf\n\nand Othm.\n\nMukheijea J ..\n\nProvince cf Bombay v.\n\nK. S. Advuni\n\nand Others.\n\nmay have and take the same proceedings legal and equitable of State in Council of India, as against the said company.\"\n\nsuits, remedies and against the Secretary they could have done\n\nThe object of the Act was to transfer to Her Majesty the possession and government of the British territories in India which were then vested in the East India Company in trust for the Crown ; but as the Queen could not be sued in her own court, it was provided that the Secretary of State in Council as a body corporate would have the same rights of suit as the East IndQ, Company had and would be subject to the same liability of being sued as previously attached to the East India Company.\n\nThis provision of the Act of 1858 was reproduced in section 32 of the Government of India Act, 1915, m the foliowing terms :\n\n\"(l) The Secretary oL State in Council may sue and be sued by the name of the Secretary of State in Council as a body corporate.\n\n(2) Every person shall have the same remedies against the Secretary of State in Council as he might have had against the East India Company, if the Government of India Act, 1858, and this Act had not been passed.\"\n\nThe question therefore narrows down to this as to whether an action of the character that has been brought against the Province of Bombay could have been brought against the East India Company prior to 1858.\n\nIn my opinion the answer to this question must be given in the affirmative.\n\nAll the relevant authorities on this point have been very carefully reviewed by the' learned Judges of the Bombay High Court, and I am in entire agreement with the reasons assigned by them in support of their conclusion.\n\nIt is true that the East India Company was invested with powers and functions of a two-fold characr. They had on the one hand powers to carry on trade as merchants; on . the other hand they had delegaterding to learned counsel for the respondents, referred to the act of requisition on! y but not to the purpose of uch requisition. I am unable to accept this line of argument which appears to me to be open to the following several objections :\n\n(i) It overlooks the word \"so\" and gives no meaning to it.\n\n(ii) If that interpretation were correct then the section would have read as follows :\n\n•If in the opinion of the Provincial Government it is necessary or expedient to requisition any land, the Provincial Government may, by an order in writing, requisition any land for a public purpose.\"\n\nSo read, th~ section would mean that the Provincial Government vrold, iri order of sequence, first have to form its opinion as to the necessity or expediency for requisitioning any land without reference 'to any purpose.\n\nQn this interpretation it is clear that the Provincial Government could not act directly upon the opinion .so formed, because the exercise of the Power depended on the eXistence of a public purpose as an objective fact which had yet to be determined. If that were to be so then what was the necessity for the anterior formation of opinion by the Provincial Government?\n\nA formation of opinion as to the necessity or expediency of a purposeless requisitioning would be an entirely useless, incomplete and futile mental exercise, for such formation of opinion would not have in any way helped the Provincial Government in making an order of requisition at .all.\n\n(ii) According to the respondents' interpretation the existence of a public purpose as an objective fact\n\n. had to be determined first before the Provincial Government would form its opinion < as to the necessity or expediency of requisitioning a particular land. This argument amounts to reading the section upside dOllfn .and in fact to recasting the section altogether. If that\n\nwere the true intention of the Governor of Bomb:ly in promulgating this Ordinance, then the section would\n\nhave said-\"If any land is needed for a public purpose and if in the opinion of the Provincial Government it is necessary or expedient to requisition any particular land for that purpose, the Provincial Government may, by an order in writing reqJ.lls1tion\n\nsuch land.\" The section as enacted, however, did not say anything of the kind.\n\n(iv) It is said that this section postulated a public purpose to exist and required the Provincial Government to form its opinion as to the necessity or expediency of requisitioning land for that public purpose. One can only \"rrive at the last mentioned proposition by interpreting the words \"to do so\" in .the way suggested by me and once that interpretation is adopted, the existence of a public purpose as well as the necessity or expediency of requisitioning land must both become the subject-matter of the opinion of the Provincial Government.\n\n( v) If the existence of a public purpose had to be determined as an objective fact and if that determination were liable to the subjected to the scrutiny of the Court in legal proceedings, then such a .procedure would have quite effective! y frustrated the very object set forth in the second preamble by preventing the Provincial Government, by means of protracted legal proceedings, from taking immediate action for making provision for requisition of land and for the continuance of the requisition of land already subject to requisition. In this very case, the order of requisition which had heed made in February, 1948, is stiU in abeyance.\n\n(vi) The result of the interpretation suggested by the respondeIJts would be to hold that the Provincial Government had to determine judicially the existence of a public purpose as an objective fact before it proceeded to form its opinion as to the necessity or expediency of requisitioning any particular land. It is difficult to appreciate how the Provincial Government would have proceeded to decide this issue. To whom would the Provincial Government give notice that it proposed to decide this issue of the existence or otherwise of a\n\nProvince of Bombay v.\n\nK. S. Adt'ani\n\naru/ OtherS.\n\nDas].\n\n19.\\0\n\nProiince of\n\ns ... b'!J ..\n\nJCS. AtJ.-i\n\nimd Othtrs.\n\nDas].\n\npublic purpose?\n\nWho would be interested to deny the existence of such a purpose at that stage? None, for no particular person's land was actually sought to be requisitioned at that stage. Indeed this issue could not arise until a person was actually threatened with a requisition order. An interpretation that leads to such an absurd and anomalous position_ cannot but be rejected.\n\n(vii) If it is contended that the Provincial Government had to decide this issue as and when it sought to requisition any particular land belonging to a particular person, the result will be still more anomalous.\n\nIn that case the Provincial Government would be called upon to decide the self same issue as to the existence of a . public purpose as often and as many times as it, would need any land, for the decision in one case will ' not bind the owner of a different land.\n\nThere would have to be as many decisions as to the existence of a public purpose as there would be number of plots of land to be acquired. Can anything be more absura than this ?\n\n(viii) If the decision on the existence of a public purpose had to be made along with or simultaneously \"With the formation of opinion as to the necessity or\n\nexpediency for requisitioning any particular land then . it must be conceded that the two matters were correlated to each other and then it will be absurd to sug- gest that the intention of the Ordinance was to keep the two component parts in separate water-tight compartments, one being required to be decided as an objective fact and the other being left to tl)e subjective opinion of the Provincial Government. In the absence of specific provision in express language such an anomalous intention cannot be imputed to the legislative authority.\n\nThe objections stated above quite definitely lead me to the conclusion that the interpretation suggested by the respondents cannot be adopted and they also fortify my view that the section must be construed in the manner I have mentioned. So construed, it would reatl as follows:\n\n\"If in the opinion of the Provincial Government it is necessary or expedient to requisition any land for a public purpose, the Provincial Government may, by an order in writing, requisition any land for a public purpose.\"\n\nAf> soon as this construction is reached, there remains, on the authorities . and on principle, no escape from the conclusion that what had been left to the subjective opinion of the Provincial Government was a composite matter, namely, the necessity or expediency for requisitioning land for a public purpose.\n\nThe Provincial Government was authorised to form an opinion on the entire matter and every component part of i~. In short the existence of a public purpose was left as much to the opinion . of the Provincial\n\nGovernmnt as was the necessity or expediency foi: requisitioning any particular land. It seems clear to me that the legislative authority meant, not that there must be a public 'purpose as an objective fact to be determined judicially which determination was to be subject to the scrutiny of the Court but, that the Provincial Government should be of opinion that a public purpose existed for the advancement of which it was necessary or expedient to requisition land. In my opinion, the words \"if in the opinion of the Provincial\n\nGovernment\" . governed both the purpose and the necessity or expediency of making ari order of requisition. The formation of opinion on the entire matter was purely subjective, and the order of requisition was to be founded on this subjective opinion and as such was a purely administrative :ict.\n\nIt will be useful, at this stage, to refer to. some of the judicial decisions which, as I apprehend them, fully support my above conclusions.\n\nIt is well established that if the legislatiire simply confides the power of doing an act to a particular body if in the opinion .of that body it is necessary or expedient to do it, then the act is purely an administrative, i.e., an executive act as opposed to a judicial or quasi-judicial act, and, in the absence of proof of /\n\nPro1ince of\n\nBOTflbay\n\nK. S. Advani\n\na11d.Othm.\n\nDas].\n\nProlliN4 If\n\nB ..... l!ff\n\nDu].\n\nbad faith, the Court has no jurisdiction to interfere with it and certainly not by the high prerogative writ of certiorari.\n\nUsually this discretion is confided by the use of expressions like \"If it appears to,\" \"If in the opinion of\" or \"If so and so is satisfied.\" In Mayor etc. of Westminster v. London and North-\n\nWestern Railway Company ( 1 ) Lord Halsbury L. C. observed:\n\n\"Assuming the thing done to be within the ruscretion of the local authority, no Court has power to interfere with the mode 'in which it has exercised it. Where the Legislature has confided the power to a particular body, with a discretion how it is to be used, it is beyond the power of any Court to contest that discretion. Of course, this assumes that the thing done is the thing which the Legislature has authorised.\"\n\nTo the like effect are the following observations of Batty J. in Balvant Ramchandra Natu v. The Secretary of State(' ) :\n\n\"No doubt when a power has been conferred in unambiguous language by Statute, the Courts cannot interfere with its exercise and substitute their own discretion for that of persons orbodies sekcted by the Legislature for the purpose.\"\n\nSometimes the Legislature may entrust a power to a specified authority to do an act for a certain purpose. Even in such a case, the Legislature may, nevertheless, by appropriate language, leave not only the determination of the necessity or expediency for doing the act but also the determination of the necessity or expediency for doing the . act for that purpoac as a composite matter to the opinion, satisfaction or discretion of that authority. In such a case what is a condition precedent for the doing of the act is not the actual existence of the particular purpose but the opinion of the specified authority that the purpose exists. In other words the authority is also made the sole judge of the existence of the purpose, for otherwise it cannot form its opinion as to the necessity or expediency of doing the act for that purpose.\n\n(') [1905) A.C. +26.\n\n(1) I.L.ll. [1905) Born. 4811, 511!1\n\nIn Wijeyesekera v. Festing( ) the Governor of Ceylon with the advice of his Executive Council made an order under the Acquisition of Land Ordinance, 1876, directing the Government agent to take order for the acquisition, under the provisions of the Ordinance, of part of the appellant's estate for a public purpose, namely, -the making of a road. The whole point in the case was whether the decision of the Governor in Council was conclusive on the point that the land was wanted for a public purpose. The question turned on sections 4 and 6 of the Ordinance (No. 3 of 1876) relevant portions of which provided as follows :\n\n. \"4. Whenever it shall appear to the Governor that land in any locality is likely to be needed for any public purpose, it shall be lawful for the Governor to direct the SurveyofrGeneral or other officer generally or specially authorised by the Governor in this behalf, to examine such land and report whether the same is fitted for such purpose.\n\n6. The Surveyor-General, or other officer so authorised as aforesaid, shall then make his report to the Governor whether the possession of the land is needed for the purposes for which it appeared likely to be needed as aforesaid. And upon receipt of such report it shall be lawful for the Governor, with the advice of the Executive Council, to direct the Government Agent to take order for the acquisition of the land.\"\n\nIn delivering the judgment of the Board Lord Finlay approved of a previous decision of the Supreme Court of Ceylon and observed as follows:\n\n\"It appears to their Lordships that the decision of the Governor that the land is •wanted for public purposes is final, and was intended to be final, and could not be questioned in any Court.\n\nThe nature of the objection is such that it would be obviously unsuitable for the District Court, which is concerned with questions of compensation which would arise if the land is to be taken. But the question might also be raised\n\n(1} (1919] A.C. 646.\n\nProuinct ef\n\nB•mhay\n\nK. S. Aduani\n\nand Other•.\n\nDas],\n\nPrz1int:e of\n\nBombay\n\n~. ;/(, S. Adva11i\n\nmd Othn<.\n\n.Das].\n\nin a preliminary way, as was suggested by Lord W renbury in the course of the argument.\n\nIt might be raised by an application to the Court to stay the further proceedings on the ground that although the Governor in the Executive Council had made the order, it was not a case where the condition precedent of the Ordinance was really fulfilled, namely, that the land was wanted for a public purpose .\n\nIn their Lordships' opinion no such proceeding would be competent in such a case, and the decision of the Governor in Council, making an order under the latter part of s. 6 of the Ordinance, is final and conclusive.\"\n\nHis Lordship concluded- \"When you have an enactment of that kind it shows that it was intended that the decision of the Governor in Executive Council on the point should be binding.\"\n\nThe decision in Point of Ayr Collieries Ltd. v.\n\nUoyd George ( 1 ) which was a case.of requisition of an undertaking turned on reg. 55 ( 4) of the Defence (General) Regulations-the relevant parts of which were as follows :\n\n\"If it appears to a competent authority that m the interests of the public safety, the defence of the realm, or the eflicii=nt prosecution of the war, or for maintaining supplies and services essential to the life of the community, it is necessary to take control on behalf of His Majesty of the whole or any part of .an existing undertaking, and that, for the purpose of exercising such control, it is expedient that the undertaking or part should be carried on in pursuance of an order made under this paragraph, the competent authority may by order authorise any person (hereinafter referred to as an \"authorised controller\") to exercise, with respect to the undertaking or any part thereof specified in the order, such functions of control on behalf of His Majesty as may be provided by the order •••. \"\n\n(1) [1943] 2 All E.R. 546.\n\nAn order under the regulation having been made with respect to the appellant's undertaking, the appellant brought an action impugning it on the ground, inter alia, that there were no adequate grounds upon which the Minister could find, as he stated he had found, namely, that it was necessary to take control in the interests of the public safety, the defence of the realm, the efficient prosecution of the war or for maintaining supplies and services essential to the community. Singleton J. having dismissed the action, the appellant went up to the appeal Court. If the reasonings and the conclusions of the judgments under appeal before us were sound and correct it could well have been held by the Court of Appeal in that case that the regulation postulated the existence of the interests of public safety, etc., which had to be judicially determined as an objective fact and that what had been left to the subjective opinion of the competent authority was only the necessity for taking control of the undertaking. This was, however, repelled and in dismissing the appeal Lord Greene M. R. with whom Goddard and du Parcq L. JJ. concurred observed as follows: ·\n\n\"If one thing js settled beyond the possibility of dispute, it is that, . in construing regulations of this character expressed in this particular form of language, it is for the competent authority, whatever Ministry that may be, to decide as to whether or not a case for the exercise . of the powers has arisen.\n\nIt is for the competent autherity to judge of the adequacy of the evidence before it. It is for the competent authority to judge of the credibility of that evidence.\n\nIt is for the competent authority to judge whether or not it is desirable or necessary to make further investigations before taking action.\n\nIt is for the competent authority to decide whether the situation requires an immediate step, or whether some delay may be allowed for further investigation and perhaps negotiation.\n\nAll these matters are . placed by Parliament in the hands of the Minister in the belief that the Minister will exercise his powers properly, and\n\nProvince ef\n\nRom bay\n\ny IL. S .• .fduoni\n\nand Others.\n\nDa,.].\n\nP1ovince of Bombay v. .K. S . .A.dvani\n\n.and Others.\n\nDas].\n\nin the knowledge that, if he does not do so, he is liable to the criticism of Parliament. One thing is certain, and that is that those matters are not within the competence of this Court.\n\nIt is the competent authority that is selected by Parliament to come to the decision, and if that decision is come to in good faith, this Court has no power to interfer, provided, of course, that the action is one which is within the four corners of the authority delegated to the Minister.\"\n\nThere is no substantial difference in the language of reg. 55(4) and that of the Bombay Ordinance now before us if it is properly construed and read in the way I have indicated above .. Even if it were possible, on an overmeticulous analysis, to detect any such difference, the position is put beyond doubt in the decision of the English Court of Appeal in Carltona Ltd. v. Commissioners of Works and Others( 1 ). The decision turned on reg. 51 (l) of the Defence (General) Regulations which was in the following terms:\n\n\"A competent authority, if it appears to that authority to be necessary or expedient so to do in the interests of the public safety, the defence of the realm or the efficient prosecution of the war, or for maintaining supplies and services essential to the life of the community, may take possession of any land, and may give such directions as appear to the competent authority to be necessary or expedient in connection with the taking of possession of that land.\"\n\nThere is no substantial difference at all between the language of this regulation and section 3 of the Bombay Ordinance as construed above. If the reasonings of Chagla C. J. and Tendolkar J. were correct, the words \"so to do\" in the above regulation would refer only to the act of taking of possession, for, according to them, the interests of the public safety etc. do not describe the nature or character of that act but constitute the purpose for which the competent authority was to do the act of taking possession.\n\nOn that line of reasoning the regulation could be equally said to postulate\n\n(') [1943] 2 A.E.R. 560.\n\nthe existence of the interests of the public safety etc. as conditions precedent to the exercise of the power and it could be said that the fulfilment of those conditions precedent had to , be determined quasi-judicially so as to be subject to the scrutiny and interference of the Coon. All this line of reasoning was rejected by Lord Greene M. R. with the concurrence of Goddard and du Parcq L.. JJ. in the following words:\n\n''The last point that was taken was to this effect, that the circumstances were such that, if the requisitioning authorities had brought their minds to bear on the matter, they could not possibly have come to the concliision to which they did come; That argument is one which, in the absence of an allegation of bad faith -and I may say that there is no such allegation here -is not open to this Court.\n\nIt has been decided that, where a regulation of this kind commits to an executive authority the decision of what is necessary or ex- ' pedient and that authority makes the decision, it is not competent to the Courts to investigate the grounds or the reasonableness of the decision in the absence of an allegation of bad faith. If it were not so, it would mean that the Courts would be made responsible for carrying on the executive Government of thiscountry on these important matters. Parliament, which authorises this regulation, commits to the executive the discretion to decide and with that discretion if bona fide exercised no Court can interlere. All that the Court can do is to see that the power which it is claimed to exercise is one . which falls within the four corners of the powers given by the Legislature and to see that those powers are exercised in good faith.\n\nApart from that, the Courts have no power at all to inquire into the reasonableness. the policy, the sense or any other aspect of the transaction.\"\n\nVedlapatla Suryanarayana v. Province of MadraJ(1) is a Full Bench decision of the Madras High Court.\n\nIt discussed section 6 of the Land Acquisition Act and held that the decision of the Provincial Government\n\n(1) ~-L-R. [1946] Mad. 153; A.I.R. [1945] Mad. 394.\n\nl'rovince o./\n\nBombay\n\n/(. S. Moani\n\nmid Others.\n\nDas].\n\nl9jQ\n\nProlJi, ftCe f\n\nBomia;·\n\nK. S. Ad11ani\n\nand Othe, s.\n\nDos}.\n\nthat the land was required for a public purpose was final.\n\nRobinson v. Minister ning( 1 ) is instructive. and Country Planning that case.\n\nThe relevant Act were as follows:\n\nof Town and Country Plan- The provisions of the Town Act, 1944, were considered in portions of section 1 of that\n\n\"Where the Minister of Town and Country Planning (in this Act referred to as the Minister) is satisfied that it is requisite, for the purpose of dealing satisfactorily with extensive war damage in the area of a local planning authority, that a part or parts of their area, consisting of land shown to his satisfaction to have sustained war damage or of such land together with other land contiguous or adjacent thereto, should be laid \\mt afresh an- longed default in doing anything required of him by or under this Act.\"\n\nCouid anything be more objective than the requirements of public interest or the wilful and unreasonably prolonged default? And yet in construing the section their Lordships of the Privy Council observed :\n\n\"Their Lordships are unable to see that there is anything in the language of the sub-section or in the\n\n(1) (19-!8) L.R. 76 I.A. 57; A.I.R. 1949 P.C. 136. 7-6 S. C. India (N.D.)/58\n\nPro; ince of\n\nBombay v.\n\nK. S. Advani\n\nand Others.\n\nDas].\n\n19.iO\n\nPrmilfCe •f\n\nBombay\n\nK. S. ~Jl'Mli\n\nand Others.\n\nDas].\n\nsubject-matter to which it relates on which to found the suggestion that the opinion of the Government is to be subject to objective tests.\n\nIn terms the relevant matter is the opinion of the Government-not the grounds on which the opinion is based.\n\nThe language leaves no room for the relevance of a judicial examination as to the sufficiency of the grounds on which the Government acted in forming an opinion.\n\nFurther, the question on which the opinion of the Government is relevant is not whether a default has been wilful and unreasonably prolonged but whether there has been a wilful and unreasonably prolonged default. On that point the opinion is the determining matter, and-if it is not for good cause displaced as a relevant opinionit is conclusive.\"\n\nThe recent case of A. C. Mohamed v. Sailendra Natk Mitra(') may also be referred to. It was concerned with an order of requisition of certain premises exceptthe ground floor made under section 3(1) of the West Bengal Requisition and Control (Temporary Provisions) Act, 1947, which runs as follows:\n\n\"Whenever it appears to the Provincial Government that any premises in any locality are needed or are likely to be needed for any public purpose, it may, by order in writing, requisition such premises.\n\nProvided that no premises exclusively used for the purpose of religious worship shall be requisitioned under this section.-\"\n\nI find no difference between the language of thi• section and that of section 3 of the Bombay Ordinance as construed by me. It is quite clear that what was left to the opinion of the Provincial Government was not the need of the premises simpliciter but the need of any premises for a public purpose as a composite matter. If the present arguments were sound, it could be held that the section postulated the existence of a public purpose . and that what was left to the opinion of the Provincial Government was the need , of the premises for that public purpose. It was, howe\\er, held by a Division Bench of the Calcutta High Court\n\n(') (1950) 54 C. W. N. 652.\n\n-and I think quite rightly-that it sufficed for the exercise of the power that the local Government was satisfied as to the existence of the condition precedent to the exercise of its powers.\n\nTo summarise: It is abundantly clear from the authorities cited above that questions of fact such as the existence of a public purpose or the interest of the public safety or the defence of the realm or the efficient prosecution of the war, or the maintenance of essential supplies and the like may well be and, indeed, are often left to th~ subjective opinion or satisfaction of the executive authority.\n\nMerely because such a matter involves a question of fact it does not follow at all that it must always, and irrespective of the language of the particuiar enactment, be determined judicially as an objective fact.\n\nWhen the Legislature leaves it to an executive authority to form an opinicn on or to be satisfied about such a matter as a condition for the exercise of any power conferred on it, and to act upon such opinion, what is condition precedent is, not the actual existence of the matter but, the subjective opinion or satisfaction of the executive authority that it exists. The cases referred to above, clearly establish this much that when te Legislature leaves it to the opinion or, satisfaction of the executive authority as to whether it is necessary or expedient to requisition any land for a . public purpose the executive authority is constituted the sole judge of the composite matter, that is to say of the existence of the public purpose as well as the necessity or expediency for requisitioning the land for that public purpose, call it a condition precedent or an objective fact or what you will.\n\nOn a proper construction of section 3 of the Bombay Ordinance (No. V of 1947) there can be no doubt that that section left it to the Provincial Government to form its own opinion on the entire •matter, namely, whether it was necessary or expedient to requisition any land for a public purpose and to ct upon that opinion.\n\nSo construed, the formation of opinion on the whole matter and the act founded thereon was nothing but a purely administrative, (i.e., executive)\n\nProlfince of\n\nBombay v.\n\nK. ~· Advani\n\nand Othn-s.\n\nv .. 7.\n\nProDince of\n\nBombay\n\nIC S. Adfani\n\nad 01/rns.\n\nDas].\n\nact. H the acts were . done in good faith and within the four corners of the Ordinance, the Court cannot interfere with it in any proceeding and far less by the prerogative writs of certiorari or prohibition.\n\nIf there be any Ji.ardship the appeal of the subject must be to the Legislature and not to the Court. The first and the major head of the arguments advanced on behalf of the respondents must, therefore, fail.\n\nIt will be convenient to dispose of at once two 'anci11ary points. In the petition a bald suggestion was\n\nmade, verified only as true to information and belief and unsupported by any legal evidence, that the Provincial Government had made the order ma/a fide and for a collateral purpose. The petitioner gave evidence in Court.\n\nThere is nothing in the evidence which may support any pica of bad faith on the part of the P.rovincial Government or its officers.\n\nAll that was said was that Mrs. C.\n\nDayaram to whom the requisitioned premises had been allotted was the wife of an advocate from Karachi, and was a refugee and that the petitioner did not know whether her husband had also migrated from Karachi.\n\nAt an adjourned hearing tlie question was put as to whether Mrs. li>ayar:llll was concerned in any manner whatever with the administration of Government of Bombav or was a public servant. The purpose of the quetion was perhaps to establish that she was in a position to influence the Government officers. The petitioner in fairness replied that he was not aware if she were. In the evidence there is nothing from which it can be t; lken as proved that the Provincial Government and its officers had acted in bad faith. Sec.ondly, it was suggested that the Provincial Government had not acted within the four corners of the Ordinance in that, on its own sho\"l(l'ing, there was no public purpose at all for which the order was made. Bhagwati J. expressed the view that the requisitioning of a .Bat for a particular or individual refugee was not a public purpose, for there was no question of serving the general interests of the community. On appeal Chagla C. J. disagreed with the above view. .In his opinion the housing of a\n\nrefugee might certainly be a public purpose, for securing a house for . an individual refugee might itself confer a benefit on the community as a whole. In this opinion the learned Chief Justice was manifestly right.\n\nBut the learned Chief Justice went on to say that choosing one refugee as against another without any ostensible cause would not constitute a public purpose for which the flat in question could be requisitioned.\n\nThis conclusion, with great respect to the learned Chief Justice, appears to be founded on a slight confusion of ideas.\n\nIt has to be remembered that this was not a solitary order of requisition made by the Government for the public purpose of housing refugees.\n\nThe petitioner's Solicitors' letter dated February 27, 1948, clearly stated that there were \"similar orders\" issued by the Government.\n\nThe impugned order itself shows ex f acie that the order was made generally for \"public purpose housing.\" It was not in terms made for the benefit of any particular individual refugee.\n\nThe allotment of the flat to Mrs. C. Dayaram was the next step and as such the allotment of the flat already requisitioned to a particular refugee cannot possibly vitiate the preceding order of requisition.\n\nTo say that seeing that the allotment was made to her, the order of requisition must have been made in her interest is to act on suspicion which is not permissible.\n\nThe flat had to be allotted to a refugee for purposes of his or her housing. The fact that the petitioner himself was a refugee has been stressed before us and it has been said that it w:ts a novel way of solving . the refugee problem by ousting one refugee and putting in another.\n\nThere is no evidence as to the relative circumstances of the petitioner and Mrs. C. Dayaram. For all we know she may have been a more deserving person whose needs were more urgent than those of the petitioner. The point is that it lies heavily on the person who challenges the bona fides of a public authority or who contends that the authority had acted outside its powers to establish his case on cogent legal evidence. He cannot succeed by leaving the matter in\n\nPtovince ef\n\nBombay v.\n\nK. S. Advani and OtMrs.\n\nDas].\n\n19-'lO\n\nPrnii11t:1 of\n\nBomba;·\n\nK. S . .A.dvani\n\nand Ot!urs.\n\nDas].\n\nthe air and to the ingenuity of his counsel in creating an atmosphere of mere suspicion, which falls far short of legal proof.\n\nI now pass on to the second head of argument which is based on the assumption that the existence of a public purpose had not been left to the subjective opinion of the Provincial Government but was an objective fact which was a condition precedent to the exercise of the power of requisition.\n\nWhat consequences follow from this assumption? The contention of the respondents is that the fulfilment of this condition as an objective fact had to be determined by the Provincial Government judicially and that being thus charged with a quasi-judicial function the Provincial Government became amenable to the high prerogative writ of certiorari in case it acted wid1out jurisdiction or in excess of it or in violation of the principles of natural justice.\n\nThe question, therefore, arises as to what are the tests for ascertaining whether the act of a statutory body is a quasi-judicial act or an administrative act.\n\nAs to what is a quasi-judicial act there have heen many judicial pronouncements. May C. J. in Queen\n\nv. Dubline Corporation(•) described a quas;-judicial act as follows :\n\n\"In this connection the term judicial cloes not ' neceosarily mean acts of a Judge or legaltribun-;; l sitting for the determination of matters of low, hut for purpose of this question, a judicial act seems to be an act done by competent authority upon considera- : tion of facts and circumstances and imposing liabilit\"y l or affecting the rights.\n\nAnd if there be a body em-, powered by law to enquire into facts, make esilpates I to impose a rate on a district, it would seem to me 1 that the acts of such a body involving such consequ- ' ence would be judicial acts.\" ----- ~------\n\n- -· Lord Atkinson in Frome Unitt:d Breweries v.\n\nBath f1Htice1( ') approved of this definition as one of the best definitions. The definition that now holds the (') (1878) 2 !r. R. 371. (') [1926] A.C. •, s6.\n\nfield is that of Atkin L. J. as he then was, in Rex\n\nv. Electricity Commissioners (1). lt runs as follows: \"Whenever any body of persons having legal authority to determine questions affecting the rights of subjects, and having the duty to act judicially act in excess of their legal authority they are subject to the controlling jurisdiction of the King's Bench Division exercised in these writs.\"\n\nThis definition was accepted as correct in Rex v.\n\nLondon County Council(') and by many learned Judges in subsequent cases including the latest decision of the Privy Council in Nakkuda Ali v. M. F. De S. Jayaratne (').\n\nIn Banwarilal's case(') I had occasion to analyse the essential characteristics of a quasi-judicial act as opposed to an administrative act. I stand by what I said on this point on that occasion. As I pointed out there, the two kinds of acts have many common features. Thus a person entrusted to do an administrative act has often to determine questions of fact to enable him to exercise his power. He has to consider facts and circumstances and to weigh pros and cons in his mind before he makes up his mind to exercise his power just as a person exercising a judicial or quasi-judicial function has to do. Both have to act in good faith.\n\nA good and valid administrative or executive act binds the subject and affects his rights or imposes liability on him just as effectively as a quasi-judicial act does. The exercise of an administrative or executive act may well be and is frequently made dependent by the Legislature upon a condition or contingency which may involve a question of fact, but the question of fulfilment of which may,. nevertheless, be left to the subjective opinion or satisfaction of the executive authority, as was done in the several Ordinances, regulations and enactments considered and construed in the several cases referred to above.\n\nThe first two items of the definition given by Atkin L. J. may be equally applicable to an\n\n(!) [19•4] 1 K.B. 171.\n\n(2) [193!J 2 K.B 215.\n\n\\~) \\\\%~\\ !>~ Cl.W .11. ~~~.\n\n14) (1943) 48 0 W.N. 766 at\n\npp. 799-801,\n\nProvince of\n\nBo1nbay\n\nK. S. Advani\n\nand Others\n\nDasJ.\n\nProvince of Bombay v.\n\nK. 8. Advani\n\nand Others.\n\nDas J.\n\nadministrative act. The real test which distinguishes a quasi-judicial act from an administrative act is the third item in Atkin L. J .'s definition, namely, the duty to act judicially. As was said by Lord Hewart C. J. in R. v. Legislative Committee of the Church Assembly('):\n\n\"In order that a body may satisfy the required test it is not enough that it should have legal authority to determine questions affecting the rights of subjects; there must be superadded to that characteristic the further characteristic that the body has the duty to act judicially.\"\n\nThe above passage was quoted with approval by Lord Radcliffe in delivering the judgment of the Privy Council in N akkuda Ali's case ('). Therefore, in considering whether a particular statutory authority is a quasi-judicial body or a mere administrative body it has to be ascertained whether the statutory authority has the duty to act judicially. When and under what circumstances then can a statutory body be said to be under a duty to act judicially?\n\nAn examination of the decided cases shows that in many of them where the statutory bodies were held to be quasi-judicial bodies and their decisions were regarded as quasi-judicial acts there were some parties making a claim under the statute and some parties opposing such claim and the statutory authority was empowered to adjudicate upon the matters in issue between the parties and to grant or refuse the claim.\n\nThus in Th~ Queen v_. The Local Government Board (') the contestmg parties were the County Council of Wexford on one side and Webster & Leary on the other side and the Local Government Board was the statutory authority to decide whether the latter were entitled to higher salary. In Rex v. Woodhouse (') the contest was between the applicants for renewal of licence and certain brewers and the Justices of Leeds were to decide whether the licence should or should not be renewed.\n\nReference may also be made to the cases of Rex v. Post-\n\n(1) [1928) 1 K.B. 411 at p. 415. (B) (1902) L. R. 2 Ir. 349.\n\n(2) (1950) 54 C.W.N. 883.\n\n(4) [1906) 2 K.B. bOl.\n\nmaster General (1), Rex v. London County Council (2) and Rex v. Hendon District Council('). Even in Rex v.\n\nBoycott (') it may be said that the Statute there contemplated a contest between the Local Education Society and the boy who was alleged to be imbecile and whose father was entitled to notice under the regulations before a certificate was issued against the boy. It is not necessary to multiply instances. The point to note is that in each of these cases there was a lis-a proposition and an opposition-and the statutory authority was authorised to decide the question and in each of these cases the decision was regarded as a quasi-judicial decision.\n\nIndeed in some of the cases the necessity of a lis between two or more parties has been referred to or even insisted upon. Thus in Errington & others v. Minister of Health (5), Maugham L.J., as he then was, said:\n\n\" In determining whether the position of the Minister is that which I have described as being quasi-judicial, I think it is necessary to appreciate that under a clearance area scheme, to which objections are made by the owners of the property in the area, there is a true contest as between the owners of the property and the local authority ; in other words, there are two sides as between whom the Minister has to come to a determination after consideration\".\n\nThe following passage from the judgment of Greer L.J. in that case quoted with approval by Swift J. in Frost & others v. 1vlinister of Health(') takes the matter a little further in that line :\n\n\" In so far as the Minister deals with the matter of confirmation of a closing order in the absence of objection by the owners, it is clear to me, and I think to my brethren, that he would be acting in a ministerial or administrative capacity, and would be entitled to make such enquiries as he thinks necessary to enable him to make up his mind whether it was in the public interest that order should be made. But the position, in\n\n(!) [1928] I K.B. 291.\n\n(2) [1931] 2 K.B. 215.\n\n\\~\\ ll9~U1i1\\., B.696.\n\n(4) [1939] 2 K. B. 651.\n\n15) [l 939] 2 K.B. 249, 271.\n\n(6) l1935] l K.B. 286, pp. 292-S.\n\nProvince of Bombay v.\n\nK. S Advani\n\naiid Others.\n\nDasJ.\n\nProvince of Bombay v.\n\nK. S. Advani\n\na.nd Others.\n\nDasJ.\n\nmy judgment, is different where objections are taken by those interested in the properties which will be affected by the order if confirmed and carried out. It seems to me that in deciding whether a closing order be made in spite of the objections which have been raised by the owners, it seems to me reasonable that the Minister should be regarded as exercising quasi judicial functions\".\n\nSwift J. in accepting the above statement added:\n\n\"I accept that from the moment an objection is made the Minister is exercising quasi-judicial functions, but it seems to me to be clearly recognised by the Court of Appeal that up to the time of objection being made the Minister acts in an administrative, and not a judicial, capacity.\"\n\nUnder the Housing Act, 1930, the local authority submits a clearing order to the Minister. If no objection is raised by the owners of the property the Minister considers the matter and either confirms or modifies the order of the local authority. In the absence of objection the Minister, according to those two decisions, acts in an administrative capacity.\n\nWhy? Because there is no lis in the sense of two opposing parties. There is only a proposal by the local authority. But if objection is raised by the owner, the Minister, according to these cases, in deciding the matter, acts judicially. Why? Because there is a lis between two contending parties, namely, the local authority and the owner which has to be decided by the Minister. It is true that in Franklin v. Minister of Town and Country Planning(') the House of Lords held that under the Statute the Minister at no stage acted judicially, and, therefore, the actual decisions in these two cases cannot be sustained. But, nevertheless, I have quoted the above passages only to illustrate the reasons and the principle on which the act of a statutory body empowered to decide disputes betweed two contesting parties was held to be quasijudicial.\n\nThe Report of the Ministers' Powers Committee in defining the words 'judicial' and\n\n(I) [1947) 2 A.E.R. 289; [1948) A.O. 87; 11947) 176 L.T. 312, 316, -..\n\n'quasi-judicial' which definition was accepted by Scott L. J. as correct in Cooper v. Wilson (')stated:\n\n\"A true judicial decision pre-supposes an existing dispute between two or more parties and then involves four requisites ...... A quasi-judicial decision equally pre-supposes an existing dispute between two or more parties and involves ...... \"\n\nThis definition of a quasi.judicial decision clearly suggests that there must be two or more contesting parties and an outside authority to decide those disputes. The fo!lo\\ving observations of my Lord the\n\nChief Justice then sitting as a Single Judge in the Bombay High Court, in Kai Khushroo Sorabjee v. The Commissioner of Police(') in which an order made under the Defence of India Rules was under consideration, are relevant on this point :\n\n\"It appears to me that unless the authority in-1 vested with the power to pass an order had to act judicially, i.e., to weigh a question from two sides and decide on the matter, no question of quasi-judicial act can arise. The two sides cannot include himself as he is the deciding authority.\"\n\nIn Franklin v. Minister of Town and Country Planning('), while it was before the Appeal Court, Lord Oaksey L.J. said :\n\n\" In all the authorities which have been referred to as showing that at an enquiry there must be an examination of the case of both sides, there was what has been called a lis : that is to say, there were two parties contesting and the Minister as an outside authority, was deciding the case.\"\n\nIn the very recent case of Patri Shaw v. R.N. Roy(') a Division Bench of the Calcutta High Court dissented from this very Bombay case (5) which is now before us and emphasised the necessity of a lis between two parties for making the decision of the authority a quasi-judicial act.\n\nil) [1937] 2 K.TI. 30J, 340.\n\n12) (1947) Born. L.R. 717; A.LR. 1947 Bom. Wl.\n\n(~I (J0i71 176 L.T. srn, 316. w (1950) 54 o.W.N. Bf5, (5\\ (1949) 51 Bom. L.R, 342.\n\nl950\n\nProvince of Bombay\n\nv K. S. Advani\n\nand Others.\n\nDasJ.\n\nProvince of Bombay v.\n\nK. 8. Advani\n\nand Others.\n\nDas J.\n\nOn the other hand there are many cases where the act of a statutory authority has been accepted as a quasi-judicial act although there were not two opposing parties over whose disputes the authority was to sit in judgment. In those cases it was the authority who made a proposal and another person objected to it and the authority itself was entrusted to hear the objection and give a decision on it.\n\nIn short the authority which was the proposer was the judge in its own cause. The only ground on which the decision of such an authority, placed in such situation as I have just mentioned, was regarded as a quasi judicial act was that the authority was empowered to affect the rights of or impose a liability on others and was required by the very law which constituted it to act judicially.\n\nTo take a few illustrative cases: The Queen v. Corporation of Dublin(') was the case before May C. J. for quashing a borough rate by certiorari. Here the contest was between the\n\nCorporation on one side and the ratepayers on the other. It was the Corporation which, under the Act, was empowered, after consideration of facts and circumstances, to impose a borough rate, a liability of the ratepayers. The provisions of the relevant statutes are not set out in the report and it is difficult to say precisely what duties had been imposed on the Corporation before it could impose liability on ratepayers.\n\nI, therefore, pass on to the case of Rex v. Electricity Commissioners (') in which we find the celebrated definition of Atkin L. J. It will be noticed that in this case also there were not two parties apart from the Commissioners. Indeed the Commissioners themselves proposed the scheme and the companies took objection to it an.d the Commissioners after holding the local enquiry and hearing the objections had to make the final order. It will also be noticed that the local enquiry was to be held by the Commissioners themselves.\n\nThe only principle on which this decision rests is that the Commissioners had power to do something which affected the rights of others and that they were required\n\n(1) (1878) 2 L.R. Ir. 371.\n\n(21 [1924] I K.B. 171.\n\n,.,\n\n1950 by the statute itself to hold an enquiry, hear objections and evidence in support thereof and make their final decision after considering all facts and circum- Province of Bombay stances. Take the case of Estate and Trust Agencies v.\n\n(1927) Ltd. v. Singapore Improvement Trust('). The K, s. Advani contest was between the appellant as owner and the and Othm. respondent Trust as the authority making an adverse declaration with respect to the appellant's building.\n\nBy the very provisions of the statute the respondent Trust was made the judge in its own cause. It was, however, directed to entertain objections, hear evidence and then decide the issue. It is this last mentioned circumstance on which this decision rests.\n\nIt is needless to multiply instances, for, I think, these cases sufficiently illustrate the position.\n\nWhat are the principles to be deduced from the two lines of cases I have referred to' The principles, as I apprehend them, are :\n\n(i) that if a statute empowers an authority, not being a Court in the ordinary sense, to decide disputes arising out of a claim made by one party under the statute which claim is opposed by another party and to determine the respective rights of the contesting parties who are opposed to each other, there is a lis and prima facie and in the absence of anything in the statute to the contrary it is the duty of the authority to act judicially and the decision of the authority is a quasi-judicial act; and\n\n(ii) that if a statutory authority has power to do any act which will prejudicially affect the subject, then, although there are not two parties apart from the authority and the contest is between the authority proposing to do the act and the subject opposing it, the final determination of the authority will yet be a quasi. judicial act provided the authority is required by the statute to act judicially.\n\nIn other words, while the presence of two parties besides the deciding authority will Prima jacie and in the absence of any other factor impose upon the\n\nill [1937] 3 A, El,~. ~'!1 \\l'.C.J.\n\nDasJ.\n\nProvine~ of Bombay v.\n\nK. 8. Advani\n\nand Others.\n\nDasJ.\n\nauthority the duty to act judicially, the absence of two such parties is not decisive in taking the act of the authority out of the category of quasi-judicial act if the authority is nevertheless required by the statute to act judicially.\n\nMr. Seervai relied on two cases, namely, Rex v.\n\nHendon Rural District Council(') and Rex v. London County Council(') as '.establishing that although the statute itself may not require an inquiry yet the decision of the authority may be a quasi-judicial act. In the second case although there were no express provisions for inquiry in the statute itself, the rules framed by the Theatre and Music Hall Committee had made elaborate provisions for notice, advertisement, opposition and hearing in public and liberty to examine and cross-examine witnesses.\n\nIn the first case notice was actually given, objections were invited and the parties had appeared. In any case, in both the cases, as I have already pointed out, there was a lis between two contending parties apart from the deciding authority and the decision of the authority affected the rights of the parties and can, therefore, be well supported as a quasi-judicial act on the principle first enunciated.\n\nThe question I have now to consider is whether the act of the Provincial Government under the Bombay Ordinance satisfied either of the two tests. In the case before us there were not two parties so as to make up a lis in the usual sense.\n\nHere the Provincial Government had been authorised to requisition land for a public purpose and the respondent's father whose interests were prejudicially affected opposed the requisition. The case, therefore, did not satisfy the test of a quasi-judicial act based on the presence of two parties apart from the Provincial Government. Chagla C.J. obviously felt the difficulty and tried to get over it by introducing the State as a party, as if, under the Government of India Act, 1935, the State was a legal entity apart from the Provincial Government. This introduction of a fiction is wholly unconvincing and cannot be supported. The Ordinance under review\n\n(1) [1933) 2 K.B. 696.\n\n(2) [1931] 2 K.B. 216.\n\ndid not contemplate or permit such a fiction.\n\nThe bald fact has to be faced that in this case there was an absence of two contending parties apart from the Provincial Government which was the deciding authority.\n\nThis, as I have said, is, however, not decisive, for it has yet to be enquired whether the case satisfied the second test, that is to say, whether the Ordinance re. quired the Provincial Government to act judicially.\n\nTurning now to the provisions of the Ordinance, it is contended that it is implicit in section 3 that the existence of a public purpose must be determined judicially. The argument may be summed up thus: The existence of a public purpose as an objective fact was, under the main body of section 3, a condition precedent to the exercise of the power of requisition, just as the non-user of land for any of the purposes mentioned in the proviso to section 3 or the vacancy of the premises under section 4 were conditions precedent. This condition precedent being an objective fact, it had of necessity to be determined by the Provincial Government in a quasi-judicial manner. The first part of the argument wholly overlooks the difference in the language used in the main body of section 3 and that used in the proviso to that section and that used in section 4 of the Ordinance. The proviso to section 3 placed certain lands outside the ambit of the power conferred on the Provincial Government by the main body of that section. If the Provincial Government purported to exercise its power of requisition with respect to land which fell within the proviso on an erroneous belief that it did not, then the Provincial Government overstepped the limits of its powers and the order of requisition would not bind anybody and could be challenged by suit as wholly without jurisdiction. Likewise, under section 4 the Provincial Government's power of requisition had been confined in its range to vacant premises and if the Provincial Government purported to requisition premises as vacant premises which in fact were not vacant premises then also the Provincial Government entered the forbidden field and went beyond its power and its\n\nProvince of Bombay v.\n\nK. 8. Advani and Others.\n\nJ)as J.\n\nProvince of\n\nBonibay\n\nK. S. Advani\n\nand Others.\n\nDas J.\n\ndecision would not bind any body and could be challenged by a suit. This would be the position in the two cases I have mentioned, because there was nothing in the proviso to section 3 or in section 4 which could suggest that the question of the fulfilment of the condition precedent, namely, the non-user of the land for any of the purposes mentioned in the proviso to section 3 or the vacancy of the premises under section 4, had in any manner been left to the subjective opinion of the Provincial Government. But, as I have already stated, the main body of section 3, on a correct construction of it, expressly left the question of the existence of the public purpose along with the question of the necessity or expediency of requisitioning land to the subjective opinion of the Provincial Government, and, therefore, its decision, if made in good faith, could not be questioned at all. The circumstance that the fulfilment of the condition precedent laid down in the proviso to section 3 or in section 4 had not been left to the opinion of the Provincial Government could not affect the question of construction of the language used in the main body of section 3 or alter the nature or character of the act under that section. The first part of the argumcat overlooks this aspect of the matter. The second part of the argument proceeds on the assumption that an objective fact can never be left to the subjective opinion of a specified authority and must always be determined judicially. The cases already referred to in connection with the first head of arguments clearly show that the question of the existence of a public purpose or the interests of the State\n\nand the like may well be, and, indeed, often are, left to the subjective opinion or satisfaction of the specified authority and in such cases its decision, in the absence of bad faith, cannot be challenged in any proceeding.\n\nEven if the matter be not left to its subjective opinion, nevertheless, as already pointed out, an administrative authority has frequently to come to a decision in its own mind as to the objective facts such as the existence of a public purpose or the like as a step in the process of the exercise of its administrative\n\n,,..,··\n\n1950 powers. That decision, if erroneous, will not bind anybody and may be questioned in an action. See the B T' Q L l Province of o bservahons of Palles C. . in iie ueen v. oca Bombay Government Board('). The mere fact that the exisv. tence of a public purpose is a condition precedent to K. s. Advani the exercise of the power of requisition will not necesand Others. sarily make the decision as to its existence a quasijudicial act. There is no warrant for saying that the fulfilment of the condition precedent to the exercise of an administrative power must necessarily and always be determined judicially by the authority invested with the power.\n\nThe authority decides it for its own purpose and in case of dispute the final decision rests with the Court-a circumstance which also supports the view that the authority has no duty to decide it judicially. In my opinion, even on the assumption that the question of the existence of a public purpose had not been left to the subjective opinion of the Provincial Government, and that the question had to be determined by the Provincial Government, there was nothing in section 3 to suggest that such determination had to be made judicially at all. The observations of Lord Radcliffe in N akkuda Ali's case(') at p. 887 are also instructive and helpful on this point.\n\nMr. Seervai then draws our attention to sections 10 and 12 of the Ordinance on which he strongly relies in support of his contention. It should be borne in mind that Mr. Seervai has not contended that the order for requisition by itself was a quasi-judicial act.\n\nHis contention has been that this power to make the order was subject to a condition precedent, namely, the existence of a public purpose which alone had to be established judicially as an objective fact. It will, therefore, have to be seen whether the sections relied on have any bearing on the question of the determination of the existence in fact of a public purpose. The sections ran as follows :- , \"10. Power to obtain information-(!) The Provincial Government may, with a view to carrying out the purposes of this Ordinance, by order require any\n\n(1) [1902] L.R. 2 Ir, 349,\n\n(2) 119501 54 C.W.N. 883.\n\nDasJ,\n\nProvine~ of Bombay v.\n\nK. S. Ad1; ani\n\nand Others.\n\nDas J.\n\nperson to furnish to such authority as may be specified in the order such information in his possession relating to any land which is requisitioned or is continued under requisition or is intended to be requisitioned or continued under requisition.\n\n(2) Every person required to furnish such information as is referred to in sub-section (1) shall be deemed to be legally bound to do so within the meaning of sections 176 and 177 of the Indian Penal Code (XLV of 1860).\n\n12. Power to enter and inspect land.-Without prejudice to any powers otherwise conferred by this Ordinance any officer or person empowered in this behalf by the Provincial Government by general or special order may enter and inspect any land for the purpose of determining whether, and, if so, in what manner, an order under this Ordinance should be made in relation to such land or with a view to securing compliance with any order made under this Ordinance.\"\n\nIn considering and construing the above sections it has to be borne in mind that a mere provision for an enquiry as a preliminary step to coming to a decision wi!J not necessarily make the decision a quasi-judicial act, for the purpose of the enquiry may only be to enable the deciding authority to make up its mind to do what may be a purely administrative act. Take the case of Robinson v. Afinister of Town and Country\n\nPlanning (') to which reference has already been made where the act of the Minister was held to be an administrative act. Lord Greene M.R. said at p. 859:\n\n\"As an example of the difference to be found in the subject-matter dealt with in different statutes I may point out that this case is different from a case where a Minister is given the duty of hearing an appeal from an order such as a closing order made by a local authority. This is not !he case of an appeal. It is the case of an original order to be made by the Minister as an executive authority who is at liberty to base his\n\n(1) [1947] 1 A. E .R. 851.\n\nopm10n on whatever material he thinks fit, whether obtained in the ordinary course of his executive functions or derived from what is brought out at a public enquiry if there is one. To say that, in coming to his decision, he is in any sense acting in a quasi-judicial capacity is to misunderstand the nature of the process altogether. I am not concerned to dispute that the enquiry itself must be conducted on what may be described as quasi-judicial principles, but this is quite a different thing from saying that any such principles are applicable to the doing of the executive act itself, i.e., the making of the order. The enquiry is only a step in the process which leads to the result, and there is, in my opinion, no justification for saying that the executive decision to make the order can be controlled by the Courts by reference to the evidence or lack of evidence at the inquiry which is here relied on. Such a theory treats the executive act as though it were a judicial decision (or, if the phrase is preferred, a quasi-judicial decision) which it most emphatically is not.'!\n\nIn Franklin v. Minister of Town and Country Planning ('), to which also reference has already been made, Lord Thankerton at p. 295-296 said :\n\n\"In my opinion, no judicial or quasi-judicial duty was imposed on the respondent, and any reference to judicial duty or bias is irrelevant, in the present case.\n\nThe respondent's duties under section 1 of the Act and Schedule I thereto are, in my opinion, purely administrative, but the Act prescribes certain methods of, or steps in, the discharge of that duty. It is obvious that, before making the draft order, which must contain a definite proposal to designate the area concerned as the site of a new town, the respondent must have made elaborate inquiry into the matter, and have consulted any local authorities who appear to him to be concerned, and, obviously, other departments of the Government, such as the Ministry of Health, would naturally require to be consulted. It would seem, accordingly, that the respondent was required to satisfy\n\n(II [1947] 2 A.E.R. 289; [1948] A.O. 87.\n\nProvince of Bombay v.\n\nK. S. Advani and Others.\n\nDasJ.\n\nProvinee of Bombay v.\n\nK. S. Advani\n\nand Others.\n\nDasJ.\n\nhimself that it was a sound scheme before he took the serious step of issuing a draft order. It seems clear also, that the purpose of inviting objections, and, where they are not withdrawn, of having a public inquiry, to be held by some one other than the respondent, to whom that person reports, was for the further information of the respondent, in order to the final consideration of the soundness of the scheme of the designation, and it is important to note that the development of the site, after the order is made, is primarily the duty of the development Corporation established under s. 2 of the Act.\n\nI am of opinion that no judicial duty is laid on the respondent in discharge of these statutory duties, and that the only question is whether he has complied with the statutory directions to appoint a person to hold the public inquiry, and to consider that person's report.\"\n\nKeeping these weighty observations in view I now proceed to analyse the provisions of the two sections.\n\nIt will be noticed that the powers given to the Provincial Government under both the sections are only enabling and in terms are not compulsory. The Court below has construed the word ' may ' as 'must' on the hypothesis that a right implies a corresponding duty and the Provincial Government is, therefore, under an obligation to exercise the power and consequently an enquiry is compulsory.\n\nI am unable to accept this line of reasoning. The authorities show that in construing a power the Court will read the word ' may ' as ' must ' when the exercise of the power will be in furtherance of the interest of a third person for securing which the power was given.\n\nEnabling words are always potential and never in themselves significant of any obligation. They are read as compulsory where they are words to effectuate a legal right. See Julius v. Lord Bishop of Oxford(').\n\nHere the power was given to enable the Provincial Government to obtain information to carry out the purposes of the Ordinance. It was not given for the\n\n(1) (1880) 5 App. C•s. 2U.\n\n,..\n\nbenefit of any other person including the owner of the land sought to be requisitioned.\n\nWhen a power is given to one person, here the Provincial Government, for his own benefit, couched in enabling words making its exercise optional, there is no principle or authority that I know of which enables the Court to make the exercise of the power compulsory by reading the word 'may' as 'must'. Assuming, however, that 'may' in these sections means 'must,' what follows? It is true that the information could be obtained antler section 10 with a view to carrying out the purposes of the Act but what was the nature of the information that might be gathered under the section? It was only information relating to the land requisitioned or to be requisitioned that could be obtained. Information relating to the land would certainly be useful in enabling the Provincial Government to consider the necessity or expediency of requisitioning that land. Such information would also be useful to the officer determining the question of compensation. But how could any information relating to any particular land have any bearing on the question of the existence of a public purpose which was the only matter under section 3, which, according to Mr. Seervai, had to be judicially determined by the Provincial Government?\n\nI fail to perceive any. As I have said, information relating to land certainly had a bearing on the question whether it was necessary or expedient to acquire that particular land which admittedly was a purely administrative act. Finally, section 10 enabled the Provincial Government to require 'any person' to furnish information relating to the land. The Ordinance did not think fit even to mention the owner or other persons interested in the land as a specific source of information. Assuming that the Provincial Govern. ment was obliged to make any enquiry, the owner of the land had no special right to be consulted apart from the general right of \"any person.\" No provision was made for giving notice of the intended requisiticn by special notice or by advertisement or for enabling ; my aggrieved person to lodge any objection and nobody\n\nProvince of Bombay v.\n\nK. 8. Advani\n\nand Others.\n\nDasJ.\n\nProvince of Bombay v.\n\nK. S. Advani\n\nand Others,\n\nDas .J.\n\nwas designated as authority on whom was cast any duty to hear the objections. Further, it will be noticed that under the section the information was to be furnished to such authority as might be specified, which means that the information was not to be communicated to the Provincial Government direct.\n\nTherefore, the information was nothing more than the information obtained for the Minister by somebody appointed by him to hold a public enquiry under the statutes which were considered in Robinson v. Minister of Town and Country Planning (1) and Franklin v.\n\nMinister of Town and Country Planning('). The circumstance that by sub-section (2) of that section a legal obligation, on pain of criminal penalty, was imposed on persons to furnish information, so strongly relied on by Mr. Seervai, appears to me to have no bearing on the character or scope of the inquiry envisaged by sub-section (1).\n\nThe provisions of section 12 also carried the matter no further. This section was also an enabling section.\n\nThe inspection was in terms for the purpose of determining whether, and, if so, in what manner an order should be made. It can have no possible bearing on the question of the existence of a public purpose which is an independent question having no necessary relation to any particular land.\n\nFurther, presumably, a number of premises might have to be requisitioned and, if the contention of the respondent were correct, there would have to be as many quasi-judicial determinations of the existence of the same public purpose as there might be the number of houses to be acquired-a proposition impracticable and absurd on the face of it. Finally, compare the provisions of sections 10 and 12 with those of section 6. The determination of the question of compensation and the apportionment thereof were certainly judicial or quasijudicial acts. There was a provision for appeal also.\n\nSection 16 provided for making rules for holding the inquiry under sub-sections (I) and (3) of section 6. The circumstance that the Ordinance provided for judicial or quasi-judicial inquiry for the purposes of section 6\n\n11) (1947) 1 A. E. R. 851.\n\n12) (1948) A. r.. 87.\n\n. . ;~\n\nbut was silent as regards section 3 cannot be overlooked.\n\nIn my judgment, the Ordinance did not require the Provfocial Government to act judicially at all in the matter of making a requisition order under section 3.\n\nThe provisions for obtaining information and for getting inspection under sections 10 and 12 respectively cannot be read as provisions for a judicial or quasijudicial inquiry, nor was such so called inquiry obligatory at all. Those sections served and were intended to serve the purpose of obtaining information which would enable the Provincial Government to exercise its administrative, i.e., executive function of making an order for requisition. The conclusions I have arrived at are (i) that on a true construction of section 3 of the Ordinance the determination of the existence of a public purpose and the necessity or expediency for requisitioning any particular land for that purpose was a purely administrative act, for the entire composite matter was left to the opinion of the Provincial Government, and its decision, if made in good faith, could not be questioned;\n\n(ii) that, apart from the question of construction and assuming that the matter had not been left to its opinion, the determination of the existence of a public purpose or the necessity or expediency for making the order could not be regarded as a quasi. judicial act, because (a) there was no lis in the sense of dispute between two contesting parties to be decided by the Provincial Government ; and (b) the Provincial Government was not required by the Ordinance to hold any judicial inquiry or to act judicially and that the determination of the existence of a public purpose was only a step in the process of the exercise of the administrative power and, if erroneous the decision could at best be challenged by an action, but a certiorari would be a wholly inappropriate remedy. The second head of argument must, therefore, be rejected.\n\nThere is the last head of argument which requires consideration before I conclude. The argument is that\n\nProvince of Bombay v.\n\nK. S. Advani\n\nand Other~.\n\nDas J.\n\nProvince of Bombay v.\n\nK. 8. Adva.ni\n\nand Others.\n\n.Das J.\n\nthe existence of a public purpose was a condition precedent to the exercise of the power and, therefore, the fulfilment of the condition precedent had to be determined judicially by the Provincial Government as an objective fact but the Provincial Government could not, by wrongly deciding the preliminary point, assume jurisdiction to exercise the power.\n\nIn Bunbury v. Fuller(') Coleridge J. laid down:\n\n\"Now it is a general rule, that no Court of limited jurisdiction can give itself jurisdiction by a wrong decision on a point collateral to the merits of the case upon which the limit to its jurisdiction depends and however its decisions may be final on all particulars making up together that subject-matter which, if true, is within its jurisdiction, and however necessary in many cases it may be for it to make a preliminary inquiry whether some collateral matter be or be not within the limits, yet upon these preliminary questions, its decision must always be open .to enquiry in the superior Court.\"\n\nThis was cited by Blackburn J. in Pease v.\n\nChaytor (').\n\nThe same principle was also laid down by the Privy Council in Colonial Rank of Australia v.\n\nW illan ('). The principle is quite plain but as Lord Esher M. R. pointed out in Reg. v., Commissioner of Income-tax(') \"its application is often misleading.\" The learned Master of the Rolls classified the cases in two categories thus :\n\n\"When an inferior Court or tribunal or body, which has to exercise the power of deciding facts, is first established by Act of Parliament, the legislature has to consider what powers it will give that tribunal or body. It may in effect say that, if a certain state of facts exists and is shown to such tribunal or body before it proceeds to do certain things, it shall have jurisdiction to do such things but not otherwise.\n\nThere it is not for them conclusively to decide whether that state of facts exists,\n\n(1) 9 Ex, 111 at p. 140.\n\n(2) 3 B. & S, 620.\n\n(3) [1874] L. R. 5 P. C. 417.\n\n(4) (1888) 21 Q.B.D. 313.\n\nProvince of Bombay v.\n\nand, if they exercise the jurisdiction without its existence, what they do may be questioned, and it will be held that they have acted without jurisdiction.\n\nBut there is another state of things which may exist.\n\nThe legislature may entrust the tribunal or body with a jurisdiction which includes the jurisdiction to determine whether the preliminary state of facts exists, as well as the jurisdiction, on finding . that it does exist, to proceed further or do something more.\n\nWhen the legislature are establishing such a tribunal or body with limited jurisdiction, they also have to consider whatever jurisdiction they give them, whether there shall be any appeal from their decision, for otherwise there will be none. In the second of the two cases I have mentioned it is erroneous application of the formula to say that the tribunal cannot give themselves jurisdiction by wrongly deciding certain facts to exist, because the legislature gave them jurisdiction to determine all the facts, including the existence of the preliminary facts on which the further exercise of their jurisdiction depends; and if they were given jurisdiction so to decide, without any appeal being given, there is no appeal from such exercise of their jurisdiction.\"\n\nK. 8. Advani\n\nand Others.\n\nMr. Seervai contends that the present case falls within the first class of cases and strongly relies on Rex v.\n\nWoodhouse (') and Rex v. Bradford (') as establishing that a certiorari lies to correct the error of the Provin. cial Government. There are two answers to this argument. In the first place, it is not disputed that the formation of opinion as to the necessity or expediency of requisitioning any land is a purely subjective matter and that the order of requisition founded on that opinion is an administrative act. What is contended is that the existence of a public purpose must be judicially determined by the Provincial Government be. fore it could proceed to exercise its administrative powers. In short qua that issue only the Provincial Government was to act judicially. The consequence of this argument is that the decision of the Provincial Government on this issue was not a decision\n\n(!) (1906] 2 K. B. !01.\n\n(2) [1908) 1 K. B. S65,\n\nDas J,\n\n19llO\n\nProvincB of\n\nBombay\n\nK. S. Adva.n\\\n\nand Otht1rs.\n\nDasJ.\n\non a collateral matter but a decision on the issue itself which, according to the argument, had been left wit?in the jurisdiction of the Provincial Government to decide.\n\nIt must, therefore, follow that the case fell within the second class of cases mentioned by Lord Esher M.R.\n\nThe fact that there is no right of appeal from this decision, although the Ordinance provided for an appeal under section 6, is also significant. Before coming to the decision on this issue the Government had sent an Inspector to gather information under section 10 and the Respondent's father, the original applicant, furnished all necessary information and produced the original Deed of Assignment on which he founded his title and gave a written statement. The requirements of the Statute had been complied with and the petitioner had his say. The decision of the Provincial Government that a public purpose existed given in such circumstances became, in the absence of bad faith, binding and, in the absence of any right of appeal, was conclusive, however erroneous the decision might have been.\n\nThe second answer to Mr. Seervai's contention is that, assuming that the case fell within the first class of cases and the erroneous decision could be corrected, it might have been corrected by an action but certainly not by certiorari.\n\nThe two cases relied on by Mr. Seervai, when properly understood, can have no application to the facts of the case before us.\n\nIn Rex v. Woodhouse (1) the Court of Appeal accepted the position that the licensing Justices in granting or refusing to grant the licence had to perform a quasi-judicial act, for they had to decide the matter as between two contending parties, namely, the applicant for licence and the persons opposing the grant. There the Justices granted a provisional licence and referred the matter to Quarter Sessions. Three points were taken, namely, (i) that the Justices did not apply their mind to the issue and failed to decide the matter judicially but made the order in pursuance of a pre.existing agreement between them and the Corporation, (ii) that the] ustices were biased and (iii) that\n\n(ti ll906] 2 K.B 501,\n\nthe power of the Justices being limited to granting licences to persons who had some specified qualifications, they could not, by wrongly deciding that the applicants had the necessary qualifications, assume jurisdiction to do the quasi-judicial act of granting the licence.\n\nThis decision of the Court of Appeal was reversed by the House of Lords in Lord Mayor etc. of Leeds v. Ryder (1) on the ground that the Justices had to act according to their own discretion and that they were not guilty of any bad faith in doing what they did. The point to note, however, is that the decision of the Court of Appeal proceeded on the footing that the Justices were a quasi-judicial body and that by wrongly deciding a preliminary fact they assumed to discharge their quasi-judicial function of granting the licence and it was the quasi-judicial act of granting the licence that was brought up and quashed by certiorari.\n\nThe case of Rex v.\n\nBradford (') also proceeded on the footing that in granting the licence to the District Council to take away stones etc. the Justices were exercising a quasi-judicial function and they assumed jurisdiction to exercise that quasi-judicial function by wrongly deciding the collateral fact that the land in question was not a park. The same remarks apply to Rex (Greenaway) v. Justices of Armagh(').\n\nAll these cases in the appeal Court were cases where a quasijudicial body purported to assume jurisdiction to discharge its quasi-judicial function by an erroneous decision of a collateral fact and, therefore, certiorari was granted to correct the error of jurisdiction by quashing the order itself which was a quasi-judicial act.\n\nIn the case now . before us the Provincial Government was functioning as an administrative body doing an administrative act, namely, forming its opinion as to the necessity or expediency of requisitioning land and making an order of requisition based on that opinion. If the existence of a public purpose was a collateral fact, then at best it was a case of an\n\n(11 [1907] A.O. 420.\n\n(2) [1908] l K.B. 365.\n\n(3) (1924] 2 Ir. R. 55,\n\nProvince of Bombay v.\n\nK. S. Advani\n\nand Others.\n\nDaa J,\n\nProvinca of\n\nBombay\n\nK. S. Advani\n\nand Others.\n\nDas J.\n\nadministrative body assuming jurisdiction to perform its administrative powers by erroneously deciding the collateral fact as to the existence of a public purpose.\n\nIn such circumstances the two cases relied on by Mr. Seervai can have no possible application. Assum. ing that this case fell within the first class mentioned by Lord Esher M. R. this erroneous assumption of jurisdiction to do an administrative act might have been corrected by an action but certiorari cannot possibly bo: the appropriate remedy.\n\nIt is said that in deciding the collateral fact the Provincial Government was acting judicially and, therefore, certiorari might go.\n\nThe argument will take the respondents nowhere, for, assuming that the decision on the question of existence of a public purpose was a quasi-judicial act, that decision, at the most, might be quashed but the administrative act, namely, the formation of opinion and the order based thereon would remain unaffected, for certiorari would not affect it.\n\nThe passage I have quoted from the judgment of Lord Greene M. R. in Robinson v. Minister of Town and Country Planning, clearly establishes that although the preliminary enquiry had to be done in a quasijudicial manner, that fact could not alter the nature or character of the ultimate administrative act. That administrative act would remain an administrative act and could not be touched by certiorari. The third head of arguments advanced on behalf of the respondents must, therefore, also fail.\n\nIn my judgment the first of the two points raised by the learned Attorney-General orr behalf of the appellant must prevail for reasons stated above. This is sufficient to dispose of this appeal and the second point, namely, whether a writ of this nature can lie against the Provincial Government, does not arise. In view of the fact that the Government of India Act, 1935, has been repealed and the provisions of our Constitution on this point are different from those of the Government of India Act, the question has also become academic for future purposes and I express no opinion on it.\n\n-··\n\nI, therefore, agree with my Lord the Chief Justice that this appeal should be allowed and the judgments and orders of the Courts below should be set aside and the petition should stand dismissed. I also agree to the order for costs made by my Lord the Chief Justice.\n\nAppeal allowed.\n\nAgent for the appellant: Ranjit Singh Narula.\n\nAgent for the respondents Nos. 1 (a) and 1 (b) : Rajinder Narain.\n\nlIN THE SUPREME COURT OF INDIA (HYDERABAD).]\n\nCO-OPERATIVE SOCIETY OF DEBTS\n\nNANDLAL\n\n[MEHR CHAND MAHAJAN and R. s. NAIK JJ.J\n\nCo-operative Cr50\n\nProWice of\n\n&mibay\n\nK, S, Adonni\n\nand 01/ws\n\nKaniaC.J.\n\nK. S .", "canonical_name": "K. S . .A.dvani"}}, {"text": "section 3", "label": "PROVISION", "start_char": 37303, "end_char": 37312, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 37407, "end_char": 37416, "source": "regex", "metadata": {"statute": null}}, {"text": "Sections 10 and 12", "label": "PROVISION", "start_char": 37862, "end_char": 37880, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 38488, "end_char": 38497, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 38983, "end_char": 38992, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 39001, "end_char": 39010, "source": "regex", "metadata": {"statute": null}}, {"text": "section 80", "label": "PROVISION", "start_char": 39117, "end_char": 39127, "source": "regex", "metadata": {"statute": null}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 39131, "end_char": 39158, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "K. S. Jfd•1J11i", "label": "JUDGE", "start_char": 40111, "end_char": 40126, "source": "ner", "metadata": {"in_sentence": "Provinu Of\n\nBom611J\n\nY, K. S. Jfd•1J11i\n\n\"n4 Othtr$.\n\nKmnaC.J.\n\nPro&ince qf\n\nBombay\n\nv. t;."}}, {"text": "S. Ad1•ani", "label": "RESPONDENT", "start_char": 40179, "end_char": 40189, "source": "ner", "metadata": {"in_sentence": "S. Ad1•ani\n\nand Others.", "canonical_name": "S. 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S. Adroni", "label": "JUDGE", "start_char": 48537, "end_char": 48549, "source": "ner", "metadata": {"in_sentence": "K. S. Adroni\n\nand Othtrs:\n\nFa..,\n\nIr.", "canonical_name": "S. 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Perera ( 1 ), in which the first two paragraphs of the headnote run as follows :\n\n\"In the acquisition of a private land for a public purpose, the Governor is not bound to take the report of the Surveyor-General as to the fitness for such a purpose."}}, {"text": "JC S. Ad\"\"\"i", "label": "JUDGE", "start_char": 57251, "end_char": 57263, "source": "ner", "metadata": {"in_sentence": "Province Qj\n\nBarubay\n\nJC S. Ad\"\"\"i\n\nond Othtrs."}}, {"text": "Parliament", "label": "ORG", "start_char": 59046, "end_char": 59056, "source": "ner", "metadata": {"in_sentence": "In that case and other similar cases, it was held that the Parliament had completely entrusted to the executive the discretion of deciding when it would be necessary or expedient to requisition land in the (') I.LR."}}, {"text": "section 3", "label": "PROVISION", "start_char": 61185, "end_char": 61194, "source": "regex", "metadata": {"statute": null}}, {"text": "K. S. Advani", "label": "JUDGE", "start_char": 61516, "end_char": 61528, "source": "ner", "metadata": {"in_sentence": "In the circumstances, the::\n\nProvince of\n\nB0111bay\n\nK. S. Advani\n\na11J Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "K. S. Adoani", "label": "RESPONDENT", "start_char": 61578, "end_char": 61590, "source": "ner", "metadata": {"in_sentence": "Pr•uitUe 11/\n\nBombay\n\nK. S. Adoani\n\nand Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "PatanJali", "label": "RESPONDENT", "start_char": 61605, "end_char": 61614, "source": "ner", "metadata": {"in_sentence": "PatanJali\n\nSastri].", "canonical_name": "PATANJALI SASTRI"}}, {"text": "PATANJALl SAsTRI", "label": "JUDGE", "start_char": 61915, "end_char": 61931, "source": "ner", "metadata": {"in_sentence": "PATANJALl SAsTRI J.-I agree that the appeal should be allowed for the reasons indicated in the judgment.", "canonical_name": "PATANJALI SASTRI"}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 62130, "end_char": 62139, "source": "ner", "metadata": {"in_sentence": "MEHR CHAND MAHAJAN J.-1 agree with the judgment which my brother Mukherjea proposes to deliver and wish to add some observations of my own out of respect for my Lord the Chief Justice from whose judgment we feel constrained to differ.", "canonical_name": "Muklterjea"}}, {"text": "26th February 1948", "label": "DATE", "start_char": 62397, "end_char": 62415, "source": "ner", "metadata": {"in_sentence": "The principal questions raised by this appeal are : ( 1) Whether the order of requisition dated 26th February 1948' made under section 3 of the Bombay Land Requisition Ord!nance (Ordinance No."}}, {"text": "section 3", "label": "PROVISION", "start_char": 62428, "end_char": 62437, "source": "regex", "metadata": {"statute": null}}, {"text": "Sindh", "label": "GPE", "start_char": 62817, "end_char": 62822, "source": "ner", "metadata": {"in_sentence": "4) Whether the requisition of the said flat and its allotment to Mrs. C. Dayaram, a refugee from Sindh, was for a public purpose ?"}}, {"text": "I Provincial Government", "label": "ORG", "start_char": 63131, "end_char": 63154, "source": "ner", "metadata": {"in_sentence": "against the I Provincial Government which in law means and in- \\_ eludes the Governor and that the requisition and the allotment of the said flat to Mrs. C. Dayaram was for a public purpose."}}, {"text": "K. S . .Aduani", "label": "RESPONDENT", "start_char": 65725, "end_char": 65739, "source": "ner", "metadata": {"in_sentence": "19'0\n\nProvince of _\n\nBomba, ..\n\nK. S .", "canonical_name": "K. S . .A.dvani"}}, {"text": "MaA.efanJ.", "label": "RESPONDENT", "start_char": 65753, "end_char": 65763, "source": "ner", "metadata": {"in_sentence": "MaA.efanJ.\n\nempowered to act to determine or decide some fact or facts."}}, {"text": "May", "label": "JUDGE", "start_char": 66468, "end_char": 66471, "source": "ner", "metadata": {"in_sentence": "The classic ckfinition of the term \"judicial\" was given by May C. J. in The Q11een\n\nv. The Corporation of D11blin( 1 ), and this definition is in these terms :\n\n\"It is established that the writ of certiorari does not lie to remove an order merely ministerial, such as a warrant.", "canonical_name": "May"}}, {"text": "Greene", "label": "JUDGE", "start_char": 67363, "end_char": 67369, "source": "ner", "metadata": {"in_sentence": "They seem to have been approvl!d by Lord Greene M. R. in Rex\n\nv. 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The London County Council( 3 ), a writ of certiorari was issued to the London County Council who had exercised the power to grant a licence under the Cinematograph Act, 1909, and had given permission to open the premises on a Sunday under the Sunday Observance Act, 1780."}}, {"text": "Cinematograph Act", "label": "STATUTE", "start_char": 71966, "end_char": 71983, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Sunday under the Sunday Observance Act, 1780", "label": "STATUTE", "start_char": 72042, "end_char": 72086, "source": "regex", "metadata": {}}, {"text": "section 2", "label": "PROVISION", "start_char": 72092, "end_char": 72101, "source": "regex", "metadata": {"linked_statute_text": "Sunday under the Sunday Observance Act, 1780", "statute": "Sunday under the Sunday Observance Act, 1780"}}, {"text": "Cinematograph Act, 1909", "label": "STATUTE", "start_char": 72126, "end_char": 72149, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Section 1", "label": "PROVISION", "start_char": 72591, "end_char": 72600, "source": "regex", "metadata": {"linked_statute_text": "the Cinematograph Act, 1909", "statute": "the Cinematograph Act, 1909"}}, {"text": "Sunday Observance Act, 1780", "label": "STATUTE", "start_char": 72608, "end_char": 72635, "source": "regex", "metadata": {}}, {"text": "Cinematograph Act", "label": "STATUTE", "start_char": 73632, "end_char": 73649, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "K. S. Adriani", "label": "RESPONDENT", "start_char": 74462, "end_char": 74475, "source": "ner", "metadata": {"in_sentence": "Prooitteof\n\nBombay\n\nK. S. Adriani and Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "Cinematograph Act, 1909", "label": "STATUTE", "start_char": 75124, "end_char": 75147, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "s. 2", "label": "PROVISION", "start_char": 75541, "end_char": 75545, "source": "regex", "metadata": {"linked_statute_text": "the Cinematograph Act, 1909", "statute": "the Cinematograph Act, 1909"}}, {"text": "Greer", "label": "JUDGE", "start_char": 76681, "end_char": 76686, "source": "ner", "metadata": {"in_sentence": "Of course, as was pointed out by Greer L. J. in the course of the\n\n(') [1854]\n\n3 W.R. 69."}}, {"text": "section 1", "label": "PROVISION", "start_char": 77949, "end_char": 77958, "source": "regex", "metadata": {"linked_statute_text": "That case related to the functions of a Minister under the Town and Country Planning Act and the New Towns Act, 1946", "statute": "That case related to the functions of a Minister under the Town and Country Planning Act and the New Towns Act, 1946"}}, {"text": "Ministry of Health", "label": "ORG", "start_char": 78462, "end_char": 78480, "source": "ner", "metadata": {"in_sentence": "It is obvious that, before making the draft order, which must contain a definite proposal to designate the area concerned as the site of a new town, the respondent must have made elaborate inquiry into the matter and have consulted any local authorities who appear to him to be concerned, and obviously other departments of the Government, such as the Ministry of Health, would naturally require to be consulted."}}, {"text": "K. S. Ad1•ani", "label": "RESPONDENT", "start_char": 78881, "end_char": 78894, "source": "ner", "metadata": {"in_sentence": "l!r.iO\n\n:Pro1:inct o_f\n\nBombqv\n\nK. S. Ad1•ani •nd Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "Ji.falwjan", "label": "JUDGE", "start_char": 78970, "end_char": 78980, "source": "ner", "metadata": {"in_sentence": "J v.\n\nK. S. Advani and Othn-s.\n\nJi.falwjan J.\n\nby someone other tlun the respondent, to whom that person reports, was for the further information of the respondent, in order to the final consideration of the soundness of the scheme of the designation ; and it is important to note that the development of the site, after the order is made, is primarily the duty of the development corporation established under section 2 of the Act."}}, {"text": "section 2", "label": "PROVISION", "start_char": 79349, "end_char": 79358, "source": "regex", "metadata": {"statute": null}}, {"text": "Das", "label": "JUDGE", "start_char": 80017, "end_char": 80020, "source": "ner", "metadata": {"in_sentence": "As observed by my brother Das in In re Banwarilal Roy ( '), the question whether an act is a judicial or a quasi-judicial one or a purely executive act depends on the terms of the particular rule, the nature, scope and effect of the particular power in exercise of which the act may be done.", "canonical_name": "DAs JJ."}}, {"text": "Banwarilal Roy", "label": "OTHER_PERSON", "start_char": 80030, "end_char": 80044, "source": "ner", "metadata": {"in_sentence": "As observed by my brother Das in In re Banwarilal Roy ( '), the question whether an act is a judicial or a quasi-judicial one or a purely executive act depends on the terms of the particular rule, the nature, scope and effect of the particular power in exercise of which the act may be done.", "canonical_name": "Banwarilal Roy"}}, {"text": "LR. 42 I.A 44", "label": "CASE_CITATION", "start_char": 82984, "end_char": 82997, "source": "regex", "metadata": {}}, {"text": "K. 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Sir John Anderson (1 ), does the Ordinance contemplate a case of a thinking that a person has a broken ankle and not a case of his really having a broken ankle ?", "canonical_name": "Atkinson"}}, {"text": "section 10", "label": "PROVISION", "start_char": 86877, "end_char": 86887, "source": "regex", "metadata": {"statute": null}}, {"text": "Prodnce of Bombay", "label": "PETITIONER", "start_char": 87495, "end_char": 87512, "source": "ner", "metadata": {"in_sentence": "19j0\n\nProdnce of Bombay v.\n\nK. S. Aduan~ sni 0th.rs.", "canonical_name": "PROVINCE OF BOMBAY"}}, {"text": "K. S. Aduan~", "label": "RESPONDENT", "start_char": 87517, "end_char": 87529, "source": "ner", "metadata": {"in_sentence": "19j0\n\nProdnce of Bombay v.\n\nK. S. Aduan~ sni 0th.rs.", "canonical_name": "K. S . .A.dvani"}}, {"text": "K. S. Moani", "label": "RESPONDENT", "start_char": 87568, "end_char": 87579, "source": "ner", "metadata": {"in_sentence": "l'roi; i11&e of\n\nBombay\n\nK. S. 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S . .A.dvani"}}, {"text": "S1", "label": "PROVISION", "start_char": 87756, "end_char": 87758, "source": "regex", "metadata": {"statute": null}}, {"text": "section 12", "label": "PROVISION", "start_char": 88252, "end_char": 88262, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 88566, "end_char": 88575, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 306", "label": "PROVISION", "start_char": 89412, "end_char": 89423, "source": "regex", "metadata": {"statute": null}}, {"text": "section 176", "label": "PROVISION", "start_char": 89435, "end_char": 89446, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 89454, "end_char": 89483, "source": "regex", "metadata": {}}, {"text": "section 176", "label": "PROVISION", "start_char": 90388, "end_char": 90399, "source": "regex", "metadata": {"linked_statute_text": "My simple answer is that the Provincial Government is not the sovereign and that the Government of India Act", "statute": "My simple answer is that the Provincial Government is not the sovereign and that the Government of India Act"}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 90407, "end_char": 90436, "source": "regex", "metadata": {}}, {"text": "section 306", "label": "PROVISION", "start_char": 90531, "end_char": 90542, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "section 46", "label": "PROVISION", "start_char": 90760, "end_char": 90770, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "General Clauses Act", "label": "STATUTE", "start_char": 90782, "end_char": 90801, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Reference in this connection was made to the East India Company Act, 1780", "label": "STATUTE", "start_char": 91193, "end_char": 91266, "source": "regex", "metadata": {}}, {"text": "sections 306 and 176", "label": "PROVISION", "start_char": 91343, "end_char": 91363, "source": "regex", "metadata": {"linked_statute_text": "Reference in this connection was made to the East India Company Act, 1780", "statute": "Reference in this connection was made to the East India Company Act, 1780"}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 91371, "end_char": 91400, "source": "regex", "metadata": {}}, {"text": "East India Company", "label": "ORG", "start_char": 91602, "end_char": 91620, "source": "ner", "metadata": {"in_sentence": "That statute, however, did not prohibit the issue of a writ against the East India Company."}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 91804, "end_char": 91811, "source": "ner", "metadata": {"in_sentence": "Mahajan J.\n\np, ovince of\n\nBomh~J\n\nK. S. Adrlf.1t1i\n\nand 01M, s.\n\nMahajan J.\n\nmatter has to be ayar:llll was concerned in any manner whatever with the administration of Government of Bombav or was a public servant."}}, {"text": "K. S . .A.dvani", "label": "RESPONDENT", "start_char": 211651, "end_char": 211666, "source": "ner", "metadata": {"in_sentence": "19-'lO\n\nPrnii11t:1 of\n\nBomba;·\n\nK. S .", "canonical_name": "K. S . .A.dvani"}}, {"text": "s6", "label": "PROVISION", "start_char": 213696, "end_char": 213698, "source": "regex", "metadata": {"statute": null}}, {"text": "Banwarilal", "label": "OTHER_PERSON", "start_char": 214324, "end_char": 214334, "source": "ner", "metadata": {"in_sentence": "In Banwarilal's case(') I had occasion to analyse the essential characteristics of a quasi-judicial act as opposed to an administrative act.", "canonical_name": "Banwarilal Roy"}}, {"text": "N akkuda Ali", "label": "OTHER_PERSON", "start_char": 216585, "end_char": 216597, "source": "ner", "metadata": {"in_sentence": "The above passage was quoted with approval by Lord Radcliffe in delivering the judgment of the Privy Council in N akkuda Ali's case (')."}}, {"text": "Leeds", "label": "GPE", "start_char": 217750, "end_char": 217755, "source": "ner", "metadata": {"in_sentence": "In Rex v. Woodhouse (') the contest was between the applicants for renewal of licence and certain brewers and the Justices of Leeds were to decide whether the licence should or should not be renewed."}}, {"text": "Swift", "label": "JUDGE", "start_char": 219424, "end_char": 219429, "source": "ner", "metadata": {"in_sentence": "The following passage from the judgment of Greer L.J. in that case quoted with approval by Swift J. in Frost & others v. 1vlinister of Health(') takes the matter a little further in that line :\n\n\" In so far as the Minister deals with the matter of confirmation of a closing order in the absence of objection by the owners, it is clear to me, and I think to my brethren, that he would be acting in a ministerial or administrative capacity, and would be entitled to make such enquiries as he thinks necessary to enable him to make up his mind whether it was in the public interest that order should be made."}}, {"text": "K. S Advani", "label": "RESPONDENT", "start_char": 220146, "end_char": 220157, "source": "ner", "metadata": {"in_sentence": "292-S.\n\nProvince of Bombay v.\n\nK. S Advani\n\naiid Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "Housing Act, 1930", "label": "STATUTE", "start_char": 220977, "end_char": 220994, "source": "regex", "metadata": {}}, {"text": "Scott", "label": "JUDGE", "start_char": 222382, "end_char": 222387, "source": "ner", "metadata": {"in_sentence": "The Report of the Ministers' Powers Committee in defining the words 'judicial' and\n\n(I) [1947) 2 A.E.R. 289; [1948) A.O. 87; 11947) 176 L.T. 312, 316, -..\n\n'quasi-judicial' which definition was accepted by Scott L. J. as correct in Cooper v. Wilson (')stated:\n\n\"A true judicial decision pre-supposes an existing dispute between two or more parties and then involves four requisites ...... A quasi-judicial decision equally pre-supposes an existing dispute between two or more parties and involves ...... \"\n\nThis definition of a quasi.judicial decision clearly suggests that there must be two or more contesting parties and an outside authority to decide those disputes."}}, {"text": "Oaksey", "label": "JUDGE", "start_char": 223525, "end_char": 223531, "source": "ner", "metadata": {"in_sentence": "In Franklin v. Minister of Town and Country Planning('), while it was before the Appeal Court, Lord Oaksey L.J. said :\n\n\" In all the authorities which have been referred to as showing that at an enquiry there must be an examination of the case of both sides, there was what has been called a lis : that is to say, there were two parties contesting and the Minister as an outside authority, was deciding the case.\""}}, {"text": "Division Bench of the Calcutta High Court", "label": "COURT", "start_char": 223895, "end_char": 223936, "source": "ner", "metadata": {"in_sentence": "In the very recent case of Patri Shaw v. R.N. Roy(') a Division Bench of the Calcutta High Court dissented from this very Bombay case (5) which is now before us and emphasised the necessity of a lis between two parties for making the decision of the authority a quasi-judicial act."}}, {"text": "Advani", "label": "RESPONDENT", "start_char": 228666, "end_char": 228672, "source": "ner", "metadata": {"in_sentence": "Advani\n\nand Others.", "canonical_name": "S. Ad1•ani"}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 230593, "end_char": 230622, "source": "regex", "metadata": {}}, {"text": "section 3", "label": "PROVISION", "start_char": 231365, "end_char": 231374, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "section 3", "label": "PROVISION", "start_char": 231564, "end_char": 231573, "source": "regex", "metadata": {"linked_statute_text": "the Government of India Act, 1935", "statute": "the Government of India Act, 1935"}}, {"text": "section 3", "label": "PROVISION", "start_char": 231723, "end_char": 231732, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 231770, "end_char": 231779, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 232055, "end_char": 232064, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 232127, "end_char": 232136, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 232170, "end_char": 232179, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 232672, "end_char": 232681, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 233294, "end_char": 233303, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 233310, "end_char": 233319, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 233489, "end_char": 233498, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 233536, "end_char": 233545, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 233679, "end_char": 233688, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 234101, "end_char": 234110, "source": "regex", "metadata": {"statute": null}}, {"text": "section 4", "label": "PROVISION", "start_char": 234117, "end_char": 234126, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 234276, "end_char": 234285, "source": "regex", "metadata": {"statute": null}}, {"text": "K. s. Advani", "label": "JUDGE", "start_char": 235633, "end_char": 235645, "source": "ner", "metadata": {"in_sentence": "tence of a public purpose is a condition precedent to K. s. Advani the exercise of the power of requisition will not necesand Others.", "canonical_name": "K. S . .A.dvani"}}, {"text": "section 3", "label": "PROVISION", "start_char": 236465, "end_char": 236474, "source": "regex", "metadata": {"statute": null}}, {"text": "sections 10 and 12", "label": "PROVISION", "start_char": 236704, "end_char": 236722, "source": "regex", "metadata": {"statute": null}}, {"text": "DasJ", "label": "JUDGE", "start_char": 237538, "end_char": 237542, "source": "ner", "metadata": {"in_sentence": "DasJ,\n\nProvine~ of Bombay v.\n\nK. S. Ad1; ani\n\nand Others.", "canonical_name": "DAs JJ."}}, {"text": "sections 176 and 177", "label": "PROVISION", "start_char": 238013, "end_char": 238033, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Penal Code", "label": "STATUTE", "start_char": 238041, "end_char": 238058, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Greene M.R.", "label": "JUDGE", "start_char": 239087, "end_char": 239098, "source": "ner", "metadata": {"in_sentence": "Lord Greene M.R. said at p. 859:\n\n\"As an example of the difference to be found in the subject-matter dealt with in different statutes I may point out that this case is different from a case where a Minister is given the duty of hearing an appeal from an order such as a closing order made by a local authority.", "canonical_name": "Greene M.R."}}, {"text": "section 1", "label": "PROVISION", "start_char": 241003, "end_char": 241012, "source": "regex", "metadata": {"statute": null}}, {"text": "Schedule I", "label": "PROVISION", "start_char": 241028, "end_char": 241038, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 2", "label": "PROVISION", "start_char": 242411, "end_char": 242415, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 2U", "label": "PROVISION", "start_char": 243858, "end_char": 243863, "source": "regex", "metadata": {"linked_statute_text": "Here the power was given to enable the Provincial Government to obtain information to carry out the purposes of the Ordinance", "statute": "Here the power was given to enable the Provincial Government to obtain information to carry out the purposes of the Ordinance"}}, {"text": "section 10", "label": "PROVISION", "start_char": 244395, "end_char": 244405, "source": "regex", "metadata": {"linked_statute_text": "Here the power was given to enable the Provincial Government to obtain information to carry out the purposes of the Ordinance", "statute": "Here the power was given to enable the Provincial Government to obtain information to carry out the purposes of the Ordinance"}}, {"text": "section 3", "label": "PROVISION", "start_char": 245074, "end_char": 245083, "source": "regex", "metadata": {"statute": null}}, {"text": "section 10", "label": "PROVISION", "start_char": 245419, "end_char": 245429, "source": "regex", "metadata": {"statute": null}}, {"text": "section 12", "label": "PROVISION", "start_char": 247063, "end_char": 247073, "source": "regex", "metadata": {"statute": null}}, {"text": "sections 10 and 12", "label": "PROVISION", "start_char": 247826, "end_char": 247844, "source": "regex", "metadata": {"statute": null}}, {"text": "section 6", "label": "PROVISION", "start_char": 247859, "end_char": 247868, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 16", "label": "PROVISION", "start_char": 248037, "end_char": 248047, "source": "regex", "metadata": {"statute": null}}, {"text": "section 6", "label": "PROVISION", "start_char": 248132, "end_char": 248141, "source": "regex", "metadata": {"statute": null}}, {"text": "section 6", "label": "PROVISION", "start_char": 248247, "end_char": 248256, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 248343, "end_char": 248352, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 248523, "end_char": 248532, "source": "regex", "metadata": {"statute": null}}, {"text": "sections 10 and 12", "label": "PROVISION", "start_char": 248609, "end_char": 248627, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 249058, "end_char": 249067, "source": "regex", "metadata": {"statute": null}}, {"text": "Adva.ni", "label": "RESPONDENT", "start_char": 250450, "end_char": 250457, "source": "ner", "metadata": {"in_sentence": "Adva.ni\n\nand Others.", "canonical_name": "S. Ad1•ani"}}, {"text": ".Das", "label": "JUDGE", "start_char": 250472, "end_char": 250476, "source": "ner", "metadata": {"in_sentence": ".Das J.\n\nthe existence of a public purpose was a condition precedent to the exercise of the power and, therefore, the fulfilment of the condition precedent had to be determined judicially by the Provincial Government as an objective fact but the Provincial Government could not, by wrongly deciding the preliminary point, assume jurisdiction to exercise the power.", "canonical_name": "DAs JJ."}}, {"text": "Coleridge", "label": "JUDGE", "start_char": 250862, "end_char": 250871, "source": "ner", "metadata": {"in_sentence": "In Bunbury v. Fuller(') Coleridge J. laid down:\n\n\"Now it is a general rule, that no Court of limited jurisdiction can give itself jurisdiction by a wrong decision on a point collateral to the merits of the case upon which the limit to its jurisdiction depends and however its decisions may be final on all particulars making up together that subject-matter which, if true, is within its jurisdiction, and however necessary in many cases it may be for it to make a preliminary inquiry whether some collateral matter be or be not within the limits, yet upon these preliminary questions, its decision must always be open .to enquiry in the superior Court.\""}}, {"text": "Blackburn", "label": "JUDGE", "start_char": 251511, "end_char": 251520, "source": "ner", "metadata": {"in_sentence": "This was cited by Blackburn J. in Pease v.\n\nChaytor (')."}}, {"text": "Esher M. R.", "label": "OTHER_PERSON", "start_char": 251698, "end_char": 251709, "source": "ner", "metadata": {"in_sentence": "The principle is quite plain but as Lord Esher M. R. pointed out in Reg.", "canonical_name": "Esher M. R."}}, {"text": "S65", "label": "PROVISION", "start_char": 254742, "end_char": 254745, "source": "regex", "metadata": {"statute": null}}, {"text": "K. S. Adva.n\\", "label": "JUDGE", "start_char": 254784, "end_char": 254797, "source": "ner", "metadata": {"in_sentence": "(2) [1908) 1 K. B. S65,\n\nDas J,\n\n19llO\n\nProvincB of\n\nBombay\n\nK. S. Adva.n\\\n\nand Otht1rs.", "canonical_name": "K. S . .A.dvani"}}, {"text": "Esher M.R.", "label": "OTHER_PERSON", "start_char": 255088, "end_char": 255098, "source": "ner", "metadata": {"in_sentence": "It must, therefore, follow that the case fell within the second class of cases mentioned by Lord Esher M.R.\n\nThe fact that there is no right of appeal from this decision, although the Ordinance provided for an appeal under section 6, is also significant.", "canonical_name": "Esher M. R."}}, {"text": "section 6", "label": "PROVISION", "start_char": 255214, "end_char": 255223, "source": "regex", "metadata": {"statute": null}}, {"text": "section 10", "label": "PROVISION", "start_char": 255355, "end_char": 255365, "source": "regex", "metadata": {"statute": null}}, {"text": "Daa", "label": "JUDGE", "start_char": 259125, "end_char": 259128, "source": "ner", "metadata": {"in_sentence": "Daa J,\n\nProvinca of\n\nBombay\n\nK. S. Advani\n\nand Others."}}, {"text": "view of the fact that the Government of India Act, 1935", "label": "STATUTE", "start_char": 261002, "end_char": 261057, "source": "regex", "metadata": {}}, {"text": "Constitution on this point are different from those of the Government of India Act", "label": "STATUTE", "start_char": 261103, "end_char": 261185, "source": "regex", "metadata": {}}, {"text": "Ranjit Singh Narula", "label": "LAWYER", "start_char": 261593, "end_char": 261612, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: Ranjit Singh Narula."}}, {"text": "Rajinder Narain", "label": "LAWYER", "start_char": 261664, "end_char": 261679, "source": "ner", "metadata": {"in_sentence": "1 (a) and 1 (b) : Rajinder Narain."}}, {"text": "SUPREME COURT OF INDIA (HYDERABAD).]", "label": "COURT", "start_char": 261690, "end_char": 261726, "source": "ner", "metadata": {"in_sentence": "lIN THE SUPREME COURT OF INDIA (HYDERABAD).]"}}, {"text": "CO-OPERATIVE SOCIETY OF DEBTS\n\nNANDLAL", "label": "JUDGE", "start_char": 261728, "end_char": 261766, "source": "ner", "metadata": {"in_sentence": "CO-OPERATIVE SOCIETY OF DEBTS\n\nNANDLAL\n\n[MEHR CHAND MAHAJAN and R. s. NAIK JJ.J\n\nCo-operative Cri Vakil Ahmad (52 I.A. 145) explained.\n\nAPPEAL from a judgment of the High Court of Hyderabad under article 374 (4) of the Constitution of India: Civil Appeal No. 189 of 1950.\n\nAbdul Wahid Owasi, for the appellant.\n\nAhmed Saeed Khan, for respondent No. 1.\n\n1950. October 12.\n\nThe judgment of the Court was delivered by\n\nKhat; lunaman J.\n\nKHALILUZZAMAN ].-This appeal arises out of execution proceedings. The appellant, Kapurchand, had a money decree, amongst others, against one Mir Hamid Ali Khan, husband of the respondent Mst. Kaderunnissa.\n\nIn execution of the decree the house in dispute belonging to the deceased judgment-debtor was attached.\n\nTo the attachment the widow of the deceased raised an objection on the ground that she was in possession of it in lieu of her outstanding s\n\nwill have their costs of these proceedings in the two petitions.\n\nAgent for the petitioners Rajinder Narain.\n\nPetitions allowed.\n\nm Nos. 78 and 79:\n\nAgent for the respondent m\n\nP.A. lv/hta.\n\nRAM GOPAL\n\nII.\n\nNos. 78 and 79:\n\nNAND LAL AND OTHERS\n\n[SAIYID FAZL Au, MUKHERJEA and CHANDRA-\n\nSEKHARA AIYAR JJ.]\n\nHindu Law-Gift to female owner-Construction-Gift for maintenance-Estate conveyed, whether absolute or limited-Use of\n\nthe word 'Malik', effect of. ·\n\nIn construing a document whether in English or in vernacular the fundamental rule is to ascertain the intention from the words used; the surrounding circumstances are to be considered but tbat is only for the purpose of finding out the intended meaning of the words which have actually been employed.\n\nTo convey an absolute estate to a Hindu female, no express power of a.lienaticn need be given ; it is enough if words of such amplit11de are used as would convey full rights of ownership.\n\nThe term 'Malik' when used in a will or other document as descriptive of the position which a. devisee or donee is intended to hold, has been held apt to describe an owner possessed of lull proprietary rights, including a. full right of alienation, unless there is something in the context or in the surrounding circumstances to indicate that such f11ll 11roprietory rights were not intended to\n\nbe conferred,", "total_entities": 60, "entities": [{"text": "RAO\n\nTHE STATE OF MADHYA PRADESH", "label": "RESPONDENT", "start_char": 47, "end_char": 79, "source": "metadata", "metadata": {"canonical_name": "THE STATE OF MADHYA PRADESH", "offset_not_found": false}}, {"text": "STATE OF MADHYA PRADESH", "label": "ORG", "start_char": 98, "end_char": 121, "source": "ner", "metadata": {"in_sentence": "S.C.R.\n\nSUPREME COURT REPORTS 759\n\nCHI NT AMAN RAO\n\nTHE STATE OF MADHYA PRADESH\n\nRAM KRISHNA\n\nTHE STATE OF MADHYA PRADESH\n\n[SHRI HARILAL KANIA, C.J., MEHR CHAND MAHAJAN,\n\nMUKHERJEA, DAS and CHANDRASEKHARA AIYAR JJ.J\n\nCentral Provinces and Berar Regulation of Manufacture of Bidis (Agricultural Purposes) Act (LXIV of 1948), ss."}}, {"text": "SHRI HARILAL KANIA, C.J.", "label": "JUDGE", "start_char": 124, "end_char": 148, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 150, "end_char": 168, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN", "offset_not_found": false}}, {"text": "MUKHERJEA", "label": "JUDGE", "start_char": 171, "end_char": 180, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA", "offset_not_found": false}}, {"text": "DAS", "label": "JUDGE", "start_char": 182, "end_char": 185, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "CHANDRASEKHARA AIYAR JJ", "label": "JUDGE", "start_char": 190, "end_char": 213, "source": "metadata", "metadata": {"canonical_name": "CHANDRASEKHARA AIYAR JJ", "offset_not_found": false}}, {"text": "Central Provinces and Berar Regulation", "label": "STATUTE", "start_char": 217, "end_char": 255, "source": "regex", "metadata": {}}, {"text": "ss. 8, 4", "label": "PROVISION", "start_char": 324, "end_char": 332, "source": "regex", "metadata": {"linked_statute_text": "Central Provinces and Berar Regulation", "statute": "Central Provinces and Berar Regulation"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 590, "end_char": 611, "source": "regex", "metadata": {}}, {"text": "Art. 19(1)(g), 19(6)", "label": "PROVISION", "start_char": 619, "end_char": 639, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 804, "end_char": 825, "source": "regex", "metadata": {}}, {"text": "Buch", "label": "GPE", "start_char": 1252, "end_char": 1256, "source": "ner", "metadata": {"in_sentence": "The Act provided further that\n\n11 no person reBiding in a village Bpecified in Buch order Bhall during the agricultural season engage himself in the manufacture of bidis, and no manufacturer shall during the said season employ any perBon for the manufacture of bidis.\""}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 1752, "end_char": 1759, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 1981, "end_char": 1988, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "S.\n\n1", "label": "PROVISION", "start_char": 2477, "end_char": 2482, "source": "regex", "metadata": {"statute": null}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 2601, "end_char": 2608, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 3703, "end_char": 3710, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 3767, "end_char": 3774, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Supreme Court", "label": "COURT", "start_char": 3957, "end_char": 3970, "source": "ner", "metadata": {"in_sentence": "The Supreme Court has power to consider v.i'bether the restrictions imposed by the Legislature are reasonable within the meaning of Art."}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 4085, "end_char": 4092, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 4263, "end_char": 4273, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 4281, "end_char": 4302, "source": "regex", "metadata": {}}, {"text": "G. N. Joshi", "label": "LAWYER", "start_char": 4328, "end_char": 4339, "source": "ner", "metadata": {"in_sentence": "G. N. Joshi, for the petitioners."}}, {"text": "S. M. Sikri", "label": "LAWYER", "start_char": 4363, "end_char": 4374, "source": "ner", "metadata": {"in_sentence": "S. M. Sikri, for the respondent."}}, {"text": "MahajanJ.\n\nMAHAJAN", "label": "JUDGE", "start_char": 4459, "end_char": 4477, "source": "ner", "metadata": {"in_sentence": "The judgment of the Court was delivered by\n\nMahajanJ.\n\nMAHAJAN ].-These two applications for enforcement of the fundamental right guaranteed under article 19 (1) (g) of the Constitution of India have been made by a proprietor and an employee respectively of a bidi manufacturing concern of District Sagar (State of Madhya Pradesh)."}}, {"text": "article 19", "label": "PROVISION", "start_char": 4562, "end_char": 4572, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 4588, "end_char": 4609, "source": "regex", "metadata": {}}, {"text": "Madhya Pradesh", "label": "GPE", "start_char": 4730, "end_char": 4744, "source": "ner", "metadata": {"in_sentence": "The judgment of the Court was delivered by\n\nMahajanJ.\n\nMAHAJAN ].-These two applications for enforcement of the fundamental right guaranteed under article 19 (1) (g) of the Constitution of India have been made by a proprietor and an employee respectively of a bidi manufacturing concern of District Sagar (State of Madhya Pradesh)."}}, {"text": "19th October 1948", "label": "DATE", "start_char": 5191, "end_char": 5208, "source": "ner", "metadata": {"in_sentence": "v, The Central Provinces and Berar Regulation of Th• St•t• of Manufacture of Bidis (Agricultural Purposes) Act, Madhya LXIV of 1948, was passed on 19th October 1948 and PradBSh."}}, {"text": "Sections 3 and 4", "label": "PROVISION", "start_char": 5309, "end_char": 5325, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Deputy Commissioner", "label": "RESPONDENT", "start_char": 5368, "end_char": 5387, "source": "ner", "metadata": {"in_sentence": "The Deputy Commissioner may by notification fix a period to be an agricultural sason with respect to such villages as may be specified therein."}}, {"text": "13th June 1950", "label": "DATE", "start_char": 5931, "end_char": 5945, "source": "ner", "metadata": {"in_sentence": "On the 13th June 1950 au order was issued by the Deputy Commissioner of Sagar under the provisions of the Act for bidding all persons residing in certain villages from engaging in the manufacture of bidis."}}, {"text": "Sagar", "label": "GPE", "start_char": 5996, "end_char": 6001, "source": "ner", "metadata": {"in_sentence": "On the 13th June 1950 au order was issued by the Deputy Commissioner of Sagar under the provisions of the Act for bidding all persons residing in certain villages from engaging in the manufacture of bidis."}}, {"text": "article 32", "label": "PROVISION", "start_char": 6208, "end_char": 6218, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "8th October to 18th November 1950", "label": "DATE", "start_char": 6518, "end_char": 6551, "source": "ner", "metadata": {"in_sentence": "A fresh order for the ensuing agricultural season·· 8th October to 18th November 1950-was issued on 29th September 1950 in the same terms."}}, {"text": "29th September 1950", "label": "DATE", "start_char": 6566, "end_char": 6585, "source": "ner", "metadata": {"in_sentence": "A fresh order for the ensuing agricultural season·· 8th October to 18th November 1950-was issued on 29th September 1950 in the same terms."}}, {"text": "Article 19", "label": "PROVISION", "start_char": 6667, "end_char": 6677, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Ohintaman Rao", "label": "OTHER_PERSON", "start_char": 6928, "end_char": 6941, "source": "ner", "metadata": {"in_sentence": "The freedom guaranteed herein is, however, Ohintaman Rao subject to the limitations imposed by clause (6) of\n\nTh• ;·;.1, of article 19."}}, {"text": "article 19", "label": "PROVISION", "start_char": 7009, "end_char": 7019, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "lakajan", "label": "JUDGE", "start_char": 7233, "end_char": 7240, "source": "ner", "metadata": {"in_sentence": "affect the operation of any existing law in so far as it imposes, or prevent the State from making any law .1:lakajan J. imposing, in the interests of the general public, reasonable restrictions on the exercise of the right conferred by the said sub-clause, and, in particular, nothing in the said sub-clause shall affect the operation of any existing law in so far as it prescribes or empowers any authority to prescribe, or prevent the State from making any law prescribing or empowering any authority to prescribe, the professional or technical qualifications necessary for practising any profession or carrying on any occupation, trade or business.\""}}, {"text": "Berar Act LXIV of 1948", "label": "STATUTE", "start_char": 7865, "end_char": 7887, "source": "regex", "metadata": {}}, {"text": "Sections 3 and 4", "label": "PROVISION", "start_char": 8482, "end_char": 8498, "source": "regex", "metadata": {"linked_statute_text": "Berar Act LXIV of 1948", "statute": "Berar Act LXIV of 1948"}}, {"text": "section 7", "label": "PROVISION", "start_char": 8679, "end_char": 8688, "source": "regex", "metadata": {"linked_statute_text": "Berar Act LXIV of 1948", "statute": "Berar Act LXIV of 1948"}}, {"text": "article 19", "label": "PROVISION", "start_char": 9449, "end_char": 9459, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 9551, "end_char": 9558, "source": "ner", "metadata": {"in_sentence": "Unless it is shown that there is a reasonable relation of the Mahajan J. provisions of the Act to the purpose in view, the right of freedom of occupation and business cannot be curtailed by it."}}, {"text": "article 19", "label": "PROVISION", "start_char": 10216, "end_char": 10226, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 10285, "end_char": 10295, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 10829, "end_char": 10839, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Chintomon Rao", "label": "OTHER_PERSON", "start_char": 11365, "end_char": 11378, "source": "ner", "metadata": {"in_sentence": "Even in point - of time a restriction may well have been reasonable if Chintomon Rao t d 1 f th h f k th v. 1t amoun e to a regu at10n o e ours o wor m e Th• stat• of business."}}, {"text": "Mohainn J. business", "label": "ORG", "start_char": 11699, "end_char": 11718, "source": "ner", "metadata": {"in_sentence": "Such legislation though it would limit the\n\nMadh11a field for recruiting persons for the manufacture of bidis\n\nP•adosh and regulate the hours of the working of the industry, would not have amounted to a complete stoppage of the Mohainn J. business of manufacture and might well have been within the ambit of clause (6)."}}, {"text": "Sikri", "label": "OTHER_PERSON", "start_char": 14608, "end_char": 14613, "source": "ner", "metadata": {"in_sentence": "Mr. Sikri for the Government of Madhya Pradesh contends that the legislature of Madhya Pradesh was the proper judge of the reasonableness of the restrictions imposed by the statute, that that legislature alone knew the conditions prevailing in the State and it alone could say what kind of legislation could effectively achieve the end in view and would help in the grow more food campaign and would help for bringing in fallow land under the plough and that this Court sitting at this great distance could not judge by its own yardstick of reason whether the restrictions imposed in the circumstances of the case were reasonable or not."}}, {"text": "Government of Madhya Pradesh", "label": "ORG", "start_char": 14622, "end_char": 14650, "source": "ner", "metadata": {"in_sentence": "Mr. Sikri for the Government of Madhya Pradesh contends that the legislature of Madhya Pradesh was the proper judge of the reasonableness of the restrictions imposed by the statute, that that legislature alone knew the conditions prevailing in the State and it alone could say what kind of legislation could effectively achieve the end in view and would help in the grow more food campaign and would help for bringing in fallow land under the plough and that this Court sitting at this great distance could not judge by its own yardstick of reason whether the restrictions imposed in the circumstances of the case were reasonable or not."}}, {"text": "legislature of Madhya Pradesh", "label": "ORG", "start_char": 14669, "end_char": 14698, "source": "ner", "metadata": {"in_sentence": "Mr. Sikri for the Government of Madhya Pradesh contends that the legislature of Madhya Pradesh was the proper judge of the reasonableness of the restrictions imposed by the statute, that that legislature alone knew the conditions prevailing in the State and it alone could say what kind of legislation could effectively achieve the end in view and would help in the grow more food campaign and would help for bringing in fallow land under the plough and that this Court sitting at this great distance could not judge by its own yardstick of reason whether the restrictions imposed in the circumstances of the case were reasonable or not."}}, {"text": "section 4", "label": "PROVISION", "start_char": 16225, "end_char": 16234, "source": "regex", "metadata": {"statute": null}}, {"text": "Rajinder Narain", "label": "LAWYER", "start_char": 16405, "end_char": 16420, "source": "ner", "metadata": {"in_sentence": "Agent for the petitioners Rajinder Narain."}}, {"text": "RAM GOPAL", "label": "RESPONDENT", "start_char": 16504, "end_char": 16513, "source": "ner", "metadata": {"in_sentence": "RAM GOPAL\n\nII."}}, {"text": "NAND LAL", "label": "PETITIONER", "start_char": 16537, "end_char": 16545, "source": "ner", "metadata": {"in_sentence": "78 and 79:\n\nNAND LAL AND OTHERS\n\n[SAIYID FAZL Au, MUKHERJEA and CHANDRA-\n\nSEKHARA AIYAR JJ.]"}}, {"text": "SAIYID FAZL Au", "label": "JUDGE", "start_char": 16559, "end_char": 16573, "source": "ner", "metadata": {"in_sentence": "78 and 79:\n\nNAND LAL AND OTHERS\n\n[SAIYID FAZL Au, MUKHERJEA and CHANDRA-\n\nSEKHARA AIYAR JJ.]"}}, {"text": "CHANDRA-\n\nSEKHARA AIYAR", "label": "JUDGE", "start_char": 16589, "end_char": 16612, "source": "ner", "metadata": {"in_sentence": "78 and 79:\n\nNAND LAL AND OTHERS\n\n[SAIYID FAZL Au, MUKHERJEA and CHANDRA-\n\nSEKHARA AIYAR JJ.]", "canonical_name": "CHANDRASEKHARA AIYAR JJ"}}]} {"document_id": "1950_1_75_87_EN", "year": 1950, "text": "S.C.R.\n\nSUPREME COURT REPORTS 75\n\nSHETH MANEKLAL MANSUKHBHAI\n\nMESSRS. HORMUSJI JAMSHEDJI GINWALLA\n\nAND SONS.\n\n[SAIYID F AZL ALI, MEHR CHAND MAHAJAN and\n\nMUKHERJEA JJ.]\n\nTransfer of Property Act (IV of 1882), s. 58-A-Agreement to lease evidenced by co1respondence-Lessee put in possession-Acceptance of rent for several years-No regiatered lease deed-Suit for ejectment of lessee as trespasser-Maintainability-Doctrine of partperformance.\n\nThe predecessor in interest of the defendant, behig desirous of putti~ up a factory in certain plots of land situated within a Taluqdari estate which was under the management of the Government under the Gujarat, Taluqssessory mortgage of the ginn 1960 ing factory along with all its buildings 'Yas effected by Sltdh Maneklal Shah Manila! Maganlal in the sum of Rs. 1,40,000 in Mansukhbltai favour of the defendant. The mortgage included in v. the schedule of the mortgaged property some other pro- Mesrs. Hor- . perty as well.\n\nThe two contestants in the suit, the '\"\"\"'' Jamslzed1• d f d d h I . t'ff . d h . . ht .\n\nGmwa/la and e en ant an t e p arn 1 s, acqmre t eir ng s m sons. this property during the years 1924-25.\n\nThe defendant came in as a mortgagee as above stated, while the Mahajan J. plaintiffs came in as ijaradar and assignee of certain mortgage rights.\n\nThe pla.intiffs since then have been receiving the rent according to the grant made by the Talukdari Officer. In the year 1933 the appellant purchased the equity of redemption of the suit property at a court auction and became vested with all the rights of Manila! Maganlal in this property, the value of which has now been estimated in the neighbourhood of Rs. 38,000.\n\nIn the year 1933 the plaintiffs discovered that the defendant had no registered lease in his favour and therefore in law he was not entitled to the rights of a permanent tenant in respect of the survey numbers in dispute.\n\nThey therefore instituted the present suit for ejectment of the defendant. In the 2nd and 3rd paragraphs of the plaint it was admitted that in the course of the correspondence with the Government of Born bay a lease was negotiated between the firm of Shah .Manila!\n\nMagan Jal and the Talukdari Settlement Officer in respect of the survey numbers in dispute for a period of fifty years at an annual rental of Rs. 290, but it was Rtated that because Mani I al Maganlal did not execute a formal registered lease they were in possession rs trespaRsers.\n\nTu the 4th paragraph the authority of t.he Ta I nkdari Settlement Officer to grant the let1se wa<; also rha llenged.\n\nIn the 8th paragraph it was se id that the pin intiffs received the amount of the lease up t£) :Hst , July 1932 and that no notice was necessary to be given, the position of the defendant being that of a tre;; passer It was however alleged that a notice was given on 25th December 1930.\n\n19ll0\n\nShth Maneklilal\n\nlifansukhbliai\n\nv. 1\\fcs.srs, Hor- 1n11sji Jatnslredji\n\nGinwalla anrl\n\nSons.\n\nThe suit was defended on a number of grounds, inter alia, it was pleaded that the plaintiffs had no right to sue in ejectment, not being the landlord inasmuch as they had not obtained any right in the land itself and had not acquired complete title by an assignment of the whole of the interest of the talukdars in the survey numbers in dispute. It was pleaded that the defendant was a permanent tenant of the survey numbers and that the plaintiffs' own conduct debarred them from claiming ejectment.\n\nThe trial Judge decreed the suit on the finding that as no written lease was forthcoming it'should be deemed to be non-existent. It was said that no efforts had been made to show that the Settlement Officer had sanctioned with the approval of the Government a permanent lease in respect of survey Nos. 223 and 225 to Shah Manila! Maganlal. In the concluding part of the judgment it was remarked that the doctrine of equitable part performance could not apply to the present case. Though no specific issue was raised on this point, the matter seems to have been argued at some stage before the trial Judge on facts found or admitted. There was an unsuccessful effort to obtain a review of this decision on the ground of discovery of fresh materials. Thereafter the matter was taken to the court of appeal and it was alleged in ground No. 3 that the Subordinate Judge had erred in not considering the position created in the case by the equitable rule of law embodied in section 53-A of the Transfer of Property Act. On 30th July, 1938, the appellate court made an order of remand under Order XLI, Rule 25, and called for a report on the following two issues :-\n\n(l) Whether the plaintiff was a mortgagee in occupation of S. Nos. 222, 223, 225 and 226?\n\n(2) Whether the suit was bad for non-joinder of parties?\n\nThe trial Judge reported on the remand issues against the plaintiffs. He also admitted in evidence a number of documents produced after remand and one of these is Ex. 181. A point was raised that documents produced after remand were not relevant to the issues remanded\n\nI ' !\n\n' (\n\nand should not be admit1; ed.\n\nThis contention was overruled. The Assistant , Judge aJlowed the appeal on .27th April, 1940. He held that the plaintiffs had failed to establish their right to maintain the suit either as ijaradars or as assignees of mortgage rights. In\n\n19ll0\n\nSheth Maneklalij\n\nMansuklrbluzi\n\n,\\fes.rs. 1/o;- para. 21 of his judgment he observed as follows:- \"'\"sji Jamsliedji \" Ex. 181 shows that the terms of the lease have Gi1rwalla and been reduced to writing though no regular lease &ms. appears to have been executed. On the question whether the lease is binding on the plaintiff, I think section 53-A of the Transfer of the Property Act is a complete answer. Ex. 181 shows that the Talukdari Settlement Officer, with the sanction of the Government, contracted to lease out thfe lands. The writing is . signed by the Government. The terms of the lease can be ascertained clearly from Ex. 181. It is not denied that the defendant's prede:cessor-in-title was put in possession of this property in performance of that contract. Also the acceptance by the Talukdari Settlement Officer as well as by 1he plaintiff of the rent of the property as fixed by that contract shows that the possession of the defendant and his predecessor-in-title was in part performance of the contract of lease.\n\nAdmittedly, there is no registered lease.\n\nThe conditions of section 53-A of the Transfer of Property Act arefully satisfied and the plaintiff cannot, therefore, eject the defendant on the ground that there is no registered lease.\"\n\nFurther on the learned Judge said that section53-A of the Transfer of Property Act embodied the doctrine of estoppel and a plea to that effect had been taken inasmuch as the defendant had pleaded that the plaintiffs were es topped by their conduct from asking for possession and that therefore no s:eparate issue was raised on this point.\n\nThe unsuccessful plaintiffs went up in second appeal against this decision to the High Court of Bombay.\n\nThe High Court allowed the appeal and modified the decree of the Assistant Judge. It decreed the plaintiffs' suit in respect of survEiy Nos. 223 and 225 and dismissed the suit in respect of survey Nos. 222 and 226.\n\nMahaja1' J.\n\n195'> On the question of the plain tiffs' title to maintain the suit the High Court reached the following decision:- Sheth Maneklul\n\nMan&ukhbal \"If it were necessary we would hold that the v. plaintiff has sufficiently proved that it is entitled to Messrs. Ho,- maintain this suit in its capacity as ijaradar as well as ,,,...;; Jamshedfi assignee from the moi\\tgagees. But we think even apart G.n'::a and from that, plaintiff is entitled to bring this suit because s. on the defendant's own admission he has paid rent to Mahajan J, the plaintiff for three of the suit fields, viz., survey Nos. 223, 225 and 226, and that too not the interest of 84 Dakdas in them but for all the 100 Dakdas. In fact, ever since the plaintiff came on the scene the defendant has treated the plaintiff as the landlord as regards these three survey numbers, and in the present suit, therefore, the defendant cannot dispute the plaintiff's right to sue.\"\n\nIn a later part of the judgment it was observed that in any case Ginwallaas the manager of the plaintiff firm would be entitled to continue the 'Present suit as receiver. On the second question the learned judges of the High Court observed as follows:-\n\n\" We do not think it necessary to decide whether if there had been a signed contract by the transferor in the present case, it would have fallen under section 53-A, because, in our opinion, the correspondence which is summarized in the Government Resolution cannot be regarded as evidence of the contract, and secondly, the terms of the contract also cannot be deduced from the correspondence with any reasonable Mrtainty. We, therefore, hold that the Government Resolution on which the defendant relies is no evidence of the writing\n\nof a contract referred to in section 53-A of the Transfer 1 of Property Act, and apart from that thedefendant has : no legal basis on which he can claim to hold the land either as a permanent lessee or for a particular period.\" I\n\nThe principal questions canvassed in this appeal are, , whether the plaintiff firm has proved its title to main- I tain the present suit in ejectment against the defendant and whether the defendant is entitled to the benefit of the provisions of see. 53-A of the Transfer of Property Act. The question as to the maintainability of the suit\n\nagainst the defendant without & proper notice was raised before the High Court but permission to argue it was refused because the matter had not been raised in either of the lower Courts.\n\n19ll0\n\n.Shells Manelllal\n\nJlonsukhbhai\n\nThe appeal was elaborately argued before us by the Messrs. Hor. learned counsel for the parties, but in our view, it is musji Jamshedji not necessary to consider and decide all the points urged Ginwauu a11d because we consider that the Assistant Judge was right Sons. in entertaining and giving effect to the plea under sec. 53-A of the Transfer of Property Act and we are satisfied that no substantial grounds existed for reversing that decision in second appeal. This section introduced in the Transfer of Property Act in 1929 is in these terms :-\n\n\"Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty,\n\na~1d the transferee has, in part-performance of the contract, taken possession of the property or any part thereof ....... and has done some act in furtherance of the contract; ed the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that the contract, though required to be registered, has not been registered ....... . the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contraet ........ \".\n\nThe section is a partial importation in the statute law of India of the English doctrine of part performance. It furnishes a statutory defence to a person who has no registered title deed in his favour to maintain his possession if he can prove a written and signed contract in his favour and some action on his part in part-performance of that contract. In order to find whether the defendant in the present case has satisfied the conditions of the\n\nMahcja11 J.\n\n1950 section, it has to be held proved that the Talukdari Settlement Officer contracted to give a lease of the Theth Mandia!\n\nMansukhbai survey numbers in suit to Manilal Maganlal by a .,, writing signed by him and that from this writing the Mmn. Hor terms of the tenancy can be ascertained with reasonable mus;• Jamshedii certainty. It has further to be held established that\n\nGintoalla and the transferee took possession of the property or did\n\ns..... any acts in furtherance of the contract. It may be\n\nMaha; an J. mentioned that in cases of lease the legislature has recognized that the equity of part performance is an active equity as in English Jaw 'and is sufficient to support an independent action by the plaintiff. (Vide S. 27 -A of the Specific Relief Act). This section however applies to contracts executed after 1st Rpril, 1930, and has no application in the present case; but there can be no manner of doubt that the defence under Section 53-A is available to a person who has an agreement of lease in his favour though no lease has been executed and registered.\n\nWe are satisfied that the defendant has fulfilled both the conditions necessary to attract the application of the section in the present case. The High Court was in error when it held that the correspondence summarised in Ex. 181 eould not be treated as evidence of the contract and that its terms could not be reasonably deduced from this document. It is no doubt true that Ex. 181 is merely secondary evidence of the agreement of lease but it is equally true that it is a very reliable piece of secondary evidence coming as it does from government records. It furnishes proof of the fact that there was an acceptance in writing under which the con tract to transfer the survey num hers in suit by way of lease was effected by the Talukdari Settlement Officer in favour of Manila!· Maganlal.\n\nThe offer was also in writing signed by the offerer.\n\nThe Government Resolution which made the agreement binding was also in writing and was signed by competent authority. No objection as to admission of secondary evidence could be taken in this case as tho primary evidence was in the possession either of the plaintiff or of the talukdars, the predecessors in interest and in spite of notice it was not produced. Reference in this connection may be made to the statement of the\n\nplaintiff in the witness box which ie to the foUowing 19llO effect :-· Sheu. Mon11\"\"1I \"l must have read thecorrespondence with T.S.O.\n\nManaullbhoi since it is so recited in the para. 2 of the plaint. I cannot v. say wheth~ that correspondence is in my office or with M~•· Hor .. the talukdare. I cannoteay without that correspond- \"'';/;..f::a•1::.:.f'. ence as to whether T.S.O. has called survey No . . 226 · Som as Lalliti and hence the 1balukdars are not entitled to any income for it. I aleCI cannot say without that Maha/qn J. correspondence that the irents of survey Nos. 225 and 223 were fixed at Rs. 135 :11.nd R1t. 115 respectively and that Re. 45 were to be taken by way of sugar .... \"\n\nIn another part of the 'same statement he said that the talukdars had got the records of the time preceding his D1anagement. It appears that the original documents were returned to tho talukdars after the discharge of the Talukdari SettlemEint Officer and were in the possession and power of the plaintiff or his predecessors in interest and they were not produced by him in spite of notice. Para. 2 of the plaint clearly recites that there was correspondence between the Talukdari Settlement Officer and the defendant's predecessor in interest under which a lease was negotiated. The plaintiff's knowledge of this correspondenoe and its contents is thus prima facie established and leads to the conclusion that it was in his possession or power and he has intentionally withheld it. Without.a perusal of this correspondence the facts recited in para. 2 of the plaint could not ha.Ye been mentioned in the plaint. Once it is held that Ex. 181 is good secondary evidence of the agreement of lease, there can then be no hesitation in holding that by an offer and an acceptance mad1~ in writing and signed by the respective parties an agreement was completed between the Talukdari Settlement Officer and the predecessor in interest of the defendant and that necessary sanction of t.he Government was also in writing signed by the officer concerned. It bas further to be held that the terms of the contract can be fairly deduced from the recitals of this document. The only in1portant clause with which we are concerned in the present case is as to the nature of the tenam}y. It is clearly recited therein\n\n19llO\n\nSINlh Maneklal Manaukhbhai\n\nMess. Hoy-. tlWsji }amshedji\n\nGinwaUa and\n\nSons.\n\nMahajan}.\n\nthat the lease was to be of a permanent character and the terms as regards rental could be revisE'd after a period of fifty years.\n\nThe rent payable is recited in unambiguous terms in the document as Rs. 290 per annum.\n\nIt was not denied that the lessee took possession after this agreement was arrived at. It was argued that possession was taken before sanction of the Government was obtained in September, 1917. There is however no proof of this except a bare recital in the Talukdari Settlement Officer's letter to Government that he had permitted 'the defendant to enter on the land in anticipation of Government's sanction. As already pointed out, the possession was with the tenants and had to be taken after entering into an arrangement with them or by issuing notice to them. It is not possible to think that this could have happened in such a short space of time as elapsed between the middle of July and the beginning of September. In any case the factory could not have been built before the sanction of the Government was received. Not only did the lessee take possession in part-performance of the agreement but he offered the rent agreed upon and paid it not only to the Talukdari Settlement Officer but to all those who subsequently managed the interest of the talukdars in the survey numbers in dispute. The original lessee after having entered into possession of the property effected a mortgage of it in favour of the defendant. The defendant advanced a substantial sum on security of the pr.)perty to the lessee.\n\nThe equity of redemption was sold at an auction sale. The defendant and his predecessor in interest were willing to perform their part of the contract.\n\nAs a matter of fact, they have performed the whole of it. All t.lw.t r_emains to be done is the execution of a lease deed by the lessor in favour of the lessee and of getting it registered. The plaintiff in para. 6 of the plaint in unambiguous terms admitted that he received the amount of the lease up to 31st July, 1932, in respect of the survey numbers in dispute.\n\nIt is difficult to imagine what lease he was referring to in the absence of a registered deed of lease. It oould only mean the agreement of lease given in writing\n\nand signed by the Talukdari Settlement Officer.\n\nIt is in pursuance of this agreement of lease that all the subsequent acts above mentioned were done.\n\nIt may also be observed that an agreement of lease creating a present demise but not registered is admissible under S. 49 of the Indian Registration Act as evidence of part performance and Ex .. 181 is secondary evidence of that agreement. A formed lease is not necessary to attract the application of S. 53-A of the Transfer of Property Act.\n\nAll that is required is that an agreement in writing signed by the transferor can be gathered from the evidence. The correspondence mentioned in Ex. 181 fully establishes that fact.\n\nWe are therefore of the opinion that the learned Assistant Judge rightly dismissed the plaintiff's suit and the High Court was in error in interfering with that decision in second appeal. The result therefore is that the appeal is allowed, the decision of the Assistant Judge restored and that of the High Court reversed.\n\nThe circumstances of the case are such that we would make no order as to costs. The defendant was at fault in not producing all the documentary evidence at the proper stage of the case and he has been enabled to - avail himself of the defence furnished to him under S. 53-A by reason of the admission in evidence after remand of Ex. 181, which though not properly admitted at that stage was not rejected by the High Court and could not be re1ected at the stage when .we dealt with the case.\n\nTh~ parties are therefore left to bear their own costs throughout.\n\nAppeal allowed.\n\nAgent for the appellant : S. P. Varma.\n\nAgent for the respondent : Ganpat Rai.\n\n1-~ S C India/~8\n\nSheth Manek/a/\n\nMansukhbhai\n\nMessrs. Hormusii Jamshtdji\n\nGinwalla and\n\nSons.\n\nMahajan].", "total_entities": 81, "entities": [{"text": "75\n\nSHETH MANEKLAL MANSUKHBHAI", "label": "PETITIONER", "start_char": 30, "end_char": 60, "source": "metadata", "metadata": {"canonical_name": "75\n\nSHETH MANEKLAL MANSUKHBHAI", "offset_not_found": false}}, {"text": "HORMUSJI JAMSHEDJI GINWALLA\n\nAND SONS", "label": "RESPONDENT", "start_char": 70, "end_char": 107, "source": "metadata", "metadata": {"canonical_name": "HORMUSJI JAMSHEDJI GINWALLA AND SONS", "offset_not_found": false}}, {"text": "SAIYID F AZL ALI", "label": "JUDGE", "start_char": 111, "end_char": 127, "source": "metadata", "metadata": {"canonical_name": "SIR SYED FAZL ALI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 129, "end_char": 147, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN*", "offset_not_found": false}}, {"text": "MUKHERJEA JJ.", "label": "JUDGE", "start_char": 153, "end_char": 166, "source": "metadata", "metadata": {"canonical_name": "BIJAN KUMAR MUKHERJEA", "offset_not_found": false}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 169, "end_char": 193, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "s. 58", "label": "PROVISION", "start_char": 208, "end_char": 213, "source": "regex", "metadata": {"linked_statute_text": "Transfer of Property Act", "statute": "Transfer of Property Act"}}, {"text": "5th September, 1917", "label": "DATE", "start_char": 1097, "end_char": 1116, "source": "ner", "metadata": {"in_sentence": "ject to the sanction of the Government and the terms of the lease and by a Resolution dated 5th September, 1917, the Government granted the sanction."}}, {"text": "s. 53", "label": "PROVISION", "start_char": 2107, "end_char": 2112, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 2122, "end_char": 2146, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "High Court of Judicature at Bom-\n\nSheu. M\"\"'lrlal bay: Appeal No. XXXVII of 1949.", "label": "COURT", "start_char": 2314, "end_char": 2395, "source": "ner", "metadata": {"in_sentence": "March l.\n\n19.'50 APPEAL from the High Court of Judicature at Bom-\n\nSheu."}}, {"text": "ss1", "label": "PROVISION", "start_char": 2632, "end_char": 2635, "source": "regex", "metadata": {"statute": null}}, {"text": "R.J. Thakur", "label": "LAWYER", "start_char": 2769, "end_char": 2780, "source": "ner", "metadata": {"in_sentence": "R.J. Thakur, for the appellant."}}, {"text": "Nanak Ohand Pandit", "label": "LAWYER", "start_char": 2802, "end_char": 2820, "source": "ner", "metadata": {"in_sentence": "Nanak Ohand Pandit, (Diwan Oharanjit Lal, with him), for the respondents."}}, {"text": "Diwan Oharanjit Lal", "label": "LAWYER", "start_char": 2823, "end_char": 2842, "source": "ner", "metadata": {"in_sentence": "Nanak Ohand Pandit, (Diwan Oharanjit Lal, with him), for the respondents."}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 2951, "end_char": 2958, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-This is an appeal from the judgment and decree of the High Court of Bombay dated 9th March 1943, and made in Second Appeal No.", "canonical_name": "MAHAJAN"}}, {"text": "Rampura", "label": "GPE", "start_char": 3418, "end_char": 3425, "source": "ner", "metadata": {"in_sentence": "222, 223, 225 and 226 situate in Rampura in Ahmadabad district and for mesne profits, as early as July, 1933, and during its 17 years' span of life it had a somewhat chequered career."}}, {"text": "Ahmadabad", "label": "GPE", "start_char": 3429, "end_char": 3438, "source": "ner", "metadata": {"in_sentence": "222, 223, 225 and 226 situate in Rampura in Ahmadabad district and for mesne profits, as early as July, 1933, and during its 17 years' span of life it had a somewhat chequered career."}}, {"text": "Ahmedabad district", "label": "GPE", "start_char": 4386, "end_char": 4404, "source": "ner", "metadata": {"in_sentence": "There is a talukdari estate called the Bnankoda 1960 estate in Viramam taluka in Ahmedabad district."}}, {"text": "section 28", "label": "PROVISION", "start_char": 4756, "end_char": 4766, "source": "regex", "metadata": {"statute": null}}, {"text": "Bombay Act VI of 1888", "label": "STATUTE", "start_char": 4803, "end_char": 4824, "source": "regex", "metadata": {}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 4852, "end_char": 4859, "source": "ner", "metadata": {"in_sentence": "The firm of Shah Manila} Mahajan J.\n\nMaganlal and Bros. (predecessors in interest of the appellant) desired to erect a ginning factory on survey Nos.", "canonical_name": "MAHAJAN"}}, {"text": "Government of Bombay", "label": "ORG", "start_char": 5244, "end_char": 5264, "source": "ner", "metadata": {"in_sentence": "10795of1917 dated 5th September, 1917, the Government of Bombay granted the requisite sanction."}}, {"text": "9th December 1916", "label": "DATE", "start_char": 5523, "end_char": 5540, "source": "ner", "metadata": {"in_sentence": "On 9th December 1916 an application was made by Shah Manilal Maganlal in writing signed by him to the Talukda.ri Settlement Officer offering to take a permanent lease of the abov1i mentioned survey numbers on an annual rental of Rs."}}, {"text": "Shah Manilal Maganlal", "label": "OTHER_PERSON", "start_char": 5568, "end_char": 5589, "source": "ner", "metadata": {"in_sentence": "On 9th December 1916 an application was made by Shah Manilal Maganlal in writing signed by him to the Talukda.ri Settlement Officer offering to take a permanent lease of the abov1i mentioned survey numbers on an annual rental of Rs.", "canonical_name": "Shah .Manila!\n\nMagan Jal"}}, {"text": "rnth July, 1917", "label": "DATE", "start_char": 5807, "end_char": 5822, "source": "ner", "metadata": {"in_sentence": "On rnth July, 1917, the said officer accepted provisionally this offer after taking in to consideration the objections raised by some of the talukdars in respect of the grant of a lease."}}, {"text": "section 29", "label": "PROVISION", "start_char": 6414, "end_char": 6424, "source": "regex", "metadata": {"statute": null}}, {"text": "Sheth Maneklal", "label": "PETITIONER", "start_char": 6468, "end_char": 6482, "source": "ner", "metadata": {"in_sentence": "19!50\n\nSheth Maneklal\n\nMansrlkhbai\n\n•• Messrs. Hor musji Jamshedji\n\nGinwalla and\n\nSons.", "canonical_name": "75\n\nSHETH MANEKLAL MANSUKHBHAI"}}, {"text": "Maliajan", "label": "JUDGE", "start_char": 6550, "end_char": 6558, "source": "ner", "metadata": {"in_sentence": "Maliajan J,\n\nThe conditions of the lease agreed upon by the parties were annexed with this letter and a copy of the offer was also sent to Government."}}, {"text": "20th July, 1917", "label": "DATE", "start_char": 7461, "end_char": 7476, "source": "ner", "metadata": {"in_sentence": "On 20th July, 1917, the Commissioner forwarded the papers to Government with his recommendations and the Government on 5th September, 1917, sanctioned the arrangement agreed to by the Talukdari Settlement Officer with Shah Manila!"}}, {"text": "Shah Manila! Maganlal", "label": "OTHER_PERSON", "start_char": 7676, "end_char": 7697, "source": "ner", "metadata": {"in_sentence": "On 20th July, 1917, the Commissioner forwarded the papers to Government with his recommendations and the Government on 5th September, 1917, sanctioned the arrangement agreed to by the Talukdari Settlement Officer with Shah Manila!", "canonical_name": "Shah .Manila!\n\nMagan Jal"}}, {"text": "Shah", "label": "OTHER_PERSON", "start_char": 7992, "end_char": 7996, "source": "ner", "metadata": {"in_sentence": "It is thus clear that a binding agreement to lease the survey numbers in question was effected between the Talukdari Settlement Officer and Shah Manila!"}}, {"text": "Manila! Maganlal", "label": "OTHER_PERSON", "start_char": 7997, "end_char": 8013, "source": "ner", "metadata": {"in_sentence": "It is thus clear that a binding agreement to lease the survey numbers in question was effected between the Talukdari Settlement Officer and Shah Manila!", "canonical_name": "Mani I al Maganlal"}}, {"text": "4th May, 1924", "label": "DATE", "start_char": 8802, "end_char": 8815, "source": "ner", "metadata": {"in_sentence": "\\ I\n\nOn 4th May, 1924, a pe>ssessory mortgage of the ginn 1960 ing factory along with all its buildings 'Yas effected by Sltdh Maneklal Shah Manila!"}}, {"text": "Sltdh Maneklal Shah Manila! Maganlal", "label": "OTHER_PERSON", "start_char": 8915, "end_char": 8951, "source": "ner", "metadata": {"in_sentence": "\\ I\n\nOn 4th May, 1924, a pe>ssessory mortgage of the ginn 1960 ing factory along with all its buildings 'Yas effected by Sltdh Maneklal Shah Manila!"}}, {"text": "Mahajan", "label": "PETITIONER", "start_char": 9393, "end_char": 9400, "source": "ner", "metadata": {"in_sentence": "The defendant came in as a mortgagee as above stated, while the Mahajan J. plaintiffs came in as ijaradar and assignee of certain mortgage rights.", "canonical_name": "MAHAJAN"}}, {"text": "Manila! Maganlal", "label": "GPE", "start_char": 9734, "end_char": 9750, "source": "ner", "metadata": {"in_sentence": "In the year 1933 the appellant purchased the equity of redemption of the suit property at a court auction and became vested with all the rights of Manila!"}}, {"text": "Government of Born bay", "label": "ORG", "start_char": 10256, "end_char": 10278, "source": "ner", "metadata": {"in_sentence": "In the 2nd and 3rd paragraphs of the plaint it was admitted that in the course of the correspondence with the Government of Born bay a lease was negotiated between the firm of Shah .Manila!"}}, {"text": "Shah .Manila!\n\nMagan Jal", "label": "OTHER_PERSON", "start_char": 10322, "end_char": 10346, "source": "ner", "metadata": {"in_sentence": "In the 2nd and 3rd paragraphs of the plaint it was admitted that in the course of the correspondence with the Government of Born bay a lease was negotiated between the firm of Shah .Manila!", "canonical_name": "Shah .Manila!\n\nMagan Jal"}}, {"text": "Mani I al Maganlal", "label": "OTHER_PERSON", "start_char": 10519, "end_char": 10537, "source": "ner", "metadata": {"in_sentence": "290, but it was Rtated that because Mani I al Maganlal did not execute a formal registered lease they were in possession rs trespaRsers.", "canonical_name": "Mani I al Maganlal"}}, {"text": "Shah Manila! Maganlal", "label": "GPE", "start_char": 11948, "end_char": 11969, "source": "ner", "metadata": {"in_sentence": "223 and 225 to Shah Manila!"}}, {"text": "section 53", "label": "PROVISION", "start_char": 12600, "end_char": 12610, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 12620, "end_char": 12644, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "30th July, 1938", "label": "DATE", "start_char": 12649, "end_char": 12664, "source": "ner", "metadata": {"in_sentence": "On 30th July, 1938, the appellate court made an order of remand under Order XLI, Rule 25, and called for a report on the following two issues :-\n\n(l) Whether the plaintiff was a mortgagee in occupation of S. Nos."}}, {"text": "Sheth Maneklalij\n\nMansuklrbluzi", "label": "PETITIONER", "start_char": 13500, "end_char": 13531, "source": "ner", "metadata": {"in_sentence": "In\n\n19ll0\n\nSheth Maneklalij\n\nMansuklrbluzi\n\n,\\fes.rs."}}, {"text": "section 53", "label": "PROVISION", "start_char": 13835, "end_char": 13845, "source": "regex", "metadata": {"statute": null}}, {"text": "section 53", "label": "PROVISION", "start_char": 14593, "end_char": 14603, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 14613, "end_char": 14637, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 14823, "end_char": 14847, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "High Court of Bombay", "label": "COURT", "start_char": 15187, "end_char": 15207, "source": "ner", "metadata": {"in_sentence": "The unsuccessful plaintiffs went up in second appeal against this decision to the High Court of Bombay."}}, {"text": "Mahaja1", "label": "JUDGE", "start_char": 15426, "end_char": 15433, "source": "ner", "metadata": {"in_sentence": "Mahaja1' J.\n\n195'> On the question of the plain tiffs' title to maintain the suit the High Court reached the following decision:- Sheth Maneklul\n\nMan&ukhbal \"If it were necessary we would hold that the v. plaintiff has sufficiently proved that it is entitled to Messrs. Ho,- maintain this suit in its capacity as ijaradar as well as ,,,...;; Jamshedfi assignee from the moi\\tgagees.", "canonical_name": "MAHAJAN"}}, {"text": "Sheth Maneklul", "label": "JUDGE", "start_char": 15556, "end_char": 15570, "source": "ner", "metadata": {"in_sentence": "Mahaja1' J.\n\n195'> On the question of the plain tiffs' title to maintain the suit the High Court reached the following decision:- Sheth Maneklul\n\nMan&ukhbal \"If it were necessary we would hold that the v. plaintiff has sufficiently proved that it is entitled to Messrs. Ho,- maintain this suit in its capacity as ijaradar as well as ,,,...;; Jamshedfi assignee from the moi\\tgagees.", "canonical_name": "75\n\nSHETH MANEKLAL MANSUKHBHAI"}}, {"text": "Ginwallaas", "label": "OTHER_PERSON", "start_char": 16440, "end_char": 16450, "source": "ner", "metadata": {"in_sentence": "In a later part of the judgment it was observed that in any case Ginwallaas the manager of the plaintiff firm would be entitled to continue the 'Present suit as receiver."}}, {"text": "section 53", "label": "PROVISION", "start_char": 16780, "end_char": 16790, "source": "regex", "metadata": {"statute": null}}, {"text": "section 53", "label": "PROVISION", "start_char": 17193, "end_char": 17203, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 17658, "end_char": 17682, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Jlonsukhbhai", "label": "OTHER_PERSON", "start_char": 17951, "end_char": 17963, "source": "ner", "metadata": {"in_sentence": "19ll0\n\n.Shells Manelllal\n\nJlonsukhbhai\n\nThe appeal was elaborately argued before us by the Messrs. Hor."}}, {"text": "Ginwauu", "label": "OTHER_PERSON", "start_char": 18159, "end_char": 18166, "source": "ner", "metadata": {"in_sentence": "learned counsel for the parties, but in our view, it is musji Jamshedji not necessary to consider and decide all the points urged Ginwauu a11d because we consider that the Assistant Judge was right Sons."}}, {"text": "sec. 53", "label": "PROVISION", "start_char": 18285, "end_char": 18292, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 18302, "end_char": 18326, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 18461, "end_char": 18485, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "India", "label": "GPE", "start_char": 19486, "end_char": 19491, "source": "ner", "metadata": {"in_sentence": "The section is a partial importation in the statute law of India of the English doctrine of part performance."}}, {"text": "Mahcja11", "label": "JUDGE", "start_char": 19878, "end_char": 19886, "source": "ner", "metadata": {"in_sentence": "In order to find whether the defendant in the present case has satisfied the conditions of the\n\nMahcja11 J.\n\n1950 section, it has to be held proved that the Talukdari Settlement Officer contracted to give a lease of the Theth Mandia!"}}, {"text": "Manilal Maganlal", "label": "OTHER_PERSON", "start_char": 20054, "end_char": 20070, "source": "ner", "metadata": {"in_sentence": "Mansukhbai survey numbers in suit to Manilal Maganlal by a .,,", "canonical_name": "Mani I al Maganlal"}}, {"text": "Gintoalla", "label": "WITNESS", "start_char": 20269, "end_char": 20278, "source": "ner", "metadata": {"in_sentence": "It has further to be held established that\n\nGintoalla and the transferee took possession of the property or did\n\ns..... any acts in furtherance of the contract."}}, {"text": "S. 27", "label": "PROVISION", "start_char": 20623, "end_char": 20628, "source": "regex", "metadata": {"statute": null}}, {"text": "Specific Relief Act", "label": "STATUTE", "start_char": 20639, "end_char": 20658, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "1st Rpril, 1930", "label": "DATE", "start_char": 20718, "end_char": 20733, "source": "ner", "metadata": {"in_sentence": "This section however applies to contracts executed after 1st Rpril, 1930, and has no application in the present case; but there can be no manner of doubt that the defence under Section 53-A is available to a person who has an agreement of lease in his favour though no lease has been executed and registered."}}, {"text": "Section 53", "label": "PROVISION", "start_char": 20838, "end_char": 20848, "source": "regex", "metadata": {"statute": null}}, {"text": "Manila", "label": "GPE", "start_char": 21745, "end_char": 21751, "source": "ner", "metadata": {"in_sentence": "It furnishes proof of the fact that there was an acceptance in writing under which the con tract to transfer the survey num hers in suit by way of lease was effected by the Talukdari Settlement Officer in favour of Manila!·"}}, {"text": "Maneklal Manaukhbhai", "label": "OTHER_PERSON", "start_char": 24562, "end_char": 24582, "source": "ner", "metadata": {"in_sentence": "It is clearly recited therein\n\n19llO\n\nSINlh Maneklal Manaukhbhai\n\nMess."}}, {"text": "31st July, 1932", "label": "DATE", "start_char": 26637, "end_char": 26652, "source": "ner", "metadata": {"in_sentence": "6 of the plaint in unambiguous terms admitted that he received the amount of the lease up to 31st July, 1932, in respect of the survey numbers in dispute."}}, {"text": "S. 49", "label": "PROVISION", "start_char": 27132, "end_char": 27137, "source": "regex", "metadata": {"statute": null}}, {"text": "Registration Act", "label": "STATUTE", "start_char": 27152, "end_char": 27168, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "S. 53", "label": "PROVISION", "start_char": 27318, "end_char": 27323, "source": "regex", "metadata": {"statute": null}}, {"text": "Transfer of Property Act", "label": "STATUTE", "start_char": 27333, "end_char": 27357, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "S. 53", "label": "PROVISION", "start_char": 28132, "end_char": 28137, "source": "regex", "metadata": {"statute": null}}, {"text": "S. P. Varma", "label": "LAWYER", "start_char": 28469, "end_char": 28480, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant : S. P. Varma."}}, {"text": "Ganpat Rai", "label": "LAWYER", "start_char": 28510, "end_char": 28520, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent : Ganpat Rai."}}, {"text": "Sheth Manek", "label": "PETITIONER", "start_char": 28541, "end_char": 28552, "source": "ner", "metadata": {"in_sentence": "1-~ S C India/~8\n\nSheth Manek/a/\n\nMansukhbhai\n\nMessrs. Hormusii Jamshtdji\n\nGinwalla and\n\nSons.", "canonical_name": "75\n\nSHETH MANEKLAL MANSUKHBHAI"}}, {"text": "Hormusii Jamshtdji", "label": "LAWYER", "start_char": 28578, "end_char": 28596, "source": "ner", "metadata": {"in_sentence": "1-~ S C India/~8\n\nSheth Manek/a/\n\nMansukhbhai\n\nMessrs. Hormusii Jamshtdji\n\nGinwalla and\n\nSons."}}]} {"document_id": "1950_1_766_780_EN", "year": 1950, "text": "SUI'REM:E COURT RE.PORTS (1950]\n\nthat the impugned statute does not stand the test of reasonableness and is therefore void.\n\nChi.'IJ-tama:n Rao\n\nThe result therefore is that the orders issued by the Tiu State of Depl, lty Commissioner on 13th June 1950 and 26th\n\nMndhya September 1950 are void, inoperative and ineffective.\n\nPrad•.••· We therefore direct the respondents not to enforce the\n\nM, ah.ajan J.\n\nNov. li.\n\nprovisions contained in section 4 of the Act agan.st the petitioners in any manner whatsoever. The pet1ttone>s\n\nwill have their costs of these proceedings in the two petitions.\n\nAgent for the petitioners Rajinder Narain.\n\nPetitions allowed.\n\nm Nos. 78 and 79:\n\nAgent for the respondent m\n\nP.A. lv/hta.\n\nRAM GOPAL\n\nII.\n\nNos. 78 and 79:\n\nNAND LAL AND OTHERS\n\n[SAIYID FAZL Au, MUKHERJEA and CHANDRA-\n\nSEKHARA AIYAR JJ.]\n\nHindu Law-Gift to female owner-Construction-Gift for maintenance-Estate conveyed, whether absolute or limited-Use of\n\nthe word 'Malik', effect of. ·\n\nIn construing a document whether in English or in vernacular the fundamental rule is to ascertain the intention from the words used; the surrounding circumstances are to be considered but tbat is only for the purpose of finding out the intended meaning of the words which have actually been employed.\n\nTo convey an absolute estate to a Hindu female, no express power of a.lienaticn need be given ; it is enough if words of such amplit11de are used as would convey full rights of ownership.\n\nThe term 'Malik' when used in a will or other document as descriptive of the position which a. devisee or donee is intended to hold, has been held apt to describe an owner possessed of lull proprietary rights, including a. full right of alienation, unless there is something in the context or in the surrounding circumstances to indicate that such f11ll 11roprietory rights were not intended to\n\nbe conferred,\n\nThe mere fact that • gift of property is made fot the Bupport and maintenance of a female relation could nob be taken to be a prima facie indication of the intention of the in v. Shib Narayan (49 I.A. 25), Biswanath Prasad v. Chandrika (60 I.A. 56) relied on.\n\nRaja Ram Baksh v. Arjun (60 I.A. 56), Woodayaditta Deb v.\n\nMukoond (22 W.R. 229) distinguished.\n\nAPPELLATE juRISDICTION: Civil Appeal No. LIX of 1949.\n\nAppeal from the judgment of the Allahabad High Court (Verma and Yorke JJ.) dated 6th September,\n\n1943 in First Appeal No. 3 of 1940.\n\nP. L. Banerjee (B. Banerjee, with him), for the appellant.\n\nJ!lliO\n\nRam Gopa.l v.\n\nNa.nd Lat and\n\nOthe1~.\n\nRam Gopal\n\nNana. Lal and\n\nOthers.\n\nJluleherjtJ'.l J.\n\nS. P. Sinha (N. C. Sen, with him), for the respondents.\n\n1950. November 14. The court delivered judgment as follows :- M uKHERJEA ].-This appeal is directed against an appellate judgment of a Division Bench of the Allahabad High Court dated September 6, 1943, by which the learned Judges reversed a decision of the Civil Judge, Etawah. made in Original Suit No. 28 of 1936.\n\nThe suit was one commenced by the plaintiff, who is respondent No. 1 in this appeal, for recovery of possession of two items of immovable property-one, a residential house and other, a shop-both of which are situated in the town of Etawah.\n\nThe properties admittedly formed part of the estate of one Mangat Sen who died sometime towards the end of the last century, leaving behind him, as his heirs, his two widows, Mst. Mithani and Mst. Rani.\n\nMangat Sen had a son named Chhedi Lal and a daughter named Janki Kuar born of his wife Mst. Rani, but both of them died during his lifetime.\n\nChhedi Lal had no issue and he was survived by his widow Mst. Meria, while J anki left a son named Thakur Prasad. J anki's husband married another wife and by her got a son named Babu Ram. On Mangat Sen's death, his properties devolved upon his two widows, and Mst. Rani having died subsequently, Mst. Mithani came to hold the entire estate of her husband in the restricted rights of a Hindu widow.\n\nOn 27th November 1919, Mst.\n\nMithani surrendered the whole estate of her husband by a deed of gift in favour of Thakur Prasad who was the nearest reversioner at that time. Thakur Prasad died in 1921, leaving a minor son named Nand Lal who succeeded to his properties and this Nand Lal is the plaintiff in the suit out of which this appeal arises.\n\nOn 27th October 1921, there was a transaction entered into between Babu Ram on his own behalf as well as guardian of infant Nand Lal on tlie one hand and Mst. Meria, the widow of Chhedi Lal, on\n\nthe other, by which two items of property which are the subject-matter of the present litigation were conveyed to Meria by a deed of transfer which has been described as a Tamliknama; and she on her part executed a deed of relinquishment renouncing her claims to every portion of the estate left by Mangal Sen. It is not disputed that Meria took possession of the properties on the basis of the Tamliknama and on 10th April 1923 she executed a will, by which these properties were bequeathed to her three nephews, who are the sons of her brother Sunder Lal. Meria died on 19th June 1924.\n\nOne Ram Dayal had obtained a money decree against. Sunder Lal and his three sons, and in execution of that decree the properties in suit were attached and put up to sale and they were purchased by Ram Dayal himself on 30th January\n\n1934. On 1st June 1936, the present suit was instituted by Nand Lal and he prayed for recovery of possession of these two items of property on the allegation that as they were given to Mst. Meria for her maintenance and residence, she could enjoy the same only so long as she lived and after her death, they reverted to the plaintiff. Sunder Lal, the brother of Meria, was made the first defendant in the suit, and his three sons figured as defendants Nos. 2 to 4.\n\nDefendant No. 5 is a lady named Chimman Kunwar in whose favour Sunder Lal was alleged to have executed a deed of transfer in respect of a portion of the disputed property.\n\nRam Dayal, the decree-holder auction purchaser, died in May 1935 and his properties vested in his daughter's son Ram Gopal under a deed of gift executed by him in favour of the latter.\n\nOn 1st September 1938, Ram Gopal was added as a party defendant to the suit on the plaintiff's application and he is defendant No. 6. The two other defendants, namely, defendants 7 and 8, who were also made parties at the same time, are respectively the widow and an alleged adopted son of Ram Dayal.\n\nThe suit was contested primarily by defendant No. 6, and the substantial contentions raised by him in his written statement were of a two-fold character.\n\nRam GopaZ\n\nNana. Lal and\n\nOthera.\n\nMukherjea J.\n\nRam Gopal\n\nNa.nd Ltil and\n\nOt1uw&.\n\nMukh11rjea J.\n\nThe first and the main contention was that Mst. Meria got an absolute title to the disputed properties on the strength of the 'Tamliknama' executed in her favour by the guardian of the plaintiff and after her death, the properties passed on to the three sons of Sunder Lal who were the legatees under her will.\n\nRam Dayal, it was said, having purchased these properties in execution of a money decree against Sunder Lal and his three sons acquired a valid title to them. The other contention raised was that the suit was barred by limitation. The trial Judge decided both these points m favour of the contesting defendant and dismissed the plaintiff's suit. On appeal to the High Court, the judgment of the Civil Judge was set aside and the plaintiff's suit was decreed.\n\nThe defendant No. 6 has now come up on appeal to this court and Mr. Peary Lal Banerjee, who appeared in support of the appeal, pressed before us both the points upon which the decision of the High Court has been adverse to his client.\n\nThe first point raised by Mr. Banerjee turns upon the construction to be placed upon the document executed by Babu Ram on his own behalf as well as on behalf of Nand Lal then an infant, by which the properties in dispute were transferred to Mst. Meria by way of a 'Tamliknama'. The question is whether the transferee got, under it, an absolute interest in the properties, which was heritable and alienable or was it the interest of a life tenant merely.\n\nThe document is by no means a complicated one.\n\nIt begins by a recital of the events under which Nand Lal became the sole owner of the properties left by Mangal Sen and refers in this connection to the obligation on the part of both Babu Ram and Nand Lal to \"support, maintain and console\" Mst. Meria, the widow of the pre-deceased son of Mangal Sen.\n\nThe document then proceeds to state as follows :\n\n\"I have therefore, of my own accord and free will, without any compulsion or coercion on the part of any one else while in my proper senses made a Tamlik of a double-storied pucca built shop ...... and a house\n\nand a kothri in Etawah ......... worth Rs. 8,000 for 19•0 purposes of residence of the Musammat, owned by the minor aforesaid ...... which at present stands let out on Bam Gopa.1\n\nv. rent to Sunder Lal, brother of Mst. Meria aforesaid ......... in favour of Mst. Meria aforesaid, widow of Chhedi Lal and made her the owner (Malik). If any portion or the whole of the property made a Tamlik of for the purpose mentioned above passes out of the possession of the Musammat aforesaid on account of the claim of Nand Lal minor aforesaid, I and my property of every sort shall be responsible and liable for the same.\"\n\nNand Ji.al and\n\nThis document has got to be read along with the deed of relinquishment, which is a contemporaneous document executed by Meria renouncing all her claims to the property left by Mangal Sen. The deed of relinquishment like thri that court m order that the other matters, which have Prntap Narain been left undecided, may be heard and decided by the\n\nSingh & Others. learned Judges and the case disposed of in accordance with law. The plaintiff appellant is entitled to costs of\n\nfakherjea J. this hearing as well as the costs of the High Court\n\nNov. 30.\n\nagainst defendant No. 1.\n\nAppeal allowed.\n\nAgent for the appellant: Rajindar Narain.\n\nAgent for the respondents: 5. P. Varma.\n\nA. M. MAIR & CO.\n\nGORDHANDASS SAGARMULL. [SAIYID FAZL Au, PATANJALI SASTRI and\n\nMEHR CHAND MAHAJAN JJ.] Arbitration-Contract by broer for sale of goods by \"sold\" and \"bought\" notes-Arbitration clause-Seller denying right of b•roker to enforce arbitral ,; nn clause-~J urisdiction of arbitrators- Valid, ity of award-Construction of contract.\n\nThe appellants, a firm of brokers, entered into a' contract for the sale and purchase of a quantity of jute under a ''sold note\"\n\naddressed to the respondents which they signed as \" A & Co.,\n\nbrokers\" and a \"bought note\" of the same date and for the same quantity of jute addressed to a third person in which also they signed as ' 1 A & Co., brokers\".\n\nThe\" sold note\" contained the usual arbitration clause under which '' all matters, questions, disputes, differences and/.or. cla.ims, arising out of and/or concerning, and/or in connection and/or in consequence of, or relating to, the contract ......... shall be referred to the arbitration of the Bengal Chamber of Commerce.\" A dispute having arisen with regard to a matter wbich admittedly arose out of the contract evidenced by the sold note, the appellants referred the dispute for arbitration.\n\nThe respondents raised before the arbitrators the further contention that as the appellants were only brokers they were not entitled to refer the matter to arbitration.\n\nThe arbitrators made an award in favour of the appellants.\n\nThe respondents wade an application to the High Court under the Indian Arbitration Act for setting aside the award: Held that,. assuming that it was open to the respondents to raise this objection at that stage, inasmuch as this further dispute -", "total_entities": 78, "entities": [{"text": "SARJU PERSHAD", "label": "PETITIONER", "start_char": 31, "end_char": 44, "source": "metadata", "metadata": {"canonical_name": "Sarju Pe,.shad", "offset_not_found": false}}, {"text": "RAJA JWALESH\\VARI PRATAP NARAIN\n\nSINGH", "label": "RESPONDENT", "start_char": 46, "end_char": 84, "source": "metadata", "metadata": {"canonical_name": "RAJA JWALESH\\VARI PRATAP NARAIN\n\nSINGH", "offset_not_found": false}}, {"text": "SAIYID F AZL ALI", "label": "JUDGE", "start_char": 97, "end_char": 113, "source": "metadata", "metadata": {"canonical_name": "SAIYID F AZL ALI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN", "label": "JUDGE", "start_char": 115, "end_char": 133, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN*", "offset_not_found": false}}, {"text": "MUKHERJEA JJ", "label": "JUDGE", "start_char": 139, "end_char": 151, "source": "metadata", "metadata": {"canonical_name": "MUKHERJEA JJ", "offset_not_found": false}}, {"text": "Supreme Court", "label": "COURT", "start_char": 1664, "end_char": 1677, "source": "ner", "metadata": {"in_sentence": "Where the High Court reversed a finding of fact arrived &t by the trial court depending on oral evidence on the ground that the rule that the appellate court should be slow to differ from the conclusions arrived at by the trial judge who had seen and heard the witnesses did not apply to the case as the trial judge did not ba.se bis conclusions on the impressions created in hie mind by the witnesses who deposed before him, but upon the inherent impl'Obabi!ity of the circumstances deposed to, the Supreme Court held that the High Court's approach to the case was not proper and, alter weighing the whole evidence in the case, reversed the finding of the High Court.]"}}, {"text": "Verma", "label": "JUDGE", "start_char": 2219, "end_char": 2224, "source": "ner", "metadata": {"in_sentence": "Appeal from the judgment of the Allahabad High Court (Verma and Yorke JJ.)"}}, {"text": "Yorke", "label": "JUDGE", "start_char": 2229, "end_char": 2234, "source": "ner", "metadata": {"in_sentence": "Appeal from the judgment of the Allahabad High Court (Verma and Yorke JJ.)", "canonical_name": "Yorke"}}, {"text": "M. C. Setalvad", "label": "LAWYER", "start_char": 2289, "end_char": 2303, "source": "ner", "metadata": {"in_sentence": "t95o M. C. Setalvad, Attorney-General for India (Sri .- Narain Andley, with him), for the appellant."}}, {"text": "Narain Andley", "label": "LAWYER", "start_char": 2340, "end_char": 2353, "source": "ner", "metadata": {"in_sentence": "t95o M. C. Setalvad, Attorney-General for India (Sri .- Narain Andley, with him), for the appellant."}}, {"text": "SarJU Pershad", "label": "RESPONDENT", "start_char": 2386, "end_char": 2399, "source": "ner", "metadata": {"in_sentence": "SarJU Pershad L . (", "canonical_name": "Sarju Pe,.shad"}}, {"text": "P. . Banerjee", "label": "RESPONDENT", "start_char": 2429, "end_char": 2442, "source": "ner", "metadata": {"in_sentence": "H j U 'th h' ) f th •.\n\nP. ."}}, {"text": "Jwaleshwari Pratap Narain", "label": "RESPONDENT", "start_char": 2488, "end_char": 2513, "source": "ner", "metadata": {"in_sentence": "Jwaleshwari Pratap Narain\n\n1950."}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 2596, "end_char": 2605, "source": "ner", "metadata": {"in_sentence": "The judgment of the Court\n\nS.ngh .t Others was delivered by\n\nMukherjea J.\n\nMuKHERJEA J.-This is an appeal against a judgment and decree of a Division Bench of the Allahabad High Court dated April 22, 1943, which reversed on appeal those of the Civil Judge of Basti dated 6th of November 1939.", "canonical_name": "MUKHERJEA JJ"}}, {"text": "MuKHERJEA", "label": "JUDGE", "start_char": 2610, "end_char": 2619, "source": "ner", "metadata": {"in_sentence": "The judgment of the Court\n\nS.ngh .t Others was delivered by\n\nMukherjea J.\n\nMuKHERJEA J.-This is an appeal against a judgment and decree of a Division Bench of the Allahabad High Court dated April 22, 1943, which reversed on appeal those of the Civil Judge of Basti dated 6th of November 1939.", "canonical_name": "MUKHERJEA JJ"}}, {"text": "8th of March 1926", "label": "DATE", "start_char": 3049, "end_char": 3066, "source": "ner", "metadata": {"in_sentence": "The mortgage deed is dated the 8th of March 1926 and was executed by Raja Pateshwari Partap Narain Singh, the then holder of Basti Raj which is an impartible estate governed by the rule of primogeniture, in favour of Bhikhiram Sahu, the father of the original plaintiff Ramdeo, to secure a loan of Rs."}}, {"text": "Raja Pateshwari Partap Narain Singh", "label": "RESPONDENT", "start_char": 3087, "end_char": 3122, "source": "ner", "metadata": {"in_sentence": "The mortgage deed is dated the 8th of March 1926 and was executed by Raja Pateshwari Partap Narain Singh, the then holder of Basti Raj which is an impartible estate governed by the rule of primogeniture, in favour of Bhikhiram Sahu, the father of the original plaintiff Ramdeo, to secure a loan of Rs.", "canonical_name": "RAJA JWALESH\\VARI PRATAP NARAIN\n\nSINGH"}}, {"text": "Basti Raj", "label": "OTHER_PERSON", "start_char": 3143, "end_char": 3152, "source": "ner", "metadata": {"in_sentence": "The mortgage deed is dated the 8th of March 1926 and was executed by Raja Pateshwari Partap Narain Singh, the then holder of Basti Raj which is an impartible estate governed by the rule of primogeniture, in favour of Bhikhiram Sahu, the father of the original plaintiff Ramdeo, to secure a loan of Rs."}}, {"text": "Bhikhiram Sahu", "label": "OTHER_PERSON", "start_char": 3235, "end_char": 3249, "source": "ner", "metadata": {"in_sentence": "The mortgage deed is dated the 8th of March 1926 and was executed by Raja Pateshwari Partap Narain Singh, the then holder of Basti Raj which is an impartible estate governed by the rule of primogeniture, in favour of Bhikhiram Sahu, the father of the original plaintiff Ramdeo, to secure a loan of Rs.", "canonical_name": "Bhikhi Ram Sahu"}}, {"text": "Ramdeo", "label": "OTHER_PERSON", "start_char": 3288, "end_char": 3294, "source": "ner", "metadata": {"in_sentence": "The mortgage deed is dated the 8th of March 1926 and was executed by Raja Pateshwari Partap Narain Singh, the then holder of Basti Raj which is an impartible estate governed by the rule of primogeniture, in favour of Bhikhiram Sahu, the father of the original plaintiff Ramdeo, to secure a loan of Rs.", "canonical_name": "Ramdeo Sahu"}}, {"text": "Ramdeo Sahu", "label": "OTHER_PERSON", "start_char": 3731, "end_char": 3742, "source": "ner", "metadata": {"in_sentence": "The mortgagor and the mortgagee were both dead at the time when the suit was instituted, and the plaintiff in the action was Ramdeo Sahu, the son and heir of the mortgagee, while the principal defendant was the eldest son of the mortgagor who succeeded to the Basti estate under the rule of primogeniture.", "canonical_name": "Ramdeo Sahu"}}, {"text": "Pratap Narain", "label": "OTHER_PERSON", "start_char": 4699, "end_char": 4712, "source": "ner", "metadata": {"in_sentence": "The second Jwal••hwar; contention raised was that there was no consideration Pratap Narain in support of the transaction, at least to the extent of Singh .t Othm.", "canonical_name": "Pratap Narain"}}, {"text": "Mukhorjea", "label": "JUDGE", "start_char": 4891, "end_char": 4900, "source": "ner", "metadata": {"in_sentence": "The third Mukhorjea J. and the last material defence related to a claim for relief under the United Provinces Agriculturists' Relief Act.", "canonical_name": "MUKHERJEA JJ"}}, {"text": "High Court of Allahabad", "label": "COURT", "start_char": 5531, "end_char": 5554, "source": "ner", "metadata": {"in_sentence": "Against this decision, the defendant took an appeal to the High Court of Allahabad which was heard by a Division Bench consisting of Verma and York J J.\n\nThe learned Judges reversed the judgment of the trial Judge and dismissed the plaintiff's suit on one ground only, viz.,"}}, {"text": "York", "label": "JUDGE", "start_char": 5615, "end_char": 5619, "source": "ner", "metadata": {"in_sentence": "Against this decision, the defendant took an appeal to the High Court of Allahabad which was heard by a Division Bench consisting of Verma and York J J.\n\nThe learned Judges reversed the judgment of the trial Judge and dismissed the plaintiff's suit on one ground only, viz.,", "canonical_name": "Yorke"}}, {"text": "Raja", "label": "JUDGE", "start_char": 6732, "end_char": 6736, "source": "ner", "metadata": {"in_sentence": "In such cases, the appellate court has got to bear in S(l, rju Prshad d d h\" h h v. min that it has not the a vantage w ic t e trial\n\nRaja Judge had in having the witnesses before him and of\n\nJwal.,", "canonical_name": "Raja"}}, {"text": "Pratap Narai", "label": "OTHER_PERSON", "start_char": 6857, "end_char": 6869, "source": "ner", "metadata": {"in_sentence": "Pratap Narai\" This certainly does not mean that when an appeal lies\n\nSi•gh & Othera, on facts, the appellate court is not competent to reverse\n\n~ 1 k-;:--.", "canonical_name": "Pratap Narain"}}, {"text": "Madras High Court", "label": "COURT", "start_char": 7853, "end_char": 7870, "source": "ner", "metadata": {"in_sentence": "The gist of the numerous decisions on this subject was clearly summed up by Viscount Simon in Watt v. Thomas('), and his observations were adopted and reproduced in extenso by the Judicial Committee in a very recent appeal from the Madras High Court(')."}}, {"text": "Singh", "label": "WITNESS", "start_char": 9200, "end_char": 9205, "source": "ner", "metadata": {"in_sentence": "Singh ~Others."}}, {"text": "Harbhajan Lal", "label": "WITNESS", "start_char": 9511, "end_char": 9524, "source": "ner", "metadata": {"in_sentence": "Harbhajan Lal and Jawala Prasad Tewari purport to have signed the document as attesting witnesses and Jawala Prasad Patwari is the person who has signed it as the scribe."}}, {"text": "Jawala Prasad Tewari", "label": "WITNESS", "start_char": 9529, "end_char": 9549, "source": "ner", "metadata": {"in_sentence": "Harbhajan Lal and Jawala Prasad Tewari purport to have signed the document as attesting witnesses and Jawala Prasad Patwari is the person who has signed it as the scribe."}}, {"text": "Jawala Prasad Patwari", "label": "WITNESS", "start_char": 9613, "end_char": 9634, "source": "ner", "metadata": {"in_sentence": "Harbhajan Lal and Jawala Prasad Tewari purport to have signed the document as attesting witnesses and Jawala Prasad Patwari is the person who has signed it as the scribe."}}, {"text": "section 68", "label": "PROVISION", "start_char": 9899, "end_char": 9909, "source": "regex", "metadata": {"statute": null}}, {"text": "Indian Evidence Act", "label": "STATUTE", "start_char": 9917, "end_char": 9936, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Bhikhi Ram Sahu", "label": "OTHER_PERSON", "start_char": 10598, "end_char": 10613, "source": "ner", "metadata": {"in_sentence": "He was crossexamined by the defendant also and in answer to the questions put to him by the defendant's lawyer, he stated that he signed the deed at the Co!lectorate Kutchery, meaning thereby the Bar Library, where he used to sit as a petition writer and the document was taken to him at that place by Bhikhi Ram Sahu, the mortgagee, Ghur Lal, a Karinda ot the mortgagor, and Jawala Prasad Patwari, the scribe.", "canonical_name": "Bhikhi Ram Sahu"}}, {"text": "Ghur Lal", "label": "OTHER_PERSON", "start_char": 10630, "end_char": 10638, "source": "ner", "metadata": {"in_sentence": "He was crossexamined by the defendant also and in answer to the questions put to him by the defendant's lawyer, he stated that he signed the deed at the Co!lectorate Kutchery, meaning thereby the Bar Library, where he used to sit as a petition writer and the document was taken to him at that place by Bhikhi Ram Sahu, the mortgagee, Ghur Lal, a Karinda ot the mortgagor, and Jawala Prasad Patwari, the scribe.", "canonical_name": "Ghur Lal"}}, {"text": "Jawala Prasad Patwari", "label": "OTHER_PERSON", "start_char": 10672, "end_char": 10693, "source": "ner", "metadata": {"in_sentence": "He was crossexamined by the defendant also and in answer to the questions put to him by the defendant's lawyer, he stated that he signed the deed at the Co!lectorate Kutchery, meaning thereby the Bar Library, where he used to sit as a petition writer and the document was taken to him at that place by Bhikhi Ram Sahu, the mortgagee, Ghur Lal, a Karinda ot the mortgagor, and Jawala Prasad Patwari, the scribe.", "canonical_name": "Jaw ala Prasad Patwari"}}, {"text": "Jawala Prasad Tewari", "label": "OTHER_PERSON", "start_char": 10708, "end_char": 10728, "source": "ner", "metadata": {"in_sentence": "Jawala Prasad Tewari signed the deed after him.", "canonical_name": "Jaw ala Prasad Patwari"}}, {"text": "Bhikhi Ram", "label": "OTHER_PERSON", "start_char": 11267, "end_char": 11277, "source": "ner", "metadata": {"in_sentence": "e ra was Raja prepared under instructions from Bhikhi Ram, the Jwaleshwari mortgagee.", "canonical_name": "Bhikhi Ram Sahu"}}, {"text": "Pmtap Narain gagor", "label": "OTHER_PERSON", "start_char": 11345, "end_char": 11363, "source": "ner", "metadata": {"in_sentence": "and Ghur Lal, the Karinda of the mort- Pmtap Narain gagor, both of whom were present when the draft was Singh & Othm prepared."}}, {"text": "Mukhe", "label": "WITNESS", "start_char": 11477, "end_char": 11482, "source": "ner", "metadata": {"in_sentence": "After the draft was fair copied and stamp-\n\nMukhe, Jea J. ed, the witness signed it as the scribe and then it was taken by Bhikhi Ram and Gbur Lal to the Kot or palace of the Raja for his signature."}}, {"text": "Gbur Lal", "label": "OTHER_PERSON", "start_char": 11571, "end_char": 11579, "source": "ner", "metadata": {"in_sentence": "After the draft was fair copied and stamp-\n\nMukhe, Jea J. ed, the witness signed it as the scribe and then it was taken by Bhikhi Ram and Gbur Lal to the Kot or palace of the Raja for his signature.", "canonical_name": "Ghur Lal"}}, {"text": "Raja", "label": "JUDGE", "start_char": 11608, "end_char": 11612, "source": "ner", "metadata": {"in_sentence": "After the draft was fair copied and stamp-\n\nMukhe, Jea J. ed, the witness signed it as the scribe and then it was taken by Bhikhi Ram and Gbur Lal to the Kot or palace of the Raja for his signature.", "canonical_name": "Raja"}}, {"text": "Harbhajan Lal", "label": "OTHER_PERSON", "start_char": 11832, "end_char": 11845, "source": "ner", "metadata": {"in_sentence": "After obtaining the Raja's signature, Bhikhi Ram went away to his house and some time later he as well as Bhikhi Ram and Gbur Lal went to the Collectorate Kutchery, where they took the signatures of Harbhajan Lal and Jawala Prasad Tewari.", "canonical_name": "Harbhajan Lal"}}, {"text": "Jainarayan Sukul", "label": "OTHER_PERSON", "start_char": 11969, "end_char": 11985, "source": "ner", "metadata": {"in_sentence": "They then went to the registration office, where the document was presented for registration by Jainarayan Sukul who held a general power of attorney for the Raja."}}, {"text": "Buddhu Lal", "label": "WITNESS", "start_char": 12142, "end_char": 12152, "source": "ner", "metadata": {"in_sentence": "As against this, there is a completely different version given by the plaintiff himself and his witness Buddhu Lal."}}, {"text": "8th of November 1926", "label": "DATE", "start_char": 12370, "end_char": 12390, "source": "ner", "metadata": {"in_sentence": "According to the plaintiff, the document was executed and attested at one and the same sitting in the Kot or palace of the Raja; the terms had been settled beforehand between Bhikhi Ram and the mortgagor and on the 8th of November 1926 the plaintiff himself, and not his father, went to the Raja's palace at about 10 or 11 A. M. in the morning to get the document executed."}}, {"text": "Buddhu Lal", "label": "OTHER_PERSON", "start_char": 12618, "end_char": 12628, "source": "ner", "metadata": {"in_sentence": "He was accompanied by three persons to wit Harbhajan Lal, the deed writer of his father, Buddhu Lal, an old servant of the family, and Jawala Prasad Tewari who was also well known to the plaintiff and was taken to bear witness to the deed."}}, {"text": "Basti", "label": "GPE", "start_char": 13089, "end_char": 13094, "source": "ner", "metadata": {"in_sentence": "It was the plaintiff's desire that the final document should be scribed by Harbhajan Lal but as the Raja wanted to oblige Jawala Prasad Patwari, who was the Patwari of Basti proper, the deed was faired out and scribed by Jawala Prasad Patwari."}}, {"text": "mo Tewari", "label": "OTHER_PERSON", "start_char": 13257, "end_char": 13266, "source": "ner", "metadata": {"in_sentence": "After the Raja had put his signature on the\n\ndocument in the presence of Harbhajan Lal and mo Tewari, both the latter signed the document in the f l R Th b d Sarju Pershad presence o tie aia."}}, {"text": "Sarju Pershad", "label": "PETITIONER", "start_char": 13324, "end_char": 13337, "source": "ner", "metadata": {"in_sentence": "After the Raja had put his signature on the\n\ndocument in the presence of Harbhajan Lal and mo Tewari, both the latter signed the document in the f l R Th b d Sarju Pershad presence o tie aia.", "canonical_name": "Sarju Pe,.shad"}}, {"text": "Jwaleshwari", "label": "OTHER_PERSON", "start_char": 13498, "end_char": 13509, "source": "ner", "metadata": {"in_sentence": "e su sequent events narrate by the plaintiff relate to the registration of the docun:ja ment and we do not consider them to be material for Jwaleshwari our present purpose."}}, {"text": "Pratap Narnin", "label": "OTHER_PERSON", "start_char": 13532, "end_char": 13545, "source": "ner", "metadata": {"in_sentence": "Pratap Narnin This story of the plaintiff is supported materially Singhllim.", "canonical_name": "Pratap Narain"}}, {"text": "Singhllim", "label": "JUDGE", "start_char": 13598, "end_char": 13607, "source": "ner", "metadata": {"in_sentence": "Pratap Narnin This story of the plaintiff is supported materially Singhllim.", "canonical_name": "Singhllim"}}, {"text": ".•lukhecjea", "label": "JUDGE", "start_char": 13657, "end_char": 13668, "source": "ner", "metadata": {"in_sentence": "and on all points by Buddhu Lal, who was an old .•lukhecjea J. servant of the family, though he was no longer in service when he deposed in court."}}, {"text": "Swju Pershad", "label": "OTHER_PERSON", "start_char": 15460, "end_char": 15472, "source": "ner", "metadata": {"in_sentence": "Swju Pershad\n\nIn our opinion, the High C0urt's approach to the\n\nRaia case has not been proper and its findings are un-\n\nJwaleskwari supportable on the materials in the record."}}, {"text": "\\fakheriea", "label": "JUDGE", "start_char": 15764, "end_char": 15774, "source": "ner", "metadata": {"in_sentence": ":ratp, t;;:'\" Here was a case where the controversy related to a mg\" \"\"pure question of fact which had to be determined by\n\n,\\fakheriea J. weighing and appraising of conflicting oral testimony adduced by the parties."}}, {"text": "fll Vida", "label": "OTHER_PERSON", "start_char": 17532, "end_char": 17540, "source": "ner", "metadata": {"in_sentence": "The learned Judges seem to think that the plaintiff was not really at the spot when the mortgage deed was executed and as Bhikhi Ram was dead, this story was manufactured by the plain tiff in order to\n\nfll Vida ihe observa.tions of Lord Carson in Netherlatt.dsche Handel .\\faatscha:ppij v, R.M, P. Ghettir Firm ad Others, A.LR."}}, {"text": "Carson", "label": "OTHER_PERSON", "start_char": 17567, "end_char": 17573, "source": "ner", "metadata": {"in_sentence": "The learned Judges seem to think that the plaintiff was not really at the spot when the mortgage deed was executed and as Bhikhi Ram was dead, this story was manufactured by the plain tiff in order to\n\nfll Vida ihe observa.tions of Lord Carson in Netherlatt.dsche Handel .\\faatscha:ppij v, R.M, P. Ghettir Firm ad Others, A.LR."}}, {"text": "Banerjee", "label": "LAWYER", "start_char": 17719, "end_char": 17727, "source": "ner", "metadata": {"in_sentence": "Mr. Banerjee appear- 1s5o ing for the defendant respondent went to the length . -", "canonical_name": "Banerjee"}}, {"text": "Pratop Narain", "label": "OTHER_PERSON", "start_char": 18011, "end_char": 18024, "source": "ner", "metadata": {"in_sentence": "Pratop Narain We think that this argument rests on an extremely Smgh .t OthM. flimsy basis which does not bear examination.", "canonical_name": "Pratap Narain"}}, {"text": "Banerjee", "label": "LAWYER", "start_char": 18892, "end_char": 18900, "source": "ner", "metadata": {"in_sentence": "The suggestion of Mr. Banerjee that the new story was invented after the plaintiff had seen Harbhajan Lal giving evidence against him in the witness box 1s not worthy of serious consideration having regard to the fact that the plaintiff himself stepped into the witness box immediately after Harbhajan Lal had finished his deposition.", "canonical_name": "Banerjee"}}, {"text": "Singh", "label": "JUDGE", "start_char": 20226, "end_char": 20231, "source": "ner", "metadata": {"in_sentence": "It is said by the High Court that in the mofussil Jwaleshwari districts in the United Provinces the Patwari is the Pratap Narain person generally .employed for drafting and scribing Singh & Others.", "canonical_name": "Singhllim"}}, {"text": "Jfukherjea", "label": "JUDGE", "start_char": 20349, "end_char": 20359, "source": "ner", "metadata": {"in_sentence": "This cannot mean that all the people in the district of Basti used to have their deeds drafted and Jfukherjea J. scribed by the Patwari."}}, {"text": "Patwari", "label": "OTHER_PERSON", "start_char": 20378, "end_char": 20385, "source": "ner", "metadata": {"in_sentence": "This cannot mean that all the people in the district of Basti used to have their deeds drafted and Jfukherjea J. scribed by the Patwari."}}, {"text": "Sheo Balak Ram", "label": "OTHER_PERSON", "start_char": 21342, "end_char": 21356, "source": "ner", "metadata": {"in_sentence": "10) given by Sheo Balak Ram, to whom a sum of Rs."}}, {"text": "Harbhajan", "label": "OTHER_PERSON", "start_char": 22071, "end_char": 22080, "source": "ner", "metadata": {"in_sentence": "Speaking for ourselves, we do not attach much importance to the similarity in the ink which is after all not a very reliable test ; but we do agree with the trial Judge in holding that Harbhajan ....\n\nS.C.R.\n\nSUPREME COURT H.EPORTS 791\n\n1950 Lal must have signed the document at the time when it was executed and not afterwards; and it is really Sarju Pe,.shad inconceivable that an old and experienced deed writer v. like him did not know the requirements of proper Raja attestation.", "canonical_name": "Harbhajan Lal"}}, {"text": "Sarju Pe,.shad", "label": "PETITIONER", "start_char": 22232, "end_char": 22246, "source": "ner", "metadata": {"in_sentence": "Speaking for ourselves, we do not attach much importance to the similarity in the ink which is after all not a very reliable test ; but we do agree with the trial Judge in holding that Harbhajan ....\n\nS.C.R.\n\nSUPREME COURT H.EPORTS 791\n\n1950 Lal must have signed the document at the time when it was executed and not afterwards; and it is really Sarju Pe,.shad inconceivable that an old and experienced deed writer v. like him did not know the requirements of proper Raja attestation.", "canonical_name": "Sarju Pe,.shad"}}, {"text": "Jaw ala Prasad Patwari", "label": "OTHER_PERSON", "start_char": 23602, "end_char": 23624, "source": "ner", "metadata": {"in_sentence": "The trial Judge seems to be of opinion that it was probably due to the influence exercised by Jaw ala Prasad Patwari, who is a co-villager of Harbhajan.", "canonical_name": "Jaw ala Prasad Patwari"}}, {"text": "Prntap Narain", "label": "OTHER_PERSON", "start_char": 24636, "end_char": 24649, "source": "ner", "metadata": {"in_sentence": "back to Jwaleshw>ri that court m order that the other matters, which have Prntap Narain been left undecided, may be heard and decided by the\n\nSingh & Others.", "canonical_name": "Pratap Narain"}}, {"text": "Singh", "label": "JUDGE", "start_char": 24704, "end_char": 24709, "source": "ner", "metadata": {"in_sentence": "back to Jwaleshw>ri that court m order that the other matters, which have Prntap Narain been left undecided, may be heard and decided by the\n\nSingh & Others.", "canonical_name": "Singhllim"}}, {"text": "fakherjea", "label": "JUDGE", "start_char": 24833, "end_char": 24842, "source": "ner", "metadata": {"in_sentence": "The plaintiff appellant is entitled to costs of\n\nfakherjea J. this hearing as well as the costs of the High Court\n\nNov. 30."}}, {"text": "Rajindar Narain", "label": "LAWYER", "start_char": 24977, "end_char": 24992, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: Rajindar Narain."}}, {"text": "P. Varma", "label": "LAWYER", "start_char": 25025, "end_char": 25033, "source": "ner", "metadata": {"in_sentence": "P. Varma."}}, {"text": "GORDHANDASS SAGARMULL", "label": "JUDGE", "start_char": 25054, "end_char": 25075, "source": "ner", "metadata": {"in_sentence": "GORDHANDASS SAGARMULL. ["}}, {"text": "SAIYID FAZL Au", "label": "JUDGE", "start_char": 25078, "end_char": 25092, "source": "ner", "metadata": {"in_sentence": "SAIYID FAZL Au, PATANJALI SASTRI and\n\nMEHR CHAND MAHAJAN JJ.]", "canonical_name": "SAIYID F AZL ALI"}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 25094, "end_char": 25110, "source": "ner", "metadata": {"in_sentence": "SAIYID FAZL Au, PATANJALI SASTRI and\n\nMEHR CHAND MAHAJAN JJ.]"}}, {"text": "Bengal Chamber of Commerce", "label": "ORG", "start_char": 26030, "end_char": 26056, "source": "ner", "metadata": {"in_sentence": "cla.ims, arising out of and/or concerning, and/or in connection and/or in consequence of, or relating to, the contract ......... shall be referred to the arbitration of the Bengal Chamber of Commerce.\""}}]} {"document_id": "1950_1_792_798_EN", "year": 1950, "text": "SUPREME COURT REPORTS [1950]\n\n1950 set aside. As the High Court, however, has dismissed -- the suit only on the ground of non-attestation of the Sarju Pmhad mortgage bond and did not consider the other points\n\n;; ja which were raised before it, the case must go. back to Jwaleshw>ri that court m order that the other matters, which have Prntap Narain been left undecided, may be heard and decided by the\n\nSingh & Others. learned Judges and the case disposed of in accordance with law. The plaintiff appellant is entitled to costs of\n\nfakherjea J. this hearing as well as the costs of the High Court\n\nNov. 30.\n\nagainst defendant No. 1.\n\nAppeal allowed.\n\nAgent for the appellant: Rajindar Narain.\n\nAgent for the respondents: 5. P. Varma.\n\nA. M. MAIR & CO.\n\nGORDHANDASS SAGARMULL. [SAIYID FAZL Au, PATANJALI SASTRI and\n\nMEHR CHAND MAHAJAN JJ.] Arbitration-Contract by broer for sale of goods by \"sold\" and \"bought\" notes-Arbitration clause-Seller denying right of b•roker to enforce arbitral ,; nn clause-~J urisdiction of arbitrators- Valid, ity of award-Construction of contract.\n\nThe appellants, a firm of brokers, entered into a' contract for the sale and purchase of a quantity of jute under a ''sold note\"\n\naddressed to the respondents which they signed as \" A & Co.,\n\nbrokers\" and a \"bought note\" of the same date and for the same quantity of jute addressed to a third person in which also they signed as ' 1 A & Co., brokers\".\n\nThe\" sold note\" contained the usual arbitration clause under which '' all matters, questions, disputes, differences and/.or. cla.ims, arising out of and/or concerning, and/or in connection and/or in consequence of, or relating to, the contract ......... shall be referred to the arbitration of the Bengal Chamber of Commerce.\" A dispute having arisen with regard to a matter wbich admittedly arose out of the contract evidenced by the sold note, the appellants referred the dispute for arbitration.\n\nThe respondents raised before the arbitrators the further contention that as the appellants were only brokers they were not entitled to refer the matter to arbitration.\n\nThe arbitrators made an award in favour of the appellants.\n\nThe respondents wade an application to the High Court under the Indian Arbitration Act for setting aside the award: Held that,. assuming that it was open to the respondents to raise this objection at that stage, inasmuch as this further dispute -\n\nwas also one which turned on the true interpretation of the 1950 contraet a.nd the reSpondents must have recourse to the contract to estJ.blish their claim, this was also a dispute arising out of or .4, M. Mair & Co. concerning the contract and as such fell within the arbitration v. clause, and the award could not be set a.side under the Indian Gordhandass\n\nArbitration Act, 1.940, on the ground that it was beyond iuris- Sagarmull. diction and void.\n\nHeyman v. Darwins Ltd. ([1942] A.O. 356)referred to.\n\nAPPELL.ATE JURISDICTION: Civil Appeal No. XLII of 1950.\n\nAppeal from the judgment of the Calcutta H!gh Court (Harries C.J. and Chakravarthi J.) in Appeal from Original Order No. 78 of 1948. , N. C. Chatterjee (B. Sen, with him), for the appellants.\n\nA. N. Grover, for the respondents.\n\n1950. November 30. The judgment of Faz! Ali and Patanjali Sastri JJ. was delivered by\n\nF .AZ'L ALI J .-This is an appeal from a judgment of a E'azl Ali J.\n\nBench of the High Court of Judicature at Calcutta in West Bengal, reversing the decision of a single Judge of that Court, who had refused to set aside an award given by the arbitration tribunal of the Bengal Chamber of Commerce on a submission made by the respondents.\n\nThe facts of the case are as follows.\n\nOn the 25th January, 1946, the appellants entered into a contract with the respondents for the sale of 5,000 maunds of jute, which was evidenced by a \"sold\n\nnote\" (Exhibit A), which is in the form of a letter addressed to the respondents, commencing with these words: \"We have this day sold by your order and for your account to the undersigned, etc.\" The word\n\n\"undersigned \" admittedly refers to the appellants, and, at the end of the contract, below their signature, the word \"brokers\" is written. On the same day, a\n\n\"bought note\" (Exhibit B) was addressed by the appellants to the Bengal Jute Mill Company, with the following statement: \"We have this day bought by your ortler and for your account from the undersigned,\n\ni9.10 etc.\" In this note also, the word \"undersigned\" refers --:- & 0 to the appellants, and, underneath their signature, the A. M. ~r\n\n0 • word \"brokers\" appears, as in the \"sold note.\" There\n\nGordhandass are various provisions in the sold note, relating to\n\nSagarn1ull. delivery of jute, non-delivery of documents, non- . acceptance of documents, claims, etc., but the most Fa•' Ali J. material provisions are to be found in paragraphs 10 and 11. Paragraph 10 provides that the sellers may in certain cases be granted an .extension of time for\n\ndivering the jute for a period not exceeding thirty days from the due date free of all penalties, and if the contract is not implemented within the extended period, the buyers would be entitled to several options, one of them being to cancel the contract and charge the sellers the difference between the contract rate and the market rate on the day on which the option is declared. In the same paragraph, there is another provision to the -following effect : ·-\n\n\" Sellers shall notify Buyers that goods will or will not be shipped within such extended period rferred to in (a) and in the case of sellers intimating that they will be unable to ship within the extended time Buyers shall exercise their option within 5 working days of receiving notice and notify Sellers. In the absence of any such notice from Sellers it shall be deemed that the goods have not been shipped 'and Buyers shall exercise their option within 5 working days after expiration of extended date and notify Sellers.\"\n\nThe 11th paragraph provides among other things that •all matters, questions, disputes, differences and/or claims arising out of and/or concerning and/or in connection and/or in consequence of or relatiµg to this Contract whether or not obligations of either or both parties under this contract be subsisting at the time of such disputes and whether or not this contract has been terminated or purported to be terminated or completed shall be referred to the arbitration of the Bengal Chamber of Commerce under the rules of its Tribunal of Arbitration for the time being in force and according to such rules the arbitration shall be conducted.\" •\n\nIt is common ground that the respondents delivered 1950 2,256 maunds of jute under . the contract, but the --:- h l f 2 744 d Id t b d 1. d \"th\" A. M. Ma>r&Co. a ance o , maun s cou no e e ivere w1 m the stipulated period, and, by mutual agreement, time Gord; ndass\n\nwas extended up to the 30th June, 1946. On the 2nd Sa.garmul!.\n\nJuly, 1946, the respondents addressed a letter to the appellants stating that the balance of jute could not be Fazl Ali J. despatched owing to lack of wagons, and \"extension\" was requested for a period of one month. •Jn reply to this letter, which was received by the appellants on or about the 3rd July, 1946, time was extended till the 31st July, 1946. On the same day on which the reply was received by the respondents, i.e., on the 9th July, 1946, they addressed a letter to the appellants pointing out that the extension of time had not been intimated within the 5th working day as provided in the contract and therefore the contract was automatically cancelled.\n\nAfter this letter, some further correspondence followed between the two parties, and finally a bill of difference amounting to Rs. 4, 116 .was submitted by the appellants to the respondents, who, in their turn, denied their liability to pay the sum. The appellants thereupon claimed arbitration under Clause 11 of the sold note and submitted the dispute between them and the respondents to the Bengal Chamber of Commerce. On the 6th February, 1947, the Tribunal of Arbitration made an award to the effect that the due date of contract had been extended by mutual agreement up to the 31st July, 1946, and accordingly the respondents .should pay to the appellants a sum of Rs. 4,116 together with interest at the rate of 4% per annum from the 10th August, 1946, until the date of the award.\n\nA sum of Rs. 210 was also held to be payable by the respondents on account of costs. Nearly a year later, on the 19th February, 1949, a petition was presented by the respondents under the Indian Arbitration Act, 1940, to the High Court at Calcutta, in its ordinary original civil jurisdiction, praying inter alia that the award may be adjudged to be without jurisdiction and void and not binding on the respondents, and that it may be set aside. The main point raised by the\n\n1950 respondents in the petition was that it was not open to -- the appellants to invoke the arbitration clause, as the A.kI.l.!air&Oo.B lJ t \"1·11c d th 11 t v. enga u e n L ompany an no t e appe an s were\n\nGordha•dass the real party to the contract and the appellants had sagarmult. acted as mere brokers. The appellants asserted in reply that the allegation made by the respondents in regard Fazl Ali J. to there being no privity between them and the appellants was wrong. and in paragraph 16 of their affidavit they statedas follows :-\n\n\"With regard to paragraph 7 of the petition I crave reference to the said contract for its true construction and effect. I say as I have already stated that according to the custom or usage or practice of the trade the respondent is entitled to charge brokerage and also to enforce the terms of the said contract.\"\n\nThe case was heard by Sinha]., who dismissed the petition on the ground that the contract was directly between the respondents and the appellants. The learned Judge also observed that if the right of the appellants to enforce the contract depended upon the existence of custom it would have been necessary to take evidence and the arbitrators would have had jurisdiction to decide the question of the existence of custom.\n\nThe respondents being dissatisfied with the judgment of Sinha ]., preferred an appeal, which was heard and disposed of by a Division Bench of the High Court consisting of the learned Chief Justice and Chakravarthi].\n\nThe learned Judges held that having regard to the fact that the appellants' own contention was that they had entered into the contract as brokers and were entitled to enforce its terms by reason of the usage or custom of the trade, it was not open to Sinha J. to treat them as principals, and the award was liable to be set aside on the ground that the arbitration tribunal had no jurisdiction to make an award at the instance of a per. son who was not a principal party to the contract. The appellants thereafter having obtained a certificate from the High Court under section 109 (c) of the Code of Civil Procedure, preferred this appeal.\n\nIt seems to us that this appeal can be disposed of on 1950 a short ground. vVe have carefully read the affidavit -- filed on behalf of the appellants in the trial cuurt, and A. M. Mair & Co. we are unable to hold that their case was that they Gord; ndass were not parties to the contract or that they had asked Sagarmull. the court to proceed on the sole ground that they were entitled to enforce the contract by virtue of the custom Fa•Z Ali J. or usage of the trade. In our opinion, the position which was taken up by them may be summed up as follows:-\n\n(1) They did not accept the allegations made by the respondents that they were not parties to any arbitration agreement with the respondents.\n\n(2) They asked the Court to construe the contract and its effect and asserted that they were entitled to enforce it.\n\n(3) They also stated that they were entitled to enforce the contract according to the custom or usage of the trade, The principal dispute raised in this case was whether the extension of time for delivery was granted within the time limited in the contract. That dispute is cer. tainly covered by the arbitration clause. The further dispute that, he brokers (appellants) were not parties to the contract in their own right as principals but entered into the contract only on behalf of the Bengal Jute Mill Company does not appear to have been raised until the matter wenL to the arbitrators. Assuming that at that stage it was open to the respondents to raise such an objection, after the other dispute which clearly fell within the arbitration clause was referred to the arbitrators, this further dispute is also one which turns upon the true interpretation of the contract, so that the respondents must have recourse to the contract to establish their claim that the appellants were not bound as principals while the latter say that they were.\n\nIf that is the position, such a dispute, the determina. tion of which turns on the true construction of the contract, would also seem to be a dispute, under pr arising out of or concerning the contract. In a,\n\nlOi\n\n~ 50 passage quoted in Heyman v. Darwins Ltd.('), Lord\n\nA. M. Mair &Co. Dunedin propounds the test thus: - \"If a party v. has to have recourse to the contract, that dispute is\n\nGordhondass a dispute under the contract\". Here, the respondents\n\nSagarmul!. must have recourse to the contract to establish their\n\nFa.Z Ali J. case and therefore it is a dispute falling within the arbitration clause. The error into which the learned Judges of the appellate Bench of the High Court appear to have fallen was their regarding the dispute raised by the respondent in respect of the position of the appellants under the contract as having the same consequence as a dispute as to the contract ever having been entered into.\n\nMahajan J.\n\nIf, therefore, we come to the conclusion that both the disputes raised by the respondents fall within the scope of the arbitration clause, then there is an end of the matter, for the arbitrators would have jurisdiction to adjudicate on the disputes, and we are not conc<\"rned with any error of law or f_act committed by them or any omission on their part to consider any of the matters. In this view, it would not be for us to determine the true construction of the contract and find out whether the respondents' contention is correct or not.\n\nOnce the dispute is found to be within the.scope of the arbitration clause, it is no part of the province of the court to enter into the merits of the dispute.\n\nIn the result, we allow this appeal, set aside the judgment of the appellate Bench of the High Court and restore the order of Sinha J. The appellants will be entitled to their costs throughout.\n\nMAHAJAN J.-I agree with my brother Fazl Ali that this appeal be allowed with costs.\n\nAppeal allowed.\n\nAgent for the appellants: P. K. Chatterjee.\n\nAgent for the respondents : J1.f. G. Poddar.\n\n(I I\n\n[1942] A.C. 356,", "total_entities": 46, "entities": [{"text": "SUPREME COURT REPORTS [1950]\n\n1950", "label": "COURT", "start_char": 0, "end_char": 34, "source": "ner", "metadata": {"in_sentence": "SUPREME COURT REPORTS [1950]\n\n1950 set aside."}}, {"text": "Prntap Narain", "label": "OTHER_PERSON", "start_char": 337, "end_char": 350, "source": "ner", "metadata": {"in_sentence": "back to Jwaleshw>ri that court m order that the other matters, which have Prntap Narain been left undecided, may be heard and decided by the\n\nSingh & Others."}}, {"text": "Rajindar Narain", "label": "LAWYER", "start_char": 678, "end_char": 693, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: Rajindar Narain."}}, {"text": "P. Varma", "label": "LAWYER", "start_char": 726, "end_char": 734, "source": "ner", "metadata": {"in_sentence": "P. Varma."}}, {"text": "A. M. MAIR & CO", "label": "PETITIONER", "start_char": 737, "end_char": 752, "source": "metadata", "metadata": {"canonical_name": "A. M. MAIR & CO", "offset_not_found": false}}, {"text": "GORDHANDASS SAGARMULL", "label": "RESPONDENT", "start_char": 755, "end_char": 776, "source": "metadata", "metadata": {"canonical_name": "GORDHANDASS SAGARMULL", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 795, "end_char": 811, "source": "metadata", "metadata": {"canonical_name": "PATANJALI SASTRI", "offset_not_found": false}}, {"text": "MEHR CHAND MAHAJAN JJ.", "label": "JUDGE", "start_char": 817, "end_char": 839, "source": "metadata", "metadata": {"canonical_name": "MEHR CHAND MAHAJAN*", "offset_not_found": false}}, {"text": "Bengal Chamber of Commerce", "label": "ORG", "start_char": 1731, "end_char": 1757, "source": "ner", "metadata": {"in_sentence": "cla.ims, arising out of and/or concerning, and/or in connection and/or in consequence of, or relating to, the contract ......... shall be referred to the arbitration of the Bengal Chamber of Commerce.\""}}, {"text": "Harries C.J.", "label": "JUDGE", "start_char": 3029, "end_char": 3041, "source": "ner", "metadata": {"in_sentence": "Appeal from the judgment of the Calcutta H!gh Court (Harries C.J. and Chakravarthi J.) in Appeal from Original Order No."}}, {"text": "Chakravarthi", "label": "JUDGE", "start_char": 3046, "end_char": 3058, "source": "ner", "metadata": {"in_sentence": "Appeal from the judgment of the Calcutta H!gh Court (Harries C.J. and Chakravarthi J.) in Appeal from Original Order No."}}, {"text": "N. C. Chatterjee", "label": "LAWYER", "start_char": 3111, "end_char": 3127, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee (B. Sen, with him), for the appellants."}}, {"text": "B. Sen", "label": "LAWYER", "start_char": 3129, "end_char": 3135, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee (B. Sen, with him), for the appellants."}}, {"text": "A. N. Grover", "label": "LAWYER", "start_char": 3169, "end_char": 3181, "source": "ner", "metadata": {"in_sentence": "A. N. Grover, for the respondents."}}, {"text": "Faz! Ali", "label": "JUDGE", "start_char": 3240, "end_char": 3248, "source": "ner", "metadata": {"in_sentence": "The judgment of Faz!", "canonical_name": "Faz! Ali"}}, {"text": "Patanjali Sastri", "label": "JUDGE", "start_char": 3253, "end_char": 3269, "source": "ner", "metadata": {"in_sentence": "Ali and Patanjali Sastri JJ.", "canonical_name": "PATANJALI SASTRI"}}, {"text": "F .AZ'L ALI", "label": "JUDGE", "start_char": 3292, "end_char": 3303, "source": "ner", "metadata": {"in_sentence": "was delivered by\n\nF .AZ'L ALI J .-This is an appeal from a judgment of a E'azl Ali J.\n\nBench of the High Court of Judicature at Calcutta in West Bengal, reversing the decision of a single Judge of that Court, who had refused to set aside an award given by the arbitration tribunal of the Bengal Chamber of Commerce on a submission made by the respondents."}}, {"text": "E'azl Ali", "label": "JUDGE", "start_char": 3347, "end_char": 3356, "source": "ner", "metadata": {"in_sentence": "was delivered by\n\nF .AZ'L ALI J .-This is an appeal from a judgment of a E'azl Ali J.\n\nBench of the High Court of Judicature at Calcutta in West Bengal, reversing the decision of a single Judge of that Court, who had refused to set aside an award given by the arbitration tribunal of the Bengal Chamber of Commerce on a submission made by the respondents."}}, {"text": "High Court of Judicature at Calcutta", "label": "COURT", "start_char": 3374, "end_char": 3410, "source": "ner", "metadata": {"in_sentence": "was delivered by\n\nF .AZ'L ALI J .-This is an appeal from a judgment of a E'azl Ali J.\n\nBench of the High Court of Judicature at Calcutta in West Bengal, reversing the decision of a single Judge of that Court, who had refused to set aside an award given by the arbitration tribunal of the Bengal Chamber of Commerce on a submission made by the respondents."}}, {"text": "West Bengal", "label": "GPE", "start_char": 3414, "end_char": 3425, "source": "ner", "metadata": {"in_sentence": "was delivered by\n\nF .AZ'L ALI J .-This is an appeal from a judgment of a E'azl Ali J.\n\nBench of the High Court of Judicature at Calcutta in West Bengal, reversing the decision of a single Judge of that Court, who had refused to set aside an award given by the arbitration tribunal of the Bengal Chamber of Commerce on a submission made by the respondents."}}, {"text": "25th January, 1946", "label": "DATE", "start_char": 3677, "end_char": 3695, "source": "ner", "metadata": {"in_sentence": "On the 25th January, 1946, the appellants entered into a contract with the respondents for the sale of 5,000 maunds of jute, which was evidenced by a \"sold\n\nnote\" (Exhibit A), which is in the form of a letter addressed to the respondents, commencing with these words: \"We have this day sold by your order and for your account to the undersigned, etc.\""}}, {"text": "Bengal Jute Mill Company", "label": "ORG", "start_char": 4256, "end_char": 4280, "source": "ner", "metadata": {"in_sentence": "On the same day, a\n\n\"bought note\" (Exhibit B) was addressed by the appellants to the Bengal Jute Mill Company, with the following statement: \"We have this day bought by your ortler and for your account from the undersigned,\n\ni9.10 etc.\""}}, {"text": "3rd July, 1946", "label": "DATE", "start_char": 7209, "end_char": 7223, "source": "ner", "metadata": {"in_sentence": "•Jn reply to this letter, which was received by the appellants on or about the 3rd July, 1946, time was extended till the 31st July, 1946."}}, {"text": "31st July, 1946", "label": "DATE", "start_char": 7252, "end_char": 7267, "source": "ner", "metadata": {"in_sentence": "•Jn reply to this letter, which was received by the appellants on or about the 3rd July, 1946, time was extended till the 31st July, 1946."}}, {"text": "9th July, 1946", "label": "DATE", "start_char": 7350, "end_char": 7364, "source": "ner", "metadata": {"in_sentence": "On the same day on which the reply was received by the respondents, i.e., on the 9th July, 1946, they addressed a letter to the appellants pointing out that the extension of time had not been intimated within the 5th working day as provided in the contract and therefore the contract was automatically cancelled."}}, {"text": "Clause 11", "label": "PROVISION", "start_char": 7884, "end_char": 7893, "source": "regex", "metadata": {"statute": null}}, {"text": "6th February, 1947", "label": "DATE", "start_char": 8012, "end_char": 8030, "source": "ner", "metadata": {"in_sentence": "On the 6th February, 1947, the Tribunal of Arbitration made an award to the effect that the due date of contract had been extended by mutual agreement up to the 31st July, 1946, and accordingly the respondents .should pay to the appellants a sum of Rs."}}, {"text": "10th August, 1946", "label": "DATE", "start_char": 8324, "end_char": 8341, "source": "ner", "metadata": {"in_sentence": "4,116 together with interest at the rate of 4% per annum from the 10th August, 1946, until the date of the award."}}, {"text": "19th February, 1949", "label": "DATE", "start_char": 8486, "end_char": 8505, "source": "ner", "metadata": {"in_sentence": "Nearly a year later, on the 19th February, 1949, a petition was presented by the respondents under the Indian Arbitration Act, 1940, to the High Court at Calcutta, in its ordinary original civil jurisdiction, praying inter alia that the award may be adjudged to be without jurisdiction and void and not binding on the respondents, and that it may be set aside."}}, {"text": "Indian Arbitration Act, 1940", "label": "STATUTE", "start_char": 8561, "end_char": 8589, "source": "regex", "metadata": {}}, {"text": "High Court at Calcutta", "label": "COURT", "start_char": 8598, "end_char": 8620, "source": "ner", "metadata": {"in_sentence": "Nearly a year later, on the 19th February, 1949, a petition was presented by the respondents under the Indian Arbitration Act, 1940, to the High Court at Calcutta, in its ordinary original civil jurisdiction, praying inter alia that the award may be adjudged to be without jurisdiction and void and not binding on the respondents, and that it may be set aside."}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 9244, "end_char": 9252, "source": "ner", "metadata": {"in_sentence": "The appellants asserted in reply that the allegation made by the respondents in regard Fazl Ali J. to there being no privity between them and the appellants was wrong.", "canonical_name": "Fazl Ali"}}, {"text": "Sinha", "label": "JUDGE", "start_char": 9728, "end_char": 9733, "source": "ner", "metadata": {"in_sentence": "The case was heard by Sinha].,", "canonical_name": "Sinha"}}, {"text": "Sinha", "label": "JUDGE", "start_char": 10185, "end_char": 10190, "source": "ner", "metadata": {"in_sentence": "The respondents being dissatisfied with the judgment of Sinha ].,", "canonical_name": "Sinha"}}, {"text": "section 109", "label": "PROVISION", "start_char": 10916, "end_char": 10927, "source": "regex", "metadata": {"statute": null}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 10935, "end_char": 10962, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "A. M. Mair & Co.", "label": "ORG", "start_char": 11162, "end_char": 11178, "source": "ner", "metadata": {"in_sentence": "vVe have carefully read the affidavit -- filed on behalf of the appellants in the trial cuurt, and A. M. Mair & Co. we are unable to hold that their case was that they Gord; ndass were not parties to the contract or that they had asked Sagarmull."}}, {"text": "Sagarmull", "label": "RESPONDENT", "start_char": 11299, "end_char": 11308, "source": "ner", "metadata": {"in_sentence": "vVe have carefully read the affidavit -- filed on behalf of the appellants in the trial cuurt, and A. M. Mair & Co. we are unable to hold that their case was that they Gord; ndass were not parties to the contract or that they had asked Sagarmull.", "canonical_name": "Sagarmull"}}, {"text": "Fa•Z Ali", "label": "JUDGE", "start_char": 11422, "end_char": 11430, "source": "ner", "metadata": {"in_sentence": "the court to proceed on the sole ground that they were entitled to enforce the contract by virtue of the custom Fa•Z Ali J. or usage of the trade.", "canonical_name": "Faz! Ali"}}, {"text": "Sagarmul", "label": "RESPONDENT", "start_char": 13310, "end_char": 13318, "source": "ner", "metadata": {"in_sentence": "Here, the respondents\n\nSagarmul!.", "canonical_name": "Sagarmull"}}, {"text": "Ali", "label": "JUDGE", "start_char": 13381, "end_char": 13384, "source": "ner", "metadata": {"in_sentence": "Z Ali J. case and therefore it is a dispute falling within the arbitration clause."}}, {"text": "Mahajan", "label": "JUDGE", "start_char": 13781, "end_char": 13788, "source": "ner", "metadata": {"in_sentence": "Mahajan J.\n\nIf, therefore, we come to the conclusion that both the disputes raised by the respondents fall within the scope of the arbitration clause, then there is an end of the matter, for the arbitrators would have jurisdiction to adjudicate on the disputes, and we are not conc<\"rned with any error of law or f_act committed by them or any omission on their part to consider any of the matters.", "canonical_name": "Mahajan"}}, {"text": "MAHAJAN", "label": "JUDGE", "start_char": 14693, "end_char": 14700, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-I agree with my brother Fazl Ali that this appeal be allowed with costs.", "canonical_name": "Mahajan"}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 14728, "end_char": 14736, "source": "ner", "metadata": {"in_sentence": "MAHAJAN J.-I agree with my brother Fazl Ali that this appeal be allowed with costs.", "canonical_name": "Fazl Ali"}}, {"text": "P. K. Chatterjee", "label": "LAWYER", "start_char": 14821, "end_char": 14837, "source": "ner", "metadata": {"in_sentence": "Agent for the appellants: P. K. Chatterjee."}}, {"text": "G. Poddar", "label": "RESPONDENT", "start_char": 14874, "end_char": 14883, "source": "ner", "metadata": {"in_sentence": "G. Poddar."}}]} {"document_id": "1950_1_799_805_EN", "year": 1950, "text": "S.C.R.\n\nSUPREME COURT REPORTS\n\nSETH PREMCHAND SATRAMDAS\n\nTHE STATE OF BIHAR. [SAIYID FAZL ALI, MUKHERJEA and\n\nCHANDRASEKHARA AIYAR JJ.J\n\nBihar Sales Tax Act (VI of 1944), s. 21 (3)-0rder of High 0011.rt Tefttsirig to require Board of Reven,~J, g to state case-Appeal to Federal Coivt-Maintainability-Letters Patent ', Patna, High Court 1, cl. 31-\" Final Order \"-Order in exercise of advisory jurisdiction of High Cmwt.\n\nNo appe!tl lay to the Federal Cou!'t from an order of the\n\nPt.:na High Court dismissing an application under s. 21 (3) of the Bihar Sales Tax Act, 1941, to di!'ect the Bi-ard of Revenue, Bihar, to state a case and refer it to the High Court.\n\nSuch an order i!; l not a\" final order\" within the meaning of cl. 31 of the Letters Patent of the Patna High Oourt 1 inasmuch as 11.n order of the High Court under s. 21 (3) is advisory and standing by itself docs not bind or affect the rights of the parties though the\n\nultiwate order passed by the Board of Revenue may be based on the opinion expressed by tbe High Court. Nor is such an order passed by the High Court in the exercise either of its appellate or original jurisdiction. within the meaning of the said clause.\n\nSri Jriahanl Ha,.ihar Gir v. Commissioner of IncOme-tax, Bihar and Orissa (A.LR. 1941 Pat. 225) and Tata Iron and Steel Company v. Chief Revenue Authority, Bombay (50 I.A. 21:J 1 applied.\n\nFeroze Shah Kaka Khel v. Incametax 001nmissioner, Punjab (A.LR. 1931 Lah. 138) disapproved.\n\nAPPELLATE JURISDICTION: Civil Appeal No. 61 of 1950.\n\nAppeal from an order of the High Court of Patna dated 9th September, 1948, (Agarwala C.J. and Meredith J.) in M.J.C. N9. 5 of 1948.\n\nThe appeal was originally filed as Federal Court Appeal No. 71 of 1948 on a certificate granted by the Patna High Co.urt under cl. 31 of the Letters Patent of that High Court that the case was a fit one for appeal to the Federal Court.\n\nH. P. Sinha (S. C. Sinha, with him) for the appellant.\n\nS. K. Mitra (S. L. Chibber, with him) for the respondent.\n\n1950. November 30.\n\nThe judgment of the Court was, d.llvrd by F AZL Au J.\n\nNov. 30.\n\n19'0 FAZL Au J .--This is an appeal from an order of the -- High Court of Judicature at Patna dated the 9th Seth Premchand September, 1948, declining to call upon the Board of\n\nSatramdas d 3 f h v.\n\nRevenue to state a case un er section 21 ( ) o t e Th• Stars of Bihar Sales Tax Act, 1944 (Act VI of 1944), with Bihar. reference to an assessment made under that Act.\n\nFast Ali J.\n\nThe Bihar Sales Tax Act was passed in 1944, and section 4 of the Act provides that \"every dealer whose gross turnover during the year immediately preceding\n\nthe commencement of the Act exceeded Rs. 5,000 shall be liable to pay tax under the Act on sales effected after the date so notified.\" It is not disputed that, having regard to the definitions of dealer, goods and sale under the Act, the appellant, who has been doing C0)1tract\n\nwork on a fairly extensive scale for the Central Public vVorks Department and the East Indian Railway,. comes within the category of a dealer mentioned in section 4.\n\nSection 7 of the Act provides that \"no dealer shall, while being liable under section 4 to pay tax under the Act, carry on business as a dealer unless he has been registered under the Act and possesses a registration certificate\". In pursuance of this provision, the appellant filed an application for registration on the 19th December, 1944, and a certificate of registration was issued to him on the 21st December,\n\n1944. On the 8th October, 1945, the Sales Tax Officer issued a notice to the appellant asking him to produce his accounts on 10th November, 1945, and to show cause why in addition to the tax to be finally assessed on him a penalty not exceeding one and a half times the amount should not be imposed on him under section JO (5) of the Act.\n\nSection JO (5), under which the. notice purported to have been issued, runs thus:--,\"·.\n\n\"If upon information which has come into his possession, the Commissioner is satisfied that any dealer has been liable to pay tax under this Act in P2spect of any period and has nevertheless wilfully failed to apply for registration, the Commissioner sh; i.11, alt~ giving the dealer a reasonable opportunity o1 l:ieing '~ heard, assess, to the best of his judgment, the amount \\.,. of tax, if any, due from the dealer in respect of such \\\n\nperiod and all subsequent periods and the Commis- 19so sioner may direct that the dealer shall pay, by way of 8 -- . . . eth Premchaud penalty, m add1t10n to the amount so assessed, , a sum Satramdas not exceeding one and a half times that amount. ' v.\n\nThe appellant appeared before the Sales Tax Officer The State of in response to this notice, but obtained several adjourn- B1har. ments till 16th March, 1946, and ultimately failed to\n\nB'a11Z Ali J. appear. Thereupon, he was assessed by the Sales Tax\n\nOfficer, according to the best of his judgment, and was ordered to pay Rs. 4,526-13-0 as tax and a penalty amounting to one and a half times the amount assessed, under section 10 (5) of the Act.\n\nThe appellant appealed to the Commissioner against the assessment and the penalty levied upon him, but his appeal was dismissed on the 6th June, 1946.\n\nHe then filed a petition for revision to the Board of Revenue, against the order of the Commissioner, but it was dismissed on the 28th May, 1947.\n\nHe thereupon moved the Board of Revenue to refer to the High Court certain questions of law arising out of its order of the 28th May, but Mr. N. Baksi, a Member of the Board, by his order of the 4th December, 1947, rejected the petition with the following observations :-\n\n\"No case for review of my predecessor's order made out. No reference necessary.\"\n\nSection 21 of the Act provides that if the Board of Revenue refuses to make a reference to the High Court, the applicant may apply to the High Court against such refusal, and the High Court, if it is not ' satisfied that such refusal was justified, may require the Board of Revenue to state a case and refer it to the High .Court.\n\nThe section also provides that \"the High Court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and shall send to the Board of Revenue a copy of such judgment under .the seal of the Court ......... and the Board shall .dispoe of he case accordingly.\" In accordance with tins sect10n, the appellant made an i.}}Nic:c\\ticm tQ the. High Court praying that the Board of Revenue may be called upon to state a case and refer\n\n1950 it to the High Court.\n\nDealing with this application,\n\n8 th Ph d the High Court pointed out that the Member of ' sat;::;:;.:~ the Board had not been asked to review his prev. decessor's order but only to state a case, and gave the The State of following directions :-\n\nBihor. \"The case must, therefore, go back to the Board of\n\nFa•t .!ti J, Revenue for a case to be stated or for a proper order rejecting the application to be passed.\"\n\nThe Board then reheard the matter and rejected the application of the appellant and refused to state a case and refer it to the High Court.\n\nThe appellant thereafter made an application to the High Court for requiring the Board of levenue to state a case, but this application was summarily rejected. He then applied to the High Court for leave to appeal to the Federal Court, which the High Court granted, following the decision of a Full Bench of the Lahore High Court in Feroze Shah Kaka Khel v. lncome-tax Commissioner, Punjab and N.W.F.P., Lahore1• The High Court pointed out in the order granting leave that in the appeal that was taken to the Privy Council in the Lahore case, an objection had been raised as to the competency of the appeal, but the Privy Council, while dismissing the appeal on the merits, had made the following observations:-\n\n\"The objection is a serious one.\n\nAdmittedly such an appeal as the present is not authorized by the Income.tax Act itself. If open at all, it must be justified under clause 29, Letters Patent of the Lahore High Court, as being an appeal from a final judgment, decree or order made in the exercise of original jurisdiction by a Division Bench of the High Court. And this present appeal was held by the Full Court to be so justified.\n\nBefore the Board the question was not fully argued, and their Lordships accordingly refrain from expressing any opinion whatever upon it\"(').\n\nThe High Court in granting leave to the appellant seems to have been influenced mainly by the fact that the view of the Lahore High Court had not been held by the Privy Council to be wrong.\n\n(ll A.LR. 1931Lah.138.\n\n(2) A.LR. 1933 P.O. 198, ...\n\nAt the commencement of the hearing of the appeal ~~ in this Court, a preliminary objection was raised by Seth Premchand the learned counsel for the respondent that this appeal Satramdas was not competent, and, on hearing both the parties, v. we are of the opinion that the objection is well- TheStateof founded.\n\nBihar.\n\nIn Sri Mahanth Harihar Gir v. Commissioner of In- Fa•t Ati J. come-tax, Bihar and Orissa (1) it was held by a special Bench of the Patna High Court that no appeal lay to His Majesty in Council under clause 31 of the Letters Patent of the Patna High Court, from an order of the High Court dismissing an application under section 66 (3) of the Income-tax Act, (a provision similar to section 21 of the Act before us) to direct the Commissioner of Income-tax to state a case.\n\nIn that case, the whole Jaw on the subject has been clearly and exhaustively dealt with, and it has been pointed out that the view taken by the Full Bench of the.Lahore High\n\nCourt in the case cited by the appellant was not supported by several other High Courts and that the Privy Council also, when the matter came before it, refrained from expressing any opinion as to its correctness. In our opinion, the view expressed in the Patna case is correct.\n\nClause 31 of the Letters Patent of the Patna High Court, on the strength of which the appellant resists the preliminary objection raised by the respondent, runs thus:-\n\n\"And We do further ordain that any person or persons may appeal to Us, Our heirs and successors, in\n\nOtr or Their Privy Council, in any matter not be mg of criminal jurisdiction,\" from any final judgment, decree, or order of the said High Court of Judicature at Patna, made on appeal and from any final judgment, decree on order made in .the i; xercise of original juis?i_ction by Judges of the said High Court or of any D1v1s10n Court, from which an appeal does not lie to the said High Court under the provisions contained in the 10th clause of these\n\n11) A.I.R. 1941 Pat. 225.\n\n1950 presents : provided, in either case, that the sum or\n\nS -- nrn.tter at issue is of the amount or value of not less eth Premchand h h d h I Satramdas t an ten t onsan rupees, or that snc ]UC gment,\n\nv, decree or order involves, directly or indirectly, some The State of claim, demand or question to or respecting property\n\nB•har. amounting to or of the value of not less than ten\n\nFazl Ali J. thousand rupees; or from any other final judgment, dectee or order made either on appeal or otherwise as aforesaid, when the said High Court declares that the case is a flt one for appeal to Us ...... \"\n\nIn order to attract the provisions of this clause, it is necessary to show, firstly, that the order under appeal is a final order ; and secondly, that it was passed in the exercise of the original or appellate jurisdiction of the High Court.\n\nThe second requirement clearly follows from the concluding part of the clause. It seems to us that the order appealed against in this case, !cannot be reg<\\rded as a final order, . because it does , not of its own force bind or affect the rights of the ; parties.\n\nAll that the High Court is required to do I under section 21 of the Bihar Sales Tax Act is to decide the question of law raised and send a copy of its judgment to the Board of Revenue. The Board of Revenue then has to dispose of the case in the light of the judgment of the High Court. It is true that the Board's order is based on what is stated by the High Court to be the correct legal position, but the fact remains that the order of the High Court standing by itself does not affect the rights of the parties, and the final order in the matter is the order which is passed ultimately by the Board of Revenue. This question has been fully dealt with in.Tata Iron and Steel Company\n\nv. Chief Revenue Authority, Bombay('), where Lnrd Atkinson pointed out that the order made by the High Court was merely advisory and quoted the following observations of Lord Esher in In re Knight and the Tabernacle Permanent Building Society('):-\n\n\"In the case of Ex parte County Council of Kent, where a statute provided that a case might be stated\n\n. ~1) 50 I.A. 'J12. 12> (1892] 2 Q. B. 613, at 617,\n\nfor the decision of the Court it was held that though !950 the language might prima facie import that there has -- b h 1 f d t d t h Seth P\"mwlher, As has been already stated, the main point arising Fazl dZ. J, in these appeals relates to the effect of the Madras Act upon this litigation. That Act was passed and came into effect in 1938, while the execution proceedings were still continuing. It will be recalled that the sale took place on the 6th July, 1935; and the application for setting it aside was not disposed of until the 6th March, 1943.\n\nBut, strangely enough, the judgmentdebtors did not apply fur any relief under the Madras Act during this period, and they made their applica. tion only after the sale had been confirmed and satisfaction of the decree had been entered. How far this belated application affects the right claimed by the judgment-debtors under the Act is one of the questions raised in these appeals, and I shall deal with it after referring to the material provisions of the Act and the findings of the High Court which have given rise to several debatable points.\n\nThe sections of the Act which are material for the purpose of these appeals are sections 3, 8 and 19. Section 3 defines an agriculturist and has a proviso stating that in certain cases a person shall not be deemed to be an agriculturist. The relevant clause of this pro~ visa, to which I shall also have to advert later, is clause (D) which runs thus:-\n\n\"Provided that a person shall not be deemed to be an 'agriculturist' if he -\n\n(D) is a landholder of an estate under the Madras Estates Land Act, 1908, or of a share or portion thereof in respect of which estate, share or portion any sum exceed!ng Rs. 50~ is paid as. peshkash or any sum exceedmg Rs. 100 1s paid as quit-rent, jodi, kattubadi,\n\n1950 poruppu or the like or is a janmi under the Malabar Tenancy Act, 1929, who pays any sum exceeding Sri Ra•ga Rs. 500 as land revenue to the Provincial Govern- Nilayrim R11ma . ent \" Kri11hna Rio tn v.\n\nThe precise question which is said to arise with Kandokori reference to this provision is whether by reason of being Ohe!layamma the owners of village Tedlam, the judgment-debtors\n\n••• Another. should be held to be not entitled to relief under the\n\nFa•l Ali J.\n\nAct. The other material sections 8 and 19 run as follows:-\n\n\"8. Debts incurred before the 1st October, 1932, shall be scaled down in the manner mentioned hereunder, namely:-\n\n(1) All interest outstanding on the 1st October, 1937, in favour of any creditor of an agriculturist whether the same be payable under law, custom or contract or under a decree of Court and whether the debt or other obligation has ripened into a decree or not, shall be deemed to be discharged, and only the principal or such portion thereof as may be outstanding shall be deemed to be the amount repayable by the agriculturist on that date.\n\n(2) Where an agriculturist has paid to any creditor twice the amount of the principal whether by way of principal or interest or both, such debt including the principal, shall be deemed to be wholly discharged.\n\n(3) Where the sums repaid by way of principal or interest or both fall short of t\\vice the amount of the principal, such amount only as would make up this shortage, or the principal amount or such portion of the principal amount as is outstanding, whichever is smaller, shall be repayable.\n\n(4) Subject to the provisions of -sections 22 to 25, nothing contained in sub-sections (1), (2) and (3) shall be deemed to require the creditor to refund any sum which has been paid to him, or to increase the liability of a debtor to pay any sum in excess of the arp.ount which would have been payable by him if this Act had not been passed. -\n\nS.C.R.\n\nSUPREME COURT REPORTS 813 - Explanation.-Where a debt has been renewed or\n\n19M included in a fresh document in favour of the same cred!tor, the principal originally advanced by the N•l~~~a~~:a creditor together with such sums, if any, as have been Krishna Rao subsequently advanced as principal shall alone be v. treate<; t as the principal sum repayable by the agri- Kandokori cu]tunst under this section.\n\nCh•1layamma\n\nand Another.\n\n19. Where before the commencement of this Act, . a Court has passed a decree fo.r the repayment of a Fa•I ..11; J. debt, it shall, on the application of any judgmrntdebtor who is an agriculturist or in respect of a Hindu joint family debt, on the application of any member of the family whether or not he is the judgment.debtor or on the application of the decree-holder, apply the provisions of this Act to such decree and shall, notwithstanding anything contained in the Code of Civil Procedure, 1908, amend the decree accordingly or enter satisfaction, as the case may be: Provided that all payments made or amounts recovered, whether before or after the commencement of this Act, in respect of any such decree shall first be applied in payment of all costs as originally decreed to the creditor.\"\n\nThese sections are material, because in the present case the judgment debtors asked the decree to be amended under section 19 of the Act and they were held to be entitled to relief under section 8.\n\nHaving referred to the relevant provisions of the Act, it becomes necessary now to state the main findings of the High Court upon which the decision of this appeal will turn. These findings are-\n\n(1) that tfie sale of Tedlam village, which was held on the 6th July, 1935, and confirmed on the 6th March, 19-13, was a good sale;\n\n(2) that by this sale, the title to the Tedi am village passed to the de'cree-holder, and in hearing the appeal the High Court was justified in proceeding on the footing that the judgment-debtors having ceased to be the owners of Tedlam village after its sale, were not\n\nio~\n\nSri Ranga Nilaylun Rama\n\nK•1shna Rao v.\n\nKandokori CJu1llay11nuna\n\nand Anothtr.\n\nFaal Ali J.\n\nhit by clause (D) of the proviso to section 3 of the Act ; and\n\n(3) that the decree had been satisfied at the date of the sale and the decree-holder was liable to repay to the judgment-debtors the full price of the property which was sold.\n\nThe main contentions directed against the conclusions arrived at by the High Court are: firstly, that they are self-contradictory, because if the sale was an effective sale on the date it was held or confirmed, the decree was also atisfied on that date and the juflgmentdebtors were no longer entitled to invoke the provisions of the Madras Act; and secondly, that the view taken by the learned Judges of the High Court that notwithstanding the appeal against the order ref using to set aside the sale they could proceed on the footing that the judgment-debtors had ceased to be the owners of Tedlam village on the date of the sale was unsound in law. .\n\nI will first deal with the second point which appears to me to require serious consideration. The High Court has in my opinion rightly proceeded on the footing that the ownership of Tedlam village would bring the judgment-flebtors within the mischief of clause (D} of the proviso to section 3 of the Act, and would disentitle them to any relief thereunder. This view was contested before us on behalf of the judgmentdebtors on two grounds :-(1) that the grant in favour of the ancestor of the judgment-debtors did not comprise a whole inam village and what they owned was therefore .not an estate under the Madras Estates Land Act (Madras Act I of 1908) ; 12) that on the date of the application, the judgment-debtors were not landholders of village Tedlam because the village was in the possession of a receiver since 1st February, 1937, and the latter was in law the landholder on the crucial date.\n\nNone of these contentions however appears to me to have any force. The first contention was sought to be supported by Exhibit P-1 which is a register of inams and which shows that poramboke or waste lands to the\n\nxtent of 599 acres had to be deducted from the area\n\n...\n\nof the inam. The point however has been dealt with 1950 very fully and clearly by the learned Subordinate s . R Judge, who has rightly pointed out that it has no force Ns found on the body of Dalip v.\n\nSingh ...... vVhat kind of bullet it was which, though it Th• State. had blackened the area where it entered the brain showing tliat it had been fired from not far away, did not Fa•l Ali J. shatter the brain we do not know. \\Vhat kind of projectile it was which entered the body (which if the evidence is to be believed was fired at from a few feet at Dalip Singh) and passed through the body without shattering the inside of the chest or causing extensive damage therein is also not kn0wn. Mr.Sethi (counsel for the accused) quoted Taylor's book on medical jurisprudence and Hatcher's book on ballistics and argued that the firing must have bern from a place between 600 and 1,200 yards away in order that the projectile may pass through and through the body and not shatter it. That of cuurse pre-supposes that the barrel of the gun. using the word ' gun' in a generic sense, is grooved which causes a projectile to go forward with a rotatory motion of something under a quart<.>r of a million revolutions a minute and travel. ling at the rate of about 2,000 rniks an hour when it leaves the gun ......... \\Ve do not know whether the barrel of this gun (exhibit P.16) is grooved or not. It is a single birrelled gun and is country made.\n\nThe likelihood is that the barrel is not grooved.\"\n\nOn a careful re\" ding of the judgment under appeal. it appears that 1 he learned ] uclges of the High Court strongly felt that they had no adequate explanation in the oral evidence before them for certain puzzling features of the injuries on Dalip Singh.\n\nThis is exactly what we also feel in this case, and it seems to us that the evidence which has been adduced falls short of proof in regard to a very material part of the prosecution case.\n\nIn a case where death is due to injuries or wounds caused by a lethal weapon, it has always been considered to be the duty of the prosecu. tion to prove by expert evidence that it was likely or at least possible for the injuries to have been caused with the weapon with which and in the manner in which they are alleged to have been caused. It is\n\nelementary that where the prosecution.has a definite 1950 or positive case, it must prove the whole of that case.\n\nIn the present case, it is doubtful whether the injuries Mohindor Singh which are attributed to the appellant were caused by Th ;; 1 a gun or by a rifle.\n\nIndeed, it seems more likely that ' a' they were caused by a rifle than by a gun-, and yet the Fa•l Ali J. case for the prosecution is that the appellant was armed with a gun and, in his examination, it was definitely put to him that he was armed with the gun P-16. It is only by the evidence of a duly qualified expert that it could have been ascertained whether the injuries attributed to the appellant were caused by a gun or by a rifle and such evidence alone could settle the controversy as to whether they could possi. bly have been caused by a fire-arm being used at such a close range as is suggested in the evidence. It is clear, and it is also the prosecution case, that only 2 shots were fired at Dalip Singh and one of the crucial points which the prosecution had to prove was that these shots were fired by two persons and not by one man, and both the shots were fired in such manner and from such distance as is alleged by the eye witnesses. There is, in our opinion, a gap in the prosecution evidence on a most fundamental point and the error which has been committed by the courts below is to ignore the gap and decide the case merely upon the oral evidence of 3 witnesses, two of whom are mere chance witnesses and not altogether independent persons, and the evidence of the third witness is open to criticism on the ground of his partisanship as well as the improbability of his having been able to see the firing at his brother after he had himself been shot at the back of the neck. The learned Judges of the High Court, after commenting upon the entire evidence, say in their judgment:-\n\n\" We are thus left with the evidence of the three witnesses of the prosecution together with the state of wounds as shown by the medical evidence and an, unsatisfactory statement of Dr. Goy le,\"\n\n1900 They reject the evidence of Dr. Goy le and they consider the nature of the wounds to have created a Mohindtr Smghserious difficulty in the case. Having arrived at these\n\n1'he ~1,. 1 ,. conclusions, it was a serious thing to rest the appellant's conviction wholly upon the oral testimony in Far! Ali J. the case which has remained unchecked and uncon. firmed by expert evidence. The real position appears to be that the prosecution case cannot be said to be wholly proved but only partly proved if it is permissible to use such an expression. This Court, as was pointed out in Pritam Singh v. The State (1), will not entertain a criminal appeal except in special and exceptional cases where it is manifest that by a disregard of the forms of legal process or by a violation of the principles of natural justice or otherwise substantial and grave injustice has been done. It seems to us that the present case comes within the rule laid down, because the appellant has been convicted notwithstanding the fact that the evidence is wanting on a most-material part of the prosecution case.\n\nThis is enough to dispose of this appeal, but we are constrained to say that we are not altogether happy about the manner in which the plea of alibi put forward by the appellant has been disposed of by the courts below.\n\nOrdinarily this court will not look beyond the findings of fact arrived at by the courts below, but we find that in the present case the deci. sion on the plea of alibi has been arrived at in disre. gard of the principle that the standard of proof which is required in regard to that plea must be the same as the standard which is applied to the prosecution evidence and in both cases it should be a reasonable standard. It is common ground in this appeal that the appellant was summoned to appear before the Naib Tehsildar on the 28th February, 1949, which was the date fixed for dealing with Bachittar Singh's complaint. Ordinarily and without looking at anything else, there should have been nothing improbable about his appearance before the Naib Tehsildar on that date, but in the present case there is positive\n\n(11 [1950] s.c, R. 453,\n\nevidence that an application for a tacca vi loan bearing !95o that date and also bearing the thumb impression of. -- the appellant wa.s put up before the Naib Tehsildar J!ohinder Singh and that was dealt with by him on that very da.y.\n\nThe ?tate.\n\nThere is also affirmative evidence of a witness to prove that the appellant was present in the Naib Tehsildar's Fail Ali J. court. This witness is undoubtedly closely related to the appellant but his evidence is supported by probability and a written document. One of the points raised by the prosecution was that the summons for appearance on the 28th February was not served upon Mohinder Singh, but such evidence as there is on the record bearing on this point has certain peculiar features. The prosecution having cited the N aib Tehsildar and the Ahlrnad (Bench Clerk) as witnesses in the case gave them up and stated that the former had been won over by the appellant. This allegation could have been substantiated in the cross.examination of the Naib Tehsildar who was examined as a defence witness, but nothing was elicited from him to support such a charge. From the evidence of the Naib Tehsildar, it appears that on the 5th July, 1949, the Public Prosecutor showed him exhibit P.S. (which is an order directing the appearance of the seven persons including the appellant mentioned by Bachittar Singh in his complaint, before the Naib Tehsildar on the 28th February, 1949), and that he told the Public Prosecutor that 6 or 7 persons appeared in his court on that date. After this incident, on the 6th July, 1949, the Public Prosecutor informed the Court that he would \"give up the Naib Tehsildar as he has been won over ''. The evidence of the process peon is of a somewhat suspicious character, because he has conveniently forgotten every material detail. The appellant asserteci at the trial that the original report of the process peon had been suppressed and another report had been fabricated and substituted in its place.\n\nAn application to this effect was ma de by h irn before the corn rnitting Magistrate, and he also examined a handwriting expert to prove some of his allegations.\n\nNeither of the courts below has dealt with the evidence\n\n19~0 of this expert. The evidence of the Investigating . -- 8 . hOfficer as recorded by the Sessions Judge is to the Moh\"'\"\" ••g f JI ff t •. o owmg e ec :-\n\nThe stat•. \"P.B. and P.C. were obtained by me from the headquarters. Along with P.B. and P.C. the Parvana h'a•I Ali J.\n\nP.S. was also received by me. After going through the zimnis, the witness states that the aforesaid documents P.B., P.C. and P.S. were summoned by the committing Magistrate and were not sent for by the witness.\n\nOn 16th March, 1949, a Foot Constable was certainly sent to Zira to bring the said file.\n\nBut since the file had been sent to the headquarters, therefore, the said constable returned quite blank. I never inspected this file at the headquarters.\"\n\nThe most material document with which we are concerned is P.S. which should have contained an endorsement of service of summons on the persons against whom Bachittar Singh had complained. It is clear from the first part of the evidence of the Investigating Officer that he had received the report of the process peon which was endorsed on the back of P .S., from the headquarters, but he says later that the papers were sent for but they did not arrive. It is surprising that when a document was the subject of so much controversy he should have said by mistake that he had received it. One of the comments made by the learned Sessions Judge in dealing with the application alleged to have been made by the appellant on the 28th February, 1949, for a taccavi loan is that after producing the application before the N aib Tehsildar on that date, Mohinder Singh could have reached his village by noon time, but on this point the learned Sessions Judge seems to have wholly ignored the evidence of the Naib Tehsildar that he usually dealt with such applications between 12 and 4 P.M. on working days, and also the affirmative evidence of Joginder Singh.\n\nIn our opinion, there has been in substance no fair and proper trial in this case, and we are constrained to allow this appeal, set aside the conviction of the appellant under sections 302 and 307 read with section 34\n\n...\n\n. .\n\nof the Indian Penal Code, and direct that he be set at 195\" liberty forthwith. In crdinary circumstances, we -d- . . b Afohin er Singh might have remanded the case for a fresh tnal, ut we v. consider that such a course would, in the present The State. case, be unfair and contrary to settled practice, seeing that the appellant has been in a state of suspense over Fail Ali J. his sentence of death for more than a year .\n\nAppeal allowed.\n\nAgent for the appellant: R.S. Narula.\n\nAgent for the respondent: P.A. Mehta.\n\nMANGAN LAL DEOSHI\n\nMOHAMMAD MOINUL HAQUE & OTHERS.\n\n[SHRI HARILAL KANIA C.J., PATANJALI SASTRT\n\nand DAS JJ.]\n\nIndian R bighas which evidently had not till then passed into their possession.\n\nNow, sub-section (I) of section 17 of the Registration Act, enumerates five categories of documents of which registration is made compulsory which include\" (d) leases of immoveable property from year to year, or for any term exceeding one year, or reserving a yearly rent;\". Sub.section (2) however provided that \"nothing in clauses (b) and (c) of sub-section (I) applies to ...... (vi) any decree or order of court.\" It may be mentioned in passing that this clause was amended with affect from the 1st April, 1930, by the Transfer of Property (Amendment) Supplementary Act, 1929, so as to exclude from the scope of the exception com pro mise decrees comprising immovable property other than that which is the subject-matter of the suit. But\n\nMangan La, l\n\nDeoshi\n\nMoliammaci .Uoinul Haqu,4\n\nct Oth6ra, -,- PatanjaU\n\nSastr~ J.\n\n19~0\n\nMangan L:il\n\nDJoshi\n\nMohrimmad Moin.ul Haque\n\ntl Othors.\n\nPatanjali\n\nS'astri J.\n\nthe amendment cannot affect the document here in question which came into existence in 1923. Before tlie amendment, the clause was held to cover even compromise decrees comprising immovable property which was not the subject matter of the suit : lVide Hemanta Kumari Debi v. Ji.1idnapur Zamindari Co. (1)].\n\nThat decision app)ies to the present case and obviates the objection that because the compromise in question covered also the remaining 5,300 bighas which were not the subject-matter of the title suit of 1921, it was outside the scope of the exception in sub-section (2), clause (vi).\n\nThe only question, therefore, is whether the compromise decree is a \"lease\" [which expression includes \"an agreement to lease\" by the definition in section 2 (7)] within the meaning of cl. (d) of sub-section (1).\n\nIt is obvious that if th~ compromise decree falls within clause (d) of sub.section (1) it would not be protected under clause (vi) of sub-sect.ion (2) which excepts only documents falling under the categories (b) and (c) of sub-section (1).\n\nThe High Court was of opinion that, on a proper construction of the terms of the compromise, it did not fall under clause (d).\n\nManohar Lall J ., who delivered the leading judgment, observed : \"It was a tripartite agreement embodied in the decree of the court and was, therefore, exempt from registration. It will be observed also that so far as the defendants were concerned, their possession of the 500 bighas was not interfered with and they still remained in possession as the lessees, but instead of paying the royalty to the plaintiffs it was agreed between all the parties that the defendants would pay the royalty in future to Shibsaran and Sitaram. If the matter had stood there, the learned Advocate for the appellant could not have seriously contested the position, but he vehemently argued that when the agreement was not to pay the same amount of royalty or commission as previously agreed to but an altered amount of royalty and commission, the document should be held to fall within the mischief of section 17 ( 1) ( d) of the\n\n(1) 47 C•I. 485; P.O.\n\nRegistration Act. The answer to this contention is, as I have stated just now, to be found in the Full Bench decision of this court:\" [see Charu Chandra Mitra's case (')]. It was there held that a mere alteration of the rent reserved does not make the transaction a new lease so as to bring it within clause (d) of subsection (1).\n\nWe are unable to share this view. It oversimplifies the compromise transaction which, in our opinion, involves much more than a mere alteration of the royalties stipulated for in the previous pattas executed by Kumar. Nor can we accept the suggestion of Mr. Chatterjee for the respondents that the compromise operated as an assignment to the Singhs by Kumar of the latter's reversion under the \"lease granted to the Deoshis and all that the latter did was to acknowledge the Singhs as their landlords and attorn\n\nto them.\n\nOn this view it was said that the transaction would not fall under clause (d), although it would fall under clause (b) but then would be saved by the exception in clause (vi) of sub-section (2).\n\nThe argument, however, overlooks that Kumar had leased the area of 5,800\n\nbighas to the Singhs by his patta dated I Ith !\\!arch, 1921, and the compromise by providing that the Singhs should pay the reduced royalty of la. 9p. per ton in respect of the whole area preserved Kumar's reversion intact.\n\nHe could not therefore be deemed to have assigned any part of his interest in 5,800 bighas as landlord to the Singhs who continue to hold the entire extent as tenants under him. 'vVhat the compromise really did was, as stated already, to bring the Singhs and the Deoshis into a new legal relationship as underlessor and under-lessee in respect of 500 bighas which were the subject-matter of the title suit; in other words, its legal effect was to create a perpetual underlease between the Singhs and the Deoshis which would clearly fall under clause (d) but for the circumstance that it was to take effect only on condition that the\n\nSingh~ paid Rs. 8,000 to Kumar within 2 month::;\n\nIP P, L. J. 2>,5.\n\nMangan Lal\n\nDeoshi\n\nMohammad Moinul Haqu1\n\ntt Others.\n\nPatanjali\n\nSastri J.\n\nManann Lal\n\nDeas hi\n\n' Mohammad Moi.nul Haque\n\n& Others.\n\nPatanjali\n\nSaatri J,\n\nDec, 1.\n\nthereafter. As pointed out by the Judicial Committee in H emanta K uinar' s case (1) \"An agreement for a lease, which a lease is by the statute declared to include, must, in their Lordships' opinion, be a document which effects an actual demise and operates as a lease ...... The phrase which in the context where it occurs and in the statute in which it is found, must in their opinion relate to some document which creates a present and immediate interest in the land.\" The compromise decree expressly provides that unless the sum of Rs. 8,000 was paid within the stipulated time the Singhs were not to execute the decree or to take possession of the disputed property. Until the payment was made it was impossible to determine whether there would be any underlease or not. Such a contingent agreement is not within clause (d) and although it is covered by clause (b), is excepted by clause\n\n(vi) of sub-section (2). \\Ve therefore agree with the conclusion of the High Court though on different grounds and dismiss the appeal with costs.\n\nAppeal dismissed.\n\nAgent for the appellant: P. K. Chatterjee.\n\nAgent for the respondent : Sukumar Glzose.\n\nRAJA KAMALA RANJAN ROY\n\nBAIJNATH BAJORIA.\n\n(SHRI HARILAL KANIA C.J., PATANJALI SASTRI\n\nand DAS JJ.)\n\nConlract~Specific perforn\"nce-0.ff:r to purchase leasehold right-Stipulation that lesse'J sho-uld obtain consent of lessor-Lessor ttnreasonably refflsing consent-Lessee, 1vhethe' relieved of liribility f0 assign-Suit for sp-1cifi~ verformince by purchasftr-Maintain.• abilitr1-Lea.s9 deed-Covenant prohibitin1 assignm; nt of lease without l . \" l _f!sor s co:isent, Sit' i co 1isent, lunv, vr, not to b3 11,11reasonably ui hhJld in case of respectable p!rso'i \"-llieaniru; and effect of co1,>!':1tant.\n\n(1) 47 Ca.I. 48-'i, at p. 494.", "total_entities": 62, "entities": [{"text": "Indian Penal Code", "label": "STATUTE", "start_char": 47, "end_char": 64, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Fail Ali", "label": "OTHER_PERSON", "start_char": 405, "end_char": 413, "source": "ner", "metadata": {"in_sentence": "case, be unfair and contrary to settled practice, seeing that the appellant has been in a state of suspense over Fail Ali J. his sentence of death for more than a year ."}}, {"text": "R.S. Narula", "label": "LAWYER", "start_char": 505, "end_char": 516, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: R.S. Narula."}}, {"text": "P.A. Mehta", "label": "LAWYER", "start_char": 545, "end_char": 555, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: P.A. Mehta."}}, {"text": "MANGAN LAL DEOSHI", "label": "PETITIONER", "start_char": 558, "end_char": 575, "source": "metadata", "metadata": {"canonical_name": "MANGAN LAL DEOSHI", "offset_not_found": false}}, {"text": "MOHAMMAD MOINUL HAQUE & OTHERS", "label": "RESPONDENT", "start_char": 577, "end_char": 607, "source": "metadata", "metadata": {"canonical_name": "MOHAMMAD MOINUL HAQUE & OTHERS", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA C.J.", "label": "JUDGE", "start_char": 611, "end_char": 634, "source": "metadata", "metadata": {"canonical_name": "SHRI HARILAL KANIA C.J.", "offset_not_found": false}}, {"text": "DAS JJ.", "label": "JUDGE", "start_char": 658, "end_char": 665, "source": "metadata", "metadata": {"canonical_name": "SUDHI RANJAN DAS", "offset_not_found": false}}, {"text": "s. 17", "label": "PROVISION", "start_char": 699, "end_char": 704, "source": "regex", "metadata": {"statute": null}}, {"text": "s1", "label": "PROVISION", "start_char": 833, "end_char": 835, "source": "regex", "metadata": {"statute": null}}, {"text": "Registration Act", "label": "STATUTE", "start_char": 1031, "end_char": 1047, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "s. 8", "label": "PROVISION", "start_char": 1453, "end_char": 1457, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 17", "label": "PROVISION", "start_char": 1740, "end_char": 1745, "source": "regex", "metadata": {"statute": null}}, {"text": "High Court of Judicature at Patna", "label": "COURT", "start_char": 1950, "end_char": 1983, "source": "ner", "metadata": {"in_sentence": "Dec. l,\n\n1950 Appeal from a judgment and decree of the High Court of Judicature at Patna in Appeal from Appel- M\";;!:,:ti1 late Decree No."}}, {"text": "S. P. Sinha", "label": "OTHER_PERSON", "start_char": 2227, "end_char": 2238, "source": "ner", "metadata": {"in_sentence": ".tOthera S. P. Sinha (P. K. Bose, with him) for the appellant."}}, {"text": "N. C. Chatterjee", "label": "LAWYER", "start_char": 2282, "end_char": 2298, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee and Panchanan Ghosh (Chandra Narayan Naik, with them) for the respondent."}}, {"text": "Panchanan Ghosh", "label": "LAWYER", "start_char": 2303, "end_char": 2318, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee and Panchanan Ghosh (Chandra Narayan Naik, with them) for the respondent."}}, {"text": "Chandra Narayan Naik", "label": "LAWYER", "start_char": 2320, "end_char": 2340, "source": "ner", "metadata": {"in_sentence": "N. C. Chatterjee and Panchanan Ghosh (Chandra Narayan Naik, with them) for the respondent."}}, {"text": "Patanjali PATANJALI SASTRI", "label": "JUDGE", "start_char": 2436, "end_char": 2462, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nPatanjali PATANJALI SASTRI ].-This appeal arises out of a 8••tri J. suit brought by the respondent in the court of the Subordinate Judge, Dhanbad, for recovery oi arrears of royalty and cess from the appellant and another alleged to be due under a compromise decree passed on the 6th March, 1923, in a previous suit between the predecessors in interest of the parties."}}, {"text": "11th March, 1921", "label": "DATE", "start_char": 3189, "end_char": 3205, "source": "ner", "metadata": {"in_sentence": "On 11th March, 1921, one Kumar Krishna Prasad Singh (hereinafter referred to as Kumar) granted a permanent lease of the right to the underground coal in 5,800 bighas of land belonging to him to Shibsaran Singh and Sitaram Singh (hereinafter referred to as the Singhs) by a registered patta stipulating for a salami of Rs."}}, {"text": "Kumar Krishna Prasad Singh", "label": "OTHER_PERSON", "start_char": 3211, "end_char": 3237, "source": "ner", "metadata": {"in_sentence": "On 11th March, 1921, one Kumar Krishna Prasad Singh (hereinafter referred to as Kumar) granted a permanent lease of the right to the underground coal in 5,800 bighas of land belonging to him to Shibsaran Singh and Sitaram Singh (hereinafter referred to as the Singhs) by a registered patta stipulating for a salami of Rs."}}, {"text": "Shibsaran Singh", "label": "OTHER_PERSON", "start_char": 3380, "end_char": 3395, "source": "ner", "metadata": {"in_sentence": "On 11th March, 1921, one Kumar Krishna Prasad Singh (hereinafter referred to as Kumar) granted a permanent lease of the right to the underground coal in 5,800 bighas of land belonging to him to Shibsaran Singh and Sitaram Singh (hereinafter referred to as the Singhs) by a registered patta stipulating for a salami of Rs.", "canonical_name": "Shibsaran Singh"}}, {"text": "Sitaram Singh", "label": "OTHER_PERSON", "start_char": 3400, "end_char": 3413, "source": "ner", "metadata": {"in_sentence": "On 11th March, 1921, one Kumar Krishna Prasad Singh (hereinafter referred to as Kumar) granted a permanent lease of the right to the underground coal in 5,800 bighas of land belonging to him to Shibsaran Singh and Sitaram Singh (hereinafter referred to as the Singhs) by a registered patta stipulating for a salami of Rs.", "canonical_name": "Sitaram Singh"}}, {"text": "7th June, 1921", "label": "DATE", "start_char": 3648, "end_char": 3662, "source": "ner", "metadata": {"in_sentence": "On 7th June, 1921, Kumar executed another permanent patta leasing the right to the coal in 500 bighas out of the 5,800 bighas referred to above to one Prayagji Bo1llavji Deoshi and his son Harakchand Deoshi (hereinafter referred to as the Deoshis)."}}, {"text": "Kumar", "label": "RESPONDENT", "start_char": 3664, "end_char": 3669, "source": "ner", "metadata": {"in_sentence": "On 7th June, 1921, Kumar executed another permanent patta leasing the right to the coal in 500 bighas out of the 5,800 bighas referred to above to one Prayagji Bo1llavji Deoshi and his son Harakchand Deoshi (hereinafter referred to as the Deoshis).", "canonical_name": "Kumar"}}, {"text": "Prayagji Bo1llavji Deoshi", "label": "OTHER_PERSON", "start_char": 3796, "end_char": 3821, "source": "ner", "metadata": {"in_sentence": "On 7th June, 1921, Kumar executed another permanent patta leasing the right to the coal in 500 bighas out of the 5,800 bighas referred to above to one Prayagji Bo1llavji Deoshi and his son Harakchand Deoshi (hereinafter referred to as the Deoshis)."}}, {"text": "Harakchand Deoshi", "label": "OTHER_PERSON", "start_char": 3834, "end_char": 3851, "source": "ner", "metadata": {"in_sentence": "On 7th June, 1921, Kumar executed another permanent patta leasing the right to the coal in 500 bighas out of the 5,800 bighas referred to above to one Prayagji Bo1llavji Deoshi and his son Harakchand Deoshi (hereinafter referred to as the Deoshis)."}}, {"text": "Subordinate Judge of Dhan", "label": "COURT", "start_char": 4178, "end_char": 4203, "source": "ner", "metadata": {"in_sentence": "1291of1921) in the Court of the Subordinate Judge of Dhan bad for a declaration of their title and for possession of the 500 bighas leased to the Deoshis under the aforesaid patta of 7th June, 1921."}}, {"text": "Deoshis", "label": "OTHER_PERSON", "start_char": 4292, "end_char": 4299, "source": "ner", "metadata": {"in_sentence": "1291of1921) in the Court of the Subordinate Judge of Dhan bad for a declaration of their title and for possession of the 500 bighas leased to the Deoshis under the aforesaid patta of 7th June, 1921."}}, {"text": "6th March, 1923", "label": "DATE", "start_char": 4476, "end_char": 4491, "source": "ner", "metadata": {"in_sentence": "The suit was however compromised on 6th March, 1923, by all the parties and a decree based on the compromise was also passed on the same day."}}, {"text": "3rd October, 1942", "label": "DATE", "start_char": 4755, "end_char": 4772, "source": "ner", "metadata": {"in_sentence": "The interest of the Singhs was brought to sale in 1938 in execution of a decree obtained against them and was purchased by the plaintiff who instituted the present suit, on 3rd October, 1942, claiming the royalty and cesses payable under the compromise decree for the period from Pous 1345 to Asadh 1349 B. S. from defendants 1 and 2 as the representatives of the Deoshis who entered into the compromise of March, 1923."}}, {"text": "Kumar", "label": "RESPONDENT", "start_char": 5267, "end_char": 5272, "source": "ner", "metadata": {"in_sentence": "3 (Kumar).", "canonical_name": "Kumar"}}, {"text": "Rahraband", "label": "GPE", "start_char": 5599, "end_char": 5608, "source": "ner", "metadata": {"in_sentence": "3 executed in favour of the plaintiffs in respect of 5 ,800 bighas of coal land in village Rahraband shall remain in force, and the plaintiffs will get a decree of declaration of their right and title to the 500 bighas of coal land in dispute but defendants 1 and 2 (the Deoshis) shall hold possession as tenants."}}, {"text": "s. 6", "label": "PROVISION", "start_char": 6727, "end_char": 6731, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 6", "label": "PROVISION", "start_char": 7594, "end_char": 7598, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 8", "label": "PROVISION", "start_char": 8812, "end_char": 8816, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 6", "label": "PROVISION", "start_char": 8827, "end_char": 8831, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 8", "label": "PROVISION", "start_char": 9390, "end_char": 9394, "source": "regex", "metadata": {"statute": null}}, {"text": "section 17", "label": "PROVISION", "start_char": 9696, "end_char": 9706, "source": "regex", "metadata": {"statute": null}}, {"text": "Registration Act", "label": "STATUTE", "start_char": 9714, "end_char": 9730, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "1st April, 1930", "label": "DATE", "start_char": 10171, "end_char": 10186, "source": "ner", "metadata": {"in_sentence": "It may be mentioned in passing that this clause was amended with affect from the 1st April, 1930, by the Transfer of Property (Amendment) Supplementary Act, 1929, so as to exclude from the scope of the exception com pro mise decrees comprising immovable property other than that which is the subject-matter of the suit."}}, {"text": "Supplementary Act, 1929", "label": "STATUTE", "start_char": 10228, "end_char": 10251, "source": "regex", "metadata": {}}, {"text": "section 2", "label": "PROVISION", "start_char": 11329, "end_char": 11338, "source": "regex", "metadata": {"statute": null}}, {"text": "Manohar Lall", "label": "JUDGE", "start_char": 11765, "end_char": 11777, "source": "ner", "metadata": {"in_sentence": "Manohar Lall J .,"}}, {"text": "Shibsaran", "label": "OTHER_PERSON", "start_char": 12272, "end_char": 12281, "source": "ner", "metadata": {"in_sentence": "It will be observed also that so far as the defendants were concerned, their possession of the 500 bighas was not interfered with and they still remained in possession as the lessees, but instead of paying the royalty to the plaintiffs it was agreed between all the parties that the defendants would pay the royalty in future to Shibsaran and Sitaram.", "canonical_name": "Shibsaran Singh"}}, {"text": "Sitaram", "label": "OTHER_PERSON", "start_char": 12286, "end_char": 12293, "source": "ner", "metadata": {"in_sentence": "It will be observed also that so far as the defendants were concerned, their possession of the 500 bighas was not interfered with and they still remained in possession as the lessees, but instead of paying the royalty to the plaintiffs it was agreed between all the parties that the defendants would pay the royalty in future to Shibsaran and Sitaram.", "canonical_name": "Sitaram Singh"}}, {"text": "section 17", "label": "PROVISION", "start_char": 12651, "end_char": 12661, "source": "regex", "metadata": {"statute": null}}, {"text": "Registration Act", "label": "STATUTE", "start_char": 12703, "end_char": 12719, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Charu Chandra Mitra", "label": "OTHER_PERSON", "start_char": 12842, "end_char": 12861, "source": "ner", "metadata": {"in_sentence": "The answer to this contention is, as I have stated just now, to be found in the Full Bench decision of this court:\" [see Charu Chandra Mitra's case (')]."}}, {"text": "Chatterjee", "label": "OTHER_PERSON", "start_char": 13293, "end_char": 13303, "source": "ner", "metadata": {"in_sentence": "Nor can we accept the suggestion of Mr. Chatterjee for the respondents that the compromise operated as an assignment to the Singhs by Kumar of the latter's reversion under the \"lease granted to the Deoshis and all that the latter did was to acknowledge the Singhs as their landlords and attorn\n\nto them."}}, {"text": "Mangan Lal", "label": "RESPONDENT", "start_char": 14756, "end_char": 14766, "source": "ner", "metadata": {"in_sentence": "Mangan Lal\n\nDeoshi\n\nMohammad Moinul Haqu1\n\ntt Others.", "canonical_name": "MANGAN LAL DEOSHI"}}, {"text": "Manann Lal", "label": "RESPONDENT", "start_char": 14833, "end_char": 14843, "source": "ner", "metadata": {"in_sentence": "Patanjali\n\nSastri J.\n\nManann Lal\n\nDeas hi\n\n' Mohammad Moi.nul Haque\n\n& Others.", "canonical_name": "MANGAN LAL DEOSHI"}}, {"text": "Saatri", "label": "JUDGE", "start_char": 14902, "end_char": 14908, "source": "ner", "metadata": {"in_sentence": "Patanjali\n\nSaatri J,\n\nDec, 1."}}, {"text": "H emanta K uinar", "label": "JUDGE", "start_char": 14978, "end_char": 14994, "source": "ner", "metadata": {"in_sentence": "As pointed out by the Judicial Committee in H emanta K uinar' s case (1) \"An agreement for a lease, which a lease is by the statute declared to include, must, in their Lordships' opinion, be a document which effects an actual demise and operates as a lease ...... The phrase which in the context where it occurs and in the statute in which it is found, must in their opinion relate to some document which creates a present and immediate interest in the land.\""}}, {"text": "P. K. Chatterjee", "label": "LAWYER", "start_char": 16007, "end_char": 16023, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: P. K. Chatterjee."}}, {"text": "Sukumar Glzose", "label": "LAWYER", "start_char": 16053, "end_char": 16067, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent : Sukumar Glzose."}}, {"text": "RAJA KAMALA RANJAN ROY", "label": "JUDGE", "start_char": 16070, "end_char": 16092, "source": "ner", "metadata": {"in_sentence": "RAJA KAMALA RANJAN ROY\n\nBAIJNATH BAJORIA."}}, {"text": "BAIJNATH BAJORIA", "label": "JUDGE", "start_char": 16094, "end_char": 16110, "source": "ner", "metadata": {"in_sentence": "RAJA KAMALA RANJAN ROY\n\nBAIJNATH BAJORIA."}}, {"text": "SHRI HARILAL KANIA", "label": "JUDGE", "start_char": 16114, "end_char": 16132, "source": "ner", "metadata": {"in_sentence": "(SHRI HARILAL KANIA C.J., PATANJALI SASTRI\n\nand DAS JJ.)", "canonical_name": "SHRI HARILAL KANIA C.J."}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 16139, "end_char": 16155, "source": "ner", "metadata": {"in_sentence": "(SHRI HARILAL KANIA C.J., PATANJALI SASTRI\n\nand DAS JJ.)"}}, {"text": "DAS", "label": "JUDGE", "start_char": 16161, "end_char": 16164, "source": "ner", "metadata": {"in_sentence": "(SHRI HARILAL KANIA C.J., PATANJALI SASTRI\n\nand DAS JJ.)"}}, {"text": "s9", "label": "PROVISION", "start_char": 16452, "end_char": 16454, "source": "regex", "metadata": {"statute": null}}]} {"document_id": "1950_1_840_851_EN", "year": 1950, "text": "Manann Lal\n\nDeas hi\n\n' Mohammad Moi.nul Haque\n\n& Others.\n\nPatanjali\n\nSaatri J,\n\nDec, 1.\n\nSUPREME COURT REPORTS (1950]\n\nthereafter. As pointed out by the Judicial Committee in H emanta K uinar' s case (1) \"An agreement for a lease, which a lease is by the statute declared to include, must, in their Lordships' opinion, be a document which effects an actual demise and operates as a lease ...... The phrase which in the context where it occurs and in the statute in which it is found, must in their opinion relate to some document which creates a present and immediate interest in the land.\" The compromise decree expressly provides that unless the sum of Rs. 8,000 was paid within the stipulated time the Singhs were not to execute the decree or to take possession of the disputed property. Until the payment was made it was impossible to determine whether there would be any underlease or not. Such a contingent agreement is not within clause (d) and although it is covered by clause (b), is excepted by clause\n\n(vi) of sub-section (2). \\Ve therefore agree with the conclusion of the High Court though on different grounds and dismiss the appeal with costs.\n\nAppeal dismissed.\n\nAgent for the appellant: P. K. Chatterjee.\n\nAgent for the respondent : Sukumar Glzose.\n\nRAJA KAMALA RANJAN ROY\n\nBAIJNATH BAJORIA.\n\n(SHRI HARILAL KANIA C.J., PATANJALI SASTRI\n\nand DAS JJ.)\n\nConlract~Specific perforn\"nce-0.ff:r to purchase leasehold right-Stipulation that lesse'J sho-uld obtain consent of lessor-Lessor ttnreasonably refflsing consent-Lessee, 1vhethe' relieved of liribility f0 assign-Suit for sp-1cifi~ verformince by purchasftr-Maintain.• abilitr1-Lea.s9 deed-Covenant prohibitin1 assignm; nt of lease without l . \" l _f!sor s co:isent, Sit' i co 1isent, lunv, vr, not to b3 11,11reasonably ui hhJld in case of respectable p!rso'i \"-llieaniru; and effect of co1,>!':1tant.\n\n(1) 47 Ca.I. 48-'i, at p. 494.\n\nThe defendant had obtained certain premises on lease under a deed which contained a covenant by the lessee \"not to assign the demised premises or any port thereof without first obtaining the written consent of the lessor, such consent, however, not to be unreasonably withheld in the case of respectable or responsi hie person\", After some offers and counter offers the plaintiff finally made an offer to purchase the defendant's leasehold interest on certain terms one of which was that \" the consent of the landlord will be obtained by yon before the completion of the sale\"; and the offer was nnconditionally accepted by the defendant. The defendant subsequently refused to assign on the ground that the lessor had withheld bis consent, and the plaintiff sued for specific performance of the agreement :\n\nHeld, (i) that the agreement was not, for its coming into being, conditional or contingent on the obtaining of the lessor's consent, the obligation ta obtain the lessor's consent being only a term of the agreement which the defendant had to fulfil; (ii) tho words\n\n11 such consent, however, not to be unreasonably withheld in the case of a respectable or responsible person \" in the lease deed did not amount to a. separate or indepGndent covenant by the lessor that he would not refuse consent except on reasonable groundR in the case of a reBpectable or responsible person, but only limited or qualified the lessee's covenant not to assign with. out the lessor's consent, by relieving him from the burden of the covenant if the lessor withheld hie consent unreasonably in the case of proposed assignment to a respectable or responsible person ; (iii) that, as the plaintiff was admittedly a respectable and responsible person and on the facts of the case the lessor's refusal to give consent was unreasonable, the defendant could validly assign the lease without such consent ; (iv) that the court could come to a decision on this matter even though the lessor was not a party to the suit and the decision might not bind him ; (v) that the defendant could not under these circumstances plead the absence of the lessor's consent as relieving him from the obligation to perform his part of the agreement if the plaintiff insisted on bis carrying out the agreement even though the lessor had not given his consent; and the plaintiff was therefore entitled to a decree for specific performance of the agreement.\n\nCIVIL APPELLATE JURISDICTION: Civil Appeal No. 4 of 1950.\n\nAppeal from the High Court of Judicature of Cal. cutta (Sir Trevor Harries C.J. and Mukherjea J.) from a judgment and decree dated .May 30, 1948, in Appeal No. 21 of 1947 confirming with modifications the decree of a single Judge of the same High Court (Ormond J.) dated January 24, 1947, in suit No. 1031 of 1945.\n\n!OS\n\nEaja Kamala Ranjan Roy\n\nBaiinatlt\n\nBajoria,\n\nRr1ja Kamala\n\nRanjan Roy v.\n\nBaijnath\n\nBajoria.\n\nDas J.\n\nN. C. Chatterjee (Samarendra Nath f.fukherjee, with him) for the appellant.\n\nP. L. Banerjee (Upendra Chandra f.fullick, with him) for the respondent.\n\n1950. December 1. The Judgment of the Court was delivered by\n\nDAs J.-This is an appeal by the defendant in a suit for specific performance against the judgment and decree of the High Court of Judicature at Fort William in Bengal (Sir Trevor Harries C. J. and Mukherjea J.) dated May 30, 1948, dismissing his appeal and confirming, with certain modifications, the judgment and decree for specific performance passed by Ormond J. on January 24, 1947.\n\nThere is no substantial dispJite as to the facts leading up to the suit out of which the present appeal has arisen and they may shortly be stated : Maharaja Sris Chandra Nandy of Cossimbazar is the owner of premises No. 374 Upper Chitpur Road in the town of Calcutta (hereinafter referred to as the \"said premises\"). By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs. 1,083-5-3 and upon terms and conditions contained therein.\n\nBy sub-clause (6) of clause 2 of the said Indenture the lessee covenanted, amongst other things, ''not to assign the demised premises or any part thereof without first obtaining the written consent of the lessor, such consent, however, not to be unreasonably withheld in the case of respectable or responsible person ......... \" There was the usual proviso for re-entry for non-payment of rent for three months or for breach of any of the lessee's covenants, without prejudice to the lessor's right of action for such breach. On March 25, 1943, Madan Gopal Daga, with the written consent of the lessor, assigned the unexpired residue of the lease to the defendant who\n\nwas accepted as the lessee by the lessor.\n\nBy an agreement said to have been arrived at by correspondence exchanged between the plaintiff and the defendant and their respective solicitors between January 27, 1945, and February 2, 1945, the defendant is alleged to have agreed to assign the said lease to the plaintiff for the unexpired residue of the term with effect from February 1, 1945, at and for the price of Rs. 1,80,000 and upon terms and conditions contained in the correspondence to which reference will be made in greater detail hereafter. On February 21, 1945, the defendant wro!e a letter to the lessor intimating that he had agreed to assign his interest in the lease to the plaintiff and requesting the lessor to give his consent in writing to such assignment. On March 5, 1945, the lessor replied that the question of his giving consent to the transfer of the lease could not be entertained as he had already determined the lease and that in the circumstances the whole initiative was in the hands of the defendant.\n\nThis letter clearly indicated that the lease had been determined for non-payment of rents and it obviously implied that it was for the defendant to get the lease revived by paying up the arrears of rent so that the question of giving consent to an assignment of the lease might be considered by the lessor.\n\nOn March 8, 1945, the defendant by his solicitors' letter informed the plaintiff's solicitors that the defendant had ap proached the lessor but had failed to secure his consent and that, as no valid transfer could be made without such consent and the agreement for sale was subject to such consent being obtained, the defendant was reluctantly compelled to cancel the agreement. The plaintiff by his solicitors' letter of March 10, 1945, maintained that the agreement was not subject to the alleged condition and that the defendant was. not entitled to cancel the agreement. It was pointed out that under the terms of the lease the lessor could not refuse his consent to the transfer of the lease to a respectable or responsible person which the plaintiff undoubtedly was. It is not necessary to refer to the further correspondence that followed in which each\n\nRaja Kan1ala\n\nRtlnjati Boy\n\nv, Baijnath\n\nBajoria.\n\nDas J.\n\nRaja Kamala\n\nRanjan Roy v.\n\nBa; jnath\n\nBajoria.\n\nDas J.\n\nparty maintained his own contention.\n\nOn March 17, 1945, the lessor filed a suit (being suit No. 425 of 1945) in the High Court against the defendant for the recovery of the demised premises on the ground that the lease had been determined. It was during the pendency of that suit that on July 4, 1945, the suit for specific performance of the agreement to assign the lease out of which the present appeal has arisen was filed by the plaintiff against the defendant.\n\nOn July 13, 1945, the lessor's suit for ejectment was settled by the defendant consenting to a decree for Rs. 59,213-11-0 for arrears of rent which was paid up.\n\nThere is no dispute that the forfeiture of the lease for non-payment of rent was waived and the lease was accordingly revived. Shortly after the settlement of the ejectment suit the defendant on August 6, 1945, applied to the lessor for his consent to the assignment of the lease and on the same day the lessor in reply declined to give his consent without assigning any reason whatever. The suit for specific performance came up for disposal before Ormond J. in November 1946 when it was heard in part and was adjourned. It was eventually further heard in January 1947 and finally disposed of on January 23, 1947, when Ormcnd J. passed a decree against the defendant for specific performance of the agreement.\n\nThe decree provided that in the event of the defendant being unable within a fortnight from the date of the decree to obtain the written consent of the lessor the assignment should be made without such consent.\n\nThe defendant appealed.\n\nAfter two days' hearing, \"in order to clear up the matter\" the appeal Court \"gave the plaintiff an opportunity to examine the Maharaja as a witness in this case so that all relevant facts might be brought out and placed before the Court for the purpose of enabling it to come to a proper decision on this point.\" The appeal was accordingly adjourned and the lessor was examined on commission and his evidence was filed in the proceedings.\n\nAfter further hearing the appeal Court dismissed the defendant's appeal and confirmed the decree for specific performance of the agreement\n\nwithout the need for obtaining the consent of the lessor prior to the execution of the deed of assignment in favour of the plaintiff. This decree was subsequently amended by inserting therein a provision enabling the plaintiff to set off from the purchase price the amount of rent payable as and from February 1, 1945, until the date of conveyance Jess all outgoings and interest on the purchase price at four per cent. per annum from that date to the date of the conveyance. The defendant has now come up before us in appeal from this judgment and decree of the appeal Court.\n\nThe first point urged by learned counsel appearing in support of this appeal is that, being subject to the consent of the lessor, the agreement was contingent on the defendant obtaining such consent and as the defendant could not secure the lessor's consent no effective agreement came into being which could be ordered to be specifically performed. The determination of this question must depend on a correct analysis and ascertainment of the meaning and import of the correspondence by which the agreement is said to have been arrived at. It was on January 27, 1945, that the plaintiff offered to purchase the defendant's leasehold interest in the said premises upon terms and conditions set forth in the plaintiff's letter of that date. Clauses 3 and 4 of those terms were as follows :\n\n\"(3). The lease will be .transferred in my favour as from the 1st February, 1945, and I shall be entitled to recover rents from the tenants as from that date and shall pay the rent to the superior landlord and municipal taxes from that date. (4).\n\nYou shall have to obtain the necessary consent for the transfer of the lease in favour of myself or my nominees from the said l\\faharaja of Cossimbazar before the execution of the transfer of lease in my favour.\"\n\nThe defendant replied to the plaintiff's above letter on January 28, 1945.\n\nBy this reply the defendant expressed his willingness to transfer the lease to the plaintiff on terms contained therein. Clauses 3 and 4 of this letter were as follows:\n\n19~0\n\nRaja Kamara\n\nRanJan Roy\n\nBaijnath\n\n- Bojoria.\n\nDas J.\n\nRaja Karnala\n\nRanjan Ro11 v.\n\nBaijnath\n\nBajoria\n\nDru J.\n\n\" (3) If your final acceptance as stated above is received within 30th January current and if I am able to obtain the consent of Maharaja Cossimbazar for transfer of the leasehold interest within the first week of February, 1945, I agree to your para 3.\n\n(4) Your para 4 is agreed to but the name or names of the persons to be mentioned in the sale deed for whom permission is to be taken from Maharaja Cossimbazar should be clearly stated with their respective addresses.\"\n\nIt is quite clear that no agreement was concluded by these two letters for the defendant's letter was not an unconditional acceptance of the plaintiff's offer but amounted in law to only a counter-offer. By clause 3 the defendant offered to transfer the lease to the plaintiff as from February 1, 1945, so as to entitle the plaintiff to realize the rents from that date and to be liable to pay the rent to the lessor also from that date on two conditions, namely, that the plaintiff's acceptance was received within January 30, 1945, and the defendant was able to obtain the lessor's consent within the first week of February, 1945. This clause did not make the offer itself contingent on the obtaining of the lessor's consent but made one of the terms of the offer, namely, that the lease would be transferred as from February 1, 1945, conditional on the obtaining of the lessor's consent within the first week of February, 1945.\n\nLikewise, subject to the name of the assignee being clearly stated the defendant by clause 4 offered to obtain the lessor's consent to the assignment of the lease.\n\nClause 4 of the defendant's letter was not so expressed as to make the defendant's offer contingent on his obtaining the lessor's consent. On the contrary, clause 4 constituted one of the terms of the offer which, on the offer being accepted, would become binding on the defendant as one of the terms of the agreement. The plaintiff, however, does not appear to have accepted the defendant's counter offer but on January 29, 1945, through his solicitors made a fresh offer to purchase the defendant's leasehold interest at\n\nRs. 1,80,000 on the following terms:\n\n\" (a) That the earnest money will be Rs. 5.000 (Rupees five thousand) instead of Rs. 30,000.\n\n(b) Our client will have the conveyance in his own favour.\n\nThe consent of the landlord will be obtained by you before the completion of sale.\n\n(c) That your client will complete the conveyance within a month after the receipt by us of all the original title deeds with you.\n\n(d) That the transfer of the property in favour of our client will take effect on and from the I st February, 1945, irrespective of the date of the conveyance, he being entitled to all the rents, issues and profits and being liable for all the liabilities in respect thereof since the said date.\n\n(e) That our client will not be liable to pay your Solicitor's Bill of cost in respect of the sale.\"\n\nAgain, it will be noticed that by clause (b) the offer was not made contingent on the obtaining of the lessor's consent but the plaintiff insisted on the defendant's obtaining such consent as a substantive term of his offer so that if the offer by being accepted ripened into an agreement the defendant would be bound to obtain the lessor's consent as a term of such agreement. The defendant by his solicitors' letter dated February 1, 1945, purported to accept the plaintiff's last offer with a slight reservation, namely,-\n\n\" As regards clause ( d) of your said letter, it is distinctly understood that the same should be given effect to only in case the conveyance is completed in terms of clause (c) of your said letter.\"\n\nOn February 2, 1945, the plaintiff by his solicitors' letter of that date unconditionally accepted this reservation and so a concluded agreement was arrived at between the parties. This agreement was not, for its coming into being, contingent or conditional on the obtaining of the lessor's consent. The obligation to obtain the lessor's consent was cast upon the defendant as a term of the agreement.\n\nIn our judgment the Court below was right in holding that the agreement '\n\nRaja Kamala Ranjan Roy v, Bai.inn th Bajoria,\n\nDa.~ J.\n\nRaja Kamala\n\nRanjan Roy\n\nBaifnnth Baforia\n\nDas J.\n\nitself was not contingent as contended for by the appellant.\n\nThe contentions next advanced by learned counsel for the appellant relate to the lessee's covenant contained in sub-clause (6) of clause 2 of the lease to which reference has already been made. The legal incidents of such a covenant are now well established by judicial decisions referred to in the judgment of the High Court and it is not necessary to refer to them in detail. Suffice it to say, that the words\" such consent, however, not to be unreasonably withheld in the case of respectable or responsible person\" contained in the covenant do not amount to a separate or independent covenant by the lessor that he would not refuse consent except upon reasonable grounds in the case of respectable or responsible person, but that those words limit or qualify the lessee's covenant not to assign the demised premises without the consent in writing of the lessor.\n\nIn other words, those words have the effect of relieving the lessee from the burden of this covenant if the lessor withholds his consent unreasonably in case of proposed assignment to a respectable or responsible person.\n\nIn this view of the matter, the plaintiff contended that he being a respectable and responsible person the lessor had unreasonably withheld his consent to the proposed assignment to him and had consequently relieved the defendant from the burden of his covenant so that the defendant could legally and validly assign the lease to him without such consent of the lessor.\n\nThe first objection taken by the appellant to this contention of the plaintiff is that in his plaint the plaintiff insisted on the defendant obtaining the lessor's consent and that he should not have been permitted to make this new case at the hearing. Both the trial Court and the appeal Court held that there was, strictly speaking, no element of surprise, particularly because the plaintiff relied upon facts admitted and proved by the defendant himself and that it was open to him to take this point. We may also add that lthis point was in a manner indicated in the plaint\n\nitself for in paragraph 11 thereof it was pleaded that the plaintiff was a responsible and respectable person and that if consent to assign in his favour was withdrawn such withdrawal would be unreasonable and would not be valid and binding. In view of such pleading we are unable to say that the point raised by the plaintiff at the trial was an entirely new point or that the defendant was ta.ken by surprise.\n\nThe next objection of the appellant was that this point should not have been allowed to be raised and no evidence should have been permitted to be adduced on this point in the absence of the lessor as a party to the suit. We do not think that there is any force in this objection. The Court had to decide whether it was a case where relief by way of specific performance should be given. The Court could not force the defendant to apply to the lessor for his consent nor could the Court force the lessor to give his consent and, if: the matter only depended on the consent, the Court would not have ordinarily, in those circumstances, directed the agreement for assignment to be specifical1y enforced. The Court, therefore, had also to consider, for the purposes of this case, as to whether the circumstances were such as would indicate that the defendant had been relieved of the burden of his covenant by reason of the lessor having unreasonably withheld his consent. It is true that a decision on that question in this suit would not be binding on the lessor, but nevertheless the Court had to come to a decision on that question for the purposes of this suit as between the parties thereto in order to award the relief of specific performance to the plaintiff.\n\nThe third objection of the appellant is that the appeal Court should not have allowed the plaintiff to adduce further evidence. It will be recalled that the appeal Court directed the evidence of the Maharaja of\n\nCossimbazar to be taken during the hearing of the appeal. The judgment of. the appeal Court clearly indicates that it was the appeal Court that \"required\" the evidence \" in order to clear up the matter \" and\n\nIQ~\n\nRaja Kamala\n\n&njan Roy v.\n\nBaijnatk\n\nBajoria.\n\nDas J.\n\nRaja Kamala\n\nRan}a'lt Roy v.\n\nBaijnath\n\nBa.ioria.\n\nDas J.\n\n\" for the purpose of enabling it to come to a proper decision on this point\". The matter, therefore, is fully covered by Order XLI, rule 27 of the Code of Civil Procedure and no objection can be taken to the course adopted by the appeal Court on that ground. We do not think there is any reason to interfere in the exercise of the Court's discretion.\n\nThe fourth objection is that the High Court was wrong in holding that the term in the agreement that the defendant must obtain the consent of the lessor before executing the assignment to the plaintiff was a term for the benefit of the plaintiff only. It will be recalled that that was a term which was introduced by the plaintiff in his offer that eventually ripened into an agreement. The term was not expressed in a manner indicating that it was inserted in the agreement for the protection of the defendant. In other words, the objection that the consent of the lessor had not been obtained was one which could be availed of by the plaintiff who could rescind the contract and claim damages for the breach thereof. We cannot see how, in view of the language used in the correspondence, the defendant could plead the absence of the lessor's consent as relieving him from the obligation of performing his part of the agreement if the plaintiff waived the objection and insisted on his carrying out the agreement.\n\nThe absence of consent may amount to a defect in the title of the defendant, but which the plaintiff was willing to accept.\n\nFinally it is said that by directing the specific performance of the agreement the Court has exposed the defendant to the risk of an action for damages for breach of covenant. If the assignment of the lease by the defendant to the plaintiff without the lessor's consent amounted to a breach of covenant, the lessor could forfeit the lease and sue for possession. Such a course would affect only the plaintiff but not the defendant, for he had already parted with the lease for valuable consideration. It is said that the lessor could $1.le the defendant for damages for breach of that\n\ncovenant and the Court should not, by decreeing specific performance, have put the defendant in that perilous position. There appear to us to be two answers to this argument, namely, (I) that the defendant should have, by proper language, made his obligation to transfer dependent or conditional upoq his being able to obtain the lessor's consent which he did not do and (2) that the plaintiff being a respectable and responsible person of means, the measure of damages could only be a problematic conjecture.\n\nIndeed, it may have been precisely for this very consideration that the defendant had unconditionally agreed to obtain the consent of the lessor and to assign his interest in the lease.\n\nThat the plaintiff was a respectable and responsible person cannot, on the evidence before the Court, be denied or disputed and, indeed, learned counsel for the appellant did not so contend. We find ourselves in agreement with the High Court that in the circumstances and on the evidence on record the lessor had unreasonably withheld his consent so as to enable the defendant to assign the lease without such consent. In the circumstances, we are satisfied that both the trial Court and the appeal Court exercised their discretion properly and no ground has been made out for our interfering with the judgment of the High Court.\n\nThe appeal is accordingly dismissed. The appellant to pay the costs of this appeal.\n\nAppeal dismissed.\n\nAgent for the appellant ; P.K. Chatterjee.\n\nAgent for the respondent: S.K. Ghosh.\n\nRaja Kamala Ranjan Roy\n\nBaijnath Bajoria.\n\nDas I.", "total_entities": 64, "entities": [{"text": "Manann Lal", "label": "OTHER_PERSON", "start_char": 0, "end_char": 10, "source": "ner", "metadata": {"in_sentence": "Manann Lal\n\nDeas hi\n\n' Mohammad Moi.nul Haque\n\n& Others."}}, {"text": "H emanta K uinar", "label": "OTHER_PERSON", "start_char": 175, "end_char": 191, "source": "ner", "metadata": {"in_sentence": "As pointed out by the Judicial Committee in H emanta K uinar' s case (1) \"An agreement for a lease, which a lease is by the statute declared to include, must, in their Lordships' opinion, be a document which effects an actual demise and operates as a lease ...... The phrase which in the context where it occurs and in the statute in which it is found, must in their opinion relate to some document which creates a present and immediate interest in the land.\""}}, {"text": "P. K. Chatterjee", "label": "LAWYER", "start_char": 1204, "end_char": 1220, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant: P. K. Chatterjee.", "canonical_name": "P. K. Chatterjee"}}, {"text": "Sukumar Glzose", "label": "LAWYER", "start_char": 1250, "end_char": 1264, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent : Sukumar Glzose."}}, {"text": "RAJA KAMALA RANJAN ROY", "label": "PETITIONER", "start_char": 1267, "end_char": 1289, "source": "metadata", "metadata": {"canonical_name": "RAJA KAMALA RANJAN ROY", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA C.J.", "label": "JUDGE", "start_char": 1311, "end_char": 1334, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "PATANJALI SASTRI", "label": "JUDGE", "start_char": 1336, "end_char": 1352, "source": "metadata", "metadata": {"canonical_name": "M. PATANJALI SASTRI", "offset_not_found": false}}, {"text": "DAS JJ.", "label": "JUDGE", "start_char": 1358, "end_char": 1365, "source": "metadata", "metadata": {"canonical_name": "DAS JJ.", "offset_not_found": false}}, {"text": "s9", "label": "PROVISION", "start_char": 1649, "end_char": 1651, "source": "regex", "metadata": {"statute": null}}, {"text": "High Court of Judicature of Cal. cutta", "label": "COURT", "start_char": 4397, "end_char": 4435, "source": "ner", "metadata": {"in_sentence": "Appeal from the High Court of Judicature of Cal."}}, {"text": "Trevor Harries", "label": "JUDGE", "start_char": 4441, "end_char": 4455, "source": "ner", "metadata": {"in_sentence": "cutta (Sir Trevor Harries C.J. and Mukherjea J.) from a judgment and decree dated .May 30, 1948, in Appeal No."}}, {"text": "Mukherjea", "label": "JUDGE", "start_char": 4465, "end_char": 4474, "source": "ner", "metadata": {"in_sentence": "cutta (Sir Trevor Harries C.J. and Mukherjea J.) from a judgment and decree dated .May 30, 1948, in Appeal No."}}, {"text": "Eaja Kamala Ranjan Roy", "label": "PETITIONER", "start_char": 4702, "end_char": 4724, "source": "ner", "metadata": {"in_sentence": "OS\n\nEaja Kamala Ranjan Roy\n\nBaiinatlt\n\nBajoria,\n\nRr1ja Kamala\n\nRanjan Roy v.\n\nBaijnath\n\nBajoria.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "Das J.\n\nN. C. Chatterjee", "label": "JUDGE", "start_char": 4796, "end_char": 4820, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nN. C. Chatterjee (Samarendra Nath f.fukherjee, with him) for the appellant."}}, {"text": "Samarendra Nath f.fukherjee", "label": "LAWYER", "start_char": 4822, "end_char": 4849, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nN. C. Chatterjee (Samarendra Nath f.fukherjee, with him) for the appellant."}}, {"text": "P. L. Banerjee", "label": "LAWYER", "start_char": 4881, "end_char": 4895, "source": "ner", "metadata": {"in_sentence": "P. L. Banerjee (Upendra Chandra f.fullick, with him) for the respondent."}}, {"text": "Upendra Chandra f.fullick", "label": "LAWYER", "start_char": 4897, "end_char": 4922, "source": "ner", "metadata": {"in_sentence": "P. L. Banerjee (Upendra Chandra f.fullick, with him) for the respondent."}}, {"text": "Ormond", "label": "JUDGE", "start_char": 5373, "end_char": 5379, "source": "ner", "metadata": {"in_sentence": "The Judgment of the Court was delivered by\n\nDAs J.-This is an appeal by the defendant in a suit for specific performance against the judgment and decree of the High Court of Judicature at Fort William in Bengal (Sir Trevor Harries C. J. and Mukherjea J.) dated May 30, 1948, dismissing his appeal and confirming, with certain modifications, the judgment and decree for specific performance passed by Ormond J. on January 24, 1947.", "canonical_name": "Ormond"}}, {"text": "Maharaja Sris Chandra Nandy", "label": "OTHER_PERSON", "start_char": 5553, "end_char": 5580, "source": "ner", "metadata": {"in_sentence": "There is no substantial dispJite as to the facts leading up to the suit out of which the present appeal has arisen and they may shortly be stated : Maharaja Sris Chandra Nandy of Cossimbazar is the owner of premises No."}}, {"text": "Cossimbazar", "label": "GPE", "start_char": 5584, "end_char": 5595, "source": "ner", "metadata": {"in_sentence": "There is no substantial dispJite as to the facts leading up to the suit out of which the present appeal has arisen and they may shortly be stated : Maharaja Sris Chandra Nandy of Cossimbazar is the owner of premises No."}}, {"text": "Calcutta", "label": "GPE", "start_char": 5663, "end_char": 5671, "source": "ner", "metadata": {"in_sentence": "374 Upper Chitpur Road in the town of Calcutta (hereinafter referred to as the \"said premises\")."}}, {"text": "April 27, 1931", "label": "DATE", "start_char": 5755, "end_char": 5769, "source": "ner", "metadata": {"in_sentence": "By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs."}}, {"text": "Maharaja", "label": "OTHER_PERSON", "start_char": 5775, "end_char": 5783, "source": "ner", "metadata": {"in_sentence": "By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs."}}, {"text": "Cossimbazar\n\nRaj Wards Estate", "label": "ORG", "start_char": 5802, "end_char": 5831, "source": "ner", "metadata": {"in_sentence": "By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs."}}, {"text": "Madan Gopal Daga", "label": "OTHER_PERSON", "start_char": 5923, "end_char": 5939, "source": "ner", "metadata": {"in_sentence": "By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs."}}, {"text": "May 1, 1931", "label": "DATE", "start_char": 5979, "end_char": 5990, "source": "ner", "metadata": {"in_sentence": "By an Indenture of lease made on April 27, 1931, the Maharaja as manager of the Cossimbazar\n\nRaj Wards Estate which was then under the management of the Court of Wards demised the said premises to one Madan Gopal Daga for a term of 51 years commencing from May 1, 1931, at and for the monthly rent of Rs."}}, {"text": "clause 2", "label": "PROVISION", "start_char": 6108, "end_char": 6116, "source": "regex", "metadata": {"statute": null}}, {"text": "March 25, 1943", "label": "DATE", "start_char": 6616, "end_char": 6630, "source": "ner", "metadata": {"in_sentence": "On March 25, 1943, Madan Gopal Daga, with the written consent of the lessor, assigned the unexpired residue of the lease to the defendant who\n\nwas accepted as the lessee by the lessor."}}, {"text": "January 27, 1945", "label": "DATE", "start_char": 6952, "end_char": 6968, "source": "ner", "metadata": {"in_sentence": "By an agreement said to have been arrived at by correspondence exchanged between the plaintiff and the defendant and their respective solicitors between January 27, 1945, and February 2, 1945, the defendant is alleged to have agreed to assign the said lease to the plaintiff for the unexpired residue of the term with effect from February 1, 1945, at and for the price of Rs."}}, {"text": "February 2, 1945", "label": "DATE", "start_char": 6974, "end_char": 6990, "source": "ner", "metadata": {"in_sentence": "By an agreement said to have been arrived at by correspondence exchanged between the plaintiff and the defendant and their respective solicitors between January 27, 1945, and February 2, 1945, the defendant is alleged to have agreed to assign the said lease to the plaintiff for the unexpired residue of the term with effect from February 1, 1945, at and for the price of Rs."}}, {"text": "February 1, 1945", "label": "DATE", "start_char": 7129, "end_char": 7145, "source": "ner", "metadata": {"in_sentence": "By an agreement said to have been arrived at by correspondence exchanged between the plaintiff and the defendant and their respective solicitors between January 27, 1945, and February 2, 1945, the defendant is alleged to have agreed to assign the said lease to the plaintiff for the unexpired residue of the term with effect from February 1, 1945, at and for the price of Rs."}}, {"text": "February 21, 1945", "label": "DATE", "start_char": 7310, "end_char": 7327, "source": "ner", "metadata": {"in_sentence": "On February 21, 1945, the defendant wro!e a letter to the lessor intimating that he had agreed to assign his interest in the lease to the plaintiff and requesting the lessor to give his consent in writing to such assignment."}}, {"text": "March 5, 1945", "label": "DATE", "start_char": 7535, "end_char": 7548, "source": "ner", "metadata": {"in_sentence": "On March 5, 1945, the lessor replied that the question of his giving consent to the transfer of the lease could not be entertained as he had already determined the lease and that in the circumstances the whole initiative was in the hands of the defendant."}}, {"text": "March 8, 1945", "label": "DATE", "start_char": 8100, "end_char": 8113, "source": "ner", "metadata": {"in_sentence": "On March 8, 1945, the defendant by his solicitors' letter informed the plaintiff's solicitors that the defendant had ap proached the lessor but had failed to secure his consent and that, as no valid transfer could be made without such consent and the agreement for sale was subject to such consent being obtained, the defendant was reluctantly compelled to cancel the agreement."}}, {"text": "March 10, 1945", "label": "DATE", "start_char": 8519, "end_char": 8533, "source": "ner", "metadata": {"in_sentence": "The plaintiff by his solicitors' letter of March 10, 1945, maintained that the agreement was not subject to the alleged condition and that the defendant was."}}, {"text": "Raja Kan1ala", "label": "JUDGE", "start_char": 8958, "end_char": 8970, "source": "ner", "metadata": {"in_sentence": "It is not necessary to refer to the further correspondence that followed in which each\n\nRaja Kan1ala\n\nRtlnjati Boy\n\nv, Baijnath\n\nBajoria.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "Das J.\n\nRaja Kamala", "label": "JUDGE", "start_char": 9009, "end_char": 9028, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nRaja Kamala\n\nRanjan Roy v.\n\nBa; jnath\n\nBajoria."}}, {"text": "Das", "label": "JUDGE", "start_char": 9066, "end_char": 9069, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nparty maintained his own contention."}}, {"text": "July 4, 1945", "label": "DATE", "start_char": 9363, "end_char": 9375, "source": "ner", "metadata": {"in_sentence": "It was during the pendency of that suit that on July 4, 1945, the suit for specific performance of the agreement to assign the lease out of which the present appeal has arisen was filed by the plaintiff against the defendant."}}, {"text": "July 13, 1945", "label": "DATE", "start_char": 9545, "end_char": 9558, "source": "ner", "metadata": {"in_sentence": "On July 13, 1945, the lessor's suit for ejectment was settled by the defendant consenting to a decree for Rs."}}, {"text": "August 6, 1945", "label": "DATE", "start_char": 9899, "end_char": 9913, "source": "ner", "metadata": {"in_sentence": "Shortly after the settlement of the ejectment suit the defendant on August 6, 1945, applied to the lessor for his consent to the assignment of the lease and on the same day the lessor in reply declined to give his consent without assigning any reason whatever."}}, {"text": "January 23, 1947", "label": "DATE", "start_char": 10301, "end_char": 10317, "source": "ner", "metadata": {"in_sentence": "It was eventually further heard in January 1947 and finally disposed of on January 23, 1947, when Ormcnd J. passed a decree against the defendant for specific performance of the agreement."}}, {"text": "Ormcnd", "label": "JUDGE", "start_char": 10324, "end_char": 10330, "source": "ner", "metadata": {"in_sentence": "It was eventually further heard in January 1947 and finally disposed of on January 23, 1947, when Ormcnd J. passed a decree against the defendant for specific performance of the agreement.", "canonical_name": "Ormond"}}, {"text": "1st February, 1945", "label": "DATE", "start_char": 12663, "end_char": 12681, "source": "ner", "metadata": {"in_sentence": "The lease will be .transferred in my favour as from the 1st February, 1945, and I shall be entitled to recover rents from the tenants as from that date and shall pay the rent to the superior landlord and municipal taxes from that date. ("}}, {"text": "Raja Kamara", "label": "PETITIONER", "start_char": 13315, "end_char": 13326, "source": "ner", "metadata": {"in_sentence": "Clauses 3 and 4 of this letter were as follows:\n\n19~0\n\nRaja Kamara\n\nRanJan Roy\n\nBaijnath\nBojoria.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "RanJan Roy", "label": "JUDGE", "start_char": 13328, "end_char": 13338, "source": "ner", "metadata": {"in_sentence": "Clauses 3 and 4 of this letter were as follows:\n\n19~0\n\nRaja Kamara\n\nRanJan Roy\n\nBaijnath\nBojoria.", "canonical_name": "RanJan Roy"}}, {"text": "Raja Karnala", "label": "JUDGE", "start_char": 13370, "end_char": 13382, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nRaja Karnala\n\nRanjan Ro11 v.\n\nBaijnath\n\nBajoria\n\nDru J.\n\n\" (3) If your final acceptance as stated above is received within 30th January current and if I am able to obtain the consent of Maharaja Cossimbazar for transfer of the leasehold interest within the first week of February, 1945, I agree to your para 3.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "Maharaja Cossimbazar", "label": "OTHER_PERSON", "start_char": 13556, "end_char": 13576, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nRaja Karnala\n\nRanjan Ro11 v.\n\nBaijnath\n\nBajoria\n\nDru J.\n\n\" (3) If your final acceptance as stated above is received within 30th January current and if I am able to obtain the consent of Maharaja Cossimbazar for transfer of the leasehold interest within the first week of February, 1945, I agree to your para 3."}}, {"text": "clause 3", "label": "PROVISION", "start_char": 14109, "end_char": 14117, "source": "regex", "metadata": {"statute": null}}, {"text": "January 30, 1945", "label": "DATE", "start_char": 14418, "end_char": 14434, "source": "ner", "metadata": {"in_sentence": "By clause 3 the defendant offered to transfer the lease to the plaintiff as from February 1, 1945, so as to entitle the plaintiff to realize the rents from that date and to be liable to pay the rent to the lessor also from that date on two conditions, namely, that the plaintiff's acceptance was received within January 30, 1945, and the defendant was able to obtain the lessor's consent within the first week of February, 1945."}}, {"text": "clause 4", "label": "PROVISION", "start_char": 14918, "end_char": 14926, "source": "regex", "metadata": {"statute": null}}, {"text": "Clause 4", "label": "PROVISION", "start_char": 14999, "end_char": 15007, "source": "regex", "metadata": {"statute": null}}, {"text": "clause 4", "label": "PROVISION", "start_char": 15155, "end_char": 15163, "source": "regex", "metadata": {"statute": null}}, {"text": "January 29, 1945", "label": "DATE", "start_char": 15412, "end_char": 15428, "source": "ner", "metadata": {"in_sentence": "The plaintiff, however, does not appear to have accepted the defendant's counter offer but on January 29, 1945, through his solicitors made a fresh offer to purchase the defendant's leasehold interest at\n\nRs."}}, {"text": "Raja Kamala Ranjan Roy", "label": "JUDGE", "start_char": 17535, "end_char": 17557, "source": "ner", "metadata": {"in_sentence": "In our judgment the Court below was right in holding that the agreement '\n\nRaja Kamala Ranjan Roy v, Bai.inn th Bajoria,\n\nDa.~ J.\n\nRaja Kamala\n\nRanjan Roy\n\nBaifnnth Baforia\n\nDas J.\n\nitself was not contingent as contended for by the appellant.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "Baifnnth Baforia", "label": "JUDGE", "start_char": 17616, "end_char": 17632, "source": "ner", "metadata": {"in_sentence": "In our judgment the Court below was right in holding that the agreement '\n\nRaja Kamala Ranjan Roy v, Bai.inn th Bajoria,\n\nDa.~ J.\n\nRaja Kamala\n\nRanjan Roy\n\nBaifnnth Baforia\n\nDas J.\n\nitself was not contingent as contended for by the appellant."}}, {"text": "clause 2", "label": "PROVISION", "start_char": 17834, "end_char": 17842, "source": "regex", "metadata": {"statute": null}}, {"text": "Raja Kamala", "label": "PETITIONER", "start_char": 21847, "end_char": 21858, "source": "ner", "metadata": {"in_sentence": "the appeal Court clearly indicates that it was the appeal Court that \"required\" the evidence \" in order to clear up the matter \" and\n\nIQ~\n\nRaja Kamala\n\n&njan Roy v.\n\nBaijnatk\n\nBajoria.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "the Code of Civil Procedure", "label": "STATUTE", "start_char": 22104, "end_char": 22131, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "P.K. Chatterjee", "label": "LAWYER", "start_char": 25499, "end_char": 25514, "source": "ner", "metadata": {"in_sentence": "Agent for the appellant ; P.K. Chatterjee.", "canonical_name": "P. K. Chatterjee"}}, {"text": "S.K. Ghosh", "label": "LAWYER", "start_char": 25543, "end_char": 25553, "source": "ner", "metadata": {"in_sentence": "Agent for the respondent: S.K. Ghosh."}}, {"text": "Raja Kamala Ranjan Roy", "label": "PETITIONER", "start_char": 25556, "end_char": 25578, "source": "ner", "metadata": {"in_sentence": "Raja Kamala Ranjan Roy\n\nBaijnath Bajoria.", "canonical_name": "RAJA KAMALA RANJAN ROY"}}, {"text": "Baijnath Bajoria", "label": "RESPONDENT", "start_char": 25580, "end_char": 25596, "source": "ner", "metadata": {"in_sentence": "Raja Kamala Ranjan Roy\n\nBaijnath Bajoria.", "canonical_name": "ROY\n\nBAIJNATH BAJORIA"}}, {"text": "Das I.", "label": "JUDGE", "start_char": 25599, "end_char": 25605, "source": "ner", "metadata": {"in_sentence": "Das I.", "canonical_name": "DAS JJ."}}]} {"document_id": "1950_1_852_868_EN", "year": 1950, "text": "Deo. l.\n\nSUPREME COURT REPORTS\n\nYESWANT DEORAO DESHMUKH\n\nWALCHAND RAMCHAND KOTHARI.\n\n[SHRI HARILAL KANIA C.J., DAS and\n\nCHANDRASEKHARA AIYAR JJ.]\n\n[1950]\n\nLimitation Act (II of 1908), ss. 14 (21, 18, Art. 182-Giuil Pro C1ldure God• (V of 1908), s. 48-Execution of decree-Application after 12 years from decree and 3 years from order on last application-Fraudulent concealment of property to prevent execution- Maintainability of application-Limitation-Fraud preventing execution against particular property-\"Whether saves limitation under Art. 182-Applicability of s. 18-Decree direoting payment of deficit court fe. b•fore execution-Whether conditional decree-Starting point of limita.tian-Time spent in proceedings to adjudge judgmentdebtw insolvent, whether should be excluded.\n\nAn application for execution of a decree wos made after the expiry of 12years from the doto of tbe decree and 3 years from the date of the final order on tbe last previous application jor execution.\n\nThe decree-holder contended that the judgment-debtor had fraudulently purchased a business in the name of a stranger and bad conducted the same in the name of the latter with a view to prevent the assets of the business from being proceeded against in execution by the decree-holder and that therefore under s. 48 of the Civil Procedure Code be was entitled to make an application even after the expiry of 12 years. The High Court found that, as the decree-holder was prevented by the fraud of the judgment-debtor from executing the decree, the application was not barred under s. 48 of the Code, but as it was made more than 3 years from the date of the order on t.he last application it was barred under Art. 182 of the Limitation Act. The decree-holder appealed contending for the first time before the Supreme Court that as fraud for the purpose of s. 48 of Civil Procedure Code was proved, e. 18 of the Limitation Act was applicable to the case and - his application was not barred under Art. 182 as it was made within three years of the date when he became aware of the fraud and the proper article applicable was Art. 181 :\n\nHeld, (i) that the question whother on the proved facts s. 18 was applicable ta the case was a pure question of law and the deoree-hol to this result is prima facie unsound. Both sides agTeed that this is the true position, but they reached it from slightly varying standpoints.\n\nAccording to the appellant, fraud even with reference to one property gives him a further extension of 12 years under section 48 (2) as regards the whole decree and it is not necessary for him to show that he had proceeded against the other properties of the judgment-debtor. According to the respondent, the fraud must consist in the concealment of the knowledge of the decree-holder's right to apply for execution of the decree and it is not enough to prove or establish that the fraud prevented him from proceeding against a specific item. The two contentions, lead to the same conclusion about the indivisibility of the decree, but along different lines.\n\nIn our opinion, the facts necessary to establish fraud under section 18 of the Limitation Act are neither admitted nor proved in the present case. Concealing from a person the knowledge of his right to apply for execution of a decree is undoubtedly different from preventing him from exercising his right, of which he has knowledge. Section 18 of the Limitation Act postulates the former alternative.\n\nTo read it as referring to an application for execution to proceed against a particular property would be destructive of the oneness of the decree and would lead to multiplicity of periods of limitation. It is true that articles 181 and 182 of the Limitation Act and section 48,\n\n1950 Civil Procedure Code, should be read together. The - articles expressly refer to the section. But they are Y\"want Deorao d d t ll 1 ' d'ff t h D h kh m epen en or para e prov1s1ons, 1 eren m t eir es ;.u scope and object.\n\nAs held in Kalyanasundaram Walchana Pillai v. Vaithilinga Vanniar (1) section 48 (2) extends Ramohand the 12 years' period of closure by a further period of Kothad. similar duration but the necessity of resort to artich d-, 1• cle 182 is not thereby obviated. The decree-holder an rase < i ,.ra . . 4; yar J. must have been takmg steps to keep the decree alive and the onlv circumstance that could relieve him of this obligatfon is the existence of fraud under section 18 of the Limitation Act.\n\nThe learned Advocate of the appellant asked how it could be possible for him to apply in execution when there was the fraud and whether the law contemplated that, even though the fraud prevented execution of the decree, he was to go on filing useless or futile applications every three years merely for keeping the decree alive. The answer is simple.\n\nThe fraud pleaded. namely suppression of ownership of the 'Prabhat' newspaper, did not conceal from him his right to make an application for execution of the decree.\n\nIndeed, the suppression, which began in 1938, did not prevent the decree-holder from applying for execution in 1940; and in his answers in cro\"s-examination, he has admitted that there were other properties to his knowledge against which he could have sought execution, viz., deposits in several banks of the judgment-debtor's monies but standing in his wife's or daughter's names, life insurance policies for which premia were being paid by him, law books written and published by him, movable properties in the house at Poona etc.\n\nAs a matter of fact, the appellant's present application seeks execution against several of these properties.\n\nNothing prevented him therefore , from seeking such execution within 3 years of the dismissal of his prior application in 1940. Even with reference to the 'Prabhat', all that the decree-holder states is that as he had no evidence to prove that the concern belonged to the defendant he did not take any steps, and not that he had no\n\n(lJ I.LJ~. 19.i9 i\\lad. 611.\n\nknowledge of the ownership. To quote two sentences 1950 from his deposition : \"I had suspected that defendant -- N I h 1 f h b . ll h h.\n\nY., want D•orao o. was t e rea owner o t e usmess a t e w Ile.\n\nD h kh But I had no positive knowledge or information till \".~\" 1946\" ....... \" I could not take any step for attaching Walchand the defendant's business till 1946 as I had no evidence Ramchand to prove the defendants fraud till then.\" There is Kotha•i. no obligation on the judgment-debtor to post the Oh d --;.h decree-holder with all details of his properties; it is the ai;:~ J. ara decree-holder's business to gather knowledge about the properties so that he can realise the fruits of his decree.\n\nIn dealing with this evidence, Mr. Krishnaswami Iyengar relied on the Privy Council decision, Rahiinbhoy\n\nv. Turner in 20 I. A. I and referred to the following observation of Lord Hobhouse at page 5 : -\n\n\"But their Lordships consider, and in this they agree with both the Courts below, that all that the appellant Rahimbhoy has done is to show that some clues and hints reached the assignee in the year 1881, which perhaps, if vigorously and acutely followed up, might have led to a complete knowledge of the fraud, but that there was no disclosure made which informed the mind of the assignee that the insolvent's estate had been defrauded by Rahimbhoy of these assets in the year 1867.\"\n\nThe passage cited does not apply here because the appellant admits knowledge, which is more than a mere suspicion, but states that he had no evidence to prove the defendant's ownership. In any event, it has not been established within the meaning of section\n\n18 of the Limitation Act that the fraud alleged and proved kept back from him the knowledge of his right to execute the decree.\n\nIt is thus clear that the appellant cannot get the benefit of section 18 of the Limitation Act. It was next argued on behalf of the appellant that under section 48(2) of the Civil Procedure Code, because of the fraud of the respondent the appellant got a fresh starting point of limitation for the Limitation Act also\n\n1950 and therefore the starting point contemplated in the third column of the schedule to the Limitation Act\n\nYmDoanht D•kohraorelating to a1, plications for execution should be the\n\ne~ mu . v. date when the fraud was discovered by the appellant.\n\nWalchand In other words, it was argued that the effect of section Ramchand 48 was not merely to make the 12 years' period start Kothari. from the discovery of fraud for the purpose of section\n\nG d--kl 48(2) of the Civil Procedure Code but also to give a han rast iara h . . f h h d 1 h L' . .\n\nAiyar J.\n\nIres startrng pornt or t e sc e u e to t e 1m1tat10n Act.\n\nThis argument cannot be accepted. If a man is prevented from making an application, because of the fraud of the debtor, he 1s not necessarily prevented from knowing his right to make the application. By the enactment of section 18, the Legislature has distinctly contemplated that for the Limitation Act the starting point is changed on the ground of fraud, only when the knowledge of the right to make the application is prevented by the fraud of the judgmentdehtor.\n\nHaving the knowledge that he had the right to make the application, if the judgment-debtor prevents the decree-holder from knowing the existence of certain properties against which the decree could be enforced, the case is clearly not covered by the words of section 18 of the Limitation Act. Therefore the argument advanced on behalf of the appellant is unsound.\n\nIt was urged that the various starting points mentioned in the third column to article 182 of the Limitation Act cannot apply because none of them specify a fresh starting point for execution acquired on the ground of the fraud of the judgment.debtor. This argument, in our opinion, instead of helping the appellant, goes against him.\n\nSuch a provision in the third column in the article relating to execution of decrees is not necessary because provision for such a contingency is made in section 18. Affirmatively, by the inclusion of section 18 in the Limitation Act, and, negatively, by not providing for a separate period of limitation in the case of the fraud of the judgment-debtor in the third column in the articles, the Legislature has clearly indicated that unless advantage could be taken by the\n\ndecree-holder under section 18 on the ground of the 1960 fraud of the judgment-debtor, fraud does not give any -- th\n\n1. f d h L\" \"t A t Th\" h f Yeswant Deorao o er re. 1e un rt e 1m1 a_t10n c : IS _sc eme o Deshmukh the Legislature 1s not inconsistent with sect10n 48 of v. the Civil Procedure Code.\n\nThe two provisions in the Walchand two Acts have to be read as related to the same subject Ramcha>enalised this particular con1pany and its shareholders, leaving out other companies and their shareholders who may be equally guilty of the alleged vice of mismanagement and neglect of the type referred to in the preamble in the Ordinance.\n\nPer PATANJALI SASTRI, MUKHERJEA and DAS JJ. (KANIA, C.J., d1tbitante).-In so far as the petitioner's rights as a shareholder were curtailed be was entitled to apply for relief under Art. 32 in bis own right on the ground that the Act denied to him the equal protection of the laws and therefore contravened Art. 14 even tboush the other shareholders did not join him in the application.\n\nPer MUKRERJEA J .-The fundamental rights guamnteed by the Constitution are available not merely to individual citizens but to corpol'ate bo:lies as well except where tho language of the provision or the nature of the right compels the inference that they are applicable only to natural persons.\n\nAn incorporated company, therefore, can come up to the Supreme Court for enforcement ol its fundamental rights and so may the individual shareholders to enforce their own; but as the company and its shareholilers are in law separate entities, it \\Yould not b9 open to an individual shareholder to complain of a law which affects the fundamental right of the company except to the extent that it constitutes an infraction of his own rights as well. Io order to redress a wrong to the company the action should prima facie be brought by the company itself.\n\nArticle 32 of the Constitution is not directly concerned with the determination of the constitutional validity of particular enactments, what it aims at is the enforcement of fundaenal rights guaranteed by the Constitution and to make out a case under the Article it is incumbent on the petitioner to establish not merely that the law complained of is beyond the competence of the Legislature but that it affects or invades his fundamental rights guaranteed by the Constitution, o( which he could seek enforcement by a.n appropriate writ or order.\n\nUnder Art. 32 the Su1Jreme Court has a. very wlde discretion in the matter of framing \\Vrits to suit the exigencies of particular cases and an application under the article cannot be thrown out simply on the grnund that the proper writ or direction has not been prayed for.\n\nIn the context in which th9 word\n\n11 a.cquisitio:i '' is used in Art. 31 .2) it means and implies the acquiring o( the entire title of the expropriated owner whatever the nature or extent of that right might be.\n\nS.C.R.\n\nSUPREME COURT REPORTS 873\n\nThe guarantee against the denial of equal protection or the laws does not mean that identically the same rules of law should be made applicable to all persons within the territory of India in spite of differences of circumstances and conditions. It means only that there should be no rliscrimination between one person and another if as regards the subject-matter of the legislation their position is the same.\n\nQuaere: Whether the word\" property\" in Art. 31 means the totality of the rights which the ownership of the property connotes, and whether clause (1) of Art. 31 contemplates only codiscation or destruction of property in exercise of what are known as police powers in American law for which no compensation is necessary.\n\nDAS J.-Tbe question whether an Act has deprived a person of his \"property\" must depend on whether it has taken away the substantial bulk of the rights constituting his property. Where the most important rights possessed by the shareholders of a company are still preserved hy a:i Act even though corhin pridleges incidental to the ownership of the shares have been put in abeyance, the sba, reholders cannot be said to have been deprived of their \"property'' in the sense in which tl..ia.t word is used in Art. 19(1) (f) and Art. 31.\n\nIf on the face of the Jaw there is no classification at all, or at any rate, none on the basis of any nppnrent difference specially peculiar to the individual or class affected by the law, it is only an instance of an arbitrary selection of an individual or class for rliscrirninating and hostile legislation and, therefore, no presumption can, in such circumstances, arise at all.\n\nAssuming, however, that even in such a case the onus is thrown on the complainant, there can be nothing to prevent him from proving, if he can, from the text of the law itself, that it is actually and palpably unreasonable and arbitrary and thereby discharging the initial onus.\n\nThe right to vote, to elect directors, to pass resolutions and to present an application for winding up, are privileges incidental to the ownership of a share, but they are not by themselves, apart from the share, \" property\" within the meaning of Art. 19 \\1) (f) and Art. 31; and even assuming that they are \"property\" such rights cannot be said to have been acquired or taken posBession of by the Government in this case within Art. 31 (2).\n\nThe language of clause (1) of Art. 31 is wider than that of clause (2), for d no sense in Government taking charge of it. If anything, it will mean the Government will have to waste money which belongs to the taxpayer on an uneconomic unit.\n\n(3) There must be a technical report as regards the condition of the plants, machinery, etc. which either as they stand, or after necessary repairs and reconditioning can be properly utilised.\n\n(4) Lastly ,-and this is of considerable importancethere must be a proper enquiry held before Government take any action. The enquiry should show that\n\n\\lS\n\nChiranjitlal Chowdhi•ri\n\nThe Unio11 of India and\n\nOthrs.\n\nFa1:l Ali J.\n\nChiranjitlal Chowdhuri\n\nTh~ Un.ion of\n\nIndia and\n\nOt/er!.\n\nmanaging agents have so misbehaved that they are no longer fit and proper persons to remain in charge of such an important undertaking.\"(') It appears from the same proceedings that the Sholapur mill is one of the largest mills in Asia and employs 13,000 workers.\n\nPer shift, it is capable of producing 25 to 30 thousand pounds of yarn, and also one lakh yards of cloth. It was working two shifts when it was closed down on the 29th August, 1949.\n\nThe closure of the mill meant a loss of 25 lakhs yards of cloth and one and a half lakhs pounds of yarn per month. Prior to 1947, the highest dividend paid by the company was ls. 525 per share and the lowest Rs. 100, and, in 1948, when the management was taken over by the managing agents who have been removed by the impugned Act, the accounts showed a loss of Rs. 30 lakhs, while other textile companies had been able to show very _substantial profits during the same period.\n\nAnother fact which is brought out in the proceedings is that the managing agents had acquired control over the majority of the shares of the company and a large number of shareholders who were dissatisfied with the management had been rendered powerless and they could not make their voice heard. By reason of the preponderance of their strength, the managing agents made it impossible for a controller under the Essential Supplies Act to function and they also made it difficult for the company to run smoothly under the normal law.\n\nIt was against. this background that the Act was passed, and it is evident that the facts which were placed before the Legislature with regard to. the Sholapur mill were of an extraordinary character, and fully justified the company being treated as a class by itself.\n\nThere were undoubtedly other mills which were open to the charge of mismanagement, but the criteria adopted by the Government which, in my opinion, cann; it be said to be arbitrary or unreasonable, is not applicable\n\n(l) Parlia.ments.ry DebateA, Volume III, Nn. 14~ 31st March lO:SO, pp, 2894.5.\n\nto any of them. As we have seen, one of the criteria was that a mere allegation of mismanagement should not be enough and no drastic step such as is envisaged in the Act should be taken without there being a complete enquiry.\n\nIn the case of the Sholapur mill, a complete enquiry had been made and the revelations which were made as a result of such enquiry were startling.\n\n\\Ve are familiar with the expression \"police power\" which is in vogue in the United States of America.\n\nThis expression simply denotes that in special cases the State can step in where its intervention seems necessary and impose special burdens for general benefit. As one of the judges has pointed out, \" the regulations may press with more or less weight upon one than upon another, but they are designed not to impose unequal or unnecessary restrictions upon anyone, but to promote, with as little individual inconvenience as possible, the general good.\"(') It need not be emphasized that the princi pies underlying what is known as police power in the United States of America arc not peculiar to that country, but are recognized in every modern civilized State.\n\nProfessor Willis dealing with the question of classification in exercise of police power makes the following observations:\n\n\"There is no rule for determining when classification for the police power is reasonable. It is a matter for judicial determination, but in determining the question of reasonableness the Courts must find some economic, political or other social interest to be secured, and some relation of the classification to the objects sought to be accomplished. In doing this the Courts may consider matters of common knowledge, matters of common report, the history of the times, and to sustain it they will assume every state of facts which can be conceived of as existing at the time of legislation. The fact that only one person or one object or one business or one locality is affected is not proof of denial of the equal protection of the laws. For such\n\n(I) Per Field J, in Barbier v. Connolly. 118 US. 27,\n\n19CO\n\nChiranjit1al Chowdhurt\n\nThe Union of India and\n\nOther a.\n\nFa•l .Iii J.\n\nChirn.njitlai Chowdhurt\n\nv, Ths Uoiion. of India and\n\nOthsra,\n\nFIUl Ali J.\n\nproof it must be shown that there is no reasonable basis for the classification.\"(') In this particular case, the Government initially took control of the Sholapur Company by means of an Ordinance (Ordinance No. II of 1950), of which the preamble runs as follows:-\n\n\".Whereas on account of mismanagement and neglect a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company, Limited, which has prejudicially affected the production of an essential commocjity and has caused serious unemployment amongst a certain section of the community; And whereas an emergency has arisen which renders it necessary to make special provision for the proper management and administration of the aforesaid Company; Now, therefore, ........................ \" In the course of the Parliamentary debate, reference was made to the fact that the country was facing an acute cloth shortage, and one of the reasons which apparently influenced the promulgation of the Ordinance and the passing of the Act was that the mismanagement of the company had gravely affected the production of an essential commodity. The facts relating to the mismanagement of this mill were carefully collected and the mischief caused by the sudden closing of the mill to the shareholders as well as to the general public were fully taken into consideration.\n\nTherefore, it seems to me that to say that one particular mill has been arbitrarily and unreasonably selected and subjected to discriminatory treatment, would be an entirely wrong proposition.\n\nArticle 14 of the Constitution, as already stated, lays down an important fundamental right, which should be closely and vigilantly guarded, but, in construing it, we should not adopt a doctrinaire approach which might choke all beneficial legislation.\n\nThe facts to which I have referred are to be found in a public document, and, though some of them may\n\n(1) Constitutional La.w by Prof. Willis (1st Edition) p. 580.\n\nrequire further investigation forming as they do part of a OJ:ie-sided version, yet they furnish good prima facie grounds for the exercise of the utmost caution in deciding this case and for not departing from the ordinary rule as to the burden of proof. In the last resort, this petition can be disposed of on the simple ground that the petitioner has not discharged the onus which lies upon him, and I am quite prepared to rest my judgment on this ground alone.\n\nI think that the petitioner has faiied to make out any case for granting the writs or directions asked for, and the petition should therefore be dismissed with costs.\n\nPATANJALI SASTRI J.-This is an application under article 32 of the Constitution seeking relief against alleged infringement of certain fundamental rights of the petitioner.\n\nThe petitioner is a shareholder of the Sholapur Spinning and Weaving Company, Limited, Sholapur, in the State of Bombay, (hereinafter referred to as\n\n\"the Company\"). The authorised share capital of the Company consisted of 1590 fully paid up ordinary shares of Rs. 1,000 each, 20 fully paid up ordinary shares of Rs. 500 each and 32,000 partly paid up redeemable cumulative preference shares of Rs. 100 each, of which Rs. 50 only was paid up.\n\nOf these, the petitioner held one ordinary share in his own name and 80 preference shares which, however, having been pledged with the Bank of Baroda Ltd., now stand registered in the Bank's name.\n\nThe company was doing flourishing business till disputes arose recently between the management and the employees, and in or about August, 1949, the mills were temporarily closed and the company, which was one of the largest producers of cotton textiles, ceased production. Thereupon, the Governor-General intervened by p110mulgating on the 9th January, 1950, an Ordinance called the Sholapur Spinning and Weaving Company (Emergency Provisions) Ordinance (No. II of 1950), which empowered the Government of India to\n\nChiranfitlaE Chowdhuri\n\nThe Uiiio'I of\n\nI11d1a al'ld\n\nOthers.\n\nFad Ali J,\n\nPatanfa.ti\n\nBastri J,\n\nOhira>i;'itlal Chow, lhu.ri\n\nThe U•ii'ln of\n\nIndia a-id\n\nOthers.\n\nPatri.njali\n\nSastrt J.\n\ntake over the control and management of the company and its properties and effects by appointing their own Directors and to delegate all or any of their powers to the Provincial Government. In exercise of the powers thus delegated, the Government of Bombay appointed respondents 3 to 9 as Directors to take charge of the management and administration of the properties and affairs of the company. Subsequently, on 10th April,\n\n1950, the Ordinance was repealed and was replaced by an Act of Parliament containing similar provisions, namely the Sholapur Spinning and Weaving Company\n\n(Emergency Provisions) Act (No. XXVllI of 1950) (hereinafter referred to as the \"impugned Act\").\n\nThe petitioner complains that the impugned Act and the action of the Government of Bombay pursuant thereto have infringed the fundamental rights conferred on him by articles 14, 19 and 31 of the Constitution with the result that the enactment is unconstitutional and void, and the interference by the Government in the affairs of the company is unauthorised and illegal.\n\nHe accordingly seeks relief by way of injunction and mandamus against the Union of India and the State of Bombay impleaded as respondents 1 and 2 respective. l y in these proceedings and against respondents 3 to 9 who are now in management as already stated.\n\nThe company is impleaded pro forma as the 10th respondent.\n\nBefore discussing the issues involved, it is necessary to examine the relevant provisions of the impugned Act in order to see in what manner and to what extent the petitioner's rights have been affected thereby.\n\nThe preamble to the repealed Ordinance stated that \"on account of mismanagement and neglect a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company, Limit. ed, which has prejudicially affected the production of an essential commodity and has caused serious unemployment amongst a certain section of the community and that an emergency has arisen which renders it necessary to make special provision for the proper management and administration of the aforesaid\n\n• '\n\nCompany.\" This preamble was not reproduced in the impugned Act.\n\nSection 3 empowers the Central Government to appoint as many persons as it thinks fit to be directors of the company \"for the purpose of taking over its management and administration.\" Section 4 states the effect of the order appointing directors to be that (1) the old directors shall be deemed to have vacated their office, (2) the contract with the managing agents shall be deemed to have been terminated, (3) that the properties and effects of the company shall be deemed to be in the custody of the new directors who are to be \" for all purposes \" the directors of the company and \"shall alone be entitled to exercise all the powers of the directors of the company whether such powers are derived from the Companies Act or from the memorandum or articles of association or otherwise.\" Section 5 defines the powers of the new directors. They are to manage the business of the company \"subject to the control of the Central Government\" and shall have the power to raise funds offering such security as they think fit, to carry out necessary repairs to the machinery or other. property in their custody and to employ the necessary persons and define the necessary conditions of their service. Section 12 provides for the restoration of the management to directors nominated by the shareholrlers when the purpose of the Government's intervention has been fulfilled.\n\nSection 13 is important and reads thus: \" 13. Application of the Companies\n\nAct.-(I) Notwithstanding anything contained in the Companies Act or in the memorand11m or articles of association of the company (a) it shall not be lawful for the sharehrilders of the company or any other person to nominate or appoint any person to be a director of the company; (b) no resolution passed at any meeting of the shareholders of the company shall be given effect to unless approved by the Central Government; (c) no proceeding for the winding up of the company or for the appointment of a receiver in respect thereof shall lie in any Court unless by or \\\\ith the sanction of the Central Government.\n\n(2) Subject\n\nChirt't•njitlal Chowdhurt\n\nThe Union of\n\nInd a and\n\nOthers,\n\nPa.lan; ali\n\nSastri J.\n\nChiranjit7al\n\nChowdhurS\n\nThe Union of\n\nIndia and\n\nOthera.\n\nPatanjali\n\nSastri J.\n\nto the provisions contained in sub-section (1) and to the other provisions of this Act, and subject to such exceptions, restrictions and limitations as the Central Government may, by notified order, specify, the Companies Act shall continue to apply to the company in the same manner as it applied thereto before the issue of the notified order under section 3.\" By section 14 the provisions of the Act are to have effect \"notwithstanding anything inconsistent therewith contained in any other law or in any instrument having effect by virtue of any law other than this Act.\" Section 16 provides for delegation of powers to the Government of Bombay to be exercised subject to the directions of the Central Government, and section 17 bars suits or other proceedings against the Central Government or the Government of Bum bay or any director \"for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act.\"\n\nAs a result of these provisions all the properties and . effects of the company passed into the absolute power and control of the Central Government or its delegate the Government of Bombay, and the normal functioning of the company as a corporate body came to an end. The shareholders have been reduced to the position of interested, if helpless, onlookers while the business is carried on against their will and, may be, to their disadvantage by the Government's nominees.\n\nThe declared purpose of this arrangement was, accord. ing to the Preamble of the repealed Ordinance to keep up the production of an essential commodity and to avert serious unemployment amongst a certain section of the community.\n\nThe question accordingly arises whether the impugned Act, which thus affects the petitioner and his co-shareholders, while leaving untouched the shareholders of all other companies, including those engaged in the production of essential commodities, denies to the petitioner the equal protection of the laws under article 14 of the Constitution. The correct approach to\n\nthis question is first to see what rights have been confer. red or protection extended to persons similarly situated.\n\nThe relevant protection is to be found in the provisions of the Indian Companies Act which regulates the rights and obligations of the shareholders of incorporated companies in India. Section 21 of the Act assures to the shareholders the protection of the stipulations contained in the memorandum and articles of associaticn by constituting them a binding contract, so that neither the company nor the shareholders have the power of doing anything inconsistent therewith. The\\ basic right of the shareholders to have their undertaking managed and conducted by the directors of their own choice is ensured by section 83B. Their . right to exercise control and supervision over the\\ management by the directors by passing resolutions J at their general meeting is regulated by various provisions of the Act. The important safeguard of winding up the company in certain unfavourable circumstances either through court or by the shareholders themselves voluntarily is provided for in sections 162 and 203. All these rights and safeguards, on the faith of which the shareholders embark their money in their undertaking, are abrogated by the impugned Act in the case of the shareholrlers of this company alone. In fact, the Central Government is empowered to exclude, restrict or limit the operation of any of the provisions of the Companies Act in relation to this company. It is thus plain that the impugned Act denies to the shareholders of this particular company the protection of the law relating to incorporated joint stock companies in this country as embodied in the Companies Act and is primafacie within the inhibition of article 14.\n\nIt is argued, however, that article 14 does not make it incumbent on 1he Legislature always to make laws applicable to all persons generally, and that it is open to the Legislature to classify persons and things and subject them to the operation of a particular law according to the aims and objects which that law is designed to secure. In the present case, Parliament,\n\nOhiranJ1tlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.\n\nPatanjali Sastri J,\n\nOhiranfit1al\n\nChowdhuri\n\n- The Union of\n\nIndia and\n\nOther a,\n\nPala~.iali Sastri J,\n\nit was said, came to the conclusion, on the materials placed before theni, that the affairs of the company were being grossly mismanaged so as to result in the cessation of production of an essential commodity and serious unemployment amongst a section of the community. In view of the detriment thus caused to public economy, it was competent for Parliament to enact a measure applicable to this company and its shareholders alone, and Parliament must be the judge as to whether the evil which the impugned Act was designed to remedy prevailed to such an extent in this companv as to call for special legislation. Reliance was pl::tced in support of this argument on certain American decisions dealing with the equal protection clause of the Fourteenth Amendment of the Federal\n\nConstitution. It is, however, unnecessary to discuss those decisions here, for it is undeniable that equal protection of the laws cannot mean that all laws must be quite general in their character and application.\n\nA legislature empowered to make laws on a wide range of subjects must of necessity have the power qf making special laws to attain particular objects and must. for that purpose, possess large powers of distinguishing and classifying the persons or things to be brought under the operation of such laws, provided the basis of such classification has a just and reasonable relation to the object which the legislature has in view. While, for instance, a classification in a law regulating labour in mines or factories may be based on age or sex, it may not be based on the colour of one's skin. It is also true that the class of persons to whom a law is made applicable may be large or small, and the degree of harm which has prompted the enactment of a particular law is a matter within the discretion of the law-makers. It is not the province of the court to canvass the legislative judgment in such matters. But the issue here is not whether the impugned Act was ill-advised or not justified by the facts on which it was based, but whether -it transgresses the explicit constitutional re:; triction on legislative power imposed by arti<; le 14.\n\nIt is obvious that the legislation is directed solely against a particular company and shareholders and not against any class or category of companies and no question, therefore, of reasonable legislative classification arises. If a law is made applicable to a class of persons or things and the classification is based upon differentia having a rational relation to the object sought to be attained, it can be no objection to its constitutional validity that its application is found to affect only one person or thing. For instance, a law may be passed imposing certain restrictions and burdens on joint stock companies with a share capital of, say, Rs. IO crores and upwards, and it may be found that there is only one such company for the time being to which the Jaw could be applied. If other such companies are brought into existence in future the law would apply to them also, and no discrimina. tion would thus be involved. But the impugned Act, which selects this particular company and imposes upon it and its shareholders burdens and disabilities on the graund of mismanagement and neglect of duty on the part of those charged with the conduct of its undertaking. is plain! y discriminatory in character and is, in my judgment, within the constitutional inhibition of article 14.\n\nLegislation based upon mismar.agement or other misconduct as the differentia and made applicable to a specified individual or corporate body is not far removed from the notorious parliamentary procedure formerly employed in Britain of punishing individual delinquents by passing bills of attainder, and should not, I think, receive judicial encouragement.\n\nIt was next urged that the burden of proving that\n\nte impugned Act is unconstitutional lay on the petitioner, and that, inasmuch as he has failed to adduce any evidence to show that the selection of this company and its shareholders for special treatment under the impugned Act was arbitrary, tlie application must fail. Whilst all reasonable presumption must undoubtedly be made in support of the constitutional v.alidity of a law made by a competent legislature, the circumstances of the present case would seem, .to my\n\nOhiranjitlal\n\nChowdhuri'\n\nThs Union of\n\nIndia and\n\nOthers.\n\nPatanjali\n\nSastri J.\n\nCki1'anjitla!\n\nChowdhuri\n\nv, The Uriion of\n\nI11d1a and\n\nOthers.\n\nPatarija!i\n\nSastri J,\n\nmind to exclude such presumption. Hostile discdmina. tion is writ large over the fate of the impugned Act and it discloses no grounds for such legislative intervention. For all that appears no compelling public interests were involved. Even the preamble to the original Ordinance was omitted. Nor did respondents 1 and 2 file any counter-statement in this proceeding explaining the circumstances which led to the enactment of such an extraordinary measure. There is thus nothing in the record even by way of allegation which the petitioner need take steps to rebut. Supp\"sing, however, that the impugned Act was passed on the same grounds as were mentioned in the preamble to the repealed Ordinance, namely, mismanagement and neglect prejudicially affecting the production of an essential commodity and causing serious unemployment amongst a section of the community, the petitioner could hardly be expected to assume the burden of showing, not that the company's affairs were properly managed, for that is not his case, but that there were also other companies similarly mismanaged, for that is what, according to the respondents, he should prove in order to rebut the presump. tion of constitutionality. In other words, he should be called upon to establish that this company and its shareholders were arbitrarily singled out for the imposition of the statutory disabilities. How could the . petitioner discharge such a burden? Was he to ask for an investigation by the Court of the affairs of other industrial concerns in India where also there were strikes and lock outs resulting in unemployment and cessation of production of essential commodities? \\Vould those companies be willing to submit to such an investigation ? And even so, how is it possible to prove that the mismanagement and neglect which is said to have prompted the legislation in regard to this company was prevalent in the same degree in other companies ? In such circumstances, to cast upon the petitioner a burden of proof which it is as needless for him to assume as it is impracticable to discharge is to lose sight of the realities of the case.\n\nLastly, it was argued that the constitutionality of a statute could not be impugned under article 32 except by a person whose rights were infringed by the enact. ment, and that, inasmuch as there was no infringement of the individual right of a shareholder, even assuming that there was an injury to the company as a corporate body, the petitioner was not entitled to apply for relief under that article. Whatever validity the argument may have in relation to the petitioner's claim based on the alleged invasion of his right of property under article 31, there can be little doubt that, so far as his claim based on the contravention of article 14 is concerned, the petitioner is entitled to relief in his own right. As has been pointed out already, the impugned Act deprives the shareholders of the company of important rights and safeguards which are enjoyed by the shareholders of other joint stock companies in India unJer the Indian Companies Act. The petitioner is thus denied the equJ1l protection of the laws in his capacity as a shareholder, and none the less so because the other shareholders of the company are also similarly affected. The petitioner is therefore entitled to seek relief under article 32 of the Constitution.\n\nIn this view it becomes unnecessary to consider the questions raised under articles 19 and 31 of the Constitution.\n\nIn the result, I would allow the application.\n\n'Chiranjitlai\n\nChowdhuri\n\n•• The Unio11 of Ind1a and\n\nOther I.\n\nPalattjali\n\nSastr' J.\n\nMuKHERJEA ].-This is an application presented by Mukhorj,. J. one Chiranjitlal Chowdhuri, a shareholder of the Sholapur Spinning and \\Veaving Company Limited (hereinafter referred to as the company), praying for a writ of mandamus and certain other reliefs under article 32 of the Constitution. The company, which has its registered office within the State of Bombay and is governed by the-provisions of the Indian Companies Act, was incorporated with an authorised capital of Rs. 48 lakhs divided into 1590, fully paid up ordinary shares of Rs. 100 each, 20 fully paid up ordinary shares of Rs. 500 each and 32,000 partly paid up\n\nt\\\\m\\\\\\'d\\\\'J~ }.)!krnce shares of Rs. 100 each. The\n\nChiranjitlal•\n\nChawdhuri\n\nThe U>iion of\n\nIndia and\n\nOthers.\n\nMukherjea J.\n\npresent paid up capital of the company is Rs. 32 lakhs half of which is represented by the fully paid up ordinary shares and the other half by the partly paid up cumulative preference shares. The petitioner states in his petition that he holds in his own right three ordinary shares and eighty preference shares in the company, though according to his own admission the preference shares do not stand in his name but have been registered in the name of the Baroda Bank Limited with which the shares are pledged. According to the respondents, the petitioner is the registered holder of one single ordinary share in the company.\n\nIt appears that on July 27, 1949, the directors of the company gave a notice to the workers that the mills would be closed, and pursuant to that notice, the mills were in fact closed on the 27th of August following.\n\nOn January 9, 1950, the Governor-General of lnd1a promulgated an Ordinance which purported to make special provisions for the proper management and administration of the company. It was stated in the preamble to the Ordinance that \"on account of mismanagement and neglect, a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company Limited which has prejudicially affected the production of an essential commodity and has caused serious unemployment amongst a certain section of the community \", and it was on account of the emergency arising from this situation that the promulgation of the Ordinance was necessary.\n\nThe provisions of the Ordinance, so far as they are material for our present purpose, may be summarised as follows : Under section 3 of the Ordinance, the Central Government may, at any time, by notified order, appoint as many persons as it thinks fit, to be directors of the company for the purpose of taking over its management and administration and may appoint one of such directors to be the Chairman. Section 4 provides that on the issue of a notified order under section 3 all the directors of the company holding office as such immediately before the issue of the order shall be deemed to have vacated their offices, and any existing\n\ncontract of management between the company and any managing agent thereof shall be deemed to have\n\nterminated. The directors thus appointed shall be for all purposes the directors of the company duly constituted under the Companies Act and shall alone be entitled to exercise all the powers of the directors of the company. The powers and the duties of the directors are specified in section 5 and thiS section inter alia empowers the directors to vary or cancel, with the previous sanction of the Central Government, any contract or agreement entered into between the company and any other person if they are satisfied that such contract or agreement is rletrimental to the interests of the company. Section 10 lays down that no compensation for premature termination of any contract could be claimed by the managing agent or any other contracting party. It is provided by section 12 that so long as the management by the. statutory directors continues, the shareholders would be precluded from nominating or appointing any person to be a director of the company and any resolution passed by them will not be effective unless it is approved by the Central Government. This section Jays down further that during this period no proceeding for winding up of the company, or for appointment of a recei, er in respect thereof could be instituted in any court, unless it is sanctioned by the Central Government, ancl the\n\nCentral Government would be competent to impose any restrictions or limitations as regards application of the provisions of the Indian Companie3 Act to the affairs of the comµany.\n\nThe only other material provision is that contained in section 15, under which the Central\n\nGovernment may, by no.lilied order, direct that all or any of the powers exercisable by it under this Ordin\n\nance may be exercised by the Government of Bombay.\n\nIn accordance with the provisions of section 15\n\nmeniond above, the Central Government, by notificat10n issued on the same day that the Ordinance was promulgated, delegated ail its powers exercisable Q.nder the Ordinance to the Government of Bombay.\n\nChiraJJjitlaZ Chowdhurt\n\nThe Unioti of\n\nIndin and\n\nOthra.\n\nMukherjea J.\n\nChiranj1tlal\n\nChowdhuri\n\n•• The U11ion of\n\nIndia and\n\nOthers.\n\nMukherjea J.\n\nOn th.e next day, the Government of Bombay appofnted respondents 3 to 7 as directors of the company in terms of section 3 of the Ordinance.\n\nOn the 2nd of March, 1950, the respondent No. 9 was appointed a director and respondent No. 5 having resigned his office in the meantime, the respondent No. 8 was appointed in his place. On the 7th of April, 1950, the Ordinance was repealed and an Act was passed by the Parliament of India, known as the Sholapur Spinning and Weaving Company (Emergency Provisions) Act which re-enacted almost in identical terms all the provisions of the Ordinance and provided further that all actions taken and orders made under the Ordinance shall be deemed to have been taken or made under the corresponding provisions of the Act. The preamble to the Ordinance was not however reproduced in the Act.\n\nThe petitioner in his petition has challenged the constitutional validity of both the Ordinance and the Act.\n\nAs the Ordinance is no longer in force and all its provisions have been incorporated in the Act, it will not be nece8sary to deal with or refer to the enactments separately.\n\nBoth the Ordinance and the Act have been attacked on identical grounds and it is only necessary to enumerate briefly what these grounds are.\n\nThe main ground put forward by the petitioner is that the pith and substance of the enactments is to take possession of and control over the mills of the company which are its valuable assets and such taking of possession of property is entirely beyond the powers of the Legislature. The provisions of the Act, it is said, amount to deprivation of property of the shareholders as well as of the company within the meaning of article 31 of the Constitution and the restrictions imposed on the rights of the shareholders in respect to the shares held by them constitute an unjustifiable interference with their rights to hold property and as such are void under article 19 (1) (f). It is urged that there was no public purpose for which the Legislature <; ould authorise the taking pcissession or acqubition of\n\nr . ,,,)\n\nproperty and such acquisition or taking of possession without payment of compensation is in violation of the fundamental rights guaranteed by article 31 (2) of the Constitution. It is said further that the enactment denies to the company and its shareholders equality before the law, and equal protection of laws and thus offends against the provisions of article 14 of the Constitution. The only other material point raised is that the legislation is beyond the legislative competency of the Parliament and is not covered by any of the items in the legislative lists.\n\nOn these allegations, the petitioner prays, in the first instance, that it may be declared that both the Act and the Ordinance are ultra vires and void and an injunction may be issued restraining the respondents from exercising any of the powers conferred upon them by the enactments. The third and the material prayer is for issuing a writ of mandamus, \"restraining the respondents 1 to 9 from exercising or purporting to exercise any powers under the said Ordinance or Act and from in any manner interfering with the management or affairs of the company under colour of or any purported exercise of any powers under the Ordinance or the Act.\" The other prayers are not material for our purpose.\n\nBefore I address myself to the merits of this application it will be necessary to clear up two preliminary matters in respect to which arguments were advancd at some length from the Bar. The first point relates to the scope of our enquiry in the prese11t case and raises the question as to what precisely are the matters that h_ave to be investigated and determined on this application of the petitioner. The second point relates to the form of relief that can be prayed for and granted in a case of this description.\n\nArticle. 32 (1) of the Constitution guarantees to everybody the right to move this court, by appropriate proceeding, for enforcement of the fundamental rights which are enumerated in Part III of the Constitution. Clause (2) of the article lays down that the\n\n11~\n\n195\"\n\nChirari.jitlal Chowdhuri\n\nTho Union of\n\nIndill and\n\nOther a.\n\nMukherjea J.\n\n1900 Supreme Court shall have the power to issue directions or orders or _writs including writs in the nature of CMranjitlal h 'b Chowdhuri habeas corpus, mandamus, pro i ition, quo warranto\n\nThe Union of\n\nIndia and\n\nOthtJrs.\n\nand certi:orari whichever may be appropriate for the enforcement of any of the rights conferred by this part.\n\nThus anybody who complains of infraction of any of\n\nMukherjeo J. the fundamental rights guaranteed by the Constitution is at liberty to move the Supreme Court for the enforcement of such rights and this court has been given the power to make orders and issue directions or writs similar in nature to the prerogative writs of English law as might be considered appropriate in particular cases. The fundamental rights guaranteed by the Constitution are available not merely to\n\n~ individual citizens but to corporate bodies as well except where the language of the provision or the nature of the right compels the inference that they are applicable only to natural persons.\n\nAn incorporated company, therefore, can come up to this court for enforcement of its fundamental rights and so may the individual shareholders to enforce their own; but it would not be open to an individual shareholder to complain of an Act which affects the fundamental rights of the company except to the extent that it constitutes an infraction of his own rights as well.\n\nThis follows logically from the rule of law that a corporation has a distinct legal personality of its own with rights and capacities, duties and obligations separate from those of its individual members.\n\nAs the\n\n~ rights are different and inhere in different legal entities, it is not competent to one person to seek to enforce the rights of another except where the Jaw permits him to do so. A well known illustration of such exception is furnished by the procedure that is sanctioned in an application for a writ of habeas corpus. Not only the man who is imprisoned or detained in confinement but any person, provided he is not an absolute • jstranger, can institute proceedings to obtain a writ. of 'habeas corpus for the purpose of liberating another from an illegal imprisonment,\n\nChiranj1tlal\n\nOhowdhu,.t\n\nThe Union of India and\n\nOther\".\n\nThe application before us under article 32 of the Constitution is on behalf of an individual shareholder of the company.\n\nArticle 32, as its provisions show, is not directlv concerned with the determination of constitutional validity of particular legislative enact. ments. What it aims at is the enforcing of fundamental rights guaranteed by the Constitution, no matter whether the necessity for such enforcement arises out of an action of the executive or of the legislature.· To make out a case under this article, it is\"\n\nincumbent upon the petitioner to establish not merely that the law complained of is beyond the competence of the particular legislature as not being covered by any of the items in the legislative lists, but that it• affects or invades his fundamental rights guaranteed. by the Constitution, of which he could seek enforcement by an appropriate writ or order. The rights that could be enforced under article 32 must ordinarily be the rights of the petitioner himself who complains of infraction of such rights and approaches the court for relief.\n\nThis being the position, the proper subject~ of our investigation would be what rights, if any, of the petitioner as a shareholder of the company have been violated by the impugned legislation. A discussion of the fundamental rights of the company as such would be outside the purview of our enquiry. It is settled law that in order to redress a wrong done to the company, the action should prima jacie be brought by the company itself. It cannot be said that this course is not possible in the circumstances of th present case.\n\nAs the law is alleged to be unconstitutional, it is open to the old directors of the com pany who have been ousted from their position b reason o~ te enactment to maintain that they are dir ect?rs. still m the eye of law, and on that footing the maionty of shareholders can also assert the rights of the company as such.\n\nNone of them, however, have come forward to institute any proceeding on behalf of the company.\n\nNeither in form nor in substance does the present application purport to be one made by the company itself. Indeed, the company\n\nMukherjea J.\n\nChiranjitlai Chowdhuri\n\nThe Uriion of [,1dia and\n\nOthers,\n\nA1ukheriea J,\n\nis -one of the respondents, and opposes the petition.\n\nAs regards the other point, it would appear from the language of article 32 of the Constitution that. the sole object of the article is the enforcement of fundamental rights guaranteed by the Constitution. A proceeding under this article cannot really have any affinity to what is known as a declaratory suit.\n\nThe first prayer made in the petition seeks relief in the shape of a declaration that the Act is invalid and is apparently inappropriate to an application under article 32; while the second purports to be framed for a relief by way of injunction consequent upon the first.\n\nAs regards the third prayer, it has been contended by Mr. Joshi, who appears for one of the respondents, that having regard to the nature of the case and the allegations made by the petitioner himself, the prayer for a writ of mandamus, in the form in which it has been made, is not tenable. What is argued is that a writ of mandamus can be prayed for, for enforcement of statutory duties or to compel a person holding a public office to do or forbear from doing something which is incumbent upon him to do or forbear from doing under the provisions of any law.\n\nAssuming that the respondents in the present case are public servants, it is said that the statutory duties which it is incumbent upon them to discharge are precisely the duties which are laid down in the impugned Act itself.\n\nThere is no legal obligation on their part to abstain from exercising the powers conferred upon them by the impeached mactment which the court can be called upon to enforce.\n\nThere is really not much substance in this argument, for according to the petitioner the impugned Act is not valid at all and consequently the respondents cannot take their stand on this very Act to defeat the application for a writ in the nature of a mandamus. Any way, article 32 of the Constitution gives us very wide discretion in the matter of framing our writs to suit the exigencies of particular cases, and the application of the petitioner cannot be thrown out simply on the\n\nground that the proper writ or direction has not been prayed for.\n\nProceeding now to the merits of the case, the first contention that has been pressed before us by the learned Counsel for the petitioner is that the effect of the Sholapur Spinning and Weaving Company Limited (Emergency Provisions) Act, has been to take away from the company and its shareholders, possession of property and other interests in commercial undertaking and vest the same in certain persons who are appointed _ by the State, and the exercise of whose powers cannot be -.-~irected or co.ntrolled in any way by the shareholders.\n\n\"'\\As the taking of possession is not for any public pur-\n\n\\ ose and no provision for compensation has been made\n\nl'1y the law which authorises it, such law, it is said, +iolates the fundamental rights guaranteed under :lrticle 31 of the Constitution. _ / To appreciate the contention, it would be convenient / first of all to advert to the provisions of the first two / clauses of article 31 of the Constitution. The first / clause of article 31 lays down that \"no person shall be deprived of his property save by authority of law\".\n\nThe second clause provides : \"No property, movable or immovable, including any interest in, or in any company owning, any commercial or industrial undertaking, shall be taken possession of or acquired for public purposes under any law authorising the taking of such possession or such acquisition, unless the law provides for compensation for the property taken possesion of or acquired and either fixes the amount of the compensation, or specifies the principles on which, and the manner in which, the compensation is to be determined and given.\"\n\nIt is a right inherent in every sovereign to take and appropriate private property belonging to individual citizens for public use. This right, which is described as eminent domain in American law, is like the power ?I taxation, an offspring of political necessity, and it 1s supposed to be based upon an implied reservation by Government that private property acquired by its\n\nChiranjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers\n\nMukherjea J.\n\n...\n\nOhiranjitlal\n\nChowdhu.ri\n\nThe Union of India and\n\nOthers.\n\nMukheriea J.\n\nc:itizens under its protection may be taken or its use controlled for public benefit irrespective of the wishes of the owner. Article 31 (2) of the Constitution prescribes a two-fold limit within which such superior right of the State should be exercised.· One limitation imposed upon acquisition or taking possession of private property which is implied in the clause is that such taking must be for public purpose. The other condition is that no property can be taken, unless the law which authorises such appropriation contains a provision for payment of compensation in the manner laid down in the clause. So far as article 31 (2) is concerned, the substantial question for our consideration is whether the impugned legislation authorises any act amounting to acquisition or taking possession of private property within the meaning of the clause.\n\nIt cannot be disputed that. acquisition means and implies the acquiring of the entire title of the expropriated owner, whatever the nature or extent of that title might be. The entire bundle of rights which were vested in the original holder would pass on acquisition to the acquirer leaving nothing in the former.\n\nIn taking possession on the other hand, the title to the property admittedly remains in the original holder, though he is excluded from possession or enjoyment of the property. Article 31 (2) of the Constitution itself makes a clear distinction between acquisition of property and taking possession of it for a public purpose, though it places both of them on the same footing in the sense that a legislation authorising either of these acts must make provision for payment of compensation to the displaced or expropriated holder of the property. In the context in which the word \"acquisition\" appears in article 31 (2), it can only mean and refer to acquisition of the entire interest of the previous holder by transfer of title and I have no hesitation in holding that there is no such acquisition either as regards the property of the company or of the shareholders in the present case. The question, therefore, narrows down to this as to whether the legislation in\n\nquestion has authorised the taking of possession of any property or interest belonging to the petitioner.\n\nCkiranjitlal It is argued by the learned Attorney-General that the Chowdhuri\n\nv taking of possession as contemplated by article 31 (2) means the taking of possession of the entire bundle of The Union of rights which the previous holder had, by excluding India and him from every part or item thereof. If the original Other•. holder is still left to exercise his possession with regard Mukheriea 1 . to some of the rights which were within the folds of his title, it would not amount to taking possession of the property for purposes of article 31 (2) of the Con. stitution.\n\nHaving laid down this proposition of law, the learned Attorney-General has taken us through the various provisions of the impugned Act and the contention advanced by him substantially is that~ neither the company nor the shareholders have been dispossessed from their property by reason of the enactment. As regards the properties of the company! I\n\nthe directors, who have been given the custody of the property, effects and actionable claims of the company,· are, it is said, to exercise their powers not in their own ; right but as agents of the companv. whose beneficial intertst in al.Lita-a£sets-ffils-not-bee1i_toui;, hed_gr_JaJ,:en away at all.\n\nNo doubt the affairs of the company are tObe managed by a body of directors appointed by the State and not by the company, but this, it is argued, would not amount to taking possession of any property or interest within the meaning of article 31 (2).\n\nMr. Chari, on the other hand, has contended on behalf of the petitioner that after the management is taken over by the statutory directors, it cannot be said \\ that the company still retains possession or control over its property and assets. Assuming that this State\n\nmanagement was imposed in the interests of the share. holders themselves and that the statutory directors are acting as the agents of the company, the possession of the statutory directors could not, it is argued, be regarded in law as possession of the company so long as they are bound to act in obedience to the dictates of the Central Government and not of the company itself in tile aclministration of its affairs. Possession of an\n\n1950\"\n\nOhiranjit!al Ohowdhuri\n\nThe Union of Ind1a and\n\nOthera.\n\nMukherjea J.\n\nagent, it is said, cannot juridically be the possession of the principal, if the agent is to act not according to the commands or dictates of the principal, but under the direction of an exterior authority.\n\nThere can be no doubt that there is force in this contention, but as I have indicated at the outset, we are not concerned in this case with the larger question as to how far the inter. position of this statutory management and control amounts to taking possession of the property and assets belonging to the company.\n\nThe point for our consideration is a short one and that is whether by virtue of the impugned legislation any l\n\n'property or interest of the petitioner himself, as a shareholder of the company, has been taken possession . of by the State or an authority appointed under it, as contemplated by article 31 (2) of the Constitution.\n\nThe petitioner as a shareholder has undoubtedly Ian interest in the company. His interest is represented by the share he holds and the share is movable property according to the Indian Companies Act with iall the incidence of such property attached to it.\n\nOrdinarily, he is entitled to enjoy the income arising from the shares in the shape of dividends; the share like any other marketable commodity can be sold or transferred by way of mortgage or pledge. The holding of the share in his name gives him the right to vote at the election of directors and thereby take a part, though indirectly, in the management of the company's affairs. If the majority of shareholders sides with him, he can have a resolution passed which would be binding on the company, and lastly, he can institute proceedings for winding up of the company which may result in a distribution of the net assets among the shareholders.\n\nIt cannot be disputed that the petitioner has not been dispossessed in any sense of the term of the shares he holds.\n\nNobody has taken the shares away from him. His legal and beneficial interest in respect to the shares he holds is left intact. If the company declares dividend, he would be entitled to the same.\n\nHe can sell or otherwise dispose of the shares at any\n\n. -·-\n\ntime at his option. The impugned Act has affected him in this way that his right of voting at the election of directors has been kept in abeyance so long as the management by the statutory director continues; and as a result of that, his right to participate in the management of the company has been abridged to that extent. His rights to pass resolutions or to institute winding up proceedings have also been restricted though they are not wholly gone; these rights can be exercised only with the consent or sanction of the Central Government. In my opinion, from the facts\\ stated above, it cannot be held that the petitioner has been dispossessed from the property owned by him.\n\nI may apply the test which Mr. Chari himself formulated. If somebody had taken possession of the petitioner's shares and was clothed with the authority to exercise all the powers which could be exercised by the holder of the shares under law, then even if he purported to act as the petitioner's agent and exercise these powers for his benefit, the possession of such person would not have been the petitioner's possession if he was bound to act not under the directions of the petitioner or in obedience to his commands but under the directions of some other person or authority. There is no doubt whatsoever that that is not the position in the present case. The State has not usurped the shareholders' right to vote or vested it in any other authority. The State appoints directors of its own choice but that it does, not in exercise of the shareholders' right to vote but in exercise of the powers vested in it by the impugned Act. Thus there has been no dispossession of the shareholders from their right of voting at all. The same reasoning applies to the other rights of the shareholders spoken of above, namely, their right of passing resolutions and of presenting winding up petition. These rights have been restricted undoubtedly and may not be capable of being exercised to the fullest extent as long as the management by the State continues. \\¥hether the restrictions are such as would bring the case within\n\n11~\n\nChiranjitlal Ohowdhurt\n\nThe Union of\n\nIndia and\n\nOther&.\n\nMukherjea .J.\n\n19~0\n\nChiranjitla!\n\nGhowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.\n\nMukherjea J.\n\nthe mischief of article 19 (1) (f) of the Constitution,\n\nI will examine presently ; but I have no hesitation in holding that they do not amount to dispossession of the shareholders from these rights in the sense that the rights have been usurped by other people who are exercising them in place of the displaced shareholders.\n\nIn the view that I have taken it is not necessary to discuss whether we can accept as sound the contention put forward by the learned Attorney-General that the word \" property \" as used in article 31 of the Con. stitution connotes the entire property, that is to say the totality of the rights which the ownership of the object connotes.\n\nAccording to Mr. Setalvad, if a shareholder is not deprived of the entirety of his rights which he is entitled to exercise by reason of his being the owner or holder of the share and some rights, however insignificant they might be, still remain in him, there cannot be any dispossession as contemplated by article 31(2). It is difficult, in my opinion, to accept the contention formulated in such broad terms. The test would certainly be as to whether the owner has been dispossessed substantially from the rights held by him or the loss is only with regard to some minor ingredients of the proprietory right. It is relevant to refer in this connection to an observation made by Rich J. in a Full Bench decision of the High Court of Australia,(') where the question arose as to whether the taking of exclusive possession of a property for an indefinite period of time by the Commonwealth of Australia under Reg. 54 of the National Security Regulation amounted to acquisition of property within the meaning of placitum 31, section 51, of the Com. monwealth Constitution. The majority of the Full Bench answered the question in the affirmative and the main reason upon which the majority decision was based is thus expressed in the language of Rich J.-\n\n\" Property, in relation to land, is a bundle of rights exercisable with respect to the land. The tenant of an unencumbered estate in fee simple in possession has the largest possible bundle. But there is nothing in\n\n(1) See Miniater of State for the Army v. Dalziel, 68 C L.R. {>. 261.\n\nthe placitum to suggest that the legislature was intended to be at liberty to free itself from the restrictive provisions of the placitum by taking care to seize something short of the whole bundle owned by the person whom it was expropriating.\" . It is not, however, necessary for my purpose to pursue the matter any further, as in my opinion there has been no dispossession of the rights of a shareholder in the present case.\n\nMr. Chari in course of his opening relied exclusively on clause (2) of article 31 of the Constitution. During his reply, however, he laid some stress on clause (1) of the article as well, and his contention seems to be that there was deprivation of property in the present case in contravention of the terms of this clause. It is difficult to see what exactly is the contention of the learned Counsel and in which way it assists him for purposes of the present case. It has been argued by the learned Attorney-General that clause (1) of article 31 relates to a power different from that dealt with under clause (2).\n\nAccording to him, what clause (1) contemplates is confiscation er destruction of property in exercise of what are known as ' police powers ' in American law, for which no payment of compensation is necessary. I do not think it proper for purposes of the present case to enter into a discussion on this somewhat debatable point which has been raised by the learned Attorney-General. In interpreting the provisions of our Constitution, we should go by the plain words used by the Constitution.makers and the importing of expressions like ' police power', which is a term of variable and indefinite connotation in American law can only make the task of interpretation more difficult.\n\nIt is also not necessary to express any opinion as to whether clauses (1) and (2) of article 31 relate to exercise of different kinds of powers or they are to be taken as cumulative provisions in relation to the same subjectmatter, namely, compulsory acquisition of property.\n\nIf the word \"deprived\" as used in clause (1) connotes the idea of 'destruction or confiscation of property, obviously no such thing has happened in the present\n\nChiranjtllai ChowdhurS\n\nv, The Union of\n\nIndia and\n\nOthera.\n\n.Mukherjea J.\n\nOhiraajitlal Chowdhuri\n\nThe Union of India and\n\nOthers.\n\nMukherjea J,\n\ncase.\n\nAgain if clauses (1) and (2) of article 31 have to be read together and \" deprivation\" in clause (1) is given the same meaning as compulsory acquisition in clause (2), clause (1), which speaks neither of compensation nor of public purpose, wonld not by itself, and apart from clause (2), assist the petitioner in any way.\n\nIf the two clauses are read disjunctively, the only question that may arise in connection with clause (1) is whether or not the deprivation of property is authorised by law. Mr. Chari has raised a question relating to the validity of the legislation on the ground of its not being covered by any of the items in the legislative list and to this question I would advert later on; but apart from this, clause (1) of article 31 of the Constitution seems to me to be altogether irrelevant for purposes of the petitioner's case.\n\nThis leads me to the consideration of the next point raised by Mr. Chari, namely, whether these restrictions offend against the provision of article 19(1)(f) of the Constitution.\n\nArticle 19(1) of the Constitution enumerates the different forms of individual liberty, the protection of which is guaranteed by the Constitution. The remaining clauses of the article prescribe the limits that may be placed upon these liberties by law, so that they may not conflict with public welfare or general morality. Article 19( 1) (f) guarantees to all citizens 'the right to acquire, hold or dispose of property.' Any infringement of this provision would amount to a violation of the fundamental rights, unless it comes within the exceptions provided for in clause (5) of the article. That clause permits the imposition of reasonable restrictions upon the exercise of such righ teither in the interests of the general public or for the protection of the interests of any Scheduled Tribe. Two questions, therefore, arise in this connection: first, whether the restrictions that have been imposed upon the rights of the petitioner as a shareholder in the company under the Sholapur Act amount to infringement of his right to acquire, hold or dispose of property within the meaning of article 19(l)(f) of the Constitution and\n\n--.\n\nsecondly, if they do interefere with such rights, whether they are covered by the exceptions laid down in clause (5) of the article.\n\nSo far as the first point is concerned, it is quite clear that there is no restriction whatsoever upon the petitioner's right to acquire and dispose of any property.\n\nThe shares which he holds do remain his property and his right to dispose of them is not fettered in any way.\n\nIf to 'hold' a property means to possess it, there is no\n\ninfrinement of this right either, for, as I have stated already, the acts complained of by the petitioner do not amount to dispossession of him from any property in the eye of law. It is argued that 'holding' includes enjoyment of all benefits that are ordinarily attached to the ownership of a property. The enjoyment of the fruits of a property is undoubtedly an incident of ownership. The pecuniary benefit, which a share_ holder derives from the shares he holds, is the divi. dend and there is no !imitation on the petitioner's right in this respect. The petitioner undoubtedly has been precluded from exercising his right of voting at the election of directors so long as the statutory directors continue to manage the affairs of the company.\n\nHe cannot pass an effective resolution in concurrence with the majority of shareholders without the consent or sanction of the Central Government and without such sanction, there is also a disability on him to institute any winding up proceedings in a court of law.\n\nIn my opinion, these are rights or privileges which are appurtenant to or flow from the ownership of pro\n\nperty, but by themselves and taken independently, they cannot be reckoned as property capable of being acquired, held or disposed of as is contemplated by article 19 (1) (f) of the Constitution. r do not think that there has been any restriction on the rights of a shareholder to hold, acquire or dispose of his share by reason of the impugned enactment and consequently article 19 (!) (f) of the Constitution is of no assistance to the petitioner. In this view, the other point does not arise for consideration, but I may state here that even if it is conceded for argument's sake that the\n\nChiranjitlal Ohowdhuri\n\nThe Uniori of\n\nIndia and\n\nOthers,\n\nA1.ukherja. J.\n\nChiran.jitlal Chawdhur'\n\nThe Union of\n\nIndia and\n\nOther ii\n\nMukherj('a J,\n\ndisabilities imposed by the impugned legislation amount to restrictions on proprietory right, they may very well be supported as reasonable restraints imposed in the interests of the general public, viz., to secure the supply of a commodity essential to the community and to prevent a serious unemployment amongst a section of the people.\n\nThey are, therefore, protected completely by clause (5) of article 19.\n\nThis disposes of the second point raised by Mr. Chari.\n\nThe next point urged on behalf of the petitioner raises an important question of constitutional law which turns upon the construction of article 14 of the Constitution. It is urged by the learned Counsel for the petitioner that the Sholapur Act is a piece of discriminatory legislation which offends against the provision of article 14 of the Constitution.\n\nArticle 14 guarantees to all persons in the territory of India equality before the law and equal protection of the laws and its entire object, it is said, is to prevent any person or class of persons from being singled out as a special subject of discriminatory legislation.\n\nIt is pointed out that the law in this case has selected one particular company and its shareholders and has taken away from them the right to manage their own affairs, but the same treatment has not been meted out to all other companies or shareholders situated in an identical manner.\n\nArticle 14 of the Constitution, it may be noted, corresponds to the equal protection clause in the Fourteenth Amendment of the American Constitution which declares that \"no State shall deny to any person within its jurisdiction the equal protection of the laws.\" We have been referred in course of the arguments on this point by the learned Counsel on both sides to quite a number of cases decided by the American Supreme\n\nCourt, where questions turning upon the construction of the 'equal protection' clause in the American Consti. tution came up for consideration. A detailed examination of these reports is neither necessary nor profitable for our present purpose but we think we can cull a few general principles from some of the pronouncements of\n\nthe American Judges which might appear to us to be consonant with reason and help us in determining the true meaning and scope of article 14 of our Constitution.\n\nI may state here that so far as the violation of the equality clause in the Constitution is concerned, the petitioner, as a shareholder of the company, has as much right to complain as the company itself, for his complaint is that apart from the discrimination made against the company, the impugned legislation has discriminated against him and the other shareholders of the company as a group vis a-vis the shareholders of all other companies governed by the Indian Companies Act who have not been treated in a similar way. As the discriminatory treatment has been in respect to the sharholders of this company alone, any one of the shareholders, whose interests are thus vitally affected, has a right to complain and it is immaterial that there has been nodiscrimination inter se amongst the shareholders them. selves.\n\nIt must be admitted that the guarantee againstthe denial of equal protection of the laws does not mean that identically the same rules of law should be made applicable to all persons within the territory of India in spite of differences of circumstances and conditions.\n\nAs has been said by the Supreme Court of America, \"equal protection of laws is a pledge of the protection of equal laws('),\" and this means \"subjection to equal laws applying alike to all in the same situation(').\" In other words, there should be no discrimination between one person and another if as regards the subject-matter of the legislation their position is the same. I am unable to accept the argument of Mr. Chari\n\nthat a legislation relating to one individual or one family or one body corporate would per se violate the guarantee of the equal protection rule.\n\nThere can certainly be a law applying to one person or to one group of persons and it cannot be held to be\n\nn) Yt('k Wo v. Hopkins, llA US .1t 269.\n\n(2) Southern Railway Company v. Gr .. ne, 216 U.S. 4QO. 41'.\n\nOhir11.njitlal Chowdhuri\n\n•• Th~ Union of India and\n\nOthers,\n\nMukherja J.\n\nChiran}itlal Chowdhuri\n\nTh6 Un.ion of\n\nIndia anci\n\nOther a.\n\nMukhrjea J,\n\nunconstitutional if it is not discriminatory in its character('). It would be bad law \"if it arbitrarily selects one individual or a class of individuals, one corporation or a class of corporations and visits a penalty upon them, which is not imposed upon others guilty of like delinquency(').\" The legislature undoubtedly has a wide field of choice in determining and classifying the subject of its laws, and if the law deals alike with all of a certain class, it is normally not obnoxious to the charge of denial of equal protection; but the classification should never be arbitrary. It must always rest upon some real and substantial distinction bearing a. reasonable and just relation to the things in respect to which the classification is made; and classification made without any substantial basis should be regarded as invalid(').\n\nThe question is whether judged by this test the the impugned Act can be said to have contravened the provision embodied in article 14 of the Constitution.\n\nObviously the Act purports to make provisions which are of a drastic character and against the general law of the land as laid down in the Indian Companies Act, in regard to the administration and management of the affairs of one company in Indian territory. The Act itself gives no reason for the legislation but the Ordinance, which was a precursor of the Act, expressly stated why the legislation was necessary.\n\nIt said that owing to mismanagement and neglect, a situation had arisen in the affairs of the company which prejudicially affected the production of_ an essential commodity and caused serious unemployment amongst a certain section of the community. Mr. Chari's contention in substance is that there are various textile companies in India situated in a similar manner as the Sholapurcompany, against which the same charges could be brought and for the control and regulation of which all the reasons that are mentioned in the preamble to the Ordinance\n\nO} Willis ronstitutional Law, p. 5flO. 121Gulf0. &! S. Ti'. R. Co. v. Ellis, 163 U.S. Ito, al 1r9, \\3) Southern Rallway Co. v. Greene, 216 U.S. 40J. nt 41'2.\n\ncould be applied. Yet, it is said, the legislation has been passed with regard to this one company alone.\n\nThe argument seems plausible at first sight, but on a closer examination I do not think that I can accept it as sound. It must be conceded that the Legislature has a wide discretion in determining the subject matter of its laws. It is an accepted doctrine of the American Courts and which seems to me to be well founded on principle, that the presumption is in favour of the constitutionality of an enactment and the burden is upon him who attacks it to show that there has been a transgression of constitutional principles. As was said by the Supreme Court of America in Middleton v. Texas Power and Light Company('),\n\n\"It must be presumed that a Legislature understands and correctly appreciates the needs of its own people, that its Ia ws are directed to problems made manifest by experience and that its discriminations are based upon adequate grounds.\" This being the position, it is for the petitioner to establish facts whicb would prove that the selection of this particular subject by the Legislature is unreasonable and based upon arbitrary grounds. No allegations were made in the petition and no materials were placed before us to show as to whether there are other companies in India which come precisely under the same category as the Sholapur Spinning and Weaving Company and the reasons for imposing control upon the latter as mentioned in the preamble to the Ordinance are applicable to them as well. Mr. Chari argues that these are matters of common knowledge of which we should take judicial notice. I do not think that this is the correct line of approach. It is quite true that the Legislature has, in this instance, proceeded against one company only and its shareholders; but even one corporation or a group of persons can be taken as a class by itself for the purpose of legislation, provided it exhibits some exceptional features which are not possessed by others. The courts should prima f acie\n\n(II 219 U.S. 1.;2, alp. 157,\n\nI !7\n\nOhiranjttlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOther a.\n\nMukherjea J,\n\nChiranjttlal\n\nCkowdhuri\n\nThe Union of\n\nItidia and\n\nOthera.\n\nMukhdrfea J.\n\nlean in favour of constitutionality and should support the legislation if it is possible to do so on any reasonable ground, and it is for the party who attacks the val.idity of the legislation to place all materials before the court which would go to show that the selection is arbitrary and unsupportable.\n\nThrowing out of vague hints that there may be other instances of similar nature is not enough for this purpose. We have not even before us any statement on oath by the petitioner that what has been alleged against this particular company may be said against other companies as well.\n\nIf there was any such statement, the respondents could have placed before us the whole string of events that led up to the passing of this legislation. If we are to take judicial notice of the existence of similar other badly managed companies, we must take notice also of the facts which appear in the parliamentary proceedings in connection with this legislation which have been referred to by my learned brother, Fazl Ali J. in his judgment and which would go to establish that the facts connected with this corporation are indeed exceptional and the discrimination that has been made can be supported on just and reasonable grounds.\n\nI purposely refrain from alluding to these facts or basing my decision thereon as we had no opportunity of investigating them properly during the course of the hearing.\n\nAs matters stand, no proper materials have been placed before us by either side and as I am unable to say that the legislature cannot be supported on any reasonable ground, I think it to be extremely risky to overthrow it on mere suspicion or vague conjectures. If it is possible to imagine or think of cases of other companies where similar or identical conditions might prevail, it is also not impossible to conceive of something\" peculiar\" or \" unusual\" to this corporation which led the legislature to intervene in its affairs. As has been laid down by the Supreme Court of America, '' The Legislature is free to recognise degrees of harm and it may confine its restrictions to those cases where the need is deemed to be the clearest\"('). We should\n\n(1) Radice v. Now York, 261 U.S. 291.\n\nbear in mind that a corporation, which is engaged in production of a commodity vitally essential to the community, has a social character of its own, and it must no.t be regarded as the concern primarily or only of those who invest their money in it. If its possibilities are large and it had a prosperous and useful career for a long period of time and is about to collapse not for any economic reason but through sheer perversity of the controlling authority, one cannot say that the legislature has no authority to treat it as a class by itself and make special legislation applicable to it alone in the interests of the community at large. The combina tion of circumstances which are present here may be of such unique character as could not be existing in any other institution. But all these, I must say, are matters which require investigation on proper materials which we have not got before us in the present case.\n\nIn these circumstances I am constrained to hold that the present application must fail on the simple ground that the petitioner made no attempt to discharge the prima facie burden that lay upon him and did not place before us the materials upon which a proper decision on the point could be arrived at. In my opinion, therefore, the attack on the legislation on the gound of the denial of equal protection of law cannot succeed.\n\nThe only other thing that requires to be considered is the argument of Mr. Chari that the law in question is invalid as it is not covered by any of the items . in the legislative list.\n\nIn my opinion, this argument has no substance. What the law has attempted to do is to regulate the affairs of this company by laying down certain special rules for its management and administration. It is fully covered by item No. 43 of the Union List which speaks inter alia of \"incorporation, regulation and winding up of trading corporations.\" The result is that the application fails and is dismissed with costs.\n\nDAS J.-As I have arrived at a conclusion different from that reached by the majority of this Court, I\n\nChiran.jitlal Chowdhuri ..\n\nThe Union of\n\nIndia and\n\nOther a.\n\n,.Wukherjea. J.\n\nDaaJ.\n\nChiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndia and\n\nOth•r1.\n\nDasJ.\n\nconsider it proper, out of my respect for the opinion of my learned colleagues, to state the reasons for my conclusions in some detail.\n\nOn January 9, 1950, the Governor-General of India, acting under section 42 of the Government of India Act, 1935, promulgated an Ordinance, being Ordinance No. II of 1950, concerning the Sholapur Spinning and Weaving Company, Limited, (hereafter referred to as the said company). The preambles and the provisions of the Ordinance have been referred to in the judgment just delivered by Mukherjea J. and need not be recapitulated by me in detail.\n\nSuffice it to say that the net result of the Ordinance was that the managing agents of the said company were dismissed, the directors holding office at the time automatically vacated their office, the Government was authorised to nominate directors, the rights of the shareholders of this company were curtailed in that it was made unlawful for them to nominate or appoint any director, no resolution passed by them could be given effect to without the sanction of the Government and no proceeding for winding up could be taken by them without such sanction, and power was given to the Government to further modify the provisions of the Indian Companies Act in its application to the said company.\n\nOn the very day that the Ordinance was promulgated the Central Government acting under section 15 delegated all its powers to the Government of Bombay.\n\nOn January IO, 1950, the Government of Bombay appointed Respondents Nos. 3 to 7 as the new directors. On March 2, 1950, Respondent No. 5 having resigned, Respondent No. 8 was appointed a director in his place and on the same day Respondent No. 9 was also appointed as a director. In the meantime the new Constitution had come into force on January 26, 1950.\n\nOn February 7, 1950, the new directors passed a resolution sanctioning a call for H.s. SO on the preference shares. Thereupon a suit being Suit No. 438 of 1950 was filed in the High Court of\n\nS.C.R.\n\nSUPREME COURT REPOH.TS 917\n\nBombay by one Dwarkadas Shrinivas against the new directors challenging the validity of the Ordinance and the right of the new directors to make the call.\n\nBhagwati J. who tried the suit held that the Ordinance was valid and dismissed the suit. An appeal (Appeal No. 48 of 1950) was taken from that decision which was dismissed by a Division Bench (Chagla C.J. and Gajendragadkar J.) on August 29, 1950. In the meantime, on April 7, 1950, the Ordinance was replaced by Act No. XXVIII of 1950. The Act substantially reproduced the provisions of the Ordinance except that the preambles to the Ordinance were omitted. On May 29, 1950, the present petition was filed by one Chiranjitlal Chowdhuri.\n\nThe petitioner claims to be a shareholder of the said company holding 80 preference shares and 3 ordinary shares. The preference shares, according to him, stand in the name of the Bank of Baroda to whom they are said to have been pledged. As those preference shares are not registered in the name of the petitioner he cannot assert any right as holder of those shares.\n\nAccording to. the respondents, the petitioner appears oil the register as holder of only one fully paid up ordinary share. For the purposes of this application, then, the petitioner's interest in the said company must be taken as limited to only one fully paid up ordinary share. The respondents are the Union of India, the State of Bombay and the new directors besides the company itself. The respondent No. 5 having resigned, he is no longer a director and has been wrongly impleaded as respondent. The reliefs prayed for are that the Ordinance and the Act are itltra vires and void, that the Central Government and the State Government and the directors be restrained from exercising any powers under the Ordinance or the Act, that a writ of mandamus be issued restraining the new directors from exercising any powers under the Ordinance or the Act or from in any manner interfering with the management of the affairs of the company under colour of or in purported exercise of any powers under the said Ordinance or Act.\n\n19~0\n\nChiranjitlal\n\nChowdhuri\n\nTha Union of\n\nIndia and\n\nOther&.\n\nDaaJ.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of India and\n\nOther a.\n\nDas J,\n\nThe validity of the Ordinance and the Act has been challenged before us on the following grounds :-(i) that it was not within the legislative competence-(a) of the Governor-General to promulgate the Ordinance, or (b) of the Parliament to enact the Act, and (ii) that the Ordinance and the Act infringe the fundamental rights of the shareholders as well as those of the said company and are, therefore, void and inoperative under article 13.\n\nRe (i) -The present application has been made by the petitioner under article 32 of the Constitution.\n\nSub-section (1) of that article guarantees the right to move this Court by appropriate proceedings for the enforcement of the rights conferred by Part III of the Constitution. Sub-section (2) empowers this Court to issue directions or orders or writs, including certain specified writs, whichever may be appropriate, for the enforcement of any of the rights conferred by that Part. It is clear, therefore, that article 32 can only be invoked for the purpose of the enforcement of the fundamental rights. Article 32 does not permit an application merely for the purpose of agitating the competence of the appropriate legislature in passing any particular enactment unless the enactment also infringes any of the fundamental rights. In this case the claim is that the fundamental rights have been infringed and, therefore, the question of legislative competence may also be incidentally raised on this application. It does not appear to me, however, that there is any substance in this point for, in my opinion, entry 33 of List I of the Seventh Schedule to the Government of India Act, 1935, and the corresponding entry 43 of the Union List set out in the Seventh Schedule to the Constitution clearly support these pieces of legislation as far as the question of legislative competency is concerned. Sections 83A and 83-B of the Indian Companies Act can only be supported as valid on the ground that they regulate the management of companies and are, therefore, within the said entry. Likewise, the provisions of the Ordinance and the Act relating to the appointment of directors by the\n\nGovernment and the curtailment of the shareholders' rights as rega.rds the election of directors, passing of resolutions giving directions with respect to the management of the company and to present a winding up petition are matters touching the management of the company and, as such, within the legislative competence uf the appropriate legislative authority. In my judgment, the Ordinance and the Act cannot be held to be invalid on the ground of legislative incompetency of the authority promulgating or passing the same.\n\nRe (ii)-The fundamental rights said to have been infringed are the right to acquire, hold and dispose of property guaranteed to every citizen by Article 19(1)(f) and the right to property secured by article 31. In Gapalan' s case (I) I pointed out that the rights conferred by article 19 (1) (a) to (e) and (g) would be available to the citizen until he was, under article 21, .deprived of his life or personal liberty accordin~ to procedure established by law and that the right to property guaranteed by article 19 (1) (f) would like. wise continue until the owner was, under article 31, deprived of such property by authority of law. Therefore, it will be necessary to consider first whether the shareholder or the company has been deprived of his or its property by authority of law under Article 31 for, if he or it has been so deprived, then the question of his or its fundamental right under article 19 (1) (f) will not arise .\n\nThe relevant clauses of article 31 run as follows :-\n\n\" 31.\n\n(1) No person shall be deprived of his property save by authority of law.\n\n(2) No property, movable or immovable, including any interest in, or in any company owning, any commercial or industrial undertaking, shall be taken possession of or acquired for public purposes under any law authorising the taking of such possession or such acquisition, unless the law provides for compensation for the property taken possession of or acquired\n\nIll {19SOJ 8.0, R. 86.\n\nChirartjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthera.\n\nDasJ.\n\nChiranjitlal\n\nOhowdhu.ri\n\nThe Union of\n\nIndia and\n\nOther&,\n\nDas J.\n\nand either fixes the amount of the compensation, or specifies the principles on which. and the manner in which, the compensation is to be determined and . \" given.\n\nArticle 31 protects every person, whether such person is a citizen or not, and it is wide enough to cover a natural person as well as an artificial person. Whether or not, having regard to the language used in article 5, a corporation can be called a citizen and as such entitled to the rights guaranteed under article 19, it is quite clear that the corporation is protected by article 31, for that article protects every \"person\" which expression certainly includes an artificial person.\n\nThe contention of the petitioner is that the Ordinance and the Act have infringed his fundamental right to property as a shareholder in the said company. Article 31, like article 19( I) (f), is concerned with \" property \".\n\nBoth the articles are in the same chapter and deal with fundamental rights.\n\nTherefore, it is reasonable to say that the word\" property\" must be given the same meaning in construing those two articles. What, then, is the meaning of the word \" property\"? It may mean either the bundle of rights which the owner has over or in respect of a thing, tangible or intangible, or it may mean the thing itself over or in respect of which the owner may exercise those rights. It is quite clear that the Ordinance or the Act has not deprived the shareholder of his share itself.\n\nThe share still belongs to the shareholder.\n\nHe is still entitled to the dividend that may be declared. He can deal with or dispose of the share as he pleases.\n\nThe learned Attorney-General contends that even if the other meaning of the word \"property\" is adopted, the shareholder has not been deprived of his \" property\" understood in that sense, that is to say he has not been deprived of the entire bundle of rights which put together constitute his \"property\". According to him the\" property\" of the shareholder, besides and apart from his right to elect directors, to pass resolutions giving directions to the directors and to present a winding up petition, consists in his right to participate\n\n- ...... , ..•\n\nin the dividends declared on the profits made by the working of the company and, in case of winding up, to participate in the surplus that may be left after meeting the winding up expenses and paying the creditors.\n\nThose last mentioned rights, he points out, have not been touched at all and the shareholder can yet deal with or dispose of his shares as he pleases and is still entitled to dividends if and when declared. Therefore, concludes the learned Attorney-General, the shareholder cannot complain that he has been deprived of his \"property\", for the totality of his rights have not been taken away. The argument thus formulated appears to me to be somewhat too wide, for it will then permit the legislature to authorise the State to acquire or take possession, without any compensation, of almost the entire rights of the owner leaving to him only a few subsidiary rights.\n\nThis result could not, in my opinion, have been intended by our Constitution.\n\nAs said by Rich J. in the Minister for State for the Army\n\nv. Datziel (1) while dealing with section 31 (XXXI) of the Australian Constitution-\n\n\" Property, in relation to land, is a bundle of rights exercisable with respect to the land. The tenant of an unencumbered estate in fee simple in possession has the largest possible bundle. But there is nothing in the placitum to suggest that the legislature was intended to be at liberty to free itself from the restrictive provisions of the placitum by taking care to seize something short of the whole bundle owned by the person whom it is expropriating.\"\n\nThe learned Judge then concluded as follows at p. 286:-\n\n\"lt would, in my opinion, be wholly inconsistent with the language of the placitum to hold that whilst preventing the legislature from authorising the acquisition of a citizen's full title except upon just terms, it leaves it open to the legislature to seize possession and enjoy the full fruits of possession indefinitely, on any terms it chooses or upon no terms at all.\"·\n\n11). (1943-194,41 68 c.r •. R. 261.\n\nOhiraajitlal Ohowdkuri\n\nThe Union of India and\n\nOtherJJ,\n\nDas J.\n\nChiranjiUal Cf!owdhuri\n\nThe Union of India and\n\nOthers.\n\nDasJ.\n\nIn my judgment the question whether the Ordinance or the Act has deprived the shareholder of his \"property\" must depend, for its answer, on whether it has taken away the substantial bulk of the rights constituting his \"property\". In other words, if the rights taken away by the Ordinance or the Act are such as would render the rights left untouched illusory and practically valueless, then there can be no question that in effect and substance the \"property\" of the shareholder has been taken away by the Ordinance or the Act.\n\nJudged by this test can it be said that the right to dispose of the share and the right to receive dividend, if any, or to participate in the surplus in the case of winding up that have been left to the shareholder are illusory or practically valueless, because the right to control the management by directors elected by him, the right to pass resolutions giving directions to the directors and the right to present a winding up petition have, for the time being, been suspended? I think not.\n\nThe right still possessed by the shareholder are the most impor. tant of the rights constituting his \"property\", although certain privileges incidental to the ownership have been put in abeyance for the time being. It is, in my opinion, impossible to say that the Ordinance or the Act has deprived the shareholder of his '' property \" in the sense in which that word is used in article 19 (1) (f) and article 31. The curtailment of the incidental privileges, namely, the right to elect directQrs, to pass resolutions and to apply for winding up may well be supported as a reasonable restraint on the exercise and enjoyment of the shareholder's right of property imposed in the interests of the general public under article 19 (5), namely, to secure the supply of an essential commodity and to prevent unemployment.\n\nLearned counsel for the petitioner, however, urges that the Ordinance and the Act have infringed the shareholder's right to property in that he has been deprived of his valuable right to elect directors, to give directions by passing resolutions and, in case of apprehension of loss, to present a petition for the winding -\n\nS.C.R.\n\nSUPREME COURT RE!'ORTS 923\n\nup of the company. These rights, it is urged, are by themselves \" pwperty\" and it is of this \" property \" that the shareholder is said to have been deprived by the State under a law which does not provide for payment of compensation and which is, as such, an infraction of the shareholder's fundamental right to property under article 31 (2).\n\nTwo questions arise on this argument. Are these rights \" property\" within the meaning of the two articles I have mentioned?\n\nThese rights, as already stated, are, no doubt, privileges incidental to the ownership of the share which itself is property, but it cannot, in my opinion, be said that these rights, by themselves, and apart from the share are\" property\" within the meaning of those articles, for those articles only regard that as \"property\" which can by itself be acquired, disposed of or taken possession of. The right to vote for the election of directors, the right to pass resolutions and the right to present a petition for winding up are personal rights flowing from the ownership of the share and cannot by themselves and apart from the share be acquired. or disposed of or taken possession of as contemplated by those articles.\n\nThe second question is, assuming that these rights are by themselves \"property\", what is the effect of the Ordinance and the Act on such \"property\". It is nobody's case that the Ordinance or the Act has authorised any acquisition by the State of this \"property\" of the shareholder or that there has in fact been any such acquisition. l The only question then is whether this \"property\" of the shareholder, meaning thereby only the ngh ts mentioned above, has been taken possession of by the State. It will be noticed that by the Ordinance or the Act these particular rights of the shareholder have not been entirely taken away, for he can still exercise these rights subject of course, to the sanction of the Government. Assuming, however, that the fetters placed on tuese rights are tantamount to the taking away of the rights altogetl1er, there is nothing to indicate that the Ordinance or the Act has, after taking away the rights from the shareholder,\n\n!950\n\nChiranjitlal\n\nChowdhuri v.\n\nThe Union of India and\n\nOthers.\n\nDasJ,\n\nOhiranjitlai Ghowdhuri\n\nThe Union of India and\n\nOthera.\n\nDas J.\n\nvested them in the State or in any other person named by it so as to enable the State or any other person to exercise those rights of the shareholder. The Government undoubtedly appoints directors under the Act, but such appointment is made in exercise of the the powers vested in the Government by the Ordinance or the Act and not in exercise of the shareholder's right. As already indicated, entry 43 in the Union List authorises Parliament to make laws with respect, amongst other things, to the regulation of trading corporations.\n\nThere was, therefore, nothing to prevent Parliament from amending the Companies Act or from passing a new law regulating the management of the company by providing that the directors, instead of being elected by the shareholders, should be appointed by the Government. The new Jaw has undoubtedly cut down the existing rights of the shareholder and thereby deprived the shareholder of his unfettered right to appoint directors or to pass resolutions giving directions or to present a winding up petition. Such deprivation, however, has not vested the rights in the Government or its nominee. What has happened to the rights of the shareholder is that such rights have been temporarily destroyed or kept in abeyance. The result, therefore, has been that although the share holder has been for the time being deprived of his \"property\", assuming these rights to be \"property\", such \"property\" has not been acquired or taken possession of by the Government. If this be the result brought about by the Ordinance and the Act, do they offend against the fundamental rights guaranteed by article 31 ? Article 31 (1) formulates the fundamental right in a negative form prohibiting the deprivation of property except by authority of law. It implies that a person may be deprived of his property by authority of law. Article 31 (2) prohibits the acquisition or taking possession of property for a public purpose under any Jaw, unless such law provides for payment of compensation. It is suggested that clauses\n\n(1) and (2) of article 31 deal with the same topic, namely, compulsory acquisition or taking possession\n\nof property, clause (2) being only an elaboration of clause (1). There appear to me to be two objections to this suggestion. If that were the correct view, then clause (1) ; must be held to be wholly reduudant and clause (2), by itself, would have been sufficient. In the next place, such a view would exclude deprivation of property otherwise than by acquisition or taking of possession. One can conceive of circumstances where the State may have to deprive a person of his property without acquiring or taking possession of the same.\n\nFor example, in any emergency, in order to prevent a fire spreading, the authorities may have to demolish an intervening building. This deprivation of property is supported in the United States of America as an exercise of \" police power\". This deprivation of property is different from acq llisition or taking of possession of property which goes by the name of \" eminent domain \" in the American Law. The construction suggested implies that our Constitution has dealt with only the law of \"eminent domain \", but has not provided for deprivation of property in exercise of' 'police powers\". I am not prepared to adopt such construction, for I do not feel pressed to do so by the language used in article 31. On the contrary, the language of clause ( 1) of article 31 is wider than that of clause (2), for deprivation of property may well be brought about otherwise than by acquiring or taking possession of it.\n\nI think clause (_ 1) enunciates the general principle that no person shall be deprived of his property except by authority of law, which, put in a positive form, implies that a person may be deprived of his property, provided he is so deprived by authority of law.\n\nNo question of compensation arises under clause (1).\n\nThe effect of clause (2) is that only certain kinds of deprivation of property, namely those brought about by acquisition or taking possession of it, will not be permissible under any law, unless such law provides for payment of compensation. If the deprivation of property is brought about by means other than acquisition or taking possession of it, no compensation is required, provided that such deprivation is by\n\nChiranjitlal GhowdhurS\n\nThe Uniott of\n\nIndia and\n\nOthera,\n\nDa.oJ.\n\nChiran.iitlal\n\nChowdhuri\n\nTh~ Union of\n\nIndiaand\n\nOthers.\n\nDas J.\n\nauthority of law.\n\nIn this case, as already stated, although the shareholder has been deprived of certain rights, such deprivation has been by authority of law passed by a competent legislative authority. This deprivation having been brought about otherwise than by acquisition or taking possession of such rights, no question of compensation can arise and, therefore, there can be no question of the infraction of fundamental rights under article 31 (2). It is clear, therefore, that so far as the shareholder is concerned there has been no infringement of his fundamental rights under article 19 (lJ (f) or article 31, and the shareholder cannot question the constitutionality of the Ordinance or the Act on this ground.\n\nAs regards the company it is contended that the Ordinance and the Act by empowering the State to dismiss the managing agent, to discharge the directors elected by the shareholders and to appoint new directors have in effect authorised the State to take possession of the undertaking and assets of the company through the new directors appointed by it without paying any compensation and, therefore, such law is repugnant to article 31 (2) of our Constitution. It is, however, urged by the learned Attorney-General that the mills and all other assets now in the possession and custody of the new directors who are only servants or agents of the said company are, in the eye of the law, in the possession and custody of the company and have not really been taken possession of by the State. This argument, however, overlooks the fact that in order that the possession of the servant or agent may be juridically regarded as the possession of the master or principal, the servant or agent must be obedient to, and amenable to the directions of, the master or principal. If the master or principal has no hand in the appointment of the servant or agent or has no control over him or has no power to dismiss or discharge him, as in this case, the possession of such servant or agent can hardly, in law, be regarded as the possession of the company(l).\n\nIn this view of the\n\n\\11 81:Jt:1 E.lemeutil ofL<1.w by Markby, 6th Editioo, Pa.ra. 071, p, 192.\n\nmatter there is great force in the argument that the property of the company has been taken possession of by the State through directors who have been appointed by the State in exercise oi the powers conferred by the Ordinance and the Act and who are under the direction and control of the State and this has been done without payment of any compensation. The appropriate legislative authority was no doubt induced to enact this law, because, as the preamble to the Ordinance stated, on account of mismanagement and neglect, a situation had arisen in the affairs of the company which had prejudicially affected the production of an essential commodity and had caused serious unemployment amongst a certain section of the com. ruunity, but, as stated by Holmes]. in Pennsylvania\n\nCoal Company v. Mahon('), \"A strong public desire to improve the public condition is not enough to warrant achieving the desire by a shorter cut than the constitutional way of paying for the change.\" Here, therefore, it may well be argued that the property of the company having been taken possession of by the\n\nState in exercise of powers conferred by a law which does not provide for payment of any compensation, the fundamental right of the company has, in the eye of the law, been infringed.\n\nIf the fundamental right of the company has been infringed, at all, who can complain about such infringement ? Prima f acie the company would be the proper person to come forward in vindication of its own rights.\n\nIt is said that the directors having been dismissed, the company cannot act.\n\nThis, however, is a misapprehension, for if the Act be void on account of its being unconstitutional, the directors appointed by the shareholders have never in law been discharged and are still in the eye of the law the directors of the company, and there was nothing to prevent them from taking proceedings in the name of the company at their own risk as to costs. Seeing that the directors have not come forward to make the application on behalf of the company and in its name the question arises whether\n\n(!) l60 u, s. 393 •\n\nOhiranjitlal Chowdhuri\n\nThe Union of\n\nTtid1a and\n\nOthers.\n\nDas J.\n\nan individual shareholder can complain. It is well settled in the United States that no one but those Ohiranjit!al whose rights are directly affected by a law can raise Chowdhuri\n\nv. the question of the constitutionality of that law.\n\nTho Union of Thus in McCabe v.\n\nAtchison(') which arose out India and of a suit filed by five Negros against five Railway Others, Companies to restrain them from making any distinction\n\nDas J, in service on account of race pursuant to an Oklahoma Act known as \"The Separate Coach Law,\" in upholding the dismissal of the suit Hughes ]. observed :-\n\n\" It is an elementary principle that in order to justify the granting of this extraordinary relief, the complainants' need of it and the absence of an adequate remedy at law must clearly appear.\n\nThe complaint cannot succeed because someone else may be hurt.\n\nNor does it make any difference that other persons who may be injured are persons of the same race or (occupation. It is the fact, clearly established, of \\ injury to the complainant - not to others -which\n\nUustifies judicial interference.\"\n\nIn that case there was no allegation that anyone of the plaintiffs had ever travelled on anyone of the rail roads or had requested any accommodation in any of the sleeping cars or that such request was refused.\n\nThe same principle was laid down in ] effrey M anuf acturing Company v. Blagg('), Hendrick v. Maryland(') and Newark Natural Gas and Fuel Company\n\nv. The City of Newark('). In each of these cases the\n\nCourt declined to permit the person raising the ques- ) tion of constitutionality to do so on the ground that his ')rights were not directly affected by the law or Ordinance \\.in question. On the other hand, in Truax v. Raich(') and in Buchanan v. W arley(6) the Court allowed the plea because in both the cases the person raising it was directly affected.\n\nIn the first of the two last mentioned cases an Arizona Act of 1914 requiring employers employing more than five workers to employ not less than eighty per cent. native born citizens was\n\n(1) 235 U.S. In!.\n\n(2) 235 U.S. 571. 13! 23.5 us. 610.\n\n(4) 241 U.S. 403.\n\n15) ng U.S. ~3. \\6) 245 u.s. 60.\n\nv--\n\n1950 challenged by an alien who had been employed as a cook in a restaurant. That statute made a violation f h A b 1 h bl Th f Ohi,.anjitlaZ o t e ct y an emp ayer pums a e. e act that Chowdhuri the employment was at will or that the employer and v. not the employee was subject to prosecution did not The Union of prevent the employee from raising the question of Ind;• and constitutionality because the statute, if enforced, would Others. compel the employer to discharge the employee and, therefore, the employee was directly affected by the statute. In the second of the two last mentioned cases a city Ordinance prevented the occupation of a plot by a coloured person in a block where a majority of the residences were occupied by white persons. A white man sold his property in such a block to a Negro under a contract which provided that the purchaser should not be required to accept a deed unless he would have a right, under the laws of the city, to occupy the same as a residence. The vendor sued for specific performance and contended that the Ordinance was unconstitutional. Although the alleged denial of constitutional rights involved only the rights of coloured persons and the vendor was a white person yet it was held that the vendor was directly affected, because the\n\nCourts below, in view of the Ordinance, declined to enforce his contract and thereby directly affected his right to sell his property. It is, therefore, clear that ...... the constitutional validity of a law can be challenged only by a person whose interest is directly affected by the law.\n\nThe question then arises whether the infringement of the company's rights so directly affects its sha; holders as to entitle any of its shareholders to question the constitutional validity of the law infringing the company's rights. The question has been answered in the negative by the Supreme Court of the United States in Darnell v. The State of Indiana(').\n\nIn that case the owner of a share in a Tennessee corporation was not allowed to complain that an Indiana law discriminated against Tennessee corporations in that it did not make any allowance, as it did in the case of Indiana corporations, where the corporation\n\nIll 226 U.S. 388. 119\n\nDas J.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndi11 and\n\nOthrs.\n\nDas J.\n\nhad property taxed within the State. This is in accord with the well established legal principle that a corporation is a legal entity capa.ble of holding property and of suing or being sued and the corporators are not, in contemplation of law, the owners of the assets of the corporation. In all the cases referred to above the question of constitutionality was raised in connection with the equal protection clause in the Fourteenth Amendment of the American Federal Constitution. If such be the requirements of law in connection with the equal protection clause which corresponds to our article 14, it appears to me to follow that only a person who is the owner of the property can raise the question of constitutionality under article 31 of a law by which he is so deprived of his property. If direct interest is necessary to permit a person to raise the question of constitutionality under article 14, a direct interest in the property will, I apprehend, be necessary to entitle a person to challenge a law which is said to infringe the right to that property under article 31.\n\nIn my opinion, although a shareholder may, in a sense, be interested to see that the company of which he is a shareholder is not deprived of its property he cannot, as held in Darnell v. Indiana('), be heard to complain, in his own name and on his own behalf, of the infringement of the fundamental right to property of the company, for, in law, his own right to property has not been infringed as he is not the owner of the company's properties. An interest in the company owning an undertaking is not an interest in the undertaking itself.\n\nThe interest in the company which owns an undertaking is the \"property\" of the shareholder under article 31 (2), but the undertaking is the property of the company and not that of the shareholder and the latter cannot be said to have a direct interest in the property of the company. This is the inevitable result of attributin~ a legal personality to a corporation.\n\nThe proceedings for a writ in the nature of a writ of habeas corpus appear to be somewhat different for the\n\n(1) ~26 U.S. 888,\n\nrules governing those proceedings permit, besides the person imprisoned, any person, provided he is not an utter stranger, but is at least a friend or relation of the imprisoned person, to apply for that particular writ.\n\nBut that special rule does not appear to be applicable to the other writs which re_q_uirt;_a direct and tangible interest in the app!icanl_ to port his application.\n\nThis must also be the case where the applicantseeks to raise the question of the constitutionality of a law under articles 14, 19 and 31.\n\nFor the reasons set out above the present petitioner cannot raise the question of constitutionality of the impugned law under article 31.\n\nHe cannot complain of any infringement of his own rights as a shareholder, because his \" property \" has not been acquired or taken possession of by the State although he has been deprived of his right to vote and to present a winding up petition by authority of law. Nor can he complain of an infringement of the company's right to property because he is not, in the eye of law, the owner ot the property in question and accordingly not directly interested in it. In certain exceptional cases where the company's property is injured by outsiders, a shareholder may, under the English law, after making all endeavours to induce the persons in charge of the affairs of the company to take steps, file a suit on behalf of himself and other shareholders for redressing the wrong done to the company, but that principle does not apply here for this is nut a suit, nor has lt been shown that any attempt was made by the petitioner to induce the old directors to take steps nor do these proceedings purport to have been taken by the petitioner on behalf of himself and the other shareholders of the.company.\n\nThe only other ground on which the Ordinance and the Act have been challenged is that they infringe the the fundamental rights guaranteed by article 14 of the Constitution. 'Equal protection of the laws\", as observed by Day J. in Southern Railway Company v.\n\nGreene ll), \"means subjection to equal laws, applying\n\n\\1) 216 U.S. 400.\n\nCh.iranjitlal\n\nCliowdhuri\n\nTkiJ Union of\n\nIr.dia and\n\nOthers.\n\nDasJ.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndia and\n\nOthrs.\n\nDasJ.\n\nalike to all in the same situation\". The inhibition of the article that the State shall not deny to any person equality before the law or the equal protection of the laws was designed to protect all persons against legislative discrimination amongst equals and to prevent any person or class of persons from being singled out as a special subject for discriminating and hostile legislation. It does not, however, mean that every law must have universal application, for all persons are not, by nature, attainment or circumstances, in the same position. The varying needs of different classes of persons often require separate treatment and it is, therefore, established by judicial decisions that the equal protection clause of the Fourteenth Amendment of the American Constitution does not take away from the State the power to classify persons for legislative purposes. This classification may be on different bases. It may be geographical or according to objects or occupations or the like. If law deals equally with all of a certain well-defined class it is not obnoxious and it is not open to the charge of a denial of equal protection on the ground that it has no application to other per, ons, for the class for whom the law has been made is different from other persons and, therefore, there is no discrimination amongst equals. It is plain that every classification is in some degree likely to produce some inequality, but mere production of inequality is not by itself enough.\n\nThe inequality produced, in order to encounter the challenge of the Constitution, must be \" actually and palpably unreasonable and arbitrary.\" Said Day J. in Southern Railway Company v. Greene(') :-\"While reasonable classification is permitted, without doing violence to the equal protection of the laws, such classification must be based upon some real and substantial distinction, bearing a reasonable and just relation to the things in respect to which such classification is imposed; and the classification cannot be arbitrarily made without any substantial basis.\n\nArbitrary selection, it has been said, cannot be justified by calling it classification\". Quite conceivably there may be a law\n\nrelating to a single individual if it is made apparent that, on account of some special reasons applicable only to him and inapplicable to anyone else, that single individual is a class by himself. In lvfiddleton v. Texas Power and Light Company(1) it was pointed out that there was a strong pre sum ption that a legislature understood and correctly appreciated the needs of its own people, that its laws were directed to problems made manifest by experience and that the discriminations were based upon adequate grounds. It was also pointed out in that case that the burden was upon him who attacked a law for unconstitutionality.\n\nIn Lindsley v. Natural Carbonic Gas Company(') it was also said that one who assailed the classification made in a law must carry the burden of showing that it did not rest upon any reasonable basis but was essentially arbitrary.\n\nIf there is a classification, the Court will not hold it invalid merely because the law might have been extended to other persons who in some respects might resemble the class for which the law was made, for the legislature is the best judge of the needs of the particular classes and to estimate the degree of evil so as to adjust its legislation according to the exigency found to exist. If, however, there is, on the face of the statute, no classification at all or none on the basis of any apparent difference specially peculiar to any particular indivi- C.ual or class and not applicable to any other person or class of persons and yet the law hits only the particular individual or class it is nothing but an attempt to arbitrarily single out an individual or class for discriminating and hostile legislation. The presumption in favour of the legislature cannot in such a case be legitimately stretched so as to throw the impossible onus on the complainant to prove affirmatively that there are other individuals or class of individuals who also possess the precise amount of the identical qualities which are attributed to him so as to form a class with him. As pointed out by Brewer Jin the Gulf, Colorado and Santa Fe' Railway v. W. H. Ellis ('), while good faith\n\n(I/ 249 U.S. 152.\n\n(2) 220 U.S. 61.\n\n131 165 U.S .. 1501\n\nOhiranjitlal Chowdkuri\n\nTh~ Union of\n\nIndia and\n\nOthers.\n\nDaaJ.\n\nChiranjitla.l Chowdhuri\n\nThe Union of\n\nIndill and\n\nOthrs,\n\nDa3.T.\n\nand a knowledge of existing conditions on the part of a legislature was to be presumed, yet to carry that presumption to the extent 0f always holding that there must be some undisclosed and unknown reason for subjecting certain individuals or corporations to hostile and discriminating legislation was to make the protecting clause a mere rope of sand, in no manner restraining State action.\n\nThe complaint of the petitioner on this head is formulated in paragraph 8 (iii) of the petition as follows :-\"The Ordinance denied to the company and its shareholders equality before the law and equal protection of the laws and was thus a violation of article 14 of the Constitution.\n\nThe power to make regulations relating to trading corporations or the control or production of industries was a power which consistently with article 14 could be exercised only generally or with reference to a class and not with reference to a single company or to shareholders of a single company.\" The Act is also challenged on the same ground in paragraph ::1 of the petition.\n\nThe learned Attorney-General contends that the petitioner as an individual shareholder cannot complain of discrimination against the company. It will be noticed that it is not a case of a shareholder complaining only about discrimination against the company or fighting the battle of the company but it is a case of a shareholder complaining of discrimination against himself and other shareholders of this company. It is true that there is no complaint of discrimination inter se the shareholders of this company but the complaint is that the shareholders of this company, taken as a unit, have been discriminated vis-a-vis the shareholders of other companies. Therefore, the question as to the right of the shareholder to question the validity of a law infringing the right of the company does not aiise.\n\nHere the shareholder is complaining of the infringement of his own rights and if such infringement can be established I see no reason why the shareholder cannot come within article 32 to vindicate his own rights.\n\nThe fact that these proceedings have been taken by\n\n1950 one single shareholder holding only one single fully paid up share does not appear to me to make any the Ohiranjitlal least difference in principle. If this petitioner has, by Chowdhuri the Ordinance or the Act, been di, criminated against and denied equal protection of the law, his fundamental right has been infringed and his right to approach this Court for redress cannot be made dependent on the readiness or willingness of other shareholders whose rights have also been infringed to join him in these p:oceedings or of the company to take substantive proceedings. To take an example, if any law discrimiv.\n\nThe Union of\n\nIndia'and\n\nOth,, ra,\n\nnates against a class, say the Punjabis, any Punjabi may question the constitutionality uf the law, without joining the whole Punjabi community or without acting on behalf of all the Punjabis. To insist on his doing so will be to put a fetter on his fundamental right under article 02 which the Constitution has not imposed on him. Similarly, if any Jaw deprives a particular shareholder or the shareholders of a particular company of the ordina.ry rights of shareholders under the general law for reasons not particularly and specially applicable to him or them but also applicable to other shareholders of other companies, such law surely offends against article 14 and any one so denied the equal protection of law may legitimately complain of the infringement of his fundamental right and is entitled as of right to approach this Court under article 32 to enforce his own fundamental right under article 14, irrespective of whether any other person joins him or not.\n\nTo the charge of denial of equal protection of the laws the respondents in the affidavit of Sri Vithal N. Chandavarkar filed in opposition to the petition make the following reply :-\"With reference to paragraph 6 of the petition, I deny the soundness of the submissions that on or from the 26th January, 1950, when the Constitution of India came into force the said Ordinance became void under article 13(1) of the Constitution or that the provisions thereof were inconsistent with the provisions of Part III of the said Constitution or for any of the other grounds mentioned in paragraph 8\n\nDas J.\n\nL \"\"\n\nOhiranjitlal\n\nOkowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.\n\nDas J.\n\nof the said petition.\" In the whole of the affidavit in opposition there is no suggestion as to why the pro. mulgation of the Ordinance or the passing of the Act was considered necessary at all or on what principle or basis either of them was founded.\n\nNo attempt has been made in the affidavit to show that the Ordinance or the Act was based upon any principle of classification at all or even that the particular company and its shareholders possess any special qualities which are not to be found in other companies and their shareholders and which, therefore, render this particular company and its shareholders a class by themselves.\n\nNeither the affidavit in opposition nor the learned Attorney-General in course of his arguments referred to the statement of the objects and reasons for introducing the bill which was eventually enacted or the Parliamentary debates as showing the reason why and under what circumstances this Jaw was made and, therefore, apart from the question of their admissibility in evidence, the petitioner has had no opportunity to deal with or rebut them and the same cannot be used against him.\n\nThe learned Attorney-General takes his stand on the presumption that the law was founded on a valid basis of classification, that its discriminations were based upon adequate grounds and that the law was passed for safeguarding the needs of the people and that, therefore, the onus was upon the petitioner to allege and prove that the classification which he challenged did not rest upon any reasonable basis but was essentially arbitrary. I have already said that if on the face of the law there is no classification at all or, at any rate, none on the basis of any apparent difference specially peculiar to the individual or class affected by the law, it is only an instance of an arbitrary selection of an individual or class for discriminating and hostile legislation and, therefore, no presumption can, in such circumstances, arise at all. Assuming, however, that even in such a case the onus is thrown on the complainant, there can be nothing to prevent hiin from proving, if l)e can, from the text of the law itself, that\n\nit is \"actually and palpably unreasonable and arbitrary\" and thereby discharging the initial onus.\n\nThe Act is intituled an Act to make special provision for the proper management and administration of the Sholapur Spinning and Weaving Company, Limited.\" There is not even a single preamble alleging that the company was being mismanaged at all or that any special reason existed which made it expedient to enact this law. The Act, on its face, does not purport to make any classification at all or to specify any special vice to which this particular company and its shareholders are subject and which is not to be found in other companies and their shareholders so as to justify any special treatment. Therefore, this Act, ex Jacie, is nothing but an arbitrary selection of this particular company and its shareholders for discriminating and hostile treatment and read by itself is palpably an infringement of Article 14 of the Constitution.\n\nThe learned Attorney-General promptly takes us to the preambles to the Ordinance which has been replaced by the Act and suggests that the Act is based on the same considerations on which the Ordinance was promulgated. Assuming that it is right and permissible to refer to and utilise the preambles, do they alter the situation? The preambles were as follows:-\n\n\"Whereas on account of mismanagement and neglect a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company, Limited, which has prejudicially affected the production of an essential commodity and has caused serious unemployment amongst a certain section of the community ; And whereas an emergency has ariseri which renders it necessary to make special provision for the proper management and administration of the aforesaid company;-\" The above preambles quite clearly indicate that the justification of the Ordinance rested on mismanagement and neglect producing certain results therein specified. It will be noticed that apart from . these preambles there is no material whatever before us establishing or even swgesting that this company p.nd its shareliolders have in fact been guilty of any\n\nOhiranjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.\n\nDas J,\n\nChiranjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.\n\nDas J.\n\nmismanagement or neglect. Be that as it may, the only reason put forward for the promulgation of the Ordinance was mismanagement resulting in falling off of production and in producing unemployment.\n\nI do not find it necessary to say that mismanagement and neglect in conducting the affairs of corn panies can never be a criterion or basis of classification for legislative purposes.\n\nI shall assume that it is permissible to make a law whereby all delinquent companies and their shareholders may be brought to book and all companies mismanaging their affairs and the shareholders of such companies may, in the interest of the general public, be deprived of their right to manage the affairs of their companies. Such a classification made by a law would bear a reasonable relation to the conduct of all delinquent companies and shareholders and may, therefore, create no inequality, for the delinquent companies and their shareholders from a separate class and cannot claim equality of treatment with good companies and their shareholders who are their betters.\n\nBut a distinction cannot be made between the delinquent companies inter se or between shareholders of equal! y delinquent companies and one set cannot be punished for its delinquency while another set is permitted to continue, or become, in like manner, delinquent without any punishment unless there be some other apparent difference in their respective obligations and unless there be some cogent reason why prevention of mismanagement is more imperative in one instance than in the other. To do so will be nothing but an arbitrary selection which can nev.er be justified as a permissible classiffication.\n\nI am not saying that this particular company and its shareholders may not be guilty of mismanagement and negligence which has brought about serious fall in production of an essential commodity and also considerable unemployment. But if mismanagement affecting production and resulting in unemployment is to be the basis of a classification for making a law for preventing mismanagement and securing production and employment, the law must embrace within its\n\nambit all companies which now are or may hereafter become subject to the vice. This basis of classification, by its very nature, cannot be exclusively applicable to any particular company and its shareholders but is capable of wider application and, therefore, the Jaw founded on that basis must also be wide enough so as to be capable of being applicable to whoever may happen at any time to fall within that classification.\n\nMismanagement affecting production can never be reserved as a special attribute peculiar to a particular company or the shareholders of a particular company.\n\nIt it were permissible for the legislature to single out an individual or class and to punish him or it for some delinquency which may equally be found in other individuals or classes and to lea v.e out the other mdividuals or classes from the ambit of the law the prohibition of the denial of equal protection of the laws would only be a meaningless and barren form of words.\n\nThe argument that the presumption being in favour of the legislature, the onus is on the petitioner to show there are other individuals or companies equally guilty of mismanagement prejudicially affecting the production of an essential commodity and causing serious unemployment amongst a certain section of the community does not, in such circumstances, arise, for the simple reason that here there has been no classification at all and, in any case, the basis of classification by its very nature is much wider and cannot, in it .application, be limited only to this company and its shareholders and, that being so, there is no reason to throw on the petitioner the almost impossible burden of proving that there are other companies which are in fact precisely and in all particulars similarly situated. In any event, the petitioner, in my opinion, may well claim to have discharged the onus of showing that this company and its shareholders have been singled out for discriminating treatment by showing that the Act, on the face of it, has adopted a basis of classification which, by its very nature, cannot be exclusively applicable to this company and its shareholders but which may be equally applicable to other companies\n\nChiranj1tlal\n\nChowdhuri v.\n\nThe U1iion of India and\n\nOthers.\n\nDasJ.\n\nOhiranjitzaZ\n\nOhowdhuri\n\nThe Union of\n\nIndia and\n\nOthtJTS.\n\nDasJ.\n\nDec. 14,\n\nand their shareholders and has penalised this particular company and its shareholders, leaving out other companies and their shareholders who may be equally guilty of the alleged vice of mismanagement and neglect of the type referred to in the preambles. In my opinion the legislation in question infringes the fundamental rights of the petitioner and offends against article 14 of our Constitution.\n\nThe result, therefore, is that this petition ought to succeed and the petitioner should have an order m terms of prayer (3) of the petition with costs.\n\nPetition dismissed .\n\nAgent for the.petitioner: M. S. K. Aiyengar .\n\nAgent for opposite party Nos. 1 & 2: P.A. Mehta.\n\nAgent for opposite party Nos. 3 to 5 and 7 to 10:\n\nRajinder Narain.\n\nJ ANARDAN REDDY AND OTHERS\n\nTHE STATE.\n\n[SHRI HARILAL KANIA C.J., SA!YID FAZL ALI,\n\nPATANJALI SASTRI, MUKHERJEA, DAS and\n\nCHANDRASEKHARA AIYAR JJ.J\n\nConstitution of India, Arts. 134, 136, 374(4)-Special leave to appeal-Judgment of Hyderabad High Court passed before !16th Jan.\n\n1950-Application for special leave-1'.faintainability-Pendency of application for leave to appeal to Judicial Committee of Hyikrabad when new constitution came into force, effect of-Scope of Art. 136- \" Any court or tribunal in the territory of India \"-Interpretation of •tatute.-Presumption of prospective operation--Right to appeal.\n\nThe petitioners, who v.ere convicted and sentenced to death by a special tribunal in the Hyderabad State, preferred appeals to the High Court of Hyderabad which were dismissed, and they applied to the.High Court on the 21st Jan., 1950, for leave to appeal to the Judicial Committee of Hyderabad against the judgments of the High Court. On the 26th Jan., 1950, the Constitution of India came into force and under the Constitution, Hyderabad became a part of India, the Judicial Committee of Hyderabad ceased to exist, and all appeals and other proceedings pending before that", "total_entities": 416, "entities": [{"text": "CHIRANJIT LAL CHOWDHURI", "label": "PETITIONER", "start_char": 31, "end_char": 54, "source": "metadata", "metadata": {"canonical_name": "Ch.iranjitlal\n\nCliowdhuri", "offset_not_found": false}}, {"text": "THE UNION OF INDIA AND OTHERS", "label": "RESPONDENT", "start_char": 56, "end_char": 85, "source": "metadata", "metadata": {"canonical_name": "THE UNION OF INDIA AND OTHERS", "offset_not_found": false}}, {"text": "SHRI HARILAL KANIA, C.J.", "label": "JUDGE", "start_char": 89, "end_char": 113, "source": "metadata", "metadata": {"canonical_name": "HARILAL JEKISUNDAS KANIA*", "offset_not_found": false}}, {"text": "SAIYID FAZL ALI", "label": "JUDGE", "start_char": 115, "end_char": 130, "source": 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"statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 2030, "end_char": 2043, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 2239, "end_char": 2246, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Central Government", "label": "ORG", "start_char": 2388, "end_char": 2406, "source": "ner", "metadata": {"in_sentence": "that the Act was void and for enforcement of his fundamental rights by a writ of mandamus against the Central Government, the Government of Bombay and the directors res training them from exercising any powers under the Act and from interfering with the management of the company, on the ground that the Act was not within the Legislative competence\n\nDeo."}}, {"text": "Government of Bombay", "label": "ORG", "start_char": 2412, "end_char": 2432, "source": "ner", "metadata": {"in_sentence": "that the Act was void and for enforcement of his fundamental rights by a writ of mandamus against the Central Government, the Government of Bombay and the directors res training them from exercising any powers under the Act and from interfering with the management of the company, on the ground that the Act was not within the Legislative competence\n\nDeo."}}, {"text": "ChiranjitlaZ\n\nChowdhuri", "label": "RESPONDENT", "start_char": 2646, "end_char": 2669, "source": "ner", "metadata": {"in_sentence": "ChiranjitlaZ\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOther a.\n\nof the Parliament and infringed his fundamental rights goaran teed by Arts.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Union of\n\nIndia", "label": "RESPONDENT", "start_char": 2675, "end_char": 2690, "source": "ner", "metadata": {"in_sentence": "ChiranjitlaZ\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOther a.\n\nof the Parliament and infringed his fundamental rights goaran teed by Arts.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "Arts. 19", "label": "PROVISION", "start_char": 2776, "end_char": 2784, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 13", "label": "PROVISION", "start_char": 2856, "end_char": 2863, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "KANIA", "label": "JUDGE", "start_char": 2936, "end_char": 2941, "source": "ner", "metadata": {"in_sentence": "Held per KANIA C.J., FAZL ALI, MUKHERJEA and DAS JJ.-\n\n(i) that the impugned Act did not infringe any fundamental right of the petitioner under Art.", "canonical_name": "KANIA"}}, {"text": "FAZL ALI", "label": "JUDGE", "start_char": 2948, "end_char": 2956, "source": "ner", "metadata": {"in_sentence": "Held per KANIA C.J., FAZL ALI, MUKHERJEA and DAS JJ.-\n\n(i) that the impugned Act did not infringe any fundamental right of the petitioner under Art.", "canonical_name": "FAZL ALI"}}, {"text": "MUKHERJEA", "label": "JUDGE", "start_char": 2958, "end_char": 2967, "source": "ner", "metadata": {"in_sentence": "Held per KANIA C.J., FAZL ALI, MUKHERJEA and DAS JJ.-\n\n(i) that the impugned Act did not infringe any fundamental right of the petitioner under Art.", "canonical_name": "MUKI!ERJEA"}}, {"text": "Art. 31", "label": "PROVISION", "start_char": 3071, "end_char": 3078, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 31", "label": "PROVISION", "start_char": 3263, "end_char": 3270, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 3869, "end_char": 3876, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 4036, "end_char": 4043, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 4202, "end_char": 4209, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 19", "label": "PROVISION", "start_char": 4502, "end_char": 4509, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "MUKI!ERJEA", "label": "JUDGE", "start_char": 4553, "end_char": 4563, "source": "ner", "metadata": {"in_sentence": "Held .also per KANIA C.J., FAZL ALI, and MUKI!ERJEA JJ. (", "canonical_name": "MUKI!ERJEA"}}, {"text": "Art. 14", "label": "PROVISION", "start_char": 5288, "end_char": 5295, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 32", "label": "PROVISION", "start_char": 5362, "end_char": 5369, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "PATANJALI SASTRIJ.-As", "label": "JUDGE", "start_char": 5376, "end_char": 5397, "source": "ner", "metadata": {"in_sentence": "Per PATANJALI SASTRIJ.-As the impugned Act plainly denied to the shareholders of this particular company the protections of the law relating to incorporated Joint Stock Companies as embodied in the Indian Comp•nies Act, it wu.s prima facie within\n\nthe inhibition of Art.", "canonical_name": "PATANJALI SASTRIJ.-As"}}, {"text": "Art. 14", "label": "PROVISION", "start_char": 5638, "end_char": 5645, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 14", "label": "PROVISION", "start_char": 6339, "end_char": 6346, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 14", "label": "PROVISION", "start_char": 6909, "end_char": 6916, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Art. 14", "label": "PROVISION", "start_char": 7135, "end_char": 7142, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Union of\n\nInd", "label": "RESPONDENT", "start_char": 8809, "end_char": 8822, "source": "ner", "metadata": {"in_sentence": "In any event, the petitioner,\n\nChiranjitfal\n\nChawdhurt\n\nThe Union of\n\nIndi;'itlal Chow, lhu.ri\n\nThe U•ii'ln of\n\nIndia a-id\n\nOthers."}}, {"text": "Sastrt", "label": "JUDGE", "start_char": 40699, "end_char": 40705, "source": "ner", "metadata": {"in_sentence": "Patri.njali\n\nSastrt J.\n\ntake over the control and management of the company and its properties and effects by appointing their own Directors and to delegate all or any of their powers to the Provincial Government.", "canonical_name": "Sastri"}}, {"text": "10th April,\n\n1950", "label": "DATE", "start_char": 41124, "end_char": 41141, "source": "ner", "metadata": {"in_sentence": "Subsequently, on 10th April,\n\n1950, the Ordinance was repealed and was replaced by an Act of Parliament containing similar provisions, namely the Sholapur Spinning and Weaving Company\n\n(Emergency Provisions) Act (No."}}, {"text": "articles 14, 19 and 31", "label": "PROVISION", "start_char": 41555, "end_char": 41577, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Union of India", "label": "RESPONDENT", "start_char": 41836, "end_char": 41850, "source": "ner", "metadata": {"in_sentence": "He accordingly seeks relief by way of injunction and mandamus against the Union of India and the State of Bombay impleaded as respondents 1 and 2 respective.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "State of Bombay", "label": "RESPONDENT", "start_char": 41859, "end_char": 41874, "source": "ner", "metadata": {"in_sentence": "He accordingly seeks relief by way of injunction and mandamus against the Union of India and the State of Bombay impleaded as respondents 1 and 2 respective."}}, {"text": "Sholapur Spinning and Weaving Company", "label": "ORG", "start_char": 42432, "end_char": 42469, "source": "ner", "metadata": {"in_sentence": "The preamble to the repealed Ordinance stated that \"on account of mismanagement and neglect a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company, Limit."}}, {"text": "Section 3", "label": "PROVISION", "start_char": 42854, "end_char": 42863, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 4", "label": "PROVISION", "start_char": 43039, "end_char": 43048, "source": "regex", "metadata": {"statute": null}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 43565, "end_char": 43578, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Section 5", "label": "PROVISION", "start_char": 43644, "end_char": 43653, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 12", "label": "PROVISION", "start_char": 44049, "end_char": 44059, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 13", "label": "PROVISION", "start_char": 44222, "end_char": 44232, "source": "regex", "metadata": {"statute": null}}, {"text": "Act", "label": "STATUTE", "start_char": 44298, "end_char": 44301, "source": "regex", "metadata": {}}, {"text": "Notwithstanding anything contained in the Companies Act", "label": "STATUTE", "start_char": 44307, "end_char": 44362, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 45303, "end_char": 45316, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 3", "label": "PROVISION", "start_char": 45442, "end_char": 45451, "source": "regex", "metadata": {"statute": null}}, {"text": "section 14", "label": "PROVISION", "start_char": 45457, "end_char": 45467, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 16", "label": "PROVISION", "start_char": 45667, "end_char": 45677, "source": "regex", "metadata": {"statute": null}}, {"text": "section 17", "label": "PROVISION", "start_char": 45813, "end_char": 45823, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of Bum", "label": "ORG", "start_char": 45894, "end_char": 45911, "source": "ner", "metadata": {"in_sentence": "Section 16 provides for delegation of powers to the Government of Bombay to be exercised subject to the directions of the Central Government, and section 17 bars suits or other proceedings against the Central Government or the Government of Bum bay or any director \"for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act.\""}}, {"text": "article 14", "label": "PROVISION", "start_char": 47090, "end_char": 47100, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 47337, "end_char": 47350, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Section 21", "label": "PROVISION", "start_char": 47450, "end_char": 47460, "source": "regex", "metadata": {"statute": null}}, {"text": "section 83B", "label": "PROVISION", "start_char": 47874, "end_char": 47885, "source": "regex", "metadata": {"statute": null}}, {"text": "sections 162 and 203", "label": "PROVISION", "start_char": 48246, "end_char": 48266, "source": "regex", "metadata": {"statute": null}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 48592, "end_char": 48605, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 48836, "end_char": 48849, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "article 14", "label": "PROVISION", "start_char": 48893, "end_char": 48903, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 48934, "end_char": 48944, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Parliament", "label": "ORG", "start_char": 49265, "end_char": 49275, "source": "ner", "metadata": {"in_sentence": "In the present case, Parliament,\n\nOhiranJ1tlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers."}}, {"text": "Patanjali Sastri", "label": "RESPONDENT", "start_char": 49337, "end_char": 49353, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri J,\n\nOhiranfit1al\n\nChowdhuri\nThe Union of\n\nIndia and\n\nOther a,\n\nPala~.iali Sastri J,", "canonical_name": "PATANJALI SASTRIJ.-As"}}, {"text": "Pala~.iali Sastri", "label": "JUDGE", "start_char": 49420, "end_char": 49437, "source": "ner", "metadata": {"in_sentence": "Patanjali Sastri J,\n\nOhiranfit1al\n\nChowdhuri\nThe Union of\n\nIndia and\n\nOther a,\n\nPala~.iali Sastri J,"}}, {"text": "article 14", "label": "PROVISION", "start_char": 52863, "end_char": 52873, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Britain", "label": "GPE", "start_char": 53100, "end_char": 53107, "source": "ner", "metadata": {"in_sentence": "Legislation based upon mismar.agement or other misconduct as the differentia and made applicable to a specified individual or corporate body is not far removed from the notorious parliamentary procedure formerly employed in Britain of punishing individual delinquents by passing bills of attainder, and should not, I think, receive judicial encouragement."}}, {"text": "Ohiranjitlal", "label": "JUDGE", "start_char": 53756, "end_char": 53768, "source": "ner", "metadata": {"in_sentence": "Whilst all reasonable presumption must undoubtedly be made in support of the constitutional v.alidity of a law made by a competent legislature, the circumstances of the present case would seem, .to my\n\nOhiranjitlal\n\nChowdhuri'\n\nThs Union of\n\nIndia and\n\nOthers.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "article 32", "label": "PROVISION", "start_char": 56140, "end_char": 56150, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 56594, "end_char": 56604, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 56688, "end_char": 56698, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 56989, "end_char": 57002, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "article 32", "label": "PROVISION", "start_char": 57256, "end_char": 57266, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "articles 19 and 31", "label": "PROVISION", "start_char": 57364, "end_char": 57382, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chiranjitlai\n\nChowdhuri", "label": "RESPONDENT", "start_char": 57453, "end_char": 57476, "source": "ner", "metadata": {"in_sentence": "'Chiranjitlai\n\nChowdhuri\n\n•• The Unio11 of Ind1a and\n\nOther I.\n\nPalattjali\n\nSastr' J.\n\nMuKHERJEA ].-This is an application presented by Mukhorj,.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Mukhorj", "label": "JUDGE", "start_char": 57588, "end_char": 57595, "source": "ner", "metadata": {"in_sentence": "'Chiranjitlai\n\nChowdhuri\n\n•• The Unio11 of Ind1a and\n\nOther I.\n\nPalattjali\n\nSastr' J.\n\nMuKHERJEA ].-This is an application presented by Mukhorj,.", "canonical_name": "MUKI!ERJEA"}}, {"text": "Chiranjitlal Chowdhuri", "label": "JUDGE", "start_char": 57605, "end_char": 57627, "source": "ner", "metadata": {"in_sentence": "J. one Chiranjitlal Chowdhuri, a shareholder of the Sholapur Spinning and \\Veaving Company Limited (hereinafter referred to as the company), praying for a writ of mandamus and certain other reliefs under article 32 of the Constitution.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Sholapur Spinning and \\Veaving Company Limited", "label": "ORG", "start_char": 57650, "end_char": 57696, "source": "ner", "metadata": {"in_sentence": "J. one Chiranjitlal Chowdhuri, a shareholder of the Sholapur Spinning and \\Veaving Company Limited (hereinafter referred to as the company), praying for a writ of mandamus and certain other reliefs under article 32 of the Constitution."}}, {"text": "article 32", "label": "PROVISION", "start_char": 57802, "end_char": 57812, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 57954, "end_char": 57967, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Baroda Bank Limited", "label": "ORG", "start_char": 58757, "end_char": 58776, "source": "ner", "metadata": {"in_sentence": "The petitioner states in his petition that he holds in his own right three ordinary shares and eighty preference shares in the company, though according to his own admission the preference shares do not stand in his name but have been registered in the name of the Baroda Bank Limited with which the shares are pledged."}}, {"text": "July 27, 1949", "label": "DATE", "start_char": 58947, "end_char": 58960, "source": "ner", "metadata": {"in_sentence": "It appears that on July 27, 1949, the directors of the company gave a notice to the workers that the mills would be closed, and pursuant to that notice, the mills were in fact closed on the 27th of August following."}}, {"text": "27th of August following", "label": "DATE", "start_char": 59118, "end_char": 59142, "source": "ner", "metadata": {"in_sentence": "It appears that on July 27, 1949, the directors of the company gave a notice to the workers that the mills would be closed, and pursuant to that notice, the mills were in fact closed on the 27th of August following."}}, {"text": "January 9, 1950", "label": "DATE", "start_char": 59148, "end_char": 59163, "source": "ner", "metadata": {"in_sentence": "On January 9, 1950, the Governor-General of lnd1a promulgated an Ordinance which purported to make special provisions for the proper management and administration of the company."}}, {"text": "Sholapur Spinning and Weaving Company Limited", "label": "ORG", "start_char": 59463, "end_char": 59508, "source": "ner", "metadata": {"in_sentence": "It was stated in the preamble to the Ordinance that \"on account of mismanagement and neglect, a situation has arisen in the affairs of the Sholapur Spinning and Weaving Company Limited which has prejudicially affected the production of an essential commodity and has caused serious unemployment amongst a certain section of the community \", and it was on account of the emergency arising from this situation that the promulgation of the Ordinance was necessary."}}, {"text": "section 3", "label": "PROVISION", "start_char": 59910, "end_char": 59919, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 4", "label": "PROVISION", "start_char": 60194, "end_char": 60203, "source": "regex", "metadata": {"statute": null}}, {"text": "section 3", "label": "PROVISION", "start_char": 60257, "end_char": 60266, "source": "regex", "metadata": {"statute": null}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 60652, "end_char": 60665, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 5", "label": "PROVISION", "start_char": 60814, "end_char": 60823, "source": "regex", "metadata": {"statute": null}}, {"text": "Section 10", "label": "PROVISION", "start_char": 61131, "end_char": 61141, "source": "regex", "metadata": {"statute": null}}, {"text": "section 12", "label": "PROVISION", "start_char": 61304, "end_char": 61314, "source": "regex", "metadata": {"statute": null}}, {"text": "section 15", "label": "PROVISION", "start_char": 62083, "end_char": 62093, "source": "regex", "metadata": {"statute": null}}, {"text": "Central\n\nGovernment", "label": "ORG", "start_char": 62111, "end_char": 62130, "source": "ner", "metadata": {"in_sentence": "The only other material provision is that contained in section 15, under which the Central\n\nGovernment may, by no.lilied order, direct that all or any of the powers exercisable by it under this Ordin\n\nance may be exercised by the Government of Bombay."}}, {"text": "section 15", "label": "PROVISION", "start_char": 62318, "end_char": 62328, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of Bombay", "label": "RESPONDENT", "start_char": 62704, "end_char": 62724, "source": "ner", "metadata": {"in_sentence": "Mukherjea J.\n\nOn th.e next day, the Government of Bombay appofnted respondents 3 to 7 as directors of the company in terms of section 3 of the Ordinance."}}, {"text": "section 3", "label": "PROVISION", "start_char": 62794, "end_char": 62803, "source": "regex", "metadata": {"statute": null}}, {"text": "7th of April, 1950", "label": "DATE", "start_char": 63017, "end_char": 63035, "source": "ner", "metadata": {"in_sentence": "On the 7th of April, 1950, the Ordinance was repealed and an Act was passed by the Parliament of India, known as the Sholapur Spinning and Weaving Company (Emergency Provisions) Act which re-enacted almost in identical terms all the provisions of the Ordinance and provided further that all actions taken and orders made under the Ordinance shall be deemed to have been taken or made under the corresponding provisions of the Act."}}, {"text": "Parliament of India", "label": "ORG", "start_char": 63093, "end_char": 63112, "source": "ner", "metadata": {"in_sentence": "On the 7th of April, 1950, the Ordinance was repealed and an Act was passed by the Parliament of India, known as the Sholapur Spinning and Weaving Company (Emergency Provisions) Act which re-enacted almost in identical terms all the provisions of the Ordinance and provided further that all actions taken and orders made under the Ordinance shall be deemed to have been taken or made under the corresponding provisions of the Act."}}, {"text": "Both the Ordinance and the Act", "label": "STATUTE", "start_char": 63796, "end_char": 63826, "source": "regex", "metadata": {}}, {"text": "article 31", "label": "PROVISION", "start_char": 64363, "end_char": 64373, "source": "regex", "metadata": {"linked_statute_text": "Both the Ordinance and the Act", "statute": "Both the Ordinance and the Act"}}, {"text": "article 19", "label": "PROVISION", "start_char": 64598, "end_char": 64608, "source": "regex", "metadata": {"linked_statute_text": "Both the Ordinance and the Act", "statute": "Both the Ordinance and the Act"}}, {"text": "article 31", "label": "PROVISION", "start_char": 64900, "end_char": 64910, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 65114, "end_char": 65124, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chirari.jitlal Chowdhuri", "label": "PETITIONER", "start_char": 66815, "end_char": 66839, "source": "ner", "metadata": {"in_sentence": "Clause (2) of the article lays down that the\n\n11~\n\n195\"\n\nChirari.jitlal Chowdhuri\n\nTho Union of\n\nIndill and\n\nOther a.\n\nMukherjea J.\n\n1900 Supreme Court shall have the power to issue directions or orders or _writs including writs in the nature of CMranjitlal h 'b Chowdhuri habeas corpus, mandamus, pro i ition, quo warranto\n\nThe Union of\n\nIndia and\n\nOthtJrs.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Mukherjeo", "label": "JUDGE", "start_char": 67281, "end_char": 67290, "source": "ner", "metadata": {"in_sentence": "Thus anybody who complains of infraction of any of\n\nMukherjeo J. the fundamental rights guaranteed by the Constitution is at liberty to move the Supreme Court for the enforcement of such rights and this court has been given the power to make orders and issue directions or writs similar in nature to the prerogative writs of English law as might be considered appropriate in particular cases.", "canonical_name": "MUKI!ERJEA"}}, {"text": "article 32", "label": "PROVISION", "start_char": 69157, "end_char": 69167, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 32", "label": "PROVISION", "start_char": 69247, "end_char": 69257, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 70050, "end_char": 70060, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 71483, "end_char": 71493, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 71890, "end_char": 71900, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Joshi", "label": "OTHER_PERSON", "start_char": 72061, "end_char": 72066, "source": "ner", "metadata": {"in_sentence": "As regards the third prayer, it has been contended by Mr. Joshi, who appears for one of the respondents, that having regard to the nature of the case and the allegations made by the petitioner himself, the prayer for a writ of mandamus, in the form in which it has been made, is not tenable."}}, {"text": "article 32", "label": "PROVISION", "start_char": 73239, "end_char": 73249, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 74443, "end_char": 74453, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 74497, "end_char": 74507, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Mukheriea", "label": "JUDGE", "start_char": 75659, "end_char": 75668, "source": "ner", "metadata": {"in_sentence": "Mukheriea J.\n\nc:itizens under its protection may be taken or its use controlled for public benefit irrespective of the wishes of the owner.", "canonical_name": "MUKI!ERJEA"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 75799, "end_char": 75809, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 76293, "end_char": 76303, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 77018, "end_char": 77028, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 77446, "end_char": 77456, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Ckiranjitlal", "label": "PETITIONER", "start_char": 77918, "end_char": 77930, "source": "ner", "metadata": {"in_sentence": "Ckiranjitlal It is argued by the learned Attorney-General that the Chowdhuri\n\nv taking of possession as contemplated by article 31 (2) means the taking of possession of the entire bundle of The Union of rights which the previous holder had, by excluding India and him from every part or item thereof.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Chowdhuri", "label": "JUDGE", "start_char": 77985, "end_char": 77994, "source": "ner", "metadata": {"in_sentence": "Ckiranjitlal It is argued by the learned Attorney-General that the Chowdhuri\n\nv taking of possession as contemplated by article 31 (2) means the taking of possession of the entire bundle of The Union of rights which the previous holder had, by excluding India and him from every part or item thereof.", "canonical_name": "Chowdhuri"}}, {"text": "article 31", "label": "PROVISION", "start_char": 78038, "end_char": 78048, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 78454, "end_char": 78464, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 79382, "end_char": 79392, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chari", "label": "OTHER_PERSON", "start_char": 79403, "end_char": 79408, "source": "ner", "metadata": {"in_sentence": "Mr. Chari, on the other hand, has contended on behalf of the petitioner that after the management is taken over by the statutory directors, it cannot be said \\ that the company still retains possession or control over its property and assets."}}, {"text": "Ohiranjit!al Ohowdhuri", "label": "PETITIONER", "start_char": 80113, "end_char": 80135, "source": "ner", "metadata": {"in_sentence": "Possession of an\n\n1950\"\n\nOhiranjit!al Ohowdhuri\n\nThe Union of Ind1a and\n\nOthera.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Union of Ind1a", "label": "RESPONDENT", "start_char": 80141, "end_char": 80155, "source": "ner", "metadata": {"in_sentence": "Possession of an\n\n1950\"\n\nOhiranjit!al Ohowdhuri\n\nThe Union of Ind1a and\n\nOthera.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "article 31", "label": "PROVISION", "start_char": 81003, "end_char": 81013, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 81225, "end_char": 81238, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Chiranjitlal Ohowdhurt", "label": "JUDGE", "start_char": 84434, "end_char": 84456, "source": "ner", "metadata": {"in_sentence": "\\¥hether the restrictions are such as would bring the case within\n\n11~\n\nChiranjitlal Ohowdhurt\n\nThe Union of\n\nIndia and\n\nOther&.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Mukherjea", "label": "RESPONDENT", "start_char": 84492, "end_char": 84501, "source": "ner", "metadata": {"in_sentence": "Mukherjea .J.\n\n19~0\n\nChiranjitla!", "canonical_name": "MUKI!ERJEA"}}, {"text": "Chiranjitla!\n\nGhowdhuri", "label": "RESPONDENT", "start_char": 84513, "end_char": 84536, "source": "ner", "metadata": {"in_sentence": "Mukherjea .J.\n\n19~0\n\nChiranjitla!", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "article 19", "label": "PROVISION", "start_char": 84602, "end_char": 84612, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 85102, "end_char": 85112, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Setalvad", "label": "OTHER_PERSON", "start_char": 85269, "end_char": 85277, "source": "ner", "metadata": {"in_sentence": "According to Mr. Setalvad, if a shareholder is not deprived of the entirety of his rights which he is entitled to exercise by reason of his being the owner or holder of the share and some rights, however insignificant they might be, still remain in him, there cannot be any dispossession as contemplated by article 31(2)."}}, {"text": "article 31(2)", "label": "PROVISION", "start_char": 85559, "end_char": 85572, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Rich", "label": "JUDGE", "start_char": 85932, "end_char": 85936, "source": "ner", "metadata": {"in_sentence": "It is relevant to refer in this connection to an observation made by Rich J. in a Full Bench decision of the High Court of Australia,(') where the question arose as to whether the taking of exclusive possession of a property for an indefinite period of time by the Commonwealth of Australia under Reg."}}, {"text": "High Court of Australia", "label": "COURT", "start_char": 85972, "end_char": 85995, "source": "ner", "metadata": {"in_sentence": "It is relevant to refer in this connection to an observation made by Rich J. in a Full Bench decision of the High Court of Australia,(') where the question arose as to whether the taking of exclusive possession of a property for an indefinite period of time by the Commonwealth of Australia under Reg."}}, {"text": "section 51", "label": "PROVISION", "start_char": 86275, "end_char": 86285, "source": "regex", "metadata": {"statute": null}}, {"text": "article 31", "label": "PROVISION", "start_char": 87292, "end_char": 87302, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 87758, "end_char": 87768, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 88605, "end_char": 88615, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chiranjtllai ChowdhurS", "label": "JUDGE", "start_char": 88958, "end_char": 88980, "source": "ner", "metadata": {"in_sentence": "If the word \"deprived\" as used in clause (1) connotes the idea of 'destruction or confiscation of property, obviously no such thing has happened in the present\n\nChiranjtllai ChowdhurS\n\nv, The Union of\n\nIndia and\n\nOthera.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": ".Mukherjea", "label": "JUDGE", "start_char": 89019, "end_char": 89029, "source": "ner", "metadata": {"in_sentence": ".Mukherjea J.\n\nOhiraajitlal Chowdhuri\n\nThe Union of India and\n\nOthers.", "canonical_name": "MUKI!ERJEA"}}, {"text": "article 31", "label": "PROVISION", "start_char": 89144, "end_char": 89154, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 89849, "end_char": 89859, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19(1)(f)", "label": "PROVISION", "start_char": 90101, "end_char": 90117, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 19(1)", "label": "PROVISION", "start_char": 90140, "end_char": 90153, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 19( 1)", "label": "PROVISION", "start_char": 90464, "end_char": 90478, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19(l)(f)", "label": "PROVISION", "start_char": 91231, "end_char": 91247, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 93025, "end_char": 93035, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 93241, "end_char": 93251, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Uniori of\n\nIndia", "label": "RESPONDENT", "start_char": 93490, "end_char": 93506, "source": "ner", "metadata": {"in_sentence": "In this view, the other point does not arise for consideration, but I may state here that even if it is conceded for argument's sake that the\n\nChiranjitlal Ohowdhuri\n\nThe Uniori of\n\nIndia and\n\nOthers,\n\nA1.ukherja.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "Chiran.jitlal Chawdhur", "label": "RESPONDENT", "start_char": 93537, "end_char": 93559, "source": "ner", "metadata": {"in_sentence": "J.\n\nChiran.jitlal Chawdhur'\n\nThe Union of\n\nIndia and\n\nOther ii\n\nMukherj('a J,\n\ndisabilities imposed by the impugned legislation amount to restrictions on proprietory right, they may very well be supported as reasonable restraints imposed in the interests of the general public, viz.,", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "article 19", "label": "PROVISION", "start_char": 94011, "end_char": 94021, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 94217, "end_char": 94227, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 94405, "end_char": 94415, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 14", "label": "PROVISION", "start_char": 94438, "end_char": 94448, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 14", "label": "PROVISION", "start_char": 95002, "end_char": 95012, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Supreme\n\nCourt", "label": "COURT", "start_char": 95416, "end_char": 95430, "source": "ner", "metadata": {"in_sentence": "We have been referred in course of the arguments on this point by the learned Counsel on both sides to quite a number of cases decided by the American Supreme\n\nCourt, where questions turning upon the construction of the 'equal protection' clause in the American Consti."}}, {"text": "article 14", "label": "PROVISION", "start_char": 95885, "end_char": 95895, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 96386, "end_char": 96399, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Supreme Court of America", "label": "COURT", "start_char": 97036, "end_char": 97060, "source": "ner", "metadata": {"in_sentence": "As has been said by the Supreme Court of America, \"equal protection of laws is a pledge of the protection of equal laws('),\" and this means \"subjection to equal laws applying alike to all in the same situation(').\""}}, {"text": "S. 4Q", "label": "PROVISION", "start_char": 97782, "end_char": 97787, "source": "regex", "metadata": {"statute": null}}, {"text": "Un.ion of\n\nIndia", "label": "RESPONDENT", "start_char": 97899, "end_char": 97915, "source": "ner", "metadata": {"in_sentence": "Ohir11.njitlal Chowdhuri\n\n•• Th~ Union of India and\n\nOthers,\n\nMukherja J.\n\nChiran}itlal Chowdhuri\n\nTh6 Un.ion of\n\nIndia anci\n\nOther a.\n\nMukhrjea J,\n\nunconstitutional if it is not discriminatory in its character(').", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "Mukhrjea", "label": "JUDGE", "start_char": 97932, "end_char": 97940, "source": "ner", "metadata": {"in_sentence": "Ohir11.njitlal Chowdhuri\n\n•• Th~ Union of India and\n\nOthers,\n\nMukherja J.\n\nChiran}itlal Chowdhuri\n\nTh6 Un.ion of\n\nIndia anci\n\nOther a.\n\nMukhrjea J,\n\nunconstitutional if it is not discriminatory in its character(').", "canonical_name": "MUKI!ERJEA"}}, {"text": "article 14", "label": "PROVISION", "start_char": 98908, "end_char": 98918, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Indian", "label": "GPE", "start_char": 99080, "end_char": 99086, "source": "ner", "metadata": {"in_sentence": "Obviously the Act purports to make provisions which are of a drastic character and against the general law of the land as laid down in the Indian Companies Act, in regard to the administration and management of the affairs of one company in Indian territory."}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 99087, "end_char": 99100, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "S. 40J", "label": "PROVISION", "start_char": 100050, "end_char": 100056, "source": "regex", "metadata": {"statute": null}}, {"text": "S. 1", "label": "PROVISION", "start_char": 102107, "end_char": 102111, "source": "regex", "metadata": {"statute": null}}, {"text": "Ohiranjttlal\n\nChowdhuri", "label": "RESPONDENT", "start_char": 102133, "end_char": 102156, "source": "ner", "metadata": {"in_sentence": "7\n\nOhiranjttlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOther a.\n\nMukherjea J,\n\nChiranjttlal\n\nCkowdhuri\n\nThe Union of\n\nItidia and\n\nOthera.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Union of\n\nItidia", "label": "RESPONDENT", "start_char": 102236, "end_char": 102252, "source": "ner", "metadata": {"in_sentence": "7\n\nOhiranjttlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOther a.\n\nMukherjea J,\n\nChiranjttlal\n\nCkowdhuri\n\nThe Union of\n\nItidia and\n\nOthera.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "Mukhdrfea", "label": "JUDGE", "start_char": 102267, "end_char": 102276, "source": "ner", "metadata": {"in_sentence": "Mukhdrfea J.\n\nlean in favour of constitutionality and should support the legislation if it is possible to do so on any reasonable ground, and it is for the party who attacks the val.idity of the legislation to place all materials before the court which would go to show that the selection is arbitrary and unsupportable.", "canonical_name": "MUKI!ERJEA"}}, {"text": "Fazl Ali", "label": "JUDGE", "start_char": 103289, "end_char": 103297, "source": "ner", "metadata": {"in_sentence": "If we are to take judicial notice of the existence of similar other badly managed companies, we must take notice also of the facts which appear in the parliamentary proceedings in connection with this legislation which have been referred to by my learned brother, Fazl Ali J. in his judgment and which would go to establish that the facts connected with this corporation are indeed exceptional and the discrimination that has been made can be supported on just and reasonable grounds.", "canonical_name": "FAZL ALI"}}, {"text": "S. 291", "label": "PROVISION", "start_char": 104465, "end_char": 104471, "source": "regex", "metadata": {"statute": null}}, {"text": "Chiran.jitlal Chowdhuri", "label": "JUDGE", "start_char": 106536, "end_char": 106559, "source": "ner", "metadata": {"in_sentence": "DAS J.-As I have arrived at a conclusion different from that reached by the majority of this Court, I\n\nChiran.jitlal Chowdhuri ..\n\nThe Union of\n\nIndia and\n\nOther a.\n\n,.Wukherjea.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": ".Wukherjea", "label": "JUDGE", "start_char": 106600, "end_char": 106610, "source": "ner", "metadata": {"in_sentence": "DAS J.-As I have arrived at a conclusion different from that reached by the majority of this Court, I\n\nChiran.jitlal Chowdhuri ..\n\nThe Union of\n\nIndia and\n\nOther a.\n\n,.Wukherjea.", "canonical_name": "MUKI!ERJEA"}}, {"text": "section 42", "label": "PROVISION", "start_char": 106890, "end_char": 106900, "source": "regex", "metadata": {"statute": null}}, {"text": "Government of India Act, 1935", "label": "STATUTE", "start_char": 106908, "end_char": 106937, "source": "regex", "metadata": {}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 107916, "end_char": 107929, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "section 15", "label": "PROVISION", "start_char": 108058, "end_char": 108068, "source": "regex", "metadata": {"statute": null}}, {"text": "January IO, 1950", "label": "DATE", "start_char": 108127, "end_char": 108143, "source": "ner", "metadata": {"in_sentence": "On January IO, 1950, the Government of Bombay appointed Respondents Nos."}}, {"text": "March 2, 1950", "label": "DATE", "start_char": 108229, "end_char": 108242, "source": "ner", "metadata": {"in_sentence": "On March 2, 1950, Respondent No."}}, {"text": "January 26, 1950", "label": "DATE", "start_char": 108464, "end_char": 108480, "source": "ner", "metadata": {"in_sentence": "In the meantime the new Constitution had come into force on January 26, 1950."}}, {"text": "February 7, 1950", "label": "DATE", "start_char": 108486, "end_char": 108502, "source": "ner", "metadata": {"in_sentence": "On February 7, 1950, the new directors passed a resolution sanctioning a call for H.s."}}, {"text": "High Court of\n\nS.C.R.", "label": "COURT", "start_char": 108660, "end_char": 108681, "source": "ner", "metadata": {"in_sentence": "438 of 1950 was filed in the High Court of\n\nS.C.R.\n\nSUPREME COURT REPOH.TS 917\n\nBombay by one Dwarkadas Shrinivas against the new directors challenging the validity of the Ordinance and the right of the new directors to make the call."}}, {"text": "SUPREME COURT REPOH.TS 917", "label": "COURT", "start_char": 108683, "end_char": 108709, "source": "ner", "metadata": {"in_sentence": "438 of 1950 was filed in the High Court of\n\nS.C.R.\n\nSUPREME COURT REPOH.TS 917\n\nBombay by one Dwarkadas Shrinivas against the new directors challenging the validity of the Ordinance and the right of the new directors to make the call."}}, {"text": "Bhagwati", "label": "JUDGE", "start_char": 108867, "end_char": 108875, "source": "ner", "metadata": {"in_sentence": "Bhagwati J. who tried the suit held that the Ordinance was valid and dismissed the suit."}}, {"text": "Chagla C.J.", "label": "JUDGE", "start_char": 109060, "end_char": 109071, "source": "ner", "metadata": {"in_sentence": "48 of 1950) was taken from that decision which was dismissed by a Division Bench (Chagla C.J. and Gajendragadkar J.) on August 29, 1950."}}, {"text": "Gajendragadkar", "label": "JUDGE", "start_char": 109076, "end_char": 109090, "source": "ner", "metadata": {"in_sentence": "48 of 1950) was taken from that decision which was dismissed by a Division Bench (Chagla C.J. and Gajendragadkar J.) on August 29, 1950."}}, {"text": "August 29, 1950", "label": "DATE", "start_char": 109098, "end_char": 109113, "source": "ner", "metadata": {"in_sentence": "48 of 1950) was taken from that decision which was dismissed by a Division Bench (Chagla C.J. and Gajendragadkar J.) on August 29, 1950."}}, {"text": "April 7, 1950", "label": "DATE", "start_char": 109135, "end_char": 109148, "source": "ner", "metadata": {"in_sentence": "In the meantime, on April 7, 1950, the Ordinance was replaced by Act No."}}, {"text": "May 29, 1950", "label": "DATE", "start_char": 109329, "end_char": 109341, "source": "ner", "metadata": {"in_sentence": "On May 29, 1950, the present petition was filed by one Chiranjitlal Chowdhuri."}}, {"text": "Chiranjitlal Chowdhuri", "label": "PETITIONER", "start_char": 109381, "end_char": 109403, "source": "ner", "metadata": {"in_sentence": "On May 29, 1950, the present petition was filed by one Chiranjitlal Chowdhuri.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Bank of Baroda", "label": "ORG", "start_char": 109586, "end_char": 109600, "source": "ner", "metadata": {"in_sentence": "The preference shares, according to him, stand in the name of the Bank of Baroda to whom they are said to have been pledged."}}, {"text": "Union of India", "label": "ORG", "start_char": 110080, "end_char": 110094, "source": "ner", "metadata": {"in_sentence": "The respondents are the Union of India, the State of Bombay and the new directors besides the company itself."}}, {"text": "State of Bombay", "label": "ORG", "start_char": 110100, "end_char": 110115, "source": "ner", "metadata": {"in_sentence": "The respondents are the Union of India, the State of Bombay and the new directors besides the company itself."}}, {"text": "Chiranjitlal\n\nChowdhuri", "label": "RESPONDENT", "start_char": 110807, "end_char": 110830, "source": "ner", "metadata": {"in_sentence": "19~0\n\nChiranjitlal\n\nChowdhuri\n\nTha Union of\n\nIndia and\n\nOther&.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Ohiranjitlal", "label": "RESPONDENT", "start_char": 110873, "end_char": 110885, "source": "ner", "metadata": {"in_sentence": "DaaJ.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of India and\n\nOther a.\n\nDas J,\n\nThe validity of the Ordinance and the Act has been challenged before us on the following grounds :-(i) that it was not within the legislative competence-(a) of the Governor-General to promulgate the Ordinance, or (b) of the Parliament to enact the Act, and (ii) that the Ordinance and the Act infringe the fundamental rights of the shareholders as well as those of the said company and are, therefore, void and inoperative under article 13.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "article 13", "label": "PROVISION", "start_char": 111369, "end_char": 111379, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 111452, "end_char": 111462, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 111896, "end_char": 111906, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 32", "label": "PROVISION", "start_char": 111989, "end_char": 111999, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "List I of the Seventh Schedule to the Government of India Act, 1935", "label": "STATUTE", "start_char": 112507, "end_char": 112574, "source": "regex", "metadata": {}}, {"text": "Seventh Schedule", "label": "PROVISION", "start_char": 112640, "end_char": 112656, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "Sections 83A and 83", "label": "PROVISION", "start_char": 112784, "end_char": 112803, "source": "regex", "metadata": {"linked_statute_text": "List I of the Seventh Schedule to the Government of India Act, 1935", "statute": "List I of the Seventh Schedule to the Government of India Act, 1935"}}, {"text": "Companies Act", "label": "STATUTE", "start_char": 112820, "end_char": 112833, "source": "gazetteer", "metadata": {"confirmed_by_regex": false, "gazetteer_score": 1.0}}, {"text": "Article 19(1)(f)", "label": "PROVISION", "start_char": 113745, "end_char": 113761, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 113799, "end_char": 113809, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Gapalan", "label": "OTHER_PERSON", "start_char": 113814, "end_char": 113821, "source": "ner", "metadata": {"in_sentence": "In Gapalan' s case (I) I pointed out that the rights conferred by article 19 (1) (a) to (e) and (g) would be available to the citizen until he was, under article 21, .deprived of his life or personal liberty accordin~ to procedure established by law and that the right to property guaranteed by article 19 (1) (f) would like."}}, {"text": "article 19", "label": "PROVISION", "start_char": 113877, "end_char": 113887, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 21", "label": "PROVISION", "start_char": 113965, "end_char": 113975, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 114106, "end_char": 114116, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 114178, "end_char": 114188, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 114393, "end_char": 114403, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 114499, "end_char": 114509, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 114560, "end_char": 114570, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chirartjitlal\n\nChowdhuri", "label": "RESPONDENT", "start_char": 115059, "end_char": 115083, "source": "ner", "metadata": {"in_sentence": "Chirartjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthera.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 115359, "end_char": 115369, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 5", "label": "PROVISION", "start_char": 115569, "end_char": 115578, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 115670, "end_char": 115680, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 115737, "end_char": 115747, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 116003, "end_char": 116013, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19( I)", "label": "PROVISION", "start_char": 116020, "end_char": 116034, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "section 31", "label": "PROVISION", "start_char": 118414, "end_char": 118424, "source": "regex", "metadata": {"statute": null}}, {"text": "Ohiraajitlal Ohowdkuri", "label": "PETITIONER", "start_char": 119396, "end_char": 119418, "source": "ner", "metadata": {"in_sentence": "Ohiraajitlal Ohowdkuri\n\nThe Union of India and\n\nOtherJJ,\n\nDas J.\n\nChiranjiUal Cf!owdhuri\n\nThe Union of India and\n\nOthers.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Das J.\n\nChiranjiUal", "label": "JUDGE", "start_char": 119454, "end_char": 119473, "source": "ner", "metadata": {"in_sentence": "Ohiraajitlal Ohowdkuri\n\nThe Union of India and\n\nOtherJJ,\n\nDas J.\n\nChiranjiUal Cf!owdhuri\n\nThe Union of India and\n\nOthers."}}, {"text": "article 19", "label": "PROVISION", "start_char": 120928, "end_char": 120938, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution 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"metadata": {"in_sentence": "DasJ,\n\nOhiranjitlai Ghowdhuri\n\nThe Union of India and\n\nOthera.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Parliament from amending the Companies Act", "label": "STATUTE", "start_char": 124591, "end_char": 124633, "source": "regex", "metadata": {"confirmed_by_gazetteer": true}}, {"text": "article 31", "label": "PROVISION", "start_char": 125631, "end_char": 125641, "source": "regex", "metadata": {"linked_statute_text": "Parliament from amending the Companies Act", "statute": "Parliament from amending the Companies Act"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 125644, "end_char": 125654, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Article 31", "label": "PROVISION", "start_char": 125857, "end_char": 125867, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 126066, "end_char": 126076, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 127390, "end_char": 127400, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 127450, "end_char": 127460, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 128918, "end_char": 128928, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 19", "label": "PROVISION", "start_char": 129065, "end_char": 129075, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 129087, "end_char": 129097, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 129626, "end_char": 129636, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "E.lemeutil", "label": "WITNESS", "start_char": 130582, "end_char": 130592, "source": "ner", "metadata": {"in_sentence": "In this view of the\n\n\\11 81:Jt:1 E.lemeutil ofL<1.w by Markby, 6th Editioo, Pa.ra."}}, {"text": "Markby", "label": "OTHER_PERSON", "start_char": 130604, "end_char": 130610, "source": "ner", "metadata": {"in_sentence": "In this view of the\n\n\\11 81:Jt:1 E.lemeutil ofL<1.w by Markby, 6th Editioo, Pa.ra."}}, {"text": "s. 393", "label": "PROVISION", "start_char": 132733, "end_char": 132739, "source": "regex", "metadata": {"statute": null}}, {"text": "Das J.", "label": "RESPONDENT", "start_char": 132802, "end_char": 132808, "source": "ner", "metadata": {"in_sentence": "Das J.\n\nan individual shareholder can complain.", "canonical_name": "DAS JJ."}}, {"text": "Chowdhuri", "label": "JUDGE", "start_char": 132979, "end_char": 132988, "source": "ner", "metadata": {"in_sentence": "It is well settled in the United States that no one but those Ohiranjit!al whose rights are directly affected by a law can raise Chowdhuri\n\nv. the question of the constitutionality of that law.", "canonical_name": "Chowdhuri"}}, {"text": "Hughes", "label": "JUDGE", "start_char": 133370, "end_char": 133376, "source": "ner", "metadata": {"in_sentence": "Tho Union of Thus in McCabe v.\n\nAtchison(') which arose out India and of a suit filed by five Negros against five Railway Others, Companies to restrain them from making any distinction\n\nDas J, in service on account of race pursuant to an Oklahoma Act known as \"The Separate Coach Law,\" in upholding the dismissal of the suit Hughes ].", "canonical_name": "Hughes"}}, {"text": "S. 571", "label": "PROVISION", "start_char": 134883, "end_char": 134889, "source": "regex", "metadata": {"statute": null}}, {"text": "S. 403", "label": "PROVISION", "start_char": 134920, "end_char": 134926, "source": "regex", "metadata": {"statute": null}}, {"text": "s. 60", "label": "PROVISION", "start_char": 134955, "end_char": 134960, "source": "regex", "metadata": {"statute": null}}, {"text": "Supreme Court of the United States", "label": "COURT", "start_char": 136835, "end_char": 136869, "source": "ner", "metadata": {"in_sentence": "The question has been answered in the negative by the Supreme Court of the United States in Darnell v. The State of Indiana(')."}}, {"text": "S. 388", "label": "PROVISION", "start_char": 137183, "end_char": 137189, "source": "regex", "metadata": {"statute": null}}, {"text": "Das J.\n\nOhiranjitlal\n\nOhowdhuri", "label": "JUDGE", "start_char": 137196, "end_char": 137227, "source": "ner", "metadata": {"in_sentence": "119\n\nDas J.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndi11 and\n\nOthrs.", "canonical_name": "Das J.\n\nOhiranjitlal\n\nOhowdhuri"}}, {"text": "Union of\n\nIndi11 and\n\nOthrs.", "label": "RESPONDENT", "start_char": 137233, "end_char": 137261, "source": "ner", "metadata": {"in_sentence": "119\n\nDas J.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndi11 and\n\nOthrs.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "article 14", "label": "PROVISION", "start_char": 137860, "end_char": 137870, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 138001, "end_char": 138011, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 138165, "end_char": 138175, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 138341, "end_char": 138351, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 138994, "end_char": 139004, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "S. 888", "label": "PROVISION", "start_char": 139384, "end_char": 139390, "source": "regex", "metadata": {"statute": null}}, {"text": "articles 14, 19 and 31", "label": "PROVISION", "start_char": 139895, "end_char": 139917, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 31", "label": "PROVISION", "start_char": 140046, "end_char": 140056, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 141302, "end_char": 141312, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "S. 400", "label": "PROVISION", "start_char": 141485, "end_char": 141491, "source": "regex", "metadata": {"statute": null}}, {"text": "Ch.iranjitlal\n\nCliowdhuri", "label": "RESPONDENT", "start_char": 141494, "end_char": 141519, "source": "ner", "metadata": {"in_sentence": "Ch.iranjitlal\n\nCliowdhuri\n\nTkiJ Union of\n\nIr.dia and\n\nOthers.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "DasJ.\n\nOhiranjitlal\n\nOhowdhuri", "label": "RESPONDENT", "start_char": 141557, "end_char": 141587, "source": "ner", "metadata": {"in_sentence": "DasJ.\n\nOhiranjitlal\n\nOhowdhuri\n\nThe Union of\n\nIndia and\n\nOthrs.", "canonical_name": "Das J.\n\nOhiranjitlal\n\nOhowdhuri"}}, {"text": "Day", "label": "JUDGE", "start_char": 143265, "end_char": 143268, "source": "ner", "metadata": {"in_sentence": "Said Day J. in Southern Railway Company v. Greene(') :-\"While reasonable classification is permitted, without doing violence to the equal protection of the laws, such classification must be based upon some real and substantial distinction, bearing a reasonable and just relation to the things in respect to which such classification is imposed; and the classification cannot be arbitrarily made without any substantial basis."}}, {"text": "Brewer", "label": "OTHER_PERSON", "start_char": 145863, "end_char": 145869, "source": "ner", "metadata": {"in_sentence": "As pointed out by Brewer Jin the Gulf, Colorado and Santa Fe' Railway v. W. H. Ellis ('), while good faith\n\n(I/ 249 U.S. 152."}}, {"text": "S. 152", "label": "PROVISION", "start_char": 145963, "end_char": 145969, "source": "regex", "metadata": {"statute": null}}, {"text": "S. 61", "label": "PROVISION", "start_char": 145982, "end_char": 145987, "source": "regex", "metadata": {"statute": null}}, {"text": "Ohiranjitlal Chowdkuri", "label": "PETITIONER", "start_char": 146011, "end_char": 146033, "source": "ner", "metadata": {"in_sentence": "131 165 U.S .. 1501\n\nOhiranjitlal Chowdkuri\n\nTh~ Union of\n\nIndia and\n\nOthers.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Chiranjitla.l Chowdhuri", "label": "RESPONDENT", "start_char": 146076, "end_char": 146099, "source": "ner", "metadata": {"in_sentence": "DaaJ.\n\nChiranjitla.l Chowdhuri\n\nThe Union of\n\nIndill and\n\nOthrs,\n\nDa3.T.\n\nand a knowledge of existing conditions on the part of a legislature was to be presumed, yet to carry that presumption to the extent 0f always holding that there must be some undisclosed and unknown reason for subjecting certain individuals or corporations to hostile and discriminating legislation was to make the protecting clause a mere rope of sand, in no manner restraining State action.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "Union of\n\nIndill", "label": "RESPONDENT", "start_char": 146105, "end_char": 146121, "source": "ner", "metadata": {"in_sentence": "DaaJ.\n\nChiranjitla.l Chowdhuri\n\nThe Union of\n\nIndill and\n\nOthrs,\n\nDa3.T.\n\nand a knowledge of existing conditions on the part of a legislature was to be presumed, yet to carry that presumption to the extent 0f always holding that there must be some undisclosed and unknown reason for subjecting certain individuals or corporations to hostile and discriminating legislation was to make the protecting clause a mere rope of sand, in no manner restraining State action.", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "article 14", "label": "PROVISION", "start_char": 146788, "end_char": 146798, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 146963, "end_char": 146973, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 148183, "end_char": 148193, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Chowdhuri the Ordinance or the Act", "label": "STATUTE", "start_char": 148457, "end_char": 148491, "source": "regex", "metadata": {}}, {"text": "Union of\n\nIndia'and", "label": "RESPONDENT", "start_char": 148899, "end_char": 148918, "source": "ner", "metadata": {"in_sentence": "The Union of\n\nIndia'and\n\nOth,, ra,", "canonical_name": "Union of\n\nIndi11 and\n\nOthrs."}}, {"text": "article 02", "label": "PROVISION", "start_char": 149205, "end_char": 149215, "source": "regex", "metadata": {"linked_statute_text": "Chowdhuri the Ordinance or the Act", "statute": "Chowdhuri the Ordinance or the Act"}}, {"text": "article 14", "label": "PROVISION", "start_char": 149588, "end_char": 149598, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 32", "label": "PROVISION", "start_char": 149777, "end_char": 149787, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "article 14", "label": "PROVISION", "start_char": 149831, "end_char": 149841, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Vithal N. Chandavarkar", "label": "LAWYER", "start_char": 149999, "end_char": 150021, "source": "ner", "metadata": {"in_sentence": "To the charge of denial of equal protection of the laws the respondents in the affidavit of Sri Vithal N. Chandavarkar filed in opposition to the petition make the following reply :-\"With reference to paragraph 6 of the petition, I deny the soundness of the submissions that on or from the 26th January, 1950, when the Constitution of India came into force the said Ordinance became void under article 13(1) of the Constitution or that the provisions thereof were inconsistent with the provisions of Part III of the said Constitution or for any of the other grounds mentioned in paragraph 8\n\nDas J.\n\nL \"\"\n\nOhiranjitlal\n\nOkowdhuri\n\nThe Union of\n\nIndia and\n\nOthers."}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 150222, "end_char": 150243, "source": "regex", "metadata": {}}, {"text": "article 13(1)", "label": "PROVISION", "start_char": 150297, "end_char": 150310, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "No attempt has been made in the affidavit to show that the Ordinance or the Act", "label": "STATUTE", "start_char": 150829, "end_char": 150908, "source": "regex", "metadata": {}}, {"text": "Article 14", "label": "PROVISION", "start_char": 153646, "end_char": 153656, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "Ohiranjitlal\n\nChowdhuri", "label": "RESPONDENT", "start_char": 154862, "end_char": 154885, "source": "ner", "metadata": {"in_sentence": "these preambles there is no material whatever before us establishing or even swgesting that this company p.nd its shareliolders have in fact been guilty of any\n\nOhiranjitlal\n\nChowdhuri\n\nThe Union of\n\nIndia and\n\nOthers.", "canonical_name": "Ch.iranjitlal\n\nCliowdhuri"}}, {"text": "U1iion of India", "label": "RESPONDENT", "start_char": 159353, "end_char": 159368, "source": "ner", "metadata": {"in_sentence": "In any event, the petitioner, in my opinion, may well claim to have discharged the onus of showing that this company and its shareholders have been singled out for discriminating treatment by showing that the Act, on the face of it, has adopted a basis of classification which, by its very nature, cannot be exclusively applicable to this company and its shareholders but which may be equally applicable to other companies\n\nChiranj1tlal\n\nChowdhuri v.\n\nThe U1iion of India and\n\nOthers."}}, {"text": "article 14", "label": "PROVISION", "start_char": 159835, "end_char": 159845, "source": "regex", "metadata": {"linked_statute_text": "the Constitution of India", "statute": "the Constitution of India"}}, {"text": "M. S. K. Aiyengar", "label": "LAWYER", "start_char": 160069, "end_char": 160086, "source": "ner", "metadata": {"in_sentence": "Agent for the.petitioner: M. S. K. Aiyengar ."}}, {"text": "P.A. Mehta", "label": "LAWYER", "start_char": 160127, "end_char": 160137, "source": "ner", "metadata": {"in_sentence": "1 & 2: P.A. Mehta."}}, {"text": "Rajinder Narain", "label": "LAWYER", "start_char": 160191, "end_char": 160206, "source": "ner", "metadata": {"in_sentence": "3 to 5 and 7 to 10:\n\nRajinder Narain."}}, {"text": "ANARDAN REDDY", "label": "JUDGE", "start_char": 160211, "end_char": 160224, "source": "ner", "metadata": {"in_sentence": "J ANARDAN REDDY AND OTHERS\n\nTHE STATE."}}, {"text": "HARILAL KANIA", "label": "JUDGE", "start_char": 160255, "end_char": 160268, "source": "ner", "metadata": {"in_sentence": "[SHRI HARILAL KANIA C.J., SA!YID FAZL ALI,\n\nPATANJALI SASTRI, MUKHERJEA, DAS and\n\nCHANDRASEKHARA AIYAR JJ.J\n\nConstitution of India, Arts."}}, {"text": "SA!YID FAZL ALI", "label": "JUDGE", "start_char": 160275, "end_char": 160290, "source": "ner", "metadata": {"in_sentence": "[SHRI HARILAL KANIA C.J., SA!YID FAZL ALI,\n\nPATANJALI SASTRI, MUKHERJEA, DAS and\n\nCHANDRASEKHARA AIYAR JJ.J\n\nConstitution of India, Arts.", "canonical_name": "SAIYID FAZL ALI"}}, {"text": "CHANDRASEKHARA AIYAR", "label": "JUDGE", "start_char": 160331, "end_char": 160351, "source": "ner", "metadata": {"in_sentence": "[SHRI HARILAL KANIA C.J., SA!YID FAZL ALI,\n\nPATANJALI SASTRI, MUKHERJEA, DAS and\n\nCHANDRASEKHARA AIYAR JJ.J\n\nConstitution of India, Arts."}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 160358, "end_char": 160379, "source": "regex", "metadata": {}}, {"text": "Arts. 134, 136, 374(4)", "label": "PROVISION", "start_char": 160381, "end_char": 160403, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "Art. 136", "label": "PROVISION", "start_char": 160678, "end_char": 160686, "source": "regex", "metadata": {"linked_statute_text": "Constitution of India", "statute": "Constitution of India"}}, {"text": "High Court of Hyderabad", "label": "COURT", "start_char": 160954, "end_char": 160977, "source": "ner", "metadata": {"in_sentence": "The petitioners, who v.ere convicted and sentenced to death by a special tribunal in the Hyderabad State, preferred appeals to the High Court of Hyderabad which were dismissed, and they applied to the."}}, {"text": "21st Jan., 1950", "label": "DATE", "start_char": 161042, "end_char": 161057, "source": "ner", "metadata": {"in_sentence": "High Court on the 21st Jan., 1950, for leave to appeal to the Judicial Committee of Hyderabad against the judgments of the High Court."}}, {"text": "26th Jan., 1950", "label": "DATE", "start_char": 161166, "end_char": 161181, "source": "ner", "metadata": {"in_sentence": "On the 26th Jan., 1950, the Constitution of India came into force and under the Constitution, Hyderabad became a part of India, the Judicial Committee of Hyderabad ceased to exist, and all appeals and other proceedings pending before that"}}, {"text": "Constitution of India", "label": "STATUTE", "start_char": 161187, "end_char": 161208, "source": "regex", "metadata": {}}, {"text": "Judicial Committee of Hyderabad", "label": "ORG", "start_char": 161291, "end_char": 161322, "source": "ner", "metadata": {"in_sentence": "On the 26th Jan., 1950, the Constitution of India came into force and under the Constitution, Hyderabad became a part of India, the Judicial Committee of Hyderabad ceased to exist, and all appeals and other proceedings pending before that"}}]} {"document_id": "1950_1_88_334_EN", "year": 1950, "text": "19~0\n\nMay, 19.\n\nSUPREME COURT REPORTS [1950)\n\nA.K.GOPALAN\n\nti.\n\nTHE STATE OF MADRAS.\n\nUNION OF INDIA : INTERVENER.\n\n[SHRl HAluLAL\n\nKANIA\n\nC.J.,\n\nSAIYID\n\nFAZL\n\nALI, l'ATANJALI SASTRI, MEHR CHAND MAHAJAN,\n\nMuKHERJF:A and S. R. DAs JJ.J\n\nPreventive Detention Act (IV of 1950), ss. 3, 7, 10-14.-VaJidity-Constitution of India, 1950, Arts. 13, 19 to 22, 32-Law relating :o preventive detention-Whether infringes Fundamental Right as to freedom of movement-Whether subject to judicial review a. to reasonableness under Art. 19 (5)-Scope of Art. 19- Right of free movement and Right to personal liberty, nature and incidents of-Art. 221 whether complete code as to preventive detro tion-Scope and applicability of Art. 21-\"Law,\" \"procedure established by law,\" meanings of-Whether incluile rules of natural justice-Construction of Art. 21-American decisions on °d\"e pro.- cess of U.W, n value of-Omission to provide objective standard for satisfaction of authorities, to pravirl< for oral hearing or leading of evidence, to fix maximum period of detention, and to specify \"circumstances\" and \"classes of cases\" where period of detention may be extended over 3 months, prohibiting detenu from disclosing grounds of detention-Validity of law-Construction of Constitution -Reference to debates and Report of Drafting Committee-\n\nPermissibility.\n\nThe Petitioner who was detained under the Preventive Detention Act (Act IV of 1950) applied under Art. 32 of the Constitution for a writ of habeas corpus and for his release from detention, on the ground that the said Act contravened the proviSions of Arts. 13, 19, 21 and 22 of the Constitution and was consequently ultra vires and that his detention was therefore illegal:\n\nHeld, per KANIA C. )., PATA1'JAL1 SAsTIU, Mu1olan\n\nTlw StaU\n\nState thinks fit docs not contravene Art. 22 (7) and it is n<(t there. fore invalid.\n\nPer ~IA C. J.,\n\nPATANJALI SASTRI, MuKHERJEA and DAs JJ, (FAZL Au and MAHAJAN Jj. dissenting).-Article 22 (7) means that Parliament may prescribe either the circumstances under which, or the class or classes of cases in which, a person may be detained for a period loqger than three months without reference to an advisory board.\n\nIt is not necessary that the . Parliament shoµld prescribe both.\n\nThe matters referred to in cla11ses (a) and (b) of s11b-sec. ( 1) of Sec. 12 constirute a sllfiiient description of such circumstances or classes of cases and Section 12 is not therefore open to -the objection that it does not comply ':Vith Art. 22(7). Das J.-Parliament has in fact .and substance prescribed both in clauses (a) and (b) of sub-sec. (1) of Sec. 12.\n\nFAZL Au and MAHAJAN JJ.-Article 22 (7) means that both the circumstances and the class or classes of cases (which are two different expressions with different meanings and connotations) should be prescribed, and the prescription . of one without the other will not be enough.\n\nThe enumeration of the subjects for reasons connected with which a law of preventive detention could be made contained in els. (a) and ( b) of sub-sec. (I) of Sec. 12 docs riot amount to pre§cribing the circustanccs under which, or the class or classes of cases in which, a person can be detained for mote than three months.\n\nPer KANIA C. J .-While it is not proper to take into consideration the individual opinions of members of. Parliament or Convention to construe the meaning of a particular clause, when a question . is raiScd whether a certain phrase or expression was up for consideration at all or not, a refrcnce to the debates may be permitted.\n\nPATANJALl SAsTR1 J~In construing the provisions of an Act, speeches made in the course of the debates on the bill should not be taken into consideration.\n\nMuKHERJEA J.-In construing the Constitution it is better to leave out of account the debates in the Constituent Assembly, but a higher value may be placed on the report of the Drafting Committee.\n\nORIGINAL Jmuso1cnoN : PEnnoN No. XIII OF 1950.\n\nApplication under Art. 32 (1) of. the CoJ¥titution of India for a writ of habeas corpus :i.gainst the detention. of the appellant in the Madras jail in pursuance of an order of detention made under the Preventive Detention Act, 1950. The material facts of the case and arguments of counsel are set out in detail in the judgments. The relevant provisions of the Preventive Detention Act, 1950, are printed below.\n\nJ. Short title, extent and duration.-This Act may be called the Preventive Detention Act, 1950.\n\n(2) It extends to the whole of India ......\n\n(3) It shall cease to have effect on the lst day of April, 1951, save as respects things done or omitted to be done before that date.\n\n2. Definitions.-ln this Act, unless the context otherwise requires.\n\n (a) \".State Government\" means, in relation to a Part C State, the CKief Commissioner of the State ; and\n\n(b) '1detention order'' means an order made under Section 3 .. 3 .. Powq to make prders detaining certain persons.-(1) The Central Governmel!t--Or. the State Government may-\n\n(a) if satisfied with respect to any persn that _with a view to preventing him from acting in any manner prejudicial to-\n\n(i) the defence of India, the relations of India with foreign powers, or the security of India, or\n\n(ii) the security of the State or the maintenance of public order, or\n\n(iii) the maintenanci: of supplies and services essential to the community, or ( b) if satisfied with respect to any person who is a foreigner within the meaning of the Foreigner~ Act, 1946 (XXXI of 1946), that with a view to regulating his continued presence in India or witha view to making arrangements for his expulsion from India it is necessary so to do, make an order directing that such person be detained.\n\n(2) Any District Magistrate . or Sub-Divisional Magistrate, or in a Presidency-town, the Commissioner of Police, may, if satisfied as provided in sub-clauses (ii) and (iii) of clause (a) of sub-section ( 1), exercise th• power conferred by the said sub-section.\n\n(3) When any order is made under this section by a District Magistrate, Sub-Divisional Magistrate or Commissioner of Police, he shall forthwith report the fact to the State Government to which he is subordinate together with the grounds on which the order has been made and such other particulars as in his opinion have a bearing on the necessity for the order.\n\n7. Grounds of order of detention to be disclosed to persons affected by the order.-(J)When a person is detained in pursuance of a detention order, the authority making the order shall, as soon as may be, communicate to him the grounds on which the order has been m:tde, and sha.11 afford him the earliest opportunity of making a representation against the order, in a case where such order has been made bv the Central Government, to that Government, and in a case where it has been made by a State Government or an officer subordinate thereto, to the State Government.\n\nA.K. Gopalan\n\nThe Stal8\n\n- . \\ 1950 ''\n\nSUPREl\\IE COURT REPORTS [1950}\n\ni\\. K. Gopa!an\n\n· 11. ConfiTmation of detention order.-In any case where the- Advisory Board has reported that -there is in its opinion sufficient cause for the detention of the person concerned, the Central Government or the State Goverllment, as the case ma.y be, may v.\n\nTke State cOnfirm the detention order and continue the detention of theperson concerned for stich .period as it thinks fit.\n\n- -,-~--'- 12. Duration of detention in certain cases.-(!} Any person\n\n\"detained in any of the following classes of cases or under any of\n\nthe following circumstances may be detained without obtainingc . the. opinion-, of an, Advisory Board for a period longer than three\n\nmonths, but not exceeding one year from the date of his detention, namely, _where such person has been detained with lJo view to preventing him from acting in any manner prejudicial to- . (a} the defence of India, relations of India with foreign: powers or the security of India; or _\n\n(b) the security of a State or the maintenance of public order. * \\..;* -· * .-o-. ~-~ . •\n\n14. Disclosure of grounds of detention, etc.-(1) No court shall, except for the purpose of a prosecution for -an offence punishable under sub-section (2), allow any statement to be made, or any evidence io -be given, before it of the substance of any communication made under section 7 -of the grounds on which a detention order has been made against any1 person or of any representation made by him. against such order; and not- . withstanding anything contained in any other la.w, no court shall be entitled to require any public officer to produce before it, or~ to disclose the substance of, any such communication or repre .. - sentation made, or the proceedings of an Advisory Board or that - part of the report of an Advisory Board which is confidenti•l.\n\n(2) It shll be an offenee punishable with imprisonment for a term which maY extend to One );.ear, or with fine, or with both, for any person to disclose or publish w_ithout the previous authorisation of. the Central __ Government or the State Govern .. ment, as the case may be, any contents or matter purporting to be contents Of any such communication' or representation as is referred to in subsection (1) : Provided that nothing in this sub-section shall apply to a disclosure made . to his legal adviser by a peson wh-o is the sub - ject of a. detention order. lYf. K. Nambiar (S. K. Aiyar and V. G. Rao,. with. him) for the petitioner.\n\nK. Rajali Aiyar, Advocate-General of JJfadras (C.R. Pattabhi Raman and R. Ganapathi, with him) for the State of Madras .\n\n. JJ{. C. Setalvad, Attorney-General for India (Jindra-· lal, with him) for the Union of India.\n\n1950.\n\nMay 19.\n\nThe following Judgments were delivered.\n\nKANIA C. J.-This is a pet1t1on by the applicant under article 32 (1) of the Constitution of India for a writ of habeas. corpus against his detention in the Madras Jail.\n\nIn the petition he has given various dates showing how he has been under \"'detention since December, 1947.\n\nUnder the ordinary Criminal Law he was sentenced to terms of imprisonment but those convictions were set aside.\n\nWhile he was thus under detention under one of the orders of the Madras State Government, on the 1st of March, 1950, he was served with an order made under section 3 ( 1) of the Preventive Detention Act, IV of 1950. He challenges the legality of , the order as it is contended that Act IV of 1950 contravenes the provisions of articles 13, 19 and 21 and the provisions of that Act are not in accordance with article 22 of the <\"'A>nstitution. He has also challenge~ the validity of the order on the ground that it is issued mala fide. The burden of proving that allegation is on the applicant.\n\nBecause of the penal provisions of section 14 of the impugned Act the applicant has not disclosed the grounds, supplied to him, for his detention and the question of mala fides of the order therefore cannot be gone into under this petition.\n\nThe question of the validity of Act IV of 1950 was argued before us at great length. This is the first case in which the different articles of the Constitution of India contained in the Chapter on Fundamental Rights has come for discussion before us. The Court is indebted to the learned counsel for the applicant and the Attorney-General for their assistance in interpreting the true meaning of the relevant clauses of the Constitution.\n\nIn order to appreciate the rival contentions it is useful first to bear in mind the general scheme of the Constitution.\n\nUnder article 53 of the Constitution the executive power of the Union is vested in the President and is to be exercised by him in accordance with the\n\nJf.K. Gopa/1111\n\nTiu Stat1\n\nKania C.]\n\n195()\n\nA.K. Gopalan v.\n\nThe State\n\nKania C.J.\n\nConstitution either directly or through officers subordinate to him. The legislative powers of the Union are divided between the Parliament and Legislatures of the States. The ambit and limitations on their respective powers are found in article 246 read with article 245, Schedule VII, Lists 1, 2 and 3 of the Constitution.\n\nFor the Union of India the Supreme Court is established and its powers and jurisdiction are set out in articles 124 to 147.\n\nThis follows the pattern of the Government of India Act, 1935, which was the previous Constitution of the Government of India. Unlike the American Constitution, there is no article vesting the judicial power of the Union of India in the Supreme Court. The material points substantially altering the edifice are first in the Preamble which declares India a Sovereign Democratic Republic to secure to all its citizens justice, liberty and equality and to promote among them all, fraternity.\n\nPart III of the Constitution is an important innovation. It is headed \"Fundamental Rights\".\n\nIn that Part the word \"State\" includes both the Government of the Unio)l and the Government of the States. By articles. 13 it is expressly provided that all laws in force in the territory of India, immediately before the commencement of the Constitution, in so far as they are inconsistenl with the provisions of this Part, to the extent of such inconsistency, are void. Therefore, all laws in operation in India on the day the Constitution came into force, unless otherwise saved, to the extent they are inconsistent with this Chapter on Fundamental Rights, become automatically void.\n\nUnder article 13 (2) provision is made for legislation after the Constitution comes into operation. It is there provided that the State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall to the extent of the contravention, be void.\n\nTherefore, as regards future legislation also the Fundamental Rights in Part III have to be reS: pected and, unless otherwise saved by the provisions of the Constitution, they will be void to the extent they contravene the provisions of Part III.\n\nUnder article 245 (1) the legislative powers conferred under\n\narticle 246 are also made \"subject to the provisions of this Constitution,\" which of course includes Part III dealing with the Fundamental Rights.\n\nThe term law in article 13, is expressed to be wide enough to .include Acts, Ordinances, Orders, Bye-laws, Rules, Reg\\llations and even custom or usage having, in the territory of India, the force of law. The rest of this Part js divided in seven divisions. \"Right to Equality\" is found in articles 14-18, \"Right to Freedom\" in articles 19-22, \"Right against Exploitation\" in articles 23 and 24, \"Right to Freedom of Religion\" in articles 25-28, \"Cultural and Educational Rights\" in articles 29 and 30, \"Right to Property\" in article 31 and \"Right to Constitutional Remedies\" in artciles 32-35.\n\nIn this case we are directly concerned only with the articles under the caption \"Right to Freedom\" (19-22) and article 32 which gives a remedy to enforce the right§ conferred by this Part. The rest of the articles may have to be referred to only to assist in the interpretation of the above-mentioned articles.\n\nIt is obvious that by the insertion of this Part the powers of the Legislature and the Executive, both of the Union and the States, are further curtailed and the right to enforce the Fundamental Rights found in Part III by a direct application to the -Supreme Court is removed from the legislative control. The wording of article 32 shows that the Supreme Court can be moved to grant a suitable relief, mentioned in article 32 (2), only in respect of the FuJ?damental Rights '1 mentioned in Part III of the Constitution.\n\nThe petitioner is detained under a preventive detention order, made under Act IV of 1950, which has been passed by the Parliament of India.\n\nIn the Seventh Schedule of the Constitution, List I contains entries specifying items in respect of whieh the Parlia- . ment has exclusive legislative powers. Entry 9 is in these terms : \"Preventive detention for reasons connected with Defence, Foreign Affairs or the Security of India ; persons subjected to such detention.\" List III of that Schedule enumerates topics on which both the Union and the States have concurrent legislative\n\nA.K. Copalan\n\nTJ.e Slate\n\nKania C.J.\n\nA.Jr. -G•J>alan\n\n. v.\n\nKania C.J.\n\npowers.\n\nEntry 3 of that List is in these terms: \"Preventive detention for reasons connected with the security of. a State, the maintenance of public order or the maintenance of supplies and services essential to the community ; persons subjected to such detention.\" It is not disputed that Act IV of 1950 is covered by these two Entries in List I and List III of the Seventh Schedule. The contention of the petitioner is that the impugned legislation abridges or. infringes the rights given by articles 19-21 and is also not in accordance with the permissive legislation on preventive detention allowed under articles 22 ( 4) and (7) and in particular is an infringement of the provisions of article 22 (5). It is therefore neces>ary to consider in detail each of these articles and the arguments advanced in respect thereof.\n\nArticle 19 is for the protection of certain rights of freedom to citizens. It runs as follows :-\n\n\"19. (1)-All citizens shall have the right-\n\n(a) to freedom of speech and expression ;\n\n(b) to assemble peaceably and without arms ; ( c) to form associations or unions ; ( d) to move freely throughout the territory of India: ( e) to reside and settle in any part of the territory of India ; ( f) to acquire, .hold and dispose of property ; and ·\n\n(g) to practise any profession, or to carry on any occupation, trade or business.\n\n\"(2) Nothing in sub-clause (a) of clause (1) shall affect the operation of any existing law in so far as it relates to, or prevent the State from making any law relating to, libel, slander, defamation, contempt of court or any matter which offends against decency or morality or which undermines the security of, or tends .to overthrow, the State.\n\n(3) Nothing in sub-clause\n\n(b) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, in the interests of public order\n\n•· '\n\nreasonable restrictions on the exercise. of the right conferred by the said sub-clause.\n\n(4) Nothing in sub-clause\n\n(c) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, in the interests of public order or morality, reasonable restrictions on the exercise of the right conferred by the said sub-clause.\n\n(5) Nothing in sub-clauses (d), (e) and (f) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, reasonable restrictions on the exercise, of any of the rights conferred by the said sub-clauses either in the interests of the general public or for the protection of the interests of any Scheduled Tribe.\n\n(6) Nothing in sub-clause\n\n(g) of the said clause shall affect the operation of any existing law in so far as it imposes, 9r prevent the State from making any law imposing, in the interests of the general public, reasonable restrictions on the exercise of the right conferred by the said sub-clause, and, in particular, nothing in the said sub-clause shall affect the operation of any existing law in so far as it prescribes or empowers any authority to prescribe, or prevent the State from making any law prescribing or empowering any authority to prescribe, the professional or technical qualifications necessary for practising any profession or carrying on any occupation, trade or business.\"\n\nClause\n\n(2) specifies the limits up to which the abridgement of the right contained in 19 (1) (a) may be permitted.\n\nIt is an exceptionr Similarly clause\n\n(3) sets out the limit of abridgement of the right in 19\n\n(1) (b) and clause (4) specifis such limits in respect of the right in 19 (1) (c). Clause (5) .is in respect of the rights mentioned in 19 (I) (d), (e) and (f) and clause . (6) is in respect .of the rights contained in 19 (l) (g).\n\nIt cannot be disputed that the articles collected under, the caption \"Right to Freedom\" have to be considered together to appreciate the extent of the Fundamental Rights.\n\nIn the first place it is necessary to notice that 2-3 S. C. India/58.\n\nA.K. Gopalan\n\nThe Slate\n\nKania C.J.\n\n.4.E. Gap.Ian\n\nKania C.J.\n\nthere is a distinction between rights given to citizens and persons. This is clear on a perusal of the provisions of article 19 on the one hand and articles 20, 21 and 22 on the other.\n\nI~ order to determine whether a right is abridged or infringed it is first necessary to determine the extent of the right given by the articles and the limitations prescribed in the articles themselves permitting its curtailment.\n\nThe inclusion of article 13 (1) and (2) in the Constitution appears to be a matter of abundant caution. Even in their absence, if any of the fundamental rights was infringed by any legislative enactment, the Court has always the power to declare the enactment, to the extent it transgresses the limits, invalid. The existence of article 13( 1) and\n\n(2) in the Constitution therefore is not material for the decision of the question what fundamental right is given and to what extent it is permitted to be abridged by the Constitution itself.\n\nAs the preventive detention order results in the detention of the applicant in a cell it was contended on his behalf that the rights specified in article 19 (1) (a), (b), (c), (d), (e) and (g) have been infringed.\n\nIt was argued that because of his detention he cannot have a free right to speech as and where he desired and the same argument was urged in respect of the rest of the rights mentioned in sub-clauses (b )', ( c), ( d),\n\n(e) and (g). Although this argument is advanced in a case which deals with preventive detention, if correct, it should be applicable in the case of punitive detention also to any one sentenced to a term of imprisonment under the relevant section of the Indian Penal Code.\n\nSo considered, the argument must clearly be rejected. In spite of the saving clause's (2) to (6), permitting abridgement of the rights connected with each of them, punitive detention under several sections . .of the Penal Code, e.g., for theft, cheating, forgery and\n\neven ordinary assault, will be illegal. Unless sui:h conclusion necessarily follows from the article, it is obvious that such construction should be avoided. In my opinion, such result is clearly not the outcoe of the Constitution. The article has to be read wh:hout any pre-conceived notions.\n\nSo read, it clearly means\n\nthat the legislation to be examined must be directly in respect of one of the rights mentioned in the subclauses. If there is a legislation directly attemping to control a citizen's freedom of speech or expression, or his right to assemble peaceably and without arms, etc., the question whether that legislation is saved by the relevant saving clause of article 19 will arise.\n\nIf, however, the legislation is l)Ot directly in respect of any of these subjects, but as a result of the operation of other legislation, for instance, for punitive or preventive detention, his right under any of these subclauses is abridged, the question of the application of article 19 does not arise. The true approach is only to consider the directness of the legislation and not what will be the result of the detention otherwise valid, on the mode of the detenue's life. On that short ground, in my opinion, this argument . about the infringement of the rights mentioned in article 19 (I) generally must fail. Any other construction put on the article, it seems to me, will .be unreasonable.\n\nIt was next urged that while this interpretation may meet the contention in respect of rights under article 19 (1) (a), (b), (c), (e) and (g), the right given by article 19 (1), (d) is left untouched. That sub-clause expressly gives. the right \"to move freely throughout the territory of India\".\n\nIt was argued that by the confinement of the petitioner under the preventive detention order his right to move freely throughout the territory of India is directly abridged and therefore the State must show that the impugned legislation imposes onlv reasonable restrictions on the exercise of that right in the interests of the general public or for the protection of the interests of any Scheduled Tribe, under article 19 (5).\n\nThe Court is thus enjoined to inquire whether the res.tnct10ns imposed on the detained person are reasonable in the -interests of the general public.\n\nArticle 14 of the Constitution gives the right to equality in these terms :\n\n\"The State shall not denv to any person equality before the law or the equal protection of the laws within the territory of India.\"\n\nA.K. Copa/an.\n\nThe Stale\n\nKanin C.J.\n\nA.Jr. Gopalan\n\nThe Stat•\n\nKama C.J.\n\nIt was argued that the words \"within the territory of India\" are unnecessary in that article because the Parliament is supreme to make laws operative only within the territory of India.\n\nWithout those words also the article will bear the same meaning. Similarly, it was urged that the words \"territory of India\" in article 19 (1) (d) may be treated as superfluous, and preventive detention would thus be an abridgement of the right to move freely. In my opinion, this rule of construction itself is faulty.\n\nBecause certain words may be considered alan\n\nTt.. SJau\n\nFa1:ol Ali ].\n\nthat preventive detention not only takes away the right in article 19 (1) (d) but also takes away all the other rights guaranteed by article 19 ( 1), except the right to hold, acquire and dispose of property. Where exactly this argument is intended to lead us to, I cannot fully understand, but it. seems to me that it involves an obvious fallacy, because it overlooks the difference in the modes in which preventive detention operates on the right referred to in sub-clause ( d) and other sub-clauses of article 19 ( l). The difference is that while preventive detention operates on freedom of movement directly and inevitably, its operation on the other rights is indirect and consequential and is often only notional. One who is preventively detained is straightaway deprived of his right of movement as a direct result of his detention, but he foses the other rights only in consequence of his losing freedom of movement.\n\nBesides, while freedom of movement is lost by him in all reality and substance, some of the other rights may not be lost until he wishes to exercise: them or is interested in exercising them.\n\nA person who is detained may not be interested in freedom of association or may not pursue any profession, OCC\\lpation, tr; ide or business.\n\nIn such a case, the rights referred to are lost only in theory and not as a matter of substance. I wish only to add that when I said that l was not able to understand the full force of the argument which 11 have tried to deal with, what I had in mind was that if preventive detention sweeps away or affects almost all the rights guaranteed in article ( 19) ( l), the matter deserves very serious consideration and we cannot lightly lay down that article l3 (2) docs not come into operation.\n\nBeing fully alive to the fact that it is a serious matter to be asked to declare a law enacted by Parliament to be unconstitutional, I have again and again asl_ted myself the question : What are we to put in the scales against the construction which I am inclined to adopt and 1n favour of the view that preventive detention does not take away the freedom of movement guaranteed in article 19 (1) (d) ? 'The inevitable answer has always been that while in one of the scales\n\nwe have plain and unambiguous language, the opinion of eminent jurists, judicial dicta of high authority, constitutional practice in the sense that no Constitution refers to any freedom of movement apart from personal liberty, and the manner in which preventive detention has been treated in the very laws on which .our law on this subject is based, all that we can put in the opposite scale is a vague and ill-founded apprehension that some fearful object .. such as the revision of the Penal Code is looming obscurely in the distant • horizon, the peculiar objection that the mere mention of the scheduled tribes will alter the meaning of certain plain words, the highly technical and unreal distinction between restriction and deprivation and the assumption not warranted by any express provision that a person who is preventively detained cannot claim the right of freedom of movement because he is not a free man and certain other things which, whether taken singly or collectively, are too unsubstantial to carry any weight.\n\nIn these circumstances, I am strongly of the .view that article 19 (1) (d) guarantees the right of freedom of movement in its widest sense, that freedom of movement being the essence of personal liberty, the right guaranteed under the article is really a right to personal liberty and that preventive detention is a deprivation of that right. I am also of the view that even on the interpretation suggested by the learned Attorney-General, preventive detention cannot but be held to be a violation of the ri, ght conferred by article 19\n\n(1) (d). In either view, therefore, the law of preventive detention is subject to such limited judicial review as is permitted under article 19 (5). The scope of the review is simply to see whether any particular law imposes any unreasonable restrictions.\n\nConsidering that the restrictions are imposed on a most valuable right, there is nothing revolutionary in the legislature trusting the Supreme Court to examine whether an Act which infringes upon that right is within the limits of reason.\n\nI will now pass on to the consideration of article 21, which runs as foilows :-\n\n\"No person shall be deprived of his life or personal\n\n.A. K. Gopaloa\n\nv,..\n\nThe.SIJIU\n\nFad .Ali].\n\nA. E. Gopalan\n\nTi.. SlaU\n\nFazl Ali].\n\nliberty except according to procedure established by law.\"\n\nHere again, our first step must be to arrive at a clear meaning of the provision. The only words which cause some difficulty in the proper construction of the article are \"procedure established by law,\"\n\nThe learned Attorney-General contended e us that the word \"law\" which is used in article 21 means State-made law or law enacted by the State.\n\nOn the other hand, the learned counsel for the peaaoner strongly contended that the expression \"procedure established by law\" is used in a much wider sense and approximates in meaning to the expression \"due process of law\" as interpreted by the Supreme Court of America in the earliest times and, if that is so, it means exact! y what some of the American writers mean to convey by the expression \"procedural due process.\" In the course of the arguments, the learned Attorney-General referred us to the proceedings in the Constituent Assembly for the purpose of showing that the article as originally drafted contained the words \"without due process of law\" but these words were subsequently replaced by the words \"except according to procedure established by law.\" In my opinion, though the proceedings or discussions in the Assembly are not relevant for the purpose of construing the meaning of the expressions used in article 21, especially when they are plain and unambiguous, they . are relevant to show that the Assembly intended to avoid the use of the expression \"without due process of law.\" That expression had its roots in the expression \"per legem .terrae\" (law of the land) used in Magna Charta in 1215.\n\nIn the reign of Edward III, howver, the words \"due process of law\" were used in a statute guaranteeing that no person will be deprived of his property or imprisoned or indicted or put to death without being brought in to answer by due process of law (28, Edward III, Ch. III) .. The expression was afterwards adopted in the American Constitution and also in the Constitutions of some of the constituent States, though some of the States preferred to U5e the\n\n...\n\nwords \" in due course of law\". or \"according to the law of the land.\" .[See Cooley on \"Constitutional Limitations,\" 8th Edu.Vol. II, pages 734-5].· Jri the\n\nearliet times, the American Supreme Court construed \"due process of law\"· to cover matters of procedure only, but gradually the meaning of the expression was widened so as to cover substantive law also, by laying emphasis. on the word \"due.\" The expression was used in such a wide sense that\" the judges found it difficult to define it and in o::e of the cases it was observed as follows :- . \" It would be difficult and perhaps impossible to ·· give to those words a definition, at once accurate, and broad enough to cover every case. This _difficulty and perhaps impossibility was referred. to by Mr. Justice 11Iiller in Davidson v. New Orleans, where the opinion was expressed that it is wiser to ascertairi their intent and application by the_' gradual process of judicial inclusion. and exclusion,' as the cases presented.for decision shall require, with the reasoning on which such - decisions may be founded:\" l.fissouri Pacific Railway\n\nCo. v. Hitmes ('). . . . . . _ It eems plain that the Constituent Assembly did not adopt this expression on account of the very elastic meaning gtven to it, but preferred . to use the words\n\n''according to procedure. established by law\" which occur in the Japanese Constitution framed in 1946. . It will not be out of place to state here in a few words how the Japanese Constitution came into existence. It. appears that on the I Ith October, 1945, General l\\IcArthur. directed the Japanese Cabinet to initiate measures for the preparation of the Japanese Constitution, but, , as no. progress was made, it was decided in February, 1946, that the problem of constitutional reform should be taken over by the Government Section of. the Supreme Commander's Headquarters. Subsequently the Chief of this Section and the staff drafted the Constitution with the help of American constitutional lawyers who . were called to ·\n\nassist the Government Section inthe task. This\n\nonstitution, as a learned writer Ii.as remarked,. bore .\n\n(1) 115 U.S. 512 at page 518 •\n\nA. K. Gopa!a, t.\n\nThe State\n\nFazl Ali J-.\n\n1950 on almost every page evidences of its essentially · \\Vestern origin,. and _this characteristic was especially l. K. Gopalan , v.\n\nThe State\n\nFazl A!i J.\n\nevident in the preamble•-\" particularly reminiscent of the American Declaration of Independence, a preamble which, it has been observed, no Japanese could possibly have conceived or written and which few could evenunderstand.\" [See Ogg and Zink's \"Modern Foreign _Governments\"]. One of the characteristics of the Constitution which undoubtedly bespeaks - of direct American influence is to be found in a lengthy chapter, consisting of 31 articles, entitled \" Rights and Duties of the People,\" which provided for the first time an effective \"Bill of Rights\" for the Japanese _people. The usual .safeguards have been provided there against apprehension without a warrant and against arrest or detention without being informed of the charges or without adequate cause (articles 33 and 34). Now there are two matters which deserve to be noticed :-(1) that the Japanese . Constitution was framed wholly under American influence; and (2) that at the time it was framed the trend of judicial opinion in_America was in favour of confining the meaning. of\n\n- • theexpression \"due process of law \" to wb-at is ex- , •pressed by certain American writers by the somewhat quaint but useful expression \"procedural due process.\" That there was such a trend would be clear from the following passage which I quote from. Carl Brent\n\nSwisher's\" The Growth of Constitutional Power in the United States\" (page 107) :- _ · \" The American history of its interj>retation falls into three periods. During the first period, covering roughly the first century of government under the Constitution, due process was interpreted principally as a restriction upon procedure-_ and largely the judicial procedure-by which the government exercised its -\n\n- powers. During the second period, which, again roughly\n\nspeaking, extended through 1936, due process was expanded to serve as a restriction not merely upoµ\n\nprocedur~ but upon the substance of the activities in which the government might engage. During the third period, extending from 1936 to date, the use of due\n\nprocess as a substantive restriction has been largely suspended or abandoned, leaving it principally in. its original status as a restriction upon procedure.\"\n\nIn the circumstances mentioned, it seems permissible to surmise that the expression \"procedure established by law\" as used in the Japanese Constitution represented the current trend . of American judicial opinion with regard to \"due process of law,\" and, if that is so, the expression as used in our Constitution means all that the American writers have read into the words \"procedural due process.\" But I do not wish to base any conclusions upon mere surmise and will try to examine the whole question on its merits.\n\nThe word \"law\" may be used in an abstract or concrete sense.\n\nSometimes it is preceded by an article such as \"a\" or \"the\" or by such words as \"any\" \"all,\" etc., and sometimes it is used without any such prefix.\n\nBut, generally, the word \"law\" has a wider meaning when used in the abstract sense without being preceded by an article.\n\nThe question to be decided is whether the word \"law\" means nothing more than statute law.\n\nNow whatever may be the meaning of the expression \"due process of law,\" the word \"law\" is common to that expression as well as \"procedure established by law\" and though we are not bound to adopt the construction put on \"law\" or \"due process of law\" in America, yet since a number of eminent American Judges have devoted much thought to the subject, I am not prepared to hold that we can derive no help from their opinions and we should completely ignore them.\n\nI will therefore in the first instance set out certain quotations from a few of the decisions of the American Supreme Court construing the word \"law as used in the expression \"due process of law,\" in so far as it bears on the question of legal procedure.\n\n( 1) \"Although the legislature may at its pleasure provide new remedies or change old ones, the power is nevertheless subject to the condition that it cannot remove certain ancient land-marks, or take away certain fundamental rights , which have been always\n\nA. K. Gopalan v.\n\nTiu State\n\nFazl Ali:J.\n\n.d. K. Gopalan\n\nTlie Stai.\n\nFat:I Ali].\n\nrecognized and observed in judicial procedures :\" Bardwell v. Collin ( 1 ) •\n\n(2) \"By the law of the land is most clearly intended the general law : a law which hears before it condemns, which proceeds upon inquiry and renders judgments only after trial. The meaning is that every citizen shall hold his life, liberty and property, and immunities under the protection of the general rules which govern society:\" Dartmouth College Case(')\n\n(3) \"Can it be doubted that due process of law signifies a right to be heard in one's defence ? If the legislative department of the government were to enact a statute conferring the right to condemn the citizen without any opportunity .whatever of being heard, would it. be pretended that such an enactment would not be violative of the Constitution ? If this be true, as it undoubtedly is, how can it be said that the judicial department, the source and fountain of justice itself, has yet the authority ro render lawful that which if done under express legislative sanction would be violative of tb, e Constitution? If such power obtains; then the judicial department of the government sitting to uphold and enforce the Constitution is the only one possessing a power to disregard it.\n\nIf such authority exists then in consequence of their establishment, to compel obedience to law and enforce justice, Courts possess the right to inflict the very wrongs which they were created to prevent:\" Hovey v. Elliott(•).\n\n(4) \"It is a rule as old as the law, and never more to respected than now, that no one shall be personally bound until he has had his say in Court, by which is meant, until he has been duly cited to appear, and has been afforded an opportunity to be heard. Judgment without ·.such citation and opportunity wants all the attributes of a judicial determination ; it is judicial usurpation and oppression, and can never be upheld where justice is justly administered: \"Gatpin v. Page ( • ).\n\nThus, in America, the word \"law\" does not mean merely State-made law or law enacted by the State and does not exclude certain fundamental principles of\n\n(1) 44 Minn.117; 9L.ll.A. 152.\n\n(1) 167 u. s. 409 .. _ 417.\n\n(1) 17 U.S. 4.\n\n(') 85 U.S. 18.\n\njustice which inhere in every civilized system of law and which are at the root of it. The result of the numerou.s decisions in America has been summed up by Professor Willis in his book on \"Constitutional Law\" at page 662, in the statement that the essentials of due process are: (1) notice, (2) opportunity to be heard, (3) an impartial tribunal, and (4) orderly course of procedure. It is pointed out by the learned author that these essentials may assume different forms in different circumstances, and so long as they are conceded in principle, the requirement of law will be fulfilled. For example, a person cannot require any particular form or method of hearing, but all that he can require is a reasonable opportunity to be heard.\n\nSimilarly, an impartial tribunal does not necessarily mean a judicial tribunal in every case.\n\nSo far as orderly course of procedure is concerned, he explains that it does not require a Court to strictly weigh the evidence but it does require it to examine the entire record to ascertain the issues, to discover whether there are facts not reported and to see whether or not the law has been , correctly applied to facts. The view expressed by other writers is practically the same as that expressed . by Professor Willis, though some of them do not expressly refer to the fourth element, viz., orderly course of procedure.\n\nThe real point however is that these four elements are really different aspects of the same right, viz .. the right to be heard before one is condemned.\n\nSo far as this right is concerned, judicial opinion in England appears to be the same as that in America.\n\nIn England, it would shock one to be told that a man can be deprived of his personal liberty without a fair trial or hearing. Such a case can happen only if the Parliament expressly takes away the right in question in an emergency as the British Parliament did during the last two world wars in a limited number of cases.\n\nI will refer here to a few cases which show that the fuf!damental principle that a person whose right is affected must be heard has been observed not onlv in cases involving personal liberty but also in proceedings affecting other rights, even though they may have &-3 S. C. lndia/58\n\nA. K. Gopalan\n\nTh. Stat.\n\nFl Ali].\n\nA. 1'. Gopaian\n\nThe Stak\n\nFa.cl Ali].\n\ncome before administrative or quasi-judicial tribunals.\n\nCooper v. The Wadsworth Board of Works (1) was a case under an Act which empowered the District Board to alter or demolish a house where the builder had neglected to give notice of his intention seven days before proceeding to lay or dig the foundation.\n\nActing upon th.is power, the Board directed the demolition of a building without notice to the builder, but this was held to be illegal. Byles J. in dealing with the matter observed as follows :-\n\n\"I conceive they acted judicially because they had to determine the offence. and they had to apportion the punishment as well as the remedy. That being so, a long course of decisions, beginning with Dr.\n\nBentley's case, and ending with some very recent cases, establish that although there are no positive words in a statute requiring that the party shall be heard, yet the justice of the common law will supply the omission of the legislature. The judgment of Mr. Justice Fortescue, in Dr. Bentlev's case, is somewhat quaint, but it is very applicable, and has been the law from that time to the present. He says, \"The objection for want of notice can never be got over The laws of God and man both give the party an opportunity to make his defence, .if he has any.\"\n\nIn the same case Erle C. J. observed :- \"It has been said that the principle that no man shall be deprived of his property without an opportunity of being heard, is limited to a judicial proceeding ...... I do not quite agree with that ; ...... the law, I think, has been applied to many exercises of power which in common understanding would not be at all more a judicial proceeding than would be the act of the District Board in ordering a house to be pulled down.\"\n\nThe observations made bv Erle C. J. were quoted and applied by Sir Robert Collier in Smith v. The\n\nQueen('), and the observations of Lord Campbell in Regina v. The Archbishop of Canterbury (1) were to the same effect.\n\n(1) 14 C.B. (N.S.) 180.\n\n(') 3 A.G. 614.\n\n(') I E. & E. 559.\n\nA similar opinion was expressed by Sir George Jessel in Fisher v. Keane (1), Labouchere v. Earl of W harncliffe, (2) and Russel v.\n\nRussel (8) • In the last mentioned case, he observed as follows:-\n\n\"It [Wood v. Woad(')] contains a verv valuable statement by the Lord Chief Baron as to his view of the mode of administering justice by persons other than Judge~ who have judicial functions to perform which I should have been very glad to have had before me on both those club cases that I recently heard, namely, the case of Fisher v. Keane and the case of Labouchere v. Earl of W harncliffe.\n\nThe passage I mean is this, referring to a committee : \"They are bound in the exercise of their functions by the rule expressed in the maxim \"audi alteram partem\", that no man should be condemned to conseauences without having the opportunity of making his defence.\n\nThis rule is not confined to the conduct of strictly legal tribunals, but is applicable to every tribunal or body of persons invested with authority to adiudicate upon matters involving .civil consequences to individuals'.\"\n\nThis opinion was quoted with approval by Lord Macnaghten in Lapointe v.\n\nL'Association etc. de Montreal (5).\n\nIn that case, on an application for pension by the appellant, who had been obliged to resign, the Board of Directors, without any judicial inquiry into the circumstances, resolved to refuse the claim on the ground that he was obliged to tender his resignation. This procedure was condemned by Lord Macnaghten as being \"contrary to rules of society and above all contrary to the elementary principles of justice.\" These observations of Lord Macnaghten were referred to and relied on in The King\n\nv. Tribunal of Appeal under the Housing Act, 1919 (6).\n\nIn that case, a company proposed to build a picture house and the local authority having prohibited the building, the company appealed under the Housing l') 11 Ch. D. 1.5:;,\n\n(4) [1874] L. R. 9 Ex. 190.\n\n( 11 13 Ch. D. 3-IU.\n\n{') [1906] A. C. 535. (') 14 Ch. D. 471.\n\n('\\ [1920] T. B. 334.\n\n1950\n\nA. K. Gopalan\n\nTheSlaU\n\nFozl Ali].\n\n• 1950\n\nA. Ir. Gopal•n\n\nThe Stall\n\nFaz;/ Ali].\n\n(Additional Powers) Act, 1919, which contained a provision that an appeal could in certain cases be properly determined without a hearing and that the appellate Court could dispense with the hearing and determine the appeal summarily. It was held that . the meaning of rule 7 was that the tribunal on appeal might dispense with an oral hearing, not that they might dispense with a hearing of any kind, and that they were bound to give the appellants a hearing in the sense of an opportunity to make tion. It is always\n\nA. K. Gopalan v.\n\nThe State\n\nFazl Ali J.\n\nA. K. Gopalan\n\nThe State\n\nFale and cumbersome process and wholly unsuitable for . the exceptional sit9ation to which the law applies. Perhaps a simple .illustration may make the position still clearer.\n\nUnder the Lists, one of the subjects on which Parliament may make a law of preventive detention is ·\"matter connected with. the maintenance of puolic order.'~ The Act simply repeats this phraseology and states. in .section 3: \"with a view to preventing him (the person to be detained) from acting in a manner prejudicial to the maintenance of public order.\" This may be all right for section 3, but section 12 must go further. An act prejudicial to the maintenance of public order may. be an ordinary act or it may be an act of special gravity. l think that article 22 (7) (a) contemplates that. the graver and\n\nA. K. Gopalan\n\n- .v.\n\nTll4StaU\n\nFiu:l Ali].\n\nA. K. Copa/an\n\nTl:.t State\n\nFad Ali J.\n\nmore heinous types of acts falling within the category of acts prejudicial to the maintenance of public order (or other heads) should be prescribed so as to define and circumscribe the area of an exceptional piece of legislation.\n\nThat some kind of sub-classification (if I may be permitted to use this word) of the categories A to F was possible can be . illustrated by reference to regulation 18-B of the British Defence of the Realm Regulations. This regulation was made under an Act of 1939 which authorized \"the making of regulations for the detention of persons whose detention appears to the Secretary of State to be expedient in the interests of public safety or the defence of the realm.\" The two matters \"public safety\" and \"defence of the realm\" are analogous to some of the heads stated in Lists I and III. It will be instructive to note that under these two heads, regulation 18-B has set forth several subheads or class or classes of cases in which preventive detention could be ordered.\n\nThese classes are much more specific than what we find in section 3 of the impugned Act and therefore there is less chance of misuse by the executive of the power to order preventive detention. The classes set out are these:-(1) If the Secretary of State has reasonable cause to believe any person to be of hostile origin or associations, (2) if the Secretary of Sta.te has reasonable cause to believe any person to have been recently concerned in acts prejudicial to the public safety or the defence of the realm or in the preparation or instigation of such acts,\n\n(3) if the Secretary of State has reasonable cause to believe any person to have been or to be a member of or to have been or to be active in the furtherance of the objects of, any such organization as is hereinafter mentioned .... (a) the organization is subject to foreign influence or control (b) the persons in control of the organization have or have had associations with persons concerned in the government of, or sympathies with the system of government of, any Power with which His Majesty is at war, and in either case there is danger of the utilization of the organization for purposes prejudicial to the public safety, etc., (4) if the Secretary\n\nof State has reasonable cadse to believe that the recent conduct of any person for the time being in an area or any words recently writen or spoken by such a person expressing sympathy with the enemy, indicates or indicate that that person is likely to assist the enemy.\n\nI have only to point out that the scope within which preventive detention can be legislated upon in this country is much larger than the scope indicated in the British Act under which Regulation 18-B was framed, and therefore there is more scope for specification of the circumstances as well as the class or classes of cases under the impugned Act. But all that has been done is that words which occur in the legislative Lists have been taken and transferred into the Act.\n\nWhat I have stated with regard to class or classes of cases also applies to the circumstances which are also to be prescribed under article 22 (7) (a). These circumstances are intended to supply the background or setting in which the dangerous activities of dangerous persons might prove specially harmful.· They must be special circumstances which demand a specially drastic measure and under which reference to an advisory board might defeat the very object of preventive action. The evident meaning of article 22 (7) (a) seems to be. that the pic_ture will not be complete without mentioning both the classes and the circumstances.\n\nThere was some discussion at the Bar as to what kind of circumstances might haV(;... _been specified. It is not for me to answer this question, but I apprehend that an impending rebellion or war, serious disorder in a particular area such as has induced the Puniab Government to declare certain areas as \"disturbed areas,'.' tense communal situation, prevalence of sabotage or widespread yolitical dacoities and a -variety of other matters might answer the purpose the Constitution had in view.\n\nI will now try to sum up th~ result of a somewhat protracted discussion into which I had to enter merely to clarify .the meaning of a very important provision of the Constitution which has. in mv opinion, been completely misunderstood by the framers of the 7-1 S. C. Ind'af58 .\n\n19.o\n\nA. K. GopalM\n\nThe Stat•\n\nFl Ali].\n\n1950 \\ '\n\nA. K.-Gopalan\n\n\"· The Stat~\n\nFazl Ali J.\n\nimpugned Act. It appears. to .me that article 22 deals. with three classes of preventive detention :- (I) prev_entive detention for. three months ;\n\n· (2) preventive . detention for more than three months on the report of the advisory board ; and\n\n (3fpreentive detention for .more than three I months without reference to the advisory board. ·\n\nIf one has to find some kind of a label for these classes for a clear understanding of the subject, one may label them as \"dangerous,\" \"more dangerous\" and \"most dangerous.\" . Now so far as the first twoclasses are concerned, there is not)ling to be prescribed . . under the Constitution. Apparently.the authors of the Constitution were not much concerned.about class No. (I), and they thought that in so far as class No. (2} was concerned the provision that a reference to the advisory board was necessary coupled with the provision that detention was not to exceed the maximum. period which may be fixed by the . Parliament was . enough. But they did take care to. make a special. provision for class No. (3), and it is extermly important for the liberty of the subject as well as for the smooth working of the Constitution that this provision should not be lightly treated but should receive a wellconsidered and reasonable construction. It js ele-· mentary that the rigour of a law should correspond to\n\nor fit the gravity of the evil or danger it aims at.com-· bating, and , it is also evident that the law which the Parliament has been permitted to enact under article 22 (7) (a) can, so far as rigour is concerned, go to the farthest limit. It follows that the law must have been intended for exceptionally grave situations and exigencies. Hence the authors of the Constitution have made it necessary that the Parliament should put certain specifications into the Act which it is empowered to. pass under article 22 (7) (a), so that by means of these specifications the necessity for enacting so drastic a law should be apparent on the face of it, and its application. should be confined to the classes and circumstances. specified. The Act must prescribe (I) \" ch:.ss or classes of cases\" which are to have reference to the persons~\n\nagainst whom the law is to operate and their activities and movements and (2) \"circumstances\" which would bring into prominence the conditions and the backgrounds against which dangerous activities shoul, d call for special measures.\n\nBy means alan\n\n\"· T/,.S•ate\n\nPattnfialiSa>lri j.\n\nI of personal freedom on which alone the enjoyment of these rights necessarily rests. lt was said that subclause (f) would militate against this view, as the enjoyment of the right \"to acquire, hold and dispose of propsrty\" does not depend upon the owner retaining his personal freedom. This assumption is obviously wrong as regards moveable properties , and even as regards immoveables he could not acquire or dispose of them from behind the prison bars ; nor could he \"hold\" them in the sense of exercising rights of possession and control over them which is what the word seems to 'mean in the context. But where, as a penalty for committing a crime or otherwise, the citizen is lawfully deprived of his freedom, there could no longer be any q uc:stion of his exercising or enforcing the rights referr:d to in clause (1). Deprivation of personal liberty in such a situation is not, in my opinion, within the purview of article 19 at all but is dealt with by the succeeding articles 20 and 21. In other words, article 19 guarantees to the citizens the enjoyment of certain civil liberties while they are free, while articles 20-22 secure to all persons-citizens and non-citizens-certain constitutional guarantees in regard to punishment and prevention of crime. Different criteria are provided by which to measure legislative\n\njudgments in the two fields, and a construction which would bring within article 19 imprisonment in punishment of a crime committed or in prevention of a crime threatened would, as it seems to me, make a reductio ad absurdum of that rrovision. If imprisonment were to be regarded as a \"restriction\" of the right mentioned in article 19 (1) (d), it would equally be a restriction on the rights mentioned by the other subclauses. of clause ( l), with the result that all penal laws providing for imprisonment as a mode of punishment would have to run the gauntlet of clauses (2) to ( 6) before their validity could be accepted.\n\nFor instance, the law which imprisons for theft would, on that view, fall to be justified under clause (2) as a law sanctioning restriction of freedom of speech and expression.\n\nIndeed, a Division Bench of the Allahabad High Court, in a recent unreported decision brought to our notice,\n\napplied the test of undermining the security of the State or tending to overthrow it in determining the validity or other wise of the impugned Act. The learned Judges construed article 19 as covering cases of deprivation of pers_onal liberty and lJ.eld, logically enough, that inasmuch as the impugned Act, by authorising preventive detention, infringed the right to freedom of speech and expression, its validity should be judged by the reservations in clause (2), and as it failed to stand that test, it was unconstitutional and void.\n\nMr. Nambiar did not seek to g0 so far. He drew a distinction between the right conferred by sub-clause\n\n(d) and those conferred by the other - sub-clauses.\n\nHe urged, referring to Blackstone's Commentaries, that personal liberty consisted \"in moving one's person to whatever place one's inclination might direct,\" and - that any law which deprived a person of such power of locomotion was a direct invasion of the right mentioned in sub-clause (d), whereas it interfered only indirectly and consequentially with the rights mentioned in the other sub-clauses. There is no substance in the distinction suggested.\n\nIt would be illogical, in construing article 19, to attribute. to one of the sub-clauses a scop~ and effect totally different from the scope and effect of the others or to draw a distinction between one right and another in the group.\n\nAll the rights mentioned in clause (1) are equally essential elements in the liberty of the individual in any civilised and democratic community, and imprisonment operates as an extinction of all of them alike. It cannot therefore, be said that deprivation of personal liberty is an infringement of the right conferred by sub-clause (d) alone but not of the others.\n\nThe learned Judges of the Allahabad High Court realised this and were perfectly logical in holding that the constitutional validity of a law providing for deprivation of personal liberty or imprisonment must be judged by the tests laid down not only in clause (5) of-article 19 but also in the other clauses including clause (2), though their major premise that deprivation of personal liberty was a \"restriction\" within the meaning of •article 19 is, in my judgment, erroneous.\n\nA. K. Gopalan\n\nThe State\n\nPatanjali Sastri ].\n\nA. K.Gopalan\n\nV, Tlw Stau\n\nPatatifali Sastri ].\n\nIt was said that preventive detention being a drastic restriction of the right to move fredy was, in its \"pith and substance'', within article 19 (1) (cl) read with clause. (5) and not within article 21 which deals with crime anp its punishment and prevention. There is no room here, in my opinion, for the application of the rule of \"pith and substance.\" As pointed out by the Privy Council in Prafulla Kumar Mukherjee v. The Bank of Commerce Ltd., Khulna ( 1 ), approving the observations of the Federal Court in Subrahmanyan\n\nChettiar v. Muttuswamy Goundan { 1 ), the rule was evolved by the Board for determining whether an impugned statute was, in its true character, legislation with respect to matters within the jurisdiction of one legislature or another in a scheme of divided legislative power. No such question arises here. What the Court has to ascertain is the true scope and meaning of article 19 in the context of Part Ill of the Constitution, in order to decide whether deprivation of° personal liberty falls within that article, and the pith and substance rule will be more misleading than helpful in the decision of that issue.\n\nArticle 19, as I have already indicated, guarantees protection for the more important civil liberties of citizens who are in the enjoyment of their. freedom, while at the same time laying down the restrictions which the legislature may properly impose on the exercise of such rights, and it has nothipg to do with deprivation of personal liberty or imprisonment which is dealt with by the succeeding three articles.\n\nThere is also another consideration which points to the same conclusion.\n\nThe Drafting Committee of the Constituent Assembly, to whose Report reference was freely made by both sides during the argument, recommended \"that the word liberty should be qualified by the insertion of the word 'personal' before it, for otherwise it might be construed very widely so as to include even the freedoms already dealt with in artirl~ 13\" (now article 19).\n\nThe acceptance of this suggestion shows that whatever may be the generally accepted\n\n11)\n\n74 I.A. •3\n\n(•) [J940J F.C.R. 188.\n\nconnotation of the expression \"personal liberty'', it was used in article 21 in a sense which excludes the freedoms dealt with in article 19, that is to say, personal liberty in the context of Part III of the Constitution is something distinct from the freedom to move freely throughout the territory of India.\n\nIt was further submitted that article 19 declared . the substantive rights of personal liberty while article 21 provided the procedural safeguard against their deprivation.\n\nThis view of the correlation between the two articles has found favour with some of the Judges in the High Courts which have had occasion to consider the constitutional validity of the impugned Act.\n\nIt is, however, to be observed that article 19 confers the rights therein specified only on the citizens of India, while article 21 extends the protection of life and personal liberty to all persons-citizens and noncitizens alike.\n\nThus, the two articles do not operate in a conterminous field, and this is one reason for rejecting the correlation suggested.\n\nAgain, if article 21 is to be understood as prnviding only procedural safeguards, where is the substantive right to personal liberty of non-citizens to be found in the Constitution ? Are they denied such right altogether ?\n\nIf they are to have no right of personal liberty, why is the procedural safeguard in article 21 exended to them ?\n\nAnd where is that most fundamental right of all, the right to life, provided for in the Constitution ? The truth is that article 21, like its American prototype in the Fifth and Fourceenth Amendments of the Constitution of the United States, presents an example of the fusion of procedural and substantive rights in the same provision.\n\nThe right to live, though the most fundamental of all, is al so one of the most difficult to define and its protection generally takes the form of a declaration that no per~:on shall be deprived of it save by due process of law or by authority of law. \"Process\" or \"procedure\" in this context connotes both the act and the manner of proceeding to take away a man's life or personal liberty.\n\nAnd the first and essential step in a procedure established by law for such deprivation must be a law made by a competent legislature 8-3 S .C. India/SP\n\nA. K. Copa/an v.\n\nThe Stale\n\nPatanjali Sastri J.\n\nA. K. Gopalan v.\n\nThe State\n\nPatmefali Sastri J.\n\nauthorising such deprivation.\n\nThis brings me to the consideration of articles 21 and 22 to which was devoted the greater part of the debate at the Bar.\n\nThese articles run as follows :\n\n\"21. No person shall be deprived of his life or personal liberty except according to procedure established by law.\n\n22.\n\n(1) No person who is arrested shall be detained in custody without being informed, as soon as may be of the grounds for such arrest. nor shall he be denied the right to consult, and to be defended by, a legal practitioner of his choice. '(2) Every person who is arrested and detained in custody shall be produced before the nearest magistrate within a period of twenty-four hours of such arrest excluding the time necessary for the journey from the place of arrest to the Court of the magistrate and no such person shall be detained in custody beyond the said period without the authority of a magistrate.\n\n(3) Nothing in clauses (1) and (2) shall apply- ( a) to any person who for the time bemg is an enemy alien ; or\n\n(b) to any person who is arrested or detained under any law providing for preventive detention. ( 4) No law providing for preventive detention shall authorise the detention of a person for a longer period than three months unless- ( a) an Advisory Board consisting of persons who are, or have been, or are qualified to be appointed as, Judges of a High Court has reported before the expiration of the said period of three months that there is in its opinion sufficient cause for such detention :\n\nProvided that nothing n this sub-Clause shall authorise the detention of any - person beyond the maximum period prescribed by any law made by Parliament under sub-clause (b) of clause (7) ; or\n\n(b) such person . is detained in accordance with the provisions of any law made by Parliament under subclauses (a) and (b) of clause (7).\n\n(5) When any person is detained in pursuance of an order made -under any law providing for preventive detention, the authority making the order shall, as soon as may be, communicate to such person the grounds on which the order has been made and shall afford him the earliest opportunity of making a representation against the order. ( 6) Nothing in clause (5) shall require the authority making any such order as is referred to in that clause to disclose facts which such authoritv considers to be against the public interest to disclose. .\n\n(7) Parliament may by law prescribe- ( a) the circumstances under which, and the class or classes of cases in which, a person may be detained for a period longer than three months under any law providing for preventive detention without obtaining the opinion of an. Advisory Board in accordance with the provisions of sub-clause (a) of clause ( 4) :\n\n(b) t.he maximum period for which any person may in any class or classes of cases be detained under any law providing for 'preventive detention ; and\n\n(c) the procedure to be followed by an Advisory Board in an inquiry under sub-clause (a) of clause (4).\"\n\nMr.\n\nNambiar urged that the word \"law\" in article 21 should be understood, not in the sense of an enactment but as signifying the immutable and universal principles of natural justice-the jus naturale of the civil law-artd that the expression \"procedure established by law\" meant the same thing as that famous phrase \"due prncess of law\" in the American Constitution in its procedural aspect.\n\nNumerous American decisions were cited to show that the phrase implied the basic requirements of (1) an objective and a!certainable standard of conduct to which it is possible to conform,\n\n(2) notice to the party of the accusation against him,\n\n(3) a reasonable opportunitv for him to establish his innocence, and ( 4) an impartial tribunal capable of giving an unbiased judgment.\n\nMr. Nambiar conceded that these reauirements might have to be modified or adapted to suit the nature of the particular proceeding and the object it had in\n\nA. K Gopalti.n\n\nTM State\n\nPatanjali Sastri J.\n\nd. K. Gopalan\n\nTJt, Stat•\n\nP atatliali S4\"'i ].\n\nview, as for instance, in a case of preventive detention, previous notice, which might result in the person concerned going underground might be dispensed with.\n\nLearned counsel insisted that these requirements, being the very core of the principles of natural justice which transcended all State-made laws, must be substantially complied with by any law governing the process of deprivation of life or personal liberty, subject, of course, to any express provision in the Constitution sanctioning their relaxation or dispensation in any case or class of cases.\n\nHe also appealed to the Preamble of the Constitution as the guiding star in its interpretation to support his thesis that, in view of the democratic Constitution which the people of India have purported to give themselves guaranteeing to the citizens certain fundamental rights which are justiciable, the provisions of Part III must be construed as being paramount to the legislative will, as otherwise the socalled fundamental right to life and personal liberty would have no protection against legislative action, and article 13(2) would be rendered nugatory.\n\nThere can be no doubt that the people of India have, in exercise of their sovereign will as expressed in the Preamble, adopted the democratic ideal which assures to the citizen the dignity of the individual and other cherished human values as a means to the full evolution and expression of his personality, and in delegating to the legislature, the executive and the judiciary their respective powers in -the Constitution, reserved to themselves certain fundamental rights, s<>- called, I apprehend, because thev have been retained by the people and made paramount to the delegated powers, as in the American model. Madison (who played a prominent part in framing the First Amendment of the American Constitution) pointing out the distinction, due to historical reasons, between the American and the British ways of securing \"the great and sscn tial rights of the people,\" observed \"Here they arc secured not by laws paramount to prerogative but by Constitutions paramount to laws\" : Report on the Virginia Resolutions, quoted in Near v. Minnesota ( 1 ).\n\n(') 283 U.S. 697.\n\nThis has been translated into positive law in Part III of the Indian Constitution, and I agree that in construing these provisions the high purpose and spirit of the Preamble as well as the constitutional significance of a Declaration of Fundamental Rights should be borne in mind.\n\nThis, however, is not to say that the language of the provisions should be stretched to square with this or that constitutional theory in disregard of the cardinal rule of interpretation of any enactment, constitutional or other, that its spirit, no less than its intendment should be collected primarily from the natural meaning of the words used.\n\nGiving full effect to these principles, however, I am unable to agree that the term \"law\" in article 21 means the immutable and universal principles of natural justice. \"Procedure established by law\" must be taken to refer to a procedure which has a statutory origin, for no procedure is known or can be said to have been established by such vague and uncertain concepts as \"the immutable and universal principles of natural justice.\" In my opinion, \"law\" in article 21 means \"positive or State-made law.\" No doubt, the American Judges have adopted the other connotation in their interpretation of the due process clause in the Fifth and Fourteenth Amendments of the American Con.stitution (\"Nor shall any person be deprived of life. liberty or property without due process of law\").\n\nBut that clause has an evolutionary history behind it.\n\nThe phrase has been traced back to 28 Edw. III Ch. 3, and Coke in his Institutes identified the term with the expression \"the law of the\n\nland\" in the great Charter of John. Even in England where the legislative omnipotence of Parliament is now firmly established.\n\nCoke understood these terms as implying an .inherent limitation on all legislation, and ruled in Dr. Bonham's Case (1) that \"the common law will control Acts of Parliament and sometimes adjudge them to be utterly void when they are against common right and reason.\" Though this doctrine was later discarded in England as being \"a warning\n\n(1) 8 Rep. 118 (a).\n\nA. K. Goj>lllt111\n\nThe Stat•\n\nPala, Yali Sastri J.\n\nA. K. Gopalan\n\nThe Staie\n\nPatanja{i Sastri ].\n\nrather than an authority to be followed\" [per Willes }. in Lee v. Dude and Torrington Ry. (1 )] it gained ground in America, at first as a weapon in the hands of the Revolutionists with which to resist the laws of Parliament, and later as an instrument in the hands of the Judges for establishing the supremacy of the judiciary [see Calder v. Bull ( ') ].\n\nIn the latter half of the 19th century, this doctrine of a transcendental common law or natural justice was absorbed in the connotation afthe phrase \"due process of law\" occurring i1_1 the Fifth and Fourteenth Amendments; By laying' emphasis on the word \"due'', interpreting \"law\" as the fundamental principles of natural justice and giving the words \"liberty\" and \"property\" their widest meaning, the Judges have made the due process clause into a general restriction on all legislative power.\n\nAnd when that power was threatened with prostration by the excesses of due process, the equally vague and expansive doctrine of \"police power\", i.r:., the power of Government to regulate private rights in public interest, was evolved t-0 counteract such excesses. All this has been criticised as introducing great uncertainty in tH, e state of the law in that country, for no one could he sure how due process of law would affect a particular enactment.\n\nA century after the phrase had been the subject of judicial interpretation one learned Judge observed in 1877 that it was incapable of precise definition and that its intent and application could only be ascertained by \"the gradual process of inclusion and exclusion\" [Davidson v. New Orleans (•)] and, as recently as 1948, another Judge referred to the difficulty of \"giving definiteness to the vague contours of due process\" and \"of spinning judgment upon State action out of that gossamer concept:\" Haley v.\n\nState of Ohio ( ').\n\nIt is not a matter for surprise, therefore, that the Drafting Committee appointed by the Constituent Assembly of India recommended the substitution of the expression • \"except according to procedure\n\n(') (1871) L.R. 6 C.P. 576. 582.\n\nt'l\n\n(1798) 3 Dalhas as.\n\n('1 96 U.S. 97.\n\n(') 332 U.S.596.\n\nestablished by law\" taken from the Japanese Constitution, 1946, for the words \"without due process of law\" which occurred in the original draft, \"as the former is more specific.\" In their Report the Committee added that they have \"attempted to make these rights (fundamental rights) and the limitations to which they must necessarily be subject as definite as possible, since the Courts may have to pronounce upon them\" (para. 5). In the face of all these considerations, it is difficult to accept the suggestion tha, t \"law\" in article 21 stands for the jus naturale of the civil law, and that the phrase \"according to procedure established by law\" is equivalent to due process of law in its procedural aspect, for that would have the effect of itroducing into our Constitution those \"subtle and elusive criteria\" implied in that phrase which it was the deliberate purpose of the framers of our Constitution to avoid.\n\nOn the other hand, the interpretation suggested by the Attorney-General on behalf of the intervener that the expression means nothing more than procedure. prescribed by any law made by a competent legislature is hardly more acceptable. \"Established\" according to him, means prescribed, and if Parliament or the Legislature of a State enacted a procedure, however, novel and ineffective for affording the accused person a fair opportunity of defending himself, it would be sufficient for depriving a person of his life or personal liberty. He submitted that the Constituent Assembly definitely rejected the doctrine of judicial supremacy when it rejected the phrase \"due process of law\" and made the legislative will unchallengeable, provided only \"some procedure\" was laid down. The Indian Constitution having thus preferred the English doctrine of Parliamentary supremacy, the phrase \"procedure established by law\" must be construed in accordance with the English view of due process of law, that is to say, any procedure which Parliament ma:y . choose to prescribe.\n\nLearned counsel drew attention to the speeches made by several members of the Assembly on the floor of the House for explaining, _ as he put it, the \"historical background.\" A speech\n\nA. K. Gopl'11111\n\nTlllStaU\n\nPatanjali So.slri J.\n\nA. IC. Gopalan\n\nTlw Stat•\n\nPatan; ali Sastri J.\n\nmade in the course of the debate on a bill could at best be indicative of the subjective intent of the speaker, but it could not .reflect the inarticulate mental processes I ying behind the majority vote which carried the bill.\n\nNor is it reasonable to assume that the minds of all those legislators were in accord.\n\nThe Court could only search for the objective intent of the legislature primarily in the words used in the enactment, aided by such historical material as reports of statutory committees, preambles etc.\n\nI attach no importance, therefore, to the speeches made by some of the members of the Constituent Assembly in the course of the debate on article 15 (now article 21).\n\nThe main difficulty I feel in accepting the construction suggested by the Attorney-General is that it completely stultifies article 13(2) and, indeed, the very conception of a fundamental right.\n\nIt is of the essence of that conception that it is protected by the fundamental law of the Constitution against infringement by ordinary legislation.\n\nIt is not correct to say that the Constitution has adopted the doctrine of Parliamentary supremacy.\n\nSo far, at any rate, as Part III is concerned, the Constitution, as I have already observed, has accepted the American view of fundamental rights. The provisions of articles 13 and 32 make this reasonably clear.\n\nCould it then have been the intention of the framers of the Constitution that the most important fundamental rights to life and personal liberty should be at the mercy of legislative majorities as, in effect, they would be if \"established\" were to mean merely \"prescribed?\". In other words, as an American Judge said in a similar context, does the constitutional prohibition in article 13 (2) amount to no more than \"You shall not take away life or personal freedom unless you choose to take it' away,\" which is mere verbiage.\n\nIt is no sound answer to say that, if article 21 conferred no right immune from legislative invasion, there would be no question of contravening article 13 (2).\n\nThe argument seems, to my mind, to beg the question, for it assumes that the article affords no such immunity. It is said that article 21 affords no protection against competent legislative action in\n\nthe field of substantive criminal law, for there is no provision fQr judicial review, on the ground of reasonableness or otherwise, of such laws, as in the case of the rights enuinerated in article 19.\n\nEven assuming it to be so the construction of the learned Attorney- General would have the effect of rendering wholly ineffective and illusory even the procedural protection which the article was undoubtedly designed to afford.\n\nIt was argued that .. law\" in article 31 which provides that no person shall be deprived of his property ''save by authority of law\" must mean enacted law and that if a person's prqperty could be taken away by legislative action, his right to life and personal liberty need not enjoy any greater immunity.\n\nThe analogy is misleading.\n\nClause (2) of article 31 provides for payment of compenSiation and that right is justiciable except in the two cases mentioned in clauses ( 4) and\n\n(6) which are of a transitory character The constitutional safeguard of . the right to property in the said article is, therefore, not so illusory or ineffective as clause (1) by itself might make it appear, even assuming that \"law\" there means ordinary legislation.\n\nMuch reliance was placed on the Irish case The King v. The Military Governor of Hare Park Camp (1 ) where the Court held that the term \"law\" in article 6 of the Irish Constitution of 1922 which provides that \"the liberty of the person is inviolable and no person shall be deprived of his liberty except in accordance with law\" meant a law enacted by the Parliament, and that therefore the Public Safety Act of 1924 did not contravene the Constitution. The Court followed The King v. Halliday (2) where the House of Lords by a majority held that the Defence of the Realm. (Consolidation) Act, 1914, and the Regulations framed theretinder did not infringe upon the Habeas Corpus Acts and. the~Magna Carta \"for the simple reason that the Act and the Orders become part of the law of the land.'; But that was because, as Lord Dunedin pointed out \"the British Constitution has entrusted to the two Houses of Parliament subject to the assent\n\n(') [1924) 2 I.R; 104.\n\n(1) (1917) A.C. 260.\n\nA. IC Gopalan , ..\n\nTiu Stau\n\nPatanjali Saslri ].\n\nA. K. Gopalan\n\nThe Stl.tt\n\nPatanjaJi SastriJ.\n\nof the King, an absolute power untrammelled by any written instrument obedience to which may be compelled by some judicial body,\" whereas the Irish Constitution restricted the legislative powers of the Irish Parliament by a formal declaration of fundamental rights and by providing for a judicial review of legislation in contravention of the Constitution (article 65).\n\nThis radical distinction was overlooked.\n\nThe Attorney-General further submitted that, even on his interpretation, article 21 would be a protection against violation of the rights by the executive and by individuals, and that would be sufficient justification for the article ranking as a fundamental safeguard.\n\nThere is no substance in the suggestion.\n\nAs pointed out in Eshugbayi Eleko v. Government of Nigeria (Officer Administering) (1 ), the executive could only act in pursuance of the powers given by law and no constitutional protection against such action is really needed.\n\nEven in monarchical Britain the struggle between prerogative and law has long since ended in favour of the latter. \"In accordance with British jurisprudence\" said Lord Atkin in the case cited above, \"no member of the executive can interfere with the liberty or property of a British subject except on the condition that he can support the legality of his action before a Court of justice.\" As for protection against individuals, it is a misconception to think that constitutional safeguards are directed against individuals.\n\nThey are as a rule directed against the State and its organs.\n\nProtection against violation of the rights by individuals must be sought in the ordinary law.\n\nIt is therefore difficult to accept the suggestion that article 21 was designed to afford protection on! y against infringements by the executive or individuals.\n\nOn the other hand, the insertion of a declaration of .Fundamental Rights in the forefront of the Constitution, coupled with an express prohibition against legislative interference with these rights (article 13) and the provision of a constitutional sanction for the enforcement of such prohibition by means of a judicial review (article 32) is, in my\n\n(') [1931] A.O. 662.\n\nopm1on, a clear and emphatic indication that these rights are to be paramount to ordinary State-made laws.\n\nAfter giving the matter my most careful and anxious consideration, I have come to the conclusion that there are only two possible solutions of the problem.\n\nIn the first place, a satisfactory via media between the rwo extreme positions contended for on either. side may be found by stressing the word \"establislied\" which implies some degree of firmness, permanence and general acceptance, while it does not exclude origination by statute. \"Procedure established by law\" may well be taken to mean what the Privy Council referred to in King Emperor v. Benoari Lal Sharma ( 1) as \"the ordinary and well-established criminal procedure,\" that is to say, those settled usages and normal modes of . proceeding sanctioned by the Criminal Procedure Code which is the general law of criminal procedure in the country.\n\nTheir Lordships were referring to the distinction between trial by special Courts provided by an Ordinance of the Governor-General and trial by ordinary Courts under the Criminal Procedure Code.\n\nIt can be no objection . to this view that the Code prescribes no single and uniform procedure for all types of cases but provides varying procedures for different classes of cases.\n\nCertain basic principles emerge as the constant factors common to all those procedures, and they form the core of the procedure established by law. I realise that even on this view, the life and liberty of the individual will not be immune from legislative interference, for a competent legislature may change the procedure so as to whittle down the protection if so minded. But, in the view I have indicated, it must not be a change ad hoc for any special purpose or occasion, but a change in the general law of procedure embodied in the Code. So long as such a change is not effected.\n\nThe protection under article 21 would be available. The different measures of constitutional protection which the fundamental right to life and personal liberty will enjoy under article 21 as interpreted in the three ways (1)\n\n[1945] F.C.R. 161, 175.\n\nA. K. Gopa/an\n\nThe State\n\nPatanja/i Sastri J.\n\nA. K. Copa/an\n\nThe Stale\n\nPatmiia/i Sastri ].\n\nreferred to above will perhaps be best illustrated by a concrete example.\n\nSuppose that article 22 ( 1) was not there and Parliament passed an Act, as a temporary measure, taking away in certain cases the right of an accused person to be defended by a legal practitioner.\n\nAccording to the petitioner's learned counsel the Act would be void as being contrary to the immutable principles of natural justice embodied in article 21, whereas on the construction contended for by the Attorney-General, the Act would be perfectly valid, while, on the view I have indicated above, the Act would be bad, but if the denial of such right of defence is made a normal feature of the ordinary law of criminal procedure by abrogating section 340 ( 1) of the Code, article 21 would be powerless to protect against such legislative action.\n\nBut in a free democratic republic such a drastic change in the normal law of procedure, though theoretically possible, would be difficult to bring about, and that practical difficulty will be the measure of the protection afforded by article 21.\n\nIt was said that the safeguards provided in clauses (1) and (2) of article 22 are more or less covered by the provisions of the Criminal Procedure Code, and this overlapping would have been avoided if. article 21 were intended to bear the construction as indicated above.\n\nThe argument overlooks that, while the provisions of the Code would be liable to alteration by competent legislative action, the safeguards in clauses ( 1) and (2) of article 22, being constitutional, could not be similarly dealt with and this sufficiently explains why those safeguards find a place in the Constitution.\n\nThe only alternative to the construction I have indicated above, if a constitutional transgression is to be avoided, would be to interpret the reference to \"law\" as implying a constitutional amendment pro tanto, for it is only a law enacted by the procedure provided for such amendment (article 368) that could modify or override a fundamental right without contravening article 13 (2).\n\nThe question next arises as to how far the protection under article 21, such .as it has been found to be, is available to persons under. preventive detention.\n\nThe learned Attorney-General contended that article 21 did not apply to preventive detention at all, as article 22 clauses . ( 4) to (7) formed a complete code of constitutional safeguards in respect of preventive detention and, provided only these provisions are conformed to, the validity of any law relating to preventive detention could not be challenged.\n\nI am unable to agree with this view. The language of article 21 is perfectly general and covers deprivation of personal liberty or incarceration, both for punitive and preventive reasons. If it was really the intention of the framers of the Constitution to exclude the application of article 21 to cases of preventive detention, nothing would have been easier than to add a reference to article 21 in clause (3) of article 22 which provides that clauses (1) and (2) of the latter shall not apply to any person who is arrested or detained under any law providing for preventive detention.\n\nNor is there anything in the language of clauses (4) to\n\n(7) of article 22 leading necessarily to the inference that article 21 is inapplicable to preventive dentention.\n\nThese clauses deal only with certain aspects of preventive detention such as the duration of such detention, the constitution of an advisory board for reviewing the order of detention in certain cases, the communication of the grounds of detention to the person detained and the provision of an opportunity to him of making a representation against the order.\n\nIt cannot be said that these provisions form an exhaustive code dealing with all matters relating to preventive detention and cover the entire area of protection which article 21, interpreted in the sense I have indicated above, would afford to the person detained.\n\nI am, . therefore, of opinion that article 21 is applicable to preventive detention as well.\n\nI will now proceed to examme whether the impugned Act or any of its provisions under which the petitioner has been ordered to be detained, takes away any of the rights conferred by articles 2~ and 22 or infringes thei protection afforded thereby.\n\nThe\n\n1950\n\nA. K. Gopalan\n\nTiu State\n\nPaJQl/jali Sastri J.\n\nA. K. Gopalan v.\n\nThe State\n\nPatanjali Sastri ].\n\noutstanding fact to be borne in mind in this connection is that preventive detention has been given a constitutional status.\n\nThis sinister-looking feature. so strangely out of place in a democratic constitution. which invests personal liberty with the sacrosanctity of a fundamental right and so incompatible with the promises of its preamble is doubtless designed to prevent an abuse of freedom by anti-social and subversive elements which might imperil the national welfare of the infant Republic.\n\nIt is in this spirit that clauses (3) to (7) of article 22 should, in my opinion, be construed and harmonised as far as possible with article 21 so as not to diminish unnecessarily the protection afforded for the legitimate exercise of personal liberty.\n\nIn the first place, as already stated, clause (3) of article 22 exclurles a person detained under any law providing for preventive detention from the benefit of the safeguards provided in clauses (1) and (2).\n\nNo doubt clause\n\n(5) of the same article makes some amends for the deprivation of these safeguards in that it provides for the communication to the person detained the grounds on which the order has been made and for an opportunity being afforded to him of making a representation against the order, but the important right to consult and to be defended by a legal practitioner of his choice is gone. Similarly, the prohibition against detention in custody beyond a period of 24 hours without the authority of a magistrate has also been taken away in cases of preventive detention.\n\nIt was not disputed that, to the extent to which the express provisions of clauses ( 4) to (7) authorised the abrogation or abridgement of the safeguards providec'.l under other articles or substitution of other safeguards in a modified form, those express provisions must rule.\n\nOf the four essentials of the due process on which Mr. Nambiar insisted, (which also form part of the ordinary and established procedure under the Criminal Procedure Code, though I cannot agree that they are immutable and beyond legislative change) the requirements of notice and an opportunity to establish his innocence must, as already stated, be taken to have\n\nbeen provided for by clause (5) of article 22.\n\nAs for an ascertainable standard of conduct to which it is possible to conform, article 22 makes no specific provision in cases of preventive detention, and if such a safeguard can be said to be implicit in the procedure established by law in the sense explained above in preventive detention cases, it could no doubt be invoked.\n\nThis point will be considered presently in dealing with provisions of the impugned Act. The only other essential requirements, and the most essential of all, is an impartial tribunal capable of giving an unbiassed verdict.\n\nThis, Mr. Nambiar submitted, was left unprovided for by article 22, the advisory board referred to in clause ( 4)\n\n(a) being, according to him, intended to deal solely with the question of duration of -the detention, that is to say, whether or not there was sufficient cause for detaining the person concerned for more than three months, and not with judging whether the person detained was innocent.\n\nA tribunal which could give an unbiassed judgment on that issue was an essential part <>f the protection afforded by article 21 in whichever way it may be interpreted, and reference was . made in this connection to the preventive provisions of the Criminal Procedure Code (Ch. VIII). The impugned Act, not having provided for such a tribunal contravened article 21 and was -therefore void.\n\nIt will be seen that the whole of this argument is based on the major premise that the advisory board mentioned in clause (4) (a) of article 22 is not a tribunal intended to deal with the issue of justification of detention.\n\nIs that view correct ?\n\nIt was argued that the words \"sufficient cause for such detention\" in sub-clause (a) of clause ( 4) had reference to the detention beyond three months mentioned in clause (4) and that this view was supported by the language of sub-clause (a) of clause (7) whereby Parliament is authorised to prescribe the circumstances under which and the class or classe, of cases in which a person may be detained for a period. longer than three months without the opinion of an advisory board.\n\nIn other words; learned counsel s1:1bmitted,\n\nA. K. Gopalan\n\nThe State\n\nPatanjali Sastri ].\n\nA. K. Gopalan\n\nThe Stale\n\n Patanjali Sastri J.\n\nthe combined effect of clauses ( 4) and ( 7) was that no person could be detained for a period over three months without obtaining the opinion of an advisory board that there was sufficient cause for detention for the longer period, except in cases where Parliament passed a law authorising detention for such period even without the opinion of an advisory board.\n\nThus, these two clauses were concerned solely with the duration of the preventive detention, and so was the advisory board which those clauses provided for that purpose.\n\nI am unable to accept this view.\n\nI am inclined to think that the words \"such detention\" in sub-clause\n\n(a) refer back to the preventive detention mentioned in clause ( 4) and not to detenuon for a longer period than three months.\n\nAn advisory board, composed as it has to be of Judges or lawyers, would hardly be in a position to judge how long a person under preventive detention, say for reasons connected with defence, should be detained.\n\nThat must be a matter for the executive authorities, the Department of Defence, to determine, as they alone are responsible for the defence of the country and have the necessary data for taking a decision on the point.\n\nAll that an advisory board can reasonably be asked to do, as a safeguard against the misuse of the power, is to judge whether the detention is justified and not arbitrary or mala fide.\n\nThe fact that the advisory board is required to make its report before the expiry of three months and so could submit it only a day or two earlier cannot legitimately lead to an inference that the board was solely concerned with the issue whether or not the detention should continue beyond that period.\n\nBefore any such tribunal could send in its report a reasonable time must elapse, as the grounds have to be communicated to the person detained, he has to make his r<; presentation to the detaining authority which has got to be placed before the board through the appropriate departmental channel.\n\nEach of these steps may, in the course of official routine, take some time, and three months' period might well have been thought a reasonable period to allow before the board could be required to submit its report.\n\nAssuming, however, that the words \"such detention'.'. had reference to the period of detention, there is no apparent reason for confining the enquiry by the advisory board to the sole issue of duration beyond three months without reference to the question as to whether the detention was justified or not.\n\nIndeed, it is difficult to conceive how a tribunal could fairly judge whether a person should be detained for more than three months without at the same time considering whether there was sufficient cause for the detention at all.\n\nI am of opinion that the advisory board referred to in clause ( 4) is the machinery devised by the Constitution for reviewing orders for preventive detention in certain cases on a consideration of the representations made by the persons detained.\n\nThis is the view on which Parliament has proceeded in enacting the impugned Act as will be seen from sections 9 and 10 thereof, and I think it is the correct view.\n\nIt follows that the petitioner cannot claim to have his case judged by any other impartial tribunal by virtue of article 21 or otherwise.\n\nMr. Nambiar, however, objected that, on this view, a law could authorise preventive detention for three months without providing for review by any tribunal, and for even longr periods if Parliament passed an Act such as is contemplated in sub-clause (a) of clause (7).\n\nThat may be so, but, however deplorable such a result may be from the point of view of the person detained, there could be no remedy if, on a proper construction of clauses ( 4) and (7), the Constitution is found to afford no higher protection for the personal liberty of the individual.\n\nTurning next to the provisions. of the impugned Act, whose constitutional validity was challenged, it will be necessary to consider only those provisions which affect the . petitioner before us. In the first place, it w::i~ contended that section 3, which empowers the Central Gov&nment or the State Government to detain any person if it is \"satisfied\" that it is necessary to do so with a view to preventing him from acting in any manner prejudicial to (among other 9-3 S. C. India/58\n\nA. K. Gojialan\n\nThe Slat•\n\nPatanjali Sa.riri ].\n\nA. K. Gopa/an\n\nv, Tire State\n\nPatmija/i Sastri J.\n\nthings) the security of the State or the maintenance of public order, cannot be said to comply with the procedure established by law, as the section prescribes no objective and ascertainable standard of conduct to which it will be possible to conform, but leaves it to the will and pleasure of the Government concerned to make an order of detention. .The argument proceeds on the assumption that the procedure established by law is equivalent to the due process of law.\n\nI have already endeavoured to show that it is not.\n\nApart from this, the argument overlooks that for the purposes of preventive detention it would be difficult, if not impossible to lay down objective rules of conduct failure to conform to which should lead to such detention.\n\nAs the very term implies, the detention in such cases is effected with a view to prevent the person concerned from acting prejudicially to certain objects which the legislation providing for such detention has in view.\n\nNor would it be practicable to indicate m enumerate in advanc~ what acts or classes of acts would be regarded as prejudicial.· The responsibility for the security of the State and the maintenance of public order etc. having been laid on the executive Government it must naturally be left to that Government to exercise the power of preventive detention whenever they think the occasion demands it. ' Section 12 came in for a good deal of criticism.\n\nThat section, which governs the duration of the petitioner's detention reads as follows :-\n\n\"Duration of detention in certain cases.-Any person detained in any of th.! following classes of cases or under any of the following circumstances may be detained without obtaining the opinion of an Advisory Board for a period longer than three months, but not exceeding orie year from the date of his detention, namely, where such person has been detained with a view to preventing him from acting in any manner prejudicial to-\n\n(a) the defence of India, relations of India with foreign powers or the security of India ; or\n\n(b) the securit}r of a State or the maintenance of public order.\n\n(2) The case of every person detained under a detention order to which the provisions of sub-section ( 1) apply shall, within a period of six months from the date of his detention, be reviewed where the order was made by the Central Government or a State Government, by such Government, and where the order was made by any officer specified in sub-section\n\n(2) of section 3, by the State Government to which such officer is subordinate, in consultation with a person who is, or has been, or is qualified to be appointed as a Judge of a High Court nominated in that behalf by the , Central Government or the State Government, as the case may be.\"\n\nIt was urged that this did not comply with the requirements of clause (7) of article. 22 as it merely repeated the \"matters\" or legislative topics mentioned in Entry 9 of List I and Entry 3 of List III of the Seventh Schedule to the Constitution.\n\nWhat Parliament has to do under clause (7) of article 22 is to prescribe \"the circumstances under which and the class or classes of cases in which\" a person may be detained for a period longer than three months without obtaining the opinion of an advisory board.\n\nIt was said that clause ( 4)\n\n(a) provided for ordinary !ases of preventive detention where such detention could not continue beyond three months without obtaining the opinion of an advisory board, whereas clause (7) (a) made provision for special cases of detention for more than three months without the safeguard of the advisory board':; opinion, for aggravated forms of prejudicial conduct.\n\nIn other words, clause ( 4) (a) laid down the rule and clause (7) (a) enacted an exception.\n\nIt was therefore necessary for Parliament to indicate to the detaining authority for its guidance the more aggravated forms of prejudicial activity, and mere mention of the subjects in respect of which Parliament is authorised under the legislative lists to make laws in respect of preventive detention could hardly afford any guidance to such authority and should not be regarded as sufficient compliance with the requirements of clause (7). There is a two-fold fallacy in\n\nA. K. Gopalan\n\nTiu Stall\n\nPatanJaJi Sastri J.\n\nA.. K. Gopcla•\n\n•• Tlw S'°\"\n\nPatatrjali SasJri \"].\n\nthis argument.\n\nIn the first place, the suggested correlation between clause (4) (a) and clause (7) (a) as enacting a rule and an exception is, as a matter of construction, without foundation.\n\nReading clauses ( 4) and (7) together it is reasonably clear that preventiv.t detention could last longer in two cases : ( 1) where the opinion of an advisory board is obtained, subject however to a prescribed period [sub-clause (a) of clause ( 4)] and (2) where a person is detained under a law made by Parliament under sub-clauses (a) and (b) of clause (7) [sub-clause (b) of clause (4)].\n\nThese are two distinct and independent provisions.\n\nIt is significant that sub-clause (b) of clause ( 4) is not worded as a proviso or an exception to sub-clause (a) of the same clause as it would have been if it was intended to operate as such.\n\nThe attempt to correlate clause (4) (a) and clause (7) (a) as .a rule and an exception respectively is opposed both to the language and the structure of those clauses.\n\nSecondly, the argume, nt loses sight of the fact that clause (7) deals with preventive detention which is a purely precautionary measure which \"must necessarily proceed in all cases, to some extent, on suspicion or anticipation as .distinct from proof\" [per Lord Atkinson in Re:r v. Halliday (' ']. The remarks I have already made with reference to the absence of any objective rules of conduct in section 3 of the impugned Act apply also to this criticism of section 12. It would be difficult, if not impracticable, to mention the v; irious\n\ncircumstances, or to enumerate the various classes of cases exhaustively in which a person should be detained for more than three months for preventive purposes, except in broad outline.\n\nSuppose a person belongs to an organization pledged to violent and subversive activity as its polil:; y.\n\nBeyond his membership of the party the person might have done nothing until he was arrest; ed and detained. But if released he might indulge in anything from the mildest form of _prejudicial activity, like sticking an objectionable handbill on a hoarding, to the most outrageous acts of sabotage.\n\n('} L. R. 1917 A. C. 260, 275.\n\nHow could the insertion in section 12 of a long series of categories of aggravated forms of prejudicial activities, or the enumeration of the various circumstances in which such activities are likely to be indulged in, be of any assistance to the detaining authority in determining whether the person concerned should be detained for three months or for a longer period ?\n\nAll that would be necessary and sufficient for him to know for coming to a decision on the point is that the person is a member of such an organisation and will probably engage in subversive activities prejudicial to the security of the State or the maintenance of public order or, in other words, he belongs to class (b) in section 12.\n\nWhile enumeration and classification in detail would undoubtedly help in grading punishment for offences committed, they would not be of much use in fixing the duration of preventive detention.\n\nSufficient g!lidance in such cases could be given by broadly indicating the general nature of the prejudicial activity which a person is likely to indulge in, and that in effect is what Parliament has done in -section 12.\n\nReference was made in this connection to Rule 34 of the Defence of India Rules framed under the Defence of India Act, 1939, where \"prejudicial act\" is defined by enumeration.\n\nBut it was also for the purpose of prohibiting such acts [Rule 38 sub-rule (I)] and making them offences (sub-rule 5). And even there, the definition had to end in a residuary clause sweeping in acts likely \"to prejudice the efficient prosecution of the war, the defence of British India or the public safety or interest.\"\n\nIn Lists I and III of the Seventh Schedule _to the Constitution six topics are mentioned in respect of which Parliament could make laws providing for preventive detention, and section 12 of the impugned Act mentions five of them as being the classes of cases or the circumstances in which longer detention is authorised.\n\nI fail to see why this could not be regarded as a broad classification of cases or a broad description of circumstances where Parliament considers longer detention to be justifiable.\n\nA class can well be designated with reference to the end which one desires to secure, and the matters referred to as classes (a)\n\n19.~0\n\nA. K. Gopa/1J11\n\nTill State\n\nPa11J11jali Saslri ].\n\n.4. Ir. Gop.Ian\n\nTJ..Sta11\n\nPatmijali Sastri ].\n\nand (b) of sub-section ( 1) of section 12 being clearly the objects which Parliament desired to secure by enacting the section, it seems to me that the classification with reference to such general aims does not contravene article 22 (7)·\n\nIt was argued that Parliament did not, in enacting section 12, perform its duty of prescribing both the circumstances and the class or classes of cases where detention without obtaining the advisory board's opinion could be for a period longer than three months.\n\nThe use of the. disjunctive \"or\" between the word \"circumstances\" and the words \"class or classes of cases\" showed, it was said, that Parliament proceeded on the view that it need not prescribe both.\n\nThis was in contravention of article 22 (7) which used the conjunctive. \"and\" between those words.\n\nThere is no substance in this objection.\n\nAs I read article 22 (7) it means that Parliament may prescribe either the circumstances or the classes of cases or both, and in enacting section 12 Parliament evidently regarded the matters mentioned in clause (a) and (b) of sub-section ( 1) as sufficiently indicative both of the circumstances under which and the classes in which a person could be detained for the longer period.\n\nTo say, for instance, that persons who are likely to act prejudicially to the defence of India may be detained beyond three months is at once to \"prescribe a class of persons in which and the circumstances under which\" a persnn may be detained for the longer period. In other words, - the classification itself may be such as to amount to a sufficient description of the circumstances for purposes of clause (7).\n\nThe circumstances which would justify precautionary detention beyond three months without recourse to an advisory board must be far too numerous for anything approaching an exhaustive enumeration, and it can, in my judgment, be no objection to the validity of section 12 that no circumstances arc mentioned apart from the matters 11Cferred to in clauses (a) and (b) of sub-section (1).\n\nIt would\n\ninded be singular for the Court to strike down a parliamentary enactment because in its opinion a\n\ncertain classification therein made is imperfect or the mention of certain circumstances is unspecific or inadequate.\n\nLastly, Mr. Nambiar turned his attack on section 14 which prohibits the disclosure of the grounds of detention communicated to the person detained and of the representation made by him against the order of detention, and debars the Court from allowing such disclosure to be made except for purposes of a prosecution punishable under sub-section (2) which makes it an offence for any person to disclose or publish such grounds or representation without the previous authorisation of the Central Government or the State Government as the case may be. The petitioner complains that this provision nullifies in effect the rights conferred upon him under clause (5) of article 22 which entitles him to have the grounds of his detention communicated to him and to make a representation against the order. If the grounds arc too vague to enable him to make any such representation, or if they are altogether irrelevant to the object of his detention, or are such as to show that his detention is not bona fide, he has the further right 6f moving this Couri and this remedy is also guaranteed to him under article 32.\n\nThese . rights and remedies, the petitioner submits, cannot be effectively exercised, if he is prevented on pain of prosecution, from disclosing the grounds to the Court.\n\nThere is great force in this contention.\n\nAll that the Attorney-General could say in an$Wer was that if the other provisions of the Act were held to be' valid, it would not be open to the Court to examine the sufficiency of the grounds on which the executive authority was \"satisfied\" that detention was necessary, as laid down in Machindar Sliivap Mahar v. The King ( 1 ), and so the petitioner could not complain of any infringement of his rights by reason of section 14 which enacted only a rule of evidence.\n\nThe argument overlooks that it was recognised in the decision referred to above that it would be open to the Court to examine the grounds of detention in order to. sec whether they were relevant to the object which the legislature had\n\n(') [1949] F. C.R. 827.\n\n..t. K. Gopa/41.•\n\nTluSUU\n\nP\"\"'11jali Sa.dri ].\n\nA. K. Gopalan\n\nTM State\n\nMa/w.jan].\n\nin view, such as, for instance, the prevention of acts prejudicial to public safety and tranquillity, or were such as to show that the detention was not bona fide.\n\nAn examination of the grounds for these purposes is made impossible by section 14, and the protection afforded by article 22 (5) and article 32 is thereby rendered nugatory. It follows that section 14 contravenes the provisions of article 22 (5) and article 32 in so far as it prohibits the person detained from disclosing to the Court the grounds of his detention communicated to him by the detaining authority or the representation made by him against the order of detention, and prevents the Court from examining them for the purposes aforesaid, and to that extent it must be held under article 13 (2) to be void.\n\nThis however, does not affect the rest of the Act which is severable.\n\nAs the petitioner did not disclose the grounds of his detention pending our decision on this point, he will now be free to seek his remedy, if so advised, on the basis of those grounds.\n\nIn the result, the application fails and is dismissed.\n\nMAHAJAN J.-The people of India having solemnly resolved to constitute India into a Sovereign Democratic Republic on the 26th day of November 1949 gave to themselves a Constitution which came into force on the 26th January 1950.\n\nThis is the first case in which this Court has been called upon to determine how far the Constitution has secured personal liberty to the citizens of this country.\n\nA. K. Gopalan, the petitioner, who was already under the custody of the Superintendent, Central Jail, Cuddalore, was served with an order of detention under section 3 ( l) of the Preventive Detention\n\nA~~, 1950 (Act IV of 1950) on the 27th February 1950. It was said in the order that the Governor of Madras was satisfied that it was necessary to make the order with a view to preventing him from acting in any manner prejudicial to the security of the State and the maintenance of public order. On 20th March 1950 a petition was presented to this Court under article 32\n\nof the Constitution praying for the issue of a writ of habeas corpus directing the State of Madras to produce him before the Court and to set him at liberty. A writ was accordingly issued. The return to the writ is that the detention is legal under Act IV of 1950, enacted by Parliament. The petitioner contends that the Act abridges and infringes certain provisions of Part III of the Constitution and is thus outside the constitutional limits of the legislature and therefore void and unenforceable.\n\nThe matter is one of great importance both because the legislative power expressly conferred by the 7th Schedule has been impugned and because the liberty of the citizen is seriously affected The decision of the question whether Act IV of 1950. takes away or abridges the rights conferred by Part !J III of the Constitution depends on a consideration of J two points :\n\n(1) In what measure has the Constitution secured personal liberty to a citizen of India, and\n\n(2) has the impugned legislation in any way taken away or abridged the rights so secured and if so, to what extent ?\n\nAct IV of 1950 provides for preventive detention in certain cases and it has been enacted as a temporary measure. It will cease to have effect on 1st April 1951. It empowers the Central Government and the State Governments to make an order directing a person to be detained with a view to preventing him from acting in any manner prejudicial to the defence of India, the relations of India with foreign powers or the security of India. It also gives power to detain a person who acts in any manner prejudicial to the security of the State or the maintenance of public order or the maintenance of supplies and services essential to the community.\n\nIt came into force on 26th February 1950 and was enacted by virtue of the powers conferred on Parliament by article 22 clause (7) of Part III of the Constitution read with the entries in the 7th Schedule. There can be no doubt that the legislative will expressed herein\n\nA. K. (' , paian\n\nTM State\n\nMahqian].\n\nA. K. Gopalan\n\nT/reStau\n\nMahajan].\n\nwould be enforceable unless the legislature has failed to keep within its constitutional limits. It is quite obvious that the Court cannot declare a statute unconstitutional and void simply on the ground of unjust and oppressive provisions or because it is supposed to violate natural, social or political rights of citizens unless it can be shown that such injustice is prohibited or such rights are guaranteed or protected by the Constitution. It may also be observed that an Act cannot be declared void because in the opinion of the Court it is opposed to the spirit supposed to pervade the Constitution but not so expressed in words. It is difficult on any generaf principles to limit the omnipotence of the sovereign legislative power by judicial interposition except in so far as the express words of a written Constitution give that authority. Article 13(2) of our Constitution gives such an authority and to the extent stated therein. It says that the State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall to the extent of the contravention be void.\n\nPreventive detention laws are repugnant to democratic constitutions and they cannot be found to exist in any of the democratic countries of the world. It was stated at the Bar that no such law was in force in the United States of America.\n\nIn England for the first time during the first world war certain regulations framed under the Defence of the Realm Act provided for preventive detention at the satisfaction of the Home Secretary as a war measure and they ceased to have effect at the conclusion of hostilities. The same thing happened during the\n\nsecod world war.\n\nSimilar regulations were introduced during the period of the war in India under the Defence of India Act. The Government of India Act, 1935, conferred authority on the Central and Provincial Legislatures to enact laws on this subject for the first time and since then laws on this subject have taken firm root here and have become a permanent part of the statute book of this country.\n\nCuriously enough this subject has found place irl the Constitution in the\n\nchapter on Fundamental Rights. Entry 9 of the Union List and Entry 3 of the Concurrent List of the 7th\n\nSchedule mention the scope of legislative power of Parliament in respect of this topic. The jurisdiction, however, to. enact these laws is subject to the provisions of Part III of the Constitution Article 22 in this Part provides :-\n\n\" ( 1) No person who is arrested shal~ be detained in custody without being informed, as soon as may be, of the grounds for such arrest nor shall he be denied the right to consult, and to be defended by, a legal practitioner of is choice.\n\n(2) Every person who is arrested and detained in cust9f article 21 of the Constitution. This article provides that no person shall be deprived of life or liberty except according to procedure established by law.\n\nIt was contended that in substance the article laid down that no person will be deprived of life or liberty without having been given a fir trial or a fair hearing and that unless a law of preventive detention provided such a hearing that law would be in contravention of this article and thus void. Conceding for the sake of argument (but without expressing any opinion on it) that this contention of the learned counsel is correct, the question arises whether there is anything in article 22 which negatives the application of article 21 as above construed to a law on preventive detention.\n\nIn my opinion, sub-clause\n\n(5) of article 22 read with clauses (1) and (2) leads to the inference that the contention raised by the learned counsel is unsound.\n\nClause (5), as already stated, provides that notice has to be given to a detenu of the grounds of his detention. It also provides a limited hearing inasmuch as it gives him an opportunity to\n\nestablish his innocence. As, in my .opinion. the consideration of a representation made by a detained person by an unbiassed authority is implicit in clause (5), it gives to the detained person all that he is entitled to under the principles of natural justice. The right to consult and to be represented by a counsel of his own choice has been denied in express terms to such a person by the Constitution. He is also denied an opportunity of appearing before a magistrate. When the Constitution has taken away certain rights that ordinarily will be possessed by a detained person and in substitution thereof certain other rights have been conferred on him even in the matter of procedure, the inference is clear that the intention was to deprive such a person of the right of an elaborate procedure usually provided for in judicial proceedings.\n\nOla use ( 6) of article 22 very strongly supports this conclusion.\n\nThere would have been no point in laying - cratic Constitution. Such a law also may have some justification even without the requirement of an advisory board to meet certain defined dangerous situations or to deal with a class of people who are a .danger to the State but without such limitation the law would be destructive of all notions of personal,, liberty.\n\nThe Constitution must be taken to have-,\\ furnished an adequate safeguard to its citizens when it laid down certain conditions in clause (7) and_ it could not be considered that it provided no safeguard to them at all and that the words used in clause (7) were merely illusory and had no real meaning.\n\nSection 14 of Act IV of 1950 has been impugned on the ground that it contravenes ruid abridges the provisions of articles 22 (5) and 32 of the Constitution. This section is in these terms :-\n\nA. K. Gopalan\n\nThe Stau\n\nMahaj\"\" J.\n\nA. K. G•polan\n\nThe Stale\n\nMaliDjan :J.\n\n\" ( 1) No Court shall except for the purposes ot a prosecution for an offence punishable under subsection (2), allow any statement to be . made, or any evidence to be given, before it of the substance of any , communication made under section 7 of the grounds on which a detention order has been made against any person or of any representation made by him against such order, and 11otwithstanding anything contained in any other law, no Court shall be entitled to require any public officer to produce before it, or to disclose the substance of, any such communication or representation made, 'or the proceedings of an advisory board or that part of the report of an advisory board which is confidential.\n\n(2) It shall be an offence punishable with imprisonment for a terru which may extend to one year, or with fine, or with both, for any person to disclose or publish without the previous authorisation of the Central Government or the State Government, as the case may be, any ccmtents or matter purporting to be contents of any such communication or representation as is referred to in sub-section ( l):\n\nProvided that nothing in this sub-section shall apply to a disclosure made to his legal adviser by a person who is the subject of a detention order.\"\n\nThis section is in the nature of an iron curtain around the acts of the authority making the order of preventive detention. The Constitution has guaranteed\n\nto the detained person the right to, be told the grounds {/of detention. He has been given a right to make a representation [ vide article . 22 (5) ], yet section 14 prohibits the disclosure of the ground~ furnished to him or the coptents of the representation made by him in a Court of law and makes a breach of this injunction punishable with imprisonment.\n\nArticle 32 ( 1) of the Constitution if. in these terms:- ' \"The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by this Part is guaranteed.\"\n\nSub-sectien (4) says:- \"The right guaranteed by this article shall not be suspended except as otherwise provided for by this Constitution.\" Now it is quite clear that if an authority passes an order of preventive detention for reasons not connected with any of the six subjects mentioned in the 7th Schedule, this Court can always declare the detention illegal and release the detenu, but it is not possible for ' this Court to function if there is a prohibition against disclosing the grounds which have been erved\n\nupon him. It is only by an examination of the grounds that it is possible to say whether the grounds fall within the ambit of the legislative power contained in the Constitution or are outside its scope. Again something may be served on the detenus as being grounds which are not grounds at all. In this contingency it is the right of the detained person under article 32 to move this Court for enforcing the right under article 22(5) that he be given the real grounds on which the detention order is based. This Court would be. disabled from exercisil).g its functions under article 32 and adjudicating on the p9int that the ·. grounds given satisfy the requirements of the sub-clause if it is not open to it to see the grounds that have been furnished. It is a guaranteed right of the person detained to have the very grounds which are the basis of the order of detention.\n\nThis Court would be entitled to examine the matter and to see whether the grounds furnished are the grounds on the basis of which he his been detained or they contain some other vague or irrelevant material.\n\nThe whole purpose of furnishing a detained person with the grounds is to enable him to make a representation refuting these grounds and of proving his innocence.\n\nIn order that this Court may be able to safeguard this fundamental righc and to grant him relief it is absolutely essential that the detenu is not prohibited under penalty of punishment to disclose the grounds to the Court and no injunction by law can be issued to this Co1 rt disabling it from having a look at the grounds.\n\nSection 14 creates a substantive offence if the irrounds are disclosed and it also lays a duty on the Court not 11-3 S. C. India/58\n\nA. K. Gol'Jl1J11\n\nTire State\n\nMahajan].\n\nA. 1(. G•palan\n\nT 1\" Siok\n\nMahajan]. -\n\nMu/c\"'1; iea].\n\nto permit the disclosure of such grounds.\n\nIt virtually amounts to a suspension of a guaranteed right provided by the Constitution inasmuch as it indirectly by a stringent provision makes administration of the law by this Court impossible and at the same time it deprives a detained person from obtaining justice from this Court. In my opinion, therefore, this section when it prohibits the disclosure of the grounds contravenes or abridges the rights given by Part III to citizen and is ultra vires the powers of Parliament to that extent.\n\nThe result of the above discussion is that, in my <,>pinion, sections 12 and 14 of Act IV of 1950 as above indicated are void and the decision of the detenu's case has to be made by keeping out of sight these two provisions in the 'l'\\ct. If sections 12 and 14 are deleted from 'the impugned legislation, then the result is that the detention of the petitioner is not legal. The statute has not provided for detention for a period of three months or less in such cases as it could have done under article 22(4) of the Constitution and that being so, the petitioner cannot be justifiably detained even for a period of three months. I would accordingly order his release.\n\nIn view of the decision above arrived at I do not consider it necessary to express any opinion on the other points that were argued at great length before us, namely, (1) what is the scope and true meaning of the expression \"procedure established by law\" in article 21 of the Constitution, and , (2) what is the precise scope of articles 19(1) (d) and 19(5) of the Constitution.\n\nMuKHERJEA J.-This is an application under article 32 of the Constitution praying for a writ of habeas corpus upon the respondents with a view to release the petitioner who, it is alleged, is being unlawfully detained in the Central Jail, Cuddalore, within the State of Madras.\n\nThe petitioner, it is said, was initially arrested in Malabar on 17th of December, 1947, and prosecution was started against him on various charges for having\n\nS, C.R.\n\n~UPREME COURT REPORTS 245\n\ndelivered certaiq violent speeches. While these criminal\n\ncase~ were going on, he was served with an order of detention under the Madr.as Maintenance of Public Order Act on 22nd April, 1948. This order of detention was held to be illegal by the Madras High Court, but 011 the same day that the judgment was pronounced, a second order of detention was served upon him. On his moving the High Court again for a writ of habeas corpus in 1espect to the subsequent order, his application was dismissed on the ground that as he was riot granted bail in one of the three criminal cases that were pending against him, the detention could not be said to be unlawful. Liberty,. however, was given\n\nto him to renew his application if and when his detention under the criminal proceedings ceased. In two out of the three criminal cases the trial before the magistrate ended on February 23, 1949, and the petitioner was sentenced to rigorous imprisonment for 6 months in each of the cases. These sentences however, were set aside in appeal on 26th September, 1949.\n\nAs regards the third case he was tried by the Sessions Judge of North Malabar and sentenced to rigorous imprisonment for 5 years but this sentence was redi1ced to 6 months' imprisonment by the Madras High Court on appeal. The petitioner made a fresh application to the High Court praying for a writ of habeas corpus in respect of his detention under the Madras Maintenance .of Public Order Act and this application, which was heard after he had served out his sente11-ces of imprisonment referred to above, was dismissed in January, 1950.\n\nOn 25th February, 1950, the Preventive Detention Act wa:s passed by the Parliament and on the 1st of March following, the detention of 'the applicant under the Madras Maintenance of Public Order Act was cancelled and he was served with a fresh order of detention under section 3(1) of the Preventive Detention Act\n\n1950. On behalf of he respndents the detention of the petitioner is sought to be justified on the strength of the Preventive Detention Act of 1950.\n\nThe position taken up on behalf of the petitioner on the other hand is that the said Act is invalid and ultra vires the constitution by reason of its being in conflict with certain\n\n19.'iO\n\n.d. K. GoJa!IJn\n\nTiu S1a11\n\nMukherjea ].\n\nA. K. Gopalan\n\nThe State\n\nMukherjeaJ.\n\nfundamental rights which are guaranteed by the Constitution. It is argued, therefore, that the detention of the petitioner is invalid and that he should be set at liberty.\n\nThe contentions that have beel put forward by Mr. Nambiar who appeared in support of the petition, may be classified under four heads.\n\nHis first contention is that as preventive detention is, in substance, a restriction on the free movements of a person throughout the Indian territory, it comes within the purview of article 19(1)\n\n(d) of Part III of the Constitution which lays down the fundamental rights. Under clause (5) of the article, any restriction imposed upon this right of free movement must be reasonable anm\" to do particular things. There is also no question of imposing limits on the activities of ihdividuals so far as the exercise of these rights is concerned. For these reasons, I think, these rights have not been mentioned in article 19 of the Constitution. An individual can be deprived of his life or personal liberty only by action\n\nof the State, either under the provisions of any penal enactment or in the exercise of any other coercive process vested in it under law. What the Constitution dqes therefore is to put restrictions upon the powers of the State for protecting the rights of the individuals. The restraints on State authority operate as guarantees of individual freedom and secure to the people the enjoyment of life and personal liberty which are thus declared to be inviolable except in the manner indicated in these articles.\n\nIn my opinion, the group of articles 20 to 22 embody the entire protection guaranteed by the Constitution in relation to deprivation of life and personal liberty both with regard to substantive as well as to procedural law~--I! is not correct to say,. as I shall show more fully later on, that article ..21 is confined to matters of procedure only.\n\nThere must be a substantive law, under which the State is empowered - to deprive a man of his life and personal liberty and such law must be a valid law which the legislature is competent to enact within the limits of the powers assigned to it and which does not transgress any of the fundamental rights that the Constitution lays down. Thus a person cannot be convicted or punished under an ex post facto law, or a law which compels the accused to incriminate himself in a crimin.al trial or punishes him for the same offence more than once. These are the protections provided for by. article 20. Again a law providing for arrest and detention must conform to the limitations prescribed by clauses (1) and (2) or article 22. These provisions indeed have been withdrawn expressly in case of preventive detention and protections of much more feeble and attenuated character have been substituted in their place; but this is a question of the policy adopted by the Constitution which does not concern us at all. The position, therefore, is that with regard to life and personal liberty, the Constitution guarantees protection to this extent that no man could be deprived of these rights except under a valid law passed by a competent legislature within the limits mentioned above and in accordance with the procedure which such law lays down.\n\nArticle 19, on the other hand,\n\n19~0\n\nA. K. Gopalan v.\n\nThe State\n\nMukherjea J,\n\nA. K. Gopalan\n\nThe State\n\nMukhtl}aa J.\n\nenunciates certain particular forms of civil liberty quite independently of the rights dealt with under article\n\n21. Most of them may be connected with or dependent upon personal liberty but are not identical with it ; and the purpose of article 19 is to indicate the limits within which the State could,. by legislation, impose restrictions on the exercise of these rights by the individuals. The reasonableness or otherwise or such legislation can indeed be determined by the Court to the extent laid down in the several clauses or article 19, though no such review is permissible with regard to laws relating to deprivation of life and personal liberty.\n\nTh.is may be due to the fact that life and personal freedom constitute the most vital and essential rights which people enjoy under any State and in such matters rhe precise and definite expression of • the intention of the legislature has been preferred by the Constitution\\ to the variable standards which the judiciary might lay down. We find the rights relating to personal liberty being declared almost in the same terms in the Irish Constitution article 40 (1) (4) (1) of which lays down that \"no citizen shall be deprived of his personal liberty save in accordance with law.\" In the Constitution of the Free City of Danzig, \"the liberty of the person has been declared to be inviolable and no limitation or deprivation of personal liberty may be imposed by public authority except by virtue of a law\" ( vide article 74). Article 31 of the Japanese Constitution is the closest parallel to article 21 of the Indian Constitution and the language is almost identical.\n\nThis is the scheme adopted by the Constitution in dealing with the rights to freedom described in the chapter on fundamental rights and fo my opinion, therefore, the proper tst for delermining the validity of an enactment llnder which a person is sought to be deprived of his life and personal liberty has to be found not in article 19, but in the three following articles of the Constitution. Article 20 of course has no application so far as the law relating to preventive detention is concerned.\n\nMr. Nambiar's endeavour throughout has been to\n\nestablish that article 19 ( 1) ( d) of the Constitution read with article 19 (5) enunciates the fundamental rights of the citizens regarding the substantive law of personal liberty, while article 21 embodies the protection as regards procedural !_aw. This, in my opinion, would be looking at these; provisions from a wrong angle altogether, Article 19 cannot be S, flid to deal with substantive law merely, nor article 21 with mere matters of procedure.\n\nIt cannot also be said that the provisions of article 19(1) (d) read with clause (5) and article 21 are complementary to each other.\n\nThe contents and subject matter of the two provisions are not indentical and they proceed on totally different principles.\n\nThere is no mention of any \"right to life\" in article 19, although that is the primary and the most important thing for which provision is made in article 21. If the contention of the learned counsel is correct, we would have to hold /that no protection is guaranteed by the Constitution as regards right to life so far as substantive law is concerned. In the second place; even if freedom of movement may be regarded as one of the ingredients of personal liberty, surely there are other elements included in the concept and admittedly no provision for other forms of personal liberty are to be found in article 19(5) of the Constitution. Furthermore article 19 is applicable to citizens only, while the rights guaranteed by article 21 are for all persons, citizens as well as aliens. The only proper way of\n\navoiing these anomalies is to interpret the two provisions as applying to different subjects and this would . be the right conclusion if we have in mind the scheme which underlies this group of articles.\n\nI will now turn to the language of article 19(1) (d) and see whether preventive detention really comes within its purview. Article 19(1) (d) provides that all citizens shall have the i; ight to move freely throughout the territory of India. The two sub-clauses which come immediately after sub-clause (d) and are intimately conn\\!cted with it, are in these terms:\n\n\"(e) To reside and settle in any part. of the territory of India;\n\nA. K. Copa/an v.\n\nThi State\n\nMukhejea ].\n\nA. IC Gopalan\n\nTire si.11\n\nMulfuk/rerfaa J.\n\nother countries.\n\nIt will be seen that sub-clauses (d), ( e) and ( f) of article 19 ( 1) are embodied in almost identical language in one single article viz., article 75 of the Constitution of the Free City of Danzig. The article runs as follows :\n\n\"All nationals shall enjoy freedom of movement within the free city and shall have the right to stay and to settle at any place they .may choose, to acquire real property and to earn their living in any wav.\n\nThis right shall not be curtailed without legal sanctions.\"\n\nThe several rights are thus mentioned together as being included in the same category, while they are differentiated from the \"liberty of the person\" which is \"described to be inviolable except by virtue of a law\" in article 74 which appears just previous to this article. An analogous provisions in slightly altered language occurs in article 111 of the Constitution of the German Reich which is worded in the following manner:\n\n\"All Germans enjoy the right of change of .domicile within the whole Reich. Every one has the right to stay in any part of the Realm that he chooses, to settle there, acquire landed property and pursue any means of livelihood.\" Here again the right to personal liberty has been dealt with serarately in article\n\n114. A suggestion was made in course of our discussions that the expression \"throughout the territory of India\" occurring in article 19 ( 1) ( d) might have been used with a view to save Passport Regulations or to emphasise that no rights of free emigration are guaranteed by the Constitution. The suggestion does not seem to me to be proper. No State can guarantee to its citizens the free right to do anything outside its own territory.\n\nThis is true of all the fundamental rights mentioned in article 19 and not merely of the right of free movement. Further it seems to me that the words \"throughout the territory of India\" have nothing to do with rights of emigration.\n\nWe find that both in the Danzing as well as in the German Constitution, where similar words have been used with regard to the exercise of the riht of free movement throughout the\n\nterritory, there are specific provisions which guarantet to all nationals the free right of emigration to othe• countries ( vide article 76 of the Danzing Constitution and article 112 of the Constitution of the German Reich).\n\nIn my opinion, therefore, preventive detention does not come either within the express language 01 within the spirit and intendment of clause ( 1) ( d) of article 19 of the Constitution which deals with a totally different aspect or form of civil liberty.\n\nIt is true that by reason of preventive detention, a man may be prevented from exercising the right of free movement within the territory of India as contemplated by article 19(1) (d) of the Constitution, but that is merely incidental to or consequential upon loss of liberty resulting from the order of detention.\n\nNot merely the right under clause ( 1) ( d), but many of the other rights which are enumerated under the other sub-clauses of article 19 (1) may be lost or suspended so long as preventive detention continues.\n\nThus a detenu so long as he is under detention may not be able to practise any profession, or carry on any trade or business which he might like to do; but this would not make the law providing for preventive detention a legislation taking away or abridging the rights under article 19 (1)' (g) of the Constitution and it would be. absurd to suggest that in such cases the validity of the legislation should be tested in accordance with the requirement of clause (6) of article 19 and that the only restrictions that could be placed upon the person's free exercise of trade and profession are those specified in that clause.\n\nMr. Nambiar concedes that in such cases we must look to the substance of the particular legislation and the mere fact that it incidentally trenches upon some other right to which it does not directly relate is not material.\n\nHe argues, however, that the essence or substance of a legislation which provides for preventive detention is to take away. or curtail the right of free movements and in fact, \"pr.rsonal liberty\" according to him, connotes nothing else but unrestricted right of locomotion.. 'The learned counsel refers in this connection to certain passages in 13lackstone's Commentaries on the Laws of England, where\n\n19:;0\n\nA. K. Gopalan\n\nTlte Stat1\n\nMukherjea J.\n\nA. Ir. Gopalan\n\nTire State\n\nMukherjta J.\n\nthe author discusses what he calls the three absolute rights inherent in every Engiishman, namely, rights of personal security, personal liberty and property. \"Personal security'', according to Blackstone, consists in a person's legal and uninterrupted enjoyment of his life, his limb, his body, his health and his reputation; whereas \"personal liberty\" consists in the power of locomotion, of changing of situation or moving one's person to whatsoever place one's own inclination may direct without imprisonment or restraint unless by due course of law ( 1 ).\n\nIt will be seen that Blackstone uses the expression \"personal liberty\" in a somewhat narrow and restricted sense.\n\nA much wider and larger connotation . is given to it by later writers on constitutional documents, particularly in America. In ordinary language \"personal liberty\" means liberty relating to or concerning the person or body of the individual; and \"persooal liberty\" in this .sense is the antithesis of physical restraint or coercion.\n\nAccording to Dicey, who is an acknowledged authority on the subject \"personal liberty\" means a personal right not to be subjected to imprisonment, arrest or other physical coercion in anv manner that does not admit of legal justification ( 1 ).\n\nIt is, in my opinion, this negative right of not being subjected to any form of physical restraint or coercion that constitutes the essence of personal liberty and not mere freedom to move to any part of the Indian territory.\n\nln this connection, it may not be irrelevant to point out that it was in accordance with the recom mendation of the Drafting Committee that the word \"personal\" was inserted before \"liberty\" in article 15 of the Constitution which now stands as article 21.\n\nIn the report of the Drafting Committee it is stated that the word \"liberty\" should be qualified by the insertion of the word \"personal\" before it; otherwise, it might be construed very widely so as to include even the freedoms already dealt with in article 13. Article 13, it should be noted, is the present article 19. If the views of the Drafting Committee were accepted by th~\n\n(1) Vide Chase's Blackstone, \"th Edn .. pp. 68, 73. (2) Vide Dicey on Constitutional Law, 9th Edn. pp. 207 208.\n\n....\n\nConsituent Assembly, the intention obviously was to exclude the contents of article 19 from the concept of \"personal liberty\" as used in article 21.\n\nTo what extent the meaning of words used in the Constitution could be discovered from reports of Drafting Committee or debates on the floor of the House is a matter not quite free from doubt and I may have to take up this matter later on when discussing the meaning of the material clause in article 21 of the Constitution.\n\nIt is enough to say at this stage that if the report of the Drafting Committee is an appropriate material. upon which the interpretation of the words of the Constitution could be based, it certainly goes against the contention of the applicant and it shows that the words used in article 19 ( 1) ( d) of the Contitution do not mean the same thing as the expression \"personal liberty\" in article 21 does.\n\nIt is well known that the word \"liberty\" standing by itself has been given a very wide meaning by the Supreme Court of the United States of America.\n\nIt includes not only personal freedom from physical restraint but the right to the free . use of one's own property and to enter into free contractual relations.\n\nIn the Indian Constitution, on the other hand, the expression \"personal liberty\" has been deliberately used to restrict it to freedom from physical restraint of person by incarceration or otherwise.\n\nApart from the report of the Drafting Committee, that is the plain grammatical meaning of the expression as I have already explained. It may not, I think, be quite accurate to state that the operation of article 19 of the Constitution is limited to free citizens only and that the rights have been described in that article on the presupposition that the citizens are at liberty: The deprivation of personal liberty may entail as a consequence the loss or abridgement of many of the rights described in article 19, but that is because the nature of these rights is such that free exercise of them is not possible in the . absence of personal liberty.\n\nOn the other hand _the right to hold and dispose of property which is in subclause (£) of article 19 (1) and wbich is not dependent on full possession of person:)! liberty_ by the owner may\n\nA. K. Gopalan v.\n\nTluStau\n\n-Muklurjea ].\n\nA. K. Gopalan\n\nThe State\n\nMuk\"4rjea J.\n\nnot be affected if the owner is imprisoned or detained.\n\nAnyway, the point is not of much importance for purposes of the present discussion. The result is that, in my opinion, the first contention raised by Mr. Nambiar cannot succeed and it must be held that we are not entitled to examine the reasonableness or otherwise of the Preventive Detention Act and see whether it is within the permissible bounds specified in clause (5) of article 19.\n\nI now come to the second point raised by Mr.\n\nN\"ambiar in support of the application; and upon this point we had arguments of a most elaborate nature addressed to us by the learned counsel on both sides, displaying a considerable amount of learning and research.\n\nThe point, however, is a short one and turns upon the interpretation to be put upon article 21 of the Constitution, which lays down that \"no person shall be deprived o_f his ........ personal liberty, except according to procedure established by law.\" On a plain reading of the article the meaning seems to be that you cannot deprive a man of his personal liberty, unless you follow and act according to the law which provides for deprivation of such liberty. The expression \"procedure\" means the manner and form of enforcing the law.\n\nIn my opinion, it cannot be disputed that , in order that there may be a legally established\n\nprocedre, the law which establishes it must be a valid and lawful law which the legislature is competent to enact in accordance with article 245 of the Constitution and the particular items in the legislative lists which it relates to. It is also not disputed that such law must not offend against the fundamental rights which are declared in Part III of the Constitution.\n\nThe position taken up by the learned Attorney-General is that as in the present case there is no doubt about the competency of that Parliament to enact the law relating to preventive detention which is fully covered by Item 9 of List I, and Item 3 of List III, and as no question of the law being reasonable or otherwise arises for consideration by reason of the fact that article 19 ( 1) ( d) is not attracted to this case, the law must be held to be a valid piece of legislation and if the procedure\n\nlaid down by it has been adhered to, the validity of the detention cannot possibly be challenged.\n\nHis further argument is that article 22 specifically provides for preventive detention and lays down fully what the requirements of a legislation on the subject should be. As the impugned Act conforms to the requirements of article 22, no further question of its validity under article 21 of the Constitution at all arises.\n\nThe latter aspect of his arguments, I will deal with later on.\n\nSo far as the main argument is concerned, the position taken up bv Mr. Nambiar is that article 21 refers to procedure only and not to substantive law; the procedure, however, must be one which 1s established by law. The expression \"law\" m this context does not mean or signify, according to the learned counsel, any particular law enacted by the legislature in conformity with the requirements of the Constitution or otherwise possessing a binding authority.\n\nIt referes to law in the abstract or general sense-in the sense of jus and not lex-and meaning thereby the legal principles or fundamental rules that lie at the root of every system of positive law including our own, and the authority of which is acknowledged in the jurisprudence of all civilised countries.\n\nIt is argued that if the word \"law\" is interpreted in the seme of any State-made law, article 21 could not rank as a fundamental right imposing a check or limitation on the legislative authority of the Government.\n\nIt will be always competent to the legislature to pass a law laying down a thoroughly arbitrary and irrational procedure opposed to all elementary principles of justice and fairness and the people would have no protection whatsoever, provided such procedure was scrupulously adhered to. In support of this argument the learned counsel has relied upon a large number of American cases, wherethe Supreme Court of America applied the doctrine of \"due process of law\" as it appears in the American Constitution for the purpose of invalidating various legislative enactments which appeared to that Court to be capricious and arbitrary and opposed to the 'fundamental principles of law.\n\nA. K. Gopalat1\n\nThe Stale\n\nMukherjea J.\n\n.4. K. Gopalan\n\n.v.\n\nThe State\n\nMukherjea J.\n\nIt may be noted here that in the original draft of the Indian Constitution the words used in article 15 (which now stands as article 21) were \"in accordance with due process of law\".\n\nThe Drafting Committee recommended that in place of the \"due process\" clause, the. expression \"according to procedure established by law\" should be substituted.\n\nThe present article 21 seems to have been modelled on article 31 ot the Japanese Constitution, where the language employed is \"no person shall be deprived of life or liberty, nor shall any other criminal penalty be imposed, excep< according to procedure established by law\" Mr.\n\nN ambiar argues that the expression \"procedure established by law\" in article 21 of the Constitution bears the same meaning as the \"due process\" clause does in America, restricted only to this extent, viz., that it is limited to matters of procedure and does not extend to questions of substantive law. To appreciate the arguments that have been advanced for and against this view and to fix the precise meaning that is to be given to this clause in article 21, it would be necessary to discuss briefly the conception of the doctrine of \"due process of law\" as it appears in the American Constitution and the wav in which it has been developed and applied by the Supreme Court of America.\n\nIn the history of Anglo-American law, the concept of \"due process of law\" or what is . considered to be its equivalent \"law of the land\" traces its lineage far back into the beginning of the 13th Century A.O.\n\nThe famous 39th chapter of the Magna Charta provides that \"no free man shall be taken or imprisoned or di; seized, or outlawed or exiled or in any way destroyed; nor shall we go upon him nor send upon him but by the lawful judgment of his peers and by the law of the land.\" Magna Charta as a charter of English liberty was confirmcJ by successive Engiist1 monarchs and it is in one of these confirmations (28 Ed. III, Chap. 3) known as \"Statute of Westminster of the liberties of London\", that the expression \"due process of lw\" for the first time appears. Neither of these phrases was explained or dfined in any of the\n\ndocuments, but on the authority of Sir Edward Coke it may be said that both the expressions have the same meaning.\n\nIn substance, they guaranteed 'that persons should not be imprisoned without proper indictment and trial by peers, and that property should not be seized except in proceedings conducted in due form in which the owner or the persons in possession should have an opportunity to show cause why seizure should not be made (' ). These concepts came into America as part of the rights of Englishmen claimed by the colonists.\n\nThe expression in one form or other appeared in some of the earlier State Constitutions and the exact phrase \"due process of law\" came to be a part of the Federal Constitution by the Fifth Amendment which was adopted in 1791 and which provided that \"no person shall. . . . be deprived of life, liberty or property without due process of law.\" It was imposed upon the State Constitution in almost identieal language by the Fourteenth Amendment in the year 1868.\n\nWhat \"due process of law\" exactly means 1s difficult to define even at the present day. The Constitution contains no description of what is \"dur. process of law\" nor does it declare the principles by application of which it could be ascertained.\n\nIn Twining v. New Jersey ( ~) the Court observed:\n\n\"Few phrases in the law are so elusive of exact apprehension as this.\n\nThis Court has always declined to give a comprehensive