M/S KALINGA MINING CORPORATION Vs UNION OF INDIA .
Bench: SURINDER SINGH NIJJAR,H.L. GOKHALE
Case number: C.A. No.-001013-001013 / 2013
Diary number: 34302 / 2007
Advocates: S. RAVI SHANKAR Vs
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REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1013 OF 2013 [Arising out of SLP (C) NO.23141 OF 2007]
M/s. Kalinga Mining Corporation ...Appellant
VERSUS
Union of India & Ors. ...Respondents
AND
CIVIL APPEAL NO. 1014 OF 2013 [Arising out of SLP (C) NO.5130 OF 2009]
M/s. Kalinga Mining Corporation ...Appellant
VERSUS
Union of India & Ors. ...Respondents
J U D G M E N T
SURINDER SINGH NIJJAR,J.
1. Leave granted in both the Special Leave Petitions.
2. By this common judgment, we propose to dispose of
both the aforesaid appeals. The Appeal arising out of
Special Leave Petition (C) No. 23141 of 2007 has been
filed challenging the order dated 31st August, 2007
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rejecting the preliminary issue raised by the appellant
in OJC No.3662 of 2002. The Appeal arising out of
Special Leave Petition (C) No. 5130 of 2009 has
been filed challenging the final order dated 24th
November, 2008 in OJC No. 3662 of 2002 upholding
the order dated 27th September, 2001.
CIVIL APPEAL NO.1013 OF 2013 [Arising out of SLP (C) No. 23141 of 2007]
3. We may notice here briefly the facts as noticed by the
High Court.
4. On 27th October, 1953, the appellant M/s. Kalinga
Mining Corporation applied to the Government of
Orissa for a prospecting licence. This was granted by
the State Government on 15th September, 1961 in
respect of an area of 480 acres in Kalaparbat Hill
range of Keonjhar district subject to compliance of
lease stipulations. The appellant applied for the grant
of mining lease also for iron manganese ore over 420
acres in Kalaparbat Hill range of Keonjhar district. As
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the same was not considered by the State
Government, the appellant filed a revision before the
Central Government. The same was disposed of by the
Central Government on 23rd July, 1962 by
intimating the State Government that since the
prospecting licence was not granted in favour of the
appellant, the mining lease application could not be
considered. The direction was issued to the State
Government to consider the application of the
appellant for mining lease which was dated 4th
September, 1961 on merit by 1st
January, 1964. Since no decision was taken by the
State Government by stipulated date, the application
of the appellant dated 4th January, 1961 was deemed
to have been refused. By notification dated 20th July,
1965, the State Government of Orissa threw open an
area of 438.5 acres in Kalaparbat Hill Range area,
Keonjhar district for mining under Rule 58(1) of
Mineral Concession Rules, 1960 for mining in respect
of manganese and iron ore. On 10 th
September, 1965, six applicants including the
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appellant and respondent No.10 submitted their
applications for grant of mining lease in respect of the
aforesaid area. It appears that the mining lease
applications of the appellant as well as the respondent
No.10 were not disposed of by the State Government
within the statutory period, therefore, both of them
separately moved the Central Government in revision.
By an order dated 7th April, 1967, the Central
Government allowed the revision petitions of the
appellant and respondent No.10 and directed the
State Government to consider their mining lease
applications. Still no decision was taken by the State
Government, as a result of which the appellant moved
another revision petition before the Central
Government on 22nd July, 1967. The Central
Government rejected the revision of the appellant by
its order dated 13th October, 1967.
5. Being aggrieved, the appellant filed OJC No.855 of
1969 seeking a direction from the High Court for grant
of mining lease in its favour. Respondent No.10
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intervened in the aforesaid writ petition. By an order
dated 21st June, 1971, the High Court dismissed the
writ petition filed by the appellant.
6. Pursuant to the order of the Central Government
dated 7th April, 1967, the State Government on 3rd
September, 1971, for the first time, passed an order
recommending the grant of mining lease in favour of
respondent No.10 and sought the approval of the
Central Government as required under Section 5(1) of
the Mines and Minerals (Development and Regulation)
Act, 1957. The Central Government by its order dated
18th January, 1972 refused to accord its approval in
favour of respondent No.10. It appears that the State
Government on 25th April, 1972 again requested the
Central Government for grant of approval to its
recommendation made in favour of respondent No.10
Dr. Sarojini Pradhan. However, by its letter dated 29th
December, 1972, the Central Government directed the
State Government to reject the mining lease
application of Dr. Pradhan. Thereafter on 8th June,
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1973, the State Government rejected all pending
mining lease applications including the application of
appellant and Dr. Sarojini Pradhan.
7. Challenging the aforesaid order, both the appellant
and Dr. Pradhan filed the revision petitions before the
Central Government. The Central Government by its
order dated 2nd May, 1978 rejected the
revision filed by Dr. Sarojini Pradhan but allowed the
revision filed by the appellant with a direction to the
State Government to pass a fresh order on merits.
8. It appears that Dr. Pradhan filed a writ petition being
OJC No.829 of 1978 challenging the order passed by
the Central Government dated 2nd May, 1978. On 4th
September, 1987, the High Court allowed the writ
petition with the following directions :
“We direct the Central Government to reconsider the question of grant of approval for the grant of lease of iron ore and manganese in respect of the area after giving all parties concerned an opportunity of hearing. The mode and manner of hearing shall be regulated by the Central Government and it shall convey its decision by a
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speaking order, i.e. by giving reasons for the decision.”
9. We may notice here that in the aforesaid writ petition,
the appellant and the other applicants had filed
applications for intervention. However, the cases of
interveners were not considered individually by the
High Court, having regard to the directions which were
given by it. Few days after the aforesaid decision
dated 4th September, 1987, Dr. Pradhan died on 10th
September, 1987. Since at that time Dr. Pradhan was
only an applicant for the mining lease, the appellant
claims that her application was lapsed.
10. An application was filed by the legal heirs of
Dr. Pradhan for substitution in the revision filed by her
and was pending before the Central Government. In
OJC No.829 of 1978, a Miscellaneous Case No.1773 of
1988 was filed wherein the aforesaid fact of death of
Dr. Pradhan and the fact of application for substitution
of her legal heirs were considered. In the aforesaid
application, a direction was given by the High Court on
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28th April, 1988 to the Central Government to inform
the parties about the stage of revision and the date on
which the revision petition was posted for hearing. It
was made clear that the legal heirs of Dr. Pradhan
may appear before the Central Government on 16th
May, 1988 and seek directions; regarding the hearing
of revision application. With these observations, the
miscellaneous case was disposed of. Another Misc.
Case being Misc. Case No.1977 of 1988 was field in
the aforesaid OJC NO.829 of 1978. In the aforesaid
Case No.1977 of 1988, on 11th May, 1988, the High
Court passed the following order :
“Heard.
On 28.4.1988, on a complaint made by the petitioner that no action had been taken by the Central Government to implement our judgment in OJC No.829/87, we directed that the legal representatives of the deceased petitioner would appear before the Central Government on 16th May, 1988 to take steps regarding hearing. An application has now been filed stating that the legal representatives could not appear before the Central Government on that day due to difficulties stated in the petition. The counsel for the parties now agree that the legal representatives of the deceased petitioner would appear before the Central Government on the 6th of June, 1988 on which day a date of hearing shall be fixed.
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The Misc. case is disposed of accordingly.”
11. It may be noted here that in both the Misc. cases the
appellant was a party and was heard.
12. In the meantime, another matter being OJC No.1431 of
1980 was filed. In the aforesaid matter, a Division
Bench of the High Court rejected the contentions of
the State that on the death of Dr. Pradhan, her writ
petition will abate.
13. Thereafter on 11th May, 1990, the Central Government
conveyed to the State Government its approval of
grant of mining lease in favour of the legal
representatives of Dr. Pradhan. The appellant,
however, claims that no such order, with reasons, was
made available to the parties. In view of the aforesaid
approval, the State Government by its order dated 24th
May, 1990 asked the legal representatives of Dr.
Pradhan to furnish certain information and documents
regarding the grant of mining lease. By a letter
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dated 26th June, 1990, the legal representatives of
Dr. Pradhan furnished the information and documents
to the State Government. At this stage, the appellant
filed OJC No.4316 of 1990 challenging the order dated
11th May, 1990 passed by the Central Government,
even though the said order was not made available to
the parties. On 18th December, 1990
the High Court passed an interim order staying the
operation of the order of Central Government dated
11th May, 1990.
14. Whilst this controversy between the parties about the
abatement of the application of Dr. Pradhan for
mining, as also the writ petition filed by her, was
pending, a significant change took place in that on 20th
February, 1991 Rule 25A was inserted in the Minor
Concession Rules, 1961 w.e.f. 1st April, 1991. The
aforesaid rule permitted the legal representatives to
continue pressing an application for grant of mining
lease even if the applicant dies.
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15. It appears that OJC No.1269 of 1982 filed by
Dr. Pradhan challenging the order passed by the State
Government rejecting the application filed by her for
mining lease for “lime stone and Dolmite” over an
area in respect of certain other areas which are not
subject matter of the present proceedings came to be
decided on 23rd February, 1993. In this judgment, the
High Court held that Rule 25A is clarificatory in nature
and allowed the substitution of legal heirs of Dr.
Pradhan to pursue the mining application.
16. On 13th December, 1996, the High Court disposed of
OJC No.4316 of 1990 directing the State Government
to reconsider the matter and pass a fresh and
speaking order after hearing the appellant, legal
representatives of Dr. Pradhan and one M/s.
Balasore Minerals. On 8th April, 1999, the Central
Government approved the recommendations of the
State Government for grant of lease in favour of legal
representatives of Dr. Sarojini Pradhan. Thereafter,
terms and conditions were offered by the State
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Government to the legal representatives of Dr.
Pradhan on 8th July, 1999, which were accepted
by them on 20th July, 1999.
17. At this stage, the appellant filed OJC No.11537 of 1999
challenging the order dated 8th April, 1999. By
judgment dated 2nd July, 2001, the High Court allowed
the aforesaid writ petition, quashed the order of the
Central Government and remanded the matter for
fresh consideration. Relying on the order passed in
OJC No.1269 of 1982, it was held that on the death of
the original applicant Dr. Pradhan, her application for
mining lease does not abate. The Court also held that
this being a pure question of law, the issue has
become final and shall not be reopened in the hearing
before the Central Government.
18. The appellant challenged the order dated 2nd July,
2001 passed in OJC No.11537 of 1999 by filing SLP (C)
No.13556 of 2001 on the issue of allowing the legal
representatives of the deceased to be substituted in
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place of the latter. This was dismissed in limine on 24th
August, 2001. Thereafter on 26th September,
2001, the Central Government approved the
recommendations of the State Government for grant
of mining lease in favour of legal representatives of
Dr. Pradhan.
19. The appellant filed a fresh OJC No.3662 of 2002 (writ
petition) challenging the grant of lease dated 27th
September, 2001, on the basis that it constituted a
new cause of action. At this stage, according to the
appellant, another significant change took place in
that on 9th September, 2003, this Court set aside the
order passed by the High Court in OJC No.1269 of
1982 on 23rd February, 1993, which had been filed by
the legal representatives of Dr. Pradhan for certain
other areas. It was held by this Court in Saligram
Khirwal Vs. Union of India & Ors. 1 that legal heirs
cannot pursue an application for mining lease. Thus,
the interpretation placed on Rule 25A by the High
Court to the effect that it was clarificatory in nature, 1 (2003) 7 SCC 689
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was reversed by this Court. It was held that Rule 25A
was only prospective. Upon such interpretation, this
Court further observed that the legal heirs shall be at
liberty to make a fresh application in their own right.
20. On 2nd June, 2006, the High Court passed further order
in OJC No. 3662 of 2002 directing that any action
taken in connection with the grant of lease shall be
subject to the result of the writ petition. On 21st
February, 2007, the writ petition was allowed to be
amended in view of the judgment in Saligram’s case
(supra). The appellant raised a preliminary objection
relating to the maintainability of the application for the
grant of mining lease by the legal heirs of Dr. Pradhan,
contending that on the death of the original applicant,
her application for grant of mining lease abates and
the legal heirs cannot maintain the said application.
By order dated 31st August, 2007, the High Court held
that the controversy stood concluded between the
parties by the rejection of the earlier SLP (C) No.
13556 of 2001 on 24th August, 2001. It was held that
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the order dated 24th August, 2001 having attained
finality, the question of allowing the legal heirs to be
substituted for the deceased applicant had also
attained finality between the parties and would
operate as res judicata. The subsequent decision in
Saligram’s case (supra) is of no consequence.
Therefore, the preliminary objection raised by the
appellant about the maintainability of the mining lease
application by the legal heirs of Dr. Pradhan was
rejected. It is this interim order which has been
challenged in the present appeal.
21. We may further notice here that OJC No. 3662 of 2002
was ultimately dismissed by the High Court on
24th November, 2008. The dismissal of the aforesaid
writ petition was challenged by the appellant by filing
SLP (C) No. 5130 of 2009.
22. From the aforesaid narration of the facts, it becomes
apparent that only two issues arise in this appeal for
consideration viz. :
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(a) Is Rule 25A, as introduced in the Mineral
Concession Rules, 1960, w.e.f. 1st April, 1991, by
way of amendment dated 20th February, 1991,
clarificatory in nature, and hence retrospective,
or is it only prospective in nature?
(b) Whether the dismissal of the SLP on 24th August,
2001, filed by the appellant against the
judgment of the High Court dated 2nd July, 2001
in OJC No. 11537 of 1999 would attract the
principles of res judicata, so as to disentitle the
appellant from urging the invalidity of the
application of the legal heirs in place of the
deceased Dr. Pradhan, in the pending
proceedings in OJC No. 3662 of 2002, the
judgment which is the subject matter of the
present appeal?
23. We have heard the learned counsel for the parties at
length.
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24. Mr. K.K. Venugopal, learned senior counsel appearing
for the appellant, submitted that the dismissal of the
earlier SLP on the preliminary issue will not act as a
bar against the SLP challenging the order passed at
the final stage. He submitted that in SLP (C) No.
13556 of 2001, this Court did not entertain the
challenge against the order of the High Court
permitting the legal heirs of Dr. Pradhan to be
substituted for her and to pursue the litigation with
regard to the mining lease. In support of this
submission, the learned counsel relied on The
Chamber of Colours and Chemicals (P) Ltd. Vs.
Trilok Chand Jain 2 , Taleb Ali & Anr. Vs. Abdul Aziz
& Ors. 3 , and Shah Babulal Khimji Vs. Jayaben D.
Kania & Anr. 4 He further submitted that the principle
of res judicata would not be applicable when the law is
subsequently declared contrary to the law earlier
declared, on the basis of which the decision was given
which is sought to be reopened. In support of this
proposition, he relies upon the law laid in cases of
2 (1973) 9 DLT 510 Para 6 3 AIR 1929 Cal 689 Para 38 4 (1981) 4 SCC 8 Paras 55 and 78
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Mathura Prasad Bajoo Jaiswal & Ors. Vs. Dossibai
N.B. Jeejeebhoy 5 , Nand Kishore Vs. State of
Punjab 6 , Sushil Kumar Mehta Vs. Gobind Ram
Bohra (Dead) Through His LRs 7 , and
Kunhayammed & Ors. Vs. State of Kerala & Anr. 8
25. In Kunhayammed (supra), it was held that the
dismissal in limine is not a decision on merits, it is only
an expression of opinion that the Court would not
exercise jurisdiction under Article 136 (Paras 14, 16
and 17). Additionally in the written submissions, the
learned counsel has also relied upon the judgment in
the case of Saligram (supra). On the basis of this
judgment, it was submitted that upon the death of an
applicant for mining lease, the application abates and
the legal heirs would have no legal right to step into
the shoes of the deceased applicant, and that such an
application would be non est in the eyes of law. If so,
any recommendation for grant of mining lease to the
5 (1970) 1 SCC 613 6 (1995) 6 SCC 614 para 17 7 (1990) 1 SCC 193 para 26 8 (2000) 6 SCC 359
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legal heirs, or approval of such recommendation of the
Central Government, would be mere nullities in the
eyes of law. He relied on paragraphs 11 and 12 of the
judgment. Learned senior counsel further submitted
that the judgment in Saligram’s case (supra)
involved an interpretation of the statutory Rule 25A.
Such an interpretation is in the realm of public law. It
would, therefore, be a judgment in rem. Principle of
res judicata would have no application in such a case.
In support of this proposition, learned senior counsel
relied on the judgment of this Court in U.P. Pollution
Control Board & Ors. Vs. Kanoria Industrial Ltd.
& Anr. 9 He submitted that the law declared in the
aforesaid judgment would necessarily apply to any
pending case where the issue is a live one. The
contrary interpretation placed on Rule 25A by the High
Court in the earlier proceedings would be of no
consequence. An application which is non est and the
order made thereon in favour of the legal heirs is a
mere nullity, in the eyes of law, and cannot be treated
as a valid application in the pending writ petition OJC 9 (2001) 2 SCC 549 Para 18
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No. 3662 of 2002. Mr. Venugopal further
submitted that the legal position was made clear by
this Court even before insertion of Rule 25A in the
case of C. Buchi Venkatarao Vs. Union of India &
Ors. 10 .
26. Mr. Dushyant Dave, learned senior counsel for the
respondent No. 10 submits that in the facts and
circumstances of this case, it is not open to the
appellant to question the status of the LRs of
respondent No. 10 on the basis of the “order” in the
case of Saligram Khirwal (supra).
27. Learned senior counsel submits that the case of
Saligram Khirwal (supra) is merely an order and
not a judgment. There is no declaration of law in the
case of Saligram Khirwal (supra). In fact, this Court
has not interpreted Rule 25A of the Rules in the
aforesaid order. The order makes it clear that Rule
25A, on its plain reading does not have any
applicability to the situation emerging from the facts 10 (1972) 1 SCC 734 Para 14
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in that case. He further submitted that even assuming
for the sake of argument that Saligram’s order lays
down any principle of law, the same can not aid the
appellant in reopening the status of the LRs of the
respondent No. 10 in the present case. He seeks
support for the aforesaid proposition from the
explanation to Order 47 Rule 1 of the Code of Civil
Procedure, 1908. He relies on the judgment of this
Court in the case of Shanti Devi Vs. State of
Haryana & Ors. 11 and Union of India & Ors. Vs.
Mohd. Nayyar Khalil & Ors. 12 The learned senior
counsel reiterates that the claim made by the
appellant would be barred by res judicata. In support
of his submission, he relies on the judgment in the
case of State of West Bengal Vs. Hemant Kumar
Bhattacharjee & Ors. 13 and Mohanlal Goenka Vs.
Benoy Kishna Mukherjee & Ors. 14 . On the basis of
the aforesaid judgments, it is submitted that even if
the judgment dated 2nd July, 2001 rendered by the
11 (1999) 5 SCC 703 12 (2000) 9 SCC 252 13 1963 Supp (2) SCR 542 14 1953 SCR 377
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High Court in OJC No. 11537 of 1999 and the
dismissal of the SLP (C) No. 13556 of 2001 are
considered to be erroneous in view of the earlier
judgment of this Court in C. Buchivenkata Rao
(supra) and/or orders in Saligram (supra), the
matter regarding LRs of respondent No. 10 and their
status to maintain and proceed with the mining lease
application can not be reopened since it has become
final inter parte. According to the learned senior
counsel, res judicata is not a mere technical rule, it is
based on principle of justice and public interest, viz. a
litigant should not be vexed twice over the same issue
and there should be finality. The rule is based on
equity, justice and good conscience. Subsequent
change in law cannot unsettle a matter which has
attained finality. He points out that principles of res
judicata and constructive res judicata have been
applied even to Public Interest Litigation, which cannot
be said to be in the realm of private law. He submits
that the judgment relied by the appellant in the case
of Mathura Prasad (supra) is distinguishable as it is
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dealing with a situation where there was inherent lack
of jurisdiction and is therefore, not applicable in the
present case.
28. Mr. Mohan Jain, has also submitted that the claim of
the appellant is clearly barred by the principle of res
judicata. He has relied upon the case of Satyadhyan
Ghosal & Ors. Vs. Deorajin Debi (Smt.) & Anr. 15
29. We have considered the submissions made by the
learned counsel for the parties.
30. At the outset, it needs to be noticed that the parties
herein have been competing for the same mining
lease for the past half-a-century. A perusal of the
facts narrated herein above would also show that
there have been several rounds of litigation between
the parties. Although, we have noticed all the facts in-
extenso for the purpose of deciding the issue of res
judicata, it is necessary to recapitulate the
foundational facts with regard to the aforesaid issue of 15 AIR 1960 SC 941
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res judicata. On 3rd September, 1971, the
State Government passed an order recommending the
grant of mining lease in favour of respondent No. 10.
Since the Central Government did not approve the
recommendation made by the State Government, on
8th June, 1973, it rejected all pending mining lease
applications including the application of the appellant
and Dr. Sarojini Pradhan. On 2nd May, 1978, in a
revision petition filed by the appellant challenging the
order of cancellation of its application for grant of
lease, the Central Government issued a direction to
the State Government to pass a fresh order on merits.
This order was challenged by Dr. Pradhan in OJC
No. 829 of 1978. The writ petition was allowed by the
High Court on 4th September, 1987 by directing the
Central Government to reconsider the question for the
grant of lease after giving all parties concerned an
opportunity of hearing. During the pendency of the
revision petitions, Dr. Pradhan died on 10th September,
1987. Since OJC No. 829 of 1978 was still pending in
the High Court, the legal heirs of Dr. Sarojini Pradhan
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by way of a Misc. Case No. 1773 of 1988 brought the
fact of her death on the record of the proceedings and
sought a direction of the High Court to be substituted
as her legal heirs. It is a matter of record that on the
application filed by the legal heirs for substitution in
place of respondent No. 10, the appellant was duly
heard. The application made by the LRs of respondent
No. 10 was allowed on 28th April, 1988 with the
following observations:-
“Misc. Case No. 1773 of 1988 Heard counsel for the parties.
2. By judgment dated 4/9/1987, while quashing Annexure 5 the order passed by the Central Government, and the consequential order passed by the State Government as per Annexure 8 and the revisional order as per Annexure 11, we directed the Central Government to re-consider the question of grant of approval for the grant of lease for iron ore and manganese giving the parties concerned an opportunity of hearing. A grievance is now made that despite lapse of more than six months, nothing is heard from the Central Government. In the meanwhile, the sole petitioner has died and it is stated than an application for substitution of his legal representatives has already been filed and the revision is pending before the Central Government.
3. In these circumstances, we would require the central government to inform the parties the further stage of the revision and the date to
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which the revision would be posted for hearing. The legal representatives of the petitioner may appear before the Central Government on 16th May, 1988 to take directions regarding hearing of the revision.
4. The Misc. Case is disposed of accordingly. A copy of this order be communicated to the Central Government. A copy of this order be also handed over to the standing counsel for the Central Government. Certified copy of this order be granted in course of today, if an urgent application is made therefore.”
31. It appears that the LRs of respondent No. 10 failed to
appear before the Central Government on 16th May,
1988. Therefore, they filed another Misc. Case No.
1977 of 1988 seeking another opportunity to appear
before the Central Government. Therefore, the High
Court by its order dated 11th May, 1988 directed the
LRs of Dr. Sarojini Pradhan to appear before the
Central Government on 6th June, 1988. As is evident
from the order, which we have reproduced in the
earlier part of this judgment that the direction was
issued on the agreement of the counsel for the
parties. In the meantime in another matter being OJC
No. 1431 of 1980, the Division Bench rejected the
contention of the State that on the death of Dr.
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Sarojini Pradhan, her writ petition will abate and the
substitution of the LRs of Dr. Sarojini Pradhan was
allowed. In accordance with the directions issued by
the High Court in the orders dated 28th April, 1988 and
11th May, 1988, the LRs of respondent No. 10 duly
appeared before the Central Government. Upon
hearing the concerned parties, the Central
Government took a decision under Section 5(1) of the
Mines and Minerals (Development and Regulation) Act,
1957 to approve the grant of mining lease in favour of
LRs of Dr. Sarojini Pradhan. Appellant
ought to have challenged the status of the LRs before
the High Court at the time of the hearing of Misc. Case
No. 1773 of 1988 and Misc. Case No. 1977 of
1988. Appellant, it would appear, had accepted the
locus standi of the LRs of Dr. Sarojini Pradhan. This is
evident from the fact that in the subsequent hearing
before the Central Government, which were held
consequent upon the directions issued by the High
Court in the aforesaid two Misc. cases, the appellant
raised no objection with regard to the locus standi of
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the legal heirs of respondent No. 10. Clearly,
therefore, a final decision had been reached with
regard to the acceptability of the locus standi of the
LRs of respondent No. 10 to step into the shoes of the
deceased Dr. Sarojini Pradhan. The appellant
decided to raise the issues of the abatement of the
application of Dr. Sarojini Pradhan only after a decision
was taken by the Central Government on 11th May,
1990, which approved the recommendation of the
State Government for grant of mining lease in favour
of the legal heirs of Dr. Sarojini Pradhan. It is also
noteworthy that OJC No. 4316 was decided
on 13th December, 1996 with a direction to the Central
Government to reconsider the matter and pass a
speaking order. In the aforesaid writ petition, Dr.
Sarojini Pradhan was a respondent. The appellant sets
out in meticulous detail the history of litigation
between the parties. It is specifically noticed in the
judgment that although a number of contentions have
been raised to challenge the order dated 11th May,
1990, ultimately the dispute was confined to the
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question as to whether or not it was necessary for the
Central Government to hear all the applicants
alongwith Dr. Sarojini Pradhan. The main ground for
challenging the order of the Central Government
accepting the recommendation of the State
Government was that the Central Government had
failed to pass a speaking order. The locus standi of
the LRs of respondent No. 10 was not under challenge
in the proceedings before the High Court in OJC No.
4316 of 1990. The writ petition was allowed, a
direction was again issued to the Central Government
to reconsider the matter and pass a fresh speaking
order giving reasons for the decision after hearing all
the concerned parties. This was the second time
when the locus standi of the LRs of respondent No. 10
was accepted judicially. It is noteworthy that the
appellant accepted the aforesaid judgment. It was not
assailed either by way of a review petition before the
High Court or by way of a Special Leave Petition
before this Court. In such circumstances, it would be
difficult to accept the submissions of Mr. Venugopal
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Page 30
that the High Court has erroneously accepted the plea
raised by the LRs of the respondent that the claim of
the appellant is barred by res judicata. Considering
the principle of res judicata, this Court in the case of
Mohanlal Goenka Vs. Benoy Kishna Mukherjee
(supra) held as under:
“22. There is ample authority for the proposition that even an erroneous decision on a question of law operates as res judicata between the parties to it. The correctness or otherwise of a judicial decision has no bearing upon the question whether or not it operates a res judicata.”
32. This court also held that “a wrong decision by a court
having jurisdiction is as much binding between the
parties as a right one and may be superseded only by
appeals to higher tribunals or other procedure like
review which the law provides.” [See State of West
Bengal Vs. Hemant Kumar Bhattacharjee
(supra)]
33. In view of the aforesaid clear enunciation of the law by
this Court, it would appear that even if the judgment
dated 2nd July, 2001 rendered by the High Court in OJC
3
Page 31
No. 11537 of 1999 and the dismissal in limine of SLP
(C) No. 13556 of 2001 arising from the aforesaid
judgment is considered to be erroneous in view of the
judgment in Saligram’s case (supra), the matter
regarding the locus standi of the LRs of respondent
No. 10 to proceed with a mining lease application
cannot be permitted to be reopened at this stage
since it has become final inter partes.
34. Even though, strictly speaking, res judicata may not
be applicable to the proceedings before the Central
Government, the High Court in exercise of its power
under Article 226 was certainly entitled to take into
consideration the previous history of the litigation
inter partes to decline the relief to the appellant.
Merely because the High Court has used the
expression that the claim of the appellant is barred by
res judicata would not necessarily result in nullifying
the conclusion which in fact is based on considerations
of equity and justice. Given the history of litigation
between the parties, which commenced in 1950s, the
3
Page 32
High Court was justified in finally giving a quietus to
the same. The subsequent interpretation of Rule 25A
by this Court, that it would have only prospective
operation, in the case of Saligram (supra), would not
have the effect of reopening the matter which was
concluded between the parties. In our opinion, if the
parties are allowed to re-agitate issues which have
been decided by a Court of competent jurisdiction on a
subsequent change in the law then all earlier litigation
relevant thereto would always remain in a state of
flux. In such circumstances, every time either a
statute or a provision thereof is declared ultra vires, it
would have the result of reopening of the decided
matters within the period of limitation following the
date of such decision. In this case not only the High
Court had rejected the objection of the appellant to
the substitution of the legal heirs of Dr. Sarojini
Pradhan in her place but the SLP from the said
judgment has also been dismissed. Even though,
strictly speaking, the dismissal of the SLP would not
result in the merger of the judgment of the High Court
3
Page 33
in the order of this Court, the same cannot be said to
be wholly irrelevant. The High Court, in our opinion,
committed no error in taking the same into
consideration in the peculiar facts of this case.
Ultimately, the decision of the High Court was clearly
based on the facts and circumstances of this case.
The High Court clearly came to the conclusion that the
appellant had accepted the locus standi of the LRs of
Dr. Sarojini Pradhan to pursue the application for the
mining lease before the Central Government, as well
as in the High Court.
35. In view of the conclusions recorded by us above, it is
not necessary to express an opinion on the
interpretation of Rule 25A of the Mineral Concession
Rules, 1960. In any event, the judgment in the case of
Saligram (supra) has concluded that the Rule would
have only prospective operation. The legal position
having been so stated, it is not necessary for us to
dilate upon the same.
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Page 34
CIVIL APPEAL NO.1014 OF 2013 [Arising out of SLP (C) No. 5130 of 2009]
36. This now brings us to the second appeal arising out of
Special Leave Petition, i.e., 5130 of 2009, wherein the
appellant has challenged the final judgment rendered
by the High Court in the amended OJC No. 3662 of
2002 which was decided on 24th November, 2008.
37. The appellant now claims that order
dated 27th September, 2001 is void as it has been
passed in breach of rules of natural justice. Mr.
Krishnan Venugopal, Senior Advocate, appearing for
the appellant has submitted that in pursuance of the
order dated 2nd July, 2001 passed by the High Court in
OJC No. 11537 of 1999, parties were heard by Mr. S.P.
Gupta, Joint Secretary for two days, i.e.,
28th August, 2001 and 13th September, 2001.
However, the order dated 27th September, 2001 has
been passed by Dr. R.K. Khatri, Deputy
Secretary, who did not hear the parties at all. Mr.
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Page 35
Krishnan submits that, by virtue of the orders passed
by the High Court, the proceedings before the Central
Government were quasi-judicial in nature. Therefore,
it was necessary that the same officer who gave a
hearing to the parties ought to have passed the order
in relation to the competing claims with regard to the
grant of mining lease. Learned counsel highlights that
originally the appellant had obtained the prospecting
licence for the area in dispute between 17th October,
1962 and 16th October, 1963. However, while the
appellant’s application for mining lease was pending,
the State Government made the area available for re-
grant under Rule 58 [now Rule 59(1)] of the Rules, as
they stood in 1965. Six persons including the
appellant and Late Dr. Sarojini Pradhan applied for the
grant of mining lease on the same date, i.e. 10th
September, 1965, thus triggering the application of
the proviso to Section 11(2) read with the merit based
criteria in Section 11(3) of the MMDR Act. As four of
the contenders dropped out over the next four
decades, only appellant and respondent No. 10, i.e.,
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Page 36
the legal heirs of the Late Dr. Pradhan were the only
contesting parties for the mining lease at the relevant
time. Repeatedly, the orders passed in favour of Dr.
Sarojini Pradhan for the grant of mining lease has
been set aside by the High Court on the ground of
being in violation of the rules of natural justice. On
31st August, 2007, the Division Bench rejected the
preliminary issue raised by the appellant to the effect
that the application made by Dr. Pradhan for a mining
lease abates on her death, in 1987. Although the High
Court held that legal heirs of Dr. Pradhan can be
substituted in her place, the writ petition was kept
pending for final disposal on the issue of as to whether
the orders granting the lease in favour of her legal
heirs had been passed in violation of rules of natural
justice.
38. The High Court in the impugned judgment took note of
the submissions made by Dr. Devi Pal, learned senior
counsel appearing for the appellant. The main thrust
of the argument of Dr. Pal was that the matter had
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Page 37
been heard by Mr. S.P. Gupta, Joint Secretary
on 28th August, 2001 and 13 th
September, 2001, but has been decided by
Dr. R.K. Khatri, Deputy Secretary of the Government of
India, Ministry of Coal Mines vide order dated 27th
September, 2001, and the said order had been
communicated by Mr. O.P. Kathuria,
Under Secretary to the Government of India. The
submissions made in the High Court have been
reiterated before us by Mr. Krishnan Venugopal. He
submits that the approval granted in favour of legal
heirs of Dr. Sarojini Pradhan causes
adverse civil consequences to the appellant. Such an
order could only have been passed by the officer, who
had heard the parties. The order, however, has been
passed by a different officer, Dr. R.K. Khatri, on the
basis of the notes recorded by Mr. S.P. Gupta in the
relevant file. In support of the submission, the learned
counsel has relied on the judgment of this Court in
Gullapalli Nageswara Rao & Ors. Vs. Andhra
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Page 38
Pradesh State Road Transport Corporation &
Anr. 16
39. Learned counsel then submitted that even if, for the
sake of argument, it is accepted that approval under
the proviso to Section 5(1) of the MMDR Act is to be
treated as administrative in character, the impugned
order dated 27 th September, 2001 still
deserves to be set aside because it is neither
expressed nor can it be deemed to be expressed in
the name of the President of India, as required by
Article 77 of the Constitution of India and the Conduct
of Business Rules. In support of this submission, the
learned counsel relies upon the judgment of this Court
in Bachhittar Singh Vs. State of Punjab & Anr. 17
On the basis of the aforesaid judgment, Mr. Krishnan
Venugopal submits that the impugned order, not
having been passed by the concerned Minister of the
Central Government, can not be deemed to be in the
name of the President. He further emphasised that
16 AIR 1959 SC 308 17 AIR 1963 SC 395
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Page 39
there is no material on the record to show that, under
the Rule of Business, the power to pass the order on
behalf of the Central Government under proviso to
Section 5(1) of the MMDR Act was delegated to the
Deputy Secretary. He further pointed out that even if
the order is administrative in character, it would still
be non est and void, having been passed in violation
of rules of natural justice and causes serious civil
consequences to the appellant. For this proposition, he
relies on the judgment of this Court in Automotive
Tyre Manufacturers Association Vs. Designated
Authority & Ors. 18 Mr. Krishan further submitted
that the Central Government’s order is vitiated
because it is based mainly on the report of the Indian
Bureau of Mines comparing the Iron Ore production of
the appellant with that of the legal heirs of Late Dr.
Sarojini Pradhan for 1999-2000 and 2000-2001, which
is a period after the State Government’s
recommendation dated 5th February, 1999. The
relevant period prior to 5th February, 1999 has been
wholly ignored by the Central Government in passing 18 (2011} 2 SCC 258
3
Page 40
the order dated 27th September, 2001. He further
submitted that the comparative merit of the parties
had to be judged on the criteria specified under
Section 11(3) of the MMDR Act. The criteria under the
aforesaid section include :- (a) special knowledge or
experience in prospecting operations or mining
operations; (b) the financial resources of the
applicants, (c) nature and quality of technical staff
employed or to be employed by the applicant, (d) the
investment which the applicant proposes to make in
the mines. Even though the written statements
submitted by the parties about their financial and
technical capabilities were sent to the State
Government for verification, a separate report was
sought from the Indian Bureau of Mines which was
confined only to two years: 1999-2000 and 2000-2001.
The impugned order dated 27th September, 2001 has
been passed primarily based on the report of the
Indian Bureau of Mines for the aforesaid two years.
The order is clearly vitiated as it is based on
extraneous considerations. In support of this, the
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Page 41
learned senior counsel relies on Commissioner of
Income Tax, Bombay & Ors. Vs. Mahindra and
Mahindra Limited & Ors. 19 The order passed by the
Central Government is contrary to the directions
issued by the High Court on 2nd July, 2001
by which the matter had been remanded to the
Central Government with a direction to place the
recommendation dated 5th February, 1999 of the State
Government before the parties, to hear them, and to
pass a speaking order with reasons. The High Court
did not authorise the Central Government to conduct
its own investigations and elicit fresh materials outside
the scope of the State Government recommendation.
In support of this submission, the learned counsel
relies on a judgment of this Court in Sandur
Manganese and Iron Ores Limited Vs. State of
Karnataka & Ors. 20 The learned counsel further
pointed out that the State Government can not grant a
mining lease without the previous approval of the
Central Government under the proviso to Section 5(1)
19 (1983) 4 SCC 392 20 (2010) 13 SCC 1
4
Page 42
of the Act. Therefore, the power of the Central
Government is confined to the grant of the previous
approval on the basis of the material submitted by the
State Government for seeking such a previous
approval. In support of this submission, the learned
counsel relied on the judgments of this Court in Lord
Krishna Textile Mills Vs. Workmen 21 , Ashok
Kumar Das & Ors. Vs. University of Burdwan &
Ors. 22 , State of Tamil Nadu Vs. Hind Stone &
Ors. 23 and Kabini Minerals (P) Ltd. & Anr. Vs.
State of Orissa & Ors. 24
40. Learned counsel further submitted that the impugned
order dated 27th September, 2001 is vitiated as it has
been obtained by fraud. He submitted that both
parties have provided a statement of the respective
technical and financial capabilities to the Central
Government. In their submissions before the Central
21 AIR 1961 SC 860 22 (2010) 3 SCC 616 23 (1981) 2 SCC 205 24 (2006) 1 SCC 54
4
Page 43
Government, the legal heirs of Late Dr.
Sarojini Pradhan had categorically stated that one Mr.
Nilamani Ojha, a mining engineer, was the number
two person in their technical team. This fact was
denied by Mr. Ojha in a latter dated 5th
November, 2001 written to the Central Government.
He further submitted that even technical information
submitted by the legal heirs of Late Dr.
Pradhan is factually incorrect. Therefore, the decision
of the Central Government is vitiated by fraud.
Learned counsel relies on Regional Manager,
Central Bank of India Vs. Madhulika Guruprasad
Dahir & Ors. 25 and State of Orissa & Ors. Vs.
Harapriya Bisoi26.
41. Mr. Ashok K. Gupta, learned senior counsel appearing
for the legal heirs of respondent No. 10, had made
detailed submissions controverting the submissions
made on behalf of the appellant.
25 (2008) 13 SCC 170 26 (2009) 12 SCC 378.
4
Page 44
42. It is submitted that the submissions made by the
appellant that the Central Government’s order is not in
consonance with Article 77, is wholly unfounded and
devoid of merits. This ground was not even pleaded in
the writ petition before the High Court. In fact, no such
submission was made at the hearing of the writ
petition by the High Court. No grievance is made in
the SLP that such a submission was made before the
High Court and that it was not considered. The
submissions raised by the appellant at this stage
being a mixed question of law in fact ought not to be
permitted to be raised in the present proceedings.
This apart, he submits that the judgment in the case
of Bachhittar Singh (supra) was rendered on the
basis of its own facts. Furthermore, in that case, the
order signed by the Minister was not communicated to
the parties and therefore, it was held that there was
no effective order. In the present case, the order was
passed on the basis of the approval granted and
conveyed in the manner prescribed under law. With
regard to the order being vitiated as it was passed on
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Page 45
consideration of the material subsequent to the date
of recommendation of the State Government viz. 5th
February, 1999, he submits that the appellant cannot
even be permitted to raise such an objection, having
willingly submitted materials/information subsequent
to the date of the recommendation by the State
Government. Mr. Gupta further submits that Section
5(2) of the MMDR Act does not prohibit the Central
Government to take into account material subsequent
to the recommendations made by the State
Government. In the present case, it was necessary as
the hearing was being conducted 2½ years after the
recommendations have been submitted. Learned
counsel further submits that no fraud was played by
the legal heirs of respondent No.10, as is sought to be
canvassed by the appellant. No such ground of fraud
was either pleaded in the writ petition before the High
Court nor was any submission made to that effect
before the High Court. The letter dated 5 th
November, 2001 of Mr. Nilamani Ojha has been
obtained by the appellant only for the purpose of
4
Page 46
prejudicing the case of the appellant in this Court.
With regard to the main ground relating to breach of
rules of natural justice and which is premised on the
basis that no hearing was granted by the officer that
passed the impugned order, it is submitted that the
submission is contrary to the material on the record.
The matter was heard by Mr. S. P. Gupta, and it was
his note running into 47 paragraphs, which was
approved by the Secretary and the Minister, as per the
rules of the business. The hearing was to be given by
the Central Government and not by a particular
individual. Therefore, it was clearly a case of
institutional hearing and it was not necessary that
Mr. Gupta should have passed the order. In this
context, he relies on a judgment of the House of Lords
in Local Government Board Vs. Arlidge 27 .
According to the learned counsel, this principle is also
recognized by this Court in Automotive Tyre
Manufacturers Association (supra) and Ossein
and Gelatine Manufacturers’ Association of India
27 (1915) AC 120
4
Page 47
Vs. Modi Alkalies and Chemicals Limited & Anr. 28
and Pradyat Kumar Bose Vs. The Hon’ble The
Chief Justice of Calcutta High Court29.
43. We have considered the submissions made by the
learned counsel for the parties.
44. It is by now well settled that judicial review of the
administrative action/quasi judicial orders passed by
the Government is limited only to correcting the errors
of law or fundamental procedural requirements which
may lead to manifest injustice. When the conclusions
of the authority are based on evidence, the same
cannot be re-appreciated by the court in exercise of its
powers of judicial review. The court does not exercise
the powers of an appellate court in exercise of its
powers of judicial review. It is only in cases where
either findings recorded by the administrative/quasi
judicial authority are based on no evidence or are so
perverse that no reasonable person would have
reached such a conclusion on the basis of the material
28 1989 (4) SCC 264 29 1955 (2) SCR 1331
4
Page 48
available that the court would be justified to interfere
in the decision. The scope of judicial review is limited
to the decision making process and not to the decision
itself, even if the same appears to be erroneous. This
Court in the case of Tata Cellular Vs. Union of
India 30 upon detailed consideration of the parameters
within which judicial review could be exercised, has
culled out the following principles :
“70. It cannot be denied that the principles of judicial review would apply to the exercise of contractual powers by Government bodies in order to prevent arbitrariness or favouritism. However, it must be clearly stated that there are inherent limitations in exercise of that power of judicial review. Government is the guardian of the finances of the State. It is expected to protect the financial interest of the State. The right to refuse the lowest or any other tender is always available to the Government. But, the principles laid down in Article 14 of the Constitution have to be kept in view while accepting or refusing a tender. There can be no question of infringement of Article 14 if the Government tries to get the best person or the best quotation. The right to choose cannot be considered to be an arbitrary power. Of course, if the said power is exercised for any collateral purpose the exercise of that power will be struck down.
……. …… …… ….. ….. ….. …
…. ……. …… …… ….. ….. …..
30 (1994) 6 SCC 651
4
Page 49
77. The duty of the court is to confine itself to the question of legality. Its concern should be:
1. Whether a decision-making authority exceeded its powers ?
2. Committed an error of law,
3. committed a breach of the rules of natural justice,
4. reached a decision which no reasonable tribunal would have reached or,
5. abused its powers.
Therefore, it is not for the court to determine whether a particular policy or particular decision taken in the fulfillment of that policy is fair. It is only concerned with the manner in which those decisions have been taken. The extent of the duty to act fairly will vary from case to case. Shortly put, the grounds upon which an administrative action is subject to control by judicial review can be classified as under :
(i) Illegality : This means the decision-maker must understand correctly the law that regulates his decision-making power and must give effect to it.
(ii) Irrationality, namely, Wednesbury unreasonableness.
(iii) Procedural impropriety. The above are only the broad grounds but it does not rule out addition of further grounds in course of time…… ……………………………..
4
Page 50
…….. ……… ……… ……….. ………. ….”
45. The aforesaid judgment has been followed again and
again. It was clearly observed in the said judgment
that where the Court comes to the conclusion that the
administrative decision is arbitrary, it must interfere.
However, the Court can not function as an appellate
authority substituting the judgment for that of the
administrator. Applying the aforesaid principles, the
High Court has examined the entire record and has
concluded that the decision making process is not
flawed in any manner, as canvassed by the appellant.
The High Court noticed that the record was duly
produced by Mr. J.K. Mishra, learned
Assistant Solicitor General. It was also noticed that
throughout the proceedings, no reference has been
made to any particular officer or post or any
designation. The order dated 11th July, 2001 passed by
the High Court merely directed that they shall appear
before the Central Government on 18th July, 2001.
Order dated 14th August, 2001 clearly
5
Page 51
indicates that the matter was being heard in view of
the directions given by the High Court in OJC No.
11537 of 1999 and secondly, notice was issued for
hearing on 28th August, 2001. The record further
indicated that the matter was heard by Mr. S. P.
Gupta, Joint Secretary for two days i.e. on 28th August,
2001 and 13th September, 2001. Both the parties had
been given opportunity to place on the record any
documents and written submissions in support of their
claim. It was also apparent that particulars submitted
were made available to all the parties. On
13th September, 2001, Mr. S. P. Gupta, Joint Secretary
made a note as under :
“Thus, all the documents available with the Central Government are also available with both the parties.”
46. The High Court also took note of the fact that
independently of all the material supplied by the State
Government along with the recommendation and the
material made available by the parties, the Central
Government had also asked Indian Bureau of Mines to
furnish certain reports in support of both the parties.
5
Page 52
These reports were, in turn, made available to the
rival parties. The High Court further noticed that after
complying with all the formalities required, the issues
were finally adjudicated. Upon conclusions of the
arguments by the parties, Mr. S. P. Gupta, Joint
Secretary who had heard the parties prepared the
note running into 19 pages (from pages 30 –
49) containing 47 paragraphs of original record. The
note has been duly signed by Mr. S.P. Gupta,
Joint Secretary on 17th September, 2001. The High
Court further noticed that in fact this is the report
which had been duly approved by the Secretary
on 18th September, 2001 and by the Central
Government Minister on 25th September, 2001. While
making the endorsement of the approval, the
Secretary has written as under :-
“I endorse fully the above note of the Joint Secretary. This is a very old case in which the parties have repeatedly recourse to the courts. As such (sic) even now near litigation may follow. Therefore the decision of the Central Government has to be in terms of a speaking order which is backed by facts and law.”
5
Page 53
47. The High Court further notices that the impugned
order dated 27th September, 2001 is, in fact, a
verbatim copy of the report/note prepared by Mr. S.P.
Gupta, Joint Secretary. Upon examination of the entire
matter, the High Court has concluded that the order
has been signed by Mr. R.P. Khatri merely to
communicate the approval of the Central Government
to the parties.
48. We are of the considered opinion that the conclusions
reached by the High Court cannot be said to be
contrary to the established principles and parameters
for exercise of the power of judicial review by the
courts. At this stage, we may also make a reference to
a submission made by Mr. Krishnan that the High
Court did not give due consideration to the grievance
of the appellant raised in the writ petition with respect
to the merits because it assumed that the appellant
had attempted to bye-pass the alternative remedy of
revision available to it under Section 30 of MMDR Act
read with Rules 54 and 55 of the Rules. We are
5
Page 54
of the considered opinion that the aforesaid
submission of the learned counsel is wholly misplaced.
The High Court merely noticed that the matter had
been referred back to the Central Government on a
limited issue. Therefore, it was not open to the Central
Government to re-open the entire controversy. It has
been observed by the High Court that such a power
would only be available to the Central Government in
exercise of its Revisional Powers under Section 30
read with Rules 54 and 55 of the Rules. We also do not
find much substance in the submission made by Mr.
Krishnan that the order dated 27th
September, 2001 is vitiated as it has been passed by
an officer who did not give a hearing to the parties.
This is clearly a case of an institutional hearing. The
direction has been issued by the High Court for a
hearing to be given by the Central Government. There
was no direction that any particular officer or an
authority was to give a hearing. In such
circumstances, the orders are generally passed in the
relevant files and may often be communicated by an
5
Page 55
officer other than the officer who gave the hearing.
The legality of institutional hearing has been accepted
in England since the case of Local Government
Board Vs. Arlidge (supra). The aforesaid judgment
was quoted with approval by this Court in Pradyat
Kumar Bose (supra). This Court approved the
following passage from the speech of Lord Chancellor
in the aforesaid case:
“My Lords, I concur in this view of the position of an administrative body to which the decision of a question in dispute between parties has been entrusted. The result of its enquiry must, as I have said, be taken, in the absence of directions in the statute to the contrary, to be intended to be reached by its ordinary procedure. In the case of the Local Government Board it is not doubtful what this procedure is. The Minister at the head of the Board is directly responsible to Parliament like other Ministers. He is responsible not only for what he himself does but for all that is done in his department. The volume of work entrusted to him is very great and he cannot do the great bulk of it himself. He is expected to obtain his materials vicariously through his officials, and he has discharged his duty if he sees that they obtain these materials for him properly. To try to extend his duty beyond this and to insist that he and other members of the Board should do everything personally would be to impair his efficiency. Unlike a Judge in a Court he is not only at liberty but is compelled to rely on the assistance of his staff.”
5
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In view of the aforesaid settled position of law, it is
difficult to accept the submissions of Mr. Krishnan that the
order dated 27th September, 2001 suffers from any legal or
procedural infirmity. In our opinion, the conclusions reached
by the High Court are in accordance with the settled
principles of law. Although a large number of cases have
been cited by the learned counsel for the parties on either
side, but it is not necessary to consider all of them
individually as the principles with regard to observance of
natural justice are well entrenched in our jurisprudence.
Undoubtedly, any decision, even if it is administrative in
nature, which causes adverse civil consequences must be
passed upon hearing the concerned parties. In our opinion,
the Central Government has fully complied with the
aforesaid principle in passing the order dated 27th
September, 2001.
49. In view of the above, we find no merit either in
Civil Appeal No. 1013 of 2013 arising out of
SLP (C)No. 23141 of 2007 or Civil Appeal No. 1014 of
5
Page 57
2013 arising out of SLP (C) No. 5130 of 2009. Both the
appeals are, therefore, dismissed with no order as to
costs.
.……..…………….….….J. [Surinder Singh Nijjar]
……….…………………….J. [H.L.Gokhale]
New Delhi; February 07, 2013.
5