M/S. Haji Esmail Noor Mohammad &
Co. & Ors Vs. The Competent Officer, Lucknow & Ors [1967] INSC 58 (8
March 1967)
08/03/1967 RAO, K. SUBBA (CJ) RAO, K. SUBBA
(CJ) SHAH, J.C.
SHELAT, J.M.
BHARGAVA, VISHISHTHA MITTER, G.K.
CITATION: 1967 AIR 1244 1967 SCR (3) 134
CITATOR INFO :
F 1983 SC 259 (19)
ACT:
U.P. Administration of Evacuee Property
Ordinance, 1949.
Administration of Evacuee Property Act
(Central) 1950 and Evacuee Interest (Separation) Act (Central) 1951--Partner of
firm declared 'evacuee' under U.P. Ordinance-Fresh declaration under s. 7 of
1950 Act whether necessaryProceedings under 1951 Act before Appellate Authority
at Delhi-Appellate Authority appointed by U.P. State but office situated at
Delhi-Allahabad High Court whether has jurisdiction under Art. 226 over
Appellate Authority.
Constitution of India, Part III-Fundamental
Rights of partners of firm whether affected by one of the partners being
declared evacuee and his property being taken over by Custodian.
HEADNOTE:
A partnership firm carrying on business in
Calcutta had also a branch in Kanpur. In 1948, 'A' one of its partners went
away to Pakistan. Under the United Provinces Administration of Evacuee Property
Ordinance 1949 all evacuee property situated in the United Provinces, vested in
the Custodian of Evacuee Property. In September 1949 the Deputy Custodian of
Evacuee Property, Kanpur, took possession of the Kanpur property of the firm.
The firm raised objections under s. 8 of the aforesaid Ordinance. On October
18, 1949 a Central Ordinance namely the Administration of Evacuee Property
Ordinance 1949 came into force; it was succeeded on April 17, 1950, by the Administration
of Evacuee Property Act, 1950. Under the provisions of the Central Ordinance as
also the Act any property which had vested in the Custodian under the
Provincial Ordinance would be deemed to continue being so vested. On May 31,
1950 The Deputy Custodian of Evacuee Property (Judicial) Allahabad Circle,
Kanpur, dealing with the aforesaid objections raised by the firm held 'A' to be
an evacuee and his share in the firm to be evacuee property.
No appeal was filed against this order. on
December 13, 1952 the Competent Officer, Kanpur -sent separate notices under s.
6 of the Evacuee Interest Separation Act, 1951 to each of the partners of the
firm calling upon them to file their claim for the purpose of determining the
interest of the evacuee in the partnership business. The firm filed a claim
under s. 7 of the Act and raised various objections contending that 'A' was not
-a member of the firm. The competent officer rejected all the objections. The
firm's appeal to the Appellate Officer failed; whereupon it filed petitions
under Art. 226 of the Constitution before the High Court. The petitions were
dismissed by a single Judge who took the view that the order of the Competent
Officer had merged in that of the Appellate Authority whose office was situated
in Delhi beyond the territorial jurisdiction of the High Court. Special appeals
before the Division Bench were also dismissed. The firm and its partners
appealed to this Court. They also filed a petition under Art. 32. The Court 'had
to consider (i) Whether a fresh notice and declaration under s, 7 of the
Central Ordinance of 1949 or of tile Central Act of 1950 was necessary, (ii)
Whether any fundamental right of 135 the partners of the firm had been.
affected, (ii) Whether the Appellate Authority was subject to the jurisdiction
of the High Court of Allahabad.
HELD : From the Facts 'it was clear that 'A',
in view of disturbed conditions, went away to Pakistan in the year 1948 and
therefore he was an 'evacuee' within the meaning of U.P.
Ordinance 1 of 1949. His property i.e. his
interest in the partnership business immediately vested under the Ordinance in
the Custodian. This automatic vesting was continued by Central Ordinance 27 of
1949 and Central Act 31 of 1950 by the deeming provisions contained therein.
Therefore no question of issuing further notice or making a declaration that
the said interest was evacuee property under s. 7(1) of the Ordinance arose.
Section 7 only applied to properties other than those which have vested automatically
in the Custodian. Such a vesting cannot be reopened under the Central Ordinance
or the Central Act for it has already vested thereunder by a fiction. [142 E-G]
(ii) It followed that the partners had no interest in the share of 'A' in the
firm which had vested in the Custodian.
They had also acquiesced in the order of the
Deputy Custodian of Evacuee Property (Judicial) (Allahabad) holding 'A"s
property to be evacuee property. It was no longer open to them to question that
finding. The partners had therefore no fundamental right in regard to the
interest of 'A' in the partnership. L143 B] (iii) The Appellate Authority,
though for convenience having its head office in New Delhi, was factually and
legally functioning under the State Act within the territorial jurisdiction of
the Allahabad High Court. Such an appellate authority is located within the
territorial limits of the High Court for the purpose of disposing of the
appeals under the Act. [146 B-C] Election Commission, India v. Saka Venkata Subba
Rao [1953] S.C.R. 1144, Lt. Col. Khajoor Singh v. Union of India, [1961] 2
S.C.R. 828, A. Thangal Kunju Musaliar v. M. Venkitachalam Potti, [1955] 2
S.C.R. 1196, Collectorof Customs v. East India Commercial Company,[1963] 2
S.C.R.
563, Shriram v. Tire State of Boimbay A.I.R.
1962 S.C. 670 and The State of Uttar Pradesh v. Mohammad Nooh, [1958] S.C.R.
595, distinguished.
ORIGINAL/CIVIL APPELLATE JURISDICTION : Writ
Petition No. 14 of 1963.
Petition under Art. 32 of the Constitution of
India for the enforcement of fundamental rights.
AND Civil Appeals Nos. 1566 and 1567 of 1966.
Appeals by special leave from the judgment
and order dated January 11, 1963 of the Allahabad High Court in Special Appeals
Nos. 26 and 27 of )963 respectively.
S. T. Desai, E. C. Agarwala, Bhawanilal,
Champat Rai and P. C. Agrawala, for the petitioners (in W.P. No. 14 of 1965).
S. P. Sinha, E. C. Agarwala, Bhawanilal,
Champat Rai and P. C. Agrawala, for the appellants (in both the appeals).
136 136 N. S. Bindra and S. P. Nayyar, for
the respondents (in W.P. No. 14 of 1963 and C.As. Nos. 1566 and 1567 of 1966).
The Judgment of the Court was delivered by
Subbarao, C.J. The writ petition and the two appeals are connected and they
arise out of a dispute under the Evacuee interest (Separation) Act, 1951, (Act
No. 64 of 1951) in regard to a partnership firm carrying on business in the
name and style of Messrs. Hajee Esmail Noor Mohammad & Co. its principal
place of business is Calcutta and it has branches at Kanpur and Bombay. In 1947
a partnership deed was executed in respect of the said business. Though the
business continued to be carried on under the said name from time to time,
having regard to the exigencies. new partnership deeds were executed. In the
year 1948, Abdul Latif Hajee Esmail, one of the partners of the firm, went to
Pakistan. On May 1, 1949, it appears that the said Abdul Latif Hajee Esmail
sent from Pakistan a letter addressed to the partnership firm at Calcutta
indicating his intention to retire from the partnership. On June 24, 1949, The
United Provinces Administration of Evacuee Property Ordinance, 1949 (U.P.
Ordinance No. 1 of 1949) came into force. Under that Ordinance all evacuee
property situated in the United Provinces vested in the Custodian. On August 8,
1949, another deed of partnership was executed between the partners excluding
therefrom the said Abdul Latif Hajee Esmail and the document was registered on
October 24, 1949.
On September 7, 1949, the Deputy Custodian of
Evacuee Property, Kanpur, informed the firm that possession of the Kanpur
property of the firm would be taken within 24 hours.
Pursuant to the notice, possession of the
firm at Kanpur was taken by the Deputy Custodian. On September 24, 1949, the
firm filed a claim under s. 8 of the U.P. Ordinance 1 of 1949 to the effect
that the said property was not evacuee property. On October 18, 1949, The
Administration of Evacuee Property Ordinance No. 27 of 1949, hereinafter called
the 'Central Ordinance', came into force.
Thereafter, on April 17, 1950, The
Administration of Evacuee Property Act, 1950 (Act 31 of 1950) came into force.
On May 31, 1950 the Deputy Custodian of Evacuee Property (Judicial), Allahabad
Circle, Kanpur, in the objection petition filed by the firm found that Abdul Latif
Hajee Esmail was an evacuee, that the notice issued by him to the firm was
invalid, as it was not given to the individual partners thereof, that the said
Abdul Latif Hajee Esmail would be deemed to be continuing as a partner, that he
was an evacuee and that, therefore, his share in the partnership vested in the
Custodian. In the result he declared that the share of Abdul Latif Hajee Esmail
in the firm, which was annas 5 out of annas 19 and pies 3, was evacuee
property.
He released the other shares from attachment.
No 137 appeal was filed against that order. On December 13, 1952, the Competent
Officer, Kanpur, sent separate notices under s. 6 of the Evacuee Interest
(Separation) Act, 1951 (Central Act 64 of 1951 ) to each of the partners of the
firm calling upon them to file their claim for the purpose of determining the
interest of the evacuee in the partnership business. In March 1953, the firm
filed a petition under s. 7 of the Central Act 64 of 1951 claiming 14 annas and
3 pies share out of the total share of 19 annas and 3 pies of the Kanpur branch
of the partnership firm. On December 31, 1953, Abdul Latif Hajee Esmail died.
On September 12, 1959, the firm raised various objections, including one of
jurisdiction, the main objection being that Abdul Latif Hajee Esmail was not a
partner of the present firm. The Cornpetent Officer rejected all the objections
and held, by his order dated November 10, 1950, that the firm was accountable
to the Custodian in respect of the assets and profits of the firm so far as it
related to the Kanpur Branch of the firm, from February 10, 1949 upto the date
of the order. The firm preferred an appeal against that order to the Appellate
Officer appointed under Central Act 64 of 1951. On April 25, 1960, the
Appellate Officer dismissed the appeal.
Thereafter, on July 25, 1960, the firm filed
a petition in the High Court of Allahabad under Art. 226 of the Constitution
against respondents 1 and 2 for quashing their orders and for issuing an
appropriate writ or suitable directions against all or any of the respondents.
On September 25, 1961, the firm and its partners filed another petition under
Art. 226 of the Constitution in the said High Court for similar reliefs. The
second petition became necessary because certain technical objections were
raised in regard to the first petition. On November 29, 1962, Oak, J., of the
said High Court dismissed both the petitions.
The learned Judge held that the High Court
had no jurisdiction to quash the order of the Competent Officer for taking
accounts inasmuch as his order had merged in the order of the Appellate
Authority whose office was situated in Delhi beyond the territorial
jurisdiction of the said High Court. Special Appeals preferred to a Division
Bench of the High Court were also dismissed. Hence the two appeals. The firm
and its partners also filed a petition in this Court under Art. 32 of the
Constitution for the same reliefs.
We shall first take the petition filed in
this Court under Art. 32 of the Constitution.
Mr. S. T. Desai, learned counsel for the
petitioners, raised before us the following points : (1) Abdul Latif Hajee
Esmail was not an evacuee and, therefore, his property was not evacuee property
within the meaning of cls. (c) and (d) of s. 2 of the U.P. Ordinance No. 1 of 1949
and, therefore, the orders of the Competent Officer or of the Appellate Officer
were without L4 Sup. Cl/67-10 138 jurisdiction. (2) The decision given by the
two officers were also without jurisdiction as no notice was issued and as no
declaration was 'Made under s. 7 of the Central Ordinance No. 27 of 1949 or of
the Central Act 31 of 1950.
(3) The said officers also had no
jurisdiction to pass any order relating to the share of Abdul Latif Hajee
Esmail confined only to the Kanpur branch of the firm. (4) In any case, the
said Officers committed an error in holding that Abdul Latif Hajee Esmail had a
subsisting share in the partnership even after February 10, 1949 and August 8,
1949, i.e., after the dates of reconstitution of the partnership.
Mr. N. S. Bindra, learned counsel for the
respondents, apart from contesting the correctness of the points raised by the
petitioners' counsel, argued that the petitioners had no fundamental right to
maintain the petition. His contention was that the interest of Abdul Latif
Hajee Esmail in the partnership had automatically vested in the Custodian under
the provisions of the U.P. Ordinance No. 1 of 1949, that the petitioners had no
interest in the said share and, that, therefore, no fundamental right of theirs
was affected by the order of the Competent Officer or of the Appellate Officer
made in the appeal against the said ,order.
To appreciate the contentions it is necessary
to consider the provisions of the relevant Ordinance and the Acts.
U.P. Ordinance No. 1. of 1949 Section 2. (c)
"evacuee" means any person, (i) who, on account of the setting up of
the Dominions of India and Pakistan or on account of civil disturbances or the
fear of such disturbances, leaves or has on or after the 1st day of March, 1947
left any place in the United Provinces for any place outside the territories
now forming part of India, or (ii) who is resident in any place now forming
part of Pakistan and is for that reason unable to occupy, supervise or manage
in person his property in the United Provinces or whose property in the
Province has ceased to be occupied, supervised or managed by any person, or is
being occupied, supervised or managed by an unauthorised person, or......
(d) "evacuee property" means any
property in which an evacuee has any right or interest ......
139 (e) "property" includes any
property, right or interest, but does not include a mere right to sue or a cash
deposit in a bank-.
Section 5. Vesting of evacuee property in the
Custodian.
(1) Subject to the provisions of this
Ordinance, all evacuee property situated in the United Provinces shall vest in
the Custodian.
Section 6. Notification of evacuee property.
(1) The Custodian may from time to time,
notify by publication in the official Gazette or in such other manner as may be
prescribed, evacuee properties which have vested in him under this Ordinance.
(2) Where after the vesting of any evacuee
property in the Custodian any person is in possession of any such property, he
shall be deemed to be holding it on behalf of the Custodian and shall on being
so required, surrender possession thereof to the Custodian or any person
appointed by him in this behalf.
Under this Ordinance 'property of an evacuee'
as defined in s. 2(c) automatically vests in the Custodian under s. 5.
Thereafter any person in possession of the
said property holds it only on behalf of the Custodian, who can take necessary
steps to take possession from him.
The Administration of Evacuee Property (Chief
Commissioners' Provinces) Ordinance, No. 12 of 1949.
This Ordinance was extended to the United
Provinces by the Administration of Evacuee Property (Chief Commissioners'
Provinces) Amendment Ordinance, No. 20 of 1949. It came into force on August
23, 1949.
Section 5. Vesting of evacuee property in the
Custodian.(1) Subject to the provisions of this Ordinance, all evacuee
properties situate in a Province shall vest in the Custodian of that Province.
(2) Where immediately before the commencement
of this Ordinance any evacuee property in a Province had vested in any person
exercising the powers of a Custodian under any corresponding law in force in
that Province immediately before such commencement, that evacuee property
shall, on the commencement of this Ordinance, be deemed to have vested in the
Custodian appointed for the Province under this Ordinance.
140 Section 7 and 8 of this Ordinance
correspond to ss. 7 and 8 Of the U.P. Ordinance No. 1 of 1949; the former
confers power on the Custodian to take possession of any evacuee property
vested in him and the latter provides for filing of claims by interested
persons. Under this Ordinance the evacuee property automatically vested in the
Custodian was deemed to have vested in the Custodian for the Province
concerned.
Central Ordinance No. 27 of 1949.
This Ordinance came into force on October 18,
1949.Section 55.
(1) The Administration of Evacuee Property
Ordinance, 1949 (XII of 1949), as in force in the Chief Commissioners'
Provinces and the Province of Madras and the United Provinces is hereby
repealed.
(2)............................
(3) Notwithstanding the repeal by this
Ordinance of the Administration of Evacuee Property Ordinance, 1949, or of any
corresponding law, anything done or any action taken in the exercise of any
power conferred by that Ordinance or law shall be deemed to have been done or
taken in the exercise of the powers conferred by this Ordinance, and any
penalty incurred or proceeding commenced under that Ordinance or law shall be
deemed to be a penalty incurred or proceeding commenced under this Ordinance as
if this Ordinance were in force on the day on which such thing was done, action
taken, penalty incurred or proceeding commenced.
Section 8.
(1)..............................
(2) Where immediately before the commencement
of this Ordinance any evacuee property in a Province had vested in any person
exercising the powers of a Custodian under any law repealed hereby, the evacuee
property shall, on the commencement of this Ordinance, be deemed to have vested
in the Custodian appointed or deemed to have been appointed for the Province
under this Ordinance, and shall continue to so vest. It is clear from the said
provisions that the Administration of Evacuee Property (Chief Commissioners'
Provinces) Ordinance, No. 12 of 1949, was repealed and under s. 8(2) the
evacuee property automatically vested under U.P. Ordinance No. 1 of 141 1949
and thereafter deemed to have been vested in the Custodian under the
Administration of Evacuee Property (Chief Commissioners' Provinces) Ordinance,
No. 12 of 1949, as amended by the Administration of Evacuee Property (Chief
Commissioners' Provinces) Amendment Ordinance, 1949, Ordinance No. 20 of 1949,
was deemed to have been vested in the Custodian appointed under this Ordinance.
Under the saving clause things done or action
taken under the previous Ordinance was deemed to have been taken or done under
this Ordinance.
Central Act 31 of 1950 Section 58.
(1) The Administration of Evacuee Property
Ordinance, 1949........ are hereby repealed.
(2)........................................
(3) The repeal by this Act of the
Administration of Evacuee Property Ordinance, 1949...... shall not affect the
previous operation of that Ordinance, Regulation or corresponding law, and
subject thereto, anything done or any action taken in the exercise of any power
conferred by or under that Ordinance, Regulation or corresponding law, shall be
deemed to have been done or taken in the exercise of the powers conferred by or
under this Act as if this Act were in force on the day on which such thing was
done or action was taken.
Section 8(2) of this Act corresponds to s.
8(2) of the Central Ordinance No. 27 of 1949. This Act repeals the Ordinance
and practically enacts its provisions. Under this Act also the automatic
vesting of the evacuee property in the Custodian under the U.P. Ordinance No. 1
of 1949 deemed to have continued to vest under the Custodian appointed under
the Central Ordinance No. 27 of 1949 is continued, by fiction, under this Act.
The High Court of Allahabad in Azimunnissa's(1) case held that there was no
valid vesting under Ordinance XII of 1949 or even under Ordinance XX of 1949
for lack of legislative competence and, that, therefore, the deeming, clause in
Ordinance XXVII of 1949 or Act XXXI of 1950 would not continue the vesting.
This defect was cured by Act 1 of 1960 retrospectively validating the vesting
under the earlier laws. This aspect of the case was considered by this Court in
Azimunnissa v. The Deputy Custodian, Evacuee (1) A.1.R. 1951 All 561.
142 Properties, District Deoria(1). Therein
Kapur, J., speaking the Court, observed :
"The effect of s. 8(2-A) is that what
purported to have vested under s. 8 (2) of Ordinance XXVII of 1949 and which is
to be deemed to be vested under s. 8 of the Act which repealed that Ordinance,
notwithstanding any invalidity in the original vesting or any decree or order
of the Court shall be deemed to be evacuee property validly vested in the
Custodian and any order made by the Custodian in relation to the property shall
be deemed to be valid. Thus retrospective effect is given to the Act to
validate (1) what purports to be vested; (2) removes all defects or invalidity
in the vesting or fictional vesting under s. 8(2) of Ordinance XXVII of 1949 or
s. 8(2) of Ordinance XXVII of 1949 or s. 8(2) of the Act which repealed the
Ordinance; (3) makes the decrees and judgments to the contrary of any court in
regard to the vesting ineffective; (4) makes the property evacuee property by
its deeming effect; and (5) validates all orders passed by the Custodian in
regard to the property." In the instant case, from the narration of the
facts it is clear that Abdul Latif Hajee Esmail, in view of the disturbed
conditions, went away to Pakistan in the year 1948 and, therefore, he was an
evacuee within the meaning of the U.P. Ordinance 1 of 1949. His property, i.e.,
his interest in the partnership business, automatically vested under the
Ordinance in the Custodian. The Deputy Custodian of Evacuee Property, Kanpur,
issued notice to the firm on September 7, 1949, informing the firm that the
Kanpur property of the firm would be taken possession. The said vesting was
deemed to have taken place under the Central Ordinance 27 of 1949 and the
Central Act 31 of 1950. Subsequent proceedings were taken under the provisions
of the said Central Ordinance and Act. As stated above, the automatic vesting
of Abdul Latif Hajee Esmail's share in the firm was continued by Central
Ordinance 27 of 1949 and Central Act 31 of 1950 by the deeming provisions contained
therein. Therefore, no question of issuing further notice or making a
declaration that the said interest was evacuee property under s. 7(1) of the
Ordinance arises. Section 7 only applies to properties other than those which
have been vested automatically in the Custodian. Such a vesting cannot be
reopened under the Central Ordinance or the Central Act, for it has already
vested thereunder by a fiction. It follows that the petitioners have no
interest in the share of Abdul Latif Hajee Esmail in the firm which had vested
in the Custodian.
(1) [1961] 2 S. C. R. 91, 104.
143 That apart, after the Central Act 31 of
1950 came into force on April 17, 1950, the Deputy Custodian of Evacuee
Property (Judicial), Allahabad, made an order on the objections filed by the
firm. Therein he held that the share of Abdul Latif Hajee Esmail in the firm,
i.e., 5 annas out of 19 annas and 3 pies, vested in the Custodian and on that
finding declared it to be evacuee property. That order had become final.
The firm did not take any further proceedings
under the Act to set aside that order which bad become final. It is no longer
open to it to question this finding. It follows that the petitioners have no
fundamental right in regard to the interest of Abdul Latif Hajee Esmail in the
partnership.
But this will not dispose of the petition.
The petition is not solely based upon the fundamental right in respect of the
interest of Abdul Latif Hajee Esmail, for the allegations made in the petition
and the reliefs asked for disclose that the petitioners' case is that the
fundamental right of the firm and its partners is infringed by the impugned
orders in the manner mentioned in the petition.
But the reliefs asked for are similar to
those asked for in the appeals. As we are remanding the appeals to the High
Court for decision on merits, the other questions raised in the writ petition
can more conveniently be disposed of only after the High Court gives its
findings on the other points raised in the appeals. If the appeals succeed in the
High Court, this writ petition will become unnecessary; if they fail, the
findings therein will be binding in the writ petition. In that event, if
appeals are filed in this Court, the questions will be finally decided therein.
In these circumstances we dismiss the writ petition without prejudice to the
petitioners' personal rights which we will presently consider in the appeals.
This order will be subject to the final orders that may be passed in the
petitions by the High Court pursuant to the order of remand that we are making
in the appeals. There will be no order as to costs.
Now coming to the appeals, the High Court, as
indicated earlier, dismissed the writ petitions on the ground that it hid no
jurisdiction to issue a writ against the Appellate Officer in whose order the
order of the Competent Officer had merged, as he held his office outside the
territorial jurisdiction of the High Court of Uttar Pradesh.
To appreciate this argument it is necessary
to state some relevant facts. The Competent Officer of Kanpur who made the
order dated November 10, 1959, has his office at Kanpur in Uttar Pradesh. The
Appellate Officer, who by his order dated April 25, 1960, dismissed the appeal
against the order of the Competent Officer, has his office located at New Delhi.
In the memo144 randum of appeal filed by the appellants before the Appellate
Officer the location of his office was described thus .
"In the Court of the Appellate Officer.
Under the Evacuee Interest (Separation) Act, 1951.
Ministry of Rehabilitation. Government of
India, Dilaram Place, Mussoorie." In the order of the Appellate Officer,
the said Officer is described thus :
"Shri Parshottam Swarup, Appellate
Officer, India." It also shows that the appeal was heard and the judgment
was delivered at Allahabad. In the counter-affidavit filed in the writ petition
on behalf of the Appellate Officer it is stated in paras 4(a) and 4(b) that the
office of the Appellate Officer is situated at New Delhi and the record of the
Appellate Court is kept at Delhi. In the rejoinder affidavit filed by the
appellants it is averred that the Appellate Officer to whom the appeal was
presented had his head-office at Mussoorie, that he was appointed by the State
Government and that he gave his decision at Allahabad on April 25, 1960. From
the aforesaid affidavits the following facts emerge : The Competent Officer's
office is at Lucknow and he made his order at Lucknow. The Appellate Officer,
who was appointed by the State Government, had his main office at Mussoorie in
Uttar Pradesh, heard the appeal at Allahabad and dismissed it there. Later on,
his main office was shifted to Delhi. Section 2(a) of the Evacuee Interest
(Separation) Act, 1951 (Act No. 64 of 1951) defines "appellate
officer" thus :
" a appellate" officer means an
officer appointed as such by the State Government under section 13." Under
s. 13 of the said Act, the State Government with the approval of the Central
Government may, by notification in the Official Gazette, appoint as many
appellate officers as may be necessary for the purpose of hearing appeals
against the orders of the competent officers and an appellate officer shall
have jurisdiction over such local area or areas as may be specified in the
notification. Sections 14 to 18 provide for filing of appeals and also define
the powers of the competent appellate officers in the matter of disposing of
those appeals. The Appellate Officer therefore derives his jurisdiction under a
State statute, he is appointed by the State Government, though in consultation
with The Central Government, and exercises his jurisdiction within the
territorial limits of the High Court. It appears that the same officer is also
appointed by other States and that for convenience his office is now situated
at Delhi, though he disposes of appeals pertaining to each State only in that
State.
145 On these facts the question arises
whether the High Court of,Allahabad has jurisdiction to issue a writ under Art.
226 of the Constitution against the Appellate Officer. It has now been well
settled that under Art. 226 of the Constitution, before it was amended, the
High Court had no jurisdiction to issue a writ thereunder against a person or
authority unless the person or authority resided or was located within the
territorial jurisdiction of the appropriate High Court : See Election
Commission,, India v. Saka Veniata Subba Rao(1) and Lt. Col. Khajoor Singh v. The
Union of India(2). In the context of jurisdiction of the High Court to issue a
writ of certiorari against orders made by . a hierarchy of tribunals or
authorities, two situations arise namely, (1) where the order of an appellate
authority or tribunal, having its office outside the territorial jurisdiction
of the High Court, is a nullity, and (ii) where the order of the original
authority within the territorial jurisdiction of the High Court merges with
that of the appellate authority outside its territorial jurisdiction, in the
former case the appropriate High Court can issue a writ against the order of
the original authority and in the latter it cannot see, A. Thangal Kunju
Musaliar v. V. Venkitachalam Pott(3); Collector of Customs v. East India
Commercial Company (4) and Shriram Jhunjhunwala v. The State of Bombay(,). This
Court has also held that in all cases after the appellate authority has
disposed of the appeal. the operative order was of the final authority whether
it has reversed, modified or confirmed the original orders : see Collector of
Customs v. East India Commercial Company(4). Though Das, C.J., in The State of
Uttar Pradesh v. Mohammad Nooh(6), was not able to equate the orders made in
departmental enquiries with decrees in civil courts in the context of the
doctrine of merger, this Court in Collector of Customs, Calcutta v. East India
Commercial Co., Ltd. (4 ) distinguished that case with the following
observations at p. 573 "That case was not concerned with the territorial
jurisdiction of the High Court where the original authority is within such
territorial jurisdiction while the appellate authority is not and must
therefore be confined to the special facts with which it was dealing." In
that case the Court held that, as the Central Board of Revenue which had
confirmed the order of the Collector of Customs had its office in New Delhi,
the Calcutta High Court could not issue a writ against it. But in none of the
cases the Court considered a situation similar to that now presented to us.
They dealt with the case of an appellate authority or tribunal which bad been
appointed by the Central Government and was disposing of only (1) [1953] S.C.R.
1144. (2) [1961] 2 S.C.R. 828.
(3) [1955] 2S.C.R. 1196. (4) [1963] 2 S .C.R.
563.
(5) A.I.R. 1962 S.C. 670. (6) (1958] S.C.R.
595, 610.
146 statutory appeals or other proceedings in
a place outside the territorial jurisdiction of the concerned High Court,
though in one of the cases, i.e., Election Commission, India v. Saka Venkata
Subba Rao(1), the Central Authority for convenience heard the parties and made
the order within the territorial jurisdiction of the High Court. In all these
cases the appellate authority, both factually and legally;
had its residence or location outside the
territorial jurisdiction of the High Court. But in the present case, the
appellate authority, though for convenience is having its head office in New
Delhi, is factually and legally functioning under the State Act within the
territorial jurisdiction of the High Court. To hold that such an authority
which is appointed by the State Government and holds office, entertains and
disposes of appeals within the State is outside the jurisdiction of the High
Court is to carry technicality beyond reasonable limits. One can hold
reasonably that such an appellate authority is located within the territorial
limits of the High Court for the purpose of disposing of the appeals under the
Act. This is a converse case where legally and factually the appellate
authority is located in the State though for convenience it also holds office
in New Delhi, as presumbly the same officer has been appointed appellate
officer by other States under different Acts. We, therefore, hold that the High
Court has jurisdiction to issue a writ in appropriate cases against such an
authority under Art. 226.
In the result, the order of the High Court is
set aside and the appeals are remanded to it for disposal in accordance with
law. Costs will abide the result.
G.C. Appeal remanded (1) [1953] 3 S.C.R.
1144.
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