M/s M.M.T.C Limited v. Commissioner of Commercial Tax , (SC) BS187879
SUPREME COURT OF INDIA

Before:- Dr. Arijit Pasayat. P.Sathasivam and Aftab Alam, JJ.

Civil Appeal No. 6418 of 2008 (arising out of SPL (crl.) No 17397 of 2007), D/d. 3.11.2008.

M/s. M.M.T.C. Limited - Appellant

Versus

Commissioner of Commercial Tax & Ors. - Respondents

For the Appellant :- T.S Doabia, Sr. Advocate, Jaswant Persoya Manpreet Singh Doabia and Jagit Singh Chabbra Advocates.

For the Respondent :- Vikrant Singh Bais and B.S. Banthia, Advocate.

Madhya Pradesh Uchacha Nyayalaya (Khand Nyapeth Ko Appeal) Adhiniyam, 2005, Section 2(i) - Constitution of India, Article 227 - Letters Patent Appeal - Maintainability - LPA dismissed on the ground that appeal against order passed under Article 227 of the Constitution not maintainable - High Court seems to have gone by the nomenclature i.e. the description given in the writ petition to be one under Article 227 of the Constitution - Not considered the nature of the controversy and the prayer involved - Direction was to consider LPA on merit and time granted to prefer LPA - High Court not justified in holding that Supreme Court's earlier order only waive the limitation for filing LPA - Order of High Court not sustainable.

[Paras 6, 7, 9 and 17]

Cases Referred :-

Hari Vishnu Kamath v. Syed Ahmad Ishaque, AIR 1955 Supreme Court 233.

Umaji Keshao Meshram v. Radhikabai, AIR 1986 Supreme Court 1272.

Mahomedalli Allabux v. Ismailji Abdulali, AIR 1926 Bombay 332.

Raghunath Keshav Khadilkar v. Poona Municipality, AIR 1945 Bombay 7.

Garabandho v. Zemindar of Parlakimedi, AIR 1943 Privy Council 164.

Moulvi Hamid Hasan Nomani v. Banwarilal Roy, (1946-5 47) 74 Ind App 120,130-131.

State of U.P. v. Vijay Anand Maharaj, (1963) 1 SCR 1.

S.A.L. Narayan Rao v. Ishwarlal Bhagwandas, AIR 1965 Supreme Court 1818.

Ramesh v. Seth Gendalal Motilal Patni, 1966(3) SCR 198.

Arbind Kumar Singh v. Nand Kishore Prasad [1968 (3) SCR 322].

Ahmedabad Mfg. & Calico Ptg. Co. Ltd. v. Ram Tahel Ramnand (AIR 1972 Supreme Court 1598).

Sushilabai Laxminarayan Mudliyar v. Nihalchand Waghajibhai Shaha, 1993 Supp. (1) SCC 11.

Mangalbhai v. Radhyshyam (Dr.), AIR 1993 Supreme Court 806.

Lokmat Newspapers (P) Ltd. v. Shankarprasad 1999 (6) SCC 275.

Umaji Keshao Meshram v. Radhikabai, 1986 Supp.SCC 401.

Hari Vishnu Kamath v. Syed Ahmad Ishaque, AIR 1955 Supreme Court 233.

Aidal Singh v. Karan Singh, AIR 1957 Allahabad 414.

Raj Kishan Jain v. Tulsi Dass, AIR 1959 Punjab 291.

Barham Dutt v. Peoples' Coop. Transport Society Ltd., AIR 1961 Punjab 24.

Dev Rai v. Ram Chander Rai & Ors., AIR 2003 Supreme Court 3044.

Evacuee Property, Bangalore v. Khan Saheb Abdul Shukoor, 1961 (3) SCR 855.

Nagendra Nath Bora & Anr. v. Commissioner of Hills Division, AIR 1958 Supreme Court 398.

T.C Basappa v. T. Nagappa, AIR 1954 Supreme Court 440.

Rupa Ashok Hurra v. Ashok Hurra, AIR 2002 Supreme Court 1771.

JUDGMENT

Dr. Arijit Pasayat, J. - 1. Leave granted.

2. Challenge in this appeal is to the judgment of a Division Bench of the Madhya Pradesh High Court dismissing the writ appeal filed by the appellant on the ground that it was not maintainable. The appeal was filed under Section 2(1) of the M.P. Uchacha Nyayalay (Khand Nyaypeth Ko Appeal) Adhiniyam, 2005 (hereinafter referred to as the 'Act'). It was held that the order was passed in exercise of power of superintendence under Article 227 of the Constitution of India, 1950 (in short the 'Constitution') against which the Letters Patent Appeal is not maintainable. The order of learned Single Judge was passed on 9.11.2005. Against the said order, special leave petition was filed which was disposed of by this Court by order dated 16.2.2006. We shall refer to the text of the order later. The High Court construed as if this Court has only waived the limitation for filing of Letters Patent Appeal and there was no direction to consider the case on merits.

3. Learned counsel for the appellant submitted that the order of this Court is very clear and the conclusions of the High Court that merely limitation was waived is contrary to the clear terms of the earlier order of this Court. Additionally it is submitted that the prayer in the Writ Petition was to quash the order passed by the Assistant Commissioner, Commercial Tax. That being so, the mere fact that the writ petition was styled under Article 227 of the Constitution is of no consequence. It is the nature of the belief sought for and the controversy involved which determines the Article which is applicable.

4. Learned counsel for the respondent-State on the other hand supported the impugned judgment of the High Court.

5. The earlier order passed by this Court dated 22.8.2006 reads as follows:

(Underlined for emphasis)

6. A bare reading of the order shows that the direction was to consider the LPA on merits and time was granted to prefer the LPA within three weeks. The High Court was directed to dispose of the LPA on merits if it was otherwise free from defect. The High Court was, therefore, not justified in holding that this Court's earlier order only waived the limitation for filing a Letters Patent Appeal. On that score alone the High Court's order is unsustainable.

7. In addition, the High Court seems to have gone by the nomenclature gone by the nomenclature i.e. the discription given in the writ petition to be one under Article 227 of the Constitution. The High Court did not consider the nature of the controversy and the prayer involved in the Writ petition. As noted above the prayer was to quash the order of assessment passed by the Assistant Commissioner, Commercial Tax levying purchase as well as Entry Tax.

8. Section 2 of the Act reads as follows:

9. This Court in Hari Vishnu Kamath v. Syed Ahmad Ishaque and Ors. (AIR 1955 Supreme Court 233) held that the High Court while issuing writ of certiorari under Article 226 of the Constitution can only annul a decision of a Tribunal whereas under Article 227 of the Constitution it can issue further directions as well. As noted above the prayer in the Writ Petition was to set aside the decision of the assessing officer.

10. In Umaji Keshao Meshram v. Radhikabai [AIR 1986 Supreme Court 1272] it was noted as follows:

By Article 226 the power of issuing prerogative writs possessed by the Chartered High Courts prior to the commencement of the Constitution has been made wider and more extensive and conferred upon every High Court. The nature of the exercise of the power under Article 226, however, remains the same as in the case of the power of issuing prerogative writs possessed by the Chartered High Courts. A series of decisions of this Court has firmly established that a proceeding under Article 226 is an original proceeding and when it concerns civil rights, it is an original civil proceeding (see, for instance, State of U.P. v. Vijay Anand Maharaj [(1963) 1 SCR 1,16], Commissioner Income Tax v. Ishwarlal Bhagwandas [AIR 1965 Supreme Court 1818], Ramesh v. Seth Gendalal Motilal Patni (1966 (3) SCR 198), Arbind Kumar Singh v. Nand Kishore Prasad[1968 (3) SCR 322] and Ahmedabad Mfg. & Calico Ptg. Co. Ltd. v. Ram Tahel Ramnand (AIR 1972 Supreme Court 1598)." 11. In para 106, it was noted as follows:

12. In Sushilabai Laxminarayan Mudliyar v. Nihalchand Waghajibhai Shaha [1993 Supp. (1) SCC 11] this court with reference to an unreported judgment in Ratnagiri District Central Co-operative Bank Ltd. v. Dinkar Kashinath Watve, C.A. No. 520 of 1989 decided on 27.1.1989 held as follows:

Thus, the determining factor is the real nature of principal order passed by the Single Judge which is appealed against and neither the mentioning in the cause title of the application of both the articles nor the granting of ancillary orders thereupon made by learned Single Judge would be relevant. Thus, in each case, the Division Bench may consider the substance of the judgment under appeal to ascertain whether the Single Judge has mainly or principally exercised in the matter his jurisdiction under Article 226 or under Article 227. In the event in his judgment the learned Single Judge himself had mentioned the particular article of the Constitution under which he was passing his judgment, in an appeal under clause 15 against such a judgment it may not be necessary for the appellate bench to elaborately examine the question of its maintainability. When without mentioning the particular article the learned Single Judge decided on merits the application, in order to decide the question of maintainability of an appeal, against such a judgment, the Division Bench might examine the relief granted by the learned Single Judge, for maintainability of an appeal, the determination would be the main and not the ancillary relief. When a combined application under Articles 226 and 227 of the Constitution is summarily dismissed without reasons, the appeal Court may consider whether the facts alleged, warranted filing of the application under Article 226 or under Article 227 of the Constitution."

13. Thereafter this Court explained the ratio laid down in the case of Umaji's case (supra) and expressed thus:

14. In Mangalbhai & Ors. v. Radhyshyam (Dr.) [AIR 1993 Supreme Court 806] it was inter alia observed as follows:

15. In Lokmat Newspapers (P) Ltd. v. Shankarprasad [1999 (6) SCC 275] it was observed as follows:

16. In Surya Dev Rai v. Ram Chander Rai & Ors. [AIR 2003 Supreme Court 3044] after referring to decisions in Custodian of Evacuee Property, Bangalore v. Khan Saheb Abdul Shukoor, etc. [1961 (3) SCR 855] and Nagendra Nath Bora & Anr. v. Commissioner of Hills Division [AIR 1958 Supreme Court 398], T.C. Basappa v. T. Nagappa [AIR 1954 Supreme Court 440] and Rupa Ashok Hurra v. Ashok Hurra [AIR 2002 Supreme Court 1771], this Court held at paragraphs 17, 19 & 25 as follows:

17. In view of what has been stated above, the High Court was not justified in holding that the Letters Patent Appeal was not maintainable. In addition, a bare reading of this Court's earlier order shows that the impugned order is clearly erroneous. The impugned order is set aside. The writ appeal shall be heard by the Division Bench on merits.

18. The appeal is allowed.

Appeal allowed.