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Thursday, March 15, 2012

"(i) Whether Section 129(6) of the Customs Act, 1962, which stipulates that on demitting office as Member of the Customs Excise and Service Tax Appellate Tribunal (hereinafter referred to as the "CESTAT") a person shall not be entitled to appear before the CESTAT, is ultra vires the Constitution of India? (ii) Whether the said provision applies to the petitioner, as it was introduced after the petitioner had not only joined as Member of the CESTAT but also demitted office as such Member?"


                                                         REPORTABLE


                                              1



                                           
                       IN THE SUPREME COURT OF INDIA


                         CIVIL APPELLATE JURISDICTION


                       CIVIL APPEAL NO.  2850    OF 2012

                     (Arising out of SLP (C) No.8479 of 2010)




N.K. Bajpai                                                     ...Appellant


                                          Versus


Union of India & Anr.                                           ...Respondents


                                           WITH


                      CIVIL APPEAL NOS.  2851      OF 2012

                    (Arising out of SLP (C) Nos.8482 of 2010)

                                           AND

                     CIVIL APPEAL NOS.    2852     OF 2012

                    (Arising out of SLP (C) Nos.8484 of 2010)





                                   J U D G M E N T




Swatanter Kumar, J.




1.    Leave granted.




2.    This   judgment   shall   dispose   of   all   the   above   three   appeals,


as common questions of law arise therefrom, on somewhat similar


-facts   for   consideration   of   this   Court.     In   these   appeals,   the


following questions have been raised :


                                               2



             "(i)    Whether   Section   129(6)   of   the   Customs

             Act,   1962,   which   stipulates   that   on   demitting

             office   as   Member   of   the   Customs   Excise   and

             Service   Tax   Appellate   Tribunal   (hereinafter

             referred to as the "CESTAT") a person shall not

             be   entitled   to   appear   before   the   CESTAT,   is

             ultra vires the Constitution of India?


             (ii)    Whether   the   said   provision   applies   to   the

             petitioner,   as   it   was   introduced   after   the

             petitioner had not only joined as Member of the

             CESTAT   but   also   demitted   office   as   such

             Member?"




3.    We   may   notice   the   basic   factual   premise   from   which   the


above legal questions have arisen for consideration of this Court.


Primarily, we would be referring to the facts of SLP (C) No.8482 of


2010 titled P.C. Jain v. Union of India & Ors.




4.    The   appellant   joined   the   Indian   Customs   and   Central


Excise Service, Class - I (later called Group `A'), in the year 1956,


where   he   served   for   a   number   of   years,   in   different   capacities.


On 1st  November, 1990, the appellant was selected as a Member


(Technical) in the Customs, Excise and Gold (Control) Appellate


-Tribunal (CEGAT).  The appellant demitted his office as Member


(Technical)   of   CEGAT   on   7th  March,   1993.     As   he   was   a   law


graduate, he was enrolled as an advocate with the Bar Council of


India   on   18th  March,   1993.     The   CEGAT   was   replaced   by   the


Central Excise and Service Tax Appellate Tribunal (for short, `the


                                             3



CESTAT/Tribunal'.   Vide Finance Act, 2003, Section 129(6) was


introduced to the Customs Act, 1962 (for short `Customs Act') in


terms of which, the members of the Tribunal were debarred from


appearing,   acting   or   pleading   before   it.     Aggrieved   by   this


amendment,   the   appellant   along   with   other   appellants   in   other


appeals claimed to have met the Finance Minister and submitted


a   detailed   representation   bringing   out   the   inequities   and


arbitrariness   claimed   to   be   resulting   from   the   insertion   of


Section 129(6) of the Customs Act.       The Tribunal, on 9th  July,


2007, passed an order holding that the appellant or the persons


similarly situated, were not entitled to appear before it in view of


the bar contained in Section 129(6) of the Customs Act.   In the


meanwhile,   the   Ministry   also   responded   negatively   to   the


representations   submitted   by   the   appellants.     Faced   with   these


circumstances,   the   appellants   filed   a   writ   petition   before   the


High Court of Delhi at New Delhi being Writ -Petition No.6712 of


2007,   which   was   heard   by   a   Division   Bench   of   the   High   Court


and was dismissed vide judgment dated 13th  April, 2009, hence,


giving rise to the present appeals.




5.    The   Tribunal   took   the   view   that   the   word   `appellate


tribunal'   as   referred   to   in   Section   129(6),   is   defined   under


Section 2(1B) of the Customs Act to mean the Customs, Excise


                                                4



and   Service   Tax   Appellate   Tribunal   constituted   under   Section


129 of the Customs Act and any person ceasing to hold office as


President,   Vice-President   or   Member   cannot   appear   before   the


Tribunal or its Benches anywhere in India in view of  the bar in


Section 129(6).  One of the appellants, namely, N.K. Bajpai, was


relieved from the case.  The appellants had contended before the


High Court that Section 129(6) of the Customs Act is ultra vires


Articles 14, 19(1)(g) and 21 of the Constitution of India.   It was


further   contended   that,   in   any   event,   Section   129(6)   has   no


applicability   to   the   appellants,   in   view   of   the   fact   that   the


amendment   was   prospective,   but   when   the   appellants   were


appointed to the Tribunal as well as when they demitted office,


the   said   provision   was   not   a   part   of   the   Customs   Act.       Thus,


they   prayed   for   consequential   relief.     The   High   Court,  -by   a


detailed   judgment,   rejected   both   these   contentions.     It   was   of


the view that the predominant rationale for introduction of this


provision   was   to   strengthen   the   cause   of   administration   of


justice   and   to   remove   what   the   Legislature,   in   its   wisdom,   felt


was   a   perceived   class   bias.     It   was   further   held   that   the


restriction   imposed   could   not   be   said   to   be   unreasonable   and


was   held   to   withstand   the   test   of   Article   19(6)   of   the


Constitution.   It also held that once the right to appear, act or


                                                 5



plead is taken away  in respect of the  Tribunal,  since the  same


forum hears and adjudicates upon the matters concerning three


streams   of   law,   the   persons   concerned   are   automatically


debarred from acting, appearing or pleading before such forum,


i.e., the Tribunal in respect of all matters.  The High Court even


referred   to   some   of   the   judgments   of   this   Court,   as   well   as   to


Article   220   of   the   Constitution,   which   places   a   prohibition   or


limitation on the right of a permanent Judge of the High Court


to   plead   or   act   before   the   Court   of   which   he   had   been   a


permanent   Judge   and/or   before   the   Courts,   Tribunals,


Authorities over which the said Court had exercised supervisory


jurisdiction.




6.    Before we dwell upon the merits of the contentions raised


or the correctness of the reasons given by the High Court, it will


be appropriate for us to reproduce the provisions of Section 129


of the Customs Act, which read as follows :




              "129   -   Appellate   Tribunal--(1)   The                    Central

              Government shall constitute an Appellate Tribunal to

              be   called   the   Customs,   Excise   and   Service   Tax

              Appellate Tribunal consisting of as many judicial and

              technical   members   as   it   thinks   fit   to   exercise   the

              powers and discharge the functions conferred on the

              Appellate Tribunal by this Act.


              (2) A judicial member shall be a person who has for

              at least ten years held a judicial office in the territory


                                    6



of   India   or   who   has   been   a   member   of   the   Indian

Legal Service and has held a post in Grade I of that

service   or   any   equivalent   or   higher   post   for   at   least

three years, or who has been an advocate for at least

ten years.


Explanation.--For the purposes of this sub-section--


(i)     in computing the period during which a person

        has  held  judicial  office  in the  territory  of  India,

        there shall be included any period, after he has

        held any judicial office, during which the person

        has been an advocate or has held the office of a

        member   of   a   Tribunal   or   any   post,   under   the

        Union or a State, requiring special knowledge of

        law;


-


(ii)    in computing the period during which a person

        has been advocate, there shall be included any

        period   during   which   the   person   has   held   a

        judicial   office,   or   the   office   of   a   member   of   a

        Tribunal   or   any   post,   under   the   Union   or   a

        State,   requiring   special   knowledge   of   law   after

        he became an advocate.


(2A)   A  technical   member   shall   be   a   person   who  has

been   a   member   of   the   Indian   Customs   and   Central

Excise   Service,   Group   A,   and   has   held   the   post   of

Commissioner   of   Customs   or   Central   Excise   or   any

equivalent or higher post for at least three years.


(3) The Central Government shall appoint--


(a)     a person who is or has been a Judge of a High

        Court; or


(b)     one of the members of the Appellate Tribunal,


to be the President thereof.


(4) The Central Government may appoint one or more

members   of   the   Appellate   Tribunal   to   be   the   Vice-


                                                7



             President,   or,   as   the   case   may   be,   Vice-Presidents,

             thereof.


             (5) A Vice-President shall exercise such of the powers

             and perform such of the functions of the President as

             may   be   delegated   to   him   by   the   President   by   a

             general or special order in writing.


             (6)   On   ceasing   to   hold   office,   the   President,   Vice-

             President   or   other   Member   shall   not   be   entitled   to

             appear, act or plead before the Appellate Tribunal."




7.    Part III of the Constitution is the soul of the Constitution.  It


is   not   only   a   charter   of   the   rights   that   are   available   to   Indian


citizens,   but   is   even   completely   in   consonance   with   the   basic


norms   of   human   rights,   recognized   and   accepted   all   over   the


world.     The   fundamental   rights   are   basic   rights,   but   they   are


neither uncontrolled nor without restrictions.  In fact, the framers


of   the   Indian   Constitution   themselves   spelt   out   the   nature   of


restriction   on   such   rights.     Exceptions   apart,   normally   the


restriction   or  power   to  regulate   the   manner   of  exercise   of  a  right


would   not   frustrate   the   right.     Take,   for   example,   the   most


valuable right even from amongst the fundamental rights, i.e., the


right to freedom of speech and expression.  This right is conferred


by  Article  19(1)(a)   but in  turn, the  Constitution  itself  requires  its


regulation in the interest of the `public order' under Article 19(2).


The State could impose reasonable restrictions on the exercise of


the rights conferred, in the interest of the sovereignty and integrity


                                                 8



of   India,   the   security   of   the   State,   free   relations   with   foreign


States, public order, decency or morality or in relation to contempt


of   Court,   defamation   or   incitement   of   an   offence.     Such


restrictions   are   within   the   scope   of  -constitutionally   permissible


restriction.     Exercise   of   legislative   power   in   this   respect   by   the


State   can   be   subjected   to   judicial   review,   of   course,   within   a


limited   ambit.     Firstly,   the   challenger   must   show   that   the


restriction   imposed,   at   least  prima   facie,  is   violative   of   the


fundamental right.   It is then that the burden lies upon the State


to show that the restriction applied is by due process of law and is


reasonable.     If  the   restriction   is   not  able   to  satisfy   these   tests   or


either   of   them,   it   will   vitiate   the   law   so  enacted   and   the   action


taken in furtherance  thereto is unconstitutional.   It is difficult to


anticipate   the   right   to   any   freedom   or   liberty   without   any


reasonable   restriction.     Besides   this,   the   State   has   to   function


openly and in public interest.  The width of the expression `public


interest' cannot be restricted to a particular concept.  It may relate


to variety of matters including administration of justice.




8.    Let   us   also   examine   the   fundamental   rights   and   their


restrictions   as   a   constitutional   concept.   In   the   case   of  S.


Rangarajan  v. P. Jagjivan Ram and Ors. [(1989) 2 SCC 574], while


dealing with the censorship of a film, this Court observed :


                                              9




                    -

                    `......There does indeed have to be a compromise

                    between   the   interest   of   freedom   of   expression

                    and   special   interests.   But   we   cannot   simply

                    balance the two interests as if they are of equal

                    weight.   Our   commitment   of   freedom   of

                    expression   demands   that   it   cannot   be

                    suppressed   unless   the   situations   created   by

                    allowing   the   freedom   are   pressing   and   the

                    community   interest   is   endangered.   The

                    anticipated   danger   should   not   be   remote,

                    conjectural   or   far-fetched.   It   should   have

                    proximate and direct nexus with the expression.

                    The   expression   of   thought   should   be

                    intrinsically dangerous to the public interest. In

                    other   words,   the   expression   should   be

                    inseparably   locked   up   with   the   action

                    contemplated like the equivalent of a `spark in a

                    power keg'.'




9.     Where   the   Court   applies   the   test   of   `proximate   and   direct


nexus   with   the   expression',   the   Court   also   has   to   keep   in   mind


that   the   restriction   should   be   founded   on   the   principle   of   least


invasiveness, i.e., the restriction should be imposed in a manner


and to the extent which is unavoidable in a given situation.   The


Court would also take into consideration whether the anticipated


event   would   or   would   not   be   intrinsically   dangerous   to   public


interest. -




10.    Now,   we   have   to   examine   the   various   tests   that   have   been


applied   over   a   period   of   time   to   examine   the   validity   and/or


reasonability of the restrictions imposed upon the rights.


                                                10



11.    No person can be divested of his fundamental rights.   They


are incapable of being taken away or abridged.  All that the State


can   do,   by   exercise   of   its   legislative   power,   is   to   regulate   these


rights   by   imposition   of   reasonable   restrictions   on   them.       Upon


an analysis of the law, the following tests emerge:-




                            a)   The restriction can be imposed only by


                               or under the authority of law.  It cannot


                               be   imposed   by   exercise   of   executive


                               power without any law to back it up.




                            b) Each restriction must be reasonable.


                            c) A   restriction   must   be   related   to   the


                               purpose mentioned in Article 19(2).


12.    The   questions   before   us,   thus,   are   whether   the   restriction


imposed  was  reasonable  and   whether   the   purported  purpose  of


the   same   squarely   fell   within   the   relevant   clauses   discussed


above.     The   legislative   determination   of   what   restriction   to


impose on a freedom -is final and conclusive, as it is not open to


judicial   review.       The   judgments   of   this   Court   have   been


consistent   in   taking   the   view   that   it   is   difficult   to   define   or


explain the word "reasonable" with any precision.   It will always


be   dependent  on  the  facts   of  a  given  case   with  reference  to   the


                                            11



law which has been enacted to create a restriction on the right.


It is neither possible nor advisable to state any abstract standard


or   general   pattern   of  reasonableness   as  applicable   uniformly   to


all cases.




13.    A common thread runs through Parts III, IV and IVA of the


Constitution   of   India.     One   Part   enumerates   the   fundamental


rights,   the   second   declares   the   fundamental   principles   of


governance   and   the   third   lays   down   the   fundamental   duties   of


the citizens.   While interpreting any of these provisions, it shall


always   be   advisable   to   examine   the   scope   and   impact   of   such


interpretation   on   all   the   three   constitutional   aspects   emerging


from these Parts.   It is necessary to be clear about the meaning


of   the   word   "fundamental"   as   used   in   the   expression


"fundamental   in   the   governance   of   the   State"   to   describe   the


directive   principles   which   have   not   legally   been   made


enforceable.     Thus,   the   word   "fundamental"   has   been  -used   in


two   different   senses   under   our   Constitution   of   India.       The


essential   character   of   the   fundamental   rights   is   secured   by


limiting   the   legislative   power   and   by   providing   that   any


transgression   of   the   limitation   would   render   the   offending   law


pretendo  void.       The   word   "fundamental"   in   Article   37   of   the


Constitution also means basic or essential, but it is used in the


                                              12



normative   sense   of   setting,   before   the   State,   goals   which   it


should try to achieve. As already noticed, the significance of the


fundamental   principles   stated   in   the   directive   principles   have


attained greater significance through judicial pronouncements.




14.    As difficult as it is to anticipate the right to any freedom or


liberty   without   any   reasonable   restriction,   equally   difficult   is   it


to imagine the existence of a right not coupled with a duty.  The


duty may be a direct or indirect consequence of a fair assertion


of   the   right.     Although   Part   III   of   the   Constitution   of   India


confers   rights,   still   the   duties   and   restrictions   are   inherent


thereunder.  These rights are basic in nature and are recognized


and   guaranteed   as   natural   rights,   inherent   in   the   status   of   a


citizen   of   a   free   country,   but   are   not   absolute   in   nature   and


uncontrolled   in   operation.     Each  -one   of   these   rights   is   to   be


controlled, curtailed and regulated, to a certain extent, by laws


made   by   the   Parliament   or   the   State   Legislature.     In   spite   of


there   being   a   general   presumption   in   favour   of   the


constitutionality   of   a   legislation   under   challenge   in   case   of


allegations   of   alleging   violation   of   the   right   to   freedom


guaranteed by clause (1) of Article 19 of the Constitution, on a


prima   facie  case   of   such   violation   being   made   out,   the   onus


shifts upon the State to show that the legislation comes within


                                                13



the permissible restrictions set out in clauses (2) to (6) of Article


19 and that the particular restriction is reasonable.  It is for the


State to place appropriate material justifying the restriction and


its reasonability on record.




15.    The   Advocates   Act,   1961   (hereinafter   referred   to   as   `the


Advocates   Act')   itself   was   introduced   to   implement   the


recommendations of the All India Bar Committee made in 1953.


It aimed at establishment of an All India Bar Council, a common


rule   for   the   advocates   and   integration   of   the   Bar   into   a   single


class of practioners known as `advocates'.   It was also to create


autonomous Bar Councils, one for the whole of India and one for


each   State.     The   Advocates   Act   provides   for   various   aspects   of


the   legal  -profession.     Under   Section   29   of   the   Advocates   Act,


only one class of persons is entitled to practice the profession of


law,   namely,   advocates.     Section   30   of   the   Advocates   Act


provides that subject to the provisions of the Act, every advocate


whose   name   is   entered   in   the   State   rolls   shall,   as   a   matter   of


right, be entitled to practice throughout the territories to which


this   Act   applies,   in   all   courts   including   the   Supreme   Court   of


India.     Such   an   Advocate   would   also   be   entitled   to   practice


before any tribunal or person legally authorized to take evidence


and before any other authority or person before whom such an


                                               14



advocate   is,   by   or   under   any   law   for   the   time   being   in   force,


entitled   to   practice.     Section   33   of   the   Advocates   Act   further


states   that   except   as   otherwise   provided   in   that   Act   or   in   any


other law for the time being in force, no person shall, on or after


the appointed day, be entitled to practice in any court or before


any   authority   or   person   unless   he   is   enrolled   as   an   advocate


under   the   Advocates   Act.     A   bare   reading   of   these   three


provisions clearly shows that this is a statutory right given to an


advocate   to   practice   and   an   advocate   alone   is   the   person   who


can   practice   before   the   courts,   tribunals,   authorities   and


persons.  But this right is statutorily regulated by two conditions


-   one,   that   a  -person's   name   should   be   on   the   State   rolls   and


second,   that   he   should   be   permitted   by   the   law   for   the   time


being in force, to practice before any authority or person.  Where


the   advocate   has   a   right   to   appear   before   an   authority   or   a


person, that right can be denied by a law that may be framed by


the competent Legislature.   Thus, the right to practice is not an


absolute   right   which   is   free   of   restriction   and   is   without   any


limitation.     There   are   persons   like  Mukhtiars  and   others,   who


were   earlier   entitled   to   practice   before   the   Courts,   but   the


Advocates   Act   itself   took   away   the   right   to   practice   which   was


available   to   them   prior   to   its   coming   into   force.     Thus,   the


                                               15



Advocates   Act   placed   a   complete   prohibition   upon   the   right   to


practice of those persons who were not advocates enrolled with


the State Bar Council.




16.    Therefore,   the   right   to   practice,   which   is   not   only   a


statutory   right   under   the   provisions   of   the   Advocates   Act   but


would   also   be   a   fundamental   right   under   Article   19(1)(g)   of   the


Constitution is subject to reasonable restrictions.   An argument


could be raised that a person who has obtained a degree of law


is entitled to practice anywhere in India, his right, as enshrined


in   the  -Constitution   and   under   the   Advocates   Act   cannot   be


restricted or regulated and also that it is not necessary for him


to enroll himself on any of the State rolls.  This argument would


be   fallacious   in   face   of   the   provisions   of   the   Advocates   Act   as


well   as   the   restrictions   contemplated   in   Article   19(6)   of   the


Constitution.   The Legislature is entitled to make a law relating


to   the   professional   or   technical   qualifications   necessary   for


carrying on that profession.




17.    We may also refer to a recent development of law in relation


to right of the advocates or former judicial officers, to practice the


profession of law.  The Bar Council of India has been vested with


the   general   power   to   make   rules   under   Section   49   of   the


                                               16



Advocates   Act.     In   furtherance   to   this   power   vested   with   it,   the


Bar Council of India has framed the Bar Council of India Rules.


Chapter III of these Rules deals with the conditions for the right


to practice.  Rule 7 of Chapter III of the said Rules is quite in pari


materia with Section 129(6) of the Act and it reads as under :




             "An   officer   after   his   retirement   or   otherwise   ceasing

             to   be   in   service   for   any   reasons,   if   enrolled   as   an

             Advocate   shall   not   practice   in   any   of   the   Judicial,

             Administrative   Courts/Tribunals/Authorities,   which

             are -


             presided over by an officer equivalent or lower to the

             post which such officer last held."




18.    Rules   7   and   7A   of   the   Bar   Council   of   India   Rules,   were


introduced by the Bar Council of India on 14th October, 2007.




19.    This   Rule   clearly   mandates   that   upon   his   retirement   or


when otherwise ceasing to be in service for any reason, a person


will   not  be   able   to   practice   in   the   administrative   tribunal,   other


tribunals, authorities, courts etc. over which he had presided and


which were headed by an officer in a post equivalent to or lower


than   the   post   which   he   had   held.     The   definition   in   the


explanation   of   what   an   officer   shall   mean   and   include   further


widened   the   scope   of   interpretation.     Not   only   this,   requiring


adherence   to   professional   standard   and   values,   Rule   7A   further


makes   it   mandatory   that   a   person   who   has   been   dismissed,


                                                   17



retrenched,   compulsorily   retired,   removed   or   otherwise   retired


from   Government   Service   or   service   of   the   High   Court   or


Supreme   Court   on   the   charges   of   corruption,   dishonesty


unbecoming   of   an   employee,   etc.   would   not  even   be   enrolled   as


an advocate on the rolls of a State Bar Council.  These provisions


clearly   demonstrate   the   intention   of   the   Legislature   to   place


restrictions for entry to the profession of law.   These restrictions


have to be decided only on the touchstone of reasonableness and


legislative competency.   The restriction which withstands such a


test would be enforceable in accordance with law.




20.    The  contention  raised  on behalf of the  appellants  before us


is   that   Section   129(6)   of   the   Customs   Act   imposes   a   complete


restriction         upon         the         appellants         and,         therefore,         is


unconstitutional.     While   examining   the   merit   of   this   contention,


we   must   notice   that   there   is   no   challenge   to   the   legislative


competence of the Legislature which enacted and inserted Section


129(6)   of   the   Act.     Once   there   is   no   challenge   to   the   legislative


competence   and   the   provision   remains   as   a   valid   piece   of


legislation on the statute book, then the only question left for this


Court   to   examine   is   whether   this   provision   is   so   unreasonable


that   it   inflicts   an   absolute   restriction   upon   carrying   on   of   the


profession   by   the   appellants.     For   two   different   reasons,   we   are


                                                 18



unable to hold that the restriction imposed under Section 129(6)


of   the   Act   is   unreasonable   or  ultra   vires.     Firstly,   it   is   not   an


absolute   restriction.     It  is   a   partial   restriction   to   the   extent   that


the   persons   who   have   held   the   office   of   the   President,   Vice---


President or other Members of the Tribunal cannot appear, act or


plead before that Tribunal.   In modern times, there are so many


courts   and   tribunals   in   the   country   and   in   every   State,   so   that


this   restriction   would   hardly   jeopardize   the   interests   of   any


hardworking and upright advocate.  The right of such advocate to


practice in  the High Courts, District Courts and other  Tribunals


established   by   the   State   or   the   Central   Government   other   than


the   CESTAT   remains   unaffected.       Thus,   the   field   of   practice   is


wide open, in which there is no prohibition upon the practice by a


person   covered   under   the   provisions   of   Section   129(6)   of   the


Customs Act.   Secondly, such a restriction is intended to serve a


larger   public   interest   and   to   uplift   the   professional   values   and


standards   of   advocacy   in   the   country.       In   fact,   it   would   add


further to public confidence in the administration of justice by the


Tribunal,   in   discharge   of   its   functions.     Thus,   it   cannot   be   held


that  the restriction has been introduced  without any purpose or


object.     In   fact,   one   finds   a   clear   nexus   between   the   mischief


sought to be avoided and the object aimed to be achieved.


                                             19



-




21.    Now,   we   may   deal   with   some   of   the   judgments,   where


similar   restrictions   imposed   by   law   were   found   to   be   valid   and


unexceptionable.   In  Sukumar  Mukherjee  v.  State  of West Bengal


[(1993)3   SCC   723,   the   State   of   West   Bengal   had   prohibited


private practice by medical practioners who were also teaching in


the   medical   institutions.     This   was   provided   under   Section   9   of


the   West   Bengal   State   Health   Service   Act,  1990.     The   argument


raised was that this provision was repugnant to Section 27 of the


Indian Medical Council Act, 1956 which, in turn, provides for the


right of a registered medical practitioner to practice, as well as an


argument that it  ultra vires  Articles 19(1)(g),  19(6) and 14 of the


Constitution of India.  This Court repelled both these contentions


and   held   that   the   prohibition   against   the   members   of   the   West


Bengal   Medical   Education   Service   (WBMES)   from   practicing


privately was not unconstitutional or repugnant  to the statutory


provisions.   It only regulated a class of persons, i.e., the persons


who   were   members   of   that   service   and   secondly,   this   was


intended   to   maintain   standards   of   the   medical   education   which


was the very object of enacting the Indian Medical Council Act.




-


                                            20



22.    Similarly, while dealing with the question as to whether the


closure   of   butcher   houses   on   national   holidays   or   on   certain


particular   days   was   unconstitutional   and   violative   of   the


fundamental   right   to   carry   on   business   in   terms   of   Articles


19(1)(g), 19(6) and 14 of the Constitution, in the case of Municipal


Corporation   of   the   City   of   Ahmedabad   &   Ors.  v.  Jan  Mohammed


Usmanbhai   &   Anr.  [(1986)   3   SCC   20],     a   Constitution   Bench   of


this Court, while rejecting the challenge, held as under :




            "17.  Clause   (6)   of   Article   19   protects   a   law   which

            imposes   in   the   interest   of   general   public   reasonable

            restrictions   on the  exercise  of  the  right  conferred   by

            sub-clause (g) of clause (1) of Article 19. Obviously it

            is  left  to  the  court in case  of a dispute  to determine

            the reasonableness of the restrictions imposed by the

            law.   In   determining   that   question   the   court   cannot

            proceed on a general notion of what is reasonable in

            the   abstract   or   even   on   a   consideration   of   what   is

            reasonable   from   the   point   of   view   of   the   person   or

            persons   on   whom   the   restrictions   are   imposed.   The

            right   conferred   by   sub-clause   (g)   is   expressed   in

            general language and if there had been no qualifying

            provision like clause (6) the right so conferred would

            have been an absolute one. To the persons who have

            this   right   any   restriction   will   be   irksome   and   may

            well   be   regarded   by   them   as   unreasonable.   But   the

            question   cannot   be   decided   on  that  basis.   What  the

            court   has   to   do   is   to   consider   whether   the  --

            restrictions imposed are reasonable in the interest of

            general   public.   In   the  State   of   Madras  v.  V.G.   Row

            this Court laid down the test of reasonableness in the

            following terms:


                   "It is important   in  this context to bear in  mind

                   that   the   test   of   reasonableness,   wherever

                   prescribed, should be applied to each individual


                                21



      statute impugned, and no abstract standard, or

      general   pattern   of   reasonableness   can   be   laid

      down   as   applicable   to   all   cases.   The   nature   of

      the   right   alleged   to   have   been   infringed,   the

      underlying purpose of the restrictions imposed,

      the extent and urgency of the evil sought to be

      remedied   thereby,   the   disproportion   of   the

      imposition,   the   prevailing   conditions   at   the

      time, should all enter into the judicial verdict."


19.  The expression  `in  the  interest   of general  public'

is of wide import comprehending public order, public

health,   public   security,   morals,   economic   welfare   of

the community and the objects mentioned in Part IV

of   the   Constitution.   Nobody   can   dispute   a   law

providing   for   basic   amenities;   for   the   dignity   of

human labour like provision for canteen, rest rooms,

facilities for drinking water, latrines and urinals etc.

as a social welfare measure in the interest of general

public.   Likewise   in   respect   of   legislations   and

notifications   concerning   the   wages,   working

conditions   or   the   other   amenities   for   the   working

class, the courts have adopted a liberal attitude and

the   interest   of   the   workers   has   been   protected

notwithstanding   the   hardship   that   might   be   caused

to   the   employers.   It   was,   therefore,   open   to   the

legislature   or   the   authority  -concerned,   to   ensure

proper holidays for the municipal staff working in the

municipal   slaughterhouses   and   provide   certain

closed   days   in   the   year.   Even   according   to   the

observations   of   the   High   Court   nobody   could   have

any   objection   to   the   standing   orders   issued   by   the

Municipal Commissioner under Section 466(1)(D)(b) if

municipal   slaughterhouses   were   closed   on   certain

days   in   order   to   ensure   proper   holidays   for   the

municipal   staff   working   in   the   municipal

slaughterhouses.   The   only   objection   was   that   the

standing orders direct closure of the slaughterhouses

on   Janmashtami,   Jain   Samvatsari,   October   2

(Mahatma   Gandhiji's   birthday),   February   12

(Shraddha   day   of   Mahatma   Gandhi),   January   30

(Mahatma   Gandhiji'sNirwan   day),   MahavirJayanti

and   Ram   Navami.   These   days   were   declared   as


                                  22



holidays under the standing orders for the Municipal

Corporation slaughterhouses.


20.  The tests of reasonableness have to be viewed in

the context of the issues which faced the legislature.

In the construction of such laws and in judging their

validity, courts must approach the problem from the

point of view of furthering the social interest which it

is the purpose of the legislation to promote. They are

not in these matters functioning in vacuo but as part

of society which is trying, by the enacted law, to solve

its   problems   and   furthering   the   moral   and   material

progress   of   the   community   as   a   whole.   (See  Jyoti

Persh   adv.  Union   Territory   of   Delhi)   If  the   expression

`in   the   interest   of   general   public'   is   of   wide   import

comprising   public   order,   public   security   and   public

morals,   it   cannot   be   said   that   the   standing   orders

closing the slaughterhouses -


on seven days is not in the interest of general public.


21.  In   view   of   the   aforesaid   discussion   we   are   not

prepared   to   hold   that   the   closure   of   the   slaughter

house   on   seven   days   specified   in   the   two   standing

orders in any way put an unreasonable restriction on

the   fundamental   right   guaranteed   to   the   petitioner-

respondent under Article 19(1)(g) of the Constitution.


22.  This leads us to the second contention raised on

behalf   of   the   respondent,   which   is   based   on   Article

14   of  the   Constitution.   The  High  Court  had   repelled

this contention for a valid reason with which we fully

agree.


23.  It   is   now   well   established   that   while   Article   14

forbids class legislation it does not forbid reasonable

classification for the purposes of legislation and that

in order to pass the test of permissible classification

two   conditions   must   be   fulfilled,   namely,   (i)   the

classification   must   be   founded   on   an   intelligible

differentia which distinguishes persons or things that

are   grouped   together   from   others   left   out   of   the

group,   and   (ii)   such   differentia   must   have   rational

relation   to   the   object   sought   to   be   achieved   by   the

statute   in   question.   The   classification,   may   be


                                 23



founded   on   different   basis,   namely,   geographical,   or

according   to   objects   or   occupations   or   the   like   and

what   is   necessary   is   that   there   must   be   a   nexus

between   the   basis   of   classification   and   the   object   of

the   Act   under   consideration.   There   is   always   a

presumption   in   favour   of   constitutionality   of   an

enactment and the burden is upon him who attacks

it, to show that there has been a clear violation of the

constitutional   principles.   The   courts   must  -presume

that   the   legislature   understands   and   correctly

appreciates the needs of its own people, that its laws

are   directed   against   problems   made   manifest   by

experience and that its discriminations are based on

adequate grounds. It must be borne in mind that the

legislature   is   free   to   recognise   degrees   of   harm   and

may confine its restrictions to those cases where the

need is deemed to be the clearest, and finally that in

order to sustain the presumption of constitutionality

the   court   may   take   into   consideration   matters   of

common knowledge, matters of common rapport, the

history   of   the   times   and   may   assume   every   state   of

facts   which   can   be   conceived   to   be   existing   at   the

time of legislation.


24.  The   objects   sought   to   be   achieved   by   the

impugned   standing   orders   are   the   preservation,

protection and improvement of livestock. Cows, bulls,

bullocks   and   calves   of   cows   are   no   doubt   the   most

important   cattle  for  the  agricultural   economy of  this

country.   Female   buffaloes   yield   a   large   quantity   of

milk and are, therefore, well looked after and do not

need   as   much   protection   as   cows   yielding   a   small

quantity   of   milk   require.   As   draught   cattle   male

buffaloes   are   not   half   as   useful   as   bullocks.   Sheep

and   goat   give   very   little   milk   compared   to   the   cows

and   the   female   buffaloes,   and   have   practically   no

utility as draught animals. These different categories

of   animals   being   susceptible   of   classification   into

separate   groups   on   the   basis   of   their   usefulness   to

society,   the   butchers   who   kill   each   category   of

animals   may   also   be   placed   in   distinct   classes

according   to   the   effect   produced   on   society   by   the

carrying   on   of   their   respective   occupations.   The

butchers   who  -slaughter   cattle   formed   the   well


                                                  24



              defined   class   based   on   their   occupation.   That

              classification   is   based   on   intelligible   differentia   and

              distinguishes   them   from   those   who   kill   goats   and

              sheep and this differentiation has a close connection

              with   the   object   sought   to   be   achieved   by   the

              impugned   Act,   namely   the   preservation,   protection

              and   the   improvement   of   our   livestock.   The

              attainment   of   these   objectives   may   well   necessitate

              that   the   slaughterers   of   cattle   should   be   dealt   with

              differently   than   the   slaughterers   of   say,   goats   and

              sheep.   The   standing   orders,   therefore,   in   our   view,

              adopt a classification based on sound and intelligible

              basis and can quite  clearly stand  the test  laid down

              above."




23.    Another   Constitution   Bench   of   this   Court,   while   dealing


with the provisions of the Legal  Practitioners Act, 1879, a pre-


constitution   law,   considered   the   correctness   or   effect   of


restrictions on the rights of a Mukhtiar to act or plead before the


Civil   Court,   under   Rule   2   of   the   Rules,   framed   under   the


provisions of that Act by the High Court and held that Sections


9 and 11 of that Act would have to be read together.   It would


be wrong to treat the mere right to practice conferred by Section


9   of   the   Legal   Practioners   Act   as   disassociated   from   the


functions, powers and duties of  Mukhtiar  referred to in Section


11   of   that   Act.     The     right     to     appear     before     a   court     is


controlled   by   these provisions.   Primarily holding that -Rule 2


as   enacted   by   the   High   Court   was   not   in   excess   of   the   rule-


making power under Section 11 of that Act, this Court also held


                                              25



that   the  Mukhtiars  cannot   complain   of   any   violation   of   their


fundamental right to practice the profession, to which they have


been enrolled under the provisions of that Act.  In other words,


the   challenge        on   the   ground   of   inequality                 and


unreasonableness,   both,   were   repelled   by   this   Court.       {Ref.


Devata Prasad  Singh Chaudhuri & Ors. v. The Hon'ble the Chief


Justice and Judges of the Patna High Court [AIR 1962 SC 201]}.




24.    There   are   certain   legislations   which   restrict   appearance   of


advocates before specialized or specific tribunals.     These kinds


of   restrictions   upon   the   right   of   the   lawyers   to   appear   before


those tribunals have been challenged in the courts from time to


time.     The courts have consistently taken the view that limited


restrictions   are   neither   violative   of   the   fundamental   rights,   nor


do they tantamount to denying the equality before law in terms


of Article 14 of the Constitution.     In the case of  H.S. Srinivasa


Raghavachar   &   Ors.  v.  State   of   Karnataka  [(1987)   2   SCC   692],


this   Court   was   primarily   concerned   with   the   validity   of   Section


44(1)   of   the  -Karnataka   Land   Reforms   Amendment   Act,   1974


which   was   challenged   on   the   ground   that   it   was  ultra   vires


Articles 39(b) and 39(c) of the Constitution and was destructive


of the basic structure of the Constitution.  An ancillary question


that   fell   for   the   consideration   of   this   Court   was   where   sub-


                                                26



section   (8)   of   Section   48   of   that   Act,   which   prohibited   legal


practitioners   from   appearing   in   such   proceedings   before   the


Tribunals,   was   repugnant   to   Section   30   of   the   Advocates   Act,


and Section 14 of the Bar Council of India Act.     The challenge


was primarily accepted by this Court on the ground that it was a


case   of   lack   of   legislative   competence,   inasmuch   as   the   State


Legislature  was not  competent  to  make   a  law  repugnant to  the


laws made by the Parliament pursuant to Entries 77 and 78 of


List I of the Seventh Schedule to the Constitution.     This Court


directed   that   Section   48(8)   of   that   Act   would   not   be   enforced


against the advocates to prevent them from appearing before the


Tribunal.   This case, relied upon by the learned counsel for the


appellant,   is   completely   different   on   facts   and   in   law.       In   the


case   in   hand,   the   consistent   position   is   that   there   is   no


challenge   to   the   legislative   competence   in   amending   Section


129(6)   of   the   Customs   Act.       The   challenge   is   limited   to   the


ground of its being  ultra vires  Articles  -19(1)(g), 19(6) and 14 of


the   Constitution.       Therefore,   the   counsel   cannot   draw   any


advantage from that case.




25.    In  the  case  of  Paradip  Port  Trust, Paradip  v.  Their  Workmen


[AIR   1977   SC   36],   this   Court   dealt   with   the   right   of   the   legal


practitioners to represent employers before the Industrial Tribunal


                                                 27



that  too only with the consent of  the opposite party  and leave of


the Tribunal.   The restriction was limited in its scope and impact


and   this   Court   held   that   it   was   not   violative   of   the   right   of   the


legal  practitioners  as they  will  have  to conform  to the  conditions


laid down in Section 36(4) of the Industrial Disputes Act, 1947.





26.    Refuting contentions that this provision would be repugnant


to   Section   30   of   the   Advocates   Act,   this   Court   held   that   the


Industrial Disputes Act was a special piece of legislation with the


aim   of   labour   welfare   and   representation   before   the   adjudicative


authorities therein has been specifically provided for with a clear


object in view.



27.    In   the   case   of  Lingappa   Pochamma   Appelwar   v.   State   of


Maharashtra   &   Anr.  [(1985)   1   SCC   479],   in   somewhat   similar


circumstances   relating   to   the   provisions   of   the   Maharashtra  --


Restoration   of   Lands   to   Scheduled   Tribes   Act,   1974,   this   Court


clearly rejected the contention that an advocate enrolled under the


Advocates  Act,  has  an  absolute   right  to appear  before  any  of  the


courts and tribunals in the country.   Though at that time Section


30   of   the   Advocates   Act   had   not   come   into   force,   but   still   the


Court   felt   that   the   right   of   an   advocate   to   practice   after   being


brought   on   the   roll   of   the   State   Bar   Council   is,   just   what   is


                                               28



conferred   upon   him   under   the   Bar   Councils   Act,   1926   and


therefore, Section 9(a) of the Maharashtra Restoration of Lands to


Scheduled   Tribes   Act   which   placed   that   restriction   was   not


unconstitutional   or   impinging   on   the   rights   of   the   advocates   to


practice.       The   Court   also   observed   that   it   was   well   settled   that


apart from under the provisions of Article 22 of the Constitution,


no litigant has a fundamental right to be represented by a lawyer


in any Court.


28.    In the case of  Indian  Council of Legal Aid and  Advice  v.  Bar


Council   of   India   &   Anr.  [(1995)   1   SCC   732],   this   Court   while


holding that a prohibition against a person, more than 45 years of


age being  enrolled as an advocate was violative of Article 14 of the


Constitution   as   being   discriminatory   and   arbitrary,   made  some


observations with regard to duties and functions of the advocates


-and   Bar   Councils,   for   the   dignity   and   purity   of   the   profession,


which are worthy of being noticed and are accordingly reproduced


:


              "3.   It   will   be   seen   from   the   above   provisions   that

              unless a person is enrolled as an advocate by a State

              Bar   Council,   he   shall   have   no   right   to   practise   in   a

              court of law or before any other Tribunal or authority.

              Once   a   person   fulfils   the   requirements   of   Section   24

              for enrolment, he becomes entitled to be enrolled as an

              advocate and on such enrolment he acquires a right to

              practise as stated above. Having thus acquired a right

              to   practise   he   incurs   certain   obligations   in   regard   to

              his conduct as a member of the noble profession. The


                                                29



              Bar   Councils   are   enjoined   with   the   duty   to   act   as

              sentinels   of   professional   conduct   and   must   ensure

              that the dignity and purity of the profession are in no

              way undermined. Its job is to uphold the standards of

              professional   conduct   and   etiquette.   Thus   every   State

              Bar Council and the Bar Council of India has a public

              duty to perform, namely, to ensure that the monopoly

              of   practice   granted   under   the   Act   is   not   misused   or

              abused   by   a   person   who   is   enrolled   as   an   advocate.

              The Bar Councils have been created at the State level

              as   well   as   the   Central   level   not   only   to   protect   the

              rights, interests and privileges of its members but also

              to   protect   the   litigating   public   by   ensuring   that   high

              and noble traditions are maintained so that the purity

              and dignity of the profession are not jeopardized. It is

              generally believed that members of the legal profession

              have   certain   social   obligations,   e.g.,   to   render   "pro

              bono   publico"   service   to   the   poor   and   the

              underprivileged. Since the duty of a lawyer is to assist

              the court in the administration of justice, the practice

              of   law   has   a   public   utility   flavour  -and,   therefore,   he

              must   strictly   and   scrupulously   abide   by   the   Code   of

              Conduct   behaving  the   noble   profession   and   must   not

              indulge   in   any   activity   which   may   tend   to   lower   the

              image   of   the   profession   in   society.   That   is   why   the

              functions   of   the   Bar   Council   include   the   laying   down

              of   standards   of   professional   conduct   and   etiquette

              which   advocates   must   follow   to   maintain   the   dignity

              and purity of the profession."




29.    An   objective   analysis   of   the   above   principles   makes   it   clear


that   except   where   the   challenge   is   on   the   grounds   of   legislative


incompetence or the restriction imposed was ex facie unreasonable,


arbitrary   and   violative   of   Part   III   of   the   Constitution   of   India,   the


restriction would be held to be valid and enforceable.


30.    The   next   contention   raised   on   behalf   of   the   appellants   before


                                                 30



us is that the entire restriction is based on an illogical presumption


of likelihood  of  bias.       The presumption  of legal bias  being  without


any   basis   and   ill-founded,   the   amendment   itself   is   liable   to   be


declared  ultra   vires.       This   contention,   again,   does   not   carry   any


weight.     This argument is misconceived on facts and law, both.     It


is   not  only   the   mischief   of   likelihood   of   bias   which   is   sought   to   be


prevented by the amendment but the amendment, has a definite  --


purpose and object to achieve which is in the larger public interest.


Such   legislative   attempt,   not   only   to   adhere   to   but   to   enhance   the


values   and   dignity   of   the   legal   profession,   would   add   to   the


confidence   of   the   common   litigant   in   the   administration   of   justice


and the performance of duties by the Tribunal.


31.    For example, a person who is otherwise qualified to be admitted


as   an   advocate,   but   is   either   in   full   or   part   time   service   or


employment,   or   is   engaged   in   any   trade,   business   or   profession,


shall not be admitted as an advocate, was a restriction imposed by


the Bar Council of State of Maharasthra and Goa.   Upon challenge,


this Court had taken the view that under Article 19(1)(g), all citizens


have a right to practice any profession or carry  on any occupation,


trade   or   business.   The   term   `any   profession'   may   include   even


plurality of professions.   However, this is not an absolute right and


is subject to reasonable restrictions under Article 19(6).  It cannot be


                                              31



gainsaid  that litigants  are  also members  of general public and  if  in


their interest, any rule imposes a restriction on the entry to the legal


profession and if such restriction is founded to be reasonable, Article


19(1)(g)   would   not   get   stultified   {Dr.   Haniraj   L.   Chulani  v.  Bar


Council, State of Maharashtra & Goa [(1996) 3 SCC 342]}.


-


32.    In   this   very   case,   the   Court   also   observed   that   these   well-


established   connotations   and   contours   of   the   requirements   of   the


legal   profession   itself   supply   the   necessary   guidelines   to   the


concerned Bar Councils or Legislatures to frame Rules for regulating


the entry of the persons to the profession.


33.    This judgment is relatable to the legal profession and we have


already   noticed   the   judgments   of   this   Court   relating   to   other


professions.   Imposition of restrictions   is a concept inbuilt  into the


enjoyment   of   fundamental   rights,   as   no   right   can   exist   without   a


corresponding   reasonable   restriction   placed   on   it.     When   the


restrictions   are   placed   upon   the   carrying   on   of   a   profession   or   to


ensure that the intent, object or purpose achieved thereby would be


enhancing   the   purity   of   public   life,   such   object   would   certainly   be


throttled if there arose a situation of conflict between private interest


and   public   duty.   The   principle   of   private   interest   giving   way   to


public   interest   is   a   settled   cannon,   not   only   of   administrative


                                              32



jurisprudence, but of statutory interpretation as well. Having regard


to the prevalent values and conditions of the profession, most of the


legal practitioners would not stoop to unhealthy practices or tactics


but the Legislature, in its wisdom, has considered it desirable to  --


eliminate   any   possibility   of   conflict   between   the   interest   and   duty


and   aimed   at   achieving   this   object   or   purpose   by   prescribing   the


requisite   restrictions.     With   the   development   of   law,   the   courts   are


expected   to   consider,   in   contradistinction   to   private   and   public


interest,   the   institutional   interest  and  expectations  of  the  public   at


large   from   an   institution.     These   are   the   balancing   tests   which   are


applied   by   the   courts   even   in   the   process   of   interpretation   or


examining of the constitutional validity of a provision.




34.    Under the English Law, the genesis of bias has been described


as   the   perception   that   the   court   is   free   from   bias,   that   it   is


objectively   impartial   stems   from   the   overworked   aphorism   of   Lord


Hewart   C.J.   in  R.  v.  Sussex   Justices   Ex.   P.   McCarthy  [(1924)   1   KB


256   KBD   at   259]   wherein   he   said,   "It   is   not   merely   of   some


importance but is of fundamental importance that justice should not


only be done but should manifestly and undoubtedly be seen to be


done."  However, later the courts there felt that too heavy a reliance


upon the Hewart aphorism in instances of alleged bias produces the


danger   that   the   appearance   of   bias   or   injustice   becomes   more


                                              33



important than the absence of actual bias, the doing of justice itself.


It   is,   therefore,   of   importance   that  perceived  bias   is   not  too  readily


inferred,  such  as  to  negate  the  doing of  justice.     In  Porter  v.  Magill


[(2002) 2 AC 357], the House of Lords finally decided the proper test


for finding perceived or apparent bias, after judicial debate for over


two   decades,   which   displayed   the   welcome   interplay   of   judicial


pronouncements   within   the   jurisdictions   of   the   English   common


law,   Scotland   and   Strasbourg   jurisprudence.     The   test   is   now


whether   the   fair-minded   observer,   having   considered   the   facts,


would   consider   that   there   was   a   reasonable   possibility   that   the


tribunal  was  biased.   [See  Sir  Louis  Blom,  Q.C.,  `Bias,  Malfunction


in Judicial Decision-making', (2009) Public Law 199].



35.    Bias   must   be   shown   to   be   present.     Probability   of   bias,


possibility   of   bias   and   reasonable   suspicion   that   bias   might   have


affected   the   decision   are   terms   of   different   connotations.     They


broadly   fall   under   two   categories,   i.e.,   suspicion   of   bias   and


likelihood of bias.   Likelihood of bias would be the possibility of bias


and bias which can be shown to be present, while suspicion of bias


would be the probability or reasonable suspicion of bias.  The former


lead   to   vitiation   of   action,   while   the   latter   could   hardly   be   the


foundation   for   further   examination   of   action,   with   reference   to  -the


facts and circumstances of a given case.  The correct test would be to


                                                34



examine whether there appears to be a real danger of bias or whether


there is only a probability or even a preponderance of probability of


such bias, in the circumstances of a given case.  If it falls in the prior


category, the decision would attract judicial castecism but if it falls in


the latter, it would hardly effect the decision, much less adversely.


36.    Harry Woolf, Jeffey Jowell and Andrew Le Sueur, in their recent


book  De Smith's Judicial  Review  (Sixth Edition) have referred to the


concept of `automatic disqualification', that is, where the element of


bias is present and would lead to disqualification on its own.   This


rule   was   invoked   to   invalidate   the   composition   of   a   disciplinary


tribunal   of   the   Council   of   the   Inns   of   Court,     since   one   of   the


members   of   the   tribunal   had   been   a   member   of   the   Professional


Conduct   and   Complaints   Committee   of   the   Bar   Council   (PCCC)


which   was   the   body   responsible   for   the   decision   to   prosecute   a


member of the Bar before that Tribunal.  It was held by the Visitors


to the Inns of Court that each member of the PCCC had a common


interest in the prosecution and, therefore, was acting as a judge in


his or her own cause.  The rule was not free of -exceptions.  It could


even   be   applied   with   certain   flexibility.     On   the   subject   of   judicial


bias,   a   greater   degree   of   flexibility   has   to   be   applied   in   cases   of


automatic disqualification.     For example, where the public became


aware that a senior member of a firm was acting against one of the


                                               35



parties   to   the   litigation,   but,   on   another   matter,   it   was   held   that


automatic   disqualification   would   not   be   necessary,   as   the


connection between the firm's success in the case and its profits was


"tenuous" and the party had effectively waived the right to challenge


an adverse decision in the former litigation.


37.    The element of bias by itself may not always necessarily vitiate


an   action.     The   Court   would   have   to   examine   the   facts   of   a   given


case.     Reverting   to   the   facts   of   the   present   case,   despite   their


absence from the object and reasons for the amendment of Section


129(6) of the Customs Act it cannot be held that the element of bias


was presumptuous or without any basis or object.  It may be one of


the relevant factors which probably would have weighed on the mind


of the Legislature.  When you have been a member of a Tribunal over


a   long   period,   and   other   members   have   been   your   co-members


whether judicial or technical, it is difficult to hold that there would


be no possibility of bias or no real danger of bias.   Even  -if we rule


out this possibility, still, it will always be better advised and in the


institutional interest that restrictions are enforced.   Then alone will


the mind of the litigant be free from a lurking doubt of likelihood of


bias   and   this   would   enhance   the   image   of   the   Tribunal.   The


restriction,   as   already   discussed,   leaves   the   entire   field   of   legal


profession   wide   open   for   the   appellants   and   all   persons   situated


                                              36



alike except to practice before CESTAT.


38.    Besides the possibility of bias, there is a legitimate expectation


on the part of a litigant before the Tribunal that there shall not be


any   possibility   of   justice   being   denied   or   being   not   done   fairly.


These   are   the   concepts   which   are   very   difficult   to   be   defined   and


demarcated with  precision.    Some  element of uncertainty  would  be


prevalent.      There can  be  removal  of  doubts  to  the  facts  of  a  given


case that would help in determining matters with somewhat greater


uncertainty.   The   contention   of   the   petitioners   that   there   has   to   be


empirical data to suggest their practice before the Tribunal resulted


in   instances   of   misdemeanor   which   would   have   propelled   the


respondents to insert such a provision in the enactment, has rightly


been   rejected   by   the   High   Court.     It   may   not   even   be   proper   to


introduce such amendments with reference to any data.  Suffice it --


to   note   that   these   amendments   are   primarily   based   upon   public


perception and normal behaviour of an ordinary human being.  It is


difficult   to   define   cases   where   element   of   bias   would   affect   the


decision   and   where   it   would   not,   by   a   precise   line   of   distinction.


Even in a group, a person possessing a special knowledge may be in


a   position   to   influence   the   group   and   his   bias   may   operate   in   a


subtle manner.


39.    The   general   principles   of   bias   are   equally   applicable   to   our


                                               37



administrative   and   civil   jurisprudence.     Members   of   the   Tribunals,


called   upon   to   try   issues   in   judicial   or   quasi-judicial   proceedings


should   act   judicially.     Reasonable   apprehension   is   equitable   to


possible apprehension and, therefore, the test is whether the litigant


reasonably  apprehends that  bias is attributable  to a member of the


Tribunal.     Repelling   the   apprehension   of   bias   in   administrative


action,   the   Courts   have   taken   the   view   that   in   the   case   where   a


remote relationship existed, separated by six degrees, which was the


foundation   of   challenge   of   selection   to   a   post   of   clerk   in   the   Gram


Panchayat   High   School,   the   challenge   was   not   sustainable.   It   is


difficult   to   rule   out   the   possibility   of   a   reasonable   apprehension   in


the minds of the litigants  who approach  the  -Tribunal  for  justice,  if


the   reasonable   restriction   introduced   in   Section   129(6)   of   the


Customs   Act   is   not   enforced.       Reference   can   be   made   to   the


judgments of this Court in the case of  Manak Lal v. Dr. Prem Chand


[AIR   1957   SC   425]   and  Rasmiranjan   Das   v.   Sarojkanta   Behera   &


Ors.[(2000) 10 SCC 502].


40.    This  Court  in   the   case  of  Kumaon  Mandal  Vikas  Nigam  Ltd.   v.


Girja Shankar Pant and Ors. [(2001) 1 SCC 182], having regard to the


changing   structure   of   the   society,   stated   that   modernization   of   the


society with the passage of time had its due impact on the concept of


bias as well.   The courts have applied the tests of real likelihood and


                                                  38



reasonable suspicion. These doctrines were discussed in the case of


S. Parthasarathi v. State of Andhra Pradesh [(1974) 3 SCC 459].   The


Court   found   that   `real   likelihood'   and   `reasonable   suspicion'   were


terms really inconsistent with each other and the Court must make a


determination, on the basis of the whole evidence before it, whether a


reasonable man would, in  the circumstance,  infer  that there is real


likelihood of bias or not.   The Court has to examine the matter from


the   view   point   of   the   people.       The   term   `bias'   is   used   to   denote   a


departure from the standing of even ended justice.   After discussing


this law, another Bench of  -this Court in the case of  State  of Punjab


v. V.K. Khanna [(2001) 2 SCC 330], finally held as under:-


                     "8. The test, therefore, is as to whether there is

              a mere apprehension of bias or there is a real danger

              of   bias   and   it   is   on   this   score   that   the   surrounding

              circumstances   must   and   ought   to   be   collated   and

              necessary conclusion drawn therefrom. In the event,

              however,   the   conclusion   is   otherwise   that   there   is

              existing   a   real   danger   of   bias   administrative   action

              cannot be sustained. If on the other hand allegations

              pertain   to   rather   fanciful   apprehension   in

              administrative   action,   question   of   declaring   them   to

              be   unsustainable   on   the   basis   therefor,   would   not

              arise."




41.    The   word   `bias'   in   popular   English   parlance   stands   included


within the attributes and broader purview of the word `malice', which


in   general   connotation,   means   and   implies   `spite'   or   `ill   will'.       It   is


also   now   a   well   settled   proposition   that   existence   of   the   element   of


                                                 39



`bias'   is   to   be   inferred  as  per   the   standard  and  comprehension  of   a


reasonable   man.     The   bias   may   also   be   malicious   act   having   some


element of intention without just cause or excuse.   In case of malice


or   ill   will,   it   may   be   an   actual   act   conveying   negativity   but   the


element   of   bias   could   be   apparent   or   reasonably   seen   without  -any


negative result and could form part of a general public perception.


42.    Now, we shall proceed to examine the merits of the contention


raised   that   the   provisions   of   Section   129(6)   of   the   Customs   Act


cannot be given effect to retrospectively.  The argument advanced is


that the appellants were enrolled as advocates when the provisions


of Section 129(6) were not on the statute book.   After ceasing to be


members   of   the   Tribunal   and   starting   their   practice   as   advocates,


such   a   bar   was   not   operative.       Now,   after   the   lapse   of   so   many


years, their right to practice before such Tribunals cannot be taken


away   and   to   that   extent,   in   any   case,   the   provisions   of   Section


129(6) cannot be made retrospective.


43.    As   already   noticed   by   us   above,   the   right   to   practice   law   is   a


statutory   right.       The   statutory   right   itself   is   restricted   one.     It   is


controlled by the provisions of the Advocates Act, 1961 as well as the


rules   framed   by   the   Bar   Council   in   that   Act.     A   statutory   right


cannot be placed at a higher pedestal to a fundamental right.   Even


a fundamental right is subject to restriction and control.  At the cost


                                                  40



of repetition, we may notice that it is not possible to imagine a -right


without   restriction   and   controls   in   the   present   society.       When   the


appellants were  enrolled  as advocates as well   as  when  they  started


practicing   as   advocates,   their   right   was   subject   to   the   limitations


under any applicable Act or under the constitutional limitations, as


the   case   may   be.       One   must   clearly   understand   a   distinction


between a law being enforced retrospectively and a law that operates


retroactively.    The restriction in the present case is a clear example


where   the   right   to   practice   before   a   limited   forum   is   being   taken


away  in presenti  while leaving all other forums open for practice by


the   appellants.       Though   such   a   restriction   may   have   the   effect   of


relating back to a date prior to the  presenti.   In that sense, the law


stricto  sensu  is not retrospective, but would be retroactive. It is not


for   the   Court   to   interfere   with   the   implementation   of   a   restriction,


which   is  otherwise  valid   in  law,  only  on  the   ground  that  it  has  the


effect   of   restricting   the   rights   of   the   people   who   attain   that   status


prior to the introduction of the restriction.   It is certainly not a case


of   settled   or   vested   rights,   which   are   incapable   of   being   interfered


with.       It   is   a   settled   canon   of   law   that   the   rights   are   subject   to


restrictions and the restrictions, if reasonable, are subject to judicial


review of a very limited scope.


-


                                                41



44.    We   do   not   find   any   reason   to   accept   the   submission   that


enforcement of  the restriction retroactively  would  be  impermissible,


particularly in the facts and circumstances of the present case.


45.    We   may   refer   to   the   case   of  R.   v.   Inhabitants   of   St.   Mary,


Whitechapel [(1881) 12 QB 149] whereby under Section 2 of the Poor


Removal   Act,   1846,   `No   woman   residing   in   any   parish   with   her


husband   at   the   time   of   his   death   shall   be   removed...   from   such


parish,   for   twelve   calendar   months   after   his   death,   if   she   so   long


continue a widow.'  In this case, a widow was sought to be removed


within such period of 12 months, on the grounds that her husband


had died before the coming into force of that Act.   The question was


whether  that provision applied  retrospectively.     Lord  Denman, C.J,


held   that   `the   statute   is,   in   its   direct   operation,   prospective,   as   it


relates   to   future   removals   only    and   that  it   is   not  properly   called  a


retrospective statute because a part of the requisites for its action is


drawn from its time antecedent to its passing'.   Thus, the provision


was held not to be retrospective.


46.    Examined the case of the appellants from this angle, it would


mean   that   the   law   is   not   at   all   retrospective   even   though   the  --


retirement   or  date   of   ceasing   to   be   a   member   of   the   Tribunal   may


have been on a date anterior to the date of passing of the law.


47.    We may also notice that the restriction is not punitive, in that


                                               42



sense,   but   is   merely   a   criterion   for   eligibility   for   continuing   to


practice law before the Tribunal.


48.    Earlier,   the   nature   of   law,   as   substantive   or   procedural,   was


taken   as   one   of   the   determinative   factors   for   judging   the


retrospective operation of a statute.  However, with the development


of   law,   this   distinction   has   become   finer   and   of   less   significance.


Justice   G.P.   Singh,  in   his  Principles  of  Statutory  Interpretation  (12th


Edition,   2010)   has   stated   that   the   classification   of   a   statute,   as


either   a   substantive   or   procedural   law,   does   not   necessarily


determine   whether   it   may   have   retrospective   operation.     For


example, a statute of limitation is generally regarded as procedural,


but its application to a past cause of action has the effect of reviving


or extinguishing a right to sue.  Such an operation cannot be said to


be procedural.   It has also been noted that the rule of retrospective


construction   is   not   applicable   merely   because   a   part   of   the


requisites   for   its   action   is   drawn   from   a   time   antecedent   to   the  --


passing   of   the   relevant   law.     For   these   reasons,   the   rule   against


retrospectivity   has   also   been   stated,   in   recent   years,   to   avoid   the


classification   of   statutes   into   substantive   and   procedural   and   the


usage of words like `existing' or `vested'.   Referring to a judgment of


the Australian High Court in the case of  Maxwell  v.  Murphy  [(1957)


96 CLR 261], it is recorded as follows :


                                               43



             "One   such   formulation   by   Dixon   C.J.   is   as   follows   :

             `The general rule of the common law is that a statute

             changing   the   law   ought   not,   unless   the   intention

             appears   with   reasonable   certainty,   to   be   understood

             as   applying   to   facts   or   events   that   have   already

             occurred   in   such   a   way   as   to   confer   or   impose   or

             otherwise affect rights or liabilities which the law had

             defined   by   reference   to   the   past   events.     But   given

             rights   and   liabilities   fixed   by   reference   to   the   past

             facts,   matters   or   events,   the   law   appointing   or

             regulating   the   manner   in   which   they   are   to   be

             enforced   or   their   enjoyment   is   to   be   secured   by

             judicial remedy is not within the application of such

             a presumption'."




49.    In   such   matters,   in   judiciously   examining   the   question   of


retrospectivity or otherwise, the relevant considerations include the


circumstances   in   which   legislation   was   created   and   the   test   of


fairness.   The principles of statutory interpretation have expanded.


With the development of law, it is desirable that the Courts should


-apply   the   latest   tools   of   interpretation   to   arrive   at   a   more


meaningful   and   definite   conclusion.     The   doctrine   of   fairness   has


also   been   applied   by   this   Court   in   the   case   of  Vijay  v.  State   of


Maharashtra & Ors.[(2006) 6 SCC 289]. A restriction was introduced


providing   that   a   person   shall   not   be   a   member   of   a  Panchayat  or


continue   as   such,   if   he   has   been   elected   as   Councilor   of   Zila


Parishad or as a member of the Panchayat Samiti.   This restriction


was held to be retrospective and applicable to the existing members


of the Panchayat also.  Applying the rule of literal construction, this


                                               44



Court   held   that   when   a   literal   reading   of   the   provision   giving


retrospective   effect   does   not   produce   absurdity   or   anomaly,   the


same   would   not   be   construed   only   prospective.     This   was   further


strengthened by the application of the rule of fairness.




50.    In the present case, the restriction would be applied uniformly


to   all   the   practicing   advocates   as   well   as   to   the   advocates   who


would join the profession in future and would achieve the object of


the   Customs   Act   without   leading   to   any   absurd   results.     On   the


contrary, its uniform application would achieve fair results without


really visiting any serious prejudice upon the class of the advocates


-who were earlier the members of the Tribunal as it remains open


to   them   to   practice   in   other   tribunals,   forums   and   courts.     If   an


exception   was   carved   out   in   their   favour,   it   would   lead   to   an


anomaly   as   well   as   an   absurd   situation   frustrating   the   very


purpose and object of Section 129(6) of the Act.




51.    Still   in   another   case   titled  Dilip  v.  Mohd.   Azizul   Haq   &   Anr.


[(2000)   3   SCC   607],   this   Court,   while   dealing   with   the   question


whether   the   amendment   in   the   Rent   Control   Order,   which   had


earlier   only   covered   `houses',   and   was   amended   to   encompass


`premises'   could   be   allowed   to   agreements   entered   into,   prior   in


time,   clearly   held   that   the   provision   came   into   force   when   the


                                                45



appeal was still pending and, though the provision is prospective in


force, it has retroactive effect.   This provision merely provides for a


limitation   to   be   imposed   for   the   future,   which   in   no   way   affects


anything done by a party in the past and the statutes providing for


new remedies or new manners for enforcement of the existing rights


will   apply   to   future   as   well   as   past   causes   of   action.     This   Court


also   held   that   the   presumption   against   retrospective   legislation


does not necessarily apply to an enactment merely because a part


of the -requisites for its action are drawn from a time antecedent to


its passing.


52.   In light of these principles, the provisions of Section 129(6) of


the Customs Act and its operation cannot be faulted with.  Another


half-hearted   attempt   was   made   to   raise   a   contention   that   the


appellants can continue to appear before the Tribunal as they are


permitted   to   do   so   in   terms   of   Section   146A   of   the   Customs   Act,


despite the provisions of Section 129(6) of the Customs Act.  We are


unable to find any merit in this contention as well.  The provisions


of   Section   129(6)   of   the   Customs   Act   are   specific   and   both   these


provisions   have   to   be   construed   harmoniously.   We   find   nothing


contradictory   in   these   three   provisions.     Section   146(2)(c)   of   the


Customs Act refers to the appearance by a legal practitioner who is


entitled to practice as such in accordance with law.  Section 129(6)


                                             46



places   a   restriction,   which   is   reasonable   and   valid   restriction,   as


held  by us  above.  Thus, the provisions of  Section  146A of the Act


would   have   to   be   read   in   conjunction   with   and   harmoniously   to


Section   129(6)   of   the   Customs   Act   and   the   person   who   earns   a


disqualification under this provision cannot derive any extra benefit


-contrary to Section 129(6) of the Customs Act from the reading of


Section   146A   of  the   Customs   Act.   Thus,  we   have   no  hesitation   in


rejecting this contention as well.




53.    For   the   reasons   afore-recorded,   we   dismiss   all   the   aforesaid


appeals, however, without any order as to costs.





                                                             ..................................,J.

                                                             [A.K. Patnaik]





                                                             ..................................,J.

                                                             [Swatanter Kumar]

New Delhi;

March 15, 2012