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Friday, May 4, 2012

Election case The Apex court held that there is no sufficient material particulars and facts of corrupt practice and further the question of amendment petition does not arise to fill the gaps as it is barred by limitation the election petition on hand hopelessly lacks in stated the material facts constituting the various corrupt practices mentioned in the election petition to enable the declarations sought by the election petitioner. The conclusion recorded by the High Court (extracted at para 27 supra) that; 54Page 55 “It is true that the allegations suffer from lack of certain material particulars particularly as to the consent of the returned candidate or his election agent. ……….” In my opinion is wholly erroneous in law. Consent by the candidate or his election agent is an essential material fact, which is required to be pleaded and proved when the allegation is that somebody other than the candidate or his election agent committed a corrupt practice. The election petition on hand, in my opinion, is incapable of being read as disclosing any cause of action on the basis of any known cannon of interpretation of documents – whether a rule of reasonable construction or any other construction. In view of the conclusion reached above, I do not propose to examine the other submissions regarding the legal fact of the non-filing of an affidavit in Form No.25 and absence of proper verification of the pleadings and annexures. 31. I may also mention here that though the learned counsel for the election petitioner did not bring to our notice (obviously he was not briefed in this regard), Dr. Rajeev Dhawan, learned counsel for the returned candidate placed before us a photocopy of an application seeking the amendment of the election petition pursuant to the directions of the High Court. I do not propose to examine the content of the said application except to take note of the fact that the same appears to have been presented on 02-05-2011. Even otherwise, any such application could, 55Page 56 obviously, have been filed only after 05-10-2009, which is the date of Judgment under appeal. In view of the fact that the results of the election in question were declared on 08-12-2008, the application was filed beyond the period of limitation prescribed under the R.P. Act, to challenge the election. In view of my conclusion that the election petition, as originally presented, did not contain the necessary material facts to constitute the cause of action to challenge the election of the returned candidate, the abovementioned application filed by the election petitioner, even if it contain the necessary material facts, cannot be allowed as it would amount to permitting the amendment of the election petition beyond the period of limitation. 32. I, therefore, not only grant leave in the S.L.P., but also allow the appeal and dismiss the election petition.


|REPORTABLE          |

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                      CIVIL APPEAL NO.4189     OF 2012
                  (Arising out of SLP(C) NO.30417 of 2009)



1 Ishwardas Rohani                              … Appellant


           Vs.



           2 Alok Mishra & Ors.                       … Respondents





                               J U D G M E N T




ALTAMAS KABIR, J.


1.    Leave granted.

2.    The Respondent No.1 herein,  Shri  Alok  Mishra,  contested  the  2008
elections to the Madhya Pradesh State Assembly as a candidate of the  Indian
National   Congress   Party   from   Cantt.   Legislative   Assembly   No.99
Constituency, Jabalpur.  He was defeated in the elections by  the  Appellant
herein as a candidate of the Bharatiya Janata Party.   The  said  Respondent
filed Election Petition No.22 of  2009,  challenging  the  election  of  the
Appellant on the  ground  of  corrupt  practice,  as  contemplated  in  Sub-
Sections  (1)(A)  and  (B),  (2),  (6)  and  (7)  of  Section  123  of   the
Representation of the People Act,  1951,  hereinafter  referred  to  as  the
“1951 Act”.

3.     The  grounds  relating  to  corrupt  practice,  as  alleged  by   the
Respondent No.1 herein, inter alia, were to the following effect :

(i) as an Ex-M.L.A. and Ex-Speaker of the Vidhan Sabha  and  being  a  close
      associate of the Chief Minister of the State, the Appellant  was  able
      to exert undue influence on  the  Collector,  the  District  Returning
      Officer and other authorities for procuring their assistance  for  the
      furtherance of his prospects in the elections;

(ii) that on 2nd November, 2008, when the Respondent No.1 was  returning  to
      Jabalpur from New Delhi, as the authorized  candidate  of  the  Indian
      National Congress, his supporters, who came to meet him at the railway
      station, were arrested, whereas the very next day, no action was taken
      against the supporters of the Appellant herein  who  had  deployed  as
      many as 300 vehicles in the election rally organised on  the  occasion
      of the filing of his nomination, although, permission had  been  given
      for use of only 27 vehicles.   The  Appellant  was  allowed  to  erect
      “welcome gates” at various places and used unauthorized  vehicles  and
      also put up flags, hoardings and posters on electric poles and even on
      temples, despite the objections raised by the Respondent No.1 herein;

(iii) during his election campaign, the Appellant  distributed  school  bags
      reflecting the name of the Appellant, as also his party  flag  amongst
      the children of the voters and huge amounts of money  were  also  paid
      through cheques under  the  garb  of  financial  assistance  by  Garib
      Sahayata Samiti. Apart from  the  above,  clothes,  sweets,  blankets,
      cheques for amounts of Rs.500/- to the female voters and identity  and
      ration cards, were distributed amongst the voters by the supporters of
      the Appellant, but no action was taken either against the Appellant or
      his agent for resorting to such corrupt practice.  Accordingly, in the
      election petition the  Respondent  No.1,  inter  alia,  prayed  for  a
      declaration that the  election  of  the  Appellant  herein,  Ishwardas
      Rohani, be declared as  void  and  he  be  declared  as  the  returned
      candidate.

4.    In the pending Election Petition No.22 of 2009, an Application,  being
I.A.No.58 of 2009, was filed on behalf of the Appellant herein, under  Order
VII Rule 11 read with Order VI Rule 16  of  the  Code  of  Civil  Procedure,
hereinafter referred to as “C.P.C.”,  praying  that  the  Election  Petition
filed by the Respondent No.1 be rejected, inter alia,  on  the  ground  that
except for making vague allegations  of  corrupt  practice,  the  Respondent
No.1 (Election  Petitioner)  had  failed  to  disclose  material  facts  and
particulars in respect thereof.  Another ground of challenge  was  that  the
Respondent No.1  had  failed  to  comply  with  the  provisions  of  Section
81(3)(a) and (b), which are mandatory and in the absence  whereof  no  cause
of action could be said to have been available to  the  Election  Petitioner
to seek any relief thereunder.
5.    I.A.No.58 of 2009, which was filed by the Appellant  under  Order  VII
Rule 11 read with Order VI Rule 16 C.P.C.  for  rejection  of  the  Election
Petition or for a direction to set out pleadings specified  thereunder,  was
taken up for hearing by the Madhya Pradesh High Court on  16th  July,  2009.
After considering the facts involved in the Election Petition,  as  also  in
the Application filed under Order VII Rule 11 read with Order VI Rule 16  of
the C.P.C., the High Court was of the view that  although,  the  allegations
of corrupt practice had not been properly  drafted,  the  Election  Petition
could not be rejected on the said ground.  As far as the  Application  under
Order VI Rule 16 C.P.C. is concerned, the  High  Court  observed  that  non-
revision of the voters list is not a ground set out in Section  100  of  the
1951 Act for declaring  an  election  to  be  void.   The  High  Court  also
observed that violation of the Model Code of Conduct cannot also be  treated
as  a  ground  for  declaring  an  election  to  be  void.   On   the   said
understanding of the law, the High Court allowed the  Appellant’s  I.A.No.58
in part and directed the Appellant to :

(i) delete the  pleadings  relating  to  voters’  list  and  Model  Code  of
      Conduct;

(ii) move an appropriate application  for  amending  the  pleadings  in  the
      light of the objections raised by the Respondent No.1 and the  defects
      as pointed out in paragraph 2, subject to the limits circumscribed  by
      law.  The High Court also added  that  after  amending  the  pleadings
      suitably, the Appellant would also verify the same  by  furnishing  an
      affidavit under Order VI Rule 15(4)  C.P.C.  and  further  verify  the
      pleadings relating to corrupt practice by filing a proper affidavit in
      the prescribed Form No.25, as prescribed under Rule 94-A and  appended
      to the Conduct of the Election Rules, 1961.

6.    Aggrieved by the directions given by the High  Court  in  I.A.  No.58,
directing the Respondent No.1 herein to delete  the  pleadings  relating  to
the voters’ list and the Model Code of Conduct and to  move  an  appropriate
application for amending the  pleadings  in  the  light  of  the  objections
raised by the Appellant herein, the said Appellant  has  filed  the  Special
Leave to Appeal challenging the said directions dated 5th October, 2009,  in
Election Petition No.22 of 2009.

7. Appearing  for  the  Appellant,  Ishwardas  Rohani,  Dr.  Rajeev  Dhawan,
learned Senior Advocate, submitted that  all  the  allegations  relating  to
corrupt practice were in respect  of  periods  prior  to  the  date  of  the
notification  of  the  elections,  namely,  29th  October,  2008,  when  the
Election Petitioner, Shri Alok Mishra,  was not yet  a  candidate,  nor  was
the Appellant herein.  Dr.  Dhawan  pointed  out  that  the  elections  were
notified for the Jabalpur Cantt. Legislative Assembly Constituency No.99  on
29th October, 2008.  On 3rd November, 2008,  the  Election  Petitioner,  Mr.
Alok Mishra, filed his nomination papers and the polling was  held  on  27th
November, 2008.  The results of the election were  thereafter  announced  on
8th December, 2008, in  which  the  Appellant  was  declared  to  have  been
elected.  Dr. Dhawan termed the period between 29th October, 2008, when  the
elections were notified, till 8th December,  2008,  when  the  results  were
declared, as the “active” period, when the conduct  of  the  elected  member
could be faulted.  Dr. Dhawan submitted that the Election Petition had  been
filed by the Respondent No.1  herein  within  the  period  of  45  days,  as
specified under Section 81 of the 1951 Act.  However, the  directions  given
by the High Court to amend the Election Petition  were  not  permissible  in
law as  such  amendment  would  be  beyond  the  period  of  limitation,  as
prescribed.   Following such directions of  the  High  Court,  the  Election
Petitioner filed an Application under Order  VI  Rule  17  CPC  praying  for
various amendments for providing material facts.

8.    Dr. Dhawan urged that  given  the  consequences  of  disqualification,
allegations of corrupt practice would have to be strictly construed, as  was
held in the case of Surinder Singh Vs. Hardial  Singh  [(1985)  1  SCC  91],
wherein it was, inter alia,  observed  that  for  more  than  20  years  the
position had been uniformly accepted that charges of corrupt  practice  have
to be equated with criminal charges and  the  proof  thereof  would  not  be
preponderance of  probabilities  as  in  civil  matters,  but  proof  beyond
reasonable doubt as in criminal trials.  Reference  was  also  made  to  the
decision in Dhartipakar Madan Lal Agarwal Vs. Rajiv Gandhi[(1987) Supp.  SCC
93], wherein it was observed as follows :-


      “Allegations of  corrupt  practice  are  in  the  nature  of  criminal
      charges, it is necessary that there should  be  no  vagueness  in  the
      allegations so that the returned candidate may know the case he has to
      meet. If the allegations are vague and general and the particulars  of
      corrupt practice are not stated in the pleadings,  the  trial  of  the
      election petition cannot proceed for want  of  cause  of  action.  The
      emphasis of law is to avoid  a  fishing  and  roving  inquiry.  It  is
      therefore necessary for the Court to scrutinise the pleadings relating
      to corrupt practice in a strict manner.”



      In this regard, Dr. Dhawan referred to the provisions  of  Section  8A
of the 1951 Act, which sets out the harsh consequences of having been  found
guilty of corrupt practice by an order under Section 99 of the 1951 Act.

9.    Submissions were  also  advanced  by  Dr.  Dhawan  in  regard  to  the
distinction between “material facts” and “material particulars”, which  does
not appear to me to be very material for a decision in this case.   What  is
necessary is that the material facts must disclose the plaintiff’s cause  of
action or may be the source for the  defence  of  the  defendant.   What  is
relevant is that the facts as set out in the Election Petition must  not  be
vague and must be such as to enable the Respondent to deal with and  give  a
proper response.  Dr. Dhawan contended that as has been held by  this  Court
in Anil Vasudev Salgaonkar Vs.  Naresh  Kushali  Shigaonkar  [(2009)  9  SCC
310], the  failure  to  state  even  a  single  material  fact  will  entail
dismissal of the Election Petition.  Furthermore, it is also essential  that
any action  which  is  attributed  to  an  elected  candidate  and  goes  to
constitute an allegation of corrupt practice, must be  shown  to  have  been
done with the consent of the candidate, which, as was observed  in  Surinder
Singh’s case (supra), is a lifeline  to  link  up  the  candidate  with  the
action of the other person which may amount to corrupt practice.

10.   Turning to another branch of his  submissions,  Dr.  Dhawan  submitted
that  where  corrupt  practices  are  alleged,   details   supporting   such
allegations have to be pleaded.  Referring to the decision of this Court  in
R.P. Moidutty Vs. P.T. Kunju  Mohammad   [(2000)  1  SCC  481],  Dr.  Dhawan
referred to paragraph 14 of the judgment, wherein it has  been  observed  as
follows :-


           “The legislature has taken extra care to make special  provision
      for pleadings in an election petition alleging corrupt practice. Under
      Section 83 of the Act ordinarily it  would  suffice  if  the  election
      petition contains a concise statement of the material facts relied  on
      by the petitioner, but in the case of corrupt  practice  the  election
      petition must set forth full particulars thereof including as  full  a
      statement as possible of (i) the names of the parties alleged to  have
      committed such corrupt practice, (ii) the date, and (iii) place of the
      commission of each such practice. An election petition is required  to
      be signed and verified in the same manner as is laid down in the  Code
      of Civil Procedure, 1908 for the verification of  pleadings.  However,
      if the petition alleges any corrupt practice  then  the  petition  has
      additionally to be accompanied by an affidavit in Form  25  prescribed
      by Rule 94-A of the Conduct of Elections Rules, 1961 in support of the
      allegations of such corrupt  practice  and  the  particulars  thereof.
      Thus, an election petition alleging commission of corrupt practice has
      to satisfy some additional requirements, mandatory in nature,  in  the
      matter of raising of the pleadings and verifying the averments at  the
      stage of filing of the election petition and then  in  the  matter  of
      discharging the onus of proof at the stage of the trial.”



11.   In fact, in this regard, Dr. Dhawan also referred to Section  83(1)(b)
of the 1951 Act, which  indicates  that  full  particulars  of  any  corrupt
practice that the  Petitioner  alleges  and  other  details  regarding  such
corrupt practice has to be set  forth  in  the  Election  Petition  and  the
verification must disclose the exact source of  the  information.  Reference
was also made to the decision in V. Narayanaswamy Vs. C.P.  Thirunavukkarasu
[(2000) 2 SCC 294], where similar sentiments have been expressed.

12.   Dr. Dhawan urged  that  having  regard  to  the  above,  the  Election
Petition filed by the Respondent No.1 should  have  been  dismissed  by  the
High Court, without giving an opportunity  to  the  Election  Petitioner  to
rectify  some  of  the  defects,  outside  the  period  of  limitation,   as
prescribed under Section 81 of the 1951 Act.

13.   Dr. Dhawan, learned senior counsel, contended  that  all  the  alleged
instances referred to in the Election  Petition  regarding  alleged  corrupt
practice on the part of the Appellant were outside the “active period”  when
the Respondent No.1 was not even  a  candidate  and  consequently  the  same
could not be taken into consideration for the determination of the  Election
Petition in view of Section 81 of the 1951 Act, which stipulates  that  such
a Petition may be presented  by  any  candidate  at  such  election  or  any
elector within forty-five days from,  but  not  earlier  than  the  date  of
election of the returned candidate.

14.   Replying to Dr.  Dhawan’s  submissions,  Mr.  Rakesh  Khanna,  learned
Senior Advocate, appearing for the Respondent No.1,  pointed  out  that  the
allegations relating to corrupt practice made  against  the  Appellant,  are
contained  in  paragraph  10  of  the  Election  Petition  and  despite  the
observations made by the High Court, the same conveyed the manner  in  which
financial allurements and the distribution of gifts were made, as  also  the
issuance of cheques by the Appellant from the Indus Ind  Bank  near  Shastri
Bridge, 124, Napier Town, Jabalpur.  Mr. Khanna contended that although  Dr.
Dhawan  had  referred  to  the  issuance  of  cheques  as  being  a  fishing
expedition, but, in fact, the details relating to the  cheques  are  in  the
custody of the  Indus  Ind  Bank  and  are  easily  available.   Mr.  Khanna
submitted that the details of the cheque books and the cheque  numbers  have
also been provided in paragraph 9 of the Election Petition  which  disclosed
the strategy adopted by the Appellant for garnering votes in the election.

15.   Referring to the decision of this  Court  in  Sardar  Harcharan  Singh
Brar Vs. Sukh Darshan Singh [AIR  2005  SC  22],  which  also  involved  the
provisions of Section 83 of the 1951 Act, Mr. Khanna pointed out  that  even
if all the bundles of information which constitute the cause of  action  for
the Petition were not available in the Election  Petition,  the  same  could
not be dismissed at the threshold.  Mr.  Khanna  submitted  that  in  Sardar
Harcharan Singh Brar’s case (supra), this Court  had  occasion  to  consider
the observations made in the decision in the case of  Raj  Narain  Vs.  Smt.
Indira Nehru Gandhi [(1972) 3 SCC 850], which, inter alia,  laid  down  that
while a corrupt practice has to be strictly proved, it does not follow  that
a pleading in the election petition should receive a  strict  consideration.
The charge of corrupt practice in an election petition  is  a  very  serious
charge and has to be proved. It may or may not be proved.   The  allegations
may be ultimately proved or not proved.  But the question for the Courts  is
whether  a  petitioner  should  be  refused  an  opportunity  to  prove  his
allegations merely because the petition was drafted clumsily.

16.   Mr. Khanna submitted that it was in such context that it was  observed
that opportunity to prove should not be refused  and  the  Court  should  be
reluctant to stay an action on technical grounds. In the said  case  it  was
further recorded that “material facts” as referred to in Section 83  of  the
1951 Act show that the grounds of corrupt practice and the  facts  necessary
to formulate a complete cause of action, must be stated,  but  the  Election
Petition is not liable to be dismissed in limine  because  full  particulars
of the corrupt practices alleged were not set  out.   If  an  objection  was
taken and the Tribunal was of the view that full particulars  had  not  been
set out, the Petitioner had to be given an opportunity to amend  or  amplify
the particulars.  It is only in the event of non-compliance with such  order
to supply the particulars, that the charge, which remained vague,  could  be
struck down.  Mr. Khanna pointed  out  that  a  note  of  caution  had  been
sounded to the effect that rules of pleadings are intended  as  aids  for  a
fair trial and for reaching a just decision. An action at law should not  be
equated with a game of chess.  Provisions of law are not  mere  formulae  to
be observed as rituals.  Beneath the words of a provision of law,  generally
speaking, there lies a juristic principle.  It is the duty of the  Court  to
ascertain that principle and implement it.

17.   Mr. Khanna submitted  that  in  Sardar  Harcharan  Singh  Brar’s  case
(supra), it was pointed out that the views expressed in  Raj  Narain’s  case
(supra) had been subsequently reiterated in various other cases set  out  in
paragraph 11 of the judgment.

18.   Drawing a parallel with the facts of this case, Mr.  Khanna  submitted
that the High Court had passed the impugned  order  in  complete  consonance
with the views expressed in Sardar Harcharan Singh Brar’s case (supra).

19.     Mr. Khanna next referred to the decision of a three Judge  Bench  of
this Court in F.A. Sapa & Ors. Vs.  Singora  &  Ors.  [(1991)  3  SCC  375],
wherein the requirements of furnishing material facts and full  particulars,
within the meaning of Section 83(1) of the 1951 Act, in order  to  establish
corrupt practice, was considered in detail. After  considering  the  various
decisions rendered earlier, including that in Raj Narain’s case (supra),  on
the question of verification, Their Lordships held that Clause (c)  of  Sub-
Section (1) of Section  83  of  the  1951  Act,  provides  for  an  Election
Petition to be signed by the petitioner and  verified  in  the  manner  laid
down by the Code of Civil Procedure for the verification of  the  pleadings.
It was noted that under Section  83(2)  any  schedule  or  annexure  to  the
pleading must be similarly verified. Referring to Order VI Rule  15  of  the
Code, Their Lordships took note of Sub-Rule  (2)  which  provides  that  the
person verifying has to specify with reference to  the  numbered  paragraphs
of the pleading, what he verifies on his own knowledge and what he  verifies
upon information received and believed to be true.  The verification has  to
be signed by the person making it and must state the date on and  the  place
at which it was signed.  However, Their Lordships also went on to  say  that
the defect in the verification could be of a  formal  nature  and  not  very
substantial, or one which substantially complies with the  requirements,  or
that which is material but capable of being  cured.   Mr.  Khanna  submitted
that the bottom line of the aforesaid decision was that any  defect  in  the
verification was not fatal to the entertainment of the Election Petition  at
the threshold and  as  indicated  in  Sardar  Harcharan  Singh  Brar’s  case
(supra), an opportunity ought to be given  to  the  Election  Petitioner  to
cure such defect.

20.   Mr. Khanna submitted that the submissions advanced by Dr.  Dhawan  in,
relation to the order passed  by  the  High  Court,  were  contrary  to  the
decisions rendered by this Court  in  Sardar  Harcharan  Singh  Brar’s  case
(supra) and also in F.A. Sapa’s case (supra), and all  that  the  Court  had
directed was in  keeping  with  the  spirit  of  the  said  decisions  which
contemplated that an Election Petition, where corruption had  been  alleged,
should not be thrown out on a purely technical ground,  such  as  defect  in
verification of the pleadings, and without  giving  an  opportunity  to  the
Election Petitioner to cure such defect.

21.   From the  decisions  cited  by  learned  counsel  for  the  respective
parties, one line of decisions rendered by this Court  suggests  that  since
an Election Petition has serious consequences under Section 8A of  the  1951
Act,  the  provisions  of  the  Act  have  to  be  strictly  construed  and,
particularly, in cases where corruption is  alleged,  any  omission  in  the
pleadings to  mention  such  corrupt  practice  would  render  the  Election
Petition not maintainable.  On the  other  hand,  as  indicated  immediately
hereinbefore, the other line of decisions  suggests  that  since  the  issue
involved in an Election Petition alleging corrupt  practice,  was  of  great
public interest,  an  Election  Petition  should  not  be  rejected  at  the
threshold, but an opportunity should be given to the Election Petitioner  to
cure the defects which are curable.  In the  instant  case,  what  has  been
contended by Dr. Dhawan is that in the absence  of  a  cause  of  action  or
incomplete cause of action for the  Election  Petition  on  account  of  the
verification thereto not being in conformity with the  provisions  of  Order
VI Rule 15 of the C.P.C. the Election Petition was liable to  be  dismissed.
Such submission is not acceptable to me in the light  of  the  decisions  in
Sardar Harcharan Singh Brar’s case (supra) and  also  in  F.A.  Sapa’s  case
(supra), despite the fact that in F.A. Sapa’s case it was indicated that  if
the affidavit of  schedule  or  annexure  forms  an  integral  part  of  the
Election Petition itself, strict compliance would be insisted upon.
22.   I am inclined to agree with the  trend  of  thinking  in  F.A.  Sapa’s
case, where it had been indicated that a charge of corrupt  practice  has  a
two dimensional effect, namely, its impact on the returned candidate has  to
be viewed from the point of view of the  candidate’s  future  political  and
public life and from the point of view  of  the  electorate  to  ensure  the
purity of the election process.  Accordingly, there has to be a  balance  in
which the provisions of Section 81(3) of the  1951  Act  are  duly  complied
with to safeguard the interest, both of the individual  candidate,  as  well
as of the public.  In this case, while accepting the case made  out  by  the
Appellant regarding the deficiencies in the Election Petition, the  Division
Bench of the High Court, in my view, did not commit any error  in  directing
the Election Petitioner to cure the defects in the Election Petition,  which
had been brought out during the hearing of the Election Petition.

23.   The decisions cited on both sides, lay  down  the  law  in  regard  to
Election Petitions and how Election Petitions are to be  presented  and  the
procedure to be strictly followed in  filing  such  Election  Petitions,  in
which  corruption,  in  particular,  is  the  allegation  made  against  the
returned candidate. There is little doubt that the  provisions  have  to  be
strictly construed, but that does not mean that any defect in  the  Election
Petition cannot be allowed to be cured in the public interest.  If after  an
opportunity is given, still no steps are taken by  the  Election  Petitioner
to cure the defects which are noticed, then the  rigours  of  the  procedure
indicated by the 1951 Act, come into effect with full vigour.

24.   I, therefore, see no reason to interfere with the order  of  the  High
Court appealed against and the appeal is, accordingly, dismissed.

25.   There will, however, be no order as to costs.


                                                     ………………………………………………………J.
                                     (ALTAMAS KABIR)


New Delhi
Dated : 03.05.2012
                                                                  REPORTABLE

                        IN THE SUPREME COUR OF INDIA


                        CIVIL APPELLATE JURISDICTION


             CIVIL APPEAL NO.  4189                     OF 2012
                  [Arising out of SLP (C) NO.30417 OF 2009]



Ishwardas Rohani                                         ….Appellant

                                   Versus

Alok Mishra & Ors.                                        ….Respondents



                               J U D G M E N T


Chelameswar, J.


            Both the petitioner (herein after referred to as  ‘the  returned
candidate’) and the  1st  respondent  (herein  after  referred  to  as  ‘the
election petitioner’) contested the  General  Election  to  the  Legislative
Assembly of the  State  of  Madhya  Pradesh  from  the  Jabalpur  Cantonment
Constituency.  The returned candidate was the  candidate  of  the  Bharatiya
Janata Party.  The election petitioner  was  the  candidate  of  the  Indian
National Congress, who lost the election with a margin  of  24731  votes  to
the returned candidate.  The election petitioner questioned the validity  of
the election of the returned candidate by Election Petition  No.22  of  2009
on the file of the High Court of Madhya Pradesh.  In the said petition,  the
election petitioner not only sought a declaration that the election  of  the
petitioner is void, but also sought a further declaration that;
           “the petitioner No.1 as Return  candidate  and  directed  to  be
           unseated Respondent No.1.”

It is further prayed:
           “The  Hon’ble  High  Court  further  kindly  be   directed   the
           Respondent to declare the petitioner as Elected candidate.”

Certain other reliefs are also prayed for  in  the  election  petition,  the
details of which are not necessary  for  our  purpose.   The  said  election
petition  was  filed  on  20-01-2009,  admittedly,  within  the  period   of
limitation prescribed for the said purpose.   On  16-06-2009,  I.A.No.58  of
2009 was filed by the petitioner herein (returned candidate) under  Order  7
Rule 11 of the Code  of  Civil  Procedure,  seeking  the  dismissal  of  the
election petition on the following grounds:
               a) The allegations of corrupt practice lacks material  facts
                  and particulars, inasmuch as it is not disclosed on  what
                  date and time  the  alleged  corrupt  practice  had  been
                  committed;


               b) The mandatory affidavit in Form  25  of  the  Conduct  of
                  Election Rules does not fulfil the mandatory contents  as
                  required in law;


               c) Election Petitioner has not filed affidavit  as  required
                  under the provisions of CPC;


               d) The copy of the petition supplied by the Respondent  No.1
                  to the Petitioner is not identical to  the  copy  of  the
                  petition filed and the documents annexed to the  election
                  petition have not duly been verified  by  the  Respondent
                  No.1;

               e) The averments contained in a  number  of  paragraphs  are
                  frivolous in nature and does not disclose  any  cause  of
                  action against the Petitioner herein.”

2.          The  abovementioned  IA  was  partly  allowed  by  the  impugned
Judgment on 05-10-2009.   The  operative  portion  of  the  Judgment  is  as
follows:
             “Consequently, the I.A. is allowed in part.  In the result, the
             petitioner is directed to –


                  i) delete the pleadings relating to voter list and  Model
                     Code of Conduct.


                 ii) move  an  appropriate  application  for  amending  the
                     pleadings in the light of the objections raised by the
                     respondent no.1 and the defects as pointed out in Para
                     2 (above) subject to the limits circumscribed by law.”

Hence, the present S.L.P.
3.          Before I proceed to examine the correctness  of  the  conclusion
reached by the High Court, I deem it necessary to  extract  para  2  of  the
Judgment under appeal in toto:
           “2. At the outset, it may be remarked that the election petition
           is not a good piece of drafting.  A bare perusal  thereof  would
           reveal that not a single paragraph is free from grammatical  and
           typographical errors and omissions.  Even provisions of law have
           not been correctly  referred  to.   For  example  :  sub-section
           (1)(A) and (B) have been mentioned as sub-section  (A)  and  (B)
           Section 123.  This apart, there  is  apparent  conflict  between
           contents  of  some  of  the  annexures  and  the   corresponding
           pleadings.   Moreover,  some  averments  are   mere   mechanical
           repetitions of the facts already pleaded [See  Para  2  (wrongly
           numbered as 1), 3A and 7].  Further,  the  petitioner  has  used
           certain uncommon words such as Cambal, Chadar & Floor-Sari.   It
           appears that the petitioner is labouring under  a  misconception
           that an election petition must be drawn up in  English  language
           whereas it is well settled that in Madhya Pradesh,  an  election
           petition drafted in Hindi language would be maintainable  (Vijay
           Laxmi Sadho v. Jagdish AIR 2001 SC 600 referred to).   Although,
           these defects  would  not  provide  any  reasonable  ground  for
           rejection of the petition  in  limine  yet,  the  negligent  and
           indifferent manner in which the petition has  been  drafted  and
           filed without even reading it, deserves to be deprecated.”

4.          In my view, the election petition is not only  a  bad  piece  of
drafting, but also it is difficult  to  state  with  precision  as  to  what
exactly is the substance of the complaint in the election  petition.     The
absurdity of the election petition can only be  understood  by  reading  it,
but cannot be explained.  There are  vague  allegations  that  the  returned
candidate committed corrupt practices falling under  Sections  123  (A)  and
(B), 123 (2), (6) and (7) of the Representation  of  the  People  Act,  1951
(henceforth referred to as    ‘the R.P. Act’.).  To  demonstrate  the  utter
chaos of the pleadings, I extract a passage from the election petition:
           “………………  Since the Respondent No.1 have  wrongly  and  illegally
           adopted the corrupt practices by distributing the amount in cash
           as well as  through  the  Cheque,  Article,  Cloths,  Ornaments,
           Ornament’s Jewellery and  other  article  further  he  has  also
           command on the Respondent Distt.  Election Officer and taken the
           Assistance from police  and  other  authority,  so  that  it  is
           apparent that respondent  No.1  Iswardas  Rohani  has  committed
           milled corrupt practices, which is same under Section  123A,  B,
           123(2) and also giving threat and other provision  of  this  act
           have also been violating therefore, his Election is  deserve  to
           be declare void.”

5.          On the basis of such pleadings, of which the  above  is  only  a
sample, the  respondent  invites  an  adjudication  that  corrupt  practices
falling under Section 123(2), (6), (7) and 123(A) and (B) of the  R.P.  Act,
have been committed.  There are no Sections  numbered  123(A),  (B)  in  the
R.P.Act,  1951.   The  High  Court,  however,  generously   construed   such
reference to Sections  123(A)  and  (B)  occurring  under  para  13  of  the
election petition as references to Section 123(1)(A) and (B).
6.          The substance of the chaotic pleadings in the election  petition
is culled out by my learned brother as follows:
            “The ground relating to corrupt practice,  as  alleged  by  the
           Respondent No.1 herein, inter alia, was to the following  effect
           :


           (i) as an ex-M.L.A. and Ex-Speaker of the Vidhan Sabha and being
           a close associate of  the  Chief  Minister  of  the  State,  the
           Appellant was able to exert undue influence  on  the  Collector,
           the  District  Returning  Officer  and  other  authorities   for
           procuring their assistance for the furtherance of his  prospects
           in the elections.;


           (ii) that on 2nd November, 2008, when the  Respondent  No.1  was
           returning  to  Jabalpur  from  New  Delhi,  as  the   authorised
           candidate of the Indian National Congress, his  supporters,  who
           came to meet him at the railway station, were arrested,  whereas
           the very next day, no action was taken against the supporters of
           the Appellant herein who had deployed as many as 300 vehicles in
           the election rally organised on the occasion of  the  filing  of
           his nomination, although, permission had been given for  use  of
           only 27 vehicles.  The Appellant was allowed to  erect  “welcome
           gates” at various places and used unauthorised vehicles and also
           put up flags, hoardings and posters on electric poles  and  even
           on temples, despite the objections raised by the Respondent No.1
           herein;


           (iii) during his election compaign, the    Appellant distributed
           school bags reflecting the name of the Respondent No.1, as  also
           his party flag amongst the  children  of  the  voters  and  huge
           amounts of money were also paid through cheques under  the  grab
           of financial assistance by Garib Sahayata  Samiti.   Apart  from
           the above, clothes, sweets, blankets,  cheques  for  amounts  of
           Rs.500/- to the female voters and  identity  and  ration  cards,
           were distributed amongst the voters by  the  supporters  of  the
           Appellant, but no action was taken either against the  Appellant
           or  his  agent  for  resorting   to   such   corrupt   practice.
           Accordingly, in the election petition the Respondent No.1, inter
           alia,  prayed  for  a  declaration  that  the  election  of  the
           Appellant herein, Ishwardas Rohani, be declared as void  and  he
           be declared as the returned candidate.”

7.          For the purpose of deciding the present petition, I  shall  also
presume that the election  petitioner  intended  to  complain  that  various
corrupt practices, i.e., bribery falling under Section 123 (1)(A)  and  (B);
unduly influencing the voters, falling under Section  123(2);  incurring  or
authorising expenditure in contravention of Section 77  –  corrupt  practice
under Section 123(6) and procuring the assistance from the employees of  the
State, falling under Section 123(7), were committed.
8.          Before examining the correctness of the Judgment  under  appeal,
a brief survey of the Scheme of the relevant provisions  of  the  R.P.  Act,
1951, would be useful.   Section  100  provides  the  grounds  on  which  an
election could be declared  void.   The  said  Section,  insofar  as  it  is
relevant for our present purpose, reads as under:
           “Subject to the provisions of sub-section (2) if the High  Court
           is of the opinion –


                     a) …………………….


                     b) that any corrupt practice has been  committed  by  a
                        returned candidate or his election agent or  by  any
                        other  person  with  the  consent  of   a   returned
                        candidate or his election agent;….


                     c) ……………………..


                     d) that the result of the election, in  so  far  as  it
                        concerns a returned candidate, has  been  materially
                        affected—

                  (i)…………………


                  (ii) by any corrupt practice committed in  the  interests
                  of the returned candidate by  an  agent  other  than  his
                  election agent.


                  (iii)…………………


                  (iv)……………….


           The High Court  shall  declare  the  election  of  the  returned
           candidate to be void.”

It can be seen from the above that the election of a returned candidate  can
be declared void, if the High Court is satisfied;
     A) that any corrupt practice has been committed either by the returned
        candidate or his election  agent  or  any  other  person  with  the
        consent of either the candidate or his election agent;
     B) that any corrupt practice has been committed  by  any  agent  other
        than the election agent.
In the case of the satisfaction  of  the  High  Court  of  the  1st  of  the
abovementioned two contingencies, the High Court  can  straightaway  declare
the election of the returned candidate to be void.  Whereas in  the  2nd  of
the abovementioned contingencies, the High  Court  must  also  be  satisfied
that such commission of the corrupt practice  has  materially  affected  the
result of the election because  the  corrupt  practices  falling  under  the
later category are committed without the consent of the  returned  candidate
or his election agent.
9.          The meaning of the  expressions  “candidate”,  “election  agent”
and “agent other than the election agent” is  required  to  be  ascertained.
Part VI of the R.P. Act deals with disputes regarding elections.   Part  VII
of the R.P.  Act  deals  with  corrupt  practices  and  electoral  offences.
Section 79, with which  part  VI  commences,  contains  the  definitions  of
various expressions employed in Part VI  and  Part  VII  of  the  R.P.  Act.
Section 79, insofar as it is relevant for  the  present  purpose,  reads  as
follows:
          “In this Part  and  in  Part  VII  unless  the  context  otherwise
          requires,-


               (a)……………….


               (b) “candidate” means a person who has  been  or  claims  to
               have been duly nominated as a candidate  at  any  election;”



The expression “election agent” is not defined  therein.   But,  Section  40
provides for the appointment of “election  agent”.   It  stipulates  that  a
candidate at an election can appoint any person, who is not subject  to  any
disqualification stated in Section  41[1],  to  be  his  election  agent[2].
Therefore, the expression “election agent” occurring under Section 100  must
be understood to be only an election agent appointed by the candidate  under
Section 40.  The meaning of  the  phrase  “agent  other  than  the  election
agent” requires an examination.  Sections 46 and 47 of the Act, provide  for
the appointment of polling agents[3] and counting  agents[4],  respectively,
by the contesting candidates at an election.  I am  conscious  of  the  fact
that the phrase may take within its sweep other persons also,  but  for  the
purpose of the present case,  it  is  not  necessary  to  explore  the  full
contours of the phrase.
10.         Section 123 of the R.P. Act deals with  corrupt  practices.   It
declares 10 activities to be corrupt  practices.   They  are;  (i)  bribery;
(ii) undue influence; (iii) appeal in the name of religion;  (iv)  promotion
of enmity or hatred between different classes  of  citizens  on  grounds  of
religion, race, caste, community, etc.; (v) propagation or glorification  of
the practice of sati; (vi) publication of any false  statement  in  relation
to the personal character of any candidate, etc.  reasonably  calculated  to
prejudice the prospects  of  that  candidate’s  election;  (vii)  hiring  or
procuring vehicles for the free conveyance of any  elector  to  the  polling
station; (viii) incurring expenditure in contravention of Section  77;  (ix)
obtaining or procuring any  assistance  of  various  categories  of  persons
specified under sub-section (7); and (x) booth capturing.
It must be mentioned that each one  of  the  sub-sections  of  Section  123,
deals with a distinct corrupt practice,  which  contemplates  commission  or
omission of an act or acts indicated therein either by the candidate or  his
agent or any other person with the consent of either the  candidate  or  his
election agent.  The only sub-section, which does not refer to the  election
agent or any other person is sub-section (6), i.e., the corrupt practice  of
incurring or authorising the expenditure in contravention of Section 77.
11.         It is argued by the learned senior  counsel  Dr.  Rajeev  Dhawan
appearing for  the  returned  candidate  that  the  allegations  of  corrupt
practice contained in the election petition fall into  two  categories;  (1)
corrupt practices attributed to the  returned  candidate;  and  (2)  corrupt
practices attributed to other persons.  The learned counsel argued that  the
returned candidate cannot be subjected to the  pain  of  going  through  the
trial of the election  petition  on  these  allegations  for  the  following
reasons:
(i) the allegations of commission of corrupt  practices  either  pertain  to
the period anterior to 03-11-2008;  or,  (ii)  lack  in  material  facts  to
constitute any corrupt practice satisfying the description  of  any  one  of
the corrupt practices enumerated under Section 123.
12.         Coming to the allegations of corrupt practice said to have  been
committed by certain named and unnamed persons in the election petition  the
learned counsel argued that, once again, the allegations are vague,  without
any reference to the dates on which such acts  were  committed  and  do  not
disclose any cause of action.   Further,  there  is  no  allegation  in  the
election  petition  that  such  named  persons,  who  are  alleged  to  have
committed certain corrupt practices, did so with the consent of  either  the
returned candidate or  his  election  agent.   Interestingly,  the  election
petition does not even contain any specific allegation against the  election
agent of the returned candidate.  Even the name of  the  election  agent  is
not mentioned.
13.         On  the  other  hand,  the  learned  counsel  for  the  election
petitioner submitted that the election petition contained all  the  material
facts required to be pleaded for  establishing  the  commission  of  corrupt
practices.  Such pleadings are required to be scrutinized liberally  in  the
larger interests of the purity of election system as was done  by  the  High
Court.  The learned counsel also submitted that in view  of  the  fact  that
what is at stake is the purity  of  the  election  system,  the  High  Court
rightly directed the election petitioner to move an appropriate  application
for the amendment of the pleadings.  I am only reminded of a  caution  given
by this Court in Kunwar Nripendra  Bahadur  Singh  vs.  Jai  ram  Verma  and
others, (1977) 4 SCC 153:
           “21. …………, the provisions of the election law which have got  to
           be  construed  strictly,  must   work   with   indifference   to
           consequences, immediate or mediate……………..”

14.         Admittedly, the returned candidate filed his nomination  on  03-
11-2008.  It is only with effect from that  date  the  petitioner  became  a
candidate for  the  election  in  dispute.   Goes  without  saying  that  an
election agent could have been appointed  by  the  returned  candidate  only
after  filing  his  nomination.   To  be  guilty  of  committing  a  corrupt
practice, the returned candidate or his election agent or some other  person
duly authorised either by the returned candidate or his election agent  must
have committed some act or omission contemplated under one  of  the  clauses
under Section 123 of the R.P. Act, after  the  03-11-2008,  but  before  the
completion of the election process.
15.         It was so held  by  this  Court  in  Mohan  Rawale  vs.  Damodar
Tatyaba, (1994) 2 SCC 392.   It  was  a  case  where  the  election  of  the
appellant before this  Court  was  called  in  question  by  the  respondent
therein on  the  ground  that  the  appellant  committed  corrupt  practices
falling under Section  123(2),  (3)  and  (3)(A).   The  returned  candidate
raised various preliminary objections regarding the maintainability  of  the
election petition.  One of the objections was that the  various  allegations
said to  be  constituting  corrupt  practices,  pertain  to  a  period  long
anterior to the date of  the  nomination  of  the  returned  candidate  and,
therefore, it was argued by  the  returned  candidate  that  even  if  these
allegations were to be proved, they would not amount to the commission of  a
corrupt practice by the returned candidate.  Such an objection did not  find
favour with the Bombay High Court.  Reversing the conclusion of  the  Bombay
High Court, this Court held at para 6 as follows:
           “………………  The view fails to take note of and give effect  to  the
           substitution of the definition of the expression “candidate”  in
           Section 79(b).  All sub-sections of Section 123 of the Act refer
           to the acts of a ‘candidate’ or his election agent or any  other
           person with the consent of the candidate or his election  agent.
           The substituted definition completely excludes  the  acts  by  a
           candidate up to  the  date  he  is  nominated  as  a  candidate.
           …………………..”

16.         The allegations in the election petition on  hand  are  required
to be examined in the light of the  principle  of  law  laid  down  by  this
Court.
17.         Para 1 of the election petition narrates the incidents that  are
alleged to have occurred from 30-10-2008  to  02-11-2008  and  it  reads  as
follows:
           “That, the context of the situation is that the  petitioner  was
           out of City at Jabalpur he was at Delhi for confirmation of  his
           Ticket  from  Indian  National  Congress  Party,  the  same  was
           confirmed  on  30.10.2008  from  his  Party  on  1.11.2008   the
           petitioner No.1 was come from Delhi on 2.11.2008, the petitioner
           come from Delhi to Jabalpur by Mahakohal  Express  Train,  after
           receiving the information from the petitioner his supporter were
           reach to the Jabalpur Railway station, where a number of  person
           have received to the petitioner after come-out from the  Railway
           Station there was crowd of the supporter who were reached  there
           by own vehicle or by  hire  that  very  day  District  Returning
           Officer, Respondent and his observer including  the  police  men
           and authority an subordinate officer, who have  been  authorised
           by the State Election Commission on the instance  of  Respondent
           no.1 Speaker of State Legislative Assembly they have wrongly and
           illegally misused their power and seized the personal vehicle of
           petitioner supporter and confined to the police  station  Cantt.
           And police station Civil Lines with the intention to  demoralize
           and breaking the support with the help of police dispute of that
           Gathering was not political movement nor any object to moved  in
           the shape of Rally, but all of  a  sudden  it  was  happen,  the
           Respondent No. 1 winning candidate have declare  his  Rally  for
           submitting the Election nomination form for this  very  purpose.
           The Respondent Nod.1 have arranged as much  as  300  Vehicle  in
           that Rally Respondent and his subordinate officer (observer) who
           ere watching the Gathering and strand of vehicle  in  the  Rally
           they have never raised any objection,  nor  seized  any  of  the
           vehicle, despite of  the  permission  was  obtain  for  only  27
           vehicles for used in the Election, but 10 time’s  more  vehicles
           were present  in  the  Rally  on  the  date  of  submitting  his
           nomination form the Respondent his subordinate and  police  have
           not acted  fairly  and  Reasonably  in  the  Election  of  Cantt
           Constituency  and  they  are  working/acting   in   support   of
           Respondent No.1, who is speaker of  State  legislative  Assembly
           and having infalance on the Respondent on  the  Distt.  Election
           Officer including all the Executive Officer, who are working  in
           district  Jabalpur  including  the  police  Officer,  they  have
           exercise the colour of power in favour of  Respondent  No.1  and
           against the petitioner, the complaint  was  made  to  the  Chief
           Election Commission and State Election Commission, but they have
           not taken any action against the Respondent No.1.”

The gist of this paragraph appears to be (giving some allowance to  the  bad
drafting) that while the returned candidate was  permitted  to  take  out  a
rally with a large number of vehicles without any  objection  from  anybody,
the vehicles of the election petitioner’s supporters were seized on the  02-
11-2008 when they took out a rally from the Jabalpur railway  station  after
the election petitioner’s return from Delhi.  Assuming all  the  allegations
extracted above to be true and such allegations constitute on 02-11-2008  (I
only assume for the limited purpose), the returned  candidate  had  not  yet
filed his  nomination.   Even  according  to  the  election  petitioner  the
returned candidate filed the nomination on 03-11-2008:
           “That  on  the  next  day  3.11.2008  the  Respondent  No.1  had
           proceeded to fill up the nomination farm / paper.  ………..”

That apart, from a reading of the above-extracted  portion,  the  allegation
appears to  be  that  the  vehicles  of  the  election  petitioner  and  his
supporters were seized by the State Election Commission  and  its  officers,
but not the returned candidate:
           “that very day District Returning Officer,  Respondent  and  his
           observer including the police men and authority  an  subordinate
           officer,  who  have  been  authorised  by  the  State   Election
           Commission on the instance of Respondent No.1 Speaker  of  State
           Legislative Assembly they have  wrongly  and  illegally  misused
           their power  and  seized  the  personal  vehicle  of  petitioner
           supporter and confined to the police station Cantt.  And  police
           station  Civil  Lines  with  the  intention  to  demoralize  and
           breaking the support with the help of police ………………….”

Therefore, looked at either way, the returned candidate  cannot  be  legally
accused to be guilty of any activity falling within the scope of any one  of
the corrupt practices enumerated under the sections of the R.P.  Act,  1951,
as, on 02-11-2008, the returned candidate had not yet filed his nomination.
18.         Coming to the allegation that the  returned  candidate  being  a
Member of the Legislative Assembly and also  the  Speaker  at  the  relevant
point of time, was able to exert undue influence on the Collector,  who  was
the District Returning Officer, and other authorities  for  procuring  their
assistance  for  the  furtherance  of  his  prospects  in   the   elections-
allegations are too omnibus.  Such allegations are to be found in para 3  of
the election petition.  The vagueness of the pleading  is  better  extracted
than explained:
           “PROCURING ASSISTANCE FROM GAZETTED OFFICER:
           It is respectfully submit that the Bhartiya Jana  Party  is  the
           Rulling Party in the State and also have its  influence  to  all
           the Executive Officer, who are serving in the  State  of  Madhya
           Pradesh.  They are directly or indirectly having  relation  with
           the Respondent No.1 who is Speaker of State Legislative Assembly
           and during last five year the Govt. of Bhartiya Janta Party  was
           dealing their power and handling the same with the help  of  all
           the Gazetted Officer including the  Collector  of  the  District
           including the Police Officer Shri Shivraj Singh Chouhan  is  the
           Chief Minister of Madhya Pradesh  and  has  got  hold  over  the
           Administrative Machinery during the Election  period  they  have
           directly or indirectly supported to the Respondent No.1  who  is
           Speaker of State Assembly the ‘lure’ work in a Better  way  than
           the command to the Administrative Officer and there  subordinate
           to them with the Aid an Assistance  of  Chief  Minister  Shivraj
           Singh  Chouhan,  the   Respondent   No.1   having   very   thick
           Relationship with the Respondent.  So that the District Election
           Officer, Jabalpur was regularly oblige to the Respondent No.1 by
           way of supporting the act of Respondent No.1 and  objecting  the
           same act  by  illegal  manner,  the  Respondent  have  performed
           several act to oblige  the  Respondent  No.1  the  same  are  as
           under;”

Further, there are five sub-paras (A) to (E) in para 3.  Sub-para (C)  deals
with some alleged irregularities in the  preparation  of  the  voters  list,
which can never be the subject matter of an election petition and  the  High
Court rightly[5] directed the deletion of those allegations.   Sub-para  (D)
deals  with  the  objection  of  the  petitioner  regarding  employment   of
Electronic Voting Machines.  These too are the vague allegations with  which
the returned candidate is no way concerned.  Sub-paras  (A)  and  (B),  once
again, repeat the allegations contained in para 1 of the election  petition,
i.e., allegations regarding the seizure of  the  vehicles  of  the  election
petitioner and his supporters, etc.  Para 4 of the election  petition,  once
again, exclusively deals with the complaint  regarding  the  preparation  of
the voters list.
19.         Paras 5 and 6 contain the allegations of distribution  of  cash,
cheques,  clothing  material  and  school  bags  to   the   children.    The
allegations in para 5 pertain to the distribution of “cloths” on  17-10-2008
and cash to 200 persons on 21-10-2008 and a cheque  drawn  on  the  IndusInd
Bank, Shastribridge, Jabalpur, for an amount of Rs.500/- in favour  of  Shiv
Durga Utsava Sammittee on 08-10-2008.  Assuming for the  sake  of  arguments
that all  the  abovementioned  allegations  are  true  and  constitute  some
corrupt practice, all these allegations pertain to a  period  prior  to  the
filing of the nomination, i.e., 03-11-2008, by the returned candidate.
20.         Para  6,  once  again,  contains  allegations  of  the  returned
candidate  issuing  cheques,  the  numbers  of  which  are   given   without
disclosing in whose favour such cheques were given, but it  is  relevant  to
notice that even according to the election  petitioner,  such  cheques  were
given some time prior to 30-10-2008, because it is alleged in  para  6  that
the election petitioner lodged  a  complaint  dated  30-10-2008,  marked  as
Annexure P-12 to the petition, with regard to the issuance of  the  cheques.
Obviously, the cheques must have been issued prior to  that  date.   At  the
cost of repetition it must  be  stated  that  by  30-10-2008,  the  returned
candidate had not filed his nomination:
           “That the Respondent No.1 have issued the Cheque to the  several
           other person.  Even after notification issued  by  the  Election
           Commission and prior to the date, he has given the cheque to the
           several other person from the month of Sept.  2008,  Oct.  2008,
           Nov. 2008 and Dec. 2008 continuously cheque of IndusInd Bank was
           issued the same was  encashed  by  the  person  the  Cheque  No.
           mentioned in list submitted the Cheque No.348127 to  348150  and
           716616 to 716894 approximately 200 cheque were given to get vote
           from the Voter  the  list  of  the  Cheque  is  filed  with  the
           complaint dated 30.10.2008, marked as  ANNEXURE  P-12  with  the
           petition.  The petitioner have also submitted  the  facts.   The
           Respondent No.1 with the help of  their  reliable  Ward  member,
           Punch and Surpanch through the worker the amount was distributed
           on 29.10.200, even in the Eve of Depawali.  The Respondent  No.1
           have distributed the amount in the Box of Sweet with Sweet  also
           the  petitioner  have  submitted  the   Complaint   before   the
           Respondent, Distt. Election Officer, but no action was taken  by
           the  Distt.  Election  Officer,  Respondent,   even   they   are
           supporting  to  the  Respondent  No.1   this   Complaint   dated
           30.10.2008 is already filed as Annexure P-12, but no action  was
           taken.”

21.         Para 7, once again, repeats the allegations contained in para  1
of the election petition.
22.         Para 8 contains vague  allegations  regarding  the  erection  of
welcome gates.  Assuming for  the  sake  of  arguments  that  the  so-called
“welcome  gates”  were  erected  without  the  permission  of  the  District
Election Officer, as alleged by the election petitioner, I  simply  fail  to
understand, under what Head of corrupt practice such an  activity  could  be
brought.
23.         Para 9, once again, contains some  vague  allegations  regarding
distribution of clothing material, etc.  Just to demonstrate  the  vagueness
of the pleading, I extract the paragraph:
           “………, further the Respondent No.1 have alsogiven the  number  of
           Article to the Women of the Cantt. Constituency in which he  had
           distributed the Payal, Long, Bichhiya, Clothes, Cambal and other
           thing the complaint.  The Respondent No.1 have also  distributed
           the  Cash  amount  to  the  several  person  or  Sammittee   the
           petitioner have made the complaint in time to  time  before  the
           district Election officer  and  State  Election  Commission  and
           Superior Authority, by they have not acted upon  nor  taken  any
           action against the Respondent No.1 nor made any inquiry  on  the
           Complaint submitted by the petitioner and his Party supporter or
           agent the complaint dated  17.10.2008,  21.10.2008,  23.10.2008,
           30.10.2008, 31.10.2008, 13.11.2008  and  14.11.2008.   Even  the
           Respondent have distributed the  amount  by  Cheque  during  the
           Course of Election from 1.9.2008 to upto December 2008, from two
           cheque book as Cheque No.716886 of this series and  Cheque  book
           No  348130  upto  100  and  more  cheque  from  the  Series  was
           distributed by the Respondent No.1 in favour of Voter  or  there
           benefited person.  So in  this  way  the  Respondent  No.1  have
           adopted the corrupt practices during the Election or before  the
           notification he was trying to gain Vote from  the  Voter  a  any
           cost.”

24.         In my opinion, if a returned candidate is asked  to  face  trial
of an election petition, such as the one, which is  the  subject  matter  of
the instant S.L.P., it would be an absolute travesty of justice and  opposed
to all the settled principles of law regarding the  election  disputes.   It
was held in Rahim Khan vs. Khurshid Ahmed and others, (1974) 2 SCC  660,  as
follows:
           “9. ……….   An  election  once  held  is  not  be  treated  in  a
           lighthearted  manner  and  defeated  candidates  or  disgruntled
           electors  should  not  get  away  with  it  by  filing  election
           petitions on unsubstantial grounds and  irresponsible  evidence,
           thereby introducing a serious  element  of  uncertainty  in  the
           verdict already rendered by the electorate.  An  election  is  a
           politically sacred public act, not  of  one  person  or  of  one
           official, but of the collective will of the whole  constituency.
           Courts naturally must respect this  public  expression  secretly
           written and show extreme reluctance to set aside or declare void
           an election which has already been held unless clear and  cogent
           testimony compelling the Court to uphold  the  corrupt  practice
           alleged against  the  returned  candidate  is  adduced.   Indeed
           election petitions where corrupt practices are imputed  must  be
           regarded as  proceedings  of  a  quasi-criminal  nature  wherein
           strict proof is necessary.  The burden is therefore heavy on him
           who assails an election which has been concluded.”

25.         Coming to the pleadings in an  election  petition,  an  election
petition is required to contain all the material  facts,  which,  either  if
proved or went uncontraverted, would be sufficient to constitute  the  cause
of action for setting aside the election of the returned  candidate  on  one
or some of the grounds specified under Section 100 of the R.P. Act.   It  is
held repeatedly by this Court that allegations of corrupt  practice  are  in
the nature of criminal charges.  In Dhartipakar Madan Lal Agarwal vs.  Rajiv
Gandhi, 1987 Supp SCC 93, this Court examined the nature of the  allegations
of corrupt practice and the effect of the vagueness of the  pleading  in  an
election petition and held as follows at para 108:
           “Allegations of corrupt practice are in the nature  of  criminal
           charges, it is necessary that there should be  no  vagueness  in
           the allegations so that the returned candidate may know the case
           he has to meet.  If the allegations are vague  and  general  and
           the particulars of  corrupt  practice  are  not  stated  in  the
           pleadings, the trial of the election petition cannot proceed for
           want of cause of action.  The emphasis of  law  is  to  avoid  a
           fishing and roving inquiry.  It is therefore necessary  for  the
           Court to scrutinise the pleadings relating to  corrupt  practice
           in a strict manner.”
                                                           Emphasis Supplied
Again, in Anil Vasudev Salgaonkar vs. Naresh Kushali  Shigaonkar,  (2009)  9
SCC 310, it was held as follows:
           “57. It is settled legal position that all “material facts” must
           be pleaded by the party in support of the case  set  up  by  him
           within the period of limitation.  Since the object  and  purpose
           is to enable the opposite party to know the case he has to  meet
           with, in the absence of pleading, a party cannot be  allowed  to
           lead evidence.  Failure to state even  a  single  material  fact
           will entail dismissal of the election  petition.   The  election
           petition must contain a concise statement of “material facts” on
           which the petitioner relies.”
                                                           Emphasis Supplied
The distinction between ‘material facts’  and  ‘material  particulars’  fell
for the consideration of this Court repeatedly.  In  Samant  N.  Balakrishna
vs. George Fernandez and others, (1969)  3  SCC  238,  this  Court  held  as
follows:
           “29. ……….  What is the difference  between  material  facts  and
           particulars?  The word ‘material’ shows that the facts necessary
           to  formulate  a  complete  cause  of  action  must  be  stated.
           Omission of a single material fact leads to an incomplete  cause
           of action and the statement of claim becomes bad.  The  function
           of particulars is to present as full a picture of the  cause  of
           action with such further information in detail as  to  make  the
           opposite party  understand  the  case  he  will  have  to  meet.
           …………………….”

In Anil Vasudev Salgaonkar (supra), this  Court  reiterated  the  difference
between the material facts and particulars:
           “58. There is no definition of “material facts”  either  in  the
           Representation of the People Act, 1951 nor in the Code of  Civil
           Procedure.  In a series of judgments, this Court has  laid  down
           that all facts necessary to formulate a complete cause of action
           should be termed as “material facts”.   All  basic  and  primary
           facts which must be proved by a party to establish the existence
           of cause of action or defence  are  material  facts.   “Material
           facts” in other words mean the  entire  bundle  of  facts  which
           would constitute a complete cause of action.  …………….”


The absolute necessity of mentioning all the material facts in  an  election
petition is reiterated:
                 “48. ……………..  It is, however, absolutely essential that all
                 basic and primary facts which must be proved at  the  trial
                 by the party to establish  the  existence  of  a  cause  of
                 action or defence are material facts and must be stated  in
                 the pleading by the party.”

26.         Though the failure to give the ‘material  particulars’  has  not
been held to be fatal, the failure to give ‘material facts’ has always  been
held to be fatal to the election petition.
27.         The Judgment under appeal recorded a finding that  the  election
petition contained all material facts.  At para  12  of  the  Judgment,  the
learned Judge recorded as follows:
          “12. Keeping in view  the  criteria  for  distinguishing  material
          facts from material particulars, it can safely be  concluded  that
          the election petition contains material facts in respect of  other
          corrupt practices alleged to have been committed by the respondent
          no.1.  It is true that the allegations suffer from lack of certain
          material  particulars  particularly  as  to  the  consent  of  the
          returned candidate or his election agent but, as explained in  Rai
          Naraian’s  case  (supra),  this  Court  may  allow  the  deficient
          particulars to be amended or elaborated.”
                                                           Emphasis Supplied

And opined that it  is  permissible  to  allow  amendment  of  the  election
petition to enable the election petitioner to supply the particulars.   Such
a conclusion, according to the High Court, is warranted on the  basis  of  a
Judgment of this Court in Sardar  Harcharan  Singh  Brar  vs.  Sukh  Darshan
Singh and others, (2004) 11 SCC 196.  It was a  case  where  the  appellants
before the Court filed election petition challenging  the  election  of  the
respondent to the Panjab Legislative Assembly.  One of the  grounds  in  the
said election petition is that the respondent obtained the assistance  of  a
public officer, thereby committing a corrupt practice under Section 123  (7)
of the R.P. Act.   One  of  the  issues  framed  was  whether  the  election
petition lacked material facts and, therefore, did not  disclose  any  cause
of action.  The High  Court  found  the  said  issue  against  the  election
petitioner.  On appeal, this Court  reversed  the  conclusion  of  the  High
Court, holding as follows:
          “13. Having gone through the contents of the election petition, we
          are satisfied that the High Court has not been right in  directing
          the petition to be  dismissed  at  the  threshold  by  forming  an
          opinion that the averments made  in  the  election  petition  were
          deficient in material facts. It is not necessary  to  burden  this
          judgment with reproduction of the several averments  made  in  the
          election petition. The High Court has already done  it.  The  test
          laid down in the several authorities referred to  hereinabove  and
          in  particular  in  the  case  of  Raj  Narain  (supra)  is  fully
          satisfied. The grounds of corrupt practice and the facts necessary
          to formulate a complete cause of action have been stated.”

While arriving at such a conclusion, this Court relied upon Raj  Narain  vs.
Smt. Indira Nehru Gandhi and another, (1972) 3 SCR 841.   At  para  9,  this
Court ‘summarised’ the principles  emanating  from  Raj  Narain  (supra)  as
follows:

          “9. Some of the principles elaborated in Raj Narain v. Smt. Indira
          Nehru Gandhi and Anr.  [1972]  3SCR841  ,  are  relevant  for  our
          purpose. Dealing with the corrupt practice, the Court held that :


          (i) While a corrupt practice has got to  be  strictly  proved,  it
          does not follow that a pleading in an election  proceeding  should
          receive a strict construction. Even a defective  charge  does  not
          vitiate a criminal trial unless it is proved  that  the  same  has
          prejudiced the accused. If a pleading on a reasonable construction
          could  sustain  the  action,  the   court   should   accept   that
          construction. The courts are reluctant to frustrate an  action  on
          technical grounds.


          (ii) The charge of corrupt practice in an election petition  is  a
          very serious charge and has to be proved. It may  or  may  not  be
          proved. The allegations may be ultimately proved  or  not  proved.
          But the question for the courts is whether a petitioner should  be
          refused an opportunity to prove those allegations  merely  because
          the petition was drafted clumsily. Opportunity to prove should not
          be refused.


          (iii) If the allegations made in an election petition regarding  a
          corrupt practice do not disclose  the  constituent  parts  of  the
          corrupt practice alleged, the same  will  not  be  allowed  to  be
          proved and those allegations cannot be amended after the period of
          limitation for filing an election  petition,  but  the  court  may
          allow particulars of any corrupt practice alleged in the  petition
          to be amended or amplified.

          "Material facts" in Section 83 of  the  Representation  of  People
          Act, 1951 shows that the ground of corrupt practice and the  facts
          necessary to formulate a complete cause of action must be  stated.
          The function of the particulars is to present a  full  picture  of
          the cause of action so as to make the  opposite  party  understand
          the case he has to meet. Under Section 86(5) of the Representation
          of People Act if the corrupt practice is alleged in  the  petition
          the particulars  of  such  corrupt  practice  may  be  amended  or
          amplified.

          (iv) An election petition is not liable to be dismissed in  limine
          because full particulars of corrupt practice alleged were not  set
          out. If an objection was taken and the Tribunal was  of  the  view
          that full particulars have not been set out, the petitioner :  has
          to be given an opportunity to amend or amplify the particulars. It
          is only in the event of non-compliance with such order  to  supply
          the particulars, that the charge which  remained  vague  could  be
          struck down.”

28.         Raj  Narain  and  Indira  Gandhi  contested  from  Rae  Bareilly
constituency in the General Election to the Lok Sabha held in  March,  1971.
Raj Narain lost the election and challenged the election of  Indira  Gandhi.
After the issues were framed in the election petition,  an  application  was
filed by Indira Gandhi to strike out issues No. 1 to 3 therein.  Raj  Narain
filed an application to amend the election petition.   His  application  was
rejected and the application of Indira Gandhi was allowed by the High  Court
on the ground that he was seeking to add material facts  beyond  the  period
of limitation for filing the election  petition.   Raj  Narain  carried  the
matter to this Court.  This court examining the question  whether  the  High
Court was justified in striking  out  of  the  first  issue,  i.e.,  whether
Indira Gandhi obtained the assistance of Yashpal Kapur, a  gazetted  officer
in the service of the Government of India, in furtherance of  the  prospects
of her election, held as follows:
           “10. The appellant's contention is that the respondent after she
           became a candidate in the  election  in  question  obtained  the
           services of Yashpal Kapur when he was still a  gazetted  officer
           in the Government of India for the furtherance of the  prospects
           of her election. In order to establish that plea, he must  plead
           and prove:
           (1) That the respondent obtained the assistance of Yashpal Kapur
           when he was a gazetted officer;
           (2) That the assistance obtained by her was for the  furtherance
           of the prospects of her election and
           (3) That  she  obtained  that  assistance  after  she  became  a
           candidate.”
                                                           Emphasis Supplied
And at para 13, this Court recorded that in order  to  establish  his  plea,
Raj Narain had to  establish  that  the  assistance  of  Yashpal  Kapur  was
obtained when he was still a government servant and  at  the  time  such  an
assistance was obtained Indira Gandhi had become a  candidate.   This  Court
after examining the relevant averments of the election petition, which  were
extracted in extenso, recorded a finding that the election petition  nowhere
stated as to when Indira Gandhi had become a candidate.   It  was,  in  this
context, this Court observed at para 16 as under:
           “………………..  But if the petition is read reasonably, as it  should
           be, it is clear that the allegation of the  petitioner  is  that
           the service of Yashpal Kapur were  obtained  by  the  respondent
           when she had already become a candidate and when she so obtained
           his assistance, Yashpal Kapur was still a gazetted  officer.  It
           is true that one of the  ingredients  of  the  corrupt  practice
           alleged i.e. that when the respondent obtained the assistance of
           Kapur, she was a candidate is not specifically set  out  in  the
           petition but from the allegations made; it flows as a  necessary
           implication. While a corrupt practice has  got  to  be  strictly
           proved but from that it does not follow that a  pleading  in  an
           election proceeding should receive a strict  construction.  This
           Court has held that even a defective charge does not  vitiate  a
           criminal trial unless it is proved that the same has  prejudiced
           the accused. If a pleading on a  reasonable  construction  could
           sustain the action, the court should accept  that  construction.
           The courts are reluctant to frustrate  an  action  on  technical
           grounds. The charge of corrupt practice in an election is a very
           serious charge. Purity of election is the very essence  of  real
           democracy. The  charge  in  question  has  been  denied  by  the
           respondent. It has yet to be  proved.  It  may  or  may  not  be
           proved. The allegations made by the appellant may ultimately  be
           proved to be wholly devoid of truth. But the question is whether
           the appellant should be refused  an  opportunity  to  prove  his
           allegations? Should the  Court  refuse  to  enquire  into  those
           allegations merely because the appellant or someone who prepared
           his brief did not know the language  of  the  law.  We  have  no
           hesitation in answering those questions  in  the  negative.  The
           implications of the rule of law are manifold.”

All that this Court held is that the particulars of a corrupt  practice  can
be supplied by amendment provided that  the  basic  facts  constituting  the
corrupt practice are pleaded. This Court held in Raj Narain (supra):
          “It is true that one of the ingredients of  the  corrupt  practice
          alleged i.e. that when the respondent obtained the  assistance  of
          Kapur, she was a candidate is not  specifically  set  out  in  the
          petition but from the allegations made; it flows  as  a  necessary
          implication.”

The fact that Indira Gandhi was a  candidate  at  the  election  in  dispute
would be a logical implication of the fact that it was her  election,  which
was under challenge.  The observations were not meant  to  dilute  the  long
established principles of  pleadings  in  the  election  disputes  but  were
limited to the context.
29.         This Court  in  Sardar  Harcharan  Singh  Brar  (supra),  in  my
opinion, also came to the same conclusion.   Principle  No.(iii)  stated  in
para 9 of Sardar Harcharan Singh Brar (supra) makes it abundantly clear.
30.         In my opinion, the election petition on  hand  hopelessly  lacks
in stated the material facts  constituting  the  various  corrupt  practices
mentioned in the election petition to enable the declarations sought by  the
election petitioner.  The conclusion recorded by the High  Court  (extracted
at para 27 supra) that;


           “It is true that the allegations suffer  from  lack  of  certain
           material particulars particularly  as  to  the  consent  of  the
           returned candidate or his election agent.   ……….”

In my opinion is wholly erroneous in law.  Consent by the candidate  or  his
election agent is an essential  material  fact,  which  is  required  to  be
pleaded and proved when the allegation  is  that  somebody  other  than  the
candidate or his election agent committed a corrupt practice.  The  election
petition on hand, in my opinion, is incapable of being  read  as  disclosing
any cause of action on the basis of any known cannon  of  interpretation  of
documents  -  whether  a  rule  of  reasonable  construction  or  any  other
construction.  In view of the conclusion reached above, I do not propose  to
examine the other submissions regarding the legal fact of the non-filing  of
an affidavit in Form  No.25  and  absence  of  proper  verification  of  the
pleadings and annexures.
31.         I may also mention here that though the learned counsel for  the
election petitioner did not bring  to  our  notice  (obviously  he  was  not
briefed in  this  regard),  Dr.  Rajeev  Dhawan,  learned  counsel  for  the
returned candidate placed before us a photocopy of  an  application  seeking
the amendment of the election petition pursuant to  the  directions  of  the
High  Court.   I  do  not  propose  to  examine  the  content  of  the  said
application except to take note of the fact that the same  appears  to  have
been presented on 02-05-2011.  Even otherwise, any such  application  could,
obviously, have been filed only after  05-10-2009,  which  is  the  date  of
Judgment under appeal.  In  view  of  the  fact  that  the  results  of  the
election in question were declared on 08-12-2008, the application was  filed
beyond the period of limitation prescribed under the R.P. Act, to  challenge
the election.  In view of my  conclusion  that  the  election  petition,  as
originally presented, did  not  contain  the  necessary  material  facts  to
constitute the cause of action to challenge the  election  of  the  returned
candidate, the abovementioned application filed by the election  petitioner,
even if it contain the necessary material facts, cannot  be  allowed  as  it
would amount to permitting the amendment of  the  election  petition  beyond
the period of limitation.
32.         I, therefore, not only grant  leave  in  the  S.L.P.,  but  also
allow the appeal and dismiss the election petition.

                                                            ………………………………….J.
                                                          ( J. CHELAMESWAR )
New Delhi;
May 3, 2012.

-----------------------
[1]    41. Disqualification for being an election agent.- Any person who  is
  for the time being disqualified under the Constitution or under this  Act
  for being a member of either House of Parliament or the House  or  either
  House of the Legislature of a State or for voting at elections, shall, so
  long as the disqualification subsists, also be disqualified for being  an
  election agent at any election.

[2]    40. Election Agents.- A candidate at an election may appoint  in  the
  prescribed manner any one person other than himself to  be  his  election
  agent and when any such appointment is made, notice  of  the  appointment
  shall be given in the prescribed manner to the returning officer.
[3]    46. Appointment of polling agents.- A  contesting  candidate  or  his
  election agent may appoint in the prescribed manner such number of agents
  and relief agents as may be prescribed to act as polling agents  of  such
  candidate at each polling station provided under section  25  or  at  the
  place fixed under sub-section (1) of section 29 for the poll.

[4]    47. Appointment of counting agents.- A contesting  candidate  or  his
  election agent may appoint in the prescribed manner one or more  persons,
  but not exceeding such number as may be prescribed, to the present as his
  counting agent or agents at the counter  of  votes,  and  when  any  such
  appointment is made notice of the  appointment  shall  be  given  in  the
  prescribed manner to the returning officer.
[5]    see Kunwar Nripendra Bahadur Singh vs. Jai Ram Verma and others =
  (1977) 4 SCC 153 :
      25. Thus in a catena of cases this Court has  consistently  taken  the
view that the finality of the electoral roll  cannot  be  challenged  in  an
election petition even if certain irregularities  had  taken  place  in  the
preparation of the electoral roll  or  if  subsequent  disqualification  had
taken place and the electoral roll had on  that  score  not  been  corrected
before the last  hour  of  making  nominations.  After  that  dead-line  the
electoral roll of a constituency cannot be interfered with and  no  one  can
go  behind   the   entries   except   for   the   purpose   of   considering
disqualification under Section 16 of the 1950 Act.
      26. The election could be set aside only on the grounds  mentioned  in
Section 100 of the 1951 Act. In this case reliance was placed under  Section
100(1)(d)(iii) for invalidating the election on the ground of  reception  of
void votes. We have already shown that the  electoral  roll  containing  the
particular names of voters was valid and there is,  therefore,  no  question
of reception of any vote which was void. There is,  thus,  no  substance  in
that ground for challenging the election.


-----------------------
53




GOVT. WORKS CONTRACT BIDS – VALIDITY – This appeal arises out of an order passed by the High Court of Madhya Pradesh at Indore whereby Writ Petition No.3427 of 2011 filed by the appellant was dismissed and the allotment of the project work involving design, construction and commissioning of a single integrated water supply at Sendhwa (Madhya Pradesh) in favour of M/s P.C. Snehal Construction Company-respondent No.2 upheld. The High Court has, while examining the question of eligibility of respondent No.2 by reference to the execution of the single integrated water supply scheme, recorded a finding that the nature of the work executed by respondent No.2 for Upleta satisfied the requirement of the tender notice. That finding, in our view, is in no way irrational or absurd. We say so because the certificate relied upon by respondent No.2 sufficiently demonstrates that respondent No.2 had designed, and executed an integrated water supply scheme for Upleta which included raw water transmission from intake wells and transmission of treated clear water from WTP including providing, supplying and laying of pipelines, construction of E.S.R.s, Sumps, Pump houses and providing erecting pumping machinery. 19. It is also noteworthy that in the matter of evaluation of the bids and determination of the eligibility of the bidders Municipal Council had the advantage of the aid & advice of an empanelled consultant, a technical hand, who could well appreciate the significance of the tender condition regarding the bidder executing the single integrated water supply scheme and fulfilling that condition of tender by reference to the work undertaken by them. We, therefore, see no reason to interfere with the view taken by the High Court of the allotment of work made in favour of respondent No.2. 20. We may while parting point out that out of a total of Rs.19.5 crores representing the estimated value of the contract, respondent No.2 is certified to have already executed work worth Rs.11.50 crores and received a sum of Rs.8.79 crores towards the said work. More importantly the work in question relates to a drinking water supply scheme for the residents of a scarcity stricken municipality. The project is sponsored with the Central Government assistance under its urban infrastructure scheme for small and middle towns. The completion target of the scheme is September 2012. Any interference with the award of the contract at this stage is bound to delay the execution of the work and put the inhabitants of the municipal area to further hardship. Interference with the on-going work is, therefore, not conducive to public interest which can be served only if the scheme is completed as expeditiously as possible giving relief to the thirsting residents of Sendhwa. This is particularly so when the allotment of work in favour of respondent No.2 does not involve any extra cost in comparison to the cost that may be incurred if the contract was allotted to the appellant-company. 21. In the light of the above settled legal position and in the absence of any mala fide or arbitrariness in the process of evaluation of bids and the determination of the eligibility of the bidders, we do not consider the present to be a fit case for interference of this Court. This appeal accordingly fails and is hereby dismissed with cost assessed at Rs.25,000/- .


                                                   REPORTABLE

                         IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                    CIVIL APPEAL NO.    4195     of 2012
                 (Arising out of S.L.P. (C) No.16175 of 2011




Tejas Constructions &
Infrastructure Pvt. Ltd.                                      …Appellant



                 Versus

Municipal Council, Sendhwa & Anr.            …Respondents









                               J U D G M E N T

T.S. THAKUR, J.

1.    Leave granted.




2.    This appeal arises out of an order passed by the High Court of  Madhya
Pradesh at Indore whereby  Writ  Petition  No.3427  of  2011  filed  by  the
appellant was dismissed and the allotment  of  the  project  work  involving
design, construction and commissioning of a single integrated  water  supply
at Sendhwa (Madhya Pradesh)  in  favour  of  M/s  P.C.  Snehal  Construction
Company-respondent No.2 upheld.

3.    In terms of notice inviting tenders (NIT for short) Municipal  Council
Sendhwa, in the State of M.P., invited  tenders  from  eligible  contractors
for the construction of an Integrated Water Supply Scheme  at  an  estimated
cost of nearly rupees twenty crores. Clause (1) of the said NIT  as  amended
by addendum dated 23rd  March,  2011,  stipulated  the  following  essential
conditions of eligibility for the intending bidders:

         “1.      Registered Contractors have to produce valid  Registration
             certificate in the  category  of  S-V  or  equivalent  in  any
             State/Central Government Department or Government undertaking.

         a)    Registered Contractors/Firms of  Repute/Joint  Venture  firms
            have  to  produce  certificate  for  executing  single  work  of
            integrated  water  supply  scheme  comprising  of  intake  well,
            raw/clear water pumping main, pumps, OHTS,  Distribution  system
            completed and running  successfully  at  present,  having  value
            equal to 60% of the cost of the proposed works in last 5  years.
            This certificate should  clearly  mention  amount  of  contract,
            completion period as per Tender and  actual  completion  period.
            (In case of WPI adjustment for cost of works  the  same  may  be
            furnished along with a  certificate  of  Chartered  Accountant).
            The certificate shall be issued from the officer not  below  the
            rank of Executive Engineer or equivalent.

         b)    Certified copy of audited  balance  sheet  of  last  5  years
            showing annual turnover equal to estimated cost of the work  and
            average net worth equal to 40% of the cost of works.”



4.    In response to the above NIT several  applications  were  received  by
respondent No.1 for purchase of the tender forms.  It is common ground  that
only six out of the said applicants eventually participated in  the  pre-bid
meeting arranged by respondent No.1. It is also not in dispute that  out  of
the said six bidders only four were eventually found to be  eligible.  These
four included the appellant-Tejas Construction &  Infrastructure  Pvt.  Ltd.
and respondent No.2-M/s P.C. Snehal Construction Company, Ahmedabad.

5.    The tender conditions, inter alia, provided  that  the  bid  documents
shall comprise three envelopes to be  submitted  by  each  of  the  bidders.
Envelope A was to contain the earnest money deposited,  Envelope  B  was  to
contain the technical bid including qualification documents  while  Envelope
C was to contain the price bid of the bidders.  The  process  of  evaluation
of the bids started on 7th April, 2011 with the opening of envelopes in  the
above order. Opening of envelope A was uneventful as  all  the  bidders  had
furnished  the  earnest  money  stipulated  under  the  terms  of  NIT.  The
appellant’s case, however, is that when envelope B was opened a request  was
made to respondent No.1 to show the technical bid received  from  respondent
No.2 which request was granted. The appellant’s further case  is  that  upon
perusal of the technical bid of respondent No.2, the  appellant  had  raised
an objection as to the eligibility of the said to  participate  in  the  bid
process on the ground that it did  not  have  the  requisite  experience  of
executing a single integrated water supply scheme of  the  requisite  value.
Respondent No.2 is said to have claimed eligibility to offer a  bid  on  the
basis of clubbing of different water supply scheme  projects  at  Vyara  and
Songadh which was impermissible according to the  appellant.  The  appellant
also raised an  objection  to  the  effect  that  respondent  No.2  had  not
submitted certified copies of  audited  balance-sheets  for  the  last  five
years  and  that  the  net-worth  certificate  produced  from  a   Chartered
Accountant for the financial  year  2010-2011,  did  not  according  to  the
appellant, satisfy the said requirement. Despite  the  objection  raised  by
the appellant, respondent No.1 considered all the bids and accepted the  bid
offered by respondent No.2. The appellant appears  to  have  approached  the
concerned authorities in Gujarat and obtained a certificate  to  the  effect
that Vyara and Songadh projects  were  two  different  projects  and  not  a
single integrated  water  supply  scheme  and  based  thereon  dispatched  a
telegram to respondent No.1 asking for  rejection  of  the  bid  offered  by
respondent No.2, but to no avail.

6.    Aggrieved by the allotment of work in favour of respondent  No.2,  the
appellant filed Writ Petition No.3427 of 2011 before  the  Indore  Bench  of
the High Court of Madhya  Pradesh.  The  challenge  to  the  eligibility  of
respondent No.2 and eventually to the allotment of the project work  to  the
said respondent in the Writ Petition was confined to two  distinct  grounds,
namely (1) that respondent  No.2  had  not  filed  the  requisite  certified
balance-sheets for five years immediately  preceding  the  issue  of  tender
notice and (2) that respondent No.2 did not have  the  requisite  experience
of executing a single integrated water supply scheme of the required value.

7.    The Writ Petition was opposed  by  the  respondents  who  asserted  in
their respective affidavits that  requirement  of  submission  of  requisite
balance-sheets was substantially complied with inasmuch as certified  copies
of the balance-sheets for four years had been filed but since the audit  for
the fifth year i.e.  2010-2011  had  not  been  completed,  the  certificate
issued by the Chartered Accountant for the said year  sufficiently  complied
with the  said  requirement.  It  is  also  asserted  that  respondent  No.2
satisfied the requirement of having executed single integrated water  supply
scheme for Upleta which included raw water  transmission  from  intake  well
and transmission of  treated  clear  water  from  WTP  including  providing,
supplying and laying of pipelines,  construction  of  E.S.R.s,  Sumps,  Pump
houses and  providing  and  erecting  pumping  machinery.   The  certificate
issued by the Upleta Municipal Council and by the Gujarat Urban  Development
Mission (GUDM) was relied upon in support of  that  claim.  The  High  Court
has, by the judgment and order under challenge before us, examined both  the
grounds urged in support of the  writ  petition  and  clearly  come  to  the
conclusion that respondent No.2 was eligible to offer a bid in  as  much  as
it had substantially complied with the requirement of filing  the  certified
copies of audited balance-sheets for  the  previous  period  of  five  years
immediately preceding the issue  of  tender  notice  and  that  it  had  the
requisite experience of executing a single integrated water  supply  project
of the requisite value.

8.    We have heard learned counsel for the parties at considerable  length.
A challenge to the award of the project work in favour  of  respondent  No.2
involved judicial  review  of  administrative  action.  The  scope  and  the
approach to be adopted in the process of any such review, has  been  settled
by a long line of decisions of this Court. Reference of all  such  decisions
is in our opinion is unnecessary as the principle  of  law  settled  thereof
are fairly well recognised by now. We may, therefore, refer to some  of  the
said decisions only to recapitulate and  refresh  the  tests  applicable  to
such cases and the approach which a Writ Court has to adopt while  examining
the validity of an action questioned before it.

9.    In Tata Cellular v. Union of  India  (1994)  6  SCC  651,  this  Court
emphasized the  need  to  find  the  right  balance  between  administrative
discretion to decide matters on the one hand and  the  need  to  remedy  any
unfairness on the other and observed:


         “(1)  The  modern   trend   points   to   judicial   restraint   in
         administrative action.


         (2) The court does not sit as a court of appeal but merely  reviews
         the manner in which the decision was made.


         (3)  The  court  does  not  have  the  expertise  to  correct   the
         administrative,  decision.  If  a  review  of  the   administrative
         decision is permitted it will be  substituting  its  own  decision,
         without the necessary expertise, which itself may be fallible.


         (4) The terms of  the  invitation  to  tender  cannot  be  open  to
         judicial scrutiny because the invitation to tender is in the  realm
         of contract.


         (5) The Government must have freedom of contract. In other words, a
         fair  play  in  the  joints  is  a  necessary  concomitant  for  an
         administrative body functioning  in  an  administrative  or  quasi-
         administrative sphere. However, the decision can be tested  by  the
         application of the "Wednesbury principle" of reasonableness and the
         decision should be free from arbitrariness, not affected by bias or
         actuated by mala fides.


         (6) Quashing decisions may impose heavy  administrative  burden  on
         the  administration  and   lead   to   increased   and   unbudgeted
         expenditure.”





10.   In Raunaq International Limited v. I.V.R.  Construction  Ltd.  &  Ors.
(1999) 1 SCC  492,   this  Court  reiterated  the  principle  governing  the
process of judicial review and  held  that  the  Writ  Court  would  not  be
justified in interfering with commercial transactions in which the State  is
one of the parties to the same except  where  there  is  substantial  public
interest involved and in cases where  the  transaction  is  mala  fide.  The
court observed:

         “10. What are these elements of public interest? (1)  Public  money
         would be expended for the purposes of the contract. (2)  The  goods
         or services which are being commissioned  could  be  for  a  public
         purpose, such as, construction of roads,  public  buildings,  power
         plants or other public utilities. (3) The public would be  directly
         interested in the timely fulfilment of the  contract  so  that  the
         services become available to  the  public  expeditiously.  (4)  The
         public would  also  be  interested  in  the  quality  of  the  work
         undertaken or goods supplied by the tenderer. Poor quality of  work
         or goods can lead to tremendous  public  hardship  and  substantial
         financial outlay either in correcting  mistakes  or  in  rectifying
         defects or even  at  times  in  redoing  the  entire  work  —  thus
         involving  larger  outlays  of  public  money  and   delaying   the
         availability of services, facilities or goods,  e.g.,  a  delay  in
         commissioning a power project, as in the present case,  could  lead
         to power shortages, retardation of industrial development, hardship
         to the general public and substantial cost escalation.


         11. When a writ petition is filed in the High Court challenging the
         award of a contract by a public authority or the State,  the  court
         must be satisfied that there is some  element  of  public  interest
         involved in entertaining such a  petition.  If,  for  example,  the
         dispute is purely between two tenderers, the  court  must  be  very
         careful to see if there is any element of public interest  involved
         in the litigation. A mere difference in the prices offered  by  the
         two tenderers may or may not be decisive in  deciding  whether  any
         public interest is involved in intervening  in  such  a  commercial
         transaction. It  is  important  to  bear  in  mind  that  by  court
         intervention, the proposed project may be considerably delayed thus
         escalating the cost far more than any saving which the court  would
         ultimately effect in public money by deciding the dispute in favour
         of one tenderer or the other tenderer. Therefore, unless the  court
         is satisfied that there is a substantial amount of public interest,
         or the transaction is entered into mala fide, the court should  not
         intervene  under  Article  226  in  disputes  between   two   rival
         tenderers.”




11.   In Reliance Airport Developers  (P)  Ltd.  v.  Airports  Authority  of
India & Ors.  (2006)  10 SCC 1, this Court held that while  judicial  review
cannot be denied in contractual matters or matters in which  the  Government
exercises its  contractual  powers,  such  review  is  intended  to  prevent
arbitrariness and must be exercised in larger public interest.

12.   Reference may also be made  to  Sterling  Computers  Ltd.  v.  M  &  N
Publication Ltd. (1993) 1 SCC 445  where  this  Court  held  that  power  of
judicial review in respect of contracts entered into on behalf of the  State
primarily involves  examination  of  the  question  whether  there  was  any
infirmity in the decision-making process if  such  process  was  reasonable,
rational  and  non-arbitrary,  the  Court  would  not  interfere  with   the
decision. In Air India Ltd. v. Cochin  International  Airport  Ltd.  &  Ors.
(2000) 2 SCC 617, this Court held that award of contract  was  essential  in
commercial transactions which involves commercial consideration and  results
in commercial decision. While taking such decision the State can choose  its
own method on terms of invitation to tender  and  enter  into  negotiations.
The following passage from the decision is apposite:

         “The award of contract, whether it is by a private party  or  by  a
         public body or the State, is essentially a commercial  transaction.
         In arriving at a commercial decision considerations  which  are  of
         paramount are commercial considerations. The State can  choose  its
         own method to arrive at a decision. It can fix  its  own  terms  of
         invitation to tender and that is not open to judicial scrutiny.  It
         can enter into negotiations before finally deciding to  accept  one
         of the offers made to  it.  Price  need  not  always  be  the  sole
         criterion for  awarding  a  contract.  It  is  free  to  grant  any
         relaxation, for bona fide reasons, if the tender conditions  permit
         such a relaxation. It may not  accept  the  offer  even  though  it
         happens to be the  highest  or  the  lowest.  But  the  State,  its
         corporations, instrumentalities and agencies are bound to adhere to
         the norms, standards and procedures laid down by  them  and  cannot
         depart from them arbitrarily. Though that decision is not  amenable
         to judicial review, the  Court  can  examine  the  decision  making
         process and interfere if  it  is  found  vitiated  by  mala  fides,
         unreasonableness and arbitrariness.

         Even when some defect is found in the decision-making  process  the
         Court must exercise its discretionary power under Article 226  with
         great caution and should exercise it only in furtherance of  public
         interest and not merely on the making out of  a  legal  point.  The
         Court should always keep the larger  public  interest  in  mind  in
         order to decide whether its intervention is called for or not. Only
         when it comes to a conclusion  that  overwhelming  public  interest
         requires interference, the Court should intervene.”




13.   To the same effect is the decision of  this  Court  in  Master  Marine
Services (P) Ltd. v. Metcalfe & Hodgkinson (P) Ltd. & Ors. (2005) 6 SCC  138
and Jagdish Mandal v. State of Orissa (2007) 14 SCC  517  where  this  Court
laid down the following tests  for  judicial  interference  in  exercise  of
power of judicial review of administrative action:


         “Therefore, a court before interfering  in  tender  or  contractual
         matters in exercise of power of judicial  review,  should  pose  to
         itself the following questions :


         i) Whether the process adopted or decision made by the authority is
         mala fide or intended to favour someone.


         OR


         Whether the process adopted or decision made is  so  arbitrary  and
         irrational that the court can say : 'the decision is such  that  no
         responsible authority acting  reasonably  and  in  accordance  with
         relevant law could have reached.'


         ii) Whether public interest is affected.

         If the answers are in the negative, there should be no interference
         under Article 226.”




14.   Let us examine the challenge to the award of the  contract  in  favour
of respondent No.2 in the  light  of  the  above  legal  position.   In  the
earlier part of this judgment the challenge to the allotment of the work  in
question was primarily based on a  two-fold  contention.   Firstly,  it  was
argued that respondent  No.2,  successful  bidder,  had  not  satisfied  the
requirement of filing audited balance sheets for the  five  years  preceding
award of the contract. That the said respondent had filed  certified  copies
of the audited balance sheets for the years 2006-07,  2007-08,  2008-09  and
2009-10, was not in dispute. What was disputed was that  the  balance  sheet
for the year 2010-11 had not been filed,  instead  a  certificate  from  the
Chartered  Accountant  concerned,  relating  to  the  period   1.4.2010   to
22.3.2011,  had  been  produced  which  did  not,  according  to  the  writ-
petitioner before us, satisfy the requirement of the  NIT.   Rejecting  that
contention the High Court held that since the balance  sheet  for  the  year
2010-11 had not been audited  the  production  of  relevant  record  of  the
company was a substantial compliance with the stipulation contained  in  the
NIT. The High Court observed:

         “As regards audited balance sheet, it has not  been  disputed  that
         respondent No.2 submitted audited balance sheets for years 2006-07,
         2007-08,  2008-09  and  2009-2010.  Respondent  No.2  has   further
         submitted certificate issued by its Chartered Accountant in respect
         of period from 1.4.2010 to 22.3.2011. Certificate is  at  page  66,
         which has been issued on the basis  of  audited  books,  documents,
         registers, records, bills and  evidences  produced  before  it  for
         verification.  Certificate is dated 23.3.2011. It has been  pointed
         out  by  Shri  Vijay  Assudani,  learned  advocate  appearing   for
         respondent No.2 that by that time, the financial year  2010-11  was
         not complete and it was not possible to obtain  certified  copy  of
         the audited balance sheet. It could not be disputed  on  behalf  of
         the petitioner that the turnover as shown  in  the  certificate  of
         Chartered Accountant and other documents for last five  years,  was
         meeting the requirement as per the NIT. Further, it is not the case
         of the petitioner that the particulars and the figures mentioned in
         the certificate are incorrect.  Petitioner, by virtue  of  Sections
         159 and 163 of the Companies Act,  could  have  obtained  certified
         copy  of  balance  sheets  of  respondent   No.2   to   demonstrate
         incorrectness, if any.  The petitioner, having not chosen to  place
         any  such  documents  on  record,  cannot  successfully  raise  any
         objection, when there is  substantial  compliance  of  the  NIT  in
         relation to turnover.

                 xxx              xxx              xxx

             Audit for the year 2010-11 was not  completed  by  that  time.
         However, certificate was issued on the basis of  the  audit  books,
         documents, register, records, bills and evidences  produced  before
         the  Chartered  Accountant  for  verification.   This  amounts   to
         substantial compliance of the requirement with regard to submission
         of certified copy of balance sheet, more so, the petitioner himself
         could have obtained copies of audited balance sheet  of  respondent
         No.2 and could have demonstrated incorrectness. It is not the  case
         of the petitioner  that  the  said  certificate  depicts  incorrect
         turnover or net worth.  This  being  so,  the  process  adopted  by
         respondent No.1 cannot be said  to  be  arbitrary  or  irrational.”






15.   There is, in our opinion, no legal flaw in the above  finding  or  the
line of reasoning adopted by the High Court. It is true  that  the  date  of
submission of tender was initially fixed upto 25th March, 2011 but the  same
was extended upto 7th April,  2011.  That  being  so,  5  years  immediately
preceding the issue of the tender notice would have included the year  2010-
2011 also for which financial year, audit of the company’s  books,  accounts
and documents had not been completed. Such being the case,  respondent  No.2
could not possibly comply with the  requirement  of  the  tender  notice  or
produce certified copy of the audited balance-sheet for the said  year.  All
that it could possibly do was to obtain a certificate based on the  relevant
books, registers, records accounts etc., of the company,  which  certificate
was indeed produced by the said  respondent.  The  High  Court  has  rightly
observed that  the  appellant  had  not  disputed  the  correctness  of  the
turnover certified by the Chartered Accountant for the  year  2010-2011  nor
was it disputed that the  same  satisfied  the  requirement  of  the  tender
notice. In that view, therefore, there was no question  of  respondent  No.2
being ineligible  or  committing  a  deliberate  default  in  producing  the
requisite documents to establish its eligibility to offer a bid.  The  first
limb of the challenge to the finding of the High Court on the  above  aspect
must, therefore, fail and is accordingly rejected.

16.   That  leaves  us  with  the  second  ground  on  which  the  appellant
questioned the eligibility of respondent No.2 to offer a  bid,  namely,  the
non-execution by respondent No.2 of a single integrated water supply  scheme
for the requisite value. The appellant’s case, in this connection,  is  two-
fold.  Firstly, it is contended that the works executed by  respondent  No.2
for Vyare and Songadh were  distinct  and  different  works  which  did  not
constitute a single integrated  water  supply  scheme  hence  could  not  be
pressed into service to show satisfaction of the  condition  of  eligibility
stipulated under the tender  notice.  The  alternative  submission  made  by
learned counsel appearing for the appellant in connection with  this  ground
is that the work executed  by  respondent  No.2  for  Upleta  also  did  not
satisfy the requirement of the tender notice inasmuch as the said  work  did
not involve the construction of intake wells, which was  an  essential  item
of work for any integrated water supply scheme. In  the  Counter  Affidavits
filed by the Municipal Council and respondent No.2, the contention that  the
latter was not eligible on the ground  stated  by  the  appellant  has  been
stoutly denied.  Respondent-Council has, inter alia, stated:

         “To satisfy this condition, respondent no.2 has  placed  on  record
         the  certificate  issued  by  Municipal  Council  Upleta,   whereby
         respondent No.2 was awarded construction of similar  work  and  has
         completed the work on 15.8.2010 for  a  sum  of  Rs.14,96,78,721/-.
         Not merely this, to show his experience, respondent No.2 has  filed
         various certificates relating  to  work  at  Bardoli,  as  well  as
         certificate  issued   by   Gujarat   Urban   Development   Mission,
         demonstrating that he has undertaken the work of 87,21,36,172/-  of
         the similar/somewhat similar nature.

         In this regard it is worth noticing that the only requirement under
         this clause was to have executed single work  of  integrated  water
         supply scheme having above referred components in it and it was not
         at  all  necessary  for  a  bidder  to  have  constructed  all  the
         components himself but he could have used the existing  components,
         as such it is inconsequential as to  whether  respondent  No.2  has
         infact constructed intake well and water treatment plant in Upleta,
         but it is of utmost importance that  Respondent  No.2  should  have
         experience of having executed integrated water supply scheme.”




17.   To the same effect is the case set  up  by  respondent  No.2  who  has
stated as under:

         “I say and submit  that  the  only  requirement  as  per  the  said
         eligibility condition  was  to  have  executed  a  single  work  of
         integrated water supply scheme comprising of  all  the  components,
         such as intake well, raw/clean water, pumping  main,  pumps,  water
         treatment plants, over head tanks, distribution system etc., but it
         was not necessary for the bidder to have  himself  constructed  all
         the components of integrated water supply scheme.  As such to  show
         his experience in the said matter, respondent No.2 also has  placed
         on record certificate issued by Bardoli Nagar Seva Sadan, (Annexure
         P/10 Page 78 of SLP), wherein respondent No.2 has constructed water
         treatment plant of 13.5 MLD capacity………………”

         They have carried out the  work  of  integrated  water  supply  for
         Upleta Municipal Council for a sum of  Rs.14.97  crores,  similarly
         respondent No.2 have also carried augmentation water supply  scheme
         for Bardoli Incorporation Seva Sadan of Rs.4.35 crores,  integrated
         drinking water supply scheme for Vyara project of  Rs.6.84  crores,
         Unjha Water  Supply  Project  of  Rs.13.19  crores,  Jaitpur  Water
         Project Rs. 16.25 crores, Songarh Integrated Drinking Water  Supply
         Scheme Rs.5.21 crores, Vapi Water Works of Rs.4.00 crores,  Jasadan
         Water Suppply Scheme of Rs.3.05 crores, Rajula Water Supply  Scheme
         of Rs.3.83 crores, Idar Water  Supply  Scheme  of  Rs.4.74  crores,
         Viramgam Water Supply Project Rs.6.92 crores, Amreli City  Pipeline
         Distribution Work Rs.6.49 crores, thus  the  respondent  No.2  have
         executed works of similar nature of Rs.87.21  crores,  whereas  the
         present work was for only Rs.20.80 crores, additionally  respondent
         No.2 is executing similar work of about Rs.40.50 crores at  Dholka,
         Dhandhuka,  Ankleshwar,  Gondal,  Jasdan  and  Dhorangdhra.    Thus
         respondent No.2 is competent to execute the present work, a copy of
         list of works executed  by  respondent  No.2  under  Gujarat  Urban
         Development Mission duly certified by the G.M. (Technical) of  said
         organization are already annexed as Annexure P/8 (Page 69 of  SLP).
         It is worth mentioning here that  average  turnover  of  respondent
         No.2 during last 5 years ignoring figures of  2010-11  is  Rs.45.14
         crores and average net worth of respondent No.2 for  last  5  years
         ignoring figures of 2010-11 is Rs. 9.018 crores.”







18.   The High Court has, while examining the  question  of  eligibility  of
respondent No.2 by reference to  the  execution  of  the  single  integrated
water supply scheme,  recorded  a  finding  that  the  nature  of  the  work
executed by respondent No.2 for Upleta  satisfied  the  requirement  of  the
tender notice. That finding, in  our  view,  is  in  no  way  irrational  or
absurd. We say so because the certificate relied  upon  by  respondent  No.2
sufficiently demonstrates that respondent No.2 had  designed,  and  executed
an integrated water supply  scheme  for  Upleta  which  included  raw  water
transmission from intake wells and transmission of treated clear water  from
WTP including providing, supplying and laying of pipelines, construction  of
E.S.R.s, Sumps, Pump houses and providing erecting pumping machinery.

19.   It is also noteworthy that in the matter of  evaluation  of  the  bids
and determination of the eligibility of the bidders  Municipal  Council  had
the advantage of the aid & advice of an empanelled consultant,  a  technical
hand, who could well appreciate the significance  of  the  tender  condition
regarding the bidder executing the single  integrated  water  supply  scheme
and fulfilling that condition of tender by reference to the work  undertaken
by them.  We, therefore, see no reason to interfere with the view  taken  by
the High Court of the allotment of work made in favour of respondent No.2.

20.   We may while parting point out that out of a total of  Rs.19.5  crores
representing the  estimated  value  of  the  contract,  respondent  No.2  is
certified to have already executed work worth Rs.11.50 crores  and  received
a sum of Rs.8.79 crores towards the said work.  More  importantly  the  work
in question relates to a drinking water supply scheme for the  residents  of
a scarcity  stricken  municipality.   The  project  is  sponsored  with  the
Central Government assistance under  its  urban  infrastructure  scheme  for
small and middle towns. The completion target of  the  scheme  is  September
2012.  Any interference with the award of the  contract  at  this  stage  is
bound to delay the execution of the work and  put  the  inhabitants  of  the
municipal area to further hardship. Interference with the on-going work  is,
therefore, not conducive to public interest which can be served only if  the
scheme is completed as  expeditiously  as  possible  giving  relief  to  the
thirsting residents of Sendhwa. This is particularly so when  the  allotment
of work in favour of respondent No.2 does not  involve  any  extra  cost  in
comparison to the cost that may be incurred if the contract was allotted  to
the appellant-company.

21.   In the light of the above settled legal position and  in  the  absence
of any mala fide or arbitrariness in the process of evaluation of  bids  and
the determination of the eligibility of the bidders, we do not consider  the
present to be a fit  case  for  interference  of  this  Court.  This  appeal
accordingly fails and is hereby dismissed with cost assessed at  Rs.25,000/-
.




                                                ……………………………….………J.
                                                       (T.S. THAKUR)




                                                          ……………………………….………J.
                                                          (GYAN SUDHA MISRA)
New Delhi
May 4, 2012

Apex court also upheld live-in-relationship can claim maintenance” (a) the couple must hold themselves out to society as being akin to spouses. (b) They must be of legal age to marry. (c) They must be otherwise qualified to enter into a legal marriage, including being unmarried. (d) They must have voluntarily cohabited and held themselves out to the world as being akin to spouses for a significant period of time. (see ‘Common Law Marriage’ in Wikipedia on Google.) In our opinion a ‘relationship in the nature of marriage’ under the 2005 Act must also fulfill the above requirements, and in addition the parties must have lived together in a ‘shared household’ as defined in Section 2(s) of the Act. Merely spending weekends together or a one night stand would not make it a ‘domestic relationship’. 32. In our opinion not all live-in relationships will amount to a relationship in the nature of marriage to get the benefit of the Act of 2005. To get such benefit the conditions mentioned by us above must be satisfied, and this has to be proved by evidence. If a man has a ‘keep’ whom he maintains financially and uses mainly for sexual purpose and/or as a servant it would not, in our opinion, be a relationship in the nature of marriage’ 33. No doubt the view we are taking would exclude many women who have had a live-in relationship from the benefit of the 2005 Act, but then it is not for this Court to legislate or amend the law. Parliament has used the expression ‘relationship in the nature of marriage’ and not ‘live-in relationship’. The Court in the garb of interpretation cannot change the language of the statute.”5. I have gone through the complaint filed by the 1st respondent herein. It is stated in the complaint that the petitioner married her at PeddagattuLingamanthula Swamy Temple, Durajupalli Village of Chivemula Mandal, Nalgonda District, on 10.09.2010, and out of her association with him, she gained pregnancy . Since the petitioner has filed counter in the DVC, I am not inclined to adjudicate the issue on merits in this quash petition. I deem it appropriate to direct the Judicial Magistrate of First Class, Suryapet, to expedite the proceedings in DVC 4 of 2011 and dispose of the same as expeditiously as possible, preferably within 60 days from the date of receipt of a copy of this Order.


 

THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY

 

Criminal Petition No.2353 of 2012

 

Date:02nd March, 2012

 

 

Between:

 

Verpula Ganga Raju S/o.Lingaiah

..... Petitioner
AND

 

Verpula Renuka W/o.Ganga Raju & Anr.

.....Respondents

 

***

 


THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY

Criminal Petition No.2353 of 2012


ORDER:
                                                                       

        This Criminal Petition has been taken out under Section 482 Cr.P.C. by the 1st respondent in DVC No.4 of 2011 on the file of the Judicial Magistrate of First Class, Suryapet, Nalgonda District, to quash the proceedings therein.

2.     The 1st respondent herein filed DVC No.4 of 2011 on the file of the Judicial Magistrate of First Class, Suryapet, Nalgonda District, alleging, inter alia, that the petitioner herein developed intimacy with her when she was at the age of 15 years and continued the said intimacy and out of the said intimacy, she gained pregnancy.  It is further stated in the complaint that the petitioner married her as his wife by tying Thalibottu at Peddagattu Lingamanthula Swamy Temple, Durajupalli Village of Chivemula Mandal, Nalgonda District, on 10.09.2010.  When she gained pregnancy, the petitioner denied his relationship with her.   A panchayat has been held before the elders viz., Eeraboina Buchaiah, Eeraboina Guruvaiah, Eeraboina Yellaiah and others.  The caste elders advised the petitioner and his parents to accept her as wife of the petitioner.  The petitioner agreed to receive her as his wife provided she secures Rs.5,00,000/- as dowry. She filed a report before the Sub-Inspector of Police, Atmakur.  Basing on the said report, a case in Crime No.2 of 2011 for the offence under Sections 417, 420 and 493 IPC came to be registered.  The petitioner herein entered appearance in DVC No.4 of 2011 and filed counter. After filing counter in the DVC, he approached this Court invoking the jurisdiction under Section 482 Cr.P.C. to quash the proceedings therein.

3.     Heard learned counsel appearing for the petitioner and perused the material brought on record.

4.     Learned counsel appearing for the petitioner submits that the petitioner has no relationship with the 1st respondent and therefore, continuation of proceedings in DVC No.4 of 2011 on the file of the Judicial Magistrate of First Class, Suryapet, Nalgonda District, amounts to abuse of process of the Court.  In support of his submissions, reliance has been placed on the decision of the Supreme Court in D.Velusamy v. D.Patchalammal[1].  Much emphasis has been laid on paras.31 to 33 of the cited judgment, which read as hereunder:
“31. In our opinion a 'relationship in the nature of marriage' is akin to a common law marriage. Common law marriages require that although not being formally married :
(a)              The couple must hold themselves out to society as being akin to spouses.
(b)              They must be of legal age to marry.
(c)               They must be otherwise qualified to enter into a legal marriage, including being unmarried.
(d)              They must have voluntarily cohabited and held themselves out to the world as being akin to spouses for a significant period of time. (see 'Common Law Marriage' in Wikipedia on Google.)
In our opinion a 'relationship in the nature of marriage' under the 2005 Act must also fulfill the above requirements, and in addition the parties must have lived together in a 'shared household' as defined in Section 2(s) of the Act. Merely spending weekends together or a one night stand would not make it a 'domestic relationship'.

32. In our opinion not all live-in relationships will amount to a relationship in the nature of marriage to get the benefit of the Act of 2005. To get such benefit the conditions mentioned by us above must be satisfied, and this has to be proved by evidence. If a man has a 'keep' whom he maintains financially and uses mainly for sexual purpose and/or as a servant it would not, in our opinion, be a relationship in the nature of marriage'

33. No doubt the view we are taking would exclude many women who have had a live-in relationship from the benefit of the 2005 Act, but then it is not for this Court to legislate or amend the law. Parliament has used the expression 'relationship in the nature of marriage' and not 'live-in relationship'. The Court in the garb of interpretation cannot change the language of the statute.”

5.     I have gone through the complaint filed by the 1st respondent herein.  It is stated in the complaint that the petitioner married her at PeddagattuLingamanthula Swamy Temple, Durajupalli Village of Chivemula Mandal, Nalgonda District, on 10.09.2010, and out of her association with him, she gained pregnancy .  Since the petitioner has filed counter in the DVC, I am not inclined to adjudicate the issue on merits in this quash petition.  I deem it appropriate to direct the Judicial Magistrate of First Class, Suryapet, to expedite the proceedings in DVC 4 of 2011 and dispose of the same as expeditiously as possible, preferably within 60 days from the date of receipt of a copy of this Order.

6.     Accordingly, the Criminal Petition is dismissed.

 

______________________

B.SESHASAYANA REDDY, J.

Date:02nd March, 2012.

cs


 

THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criminal  Petition No.2353 of 2012

 

 

 

 

 

Date:02nd March, 2012



[1] (2010) 10 SCC 469

Thursday, May 3, 2012

When the wife stood as guarantor for her husband debt and when she voluntarily executed cheque for the debt of her husband, now she cannot say that the cheque is not supported by consideration nor she is the owner of her husband’s company for escaping her liability =The above judgment in the case of ICDS Limited was cited before the learned Magistrate, but the learned Magistrate erroneously held that the said decision is not applicable to the facts of the present case. The learned Magistrate further held that the second respondent could be able to rebut the presumption against her under Section 139 of the Negotiable Instruments Act. There was no evidence let in by the second respondent nor was there any circumstance in favour of the second respondent justifying the learned Magistrate to hold that she could be able to rebut the presumption. In view of the judgment of the Supreme Court in ICSC Limited even though there is no proof placed by the appellant showing that after the death of her husband, the second respondent herein became the proprietrix of M/s National Business Trust, she admittedly being one of the guarantors of the hire purchase agreement entered into by her husband on behalf of M/s National Business Trust and having issued the impugned cheque in discharge of the liability under the said hire purchase agreement is liable for punishment under Section 138 of the Negotiable Instruments Act for the dishonour of the said cheque. It is erroneous to hold that the cheque was not issued in discharge of any legally enforceable debt or liability and that complaint was not maintainable against the second respondent. The learned trial Court overlooked the crucial documents viz. Ex.P.4 promissory note and Exs.P.5 and P.6 letters which contain the signatures of the second respondent. There was an undertaking in Exs.P.5 and P.6 letters by the second respondent that she would discharge the debt/liability under the hire purchase agreement. The oral and documentary evidence adduced by the appellant clearly established that the respondent was a guarantor under the hire purchase agreement, she undertook to repay the debt due under the hire purchase agreement by her letters Exs.P.5 and P.6 addressed to the appellant and subsequently issued the impugned cheque towards discharge of the said debt/liability under the hire purchase agreement. All these facts have been proved by the appellant positively by examining PW.1 and marking Ex.P.5 to P.7. Absolutely, there was no material before the learned Magistrate to record a finding that all these documents have not been voluntarily executed by the appellant. If the said documents were obtained by force, fraud or undue influence, the burden to prove the said fact is on the second respondent. But, absolutely there was no evidence forthcoming on her behalf to prove the said fact. The finding recorded by the learned Magistrate to the effect that the second respondent did not issue the cheque and execute the other documents voluntarily is contrary to the evidence on record and is nothing but perverse. This Court in an appeal against acquittal will not normally interfere with the findings recorded by the trial Court unless they are perverse or not based on evidence. In this case, the interference is required because the findings recorded by the leaned Magistrate are contrary to the evidence on record besides being perverse. 11. For the foregoing reasons, the judgment dated 17.04.2006 passed by the XIV Additional Chief Metropolitan Magistrate, Hyderabad, in C.C.No.No.1294 of 2001 acquitting the second respondent for the offence under Section 138 of the Negotiable Instruments Act is set aside and the second respondent is found guilty. The second respondent/accused is sentenced to under go simple imprisonment for a period of six months and to pay a fine of Rs.5,000/-, in default to pay fine amount, the second respondent to undergo simple imprisonment for a period of one month. The appeal is succeeds and the same is allowed. __________________


HON'BLE SRI JUSTICE R.KANTHA RAO      

Criminal Appeal No.1108 OF 2006


06-01.2012

M/s Laila Finance Ltd

M/s S.A. Engineering Services and others

Counsel for appellant:  Sri I. Gopal Reddy
                               
 Counsel for respondents 1 &2: Sri M.Subba Reddy
Counsel for Respondent No.3 : Public Prosecutor

? Cases referred:
1 (2002)6 SCC 426


JUDGMENT:  


        This criminal appeal is filed by M/s Laila Finance Ltd, Panjagutta,
Hyderabad against the judgment dated 17.04.2006 passed by the XIV Additional
Chief Metropolitan Magistrate, Hyderabad, in C.C.No.No.1294 of 2001 acquitting
the respondents/accused for the offence under Section 138 of the Negotiable
Instruments Act.

2.      The brief facts necessary for considering the appeal may be stated as
follows:
        The appellant is the company registered under the Companies Act doing
business in finance, hire purchase, bill discounting and lease.  The second
respondent (A2) is the sole proprietor of respondent No.1(A1).  Originally Mr
Mohd.Akber, husband of the first respondent was the proprietor of M/s National
Business Trust.  According to the appellant, after the death of Mr. Mohd. Akber,
Smt. Saleema Begum, the second respondent apart from succeeding to all his
properties became the proprietrix of M/s National Business Trust also.

3.       Mr Mohd. Akber entered into hire purchase agreement on behalf of M/s
National Business Trust with the appellant company, during his life time, he
paid two instalments due under the agreement and having failed to pay the
remaining instalments, an amount of Rs.14,30,000/-  became due.  It is the
version of the appellant that after the death of Mr Mohd. Akber having come to
know that the second respondent Saleema Begum succeeded to his properties and  
also became the proprietrix of M/s National Business Trust, approached her on
28.08.000 requested to pay the amount of Rs.14,30,000/-.  Pursuant to the
request made by the representative of the appellant, the second respondent gave
a written undertaking agreeing to pay the dues payable by National Business
Trust.  However,  she failed to pay the amount and when the representative of
the appellant approached her on 02.09.2001 and demanded payment of the amount,  
respondent No.2/A2 in the capacity of proprietrix of A1 agreed to discharge the
liability of National Business Trust and issued a cheque for an amount of
Rs.14,30,000/- towards full and final settlement of the amount due under the
hire purchase agreement vide cheque bearing No.553575, dated 03.09.2001 drawn on
State Bank of India, IFB Branch, Vijayawada in favour of the appellant.
Thereafter, the appellant presented the cheque for encashment in its bank -
State Bank of India, IFB Branch, Somajiguda, Hyderabad but the said cheque was
dishonoured with an endorsement funds insufficient vide memo dated 10.09.2001.
Thereafter, the appellant got issued a legal notice dated 25.09.2001 which was
served on the second respondent, but was returned with an endorsement refused
dated 01.10.2001.  The respondent No.2 did not issue any reply notice nor did
she make the payment of the cheque amount.  On that, the appellant filed the
complaint before the learned Magistrate under Section 138 of the Negotiable
Instruments Act.

4.      In the course of the trial before the learned Magistrate, the appellant
examined its authorized signatory Mr G.S.Raju as PW.1 and marked through him
Exs.P.1 to P.15.  When examined under Section 313 Cr.P.C., the second respondent  
denied the incriminating material found against her in the evidence of
prosecution witnesses.  She herself examined as DW1 after obtaining permission
of the learned Magistrate under Section 315 Cr.P.C. and marked Exs.D1 to D.13.

5.      The learned trial Court upon considering the entire evidence on record
held that the appellant failed to establish that the second respondent
voluntarily undertook to pay the amount of Rs.14,30,000/- in the capacity of the
proprietrix of M/s National Business Trust and that she voluntarily issued
Ex.P.7-cheque in discharge of any legally enforceable debt or other liability
and therefore, she is not liable for punishment under Section 138 of the
Negotiable Instruments Act.

6.      The crucial aspect requires mention in this context is that in the hire
purchase agreement executed by Mr Mohd. Akber, the second respondent who is his  
wife stood as one of the guarantors.  This fact is not in dispute.  She also did
not dispute her signature on Ex.A.7 cheque. She only contended that she had not
issued the cheque voluntarily, but it was obtained by the appellant by
exercising undue influence by sending some papers and blank cheques to her.  She
also denied to have voluntarily addressed Exs.P.5 and P.6- letters to the
appellant.  She further denied to have stood as guarantor under Ex.P.4
promissory note.  The learned trial Court accepted the contention of the first
respondent and held that she is not liable for punishment under Section 138 of
the Negotiable Instruments Act.
7.      Now the point for determination in this appeal is:
Whether the order of acquittal passed by the learned Magistrate acquitting the
respondent for the offence under Section 138 of the Negotiable Instruments Act
be sustained.

8.      Section 139 of the Negotiable Instruments Act reads as follows:
139. Presumption in favour of holder:
It shall be presumed, unless the contrary is proved, that the holder of a cheque
received the cheque of the nature referred to in Section 138 for the discharge,
in whole or in part, or any debt or other liability.

9.      The presumption under Section 139 of the Act is rebutable presumption, but
the burden of proving that a cheque had not been issued in discharge of a debt
or liability is on the accused.  In the instant case, the second respondent did
not dispute her signatures on Ex.A.4 promissory note whereunder she stood as
guarantor and Exs.P.5 and P.6 letters addressed by her to the appellant
undertaking to discharge the debt payable by M/s National Business Trust.  She
however, denied the fact that after the death of her husband, she became the
proprietrix of M/s National Business Trust.  The appellant marked the above said
documents through PW.1, its authorized representative.  Since the second
respondent admitted her signature on Ex.P.7-cheque and the other documents
referred above, the burden lies on her to prove that the cheque issued by her
was not for discharge of debt or liability legally enforceable.  In fact, she
did not adduce any evidence to rebut the presumption against her under Section
139 of the Negotiable Instruments Act.  The learned trial Court, however,
considering the fact that the date on the cheque was shown with different ink
observed that the appellant might have obtained the cheque as well as the other
documents by using undue influence against the second respondent. Absolutely,
there was no basis for the learned Magistrate to record such a finding.   The
important aspect in this case is that admittedly, the second respondent stood as
guarantor in the hire purchase agreement along with another guarantor.  In ICDS
LTD v BEENA SHABEER AND ANOTHER1, the Supreme Court while dealing with identical      
issue held as follows:
"The word "any cheque" and "other liability" occurring in Section 138 are the
two key expressions which stand as clarifying the legislative intent so as to
bring the factual context within the ambit of the provisions  of the statute.
These expressions leave no manner of doubt that for whatever reason it may be,
the liability under Section 138 cannot be avoided in the event the cheque stands
returned by the banker unpaid. Any contra-interpretation would defeat the intent
of the legislature.  The High Court got carried away by the issue of guarantee
and guarantor's liability and thus has overlooked the true intent and purport of
Section 138 of the Act.

  In view of the specific language used by the legislature, the question of
consideration of the arguments based on Sections 126 and 128 of the Contract Act
would not arise.  Moreover, it would not be desirable for the Supreme Court to
express any view since that may have some effect as regards the merits."


10.     The above judgment in the case of ICDS Limited was cited before the
learned Magistrate, but the learned Magistrate erroneously held that the said
decision is not applicable to the facts of the present case.  The learned
Magistrate further held that the second respondent could be able to rebut the
presumption against her under Section 139 of the Negotiable Instruments Act.
There was no evidence let in by the second respondent nor was there any
circumstance in favour of the second respondent justifying the learned
Magistrate to hold that she could be able to rebut the presumption.  In view of
the judgment of the Supreme Court in ICSC Limited even though there is no proof
placed by the appellant showing that after the death of her husband, the second
respondent herein became the proprietrix of M/s National Business Trust, she
admittedly being one of the guarantors of the hire purchase agreement entered
into by her husband on behalf of M/s National Business Trust and having issued
the impugned cheque in discharge of the liability under the said hire purchase
agreement is liable for punishment under Section 138 of the Negotiable
Instruments Act for the dishonour of the said cheque.  It is erroneous to hold
that the cheque was not issued in discharge of any legally enforceable debt or
liability and that complaint was not maintainable against the second respondent.
The learned trial Court overlooked the crucial documents viz. Ex.P.4 promissory
note and Exs.P.5 and P.6 letters which contain the signatures of the second
respondent.  There was an undertaking in Exs.P.5 and P.6 letters by the second
respondent that she would discharge the debt/liability under the hire purchase
agreement.  The oral and documentary evidence adduced by the appellant clearly
established that the respondent was a guarantor under the hire purchase
agreement, she undertook to repay the debt due under the hire purchase agreement
by her letters Exs.P.5 and P.6 addressed to the appellant and subsequently
issued the impugned cheque towards discharge of the said debt/liability under
the hire purchase agreement.    All these facts have been proved by the
appellant positively by examining PW.1 and marking Ex.P.5 to P.7. Absolutely,
there was no material before the learned Magistrate to record a finding that all
these documents have not been voluntarily executed by the appellant.  If the
said documents were obtained by force, fraud or undue influence, the burden to
prove the said fact is on the second respondent.  But, absolutely there was no
evidence forthcoming on her behalf to prove the said fact.  The finding recorded
by the learned Magistrate to the effect that the second respondent did not issue
the cheque and execute the other documents voluntarily is contrary to the
evidence on record and is nothing but perverse.  This Court in an appeal against
acquittal will not normally interfere with the findings recorded by the trial
Court unless they are perverse or not based on evidence.  In this case, the
interference is required because the findings recorded by the leaned Magistrate
are contrary to the evidence on record besides being perverse.

11.      For the foregoing reasons, the judgment dated 17.04.2006 passed by the
XIV Additional Chief Metropolitan Magistrate, Hyderabad, in C.C.No.No.1294 of
2001 acquitting the second respondent for the offence under Section 138 of the
Negotiable Instruments Act is set aside and the second respondent is found
guilty.  The second respondent/accused is sentenced to under go simple
imprisonment for a period of six months and to pay a fine of Rs.5,000/-, in
default to pay fine amount, the second respondent to undergo simple imprisonment
for a period of one month.  The appeal is succeeds and the same is allowed.

__________________  
Date:  06.01.2012
R. KANTHA RAO, J