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Monday, August 6, 2012

undergone mental torture at the hands of insensible police officials. He might have agitated to ameliorate the cause of the poor and the downtrodden, but, the social humiliation that has been meted to him is quite capable of destroying the heart of his philosophy. It has been said that philosophy has the power to sustain a man’s courage. But courage is based on self-respect and when self-respect is dented, it is difficult even for a very strong minded person to maintain that courage. The initial invincible mind paves the path of corrosion. As is perceptible, the mindset of the protectors of law appears to cause torment and insult and tyrannize the man who is helpless in custody. There can be no trace of doubt that he is bound to develop stress disorder and anxiety which destroy the brightness and strength of the will power. It has been said that anxiety and stress are slow poisons. When torment is added, it creates commotion in the mind and the slow poisons get activated. The inhuman treatment can be well visualized when the appellant came out from custody and witnessed his photograph being circulated with the self-condemning words written on it. This withers away the very essence of life as enshrined under Article 21 of the Constitution. Regard being had to the various aspects which we have analysed and taking note of the totality of facts and circumstances, we are disposed to think that a sum of Rs.5.00 lacs (Rupees five lacs only) should be granted towards compensation to the appellant and, accordingly, we so direct. The said amount shall be paid by the respondent State within a period of six weeks and be realized from the erring officers in equal proportions from their salary as thought appropriate by the competent authority of the State. 47. Consequently, the appeal is allowed to the extent indicated above. However, in the facts and circumstances of the case, there shall be no order as to costs.


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                         CIVIL APPEAL No.  5703/2012
                (Arising out of SLP (C) No.  34702  of 2010)


Dr. Mehmood Nayyar Azam                            ….. Appellant

                             Versus

State of Chattisgarh and Ors.                      … Respondents



                             J U D G M E N T





Dipak  Misra, J




      Leave granted.

2.    Albert Schweitzer, highlighting on  Glory  of  Life,  pronounced  with
conviction and humility, “the reverence of life  offers  me  my  fundamental
principle on morality”.   The aforesaid  expression  may  appear  to  be  an
individualistic  expression  of  a  great  personality,  but,  when  it   is
understood in the complete sense,  it  really  denotes,  in  its  conceptual
essentiality, and connotes, in its macrocosm, the fundamental perception  of
a thinker about the respect that life commands.  The reverence  of  life  is
insegragably associated with the dignity of a human being who  is  basically
divine,  not  servile.   A  human  personality  is  endowed  with  potential
infinity and it blossoms when dignity is sustained.  The sustenance of  such
dignity has to be the superlative concern  of  every  sensitive  soul.   The
essence of dignity can never be treated as a momentary spark  of  light  or,
for that matter, ‘a brief candle’, or ‘a hollow bubble’.  The spark of  life
gets more resplendent when man is treated  with  dignity  sans  humiliation,
for every man is expected to lead an honourable life  which  is  a  splendid
gift of “creative intelligence”. When a dent is created in  the  reputation,
humanism is paralysed.  There are some megalomaniac  officers  who  conceive
the perverse notion that they are the  `Law’  forgetting  that  law  is  the
science of what is good and just and, in very nature of  things,  protective
of a civilized society.  Reverence for the nobility of a human being has  to
be the corner stone of a body polity  that  believes  in  orderly  progress.
But, some, the incurable ones, become totally oblivious  of  the  fact  that
living with dignity has been enshrined in our Constitutional philosophy  and
it has its ubiquitous presence, and the majesty  and  sacrosanctity  dignity
cannot be allowed to be crucified  in  the  name  of  some  kind  of  police
action.

3.    The aforesaid prologue gains signification since in the case at  hand,
a doctor, humiliated in custody, sought  public  law  remedy  for  grant  of
compensation and the High Court, despite no factual  dispute,  has  required
him to submit a representation to the State Government for  adequate  relief
pertaining to grant of compensation after expiry of 19 years with a  further
stipulation that if  he  is  aggrieved  by  it,  he  can  take  recourse  to
requisite proceedings available to him under law.   We  are  pained  to  say
that this is not only asking a man  to  prefer  an  appeal  from  Caesar  to
Caesar’s wife but it also compels him like a cursed Sisyphus  to  carry  the
stone to the top of the mountain wherefrom the stone rolls down  and  he  is
obliged to repeatedly perform that futile exercise.

4.    The factual matrix as uncurtained is that the appellant, an  Ayurvedic
Doctor with B.A.M.S. degree, while practising  in  West  Chirmiri  Colliery,
Pondi area in the State  of  Chhattisgarh,  used  to  raise  agitations  and
spread awareness against exploitation of  people  belonging  to  weaker  and
marginalized sections of the society.  As a social activist, he  ushered  in
immense awareness among the down-trodden people which caused  discomfort  to
the people who had vested interest in the  coal  mine  area.   The  powerful
coal mafia, trade union leaders, police officers and other persons  who  had
fiscal interest felt disturbed and threatened  him  with  dire  consequences
and pressurized him to refrain  from  such  activities.    Embedded  to  his
committed stance, the petitioner declined to succumb to  such  pressure  and
continued the activities.  When the endeavor failed to  silence  and  stifle
the agitation that was gaining strength and momentum, a consorted  maladroit
effort was made to rope him in certain criminal offences.

5.  As the factual narration further unfolds, in the  initial  stage,  cases
under Section 110/116 of the Criminal  Procedure  Code  were  initiated  and
thereafter crime No. 15/92 under Section 420 of the Indian Penal  Code  (for
short  ‘the IPC’)  and crime No. 41/92 under Sections 427  and  379  of  the
IPC were registered.  As the activities gathered further  drive  and  became
more pronounced, crime No. 62/90 was registered for  an  offence  punishable
under Section 379 of the IPC for alleged theft of electricity.  In the  said
case, the appellant was taken into custody.

6.    Though  he  was  produced  before  the  Magistrate  on  22.9.1992  for
judicial remand and was required to be taken to  Baikunthpur  Jail,  yet  by
the time the order was passed, as it was evening, he was kept  in  the  lock
up at Manendragarh Police Station.   On 24.9.1992, he  was  required  to  be
taken to jail but instead of being taken to the jail, he was taken to  Pondi
Police Station at 9.00 a.m.  At  the  police  station,  he  was  abused  and
assaulted.  As asseverated, the physical assault was the beginning  of  ill-
treatment.  Thereafter, the SHO and ASI, the respondent Nos. 4 and  5,  took
his photograph compelling him to hold a placard on which it was written :-
           “Main Dr. M.N. Azam Chhal Kapti Evam Chor Badmash Hoon”. (I, Dr.
           M. N. Azam, am a cheat, fraud, thief and rascal).

7.    Subsequently, the said photograph was  circulated  in  general  public
and even in the revenue proceeding, the respondent No. 7 produced the  same.
 The said atrocities and the torture of the police caused tremendous  mental
agony and humiliation and, hence, the petitioner submitted  a  complaint  to
the National Human Rights Commission who, in turn, asked the  Superintendant
of Police, District Koria to submit a report.   As  there  was  no  response
from the 2nd respondent the Commission again required him to look  into  the
grievances and take  proper  action.   When  no  action  was  taken  by  the
respondent or the  police,  the  petitioner  was  compelled  to  invoke  the
extraordinary jurisdiction of the High  Court  of  Judicature  at  Bilaspur,
Chattisgarh with a prayer for punishing the respondent Nos. 4, 5 & 7 on  the
foundation that their action was a complete transgression  of  human  rights
which affected his fundamental right  especially  his  right  to  live  with
dignity as enshrined under Article 21 of  the  Constitution.   In  the  Writ
Petition, prayer was made for awarding compensation to the tune  of  Rs.  10
lakhs.

8.    After the  return  was  filed,  the  learned  single  Judge  passed  a
detailed order on  3.1.2003  that  the  Chief  Secretary  and  the  Director
General of Police should take appropriate steps for issue  of  direction  to
the concerned authorities to take  appropriate  action  in  respect  of  the
erring  officers.   Thereafter,  some  developments  took   place   and   on
24.3.2005, the Court recorded that  the  writ  petitioner  was  arrested  on
22.9.1992 and his photograph was taken at the police station.   The  learned
single Judge referred to Rule 1 of  Regulation  92  of  Chhattisgarh  Police
Regulations which lays down that no Magistrate shall order photograph  of  a
convict or other person to be  taken  by  the  police  for  the  purpose  of
Identification under Prisoners Act, 1920, unless he is satisfied  that  such
photograph is required for circulation to different places  or  for  showing
it for the purpose of identification to  a  witness  who  cannot  easily  be
brought to a test identification at the place  where  the  investigation  is
conducted or that photograph is required to  be  preserved  as  a  permanent
record.  Thereafter, the learned single Judge proceeded to record  that  not
only the photograph of the writ petitioner had been taken with  the  placard
but had also been circulated which had caused great mental agony and  trauma
to his school going children.  Thereafter, he referred to Regulation 737  of
the Chhattisgarh Police Regulations which relates to action to be  taken  by
the superior officer in respect of  an  erring  officer  who  ill-treats  an
accused.

9.    After referring  to  various  provisions,  the  learned  single  Judge
called for a report from the Chief Secretary.  On 18.11.2005, the Court  was
apprised that despite several communications, the Chief  Secretary  had  not
yet sent the report.  Eventually, the report  was  filed  stating  that  the
appellant was involved in certain cases including  grant  of  bogus  medical
certificate and regard being had to the directions issued in 1992  that  the
photograph of the offender should be kept on record, the same was taken  and
affixed against his name and  after  7.9.1992,   it  was  removed  from  the
records.  It was  also  stated  that  the  Sub-Inspector  had  been  imposed
punishment of “censure” by the Superintendent of Police on  19.11.2001.   It
was also set forth that on 3.5.2003, a charge-sheet was served  on  all  the
erring officers and a departmental enquiry was  held  and  in  the  ultimate
eventuate, they had been imposed major penalty of withholding of one  annual
increment with cumulative effect for one year  commencing  27.5.2004.   That
apart, on 19.7.2005, a case had been registered  under  Section  29  of  the
Police Act against the erring officers.

10.   It is apt to note here that when  the  matter  was  listed  for  final
hearing for grant of compensation, the learned  single  Judge  referred  the
matter to be heard by a Division Bench.

11.   The Division Bench referred to the prayer clause  and  various  orders
passed by the learned single Judge and eventually directed the appellant  to
submit a representation to the Chief Secretary for  grant  of  compensation.
We think it appropriate to reproduce the relevant paragraphs  of  the  order
passed by the Division Bench: -

           “4.   Learned counsel for the petitioner submits that during the
           pendency of  the  writ  petition,  Relief  Clause  No.  7.3  was
           fulfilled under the directions of this court and  now  only  the
           compensation  part,  as  claimed  in  Relief  Clause  No.  7.5A,
           remained there.

           5.    In the instant case, it is an admitted position  that  the
           respondent  State  authorities  have  taken  cognizance  of  the
           harassment meted out to the petitioner by the  erring  personnel
           of the police  department  and  initiated  departmental  enquiry
           against them in which they were found guilty and punishment  has
           also been awarded to them.”

12.   After issuing notice, this Court, on 17.2.2012,  thought  it  apposite
that the appellant should submit a representation within a week which  shall
be considered by the respondents within four weeks therefrom.

13.   In pursuance  of  the  aforesaid  order,  the  appellant  submitted  a
representation which has been rejected on 19.3.2012  by  the  OSD/Secretary,
Government of Chhattisgarh, Home  (Police)  Department.   In  the  rejection
order, it has been stated as follows: -

                 “In  the  aforesaid  cases,  the  arrest  and  the  action
           regarding submission of chargesheet in the Hon’ble Court was  in
           accordance with law.

           (2)   On 24.9.92 the police officers taking your photograph  and
           writing  objectionable  words  thereon  was  against  the  legal
           procedure.  Considering  this,  action  was  taken  against  the
           concerned guilty police officers in accordance with law and  two
           police officers were punished.

           (3)   In your representation, compensation has been demanded  on
           the following two grounds:

           A.    Defamation was caused due to the  police  officers  taking
           photograph.

           B.    Your wife became unwell mentally.  She is still unwell.

           C.    Difficulty in marriage of daughter.

                 Regarding the aforesaid grounds, the actual position is as
           follows:

           A.    Defamation is such a subject, the  decision  on  which  is
                 within jurisdiction of the competent  court.   No  decision
                 pertaining to defamation has been received from  the  court
                 of competent jurisdiction.   Therefore,  it  would  not  be
                 proper for the State Government to take a decision in  this
                 regard.

           B.    Regarding mental ailment of your wife, no such  basis  has
                 been submitted by you, on the basis of which any conclusion
                 may be drawn.

           C.    On the point of there being no marriage of  children  also
                 no such document or  evidence  has  been  produced  by  you
                 before the Government along with the representation, on the
                 basis of which any decision may be taken.

                 Therefore, in the light of the above, the State Government
           hereby rejects your representation and accordingly decides  your
           representation.”

14.   Mr.  Niraj  Sharma,  learned  counsel  appearing  for  the  appellant,
submitted that when the conclusion has been arrived at  that  the  appellant
was harassed at the hands of the police officers  and  in  the  departmental
enquiry they have been found guilty and punished, just  compensation  should
have been awarded by the High Court.  It is further urged by him  that  this
Court had directed to submit a representation to  grant  an  opportunity  to
the functionaries of the  State  to  have  a  proper  perceptual  shift  and
determine the amount of compensation and grant the same,  but  the  attitude
of indifference reigned supreme  and  no  fruitful  result  ensued.   It  is
canvassed by him that it would  not  only  reflect  the  non-concern  for  a
citizen who has been humiliated at the police station, but,  the  manner  in
which the representation has been rejected clearly  exhibits  the  imprudent
perception and heart of stone  of the State.  It is argued that the  reasons
ascribed by the State authority that defamation is such a subject  that  the
issue of compensation has to be decided by the competent court  and  in  the
absence of such a  decision,  the  Government  cannot  take  a  decision  as
regards  the  compensation  clearly  reflects  the  deliberate   insensitive
approach to the entire  fact  situation  inasmuch  as  the  High  Court,  in
categorical terms,  had  found  that  the  allegations  were  true  and  the
appellant was harassed and thereby it did tantamount  to  custodial  torture
and there was no justification to adopt a hyper-technical mode to  treat  it
as a case of defamation in the ordinary sense of the term and requiring  the
appellant to take recourse to further  adjudicatory  process  and  obtain  a
decree from the civil court.

15.   Mr. Atul Jha, learned counsel appearing for the State,  has  supported
the order of the High Court as well as the order  passed  by  the  competent
authority  of  the  State  who  has  rejected  the  representation  on   the
foundation that when the appellant puts forth a claim  for  compensation  on
the ground of defamation, he has to take recourse to the  civil  court  and,
therefore, no fault can be found with the decision taken either by the  High
Court or the subsequent rejection of the representation by the authority  of
the State.

16.    The  learned  counsel  appearing  for  the  private  respondents  has
submitted that they have already been punished in a disciplinary  proceeding
and, therefore, the question of grant of compensation  does  not  arise  and
even if it emerges, the same has to be determined by the civil court on  the
base of evidence adduced to establish defamation.

17.   At the very outset, we are obliged to  state  that  five  aspects  are
clear as day and do not remotely admit of any doubt.  First,  the  appellant
was arrested in respect of the alleged  offence  under  Indian  Penal  Code,
1860 and the Electricity Act, 2003; second, there was  a  direction  by  the
Magistrate for judicial remand and thereafter instead of taking him to  jail
the next day he was brought to the police station;  third,  self-humiliating
words were written  on  the  placard  and  he  was  asked  to  hold  it  and
photographs were taken; and  fourth,  the  photographs  were  circulated  in
general public and were also filed by one of the respondents  in  a  revenue
proceeding; and five,  the High Court, in categorical terms, has found  that
the appellant was harassed.

18.   In the aforesaid backdrop, the singular question required to be  posed
is that whether the appellant should be asked to  initiate  a  civil  action
for grant of damages on the foundation that he  has  been  defamed  or  this
Court should grant compensation on the bedrock that he has been harassed  in
police custody.

19.   At this juncture, it is condign to refer  to  certain  authorities  in
the field.  In D.K. Basu v. State of W.B.[1] it has been held thus: -

           “10.  “Torture” has not been defined in the Constitution  or  in
           other penal laws. “Torture” of a human being  by  another  human
           being is essentially an instrument to impose  the  will  of  the
           “strong” over the “weak” by suffering.  The word  torture  today
           has  become  synonymous  with   the   darker   side   of   human
           civilization.

                       “Torture is a wound  in  the  soul  so  painful  that
                 sometimes you can almost  touch  it,  but  it  is  also  so
                 intangible that there is no way to  heal  it.   Torture  is
                 anguish squeezing in your chest, cold as ice and heavy as a
                 stone, paralyzing as sleep and dark as the abyss.   Torture
                 is despair and fear and rage and hate.  It is a  desire  to
                 kill and destroy including yourself.”

                                                         - Adriana P. Bartow




           11.   No violation of any one of the human rights has  been  the
           subject of so many Conventions and Declarations as  “torture”  –
           all aiming at total banning of it in all forms, but in spite  of
           the commitments made to eliminate torture, the fact remains that
           torture is more widespread now  than  ever  before.   “Custodial
           torture” is a naked violation of human dignity  and  degradation
           which  destroys,  to  a  very  large  extent,   the   individual
           personality.  It is a calculated assault on  human  dignity  and
           whenever human dignity is wounded,  civilization  takes  a  step
           backward – flag of humanity must on each such occasion fly half-
           mast.


           12.   In all custodial crimes what is of  real  concern  is  not
           only infliction of body pain but the mental agony which a person
           undergoes within the four walls of police  station  or  lock-up.
           Whether it is physical assault or rape in  police  custody,  the
           extent of trauma, a person experiences is beyond the purview  of
           law.”

20.   We have referred to the aforesaid paragraphs to  highlight  that  this
Court has emphasized on the  concept  of  mental  agony  when  a  person  is
confined within the four walls of police station or lock-up.   Mental  agony
stands in contradistinction to infliction of physical  pain.   In  the  said
case,  the  two-Judge  Bench  referred  to  Article  5  of   the   Universal
Declaration of Human Rights, 1948 which  provides  that  “No  one  shall  be
subjected to  torture  or  to  cruel,  inhuman  or  degrading  treatment  or
punishment”.  Thereafter, the Bench adverted to Article 21 and proceeded  to
state that the expression “life  or  personal  liberty”  has  been  held  to
include the right to live  with  human  dignity  and  thus,  it  would  also
include within itself a guarantee against torture and assault by  the  State
or  its  functionaries.   Reference  was  made  to  Article  20(3)  of   the
Constitution which postulates that a person accused of an offence shall  not
be compelled to be a witness against himself.

21.   It is worthy to note that in  the  case  of  D.K.  Basu  (supra),  the
concern shown by this Court in Joginder Kumar v. State of U.P.[2] was  taken
note of.  In Joginder Kumar’s case, this Court voiced its concern  regarding
complaints of violation of human rights during and after arrest.  It is  apt
to quote a passage from the same: -

                 “The horizon of human rights is expanding.   At  the  same
           time, the crime rate is also increasing.  Of  late,  this  Court
           has been receiving complaints about violations of  human  rights
           because of indiscriminate arrests.   How  are  we  to  strike  a
           balance between the two?

                 A realistic approach should be  made  in  this  direction.
           The law  of  arrest  is  one  of  balancing  individual  rights,
           liberties and  privileges,  on  the  one  hand,  and  individual
           duties,  obligations  and  responsibilities  on  the  other;  of
           weighing and balancing the rights, liberties and  privileges  of
           the single individual and those of individuals collectively;  of
           simply deciding what is wanted and where to put the  weight  and
           the emphasis; of deciding which comes first –  the  criminal  or
           society, the law violator or the law abider…”

22.   After referring to the case of Joginder Kumar (supra), A.S. Anand,  J.
(as his Lordship then was), dealing with the various facets of  Article  21,
stated that any form of torture or cruel,  inhuman  or  degrading  treatment
would fall within the ambit of Article 21 of the  Constitution,  whether  it
occurs  during  investigation,   interrogation   or   otherwise.    If   the
functionaries of the Government become law-breakers, it is  bound  to  breed
contempt for law and would encourage lawlessness and every  man  would  have
the tendency to become law unto himself  thereby  leading  to  anarchy.   No
civilized nation can permit that to happen, for a citizen does not shed  off
his fundamental right to life, the moment  a  policeman  arrests  him.   The
right to life of a citizen cannot put  in  abeyance  on  his  arrest.    The
precious right guaranteed by Article 21 of the Constitution of India  cannot
be denied to convicts, undertrials, detenus and other prisoners in  custody,
except according to  the  procedure  established  by  law  by  placing  such
reasonable restrictions as are permitted by law.

23.   At this juncture, it becomes absolutely necessary to  appreciate  what
is meant by the term “harassment”.  In P.  Ramanatha  Aiyar’s  Law  Lexicon,
Second Edition, the term “harass” has been defined, thus: -

           “Harass. “injure” and “injury” are  words  having  numerous  and
           comprehensive popular  meanings,  as  well  as  having  a  legal
           import.  A line may be drawn between these words  and  the  word
           “harass” excluding the latter from being comprehended within the
           word “injure” or “injury”.  The synonyms  of  “harass”  are:  To
           weary, tire, perplex,  distress  tease,  vex,  molest,  trouble,
           disturb.  They all have relation  to  mental  annoyance,  and  a
           troubling of the spirit.”

The term “harassment”  in  its  connotative  expanse  includes  torment  and
vexation.  The term “torture” also engulfs  the  concept  of  torment.   The
word “torture” in its denotative concept includes mental  and  psychological
harassment.   The  accused  in  custody  can   be   put   under   tremendous
psychological pressure by cruel, inhuman and degrading treatment.

24.   At this juncture, we may  refer  with  profit  to  a  two-Judge  Bench
decision  in  Sunil  Gupta  and  others  v.  State  of  Madhya  Pradesh  and
others[3].  The said case pertained to handcuffing where the  accused  while
in judicial custody were being escorted to court  from  jail  and  bound  in
fetters.  In that context, the Court stated that  the  escort  party  should
record reasons for doing so in writing and intimate the court  so  that  the
court, considering the circumstances may either approve  or  disapprove  the
action of the escort  party  and  issue  necessary  directions.   The  Court
further observed that when the  petitioners  who  had  staged  ‘Dharna’  for
public cause and voluntarily submitted themselves for arrest and who had  no
tendency to escape, had been subjected to humiliation by  being  handcuffed,
such act of the escort party is against all  norms  of  decency  and  is  in
utter violation of the principle underlying Article 21 of  the  Constitution
of India.  The said act was condemned by this  Court  to  be  arbitrary  and
unreasonably humiliating towards the  citizens  of  this  country  with  the
obvious motive of pleasing ‘someone’.

25.   In Bhim Singh, MLA v. State of J &  K[4],  this  Court  expressed  the
view that the police officers  should  have  greatest  regard  for  personal
liberty of citizens as they are the custodians of law and order and,  hence,
they should not flout the law by stooping to bizarre  acts  of  lawlessness.
It was  observed  that  custodians  of  law  and  order  should  not  become
depredators of civil liberties, for their duty is  to  protect  and  not  to
abduct.

26.   It needs no special emphasis to state  that  when  an  accused  is  in
custody, his Fundamental Rights are not  abrogated  in  toto.   His  dignity
cannot be allowed to be comatosed.   The  right  to  life  is  enshrined  in
Article 21 of the Constitution and a fortiorari, it includes  the  right  to
live with human dignity and all that goes along with it.   It  has  been  so
stated in Francis Coralie Mullin v. Administrator, Union Territory of  Delhi
and others[5] and D.K. Basu  (supra).

27.   In Kharak Singh  v.  State  of  U.  P.,[6]  this  court  approved  the
observations of Field, J. in Munn v. Illinois[7]:-

           “By the term “life” as here [Article 21] used something more  is
           meant than mere animal existence.  The  inhibition  against  its
           deprivation extends to all those limbs and  faculties  by  which
           life is enjoyed.”

28.   It is apposite to note that inhuman treatment has many  a  facet.   It
fundamentally can  cover  such  acts  which  have  been  inflicted  with  an
intention to cause physical suffering or severe mental pain.  It would  also
include a treatment that is inflicted that causes humiliation and compels  a
person to act against his will or conscience.

29.   In Arvinder Singh Bagga v. State of U.P. and others[8],  it  has  been
opined that torture is not merely physical but may even  consist  of  mental
and psychological torture calculated to  create  fright  to  submit  to  the
demands of the police.

30.   At this stage, it is seemly to refer to the decisions of some  of  the
authorities relating to a man’s reputation which forms a facet of  right  to
life as engrafted under Article 21 of the Constitution.

31.   In Smt. Kiran Bedi v. Committee of Inquiry and another[9], this  Court
reproduced an observation from the decision in D. F. Marion v. Davis[10]:-

           “The right to enjoyment of a private reputation,  unassailed  by
           malicious slander is of ancient  origin,  and  is  necessary  to
           human society. A good  reputation  is  an  element  of  personal
           security, and is protected by the Constitution equally with  the
           right to the enjoyment of life, liberty and property.”

32.    In  Board  of  Trustees  of  the  Port  of   Bombay   v.   Dilipkumar
Raghavendranath Nadkarni and others[11], it has been  ruled  that  right  to
reputation is a facet of right to life of a citizen under Article 21 of  the
Constitution.

33.   In Smt. Selvi and others v.  State  of  Karnataka[12],  while  dealing
with  the  involuntary  administration  of  certain  scientific  techniques,
namely,  narcoanalysis,  polygraph  examination  and  the  Brain  Electrical
Activation Profile test for the purpose of improving  investigation  efforts
in  criminal  cases,  a  three-Judge  Bench  opined  that   the   compulsory
administration of the impugned  techniques  constitute  ‘cruel,  inhuman  or
degrading treatment’ in the context of Article 21.   Thereafter,  the  Bench
adverted to what is the popular  perception  of  torture  and  proceeded  to
state as follows: -

           “The popular perceptions of terms such as ‘torture’ and  ‘cruel,
           inhuman or degrading treatment’ are associated with gory  images
           of blood-letting and broken bones.  However, we  must  recognize
           that a forcible intrusion into a person’s  mental  processes  is
           also an affront to human dignity and liberty, often  with  grave
           and long-lasting consequences.  [A similar conclusion  has  been
           made in the following paper: Marcy Strauss, ‘Criminal Defence in
           the Age of Terrorism – Torture’, 48  New  York  Law  School  Law
           Review 201-274 (2003/2004)].”

After so stating, the Bench in its conclusion recorded as follows: -

           “We have also elaborated how the  compulsory  administration  of
           any of these techniques is an  unjustified  intrusion  into  the
           mental privacy of  an  individual.   It  would  also  amount  to
           ‘cruel, inhuman or  degrading  treatment’  with  regard  to  the
           language of evolving international human rights norms.”

34.   Recently in Vishwanath S/o Sitaram Agrawal v.  Sau.  Sarla  Vishwanath
Agrawal[13], although in a different context, while dealing with the  aspect
of reputation, this Court has observed as follows: -

           “……..reputation which is not only the salt of life, but also the
           purest treasure and the most precious perfume of  life.   It  is
           extremely delicate and a cherished value this side of the grave.
            It is a revenue generator for the present as well  as  for  the
           posterity.”



35.   We have referred to  these  paragraphs  to  understand  how  with  the
efflux  of  time,  the  concept  of  mental  torture  has  been   understood
throughout the world, regard being had to the essential conception of  human
dignity.

36.   From the aforesaid discussion, there is no shadow of  doubt  that  any
treatment  meted  to  an  accused  while  he  is  in  custody  which  causes
humiliation and mental trauma corrodes the concept of  human  dignity.   The
majesty of law protects the dignity of a citizen in a  society  governed  by
law.  It cannot be forgotten that the Welfare State is governed by  rule  of
law which has paramountcy.  It has been said by Edward Biggon “the  laws  of
a  nation  form  the  most  instructive  portion  of   its   history.”   The
Constitution as the organic law of the land has unfolded itself in  manifold
manner like a living organism in the various decisions of  the  court  about
the rights of a person under Article 21 of the Constitution of  India.  When
citizenry rights are  sometimes  dashed  against  and  pushed  back  by  the
members of City Halls, there has to be a rebound and when the rebound  takes
place, Article 21 of the Constitution springs up to action as  a  protector.
That is why,  an  investigator  to  a  crime  is  required  to  possess  the
qualities of patience  and  perseverance  as  has  been  stated  in  Nandini
Sathpaty v. P. L. Dani[14].

37.   In Delhi Judicial Services Association v. State of Gujarat[15],  while
dealing with the role of police, this Court condemned the excessive  use  of
force by the police and observed as follows:-

           “The main objectives of police is  to  apprehend  offenders,  to
           investigate crimes and to prosecute them before the  courts  and
           also to prevent commission of crime and above all to ensure  law
           and order to protect  citizens’  life  and  property.   The  law
           enjoins the police to be scrupulously fair to the  offender  and
           the Magistracy is to ensure fair investigation and fair trial to
           an offender.  The purpose and object of  Magistracy  and  police
           are complementary to each other.  It is unfortunate  that  these
           objectives have remained unfulfilled even after 40 years of  our
           Constitution.   Aberrations  of  police  officers   and   police
           excesses in dealing with the law and order situation  have  been
           subject of adverse comments from this  Court  as  well  as  from
           other courts but it has failed to have any corrective effect  on
           it.  The police has  power  to  arrest  a  person  even  without
           obtaining a warrant of arrest from a court.   The  amplitude  of
           this power casts an obligation on the police and it must bear in
           mind, as held by this Court that if a person is arrested  for  a
           crime, his constitutional and fundamental  rights  must  not  be
           violated.”

38.    It is imperative to state that it  is  the  sacrosanct  duty  of  the
police authorities to remember that  a  citizen  while  in  custody  is  not
denuded of his fundamental right under Article 21 of the Constitution.   The
restrictions imposed have the sanction of law  by  which  his  enjoyment  of
fundamental right is curtailed but his basic human rights are  not  crippled
so that the police officers can treat him in  an  inhuman  manner.   On  the
contrary, they are under obligation to protect his human rights and  prevent
all forms of atrocities.  We may hasten to add that  a  balance  has  to  be
struck and, in this context, we may fruitfully quote a passage  from  D.  K.
Basu (supra): -

            “There can be no gainsaying that freedom of an  individual  must
            yield to the security of the State.   The  right  of  preventive
            detention of individuals in the  interest  of  security  of  the
            State in various situations prescribed under different  statutes
            has been upheld by the Courts.  The  right  to  interrogate  the
            detenus, culprits or arrestees in the interest  of  the  nation,
            must take precedence over  an  individual’s  right  to  personal
            liberty.   …….…The action of the State, however, must be “right,
            just and fair”.  Using any form of torture  for  extracting  any
            kind of information would neither be ‘right nor just  nor  fair’
            and, therefore,  would  be  impermissible,  being  offensive  to
            Article 21.  Such a crime-suspect  must  be  interrogated-indeed
            subjected to sustain and scientific interrogation-determined  in
            accordance with the provisions of law.  He cannot,  however,  be
            tortured or subjected to third degree methods or eliminated with
            a view to  elicit  information,  extract  confession  or  derive
            knowledge   about   his   accomplishes,   weapons   etc.     His
            constitutional right cannot be abridged  except  in  the  manner
            permitted by law, though in the  very  nature  of  things  there
            would be qualitative difference in the method  of  interrogation
            of such a person as compared to an ordinary criminal.”

39.   In the case at hand, the appellant, while in  custody,  was  compelled
to hold a  placard  in  which  condemning  language  was  written.   He  was
photographed with the said placard and the photograph was made  public.   It
was also filed in a revenue proceeding by  the  7th  respondent.   The  High
Court has recorded that the competent authority of the State  has  conducted
an enquiry and found the erring officers to be guilty.  The High  Court  has
recorded the findings in the favour of the appellant but left him to  submit
a representation to the concerned authorities.   This  Court,  as  has  been
indicated earlier, granted an opportunity to the  State  to  deal  with  the
matter in an appropriate manner  but  it  rejected  the  representation  and
stated that it is not a case of defamation.  We may at once clarify that  we
are not at all concerned with defamation as postulated under Section 499  of
the IPC.  We are really concerned how in a country governed by rule  of  law
and where Article 21 of the  Constitution  is  treated  to  be  sacred,  the
dignity and social reputation of a citizen has been affected.

40.   As we perceive, from the admitted  facts  borne  out  on  record,  the
appellant has been humiliated.  Such  treatment  is  basically  inhuman  and
causes mental trauma.    In “Kaplan  &  Sadock’s  Synopsis  of  Psychiatry”,
while  dealing  with  torture,  the  learned  authors   have   stated   that
intentional physical and psychological torture of one human by  another  can
have emotionally damaging effects comparable to, and  possibly  worse  than,
those seen with  combat  and  other  types  of  trauma.   Any  psychological
torture inflicts immense mental pain.  A mental  suffering  at  any  age  in
life can carry the brunt and may have  nightmarish  effect  on  the  victim.
The hurt develops a sense of insecurity, helplessness and  his  self-respect
gets gradually  atrophied.   We  have  referred  to  such  aspects  only  to
highlight that in the case at hand, the  police  authorities  possibly  have
some kind of sadistic pleasure or to “please someone”  meted  the  appellant
with this kind of treatment.  It is not to be forgotten  that  when  dignity
is lost, the breath of life gets into oblivion.  In a  society  governed  by
rule of law where humanity has to be a  laser  beam,  as  our  compassionate
constitution has so emphasized,  the  police  authorities  cannot  show  the
power or prowess to vivisect and dismember the same.    When they pave  such
path, law cannot become a silent spectator.   As Pithily stated in  Jennison
v. Baker[16]:-

           “The law should not be seen to sit by limply,  while  those  who
           defy if go free, and those who seek its protection lose hope.”


41.   Presently, we shall advert to the aspect  of  grant  of  compensation.
The learned counsel for the  State,  as  has  been  indicated  earlier,  has
submitted  with  immense  vehemence  that  the  appellant  should  sue   for
defamation.   Our  analysis  would  clearly  show  that  the  appellant  was
tortured while he was in custody.  When  there  is  contravention  of  human
rights, the inherent concern as envisaged in Article 21 springs to life  and
enables the citizen to seek relief by taking recourse to public law remedy.

42.   In this regard, we may fruitfully refer to Nilabati  Behera  v.  State
or Orissa[17] wherein it has been held thus: -

           “A claim in public law for  compensation  for  contravention  of
           human rights and fundamental freedoms, the protection  of  which
           is guaranteed in the Constitution, is an acknowledged remedy for
           enforcement and protection of such  rights,  and  such  a  claim
           based on strict liability made by resorting to a  constitutional
           remedy provided for the enforcement of a  fundamental  right  is
           ‘distinct from, and in addition to, the remedy  in  private  law
           for damages for the tort’ resulting from  the  contravention  of
           the fundamental right.  The defence of sovereign immunity  being
           inapplicable,  and  alien  to  the  concept  of   guarantee   of
           fundamental rights, there can be no question of such  a  defence
           being available  in  the  constitutional  remedy.   It  is  this
           principle which justifies award  of  monetary  compensation  for
           contravention  of   fundamental   rights   guaranteed   by   the
           Constitution, when that is the only practicable mode of  redress
           available for  the  contravention  made  by  the  State  or  its
           servants  in  the  purported  exercise  of  their  powers,   and
           enforcement of the fundamental right is claimed by resort to the
           remedy in public law  under  the  Constitution  by  recourse  to
           Articles 32 and 226 of the Constitution.”

43.   Dr. A.S. Anand J., (as his  Lordship  then  was),  in  his  concurring
opinion, expressed that the relief of monetary  compensation,  as  exemplary
damages, in proceedings under Article 32  by  the  Supreme  Court  or  under
Article  226  by  the  High  Courts  for  established  infringement  of  the
indefeasible right guaranteed under Article 21  is  a  remedy  available  in
public law and is based on the strict liability  for  contravention  of  the
guaranteed basic and indefeasible rights of the  citizen.   The  purpose  of
public law is not only to civilize public  power  but  also  to  assure  the
citizen that they live under a legal system  which  aims  to  protect  their
interests and preserve their rights.  Therefore, when the court  moulds  the
relief by granting ‘compensation’ in proceedings under  Article  32  or  226
seeking enforcement or protection of fundamental rights, it  does  so  under
the public law by way of penalizing the wrongdoer and fixing  the  liability
for the public wrong on the State which has failed in  its  public  duty  to
protect the fundamental rights of the citizen.  The payment of  compensation
in such cases is not to be understood, as it is generally  understood  in  a
civil action for damages under the private law but in the broader  sense  of
providing relief by an order of making ‘monetary amends’  under  the  public
law for the wrong done due to breach of public duty, by not  protecting  the
fundamental rights of the citizen.  The compensation is  in  the  nature  of
‘exemplary damages’ awarded against the wrongdoer  for  the  breach  of  its
public law duty and is independent of the rights available to the  aggrieved
party to claim compensation under the private law  in  an  action  based  on
tort, through a suit instituted in a court of competent jurisdiction  or/and
prosecute the offender under the penal law.

44.   In Sube Singh v. State of Haryana[18],  a  three-Judge  Bench  of  the
Apex Court,  after  referring  to  its  earlier  decisions,  has  opined  as
follows: -

           “It is thus now well settled that award of compensation  against
           the State is an appropriate and effective remedy for redress  of
           an established infringement of a fundamental right under Article
           21, by a public servant.   The  quantum  of  compensation  will,
           however, depend upon the facts and circumstances of  each  case.
           Award of such compensation (by way of public  law  remedy)  will
           not come in the way of the aggrieved person claiming  additional
           compensation in a civil court, in enforcement of the private law
           remedy in tort, nor come  in  the  way  of  the  criminal  court
           ordering  compensation  under  Section  357  of  Code  of  Civil
           Procedure.”

45.   At this stage, we may fruitfully refer  to  the  decision  in  Hardeep
Singh v. State of Madhya Pradesh.[19]   The appellant  therein  was  engaged
in running a coaching centre where students were given  tuition  to  prepare
for  entrance  test  for  different  professional   courses.    On   certain
allegation, he was arrested  and  taken  to  police  station  where  he  was
handcuffed by the police without there being any valid reason.  A number  of
daily newspapers published the appellant’s photographs  and  on  seeing  his
photograph in handcuffs, the appellant’s elder sister was  so  shocked  that
she expired.  After a long and delayed trial, the appellant, Hardeep  Singh,
filed a writ petition before the High Court of Madhya  Pradesh  at  Jabalpur
that the prosecution purposefully caused delay in conclusion  of  the  trial
causing harm to his dignity and reputation.  The learned single  Judge,  who
dealt with the matter, did not find any ground to  grant  compensation.   On
an appeal being preferred, the Division Bench observed that  an  expeditious
trial ending in acquittal  could  have  restored  the  appellant’s  personal
dignity but the  State  instead  of  taking  prompt  steps  to  examine  the
prosecution witnesses delayed the trial for five long years.   The  Division
Bench further held there was no warrant for putting  the  handcuffs  on  the
appellant which adversely affected his dignity.  Be it noted,  the  Division
Bench granted compensation of Rs. 70,000/-.  This Court, while dealing  with
the facet of compensation, held thus:-

           “Coming, however, to the issue of compensation, we find that  in
           light of the findings arrived at  by  the  Division  Bench,  the
           compensation of Rs. 70,000/-  was  too  small  and  did  not  do
           justice to the  sufferings  and  humiliation  undergone  by  the
           appellant.  In the facts and circumstances of the case, we  feel
           that a sum of Rs. 2,00,00/-  (Rupees  Two  Lakhs)  would  be  an
           adequate compensation for the appellant and would meet the  ends
           of justice.  We, accordingly, direct the State of Madhya Pradesh
           to pay to the appellant the sum  of  Rs.  2,00,000/-(rupees  Two
           Lakhs) as compensation.  In  case  the  sum  of  Rs.70,000/-  as
           awarded by  the  High  Court,  has  already  been  paid  to  the
           appellant, the State would naturally pay only the balance amount
           of Rs.1,30,000/- (Rupees One Lakh thirty thousand)”.

Thus, suffering and humiliation were highlighted and amount of  compensation
was enhanced.

46.   On a reflection of the facts of the case,  it  is  luculent  that  the
appellant had undergone mental torture at the  hands  of  insensible  police
officials.  He might have agitated to ameliorate the cause of the  poor  and
the downtrodden, but, the social humiliation that has been meted to  him  is
quite capable of destroying the heart of his philosophy.  It has  been  said
that philosophy has the power to sustain a man’s courage.   But  courage  is
based on self-respect and when self-respect is dented, it is difficult  even
for a very strong minded person  to  maintain  that  courage.   The  initial
invincible mind paves the path of corrosion. As is perceptible, the  mindset
of the protectors of law appears to cause torment and insult  and  tyrannize
the man who is helpless in custody.  There can be no trace of doubt that  he
is  bound  to  develop  stress  disorder  and  anxiety  which  destroy   the
brightness and strength of the will power.  It has been  said  that  anxiety
and stress are  slow poisons.  When torment is added, it  creates  commotion
in the mind and the slow poisons get activated.  The inhuman  treatment  can
be well visualized when the appellant came out from  custody  and  witnessed
his photograph being circulated with the self-condemning  words  written  on
it.  This withers away the very essence of life as enshrined  under  Article
21 of the Constitution.  Regard being had to the various  aspects  which  we
have analysed and taking note of the totality of  facts  and  circumstances,
we are disposed to think that a sum of Rs.5.00 lacs (Rupees five lacs  only)
should be granted towards compensation to the  appellant  and,  accordingly,
we so direct.  The said amount shall be paid by the respondent State  within
a period of six weeks and be realized from  the  erring  officers  in  equal
proportions from their  salary  as  thought  appropriate  by  the  competent
authority of the State.

47.   Consequently, the appeal is allowed to  the  extent  indicated  above.
However, in the facts and circumstances of  the  case,  there  shall  be  no
order as to costs.




                                                             ……………………………….J.
                                                       [K. S. Radhakrishnan]



                                                             ……………………………….J.
                                                               [Dipak Misra]

New Delhi;
August  03, 2012.
-----------------------
[1]    AIR 1997 SC 610 : (1997) 1 SCC 416
[2]    (1994) 4 SCC 260
[3]   [4] (1990) 3 SCC 119
[5]    (1985) 4 SCC 677
[6]    (1981) 1 SCC 608
[7]    (1964) 1 SCR 332
[8]    (1877) 94 US 113
[9]    AIR 1995 SC 117
[10]     (1989) 1 SCC 494
[11]    55 ALR 171
[12]    (1983) 1 SCC 124
[13]   AIR 2010 SC 1974
[14]   2012 (6) SCALE 190
[15]    AIR 1978  SC 1025
[16]    (1991) 4 SCC 406
[17]    (1972) 1 All ER 997, 1006
[18]   (1993) 2 SCC 746
[19]   AIR 2006 SC 1117
[20]    (2012) 1 SCC 748

Thursday, August 2, 2012

We have, therefore, no option but to set aside the carving out of a sub- quota of 4.5% in favour of backward classes belonging to minorities out of the 27% reservation for OBCs in both the OMs dated 22.12.2011 and the Resolution dated 22.12.2011. We do so accordingly.


HON'BLE THE CHIEF JUSTICE SRI MADAN B. LOKUR AND THE HON'BLE SRI JUSTICE SANJAY                

PIL Nos.1 of 2012

28-05-2012

R. Krishnaiah

Union of India, Represented by its Secretary,General Administration
Department, New Delhi & others.

!Name of the petitioner

^Name of the respondent

?Cases referred

1 2004 (5) ALT 634
2 (2008) 6 SCC 1
3 AIR 1969 SC 1
4 1994 Supp (1) SCC 324
5 AIR 1976 SC 490
6 AIR 2005 SC 162
7 (1974) 1 SCC 19
8 2010 (2) ALT 357
9 AIR 1966 SC 1942
10 AIR 1991 SC 1933
11 AIR 1958 Kerala 290
12 AIR 1955 SC 549
13 1995 (2) ALT 1
14 AIR 1993 SC 477
15 See State of Assam v. Basanta Kumar Das, (1973) 1 SCC 461 and D.P. Das v.  
Union of India, (2011) 8 SCC 115

ORDER: (Per Hon'ble the Chief Justice Sri Madan B. Lokur)


        The challenge in this batch of writ petitions is to two Office Memoranda,
both dated 22.12.2011. There is also challenge to a Resolution dated 22.12.2011
which relates to one of the Office Memoranda.
2.      The first Office Memorandum (for short the first OM) and the accompanying
Resolution concern the Central Educational Institutions (Reservation in
Admission) Act, 2006 (hereinafter referred to as 'the CEI Act').  The first OM
and the Resolution carve out, with effect from 1.1.2012, a sub-quota of 4.5% for
socially and educationally backward class of citizens belonging to minorities,
for reservation in admission in some central educational institutions. The
carving out is from the 27% reservation for Other Backward Classes (OBCs) who
are entitled to reservation in admission to central educational institutions.
In other words, OBCs having 27% reservation have been broken up into two
segments: one segment of 22.5% reservation for  OBCs and the second or balance
segment of 4.5% reservation for socially and educationally backward class
citizens belonging to minorities.
3.      The grievance of the petitioners relates to the following paragraph of the
first OM and the Resolution:
        From the first OM:
"The Central Government has decided to carve out, with effect from the 1st
January, 2012 a sub-quota of 4.5 per cent (four point five) for socially and
educationally backward classes of citizens belonging to minorities, as defined
in clause (c) of Section 2 of the National Commission for Minorities Act, 1992
from within the 27 per cent reservation for Other Backward Classes as notified
by the Government in accordance with O.M.No.36012/22/93-Estt. (SCT), dated
8.9.1993 from time to time, referred in the preceding paragraph subject to the
same conditions and restrictions mentioned therein."

        From the Resolution:

"Now therefore, the Government of India in the Ministry of Human Resource
Development hereby clarifies that reservations in admission to the educational
institutions as elucidated in its earlier Resolution would continue to apply
subject to a sub-quota of 4.5 per cent (four point five) for minorities, as
defined in clause (c) of Section 2 of the National Commission for Minorities
Act, 1992 out of the 27 per cent reservation for Other Backward Classes, in
accordance with the Office Memorandum as modified by those Ministries referred
to in the third paragraph from time to time, as applicable for the purposes of
implementing reservation in admission to Central Educational Institutions as
defined in the CEI Act, 2006."

4.      The second Office Memorandum (for short the second OM) carves out a
similar sub-quota of 4.5% reservation for minorities in appointments and posts
under the Government of India. The paragraph objected to by the petitioners
reads as follows:
"The Government of India had set up the National Commission for Religious and
Linguistic Minorities to suggest criteria for the identification of the socially
and economically backward sections amongst Religious and Linguistic Minorities
and to recommend measures for their welfare, including reservation in Government
employment.  The Commission submitted its report to the Government on 10th May,
2007, wherein it had, inter alia, recommended creation of a sub-quota for
minorities from within the reservation of 27% available to OBCs, in Government
employment.

The Government have carefully considered the above recommendation and it has
been decided to carve out a sub-quota of 4.5% for minorities, as defined under
Section 2(c) of the National Commission for Minorities Act, 1992, from within
the 27% reservation for OBCs as notified by the aforesaid O.M.  The
castes/communities of the said minorities which are included in the Central list
of OBCs, notified State-wise from time to time by the Ministry of Social Justice
and Empowerment, shall be covered by the said sub-quota."


5.      The principal contention of the petitioners is that the sub-quota
reservation is minority religion-based and therefore it is in violation of
Article 15(1) of the Constitution with regard to the first OM and Article 16(2)
of the Constitution with regard to the second OM. It is contended that the sub-
quota reservation is not saved by Article 15(5) of the Constitution with regard
to the first OM nor is it saved by Article 16(4) of the Constitution with regard
to the second OM.  We agree with learned counsel for the petitioners.
Statutory Provisions:

6.      The CEI Act provides for reservation in admission of students belonging to
the Scheduled Castes, the Scheduled Tribes and Other Backward Classes of
citizens in certain central educational institutions.
7.      Section 3 of the CEI Act provides that out of the annual permitted
strength in each branch of study or faculty, 15% of the seats shall be reserved
for the Scheduled Castes, 7.5% of the seats shall be reserved for the Scheduled
Tribes and 27% of the seats shall be reserved for the OBCs. Section 3 of the CEI
Act reads as follows:

"3. Reservation of seats in Central Educational Institutions
The reservation of seats in admission and its extent in a     Central
Educational Institution shall be provided in the following manner, namely:

(i) out of the annual permitted strength in each branch of study or faculty,
fifteen per cent seats shall be reserved for the Scheduled Castes;

(ii) out of the annual permitted strength in each branch of study or faculty,
seven and one-half per cent seats shall be reserved for the Scheduled Tribes;

(iii) out of the annual permitted strength in each branch of study or faculty,
twenty-seven per cent seats shall be reserved for the Other Backward Classes."

8.      The expression "Other Backward Classes" is defined in  Section 2(g) of the
CEI Act as meaning a class or classes of citizens who are socially and
educationally backward and are so determined by the Central Government. Section
2(g) of the CEI Act reads as follows:
        "2. Definitions
(g) "Other Backward Classes" means the class or classes of citizens who are
socially and educationally backward, and are so determined by the Central
Government;"

9.      The CEI Act does not provide the procedure for determining the "Other
Backward Classes" who are socially and educationally backward. A separate
statute called the National Commission for Backward Classes Act, 1993 (for short
'the NCBC Act') provides for the functions and powers of the National Commission
for Backward Classes (NCBC) in Chapter 3 thereof. Section 9 of the NCBC Act
requires the NCBC to examine requests for inclusion of any class of citizens as
a backward class and to hear complaints of over-inclusion or under-inclusion of
any backward class in the lists prepared by the Central Government.
10.     Section 9 of the NCBC Act reads as follows:
"9. Functions of the Commission

(1) The Commission shall examine requests for inclusion of any class of citizens
as a backward class in the lists and hear complaints of over-inclusion or under-
inclusion of any backward class in such lists and tender such advice to the
Central Government as it deems appropriate.

(2) The advice of the Commission shall ordinarily be binding upon the Central
Government."

11.     The word "lists" is defined in Section 2(c) of the NCBC Act and this reads
as follows:
        "2. Definitions
(c) "lists" means lists prepared by the Government of India from time to time
for purposes of making provision for the reservation of appointments or posts in
favour of backward classes of citizens which, in the opinion of that Government,
are not adequately represented in the services under the Government of India and
any local or other authority within the territory of India or under the control
of the Government of India;"

12.     Section 11 of the NCBC Act provides for a periodic revision of the lists
by the Central Government and this reads as follows:

"11. Periodic revision of lists by the Central Government

(1) The Central Government may at any time, and shall, at the expiration of ten
years from the coming into force of this Act and every succeeding period of ten
years thereafter, undertake revision of the lists with a view to excluding from
such lists those classes who have ceased to be backward classes or for including
in such lists new backward classes.

(2) The Central Government shall, while undertaking any revision referred to in
sub-section (1), consult the Commission."


13.     We have been informed by learned counsel for the petitioners that no
definitive revision has been undertaken of the lists prepared by the Central
Government nor has the NCBC been consulted in this regard.  This may or may not
be correct, but we are not concerned with the revision of lists for the purposes
of these cases.
14.     The sum and substance of the above statutory provisions is that the
Central Government prepares lists of "Other Backward Classes" or OBCs after
consultation with the NCBC, which is mandatorily required.  That the requirement
is mandatory has been so held by a Full Bench of this Court in T. Muralidhar v.
State of Andhra Pradesh1 in relation to the Andhra Pradesh Commission for
Backward Classes Act, 1993 which is in pari materia with the NCBC Act. The lists
so prepared are important for two purposes, namely, for making reservations of
appointments or posts in favour of OBCs which are not adequately represented in
the services, inter alia, under the Government of India and secondly for
reservation of seats in admission to central educational institutions under the
CEI Act.
15.     The minorities, mentioned in both the OMs and in the Resolution that we
are concerned with are those notified by the Central Government as required by
Section 2(c) of the National Commission for Minorities Act, 1992 (hereinafter
referred to as 'the NCM Act').  The minorities so notified through a
notification dated 23.10.1993 are:
(1) Muslims,
(2) Christians,
(3) Sikhs,
(4) Buddhists, and
(5) Zoroastrians (Parsis)


16.     Therefore, the effect of the first OM is that a sub-quota of 4.5% has been
carved out from the 27% reservation for the OBCs for admission to some central
educational institutions covered by the CEI Act.  That 4.5% quota consists of
socially and educationally backward class citizens who are either Muslims,
Christians, Sikhs, Buddhists or Zoroastrians (Parsis) as per the notification
issued under the NCM Act.
17.     The second OM, as mentioned above, proceeds on the same lines as the first
OM. The only difference being that the 4.5% sub-quota is for the same minorities
who are socially and economically backward and is for appointments or posts
under the Central Government.  The sub-quota is based on the recommendations of
the National Commission for Religious and Linguistic Minorities (NCRLM), which
submitted its report on 10.5.2007. The sub-quota has not been determined under
the NCBC Act.
18.     At this stage, it may be mentioned that the Supreme Court in Ashoka Kumar
Thakur v. Union of India2 upheld the constitutional validity of the CEI Act.  By
the same judgment, the Supreme Court also upheld the constitutional validity of
Article 15(5) of the Constitution inserted by the 93rd Amendment to the
Constitution to the extent that it permits reservation for socially and
educationally backward classes in central educational institutions subject to
the exclusion of the creamy layer of OBCs.   In this view of the matter, the
scope of our enquiry becomes somewhat limited and we are confined only to
determining whether the sub-quota of 4.5% for the minorities in both the OMs is
constitutionally permissible or not.
Principal submission:

19.     The principal contention of learned counsel for the petitioners is that by
providing a sub-quota for minorities, the Central Government has clearly
violated the provisions of Article 15(1) and Article 16(2) of the Constitution.
Article 15(5) and Article 16(4) of the Constitution do not save the actions of
the Central Government.
        For convenience, Articles 15(1) and 15(5) of the Constitution are
reproduced hereinbelow:
"15. Prohibition of discrimination on grounds of religion, race, caste, sex or
place of birth
(1) The State shall not discriminate against any citizen on grounds only of
religion, race, caste, sex, place of birth or any of them.

        Xxxxxxx

(5) Nothing in this article or in sub-clause (g) of clause (1) of article 19
shall prevent the State from making any special provision, by law, for the
advancement of any socially and educationally backward classes of citizens or
for the Scheduled Castes or Scheduled Tribes insofar as such special provisions
relate to their admission to educational institutions including private
educational institutions, whether aided or unaided by the State, other than the
minority educational institutions referred to in clause (1) of article 30.

Article 16(2) and Article 16(4) of the Constitution are reproduced hereinbelow:
"16. Equality of opportunity in matters of public employment
(1) xxxxxx.

(2) No citizen shall, on grounds only of religion, race, caste, sex, descent,
place of birth, residence or any of them, be ineligible for, or discriminated
against in respect of, any employment or office under the State.

(3) xxxxxx

(4) Nothing in this article shall prevent the State from making any provision
for the reservation of appointments or posts in favour of any backward class of
citizens which, in the opinion of the State, is not adequately represented in
the services under the State."


20.     Generally arguing in support of the OMs, learned Assistant Solicitor
General submits that since they have been issued for the benefit of socially and
educationally backward classes of citizens, or for socially and economically
backward classes of citizens, they should not be struck down.   He has drawn our
attention to the contents of the counter affidavit filed on behalf of the
respondents wherein it is stated that both the OMs were issued as per the extant
procedure of the Government of India and, therefore, it would not be correct to
say that they have been issued contrary to law.

21.     While specifically dealing with the second OM, learned Assistant Solicitor
General refers to the observations of the NCRLM in its report dated 10.5.2007.
It is stated in Chapter X thereof to the following effect:-

"..............The Commission was of the view that ideally the criteria for
reservation should be socio-economic backwardness and not religion or caste.
Further, Article 16(4) should be the basis for providing reservation benefits to
minority groups who are socially and economically backward.  Reservation should
be provided only as a short term, time-bound measure for enabling greater
participation, both in education and employment. As we have mentioned earlier,
the lists of SC/ST and OBC have not been scientifically prepared either on the
basis of a proper survey or reliable data on socio-economic status of a
particular caste or class. Therefore, the entire system of reservation,
including that for SCs/STs and OBCs needs to be overhauled.  Reservation as
available to SCs and STs is open-ended as it is available to all belonging to
the category irrespective of income, educational and economic status. OBCs enjoy
27 percent reservation in employment, though creamy layer is excluded.  The
norms and methodology adopted, as pointed out in Chapter-VIII is full of
anomalies and hence amenable to large-scale abuse. For this reason, the better
off among the groups take advantage of reservation at the cost of socially and
economically backward and deprived.  It is, therefore, necessary to limit
benefits of reservation to the socially and economically backward only.   Since
BPL lists are prepared on the basis of social/educational and economic criteria,
they are more scientific.  They are also revised periodically.  BPL lists
should, therefore, be made eligible for grant of reservation without distinction
on caste, class, group or religion basis."

Findings on the principal challenge:
22.     The Constitution Bench held, in no uncertain terms, in Triloknath Tiku v.
State of Jammu & Kashmir3 with reference to Article 16(2) of the Constitution as
follows:
"Article 16 in the first instance by clause (2) prohibits discrimination on the
ground, inter alia, of religion, race, caste, place of birth, residence and
permits an exception to be made in the matter of reservation in favour of
backward classes of citizens. The expression "backward class" is not used as
synonymous with "backward caste" or "backward community". The members of an    
entire caste or community may in the social, economic and educational scale of
values at a given time be backward and may on that account be treated as a
backward class, but that is not because they are members of a caste or
community, but because they form a class. In its ordinary connotation the
expression "class" means a homogenous section of the people grouped together
because of certain likenesses or common traits, and who are identifiable by some
common attributes such as status, rank, occupation, residence in a locality,
race, religion and the like. But for the purpose of           Art 16 (4) in
determining whether a section forms a class, a test solely based on caste,
community, race, religion, sex, descent, place of birth or residence cannot be
adopted, because it would directly offend the Constitution."

In our opinion, this statement of the law would equally apply to Article 15(1)
of the Constitution.
23.     In fact, in R. C. Poudyal v. Union of India4 Justice S.C. Agrawal held (in
paragraph 191 of the Report) in a partly dissenting opinion (with no learned
Judge disagreeing on this issue) that,
"Clause (1) of Article 15 prohibits discrimination by the State against any
citizen on the ground only of religion, race, caste, sex or any of them. Clause
(3), however, permits the State to make special provision for women and
children. Similarly, clause (4) permits the State to make special provision for
the advancement of any socially and educationally backward classes of citizens
or for the Scheduled Castes and the Scheduled Tribes. Clauses (3) and (4) do
not, however, permit making of special provisions in derogation of the
prohibition against discrimination on the ground of religion."


24.     Looked at in this light, the nub of the controversy lies in the creation
of a sub-quota for minorities alone - does this offend           Article 15(1)
or Article 16(2) of the Constitution? According to the petitioners, the sub-
quota is based entirely on religion and therefore, it should be struck down.
This appears to be so on a plain reading of both the OMs and the Resolution. The
First OM states that the 4.5% sub-quota is carved out of socially and
educationally backward classes of citizens "belonging to minorities" as defined
in Section 2(c) of the NCM Act. The Resolution and the second OM carve out a
sub-quota "for minorities". The very use of the words "belonging to minorities"
or "for minorities" indicates to us that the sub-quota has been carved out only
on religious lines and not on any other intelligible basis. The identified
minorities are Muslims, Christians, Sikhs, Buddhists and Zoroastrians (Parsis)
as per the notification issued under the provisions of the NCM Act. Absolutely
no empirical evidence is placed before us to enable us to conclude or to support
the requirement of carving out a special class of beneficiaries from the
existing backward classes.   Absolutely no material is placed before us to
demonstrate that persons belonging to the religious groups mentioned above are
more backward than any other category of backward classes or that they need any
preferential treatment as compared to other OBCs.
25.     In the absence of any material before us (and we must emphasize this), and
on the plain language of the OMs, it seems to us quite clear that the sub-quota
has been created only on grounds of religion and nothing else.   This is clearly
impermissible in view of the specific language of Article 15(1) of the
Constitution as well as Article 16(2) of the Constitution.  In the absence of
any factual basis, it seems to us that by making a special provision for
religious minorities with regard to admission in some central educational
institutions and with regard to employment in appointments and posts under it,
the Central Government has exceeded the constitutional boundaries.  Ex facie,
the petitioners must succeed on this basic ground of challenge.
26.     The next question is whether the sub-quota can be saved by resorting to
Article 15(5) and Article 16(4) of the Constitution.
Absence of any rational classification:
27.     Assuming it is permissible to identify different categories only on the
ground of religion, for such a classification to be constitutionally
permissible, it must rest upon a distinction that is substantial and not
illusory (State of Kerala v. N.M. Thomas)5.
28.     In E.V. Chinnaiah v. State of A.P.6 the Supreme Court approved the above
principle and quoted the following passage from State of Jammu and Kashmir v.
Triloki Nath Khosa7 :-
"Classification, however, is fraught with the danger that it may produce
artificial inequalities and therefore, the right to classify is hedged in with
salient restraints; or else, the guarantee of equality will be submerged in
class legislation masquerading as laws meant to govern well marked classes
characterized by different and distinct attainments. Classification, therefore,
must be truly founded on substantial differences which distinguish persons
grouped together from those left out of the group and such differential
attributes must bear a just and rational relation to the object sought to be
achieved."

29.     The question that arises in this context is whether the groups clubbed
together by the OMs are homogenous or not. Clubbing certain minorities such as
Muslims, Christians, Sikhs, Buddhists and Zoroastrians (Parsis) into one group
does not per se lead to any conclusion of homogeneity among them - on the
contrary, the presumption is of diversity.  The presumption is confirmed by the
report of the NCRLM which brings out the heterogeneity among the various
minorities. For example, the literacy rate amongst these religious communities
shows a variation between 59.1% and 80.3% (other than Zoroastrians).  Similarly,
the educational levels of these religious communities shows a wide variation at
all levels, starting from the primary level going up to the graduation level.
Finally, economic indicators such as housing, lighting, availability of drinking
water, availability of toilet facilities and occupation figures also show a wide
variation in the economic field among these religious minorities.
30.     In T. Muralidhar Rao v. State of Andhra Pradesh8 a Bench of seven learned
Judges of this Court concluded in paragraph 204(c) of the Report as follows:
"Where the petitioner presents a prima facie case of hostile or invidious
discrimination in a factual matrix where the monopoly of information/material is
with the State, the burden of justifying the apparent discriminatory State
action as falling within the constitutionally permitted area of classification
{in this case, for affirmative action under Articles 14, 15 (4) and 16 (4)}
shifts to the State."

31.     During the course of his submissions, the learned Assistant Solicitor
General did not advert to this aspect of the matter and even the counter
affidavit filed by the respondents does not enlighten us on this issue at all.
In fact, we must express our anguish at the rather casual manner in which the
entire issue is taken by the Central Government. No evidence has been shown to
us by the learned Assistant Solicitor General to justify the classification of
these religious minorities as a homogenous group or as more backward classes
deserving of some special treatment.   We must, therefore, hold that Muslims,
Christians, Sikhs, Buddhists and Zoroastrians (Parsis) do not form a homogenous
group but a heterogeneous group.
32.   We may add that the report of the NCRLM, on which the learned Assistant
Solicitor General places reliance completely defeats his argument.   The NCRLM
has stated in the passage quoted above that "the lists of SC/ST and OBC have not
been scientifically prepared either on the basis of a proper survey or reliable
data on socio-economic status of a particular caste or class.  Therefore, the
entire system of reservation, including that for SC/STs and OBCs needs to be
overhauled."  This being the position, we find it difficult to appreciate any
rational basis for the Central Government in making the classification for
preferential treatment between non-minorities and minorities.
33.     On the basic principles of reasonable or rational classification, the OMs
and the Resolution cannot be sustained.  Disparate groups are sought to be
clubbed together on religious lines and without any homogeneity amongst them.

Other challenges to the first OM:
34.     The first contention of learned counsel for the petitioners under this
sub-heading is that the Government of India has not followed the mandatory
procedure prescribed by the NCBC Act for identifying a backward class of persons
for preferential treatment.
35.     In B.N. Nagarajan v. State of Mysore9, the Supreme Court observed as
follows:
"...........It is hardly necessary to mention that if there is a statutory rule
or an act on the matter, the executive must abide by that act or rule and it
cannot in exercise of the executive power under Art. 162 of the Constitution
ignore or act contrary to that rule or act."

36.     Similarly, in State of Sikkim v. Dorjee Tshering Bhutia10, the Supreme
Court held in paragraph 15 of the Report:
"The executive power of the State cannot be exercised in the field which is
already occupied by the laws made by the legislature. It is settled law that any
order, instruction, direction or notification issued in exercise of the
executive power of the State which is contrary to any statutory provisions, is
without jurisdiction and is a nullity.........................."

37.     Reference may also be made to Rev. Fr. Joseph Valamangalam v. State of
Kerala11 in which the High Court relied upon Ram Jawaya v. State of Punjab12 to
the effect that:-
".................ordinarily the executive power connotes the residue of
governmental functions that remain after legislative and judicial functions are
taken away and the executive powers of a State upon which the State Legislature
is competent to legislate and are not confined to matters over which legislation
has already been passed. ...."

38.     The aforesaid decisions, and others, were considered by a Full Bench of
this Court in A.P. State Backward Class Welfare Association v. A.P. State.
Backward Classes Welfare Department13 and it was held with reference to the A.P.
Commission for Backward Classes Act, 1993 that backward classes can only be  
identified in accordance with the procedure prescribed under the A.P. Commission
for Backward Classes Act, 1993 and not otherwise.  This was affirmed in T.
Muralidhar.  The principle laid down by these decisions is equally applicable to
NCBC Act, which is pari materia with the A.P. Commission for Backward Classes
Act, 1993.
39.     It is true that the Supreme Court has permitted the sub-classification of
backward classes into more backward classes.  Indeed, in Indra Sawhney v. Union
of India14 it is held that there is no constitutional bar to the classification
of backward classes into backward classes and more backward classes for the
purposes of Article 16(4) of the Constitution.  But the fact remains that there
is a statutorily prescribed mode for identifying backward classes, namely
through the NCBC Act, and therefore that procedure must mandatorily be followed.
The Central Government cannot unilaterally add to the list of backward classes
nor can it cull out a more backward class from the list, without reference to
the NCBC.
40.     In the case at hand, what the Central Government has essentially done is
to cull out religious minorities - Muslims, Christians, Sikhs, Buddhists and
Zoroastrians (Parsis) and "designate" them as more backward amongst the Other
Backward Classes. In view of the law laid down, in our opinion, one of the
reasons why the OMs should be struck down is that while issuing them, the NCBC
has been totally ignored and by-passed by the Central Government in culling out
some categories of citizens from the generic class of OBCs. This is
impermissible. The statutory function of the NCBC (under Section 9(1) of the
NCBC Act) is to examine requests for inclusion of any class of citizens as a
backward class, formulate a list of backward classes and advise the Central
Government in this regard.  This statutory function cannot be given a go-bye -
the NCBC Act does not provide for it.   On the contrary, in terms of Section
9(2) of the NCBC Act, the advice of the NCBC shall ordinarily be binding upon
the Central Government.  It is only thereafter that the Central Government may
prepare lists for the Scheduled Castes, the Scheduled Tribes and Other Backward
Classes for making provision for reservations.
41.     Section 11 of the NCBC Act provides for the periodic revision of lists by
the Central Government.  In essence, therefore, a reading of Section 9 and
Section 11 of the NCBC Act indicates that the statute occupies the legislative
field and the Central Government cannot, unilaterally, issue an OM identifying a
backward class of citizens for inclusion in the lists to be prepared by it or to
identify a backward class of citizens already included in the list for any
preferential treatment. As mentioned above, the advice of the NCBC is
mandatorily required to be taken and since that has not been taken, the
procedure adopted by the Central Government while issuing the first OM is
clearly faulty.  For this reason and applying the law laid down by the Supreme
Court, the portion of the first OM objected to by the petitioners ought to be
struck down.
42.     The second contention of learned counsel for the petitioners is that the
OMs ought to be struck down because there is absolutely no indication whatsoever
of the basis on which a sub-quota of 4.5% has been carved out from the 27%
reservation for OBCs.  In response, the only basis indicated in the counter
affidavit is that as per the report of the Mandal Commission, 52% of the total
population consists of OBCs as per the caste census held in 1931.   It is stated
that out of 52% of the OBCs, the non-Hindu population constitutes 8.4% thereof
and that can be taken to be the minority communities. Therefore, from the 27%
reservation for OBCs, the pro-rata minority communities work out to
approximately 4.5%.  Unfortunately, it seems to us that the huge demographic
changes that have taken place have not been considered by the Central
Government.
43.     According to the petitioners, if the classification is made on the basis
of the castes/communities identified by the Mandal Commission (and not on the
basis of the population), then as per the report of the NCRLM dated 10.5.2007,
the OBC lists contain a total of 2,150 castes and communities, out of which 76
are minority communities.   On the basis of community representation the
minority OBCs would be entitled to a sub-quota of 0.95% and not 4.5%.
44.     Therefore, we have two different methods for determination of a sub-quota
for minorities within the 27% reservation for OBCs.  Out of the two, we may have
to accept the method adopted by the Central Government, but the NCBC ought to
have been consulted in this regard in terms of Section 9 and Section 11 of the
NCBC Act, and it has not been so consulted.  There is no explanation for this,
nor is there any explanation why more recent census figures have been ignored.
45.     The third contention of learned counsel for the petitioners (with
reference to the first OM) is that Article 15(5) of the Constitution requires
that a special provision for the advancement of any socially and educationally
backward class of citizens shall be made "by law".   Such a law has not been
enacted. It is not the contention of the learned Assistant Solicitor General
that the first OM is "law" within the meaning of Article 15(5) of the
Constitution.   We are of the view that the OM is nothing more than an executive
instruction and that an executive instruction15 cannot be a substitute for the
"law" postulated by Article 15(5) of the Constitution.   That being so, there is
no law to sustain the creation of a sub-quota of 4.5% out of the 27% reservation
for OBCs. The third contention must also be accepted.


Other challenges to the second OM:
46.     The second OM has purportedly been issued consequent to the report
submitted by the NCRLM. By itself, this does not sanctify the second OM. The
NCRLM is not a statutory body and consultation with it is as efficacious or non-
efficacious a consultation as with any third party and has no relevance to the
provisions of the NCBC Act. The report may be useful per se but it has no
relevance to            Article 16(4) of the Constitution.
47.     This is clear from the terms of reference of the NCRLM which are quite
different from what Article 16(4) of the Constitution requires.  The terms of
reference of the NCRLM read as follows:-

"(a) to suggest criteria for identification of socially and     economically
backward sections among religious and linguistic minorities;

(b) to recommend measures for welfare of socially and economically backward
sections among religious and linguistic minorities, including reservation in
education and government employment;

(c) to suggest the necessary constitutional, legal and administrative
modalities, as required for the implementation of their recommendations; and to
present a Report of their deliberations and recommendations."


48.     In its report, the NCRLM has considered the criteria for social and
economic backwardness amongst religious and linguistic minorities while Article
16(4) of the Constitution requires consideration of inadequate representation in
the services of the State. The application of mind by the NCRLM is to a
completely different issue altogether and, therefore, by relying solely on the
report of the NCRLM, the Central Government has failed to apply its mind to the
constitutional requirements. This makes it difficult to accept the contention of
the learned Assistant Solicitor General that the carving out of a sub-quota is
procedurally correct or with due authority of law.  In our opinion, reliance on
the report of the NCRLM is misplaced and inappropriate.

49.     Additionally, on facts, the learned Assistant Solicitor General has not
shown us any material in the report of the NCRLM to the effect that there is
inadequate representation of a section of backward classes in employment under
the State as per the requirement of Article 16(4) of the Constitution. Indeed,
the terms of reference of the NCRLM does not postulate such a discussion. In the
absence of any empirical evidence, it is not possible to accept the view that
some minority communities are inadequately represented in appointments and posts 
under the Central Government.

Conclusion:

50.     We have, therefore, no option but to set aside the carving out of a sub-
quota of 4.5% in favour of backward classes belonging to minorities out of the
27% reservation for OBCs in both the OMs  dated 22.12.2011 and the Resolution 
dated 22.12.2011.  We do so accordingly.
51.     The writ petitions are allowed.  No costs.

_______________________  
MADAN B. LOKUR, C.J.  
__________________  
SANJAY KUMAR, J.  
28th May, 2012.

Tuesday, July 31, 2012

No remand in insolvency case = no ingredients of Order 41, Rules 23, 23-A or 25 of the Code have been attracted in the present case. The impugned order of remand is, therefore, wholly unjustified. whether the petitioners herein are bona fide purchasers for valuable consideration and in paragraphs 15 and 16 of its order the said aspect has been discussed and a finding was reached that the sales are genuine for valuable consideration and the purchasers have, not only paid the consideration, but also made constructions on the petition ‘A’ schedule property.-the insolvency petition is not maintainable under Order 30, Rule 1 of the Civil Procedure Code (for short “the Code”) and in my view what all the Order 30 of the Code is that a firm, though not a legal person, can be sued in the name of the firm. The requirement of all the partners suing the insolvency petition may not arise.


THE HON’BLE SRI  JUSTICE VILAS V. AFZULPURKAR


CRP NO. 3482 OF 2008

Date of Judgment:  1.3.2011


Between:

Kankanwar Govinda Rao and another
…Petitioners
and
          Sri Manisha Financeris and another

..Respondents

THE HON’BLE SRI  JUSTICE VILAS V. AFZULPURKAR


CRP NO. 3482 OF 2008

ORDER

          Respondents 2 and 3 in IP No. 12 of 1998 (hereinafter referred to as “IP”) had successfully established before the Additional Senior Civil Judge, Nellore that they are bona fide purchasers and the said purchase is not with a view to defeat the creditors of the first respondent in IP. The said IP was dismissed with a finding that the transaction of purchase by the respondents 2 and 3 in IP under two sale deeds dated 2.5.1998, registered on 6.5.1998, are bona fide sales by the first respondent in IP. Since the IP was dismissed, an appeal was filed before the learned Prl. District Judge, Nellore in AS NO. 160 of 2005. The lower appellate Court has set aside the order of Insolvency Court and remitted the IP for fresh consideration. Aggrieved thereby, the respondents 2 and 3 in IP i.e., the purchasers from first respondent in IP, have preferred this revision.
Heard Mr. P. Sridhar Reddy, learned counsel for revision petitioners. Though the first respondent was served by substitute service as per the orders of this Court, nobody appears for him. The second respondent appears through a counsel, but he is the vendor of the revision petitioners and he is sailing and supporting the revision petitioners.
The contention of the learned counsel for the revision petitioners is that the lower appellate Court has set aside the order of the Insolvency Court without there being any proper adjudication and he, in fact, questions the necessity of remanding the matter, when there are clear findings by the Insolvency Court. The said contention appears to be justified in view of the fact that the Insolvency Court under point No.2 had considered the very same question as to whether the petitioners herein are bona fide purchasers for valuable consideration and in paragraphs 15 and 16 of its order the said aspect has been discussed and a finding was reached that the sales are genuine for valuable consideration and the purchasers have, not only paid the consideration, but also made constructions on the petition ‘A’ schedule property. The Insolvency Court also found that there is no collusion between the revision petitioners and the first respondent in IP. However, the lower appellate Court, while considering the appeal, has referred that, “there is no discussion or determination of the issue as to whether the transaction was with an intent to defeat or delay the creditor or body of creditors.”  This appears to be totally in correct in view of the findings reached by the Insolvency Court referred to above. Apparently the lower appellate court has remitted the IP for fresh consideration without noticing the findings reached by the Insolvency Court as referred to above.  That apart, no ingredients of Order 41, Rules 23, 23-A or 25 of the Code have been attracted in the present case. The impugned order of remand is, therefore, wholly unjustified.
I am also, prima facie, not impressed with the other aspect raised in the matter that the insolvency petition is not maintainable under Order 30, Rule 1 of the Civil Procedure Code (for short “the Code”) and in my view what all the Order 30 of the Code is that a firm, though not a legal person, can be sued in the name of the firm. The requirement of all the partners suing the insolvency petition may not arise. However, that defect now does not stand subsisting in view of the fact that in the appeal the other partner has been impleaded.
The revision petition is allowed, the impugned order is set aside and the appeal shall stand restored to the file of the learned Prl. District Judge, Nellore. The learned Judge shall hear and decide the appeal on merits and dispose of the same expeditiously. No costs.

_________________________
VILAS V. AFZULPURKAR, J
Dt. 1.3.2011

KR