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Wednesday, March 11, 2015

Merely because the appellant has now married hardly becomes a mitigating circumstance. Likewise, the appellant cannot plead that prosecutrix is also married and having a child and, therefore, appellant should be leniently treated. It is not a case where the appellant has married the prosecutrix. Notwithstanding the same, as noted above, the High Court has already reduced the sentence from seven years rigorous imprisonment to 4 years under Section 376 of the IPC. Therefore, in any case, the appellant is not entitled to any further mercy. The appeal, accordingly, fails and is dismissed.

                                                                  REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION


                     CRIMINAL APPEAL NO(S). 230 OF 2013



|SATISH KUMAR JAYANTI LAL DABGAR            |.....APPELLANT(S)               |
|                                           |                                |
|VERSUS                                     |                                |
|STATE OF GUJARAT                           |.....RESPONDENT(S)              |



                               J U D G M E N T

A.K. SIKRI, J.


                 Though, this Court vide order  dated  18.09.2012  appointed
Mr. Parmanand Katara as Amicus Curiae, he has  not  appeared.   This  is  an
unfortunate situation and we do not appreciate the same.   However,  on  our
request, Mr. Mohan Pandey, learned counsel who  was  present  in  the  Court
pertaining to other case agreed to assist the Court.  He was given  time  to
go through and prepare the matter.  Thereafter, the matter  was  heard  when
he was fully ready with the same.

2)    This appeal arises out of the judgment dated 04.04.2011 passed by  the
High Court of Gujarat in Criminal  Appeal  No.2158/2005,  whereby  the  High
Court has partly allowed the said appeal.  The appellant herein was  put  on
trial and convicted for offences under Sections 363, 366 as well as  376  of
the Indian Penal Code (for short the 'IPC') and  was  sentenced  to  undergo
rigorous imprisonment for committing the aforesaid offences as under:
(a)   For committing the offence  punishable  under  Section  363  IPC,  the
trial court sentenced him to undergo imprisonment  for  a  period  of  three
years and also imposed a fine of Rs.2,000/- with the clause that in  default
of payment of fine, the appellant will have to undergo  simple  imprisonment
for a period of one month.
(b)   Qua the conviction recorded for the offence punishable  under  Section
366 of the IPC,  sentenced  imposed  by  the  trial  court  was  five  years
imprisonment with fine of Rs.3,000/- and in  default  of  payment  of  fine,
sentenced to undergo simple imprisonment for a period of two months.
(c)   For committing the offence punishable under Section 376  of  the  IPC,
the appellant was imposed rigorous imprisonment for a period of seven  years
and also fine of  Rs.45,000/-  with  the  stipulation  that  in  the  event,
appellant defaults in paying the fine,  he  would  have  to  undergo  simple
imprisonment for a period of one year.

      The aforesaid amount of Rs.45,000/-, if payable by  the  appellant  as
fine, was ordered to be paid to the  victim  as  a  compensation.   All  the
sentences were to run concurrently.

3)    In the  appeal  preferred  by  the  appellant  against  the  aforesaid
conviction, the High Court has affirmed the conviction, as accorded  by  the
trial court.  However, at the same time, it has  modified  the  sentence  by
reducing it to rigorous imprisonment for a period of 4 years instead  of  7
years for the offence punishable under Section 376 of the  IPC.   With  this
solitary modification resulting into partial allowing of  the  appeal,  rest
of the  judgment  and  sentence  dated  15.09.2005  passed  by  the  learned
Additional Sessions  Judge,  Sabarkantha,  4th  Fast  Track  Court,  Modasa,
Gujarat has been affirmed.

4)    The appellant was implicated and charged under Sections 363,  366  and
376 of the IPC under the following circumstances.
      On 01.09.2003 at about  17.15  hours  when  wife  of  the  complainant
returned from the market  purchasing  vegetable,  she  could  not  find  her
daughter at home.  On inquiring from one Hansaben, she  came  to  know  that
the knowledge that the appellant had come to their  house  and  had  a  talk
with their daughter.  Thereafter, the appellant went towards the market  and
after sometime, prosecutrix also went towards the market.   The  complainant
inquired from the shop of the uncle of the appellant and he  was  told  that
the appellant and the prosecutrix had gone towards Modasa  Bus  Stand.   The
complaint rushed to the Modasa Bus Stand, but could not find  the  appellant
or the prosecutrix there.  It is also the case of the prosecution  that  son
of the uncle of the appellant told that he had seen the  appellant  and  the
prosecutrix - Anita at the Modasa  Bus  Stand  some  time  ago.   Since  the
prosecutrix could not  be  traced,  a  complaint  to  the  said  effect  was
registered by the complainant on 05.09.2003  with  Meghraj  Police  Station.
Two days after the said complaint, the appellant surrendered himself  before
the Police on 07.09.2003.  Thereafter, necessary panchnama came to be  drawn
and statements of the appellant and prosecutrix were  recorded.   They  were
also  sent  for  medical  examination.   Clothes  of   the   appellant   and
prosecutrix were seized in  the  presence  of  panchas  and  were  sent  for
analysis to FSL, Ahmedabad.  The investigation revealed sufficient  evidence
against the appellant.   This  led  to  his  formal  arrest  on  30.11.2003.
Thereafter, as the case was exclusively triable by the  Court  of  Sessions,
the case was committed to Sessions Court, Himmatnagar.

5)    After framing of the charge, the  trial  proceeded.   The  prosecution
examined as many as 11 witnesses to prove the charges.  The  particulars  of
these witnesses are as under:

|No.      |Ex.           |Name of witnesses     |                  |
|1        |8             |Rasikbhai Hirabhai    |complainant/      |
|         |              |Dabagar               |supporter         |
|2        |10            |Daughter of Rasikbhai |Victim/supporter  |
|         |              |Hirabhai Dabagar      |                  |
|3        |15            |Punamchand Laljibhai  |Witness/supporter |
|         |              |Dabagar               |                  |
|4        |16            |Rakesh Kumar          |Witness/supporter |
|         |              |Punamchand            |                  |
|5        |17            |Hansaben Punamchand   |Witness/supporter |
|         |              |Dabagar               |                  |
|6        |18            |Mulljibhai Dayashankar|IO, who made      |
|         |              |Upadhayaya            |chargesheet       |
|7        |25            |Chandanben Rasiklal   |witness/supporter |
|         |              |Dabgar                |                  |
|8        |27            |Bhikhabhai Manbhai    |witness/supporter |
|         |              |Parmar                |                  |
|9        |28            |Kanubhai Jaychandbhai |Main IO           |
|         |              |Chaudharay            |                  |
|10       |33            |Dr. Rajkamal Shri     |Medical Officer   |
|         |              |Adhyasharan           |                  |
|11       |39            |Bharat Kumar          |Employee of Nagar |
|         |              |Babarbhai Patel       |Palika            |

6)    In addition, following documents were produced and exhibited through
the witnesses:
|1        |Original Complaint by Ex. 9.                            |
|2        |Panchnama of scene of offence by Ex.11.                 |
|3        |Panchnama of clothes of victim and accused seized by    |
|         |Ex.12.                                                  |
|4        |Receipt of FSL for having received the Muddamal by      |
|         |Ex.19.                                                  |
|5        |Forwarding letter of FSL regarding having sent the FSL  |
|         |report by Ex.20                                         |
|6        |FSL report by Ex.21.                                    |
|7        |Report showing the results of serological analysis by   |
|         |Ex.22.                                                  |
|8        |Birth Certificate of victim by Ex.26.                   |
|9        |Muddamal dispatch note by Ex.29.                        |
|10       |Yadi made by police for making medical examination of   |
|         |accused by Ex.34.                                       |
|11       |Medical certificate of physical examination of Victim by|
|         |Ex.35.                                                  |
|12       |Medical certificate of physical examination of accused  |
|         |by Ex.36.                                               |
|13       |Abstract of Birth Registration Register of Nagarpalika  |
|         |by Ex.40.                                               |

7)    After conclusion of the prosecution evidence,  the  statement  of  the
accused was recorded under Section 313 of the Code  of  Criminal  Procedure.
In his statement, the appellant stated that he was  innocent.   His  defence
was that he and prosecutrix were in  love  with  each  other  and  had  tied
nuptial knot with free consent of the victim.   Marriage  between  them  was
solemnized  as  per  Hindu  rites  on  09.03.2003  at  Unza  which  was  got
registered as well.  The appellant produced Memorandum of Marriage as  Ex.43
depicting registration of marriage, issued by the Marriage Registrar,  Unza.
 The appellant, thus, maintained that a false case was  filed  against  him.
He, however, did not examine any defence witness.

8)    After hearing the arguments, the learned trial court  arrived  at  the
conclusion that charges against the appellant under Sections  363,  366  and
376 IPC were fully proved beyond any reasonable doubt.  It was primarily  on
the ground that the prosecutrix was less than 16 years of age  on  the  date
of the incident i.e. 01.09.2003 and, therefore, there  was  no  question  of
giving any consent by her and the  alleged  consent  was  of  no  value.   A
perusal of the judgment of the learned Additional Sessions Judge shows  that
according to him, following points had arisen for consideration:
1.    Whether the Prosecution proves beyond doubt that the  victim  of  this
case was minor on the day of incident dated 01.09.2003?

2.    Whether the Prosecution proves beyond  doubt  that  at  about  quarter
past five pm on 01.09.2003, the accused  had  kidnapped  minor  daughter  of
Rasikbhai Hirabhai from his guardianship  without  any  kind  of  permission
from Megharaj and thereby he has committed the offence  punishable  u/s  363
of IPC?

3.    Whether the Prosecution proves beyond doubt  that  at  aforesaid  time
and date, despite knowing that she is minor, the accused with  intention  to
marry her and to commit external marital  sexual  intercourse,  had  enticed
and cajoled and kidnapped her from lawful  guardianship  and  taken  her  at
some other place and thereby he has committed  the  offence  punishable  u/s
366 of IPC?

4.    Whether the Prosecution proves beyond doubt  that  at  aforesaid  time
and date kidnapping the  victim  minor  daughter  of  complainant  from  his
lawful guardianship that accused had kidnapped and taken  her  at  different
places and despite he is a married male person, had  committed  rape  sexual
intercourse with her without her desire  and  consent  and  thereby  he  has
committed the offence punishable u/s 376 of IPC?

5.    What order?

9)    The questions formulated at Serial Nos.1 to 4 above  were  decided  in
the affirmative.  The discussion in the judgment  reveals  that  it  was  an
admitted case that the victim and the accused were from the  same  community
and they both had gone out of station together.  It was also established  on
record that there  was  physical  relationship  between  them  at  different
places and at different times and marriage was also performed on  09.03.2003
at Unza which was duly registered  in  the  Office  of  Marriage  Registrar.
However, the primary defence of the appellant was that the  prosecutrix  was
major; she accompanied the appellant willingly  and  entered  into  physical
relationship as well as matrimonial alliance out of her  free  will,  desire
and consent.  Therefore,  the  most  important  question  before  the  trial
court, on which the fate of the case hinged, was the age of the victim  from
which it could be discerned as to whether she was major on the date  of  the
incident or not.

10)   In order to prove that the victim was below 16 years at  the  relevant
time, the prosecution had produced xerox copy of  school  certificate  where
she had studied which was marked as 6/4.  However,  the  learned  Additional
Sessions Judge, for various  reasons  recorded  in  the  impugned  judgment,
opined that this xerox copy was not  proved  in  accordance  with  law  and,
therefore, could not be taken into consideration to  determine  the  age  of
the prosecutrix.  Since, no reliance is place thereupon by  the  prosecution
thereafter in the High Court and before us as well, it is not  necessary  to
delve into the reasons which had persuaded  the  trial  court  to  take  the
aforesaid view in respect of this particular document.

11)   Notwithstanding the fact that the aforesaid  document  was  discarded,
the trial court accepted the version of the prosecution by arriving  at  the
finding that the prosecutrix was below the age of 16 years on  the  date  of
occurrence.  This finding is based on the deposition of  Chandanben,  mother
of the victim coupled with  Birth  Certificate  (Ex.26)  issued  by  Dholka,
Nagar Palika where the victim was born.  In her deposition,  Chandanben  had
stated that the prosecutrix was born in a hospital in Dholka,  Nagar  Palika
and Ex.26 was produced which was issued by Dholka, Nagar Palika.   To  prove
the authenticity of this certificate, an employee from Dholka, Nagar  Palika
was summoned on the application made by the  prosecution.   One  Mr.  Bharat
Kumar Babarbhai Patel appeared with the  requisite  records.   He  not  only
testified to the effect that Ex.26 was issued by Dholka, Nagar  Palika,  but
this evidence was further corroborated by producing register  of  birth  and
death maintained by the said Nagar  Palika  which  contained  entry  of  the
birth of the prosecutrix made at Serial Nos.1345 on Page No.91 in  the  year
1988.  Xerox copy of this document was taken on record as Ex.40.   Believing
in the authenticity of these documents, the trial court  concluded  that  as
per Ex.40 read with Ex.26, the date of birth of prosecutrix  was  28.09.1988
and entry to this effect was  made  in  the  Register  on  01.10.1988  which
clearly evinced that the prosecutrix was less than 16 years of age (in  fact
even less than 15 years) on 01.09.1993  when  she  was  taken  away  by  the
appellant.  Having regard to her age, the trial court concluded that it  was
a case of kidnapping as her consent  was  immaterial  inasmuch  as  being  a
minor she was not capable of giving any  consent  at  that  age.   Likewise,
since sexual intercourse had been virtually admitted and proved as  well  by
medical evidence, the same would clearly amount to  rape.   Apart  from  the
admission of the accused himself,  the  factum  of  sexual  intercourse  was
proved by medical examination and Dr. Raj Kamal who had examined the  victim
as well as accused, had deposed to this effect.

12)   Taking into account the aforesaid evidence appearing  on  record,  the
High Court upheld the conviction recorded by the trial  court,  and  rightly
so, as we do not find  any  reason  to  deviate  therefrom.   In  fact,  the
learned counsel for the appellant could not make any  argument  which  could
dent the case of the prosecution even a  bit.   In  the  face  of  aforesaid
material staring at the appellant, learned counsel  for  the  appellant  was
candid in  his  submission  that  he  would  press  only  for  reduction  of
sentence.  Otherwise also, it is a matter of record that this was  the  only
plea raised by the counsel for the appellant even  before  the  High  Court.
The learned Amicus Curiae, therefore, drew our attention to para 12  of  the
impugned judgment wherein it is noted that the appellant was  newly  married
(which means just before April, 2011 when the judgment  of  the  High  Court
was delivered).  It was also pleaded that he was a poor  man  and  the  only
bread earner in his family.   Another  extenuating  circumstance  which  was
sought to be projected was that even though the  prosecutrix  was  below  16
years of age at the time of incident, the entire episode was the  result  of
love affair between the appellant and the prosecutrix and every act  between
them was consensual.  It was also pointed out that even the prosecutrix  was
married and had one  child  and,  therefore,  was  happily  settled  in  her
matrimonial home.  On the basis of these circumstances, the  plea  was  made
that the appellant should be accorded sympathetic treatment by reducing  the
sentence imposed upon him.

13)   Having regard to the aforesaid plea, we are called  upon  to  consider
the issue of sentence only in  the  present  appeal.   The  extenuating  and
mitigating circumstances narrated by the learned  Amicus  Curiae  have  been
duly taken note of by the High Court as well.  In fact, going by these  very
circumstances projected by the defence, the High Court reduced the  sentence
of seven years rigorous imprisonment imposed under Section 376  of  the  IPC
to 4 years.  We feel that appellant is not entitled to any further mercy.

14)   First thing which is to be borne in mind is that the  prosecutrix  was
less than 16 years of age.  On this fact, clause sixthly of Section  375  of
the IPC would get attracted making her consent  for  sexual  intercourse  as
immaterial and inconsequential.  It reads as follows:
"375. Rape-A  man  is  said  to  commit  "rape"  who,  except  in  the  case
hereinafter  excepted,  has  sexual   intercourse   with   a   woman   under
circumstances falling under any of the six following descriptions:-

                               xx    xx    xx

Sixthly - With or without her consent, when she is under  sixteen  years  of
age.  Explanation.-Penetration  is  sufficient  to  constitute  the   sexual
intercourse necessary to the offence of rape."

15)   The Legislature has introduced  the  aforesaid  provision  with  sound
rationale and there is an important objective behind such a  provision.   It
is considered that a minor is incapable of thinking  rationally  and  giving
any consent.  For this reason, whether it is civil law or criminal law,  the
consent of a minor is not treated as valid consent.  Here the  provision  is
concerning a girl child who is not only minor but  less  than  16  years  of
age.  A minor girl can be easily lured into giving consent for such  an  act
without understanding the implications thereof.  Such a consent,  therefore,
is treated as not an informed consent given  after  understanding  the  pros
and cons as well as consequences of the intended action.   Therefore,  as  a
necessary corollary, duty  is  cast  on  the  other  person  in  not  taking
advantage of the so-called consent given by a  girl  who  is  less  than  16
years of age.  Even when there is a consent of a girl below  16  years,  the
other partner in the sexual act is treated as  criminal  who  has  committed
the offence of rape.  The law leaves no choice to him and  he  cannot  plead
that the act was consensual.  A  fortiori,  the  so-called  consent  of  the
prosecutrix  below  16  years  of  age  cannot  be  treated  as   mitigating
circumstance.

16)   Once we put the things in  right  perspective  in  the  manner  stated
above, we have to treat it a case where the appellant has committed rape  of
a minor girl which is regarded as heinous crime.   Such  an  act  of  sexual
assault has to  be  abhorred.   If  the  consent  of  minor  is  treated  as
mitigating circumstance, it may lead to disastrous consequences.  This  view
of ours gets strengthened when we keep in mind the letter and spirit  behind
Protection of Children from Sexual Offences Act.

17)    The  purpose  and  justification  behind  sentencing  is   not   only
retribution,  incapacitation,  rehabilitation  but   deterrence   as   well.
Certain aspects of sentencing were  discussed  by  this  Court  in  Narinder
Singh v. State of Punjab, (2014) 6 SCC 466.  It would be  apt  to  reproduce
the said discussion at this juncture:
14.  The law prohibits certain  acts  and/or  conduct  and  treats  them  as
offences. Any person committing those acts is subject to penal  consequences
which may be of various kinds. Mostly, punishment  provided  for  committing
offences is either imprisonment or monetary fine or both.  Imprisonment  can
be rigorous or simple in nature. Why are those persons who  commit  offences
subjected to such penal consequences? There  are  many  philosophies  behind
such    sentencing    justifying    these    penal     consequences.     The
philosophical/jurisprudential    justification    can    be     retribution,
incapacitation, specific deterrence, general deterrence, rehabilitation,  or
restoration. Any of the above or a combination thereof can be  the  goal  of
sentencing.

15.  Whereas in  various  countries,  sentencing  guidelines  are  provided,
statutorily or otherwise, which  may  guide  Judges  for  awarding  specific
sentence, in India we do not have any  such  sentencing  policy  till  date.
The  prevalence  of  such  guidelines  may  not  only   aim   at   achieving
consistencies in awarding sentences  in  different  cases,  such  guidelines
normally prescribe the  sentencing  policy  as  well,  namely,  whether  the
purpose of awarding punishment in a particular case is more of a  deterrence
or retribution or rehabilitation, etc.  In the absence  of  such  guidelines
in India, the courts go by their own perception about the philosophy  behind
the prescription of certain  specified  penal  consequences  for  particular
nature  of  crime.   For  some  deterrence  and/or  vengeance  becomes  more
important whereas another Judge may be more influenced by rehabilitation  or
restoration  as  the  goal  of  sentencing.   Sometimes,  it  would   be   a
combination of both which would weigh in the mind of the court  in  awarding
a particular sentence. However, that may be question of quantum.

16.  What follows from the discussion behind the purpose  of  sentencing  is
that if a particular crime is to be treated as  crime  against  the  society
and/or heinous  crime,  then  the  deterrence  theory  as  a  rationale  for
punishing the offender becomes more relevant, to be applied in  such  cases.
Therefore, in respect  of  such  offences  which  are  treated  against  the
society, it becomes the duty of the State  to  punish  the  offender.  Thus,
even when there is a settlement between the offender and the  victim,  their
will would not prevail as in such cases the  matter  is  in  public  domain.
Society demands that the individual offender should be punished in order  to
deter other effectively as it amounts  to  greatest  good  of  the  greatest
number of persons in a society.  It is in  this  context  that  we  have  to
understand the scheme/philosophy behind Section 307 of the Code.

17.  We would like to expand this principle in some more detail.   We  find,
in practice and  in  reality,  after  recording  the  conviction  and  while
awarding the sentence/punishment the court is generally governed by  any  or
all  or  combination  of  the  aforesaid  factors.  Sometimes,  it  is   the
deterrence theory which prevails in the minds of the court, particularly  in
those cases where the crimes committed  are  heinous  in  nature  or  depict
depravity, or lack morality.  At times it  is  to  satisfy  the  element  of
"emotion" in law and retribution/vengeance becomes the guiding  factor.   In
any case, it cannot be denied that the  purpose  of  punishment  by  law  is
deterrence, constrained by considerations of justice.  What,  then,  is  the
role of mercy, forgiveness and compassion in law?  These  are  by  no  means
comfortable questions and even the answers may not be comforting. There  may
be certain cases which are too  obvious,  namely,  cases  involving  heinous
crime with element of criminality against the society and not parties  inter
se.  In  such  cases,  the  deterrence  as  purpose  of  punishment  becomes
paramount and even if the victim or his relatives have shown the virtue  and
gentility, agreeing to forgive  the  culprit,  compassion  of  that  private
party would not move the court in accepting the  same  as  larger  and  more
important public policy of showing the iron hand of law to  the  wrongdoers,
to reduce the commission of such offences,  is  more  important.   Cases  of
murder, rape, or other sexual offences, etc.  would  clearly  fall  in  this
category.  After all, justice  requires  long-term  vision.   On  the  other
hand, there may be offences falling in  the  category  where  "correctional"
objective of criminal law would have to be given more weightage in  contrast
with "deterrence" philosophy.  Punishment, whatever else  may  be,  must  be
fair and conducive to good rather than further evil.   If  in  a  particular
case the court is of the opinion that the  settlement  between  the  parties
would lead to more  good;  better  relations  between  them;  would  prevent
further occurrence of such encounters  between  the  parties,  it  may  hold
settlement to be on a better pedestal.  It is  a  delicate  balance  between
the two conflicting interests which is to be achieved  by  the  court  after
examining all these parameters and then  deciding  as  to  which  course  of
action it should take in a particular case.


18)   Likewise, this Court made following observations regarding  sentencing
in the cases involved in sexual offences in  the  case  of  Sumer  Singh  v.
Surajbhan Singh and others, (2014) 7 SCC 323.
33.  It is seemly to state here that though the question of  sentence  is  a
matter of discretion, yet the said discretion cannot be used by a  court  of
law  in  a  fanciful  and  whimsical  manner.   Very   strong   reasons   on
consideration of the relevant factors have to form the fulcrum  for  lenient
use of the said discretion.  It is  because  the  ringing  of  poignant  and
inimitable expression, in a way, the warning of Benjamin N. Cardozo  in  The
Nature of the Judicial Process - Yale  University  Press,  1921  Edn.,  page
114.


"The Judge even when he is free, is still not wholly free.   He  is  not  to
innovate at pleasure. He is not a knight errant roaming at will  in  pursuit
of his own ideal of beauty or of goodness.  He is to  draw  his  inspiration
from consecrated principles. He is not to yield to spasmodic  sentiment,  to
vague and unregulated benevolence. He is to exercise a  discretion  informed
by  tradition,  methodized  by   analogy,   disciplined   by   system,   and
subordinated to 'the primordial necessity of order in social life'."


34.  In this regard, we may usefully quote a  passage  from  Ramji  Dayawala
and Sons (P.) Ltd. v. Invest Import, (1981) 1 SCC 80:


"20. ...when it is said that a matter is within the discretion of the  court
it is to be exercised according to  well  established  judicial  principles,
according to reason and fair play, and not according to  whim  and  caprice.
'Discretion', said Lord Mansfield in R.  v.  Wilkes,  (1770)  4  Burr  2527,
'when applied to a court of justice, means sound discretion guided  by  law.
It must be governed by rule, not  by  humour;  it  must  not  be  arbitrary,
vague, and fanciful, but legal and regular'" (see  Craies  on  Statute  Law,
6th Edn., p.273).


35.   In Aero Traders Pvt. Ltd. v. Ravinder Kumar Suri, (2004)  8  SCC  307,
the Court observed:


"6.  ...According to Black's Law Dictionary 'Judicial discretion' means  the
exercise of judgment by a judge or court based on what  is  fair  under  the
circumstances and guided by the rules  and  principles  of  law;  a  court's
power to act or not act when a litigant is not entitled to  demand  the  act
as a matter of right.  The word 'discretion' connotes necessarily an act  of
a judicial character, and, as used with reference  to  discretion  exercised
judicially, it implies the absence of a hard-and-fast rule, and it  requires
an actual exercise  of  judgment  and  a  consideration  of  the  facts  and
circumstances  which  are  necessary  to  make  a  sound,  fair   and   just
determination, and a knowledge of the facts upon which  the  discretion  may
properly operate. (See 27 Corpus Juris Secundum, page 289). When it is  said
that something is to be done within the discretion of the authorities,  that
something is to be done according to the rules of  reason  and  justice  and
not according to private opinion; according to law and not humour.  It  only
gives certain latitude or liberty accorded by statute or rules, to  a  judge
as  distinguished  from  a  ministerial  or  administrative   official,   in
adjudicating on matters brought before him."

Thus, the judges are  to  constantly  remind  themselves  that  the  use  of
discretion has to be guided by law, and what is  fair  under  the  obtaining
circumstances.

36. Having discussed about the discretion, presently we shall advert to  the
duty of the court in the exercise of power while imposing  sentence  for  an
offence. It is the duty of the court to impose adequate  sentence,  for  one
of the purposes of imposition of requisite sentence  is  protection  of  the
society  and  a  legitimate  response  to  the  collective  conscience.  The
paramount principle that should be  the  guiding  laser  beam  is  that  the
punishment should be proportionate.  It is the answer of law to  the  social
conscience.  In a way, it is an obligation to the society which has  reposed
faith in the court of law to curtail the evil. While imposing  the  sentence
it is the court's accountability to remind itself about  its  role  and  the
reverence for  rule  of  law.  It  must  evince  the  rationalized  judicial
discretion and not an individual perception or a moral propensity.  But,  if
in  the  ultimate  eventuate  the  proper  sentence  is  not  awarded,   the
fundamental grammar of sentencing is guillotined. Law  cannot  tolerate  it;
society does not withstand it; and sanctity of  conscience  abhors  it.  The
old saying "the law can hunt one's past" cannot be allowed to be  buried  in
an indecent manner and the rainbow  of  mercy,  for  no  fathomable  reason,
should be allowed to rule.  True it is, it has its own  room,  but,  in  all
circumstances, it cannot be allowed to occupy the whole  accommodation.  The
victim, in this case, still  cries  for  justice.   We  do  not  think  that
increase in fine amount or grant of compensation under the Code would  be  a
justified answer in law. Money cannot be the oasis.  It  cannot  assume  the
centre stage for all redemption. Interference in manifestly  inadequate  and
unduly lenient sentence is the justifiable warrant,  for  the  Court  cannot
close its eyes to the agony and anguish of the victim  and,  eventually,  to
the cry of the society. Therefore, striking the balance we are  disposed  to
think that the cause of justice would be best subserved  if  the  respondent
is sentenced to undergo rigorous imprisonment for two years apart  from  the
fine that has been imposed by the learned trial judge."


19)   Merely  because  the  appellant  has  now  married  hardly  becomes  a
mitigating  circumstance.   Likewise,  the  appellant  cannot   plead   that
prosecutrix is also married and having a  child  and,  therefore,  appellant
should be leniently treated.  It is not  a  case  where  the  appellant  has
married the prosecutrix.  Notwithstanding the  same,  as  noted  above,  the
High Court has already  reduced  the  sentence  from  seven  years  rigorous
imprisonment to 4 years under Section 376 of the IPC.   Therefore,  in  any
case, the appellant is not entitled  to  any  further  mercy.   The  appeal,
accordingly, fails and is dismissed.

20)   The appellant was released on bail during the pendency of the  present
appeal.   He  shall,  accordingly,  be  taken  into  custody  to  serve  the
remaining sentence.



                                 .........................................J.
                                                               (Dipak Misra)


                                 .........................................J.
                                                                (A.K. Sikri)
New Delhi;
March 10, 2015

There is no doubt about the occurrence having taken place, in which Jagsir Singh was killed by the accused and that his injuries were caused by 'kassis.' There is clear evidence that the accused party comprised of Gurdial Singh, his wife Surjit Kaur along with their sons Gurjit Singh and Surjit Singh. Gurjit and Surjit were armed with 'kassis.' There are two injuries made by the 'kassis'; on the back of the head and the other on the face of the deceased, Jagsir Singh. The eye-witnesses accounts of Mander Singh (PW13) and Sukhwinder Kaur (PW14), who were undoubtedly present, in no uncertain terms reveals that Jagsir Singh was attacked by the accused party i.e. Gurjit Singh and Surjit Singh. Sukhwinder Kaur has stated that the accused Gurjit gave a 'kassi' blow on the back of the head of Jagsir Singh, as a result of which he fell. Further, that the second 'kassi' blow was given on the right side of the face of Jagsir Singh. The inference drawn by the Trial Court that Sukhwinder Kaur intended to name Gurjit Singh, as the person who also caused the second blow is unwarranted. The acquittal of Surjit Singh on that ground is also not sustainable. Some element of confusion was sought to be created in the defence version by alleging, vide Kuldeep Kaur's (DW1) deposition that Jagsir Singh received the second blow because he fell after receiving the first blow on a 'kassi' lying beside Gurdial Singh, which cut his face on the right side.

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

                      CRIMINAL  APPEAL No. 519 OF 2010




GURJIT SINGH alias GORA AND ANR.                      .... APPELLANTS



                                   VERSUS



STATE OF HARYANA                                          .... RESPONDENT




                                 1 JUDGMENT



S. A. BOBDE, J.



1.    This appeal has been preferred by the accused Gurjit Singh alias  Gora
and Surjit Singh alias Sukha, from the Judgment of the High Court of  Punjab
and Haryana  at  Chandigarh,  convicting  the  appellants  -  accused  under
Section 302 read with Section 34  of  the  Indian  Penal  Code  [hereinafter
referred to as "IPC"] for the murder of Jagsir Singh on 17.10.1998 at  about
2.15 pm at village Ganga (Dabwali), District Sirsa, Haryana.

The relationship between the parties is as follows:



                                    [pic]

2.    According to the  prosecution,  on  17.10.1998  at  about  2.15  p.m.,
Jagsir Singh left his home to go to a shop  for  purchasing  Zarda  (chewing
tobacco).  His house was  adjacent  to  the  house  of  the  accused.   Soon
thereafter, his brother  Mander  Singh  (PW13),  his  wife  Sukhwinder  Kaur
(PW14) and Paramjit Kaur heard hot  words  being  exchanged  between  Jagsir
Singh (deceased) and the accused.   Mander Singh along with Sukhwinder  Kaur
went out of their house to see as to what had happened.  They saw  that  the
accused had surrounded Jagsir Singh.  Accused Gurjit and Surjit  were  armed
with 'kassis' (spades) whereas Gurdial Singh, the father of the accused  and
Surjit Kaur, their mother, were unarmed.   Gurdial  Singh  and  Surjit  Kaur
exhorted Gurjit and  Surjit  that  Jagsir  Singh  be  taught  a  lesson  for
bringing the 'Kanungo' (revenue inspector) to the  village  for  demarcation
of their property.  Gurjit then struck Jagsir Singh on the back of his  head
with a 'kassi', causing him to fall.  Thereafter, Surjit also struck  Jagsir
Singh on his face with a 'kassi.'  Accused Surjit Kaur then  dragged  Jagsir
Singh towards the village lane.



3.    As per the prosecution,  Mander  Singh  (PW13),  the  brother  of  the
deceased and Sukhwinder Kaur (PW14)  had  been  restrained  by  the  accused
Gurdial Singh and his wife Surjit  Kaur  from  approaching  the  site  where
Jagsir Singh had been cornered by the accused  brothers.  Mander  Singh  and
Sukhwinder Kaur made frantic calls for help, thereby attracting many  people
from the locality to the scene of the incident.  The  accused  escaped  from
the scene with their weapons.



4.    Jagsir Singh was immediately removed to the Community  Health  Centre,
Dabwali.  The doctor there provided  first  aid  and  referred  him  to  the
General Hospital at Sirsa, which is at a distance of about 60 Kms, where  he
was declared as brought dead.



5.    After completion of investigation, a report under Section 173  of  the
Code of Criminal Procedure, 1973 (hereinafter referred to as the  'Cr.P.C.')
was presented in court.   The accused were charged under  Sections  302  and
341 read with Section 34 of the  IPC.   An  autopsy  was  conducted  by  Dr.
Jagdish Choudhary (PW4) along with Dr. Yogesh Sangwan.  At  the  trial,  the
prosecution examined 15 witnesses including Mander Singh (PW13), brother  of
Jagsir Singh (deceased) and Sukhwinder Kaur (PW14), widow of  the  deceased.
After the closure of the prosecution evidence,  statements  of  the  accused
were  recorded  under  Section  313  Cr.P.C.,  in  which  they  denied   the
allegations and pleaded false implication.   The  accused  examined  Kuldeep
Kaur (DW1) and Dr. Bhushan Garg (DW2) in their defence.



6.    The two parties are related by  blood.   Gurdial  Singh  and  Mukhtiar
Singh, are sons of one Miyan Singh.  Mukhtiar Singh is  father  of  deceased
Jagsir Singh.  The two brothers were owners in possession of  2/3  share  of
total land measuring 157 Kanals  and  19  Marlas  situated  in  the  revenue
estate of village Ganga,  Tehsil  Dabwali,  District  Sirsa.   The  sons  of
Mukhtiar Singh  i.e.  the  complainant  party,  believed  that  their  uncle
Gurdial Singh and his sons i.e.  the  accused  party,  had  encroached  upon
their land.  They had therefore moved an application for demarcation of  the
property.  The accused were not in agreement with the course adopted by  the
complainants.   Therefore, they cornered the deceased Jagsir Singh in  front
of their house when he was on his way to the village market.  The  acquitted
accused, Gurdial Singh and his wife Surjit  Kaur  had  exhorted  their  sons
i.e. Surjit and Gurjit, to commit the crime.



7.     It  is  significant  that  in  defence,  the  accused  admitted   the
occurrence.   Their  version,  however,  has  differed  from  that  of   the
prosecution. According to them, Gurdial Singh was digging in the street  and
was dumping mud along the  wall  of  his  house.  Thereafter,  Jagsir  Singh
(deceased) came there  armed  with  a  'gandasi'  (sharp-edged  weapon)  and
raised a 'Khangura' (a provocative sound made to incite another person).  In
response, Gurdial asked Jagsir Singh why he had made  that  sound  since  he
had brought him up as  a  child.  Jagsir  Singh  responded  by  demanding  a
certain piece of land from Gurdial Singh.  Thereafter, Jagsir  Singh  struck
Gurdial Singh with the 'gandasi' on his head. It  is  further  stated,  that
Gurdial Singh then rushed into his  house  with  Jagsir  Singh  in  pursuit.
Thereafter, Jagsir Singh struck him again  with  the  reverse  side  of  the
weapon.  Meanwhile, Gurjit, Gurdial's son, picked up a 'kassi' and tried  to
save his father from the hands of  Jagsir  Singh.  In  the  process,  Gurjit
struck Jagsir Singh on the back of his head, causing  him  to  fall  on  the
sharp side of the 'kassi' which had fallen from the hands of Gurdial  Singh.
Learned counsel for the appellants  thus  pleaded  self-defence  and  sudden
provocation before us.



8.     The Doctor (PW4), who conducted the  autopsy  on  the  dead  body  of
Jagsir Singh, observed two incised wounds i.e. one over the scalp  extending
4 cms behind the left ear and the other extending from the nasal  septum  to
2 cms below the right external ear.  In  the  opinion  of  the  doctor,  the
cause of death was shock and hemorrhage as a result  of  injuries  to  vital
organs, which were ante-mortem in nature.



9.    At this stage, it is apposite to notice that the  injury  is  said  to
have been caused to Gurdial Singh by Jagsir Singh with a  'gandasi'  (sharp-
edged weapon).  As per the  First  Information  Report,  the  incident  took
place at about 2.15 pm.  At around 6.55 pm, in the  evening,  Gurdial  Singh
went to the Primary Health Center at Odhan and got himself examined  by  the
medical officer on duty there, namely, Dr. Bhushan Garg (DW2).   The  Doctor
found:

1.    An incised wound 4 cms x 1 cm on the right parietal area of  head  and
it was 6 cms above the right ear.  Fresh bleeding was  present  and  margins
were sharp.  The doctor advised an x-ray for this injury.

2.    A contusion 3 cms x 1 cm on the left hand on the dorsal aspect at  the
base of left thumb and it was transversely placed.   Severe  tenderness  was
present.

This doctor prepared a skiagram (an x-ray image) of the injuries and sent  a
ruqa to the Police Station, Odhan.  Further,  although  this  witness  ruled
out the injury by a friendly  hand  or  by  self,  he  did  not  reject  the
possibility of  the  injuries  being  self-inflicted.   Significantly,  this
witness admitted in his cross-examination  that  the  injured  i.e.  Gurdial
Singh, did not offer himself for radiological examination  and  further,  he
did not disclose the history of the injuries to him.



10.   It is equally significant that the weapon, which is said to have  been
used to cause this injury to Gurdial Singh i.e.  the  'gandasi,'  was  never
recovered.



11.   The Trial Court accepted the defence  version  in  its  entirety.   It
came to the conclusion that Gurjit caused an injury on the  head  of  Jagsir
Singh (deceased) in self-defence i.e. after Jagsir had  attacked  his  uncle
Gurdial Singh on the head with a 'gandasi.'  That  thereupon,  Jagsir  Singh
fell face down on the 'kassi' which had allegedly fallen from the  hands  of
Gurdial.  The Trial Court  completely  acquitted  the  other  accused  Sukha
alias Surjit Singh.  The Trial Court concluded that Surjit had  no  role  to
play  because  Sukhwinder  Kaur,  Jagsir  Singh's  widow,  stated   in   her
deposition that Gurjit  had  struck  Jagsir  Singh  on  the  head  with  the
'kassi.'  The second 'kassi' blow, however, was given on the right  side  of
the face of Jagsir Singh.  Because she had not mentioned  the  name  of  the
person who had given the second blow on the face of the deceased, the  Trial
Court concluded, that  the  witness  attributed  the  second  blow  also  to
Gurjit.



12.   The Trial Court seems to have attached no importance to the fact  that
the recovery of the weapon (the 'kassi') was made at  the  instance  of  the
accused Surjit Singh. This was simply dismissed as highly improbable.

13.   The learned counsel  for  the  appellants,  Dr.  J.P.  Dhanda,  placed
reliance on Chandrappa & Ors v. State of Karnataka (2007) 4 SCC  415,  State
of M.P. v. Ramesh & Anr (2011)  4  SCC  786  and Ranjitham  v.  Basavaraj  &
Ors (2012) 1 SCC  414  to  submit  that  in  an  appeal  against  acquittal,
interference by the Appellate Court is  not  warranted  in  the  absence  of
perversity in the judgment of the Trial Court. These judgments do  not  help
the cause of the appellants because the  High  Court  has  given  clear  and
cogent reasons to show that the judgment of the  Trial  Court  was  perverse
and not based on the evidence on record.  

Further, Dr. Dhanda relied on Arun Raj v. Union of India JT 2010 (5)  SC  1;
and Kapildeo v. State of U.P. 1983 SCC (Crl) 311 to show  that  the  offence
committed by the appellants fell within the scope of Section 304 Part II  of
IPC and not under Section 302 of IPC. It is pertinent to note  that  in Arun
Raj (supra) this  Court  had  rejected  the  defence  of  grave  and  sudden
provocation and convicted the appellant under Section 302  of  IPC.  Whereas
in Kapildeo (supra) this Court altered the conviction from Section 304  Part
I to Section 304 Part II of IPC.  The circumstances in the above cases  were
entirely different from the present case.



14.   We might state at this stage itself that upon reading of the  evidence
of Mander Singh (PW14), it  cannot  be  said  that  Sukhwinder  Kaur  (PW13)
stated that the second 'kassi' blow was given on the right side of the  face
of Jagsir Singh to mean that the second  blow  was  also  caused  by  Gurjit
Singh alias Gora.  The Trial Court also seems to  have  missed  the  defence
version, according to which Jagsir Singh received  the  second  injury  from
the 'kassi' because he fell on the ground where the 'kassi' was  lying,  and
not because Gurjit Singh caused it, vide  the  deposition  of  Kuldeep  Kaur
(DW1), wife of Surjit Singh.



15.   As stated above, the Trial Court  acquitted  Surjit  Singh  completely
and also Gurjit Singh of the charge under Section  302  IPC,  accepting  the
defence version that Gurjit attacked deceased Jagsir Singh only to save  the
life of his father - Gurdial  Singh,  who  had  allegedly  been  injured  by
Jagsir Singh.  The Trial Court convicted  Gurjit  Singh  under  Part  II  of
Section 304 IPC.



16.   In appeal, the High Court reassessed the entire evidence and  came  to
the conclusion that it cannot be said to be the duty of the  prosecution  in
the circumstances to explain injuries on the person of the accused,  Gurdial
Singh, particularly, since Gurdial neither offered himself for  radiological
examination nor had he disclosed the history of his injuries to the  doctor.
The High Court opined that the non-explanation of injuries  is  insufficient
to discard the case of the prosecution, if it otherwise inspires  confidence
and is worthy of credence.   The High Court disagreed with the  Trial  Court
and held that there is no reason  to  disbelieve  the  statement  of  Mander
Singh, the brother of the deceased and  Sukhwinder  Kaur,  the  widow,  only
because they were near relations of the deceased. It is  settled  law,  that
the statement of a relative of the deceased cannot be  discarded  merely  on
the ground that he or she is an interested party. In Anwar Ali v.  State  of
U.P., (2011)  15  SCC  360,  this  Court  rightly  observed  that  once  the
prosecution has been able to  prove  its  case  by  leading  admissible  and
cogent evidence with reference to statements  of  the  witnesses,  the  same
cannot be brushed  aside  merely  on  the  ground  that  the  witnesses  are
relatives of the deceased. In Kartik Malhar v. State of Bihar, (1996) 1  SCC
614, this Court held that even a close relative who  is  a  natural  witness
cannot  be  regarded  as  an  interested  witness.  The  term   "interested"
postulates that the witness must have some direct  interest  in  having  the
accused somehow or the other convicted for some animus  or  for  some  other
reason. More recently, this principle was upheld in Ashok Rai  v.  State  of
U.P., (2014) 5 SCC 713, whereby this Court clearly stated that the  evidence
of interested witnesses is not infirm. The High  Court  has  also  disagreed
with the Trial Court that the fight took place at the  spur  of  the  moment
and the accused had not conspired with  each  other  to  commit  the  crime,
since     there     was      no      evidence      to      that      effect.


17.   Having considered the entire matter, we  are  of  the  view  that  the
circumstances of the case point out to the commission  of  the  crime  under
Section 302 IPC, as observed earlier.



18.   There is no doubt about the occurrence having taken  place,  in  which
Jagsir Singh was killed by the accused and that his injuries were caused  by
'kassis.'  There is clear evidence  that  the  accused  party  comprised  of
Gurdial Singh, his wife Surjit Kaur along with their sons Gurjit  Singh  and
Surjit Singh.  Gurjit and Surjit were armed with 'kassis.'   There  are  two
injuries made by the 'kassis'; on the back of the head and the other on  the
face of the deceased, Jagsir Singh.  The eye-witnesses  accounts  of  Mander
Singh (PW13) and Sukhwinder Kaur (PW14), who were  undoubtedly  present,  in
no uncertain terms reveals that Jagsir Singh was  attacked  by  the  accused
party i.e. Gurjit Singh and Surjit Singh.  Sukhwinder Kaur has  stated  that
the accused Gurjit gave a 'kassi' blow on the back of  the  head  of  Jagsir
Singh, as a result of which he fell.  Further, that the second 'kassi'  blow
was given on the right side of the face  of  Jagsir  Singh.   The  inference
drawn by the Trial Court  that  Sukhwinder  Kaur  intended  to  name  Gurjit
Singh, as the person who also caused the second blow  is  unwarranted.   The
acquittal of Surjit Singh on that ground  is  also  not  sustainable.   Some
element of confusion was sought to be created  in  the  defence  version  by
alleging, vide Kuldeep Kaur's (DW1) deposition that  Jagsir  Singh  received
the second blow because he fell after receiving the first blow on a  'kassi'
lying beside Gurdial Singh, which cut his face on the right side.



19.   The Trial Court has come up with  an  inference,  which  is  different
even from the defence version.  We consider it  appropriate  to  accept  the
Judgment of the High Court, which, after  reading  the  entire  evidence  on
this point, came to the correct conclusion that the two  blows  were  caused
by Gurjit Singh and Surjit Singh, who were both armed with 'kassis' and  who
had been exhorted to kill Jagsir Singh by their parents, Gurdial  Singh  and
Sukhwinder Kaur.



20.   We also agree with the Judgment of the High Court that the  injury  on
Gurdial Singh is self-inflicted, in all likelihood.  Gurdial Singh was  said
to have gone to the Primary Health Centre, Odhan at  around  6.55  pm,  even
though the incident had taken place at around 2.15 pm. The inordinate  delay
in seeking medical attention raises many questions.  In  addition,  he  also
refused to undergo radiological examination of  the  injuries  and  did  not
tell the doctor as to how and why he  got  the  injuries.   Gurdial  Singh's
conduct appears to be wholly unnatural and it is not possible to accept  the
defence version that Gurjit Singh attacked Jagsir Singh  (deceased)  because
Jagsir attacked his father  with  a  'gandasi.'  As  observed  earlier,  the
failure to  corroborate  the  existence  of  the  'gandasi,'  has  not  been
explained.

21.   For the aforesaid reasons, the  appeal  is  dismissed.  The  order  of
conviction and sentence as recorded by the High  Court  is  upheld  and  the
order of acquittal passed by the Trial Court is set aside.



                      ....................................................J.
                                                      [JAGDISH SINGH KHEHAR]



                           ...............................................J.

                                [S.A. BOBDE]
 NEW DELHI,
 MARCH 10, 2015
ITEM NO.1A               COURT NO.4               SECTION IIB

               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS


Criminal Appeal  No(s).  519/2010

GURJIT SINGH @ GORA & ANR.                         Appellant(s)

                                VERSUS

STATE OF HARYANA                                   Respondent(s)

[HEARD BY HON'BLE JAGDISH SINGH KHEHAR AND HON'BLE S.A. BOBDE, JJ.]

Date : 10/03/2015 This appeal was called on for judgment today.



For Appellant(s) Dr. J. P. Dhanda,Adv.


For Respondent(s)      Mr. Kamal Mohan Gupta,AOR(Not present)



            Hon'ble Mr. Justice S.A. Bobde pronounced the  judgment  of  the
Bench comprising Hon'ble Mr. Justice Jagdish Singh Khehar and His Lordship.

            For the reasons recorded in the Reportable  judgment,  which  is
placed on the file, the appeal is dismissed.  The order  of  conviction  and
sentence as recorded by the High Court is upheld and the order of  acquittal
passed by the Trial Court is set aside.

(Parveen Kr. Chawla)                         (Renu Diwan)
    Court Master                                   Court Master

Sec.37 of Income tax Act - claiming exemption from paying income tax on commission payments made to Commission Agents as part of business developments - Since the Assessee failed to discharge his burden , his claim was disallowed except by Tribunal - High court set aside the order of Tribunal - whether the High Court could have reframed the questions after the conclusion of the arguments and that too without giving an opportunity to the assessee. -the jurisdiction of the High Court to set aside the order of the Tribunal in the exercise of its Reference Jurisdiction.- Apex court held that Undoubtedly, in the exercise of its Reference Jurisdiction the High Court was not right in setting aside the order of the Tribunal. However, reading the ultimate paragraph of the order of the High Court we find that the error is one of form and not of substance inasmuch as the question arising in the Reference has been specifically answered in the following manner. "We therefore set aside the order of the Tribunal and uphold that of the Commissioner (Appeals) and answer the questions in favour of the Revenue by holding that the assessee had not discharged the burden that it is entitled to deductions under Section 37 of the Income Tax Act. Reference is answered accordingly." In performing the said exercise the High Court did not disturb or reverse the primary facts as found by the learned Tribunal. Rather, the exercise performed is one of the correct legal inferences that should be drawn on the facts already recorded by the learned Tribunal. The questions reframed were to the said effect. The legal inference that should be drawn from the primary facts, as consistently held by this Court, is eminently a question of law. No question of perversity was required to be framed or gone into to answer the issues arising. In fact, as already held by us, the questions relatable to perversity were consciously discarded by the High Court. We, therefore, cannot find any fault with the questions reframed by the High Court or the answers provided. For the aforesaid reasons, Civil Appeal No. 1569 of 2007 has to fail and it is accordingly dismissed. = 2015 S.C.msklawreports




Succinctly, the appellants are engaged in  the  manufacture  and
      sale of beer and  other  alcoholic  beverages.   Certain  States  like
      Kerala and Tamil Nadu had  established  marketing  corporations  which
      were  the  exclusive  wholesalers  of  alcoholic  beverages  for   the
      concerned State whereby all manufacturers  had  to  compulsorily  sell
      their products to the State Corporations which, in  turn,  would  sell
      the liquor so purchased, to the  retailers.   It  is  pleaded  by  the
      appellants that manufacturers of beverages containing alcohol have  to
      engage services of agents who would co-ordinate with the retailers and
      State Corporations to ensure continuous flow/supply of  goods  to  the
      ultimate consumers.  And on that ground they  sought  deduction  under
      Section 37 of the Act.
The claim made by the assessee in  the  facts  noted  above  was
      disallowed by the Assessing Officer by order  dated  29.01.1993.   The
      said order of the Assessing Officer was confirmed by the  Commissioner
      of Income Tax (Appeals) by order dated 29.10.1993.  The  assessee  had
      moved the learned Income Tax Appellate Tribunal, Cochin Bench  against
      the aforesaid orders.  The learned Tribunal took  the  view  that  the
      assessee was entitled to claim for deduction.  The said  view  of  the
      learned Tribunal has been reversed by the High Court in the  Reference
      made to it under Section 256 (2) of the Act.
Eventually,  in  the  ultimate
      paragraph of its order the High Court after recording  the  conclusion
      that the "Tribunal  has  committed  a  grave  error  in  not  properly
      understanding the transaction entered into between  the  assessee  and
      others" set aside the order of the Tribunal and upheld  the  order  of
      the Commissioner (Appeals) and answered the questions in favour of the
      revenue by holding that the assessee had not discharged the burden  so
      as to entitle it to deduction under Section 37 of the Act.  Aggrieved,
      this appeal has been filed by the assessee.

    Three propositions have been advanced before us on behalf of the
      contesting parties.
The first is
whether the  High  Court  could  have
      reframed the questions after the conclusion of the arguments and  that
      too without giving an opportunity to the assessee. 
The answer  to  the
      above question, according to the appellant,  is  to  be  found  in  M.
      Janardhana Rao vs. Joint Commissioner of Income  Tax[1]  wherein  this
      Court has held that questions  of  law  arising  in  an  appeal  under
      Section 260-A of the Act must be framed at the time of  admission  and
      should not be formulated after conclusion of the arguments. Though the
      decision in M. Janardhana Rao (supra) is in the context of Section 260-
      A of the Act, it is urged that the same principles would apply to  the
      exercise of jurisdiction under Section 256 of  the  Act  (as  it  then
      existed) particularly as the jurisdiction under Section  256  is  more
      constricted than under Section 260-A of the Act.

       
The second issue raised is 
the jurisdiction of the  High  Court
      to set aside the  order  of  the  Tribunal  in  the  exercise  of  its
      Reference Jurisdiction.
The point is no longer res integra having been
      settled in C.P. Sarathy  Mudaliar  vs.  Commissioner  of  Income  Tax,
      Andhra Pradesh[2] wherein this Court has taken the view  that  setting
      aside  the  order  of  the  Tribunal  in  exercise  of  the  Reference
      Jurisdiction of the  High  Court  is  inappropriate.  This  Court  had
      observed that while hearing a Reference under the Income Tax Act,  the
      High Court exercises advisory jurisdiction and does not sit in  appeal
      over the judgment of the Tribunal. It has been further held  that  the
      High Court has no power to set aside the order of the Tribunal even if
      it is of the view that the conclusion recorded by the Tribunal is  not
      correct.
The third question that has been posed for an answer  before  us
      is with regard to  the  correctness  of  the  manner  of  exercise  of
      jurisdiction by the High Court in the present  case. 
   In the present case, the High Court while hearing the  Reference
      made under Section 256 (2) of the Act had set aside the order  of  the
      Tribunal. 
 Undoubtedly, in the exercise of its Reference  Jurisdiction
      the High Court was not  right  in  setting  aside  the  order  of  the
      Tribunal.  
However, reading the ultimate paragraph of the order of the
      High Court we find that the error is one of form and not of  substance
      inasmuch  as  the  question  arising  in  the   Reference   has   been
      specifically answered in the following manner.
           "We therefore set aside the order of  the  Tribunal  and  uphold
           that of the Commissioner (Appeals) and answer the  questions  in
           favour of the Revenue by  holding  that  the  assessee  had  not
           discharged the burden that it is entitled  to  deductions  under
           Section  37  of  the  Income  Tax  Act.  Reference  is  answered
           accordingly."
In performing the said exercise the High Court
      did not disturb or reverse the primary facts as found by  the  learned
      Tribunal.  Rather, the exercise performed is one of the correct  legal
      inferences that should be drawn on the facts already recorded  by  the
      learned Tribunal.  The questions reframed were  to  the  said  effect.
      The legal inference that should be drawn from the  primary  facts,  as
      consistently held by this Court, is eminently a question of  law.   No
      question of perversity was required to  be  framed  or  gone  into  to
      answer the issues arising.  In  fact,  as  already  held  by  us,  the
      questions relatable to perversity were consciously  discarded  by  the
      High Court.  We, therefore, cannot find any fault with  the  questions
      reframed by the High Court or the answers provided.

      For the aforesaid reasons, Civil Appeal No. 1569 of 2007 has  to
      fail and it is accordingly dismissed. = 2015 S.C.msklawreports

Tuesday, March 10, 2015

Sec.9 of Artbitration and conciliation Act - Jurisdiciton - Applys only to arbitration that takes place in India and has no application to arbitration which takes place out side of India =2015 S.C. msklawreports




Section 9 of the Act is limited  to
      the applications to arbitration that takes place in India and  has  no
      applicability to arbitration which takes place outside India  in  view
      of the pronouncement in  Bharat  Aluminium  Co.  v.  Kaiser  Aluminium
      Technical Services Inc.[1] inasmuch as clause 5 of the contract  which
      is the arbitration clause clearly spells out that the contract  is  to
      be governed and construed according to English law and if the  dispute
      of the claim does not exceed USD 50,000,  the  arbitration  should  be
      conducted in accordance with small  claims  procedure  of  the  London
      Maritime Arbitration Association.=
Apex court held that 
Therefore, we think it would be  appropriate  to  interpret
      the clause that it is a proper clause or substantial clause and not  a
      curial or a procedural one by which the arbitration proceedings are to
      be conducted and hence, we are disposed to  think  that  the  seat  of
      arbitration will be at London.
even
      applying the principles laid down in Bhatia International (supra)  and
      scanning the anatomy of the arbitration clause, we have arrived at the
      conclusion that the courts in India  will  not  have  jurisdiction  as
      there is implied exclusion. High court for different reason rightly set aside the order of District Judge -2015 S.C. msklawreports