LawforAll

advocatemmmohan

My photo
since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions

Just for legal information but not form as legal opinion

WELCOME TO MY LEGAL WORLD - SHARE THE KNOWLEDGE

Saturday, July 4, 2015

medical negligence against the State of Tamil Nadu, its Government Hospital and two Government Doctors= The appellant - V. Krishnakumar, Sharanya’s father is the sole earning member of a middle class family. His wife is said to be a qualified accountant, who had to sacrifice her career to attend to the constant needs of Sharanya. Sharanya’s treatment and the litigation that ensued for almost two decades has been very burdensome on account of the prolonged physical, mental and financial hardships, which her parents had to undergo. It appears that the total expenditure incurred by the appellant from the date of the final verdict of the NCDRC (27.5.2009) until December, 2013 is Rs.8,13,240/-. The aforesaid amount is taken from the uncontroverted statement of expenditure submitted by the appellant. The appellant has stated that he had incurred the following expenditure for Sharanya’s treatment, for which there is no effective counter, till December, 2013: | Medical Expenses |Amount |Supporting Document | |a)Till December |28,63,771/- |Exhibit P1-P4 | |2003 | | | |b)January 2004- |2,57,600/- |Annexure A-8 | |October 2007 | | | |c)27.5.2009 to |8,13,240/- |I.A. No.2 of 2014 in | |December 2013 | |Civil Appeal No. 8065 of| | | |2009 | |d)January 2014 – |2,03,310/- |Based on I.A. No.2 of | |March 2015 | |2014 in Civil Appeal No.| | | |8065 of 2009 | |Total |41,37,921/- | | |(a)+(b)+(c)+(d) | | | We accordingly direct that the above amount i.e. Rs.42,87,921/- shall be paid by the Respondent Nos.1 to 4. In addition, interest at the rate of 6% p.a. shall be paid to the appellant from the date of filing of the petition before the NCDRC till the date of payment. Future Medical Expenses= Going by the uncontroverted statement of expenditure for the period from the final verdict of the NCDRC to December, 2013, the monthly expenditure is stated to be Rs. 13,554/-, resulting in an annual expenditure of Rs. 1,62,648/-. Having perused the various heads of expenditure very carefully, we observe that the medical costs for Sharanya’s treatment will not remain static, but are likely to rise substantially in the future years. Sharanya’s present age is about 18 ½ years. If her life expectancy is taken to be about 70 years, for the next 51 years, the amount of expenditure, at the same rate will work out to Rs. 82,95,048/-. It is therefore imperative that we account for inflation to ensure that the present value of compensation awarded for future medical costs is not unduly diluted, for no fault of the victim of negligence Apportioning For Inflation 23. Inflation over time certainly erodes the value of money. The rate of inflation (Wholesale Price Index-Annual Variation) in India presently is 2 percent[4] as per the Reserve Bank of India. The average inflationary rate between 1990-91 and 2014-15 is 6.76 percent as per data from the RBI. In the present case we are of the view that this inflationary principle must be adopted at a conservative rate of 1 percent per annum to keep in mind fluctuations over the next 51 years. The formula to compute the required future amount is calculated using the standard future value formula:- FV = PV x (1+r)n PV = Present Value r = rate of return n = time period Accordingly, the amount arrived at with an annual inflation rate of 1 percent over 51 years is Rs.1,37,78,722.90 rounded to Rs.1,38,00,000/-. Comparative law = It is settled law that the hospital is vicariously liable for the acts of its doctors vide Savita Garg vs. National Heart Institute, (2004) 8 SCC 56, also followed in Balram Prasad’s case (supra). Similarly in Achutrao Haribhau Khodwa v. State of Maharashtra, (1996) 2 SCC 634 this court unequivocally held that the state would be vicariously liable for the damages which may become payable on account of negligence of its doctors or other employees. By the same measure, it is not possible to absolve Respondent No. 1, the State of Tamil Nadu, which establishes and administers such hospitals through its Department of Health, from its liability.Apportionment of Liability 28. In the circumstances, we consider it appropriate to apportion the liability of Rs. 1,38,00,000/- among the respondents, as follows: Rs. 1,30,00,000/- shall be paid by Respondent Nos. 1 and 2 jointly and severally i.e. The State of Tamil Nadu and the Director, Government Hospital for Women & Children, Egmore, Chennai; and Rs. 8,00,000/- shall be paid by Respondent Nos. 3 and 4 equally i.e. Rs. 4,00,000/- by Dr. S. Gopaul, Neo- pediatrician, Government Hospital for Women & Children, Egmore, Chennai and Rs. 4,00,000/- by respondent no. 4 i.e. Dr. Duraisamy, Neo Natology Unit, Government Hospital for Women & Children, Egmore, Chennai. The above mentioned amount of Rs. 1,38,00,000/- shall be paid by Respondent Nos. 1 to 4 within three months from the date of this Judgment otherwise the said sum would attract a penal interest at the rate of 18% p.a. 29. Further, we direct that the amount of Rs. 42,87,921/- in lieu of past medical expenses, shall be apportioned in the following manner: a) Respondent Nos. 1 and 2 are directed to pay Rs. 40,00,000/- jointly, alongwith interest @ 6% p.a. from the date of filing before the NCDRC; and b) Respondent Nos. 3 and 4 are directed to pay Rs. 2,87,921/- in equal proportion, alongwith interest @ 6% p.a. from the date of filing before the NCDRC. 30. In the event the Respondent Nos. 1 and 3 have made any payment in accordance with the award of the NCDRC, the same may be adjusted. 31. Accordingly, Civil Appeal No. 8065 of 2009 is allowed in the above terms and Civil Appeal No. 5402 of 2010 is dismissed. No costs.

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION



                       CIVIL  APPEAL No. 8065  OF 2009





V. KRISHNAKUMAR                              .. APPELLANT



                             VERSUS

STATE OF TAMIL NADU & ORS.                    ..RESPONDENTS

                                    With

                       CIVIL  APPEAL No.  5402 OF 2010



                                 1 JUDGMENT



S. A. BOBDE, J.

These two Civil Appeals are  preferred  against  the  judgment  of  National
Consumer Disputes Redressal  Commission  (hereinafter  referred  to  as  the
‘NCDRC’) rendering a finding of medical  negligence  against  the  State  of
Tamil Nadu, its Government Hospital and two Government Doctors and  awarding
a sum of Rs.5,00,000/- to V. Krishnakumar.  Civil Appeal No.  8065  of  2009
is  preferred  by  V.  Krishnakumar  for  enhancement  of  the   amount   of
compensation.  Civil Appeal No. 5402 of 2010 is preferred by  the  State  of
Tamil Nadu and another against the judgment of the NCDRC.  As facts of  both
the appeals are same, we are disposing the appeals by this common judgment.
2.          On 30.8.1996, the appellant V.  Krishankumar's  wife  Laxmi  was
admitted in Government Hospital for  Women  and  Children,  Egmore,  Chennai
(hereinafter referred to as the “Hospital”). Against  the  normal  gestation
period of 38 to 40 weeks, she delivered a premature female baby in the  29th
week of pregnancy.  The baby weighed only 1250 grams at  birth.  The  infant
was placed in an incubator in intensive care unit for about  25  days.   The
mother and the baby were discharged on 23.9.1996.  A fact which is  relevant
to the issue is, that the baby was administered 90-100% oxygen at  the  time
of birth and underwent blood exchange transfusion a week  after  birth.  The
baby had apneic spells during the first 10 days of her life. She  was  under
the care of Respondent No.3 - Dr. S.Gopaul, Neo-paediatrician and  Chief  of
Neo Natology Unit of the Hospital and Respondent No.4 -  Dr.  Duraiswamy  of
the Neo Natology Unit of the Hospital.  The Respondent No.2 is the  Director
of the Hospital, which is established and  run  by  the  Respondent  No.1  –
State of Tamil Nadu under the Department of Health.
3.          The baby and the mother visited the hospital  on  30.10.1996  at
the chronological age of 9 weeks. Follow up treatment  was  administered  at
the home of the appellant by Respondent No.4,  the  Government  Doctor,  Dr.
Duraiswamy during home visits.  The baby was under his care from 4 weeks  to
13 weeks  of  chronological  age.  Apparently,  the  only  advice  given  by
Respondent No.4 was to keep the baby  isolated  and  confined  to  the  four
walls of the sterile room so that she could  be  protected  from  infection.
What was completely overlooked was a well known medical  phenomenon  that  a
premature baby who has been administered supplemental oxygen  and  has  been
given blood transfusion is prone to a higher risk of a disease known as  the
Retinopathy of Prematurity (hereinafter referred to  as  ‘ROP’),  which,  in
the usual course of advancement makes a child blind.  The  Respondent  No.3,
who was also a Government Doctor, checked up the baby at his private  clinic
at Purassaiwakkam, Chennai when the baby was 14-15  weeks  of  chronological
age also did not suggest a check up for ROP.
4.          One  thing  is  clear  about  the  disease,  and  this  was  not
contested by the learned counsel  for  the  respondents,  that  the  disease
occurs in infants who are prematurely born and who  have  been  administered
oxygen and blood transfusion upon birth and further, that if detected  early
enough, it can be prevented.  It is said that  prematurity  is  one  of  the
most common causes of blindness and is caused  by  an  initial  constriction
and then rapid growth of  blood  vessels  in  the  retina.  When  the  blood
vessels leak, they cause scarring. These scars can later shrink and pull  on
the retina,  sometimes  detaching  it.  The  disease  advances  in  severity
through five stages - 1, 2, 3, 4 and 5 (5 being  terminal  stage).   Medical
literature suggests that stage 3 can be  treated  by  Laser  or  Cryotherapy
treatment in order to eliminate the abnormal vessels. Even in  stage  4,  in
some cases, the central retina or  macula  remains  intact  thereby  keeping
intact the central vision. When the disease is allowed to progress to  stage
5, there is a total detachment and the retina becomes funnel shaped  leading
to blindness. There is ample medical  literature  on  the  subject.  It  is,
however, not necessary to refer all of it. Some  material  relevant  to  the
need for check up for ROP for an infant is:
“All infants with a birth weight less than 1500 gms or gestational age  less
than 32 weeks are required to be screened for ROP.”[1]

Applying either parameter, whether weight  or  gestational  age,  the  child
ought to have been screened.  As stated earlier, the child was 1250  gms  at
birth and born after 29 weeks of pregnancy, thus  making  her  a  high  risk
candidate for ROP.
5.          It is undisputed that  the  relationship  of  birth  weight  and
gestational age to ROP as reproduced in NCDRC’s order is as follows:
“Most ROP is seen in very low-birth weight infants,  and  the  incidence  is
inversely related to birth weight  and  gestational  age.  About  70-80%  of
infants with birth weight less than 1000 gms  show  acute  changes,  whereas
above 1500 gms birth weight the frequency falls to less than 10%.”

6.          Again, it seems that the child in question was  clearly  not  in
the category where the frequency was less than 10% since the baby was  below
1500 gms. In fact, it is observed  by  the  NCDRC  in  its  order  that  the
discipline of medicine reveals that all infants who had undergone less  than
29 weeks of gestation or  weigh  less  than  1300  gms  should  be  examined
regardless of whether they have been  administered  oxygen  or  not.  It  is
further observed that ROP is a visually devastative disease that  often  can
be treated successfully if it is diagnosed in time.
7.          The need for a medical check up for the infant in  question  was
not seriously disputed by the respondents.
8.          The  main  defence  of  the  respondents  to  the  complaint  of
negligence against the appellant’s claim for compensation was  that  at  the
time of delivery and management, no  deformities  were  manifested  and  the
complainant was given proper advice, which was not followed. It  was  argued
on behalf of the respondent that  they  had  taken  sufficient  precautions,
even against ROP by mentioning in the discharge summary as follows:
“Mother confident;  Informed  about  alarm  signs;  1)  to  continue  breast
feeding 2) To attend post natal O.P. on Tuesday."

9.          It must, however, be noted  that  the  discharge  summary  shows
that the above writing was in the nature of a scrawl in the  corner  of  the
discharge summary and we are in agreement with  the  finding  of  the  NCDRC
that the said remarks  are  only  a  hastily  written  general  warning  and
nothing more.  After a stay of 25 days in  the  hospital,  it  was  for  the
hospital to give a clear indication as to what was to be done regarding  all
possible dangers which a baby in these circumstances faces.  It  is  obvious
that it did not occur to the respondents to advise the  appellant  that  the
baby is required to be seen by a paediatric ophthalmologist since there  was
a possibility of occurrence  of  ROP  to  avert  permanent  blindness.  This
discharge summary neither discloses a warning to the infant’s  parents  that
the infant might develop ROP  against  which  certain  precautions  must  be
taken, nor any signs that  the  Doctors  were  themselves  cautious  of  the
dangers of development of ROP.  We are not prepared to infer from  ‘Informed
about alarms signs’ that the parents were cautioned about ROP in this  case.
 We find it unfortunate that the respondents at one stage took a stand  that
the appellant did not follow up properly by not attending on a  Tuesday  but
claiming that the mother attended on a Wednesday  and  even  contesting  the
fact that she attended on a Wednesday.  It appears like a desperate  attempt
to cover up the gross negligence in not examining the child  for  the  onset
of ROP, which is a standard precaution for a well known condition in such  a
case.  In fact, it is not disputed that the Respondent No.3 attended to  and
examined the baby at his private clinic when the baby was  14-15  weeks  and
even then did not take any step to investigate into the onset of  ROP.   The
Respondent No.4 also visited the appellant to check up the baby at the  home
of the appellant and there are prescriptions issued by the  said  Respondent
No.4, which suggests that the baby was indeed under his care  from  4  weeks
to 13 weeks.
10.   The NCDRC has relied on the report dated 21.8.2007 of  the  All  India
Institute of  Medical  Sciences,  New  Delhi  (hereinafter  referred  to  as
‘AIIMS’).  In pursuance of the order of  the  NCDRC,  a  medical  board  was
constituted by  AIIMS  consisting  of  five  members,  of  which,  four  are
ophthalmological specialists. The board has given the following opinion:-
"A premature infant is not born with Retinopathy of Prematurity  (ROP),  the
retina though immature is normal  for  this  age.  The  ROP  usually  starts
developing 2-4 weeks after birth when  it  is  mandatory  to  do  the  first
screening of the child. The current guidelines are  to  examine  and  screen
the babies with birth weight<1500g and <32 weeks gestational  age,  starting
at 31 weeks post-conceptional age (PAC) or 4 weeks after birth whichever  is
later. Around a decade ago, the guidelines in general were the same and  the
premature babies were first examined at 31-33  weeks  post-conceptional  age
or 2-6 weeks after birth.
There is a general agreement on these above guidelines  on  a  national  and
international level.  The  attached  annexure  explains  some  authoritative
resources and guidelines published in national and international  literature
especially over the last decade.
However,  in  spite  of  ongoing  interest  world  over  in  screening   and
management of ROP and  advancing  knowledge,  it  may  not  be  possible  to
exactly predict which premature baby will develop ROP  and  to  what  extent
and why."


              Review of literature of ROP screening guidelines


One thing this report reveals clearly and that is that in the  present  case
the onset of ROP was reasonably foreseeable.  We  say  this  because  it  is
well known that if a  particular  danger  could  not  reasonably  have  been
anticipated it cannot be said that a person has acted  negligently,  because
a  reasonable  man  does  not   take   precautions   against   unforeseeable
circumstances.  Though it was fairly suggested to the contrary on behalf  of
the respondents, there is nothing to indicate that the disease  of  ROP  and
its occurrence was not known to the medical profession  in  the  year  1996.
This is important because whether the consequences were foreseeable  or  not
must be measured with reference to knowledge at  the  date  of  the  alleged
negligence, not with hindsight.  We are  thus  satisfied  that  we  are  not
looking at the 1996 accident with 2007 spectacles.[2]
11.   It is obvious from the report that ROP starts developing 2 to 4  weeks
after birth when it is mandatory to do the first  screening  of  the  child.
The baby in question was admitted for a period of 25 days and there  was  no
reason why the mandatory screening, which is an accepted practice,  was  not
done.  The report of the AIIMS (supra) states that ‘it may not  be  possible
to exactly predict which premature baby will develop ROP and to what  extent
and why’.  This in our view underscores the need for a check up in all  such
cases.  In fact,  the  screening  was  never  done.  There  is  no  evidence
whatsoever to suggest to the contrary.  It appears from  the  evidence  that
the ROP was discovered when the appellant went  to  Mumbai  for  a  personal
matter and took his daughter to  a  paediatrician,  Dr.  Rajiv  Khamdar  for
giving DPT shots when she was 4½ months.  That Doctor, suspected ROP  on  an
examination with naked eye even without knowing  the  baby’s  history.  But,
obviously Respondent Nos.3 and 4 the Doctors entrusted with the care of  the
child did not detect any such thing at  any  time.   The  helpless  parents,
after detection got the baby’s eyes checked by having the baby  examined  by
several doctors at several places.  Traumatised and shocked, they rushed  to
Puttaparthy for the blessings of Shri  Satya  Sai  Baba  and  the  baby  was
anesthetically examined by Dr.  Deepak  Khosla,  Consultant,  Department  of
Ophthalmology at Baba Super Specialty Hospital at  Puttaparthy.  Dr.  Khosla
did not take up the case since the ROP had reached stage  5.   After  coming
back from Puttaparthy, the baby was examined by Dr. Tarun  Sharma  alongwith
the retinal team of Shankar Netralaya, who were also of  the  same  opinion.
The parents apparently took the baby  to  Dr.  Namperumal  Swamy  of  Arvind
Hospital, Madurai, who advised against  surgery,  stating  that  the  baby’s
condition was unfavourable for surgery. The appellant  then  learnt  of  Dr.
Michael Tresse, a renowned expert in Retinopathy  treatment  for  babies  in
the United States. He obtained a reference  from  Dr.  Badrinath,  chief  of
Shankar Netralaya and took his only child to the United  States  hoping  for
some ray of light.  The appellant incurred enormous expenses for surgery  in
the United States but to no avail.
12.   Having given our anxious consideration to the matter, we find that  no
fault can be found with the  findings  of  the  NCDRC  which  has  given  an
unequivocal finding that at no stage,  the  appellant  was  warned  or  told
about the possibility of occurrence of ROP by the  respondents  even  though
it was their duty to do so. Neither  did  they  explain  anywhere  in  their
affidavit that they warned of the  possibility  of  the  occurrence  of  ROP
knowing fully well that the chances of  such  occurrence  existed  and  that
this constituted a gross deficiency in service, nor  did  they  refer  to  a
paediatric ophthalmologist.  Further it may be noted that Respondent Nos.  3
& 4 have not appealed to this Court against the judgment of  the  NCDRC  and
have thus accepted the finding of medical negligence against them.
Deficiency in Service
13.   In the circumstances, we agree with the findings  of  the  NCDRC  that
the respondents were negligent in their duty and  were  deficient  in  their
services in not screening the child between 2 to 4 weeks  after  birth  when
it is mandatory to do so and especially since  the  child  was  under  their
care. Thus, the negligence began under the supervision of the Hospital  i.e.
Respondent No.2. The Respondent Nos. 3 and 4, who checked the  baby  at  his
private  clinic  and  at  the  appellant’s  home,  respectively,  were  also
negligent in not advising screening for ROP. It is pertinent  to  note  that
Respondent Nos. 3 and 4 carried on their own private  practice  while  being
in the employment of Respondent No. 2, which was a violation of their  terms
of service.
Compensation
14.   The next question that falls for  consideration  is  the  compensation
which the respondents are liable to pay for their negligence and  deficiency
in service.  The child called Sharanya has been  rendered  blind  for  life.
The darkness in her life can  never  be  really  compensated  for  in  money
terms. Blindness can have terrible consequences. Though, Sharanya  may  have
parents now, there is no doubt that she will not have  that  protection  and
care forever.  The family belongs to the middle class and  it  is  necessary
for the father to attend to his work.  Undoubtedly, the mother would not  be
able to take Sharanya out everywhere and is bound to leave the  child  alone
for reasonable spells of time. During this time,  it  is  obvious  that  she
would require help and maybe later on in life  she  would  have  to  totally
rely on such help. It is therefore difficult to imagine unhindered  marriage
prospects or even a regular career which  she  may  have  otherwise  pursued
with ease.  She may also face great difficulties in getting  education.  The
parents  have  already  incurred  heavy  expenditure  on  the  treatment  of
Sharanya to no avail.  It is, thus, obvious that there  should  be  adequate
compensation for the expenses already  incurred,  the  pain  and  suffering,
lost wages and the future care that would be necessary while accounting  for
inflationary trends.
15.   There is no doubt that in the future Sharanya  would  require  further
medical attention and would have to incur costs on  medicines  and  possible
surgery.  It can be reasonably said that the blindness has put  Sharanya  at
a great disadvantage in her pursuit for making a good  living  to  care  for
herself.
16.   At the outset, it may be noted that in  such  cases,  this  court  has
ruled out the  computation  of  compensation  according  to  the  multiplier
method. (See Balram Prasad vs. Kunal Saha, (2014)  1  SCC  384  and  Nizam’s
Institute of Medical Sciences vs. Prashant S. Dhananka and Others, (2009)  6
SCC 1.
The court rightly warned against the straightjacket approach  of  using  the
multiplier method for calculating damages in medical negligence cases.
Quantification of Compensation
17.   The principle of awarding compensation that can be  safely  relied  on
is restitutio in integrum.  This principle has been  recognized  and  relied
on in Malay Kumar Ganguly vs. Sukumar Mukherjee, (2009) 9  SCC  221  and  in
Balram Prasad’s case (supra), in the following passage from the latter:
“170. Indisputably, grant of compensation involving an  accident  is  within
the realm of law of torts. It is based on the  principle  of  restitutio  in
integrum. The said principle provides that  a  person  entitled  to  damages
should, as nearly as possible, get that sum of money which would put him  in
the same position as he would have been if he had not sustained  the  wrong.
(See Livingstone v. Rawyards Coal Co.).”

An application of this principle is that the  aggrieved  person  should  get
that sum of money, which would put him in the same position if  he  had  not
sustained  the  wrong.  It  must  necessarily  result  in  compensating  the
aggrieved person for the financial loss suffered due to the event, the  pain
and suffering undergone and the liability that he/she would  have  to  incur
due to the disability caused by the event.

Past Medical Expenses
18.   It is, therefore, necessary to consider the loss  which  Sharanya  and
her parents had to  suffer  and  also  to  make  a  suitable  provision  for
Sharanya’s future.
19.   The appellant  -  V.  Krishnakumar,  Sharanya’s  father  is  the  sole
earning member of a  middle  class  family.   His  wife  is  said  to  be  a
qualified accountant, who had to sacrifice  her  career  to  attend  to  the
constant needs of Sharanya.  Sharanya’s treatment and  the  litigation  that
ensued for almost two decades has been very burdensome  on  account  of  the
prolonged physical, mental and financial hardships, which  her  parents  had
to  undergo.   It  appears  that  the  total  expenditure  incurred  by  the
appellant from the date of the final verdict of the NCDRC (27.5.2009)  until
December, 2013 is Rs.8,13,240/-.  The aforesaid amount  is  taken  from  the
uncontroverted statement of expenditure  submitted  by  the  appellant.  The
appellant has stated that he had  incurred  the  following  expenditure  for
Sharanya’s  treatment,  for  which  there  is  no  effective  counter,  till
December, 2013:
| Medical Expenses  |Amount        |Supporting Document     |
|a)Till December    |28,63,771/-   |Exhibit P1-P4           |
|2003               |              |                        |
|b)January 2004-    |2,57,600/-    |Annexure A-8            |
|October   2007     |              |                        |
|c)27.5.2009 to     |8,13,240/-    |I.A. No.2 of 2014 in    |
|December 2013      |              |Civil Appeal No. 8065 of|
|                   |              |2009                    |
|d)January 2014 –   |2,03,310/-    |Based on I.A. No.2 of   |
|March 2015         |              |2014 in Civil Appeal No.|
|                   |              |8065 of 2009            |
|Total              |41,37,921/-   |                        |
|(a)+(b)+(c)+(d)    |              |                        |

20.   Since there is no reason to assume that there has been any  change  in
the expenditure, we have calculated the expenditure  from  January  2014  to
March 2015 at the same rate as the preceding period.  In addition,  we  also
deem it fit to award a sum of  Rs.  1,50,000/-  in  lieu  of  the  financial
hardship  undergone  particularly  by  Sharanya’s  mother,  who  became  her
primary caregiver and was thus prevented from pursuing her  own  career.  In
Spring Meadows Hospital and Another v. Harjol  Ahluwalia  [1998  4  SCC  39]
this court acknowledged the  importance  of  granting  compensation  to  the
parents of a victim of medical negligence in  lieu  of  their  acute  mental
agony and the lifelong care and attention they would have  to  give  to  the
child. This being so, the financial hardship faced by the parents, in  terms
of lost wages and time must also be recognized. Thus, the above  expenditure
must be allowed.
21.   We accordingly direct that the above amount i.e. Rs.42,87,921/-  shall
be paid by the Respondent Nos.1 to 4.  In addition, interest at the rate  of
6% p.a. shall be paid to the appellant  from  the  date  of  filing  of  the
petition before the NCDRC till the date of payment.
Future Medical Expenses

22.   Going by the uncontroverted statement of expenditure  for  the  period
from the  final  verdict  of  the  NCDRC  to  December,  2013,  the  monthly
expenditure  is  stated  to  be  Rs.  13,554/-,  resulting  in   an   annual
expenditure  of  Rs.  1,62,648/-.  Having  perused  the  various  heads   of
expenditure  very  carefully,  we  observe  that  the  medical   costs   for
Sharanya’s treatment  will  not  remain  static,  but  are  likely  to  rise
substantially in the future years. Sharanya’s present  age  is  about  18  ½
years.  If her life expectancy is taken to be about 70 years, for  the  next
51 years, the amount of expenditure, at the same rate will work out  to  Rs.
82,95,048/-. It is therefore imperative that we  account  for  inflation  to
ensure that the present value of compensation  awarded  for  future  medical
costs is not unduly diluted, for no fault of the victim of  negligence.  The
impact of inflation affects us all. The value of  today’s  rupee  should  be
determined in the future. For instance, a sum of  Rs. 100 today, in  fifteen
years, given a modest 3% inflation rate, would be worth  only  Rs.64.13.  In
Wells v. Wells[3] the House of Lords observed that the purpose  of  awarding
a lump sum for damages for the costs of  future  care  and  loss  of  future
earnings was to put the plaintiff in the same financial position as  if  the
injury had not occurred, and consequently the courts had the difficult  task
of ensuring that the award maintained its value in real terms,  despite  the
effect of inflation.
Apportioning For Inflation
23.   Inflation over time certainly erodes the value of money. The  rate  of
inflation (Wholesale Price Index-Annual Variation) in India presently  is  2
percent[4] as per the Reserve Bank of India. The average  inflationary  rate
between 1990-91 and 2014-15 is 6.76 percent as per data  from  the  RBI.  In
the present case we are of the view that this  inflationary  principle  must
be adopted at a conservative rate of 1 percent per annum  to  keep  in  mind
fluctuations over the next 51 years.
The formula to compute the required future amount is  calculated  using  the
standard future value formula:-
      FV = PV x (1+r)n
PV = Present Value
r = rate of return
n = time period

Accordingly, the amount arrived at  with  an  annual  inflation  rate  of  1
percent over 51 years is Rs.1,37,78,722.90 rounded to Rs.1,38,00,000/-.
Comparative law
24.   This Court has referred to case law  from  a  number  of  other  major
common law jurisdictions on the question of accounting for inflation in  the
computation of awards in medical negligence  cases.  It  is  unnecessary  to
discuss it in detail. It  is  sufficient  to  note  that  the  principle  of
apportioning for inflationary fluctuations in the final lump sum  award  for
damages has been upheld and applied in numerous cases pertaining to  medical
negligence. In the United States of America, most states, as in Ireland  and
the United Kingdom, require awards for future medical costs  to  be  reduced
to their present value so that the damages can be awarded in the form  of  a
one-time  lump  sum.  The  leading  case  in  the   United   States,   which
acknowledges the impact of inflation while calculating damages  for  medical
negligence was Jones & Laughlin Steel  Corporation  v.  Pfeifer[5],  wherein
that court recognized the propriety of taking into account  the  factors  of
present value and  inflation  in  damage  awards.  Similarly,  in  O'Shea  v
Riverway Towing Co.[6], Posner J.,  acknowledged  the  problem  of  personal
injury victims being severely undercompensated as a result  of  persistently
high inflation.

In  Taylor  v.  O’  Connor[7],  Lord  Reid  accepted   the   importance   of
apportioning for inflation:
“It will be observed that I have more than once taken note  of  present  day
conditions - in particular  rising  prices,  rising  remuneration  and  high
rates of interest. I am well aware that there is a school of  thought  which
holds that the law should refuse to have any regard to  inflation  but  that
calculations should be based on stable prices, steady or  slowly  increasing
rates of remuneration and low rates of interest.  That  must,  I  think,  be
based either on an expectation of an early return to a period  of  stability
or on a nostalgic reluctance to recognise change.  It  appears  to  me  that
some people fear that inflation will get worse, some think that it  will  go
on much as  at  present,  some  hope  that  it  will  be  slowed  down,  but
comparatively few believe that a return to the old  financial  stability  is
likely in the foreseeable future. To take any account  of  future  inflation
will no doubt cause complications and make estimates  even  more  uncertain.
No doubt we should not assume the worst but it  would,  I  think,  be  quite
unrealistic to refuse to take it into account at all.”

In the same case Lord Morris of Borth-y-Gest also upheld  the  principle  of
taking into account future uncertainties. He observed:

“It is to be remembered that the sum which is awarded will  be  a  once-for-
all or final amount which the widow  must  deploy  so  that  to  the  extent
reasonably possible she gets the equivalent of what she has lost. A  learned
judge cannot be expected to prophesy as to future monetary trends  or  rates
of interest but he need  not  be  unmindful  of  matters  which  are  common
knowledge, such as the uncertainties as to  future  rates  of  interest  and
future levels of taxation. Taking a reasonable  and  realistic  and  common-
sense view of all aspects of the matter he must try to fix  a  figure  which
is neither unfair to the recipient nor to the one who has to pay. A  learned
judge might well take the view that a recipient would be ill-advised  if  he
entirely ignored all inflationary trends and if he applied  the  entire  sum
awarded to him in the purchase of an annuity which over a  period  of  years
would give him a fixed and predetermined sum  without  any  provision  which
protected him against inflationary trends if they developed.”

More recently the Judicial Committee of the UK Privy  Council  in  Simon  v.
Helmot[8] has unequivocally acknowledged the principle, that  the  lump  sum
awarded in medical negligence cases should be adjusted so as to reflect  the
predicted rate of inflation.
25.   Accordingly, we direct that  the  said  amount  i.e.  Rs.1,38,00,000/-
shall be paid, in the form of a Fixed Deposit, in the name of  Sharanya.  We
are informed  that  the  said  amount  would  yield  an  approximate  annual
interest of Rs. 12,00,000/-.
26.   We find from the impugned order of the  NCDRC  that  the  compensation
awarded by that Forum is directed to be paid only by Respondent Nos.  1  and
3 i.e. the  State  of  Tamil  Nadu  and  Dr.  S.  Gopaul,  Neo-pediatrician,
Government Hospital for Women & Children, Egmore, Chennai.   No  reason  has
been assigned by the Forum  for  relieving  Respondent  Nos.2  and  4.   Dr.
Duraiswami, Neo Natology Unit, Government Hospital  for  Women  &  Children,
Egmore, Chennai, who also treated Sharanya during the course of  his  visits
to the house of the appellant.
27.    It is settled law that the hospital is  vicariously  liable  for  the
acts of its doctors vide Savita Garg vs. National Heart Institute, (2004)  8
SCC 56, also  followed  in  Balram  Prasad’s  case  (supra).   Similarly  in
Achutrao Haribhau Khodwa v. State of Maharashtra,  (1996)  2  SCC  634  this
court unequivocally held that the state would be vicariously liable for  the
damages which may become payable on account of negligence of its doctors  or
other employees. By  the  same  measure,  it  is  not  possible  to  absolve
Respondent  No.  1,  the  State  of  Tamil  Nadu,  which   establishes   and
administers such hospitals  through  its  Department  of  Health,  from  its
liability.





Apportionment of Liability
28.   In the circumstances, we consider  it  appropriate  to  apportion  the
liability of Rs. 1,38,00,000/- among the respondents, as follows:
   Rs.  1,30,00,000/- shall be paid by Respondent Nos. 1 and 2  jointly  and
severally i.e.  The  State  of  Tamil  Nadu  and  the  Director,  Government
Hospital for Women & Children, Egmore, Chennai; and
   Rs. 8,00,000/- shall be paid by Respondent Nos. 3 and 4 equally i.e.  Rs.
4,00,000/- by Dr. S. Gopaul,  Neo-  pediatrician,  Government  Hospital  for
Women & Children, Egmore, Chennai and Rs. 4,00,000/-  by  respondent  no.  4
i.e. Dr. Duraisamy, Neo Natology Unit,   Government  Hospital  for  Women  &
Children, Egmore, Chennai.
The above mentioned amount of Rs. 1,38,00,000/- shall be paid by  Respondent
Nos. 1 to 4 within three months from the date  of  this  Judgment  otherwise
the said sum would attract a penal interest at the rate of  18% p.a.
29.   Further, we direct that the amount of Rs. 42,87,921/- in lieu of  past
medical expenses, shall be apportioned in the following manner:
a)          Respondent Nos. 1 and 2  are  directed  to  pay              Rs.
40,00,000/- jointly, alongwith interest @ 6% p.a. from the  date  of  filing
before the NCDRC; and
b)          Respondent Nos. 3 and 4 are  directed  to  pay               Rs.
2,87,921/- in equal proportion, alongwith interest @ 6% p.a. from  the  date
of filing before the NCDRC.
30.   In the event the Respondent Nos. 1 and 3  have  made  any  payment  in
accordance with the award of the NCDRC, the same may be adjusted.
31.   Accordingly, Civil Appeal No. 8065 of 2009 is  allowed  in  the  above
terms and Civil Appeal No. 5402 of 2010 is dismissed. No costs.

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




                                   …...................................………J.
                                                     [S.A. BOBDE]
NEW DELHI,
JULY 1, 2015
-----------------------
[1]    AIIMS Report dated 21.8.2007
[2]     See Roe v. Minister of Health [1954] 2 QB 66 and the  discussion  in
‘Medical Negligence’, Michael Jones, 4th Edition, Sweet  &  Maxwell,  London
2008 at page 270.
[3]    [1999] 1 A.C. 345.
[4]    Handbook of Statistics, Reserve Bank of India
[5]    (1983) 462 US 523
[6]    (1982) 677 F.2d 1194, at 1199 (7th Cir)
[7]    [1971] A.C. 115
[8]    [2012] UKPC 5


-----------------------
|Year  |Source         |First Screening|Who to screen   |
|2006  |American       |31 wks PCA or 4|<1500gms birth  |
|      |Academy of     |wks after birth|weight or <32   |
|      |Pediatrics et  |whichever later|wks GA or higher|
|      |al.            |               |                |
|2003  |Jalali S et al.|31 wks PCA or  |<1500g birth    |
|      |Indian J       |3-4 wks after  |weight or <32   |
|      |Ophthalmology  |birth whichever|wks GA or higher|
|      |               |earlier        |                |
|2003  |Azad et al.    |32 wks PCA or  |<1500g birth    |
|      |JIMA           |4-5 wks after  |weight or <32   |
|      |               |birth-         |wks GA or higher|
|      |               |whichever      |                |
|      |               |earlier        |                |
|2002  |Aggarwal R et. |32 wks PCA or  |<1500 gm birth  |
|      |Al Indian J.   |4-6 wks after  |weight or <32   |
|      |Pediatrics     |birth whichever|wks GA          |
|      |               |earlier        |                |
|1997  |American       |31-33 wks PCA  |<1500 gm birth  |
|      |Academy of     |or 4-6 wks     |weight or <28   |
|      |Paediatrics et |after birth    |wks GA or higher|
|      |al.            |               |                |
|1996  |Maheshwari R et|32 wks PCA or 2|<1500 gm birth  |
|      |al. National   |wks after birth|weight or <35   |
|      |Med. J. India  |whichever is   |wks GA or 02>24 |
|      |               |earlier        |hrs             |
|1988  |Cryotherapy ROP|4-6 wks after  |<1250 gms birth |
|      |Group          |birth          |weight          |








The principle is derived from the Latin maxim ratihabitio mandato aequiparatur, namely, “a subsequent ratification of an act is equivalent to a prior authority to perform such act.” Therefore, ratification assumes an invalid act which is retrospectively validated.” “In the present case, the Managing Director’s order dismissing the respondent from service was admittedly ratified by the Board of Directors unquestionably had the power to terminate the services of the respondent. Since the order of the Managing Director had been ratified by the Board of Directors such ratification related back to the date of the order and validated it.” 40) Applying the aforementioned law of ratification to the facts at hand, even if we assume for the sake of argument that the order of dismissal dated 16.08.1996 was passed by the Principal & Secretary who had neither any authority to pass such order under the Rules nor there was any authorization given by the BOG in his favour to pass such order yet in our considered view when the BOG in their meeting held on 22.08.1996 approved the previous actions of the Principal & Secretary in passing the respondent's dismissal order dated 16.08.1996, all the irregularities complained of by the respondent in the proceedings including the authority exercised by the Principal & Secretary to dismiss him stood ratified by the Competent Authority (Board of Governors) themselves with retrospective effect from 16.8.1996 thereby making an invalid act a lawful one in conformity with the procedure prescribed in Rules. 41) In such circumstances, the respondent's grievance that the dismissal order had not been passed by the competent authority, i.e., the BOG is no longer survived. 42) In the light of foregoing discussion, we differ with the view taken by the High Court and accordingly hold that the dismissal order dated 16.08.1996 was passed by the Competent Authority, namely, the BOG as prescribed in the Rules and hence it was legal and proper. It is accordingly upheld. 43) As already mentioned above, no other point was urged by the respondent in the writ petition and also in intra court appeal of the appellant by filing cross objection therein for assailing the legality and correctness of the dismissal order on other grounds except the one which we have decided. It is, therefore, not necessary to go into any other question.

                                                                  Reportable
                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL No. 5070 OF 2008


National Institute of Technology
& Anr.                                       Appellant(s)


                            VERSUS



Pannalal Choudhury & Anr.               Respondent(s)

                               J U D G M E N T
Abhay Manohar Sapre, J.
1)    This appeal  is  filed  against  the  final  judgment  &  order  dated
17.11.2006 passed by the High Court of Gauhati in W.A. No. 106/2004.
2)    In order to appreciate the issue involved in this appeal,  which  lies
in a narrow compass, it is necessary to set out the relevant facts in  brief
infra.
3)    The appellant is a reputed  Technical  Educational  Institute  in  the
country. It is known as  "National  Institute  of  Technology"  (hereinafter
referred to as “NIT”) at Silchar in the State of Assam. Till 28.06.2002,  it
was functioning as Regional Engineering College (hereinafter referred to  as
“REC”) in equal participation of State and Central Government.  However,  on
and after 28.06.2002, it became fully owned Central  Government  Educational
Institute under the exclusive control and supervision of Central  Government
and was accordingly named as NIT.
4)     The  respondent  was  originally  appointed   as   Deputy   Registrar
(Accounts) on 17.07.1986 by the erstwhile REC in their Institute. After  few
years, the respondent, on being selected, was appointed as Registrar of  the
REC. However, he was asked to hold the post of Deputy  Registrar  (Accounts)
till the said post was regularly filled up.
5)    In  the  year  1994-95,  it  was  noticed  in  the  audit  that  while
functioning as  Registrar/Deputy  Registrar(Accounts),  the  respondent  had
committed several serious financial as also  administrative  irregularities.
  The  irregularities  were  related  to  the   acts   of   insubordination,
dereliction of  duties  while  attending  to  the  work  of  the  Institute,
suppression of facts from the higher  authorities  and  misappropriation  of
Institution's funds thereby putting the Institute to suffer loss etc.
6)     The  Management  of  REC  accordingly   issued   three   show   cause
notices/charge sheets two on 24.10.1994 (Annexure-P-1collectively)  and  one
on 01.02.1995 (Annexure P-3) to the respondent under Rule  9  of  the  Assam
Services (Discipline and Appeal) Rules, 1964  (hereinafter  referred  to  as
“the Rules”). The details of the irregularities/misconduct committed by  the
respondent were enclosed with the charge sheets. The  respondent  was  asked
to file his written reply to the aforesaid charge sheets. He was also  asked
to inspect the relevant documents, if he so desired to do so.
7)    The matter was accordingly placed in the 66th meeting of the Board  of
Governors (in short “BOG”) held on 07.12.1994 as agenda Item Nos. 7 (a)  and
8 under the caption – “To receive  a  note  of  recent  financial  stalemate
created by Shri Pannalal Choudhary,  Registrar  who  was  also  holding  the
charge of Deputy Registrar  (Accounts)  and  suggest  remedial  measures  to
avoid such situation in future”  and second “To  consider  rectification  of
irregularities observed by A.G. Audit in the accounts of REC “Silchar”.
8)    The BOG discussed the matter under reference in the said  meeting  and
viewed the same as being serious  because  of  nature  of  charges  and  the
allegations made in support thereof. The BOG approved the  action  proposed,
initiated and taken by the Principal & Secretary against the  respondent  so
far and further directed to take  next  disciplinary  step  in  consultation
with the Chairman, BOG.
9)    This led to constitution of an inquiry Committee consisting  of  three
Members by the Management for holding a regular  departmental  inquiry  into
the charges leveled against the respondent.  Out of three Members,  one  Dr.
S.K. Das –  Head  of  the  Department  of  Humanities  of  REC  Silchar  was
appointed as the  Presiding  Officer  while  Sri.  R.  Gupta,  Head  of  the
Department of Applied  Mechanics  and  Sr.  A.I.  Laskar,  Lecturer  in  the
Department of Civil Engineering were the Members. Since the charges  leveled
against the respondent were serious in nature,   the  BOG,  by  order  dated
17.02.1995  put  the  respondent  under  suspension   pending   departmental
inquiry.
10)    The  Committee  then  issued  notices  to  the  respondent  for   his
appearance on various dates  such  as  04.07.1995,  20.07.1995,  03.08.1995,
14.08.1995 and 27.12.1995 to participate in the inquiry  but  he  failed  to
appear for the  reasons  best  known  to  him.  The  Management  accordingly
examined  four  witnesses  in  support  of  the   charges   on   14.08.1995.
Thereafter, on 27.12.1995 the respondent sent  a  letter  to  the  Committee
praying therein that since he has challenged his suspension order in  Court,
the departmental proceedings initiated against him be  stayed  awaiting  the
outcome of the Court proceedings.
11)   The Committee considered the prayer made by the respondent and was  of
the view that in the absence of stay order passed by any Court, there is  no
justification  to  stay  the  departmental  proceedings  as  prayed  by  the
respondent.  The Committee, therefore,  rejected  the  prayer  made  by  the
respondent and issued another notice to the  respondent  requesting  him  to
appear before the Committee on 10.01.1996. The  respondent  did  not  appear
and hence the inquiry proceedings were  adjourned  for  18.01.1996.  In  the
notice sent to the respondent for  his  appearance  on  18.01.1996,  it  was
specifically mentioned that in case the respondent fails to appear  on  that
date, no further notice would  be  sent  to  him  of  the  proceedings.  The
respondent, despite service of notice, remained absent even  on  18.01.1996.
The Committee then concluded  its  proceedings  on  the  basis  of  material
produced before it by the Management and submitted  its  16-page  report  on
29.02.1996 (Annexure-P-4), concluding therein that all the  charges  leveled
against the respondent in 3 charge sheets stood proved.
12)   On 11.03.1996, the report of the Committee was placed before  the  BOG
in their 68th meeting as Agenda Nos. 6  and  24  to  decide  further  action
keeping in view the findings of the Committee. The BOG, after  perusing  the
report, accepted all the findings of the Committee and accordingly  resolved
to impose  punishment  on  the  respondent.  The  BOG  also  authorized  the
Principal & Secretary to prepare the show cause notice  and  take  necessary
action as the Chairman/Board advises (Annexure-P-5) and do  the  needful  in
the matter.
13)   Accordingly, a show  cause  notice  was  sent  to  the  respondent  on
07.06.96 (Annexure-P-6) by registered  post  along  with  the  copy  of  the
Inquiry  report  dated  29.02.1996  proposing  therein  the  punishment   of
dismissal of the respondent from the service.  Even  after  receipt  of  the
show cause notice, the respondent did not file any reply.  The  Principal  &
Secretary accordingly informed the Chairman by his letter  dated  01.07.1996
(Annexure-P-7) about non-submission of any reply  by  the  respondent.   The
Principal & Secretary by his order dated 16.08.1996(Annexure-P-8)  dismissed
the respondent from the services of REC.
14)   The matter was then placed before the BOG in their 69th  meeting  held
on 22.08.1996 as Item No. 2 for appropriate orders, if any, in  relation  to
the  respondent's services. The BOG, in express  terms,  after  deliberating
the matter approved the minutes of earlier meeting and also approved of  the
action taken against  the  respondent  by  the  Principal  &  Secretary  and
accordingly noted its compliance made in that behalf.
15)   It is with these  aforementioned  facts,  which  are  undisputed,  the
respondent, felt aggrieved by the dismissal order  dated  16.08.1996,  filed
writ petition before the High Court. The challenge  to  dismissal  order  in
the  writ  petition  was  essentially  on  one  ground,  namely,  that   the
authority, which passed the dismissal order, had no power to pass and  hence
it was illegal and thus liable to be set aside. It was  contended  that  the
power to pass the dismissal order, as per the Rules,  vests  with  the   BOG
and hence only the BOG could pass such order. It was pointed out that  since
the dismissal order was passed by the Principal  &  Secretary,  who  had  no
authority to pass such order under the Rules, hence dismissal order was  bad
in law. It was also contended that even assuming that the BOG had  delegated
their powers  in  favour  of  Principal  &  Secretary  to  take  appropriate
disciplinary action against the  respondent  as  their  delegate,  yet  mere
reading of the resolutions passed by the BOG in  this  behalf  would  go  to
show that no such power was conferred or/and delegated to  the  Principal  &
Secretary so as to empower him to pass dismissal order of the respondent.
16)   The appellant (as respondent in the writ petition) while opposing  the
writ petition defended their action, which had  culminated  in  respondent's
dismissal from service and contended that it was passed as  per  the  Rules.
According to the  appellant,  the  entire  action  proposed,  initiated  and
eventually taken against the respondent  which  resulted  in  his  dismissal
from service was taken by the BOG and later approved by  the  BOG  in  their
meetings held on various dates and hence it was wrong on  the  part  of  the
respondent to contend that the dismissal order was not  passed  by  the  BOG
but was passed by the Principal & Secretary. It was  pointed  out  that  the
Principal & Secretary was also authorized by the BOG to  initiate  and  take
disciplinary  action  against  the  respondent  in  consultation  with   the
Chairman,  BOG and do the needful, which  he  did  pursuant  to  such  power
delegated to him, and later also  sought its approval from the BOG.  It  was
lastly  contended  that  when  the  BOG,  in  their  last  meeting  held  on
22.08.1996 approved the entire action including  passing  of  the  dismissal
order then all previous actions taken by the  Principal  &  Secretary  stood
ratified by the BOG from the date they were taken and thus became legal  and
proper. The appellant also  defended  the  entire  departmental  proceedings
initiated  against  the  respondent   contending   that   the   departmental
proceedings were held in accordance with law by following  proper  procedure
prescribed in the Rules and giving full opportunity  to  the  respondent  to
defend and hence no flaw can be noticed in the proceedings.
17)   As  mentioned  above,  the  writ  court  (single  judge)  allowed  the
respondent's  writ  petition  and  set  aside  the  dismissal  order   dated
16.08.1996 on the short ground that since the competent  authority  did  not
pass the dismissal order prescribed in the Rules, i.e., the BOG, whereas  it
was passed by the Principal & Secretary who had no authority  to  pass  such
dismissal order under the Rules and hence it was  liable  to  be  set  aside
being  against  the  rules.  The  writ  court  accordingly  set  aside   the
dismissal order dated 16.08.1996  with  a  direction  to  the  appellant  to
reinstate the respondent in their services by giving him  all  consequential
benefits.
18)   Aggrieved by the said order, the appellant filed intra  court  appeal.
By impugned order, the Division Bench concurred with the view taken  by  the
Single Judge (writ court) dismissed  the  appellant's  appeal.  Challenging,
the said order, the appellant filed this appeal  by  way  of  special  leave
before this Court.
19)   Heard Mr. Manoj Goel, learned  counsel  for  the  appellants  and  Mr.
Anshuman Sinha, learned counsel for contesting respondent No. 1.
20)   Mr Manoj Goel, learned  Counsel  appearing  for  the  appellant  while
assailing the legality and correctness of the view taken by the  writ  court
and appellate court contended that both the courts below erred  in  allowing
the respondent's writ  petition  and  quashing  the  dismissal  order  dated
16.08.1996.
21)   In the first place, learned counsel for the appellant  contended  that
no fault could be noticed in  the  entire  departmental  proceedings,  which
eventually resulted in respondent's ouster from the services because it  was
conducted strictly in accordance with the Rules prescribed.
22)   In  the  second  place,  his  contention  was  that  the  Principal  &
Secretary  was  duly  authorized  by  the  BOG  to   initiate   departmental
proceedings  and  to  take  appropriate  action  in  consultation  with  the
Chairman of the BOG against the respondent. In support  of  his  contention,
learned counsel placed reliance on various Resolutions  passed  by  the  BOG
from  time  to  time  and,  in  particular,  Resolutions  dated  07.12.1994,
08.06.1995, 11.03.1996, and 22.08.1996.
23)   In the third place, he contended that the BOG was involved in all  the
deliberations at every stage of the departmental  proceedings  as  would  be
clear from the minutes of meetings of the BOG and hence it can not  be  said
that the BOG did  not  take  any  decision  or  it  was  not  aware  of  the
proceedings or did not approve of the action taken  against  the  respondent
by the Principal & Secretary.
24)   In the fourth place, it  was  contended  that  the  entire  action  in
question having been approved or/and ratified  by  the  BOG  in  their  last
meeting held on 22.08.1996, whatever so-called defects even  if  existed  in
the departmental proceedings including passing of  the  dismissal  order  on
16.08.1996, the same stood ratified by the BOG  in  their  meeting  held  on
22.08.1996 and hence no fault can be noticed in the proceedings.
25)   In contra, learned counsel for the respondent supported the  reasoning
and the conclusion arrived at by the two Courts below and contended that  no
case is made out to interfere in the impugned order.  Learned  counsel  then
elaborated his submissions in support of the reasons  rendered  by  the  two
Courts.
26)   Having heard the learned counsel for the parties  and  on  perusal  of
the record of the case, we find force in all the contentions  urged  by  the
learned counsel for the  appellant.  This  we  say  so  for  the   following
reasons:
27)   At the threshold, it  is  noticed  that  in  the  writ  petition,  the
respondent had taken several grounds to challenge  the  dismissal  order  on
merits. However, a perusal of order of  the writ court would show  that  the
writ petitioner did not press any of the grounds. The only ground, which  he
pressed, while prosecuting  the  writ  petition,   was  that  the  order  of
dismissal was passed by the Principal & Secretary of the  NIT,  who  had  no
authority  to  pass  such  order.  Since  the  authority,  to  dismiss   the
respondent vested in the BOG of the  NIT  under  the  Rules  and  hence  the
dismissal order was bad in law. In view of the fact that the respondent  did
not press any of the grounds before the High Court except the one  mentioned
above we need not go into any of the ground. The only issue the  High  Court
was called upon to decide was whether the removal  of  the  respondent  from
service was by the competent authority?
28)   The High Court, as mentioned above, allowed the writ petition  holding
that the impugned order of dismissal dated 16.08.1996 was, in  fact.  passed
by the Principal & Secretary, who had no authority to pass such order  under
the Rules.  It was held that the competent authority to pass  the  dismissal
order under the Rules was the BOG. The High Court accordingly set aside  the
order of dismissal with a  direction  to  grant  all  consequential  service
benefits to the respondent. In appeal filed by the appellant,  the  Division
Bench concurred with the view taken by  the  Single  Judge  and  accordingly
dismissed the appellant's appeal, giving rise to filing of  this  appeal  by
the appellant (Management).
29)   Before we proceed to appreciate the submissions,  it  is  apposite  to
reproduce the relevant extracts of the meetings of the BOG, to  show  as  to
how the issue of the respondent was dealt with by the BOG:
                                     (1)
                  Minutes of the Meeting held on 07.12.1994
“Item-7(a): To receive a note of recent financial stalemate created by  Shri
Pannalal Choudhury, Registrar who was also  holding  the  charge  of  Deputy
Registrar (Accounts) and suggest remedial measures to avoid  such  situation
in future:

      The Board approved the action taken by the Principal &  Secretary,  on
the advice of the Hon’ble Chairman, BOG, regarding  financial  stalemate  as
ex-post facto.
       Further,  while  discussing  various  charges   of   insubordination,
dereliction  of  duty,  suppression  of  facts  etc.  brought  against   and
accordingly charge-sheets served to Shri Pannalal Choudhury,  Registrar  who
was  also  holding  the  charge  of  Deputy  Registrar  (Accounts),  by  the
Principal & Secretary, the Board of  Governors  took  the  matter  with  all
seriousness and directed the Principal & Secretary to take  necessary  legal
advice for further disciplinary actions in  consultation  with  the  Hon’ble
Chairman, BOG, REC Silchar.”

“Item-8: To consider rectification of irregularities observed by A.G.  Audit
in the accounts of Regional Engg. College, Silchar.

      The Board scrutinized various financial irregularities highlighted  by
A.G. Audit and also by the Principal & Secretary, BOG, and  took  the  whole
matter very seriously and directed the Principal & Secretary to  take  legal
advice and draw disciplinary proceedings against  Shri  Pannalal  Choudhury,
Registrar who was also holding the charge of Deputy Registrar (Accounts).

The Board further directed the Principal &  Secretary,  BOG,  to  take  next
disciplinary step in consultation with the Hon’ble Chairman, BOG.”

                                     (2)
                  Minutes of the Meeting held on 08.06.1995
Item 6:     To decide on the  case  of  Sri  Pannalal  Choudhury,  Registrar
(under suspension).
Sri Pannalal Choudhury, Registrar was put under suspension on 17.02.1995  by
the Secretary, Board of Governors obtaining necessary legal advice  as  well
as the written directive by the Hon’ble Chairman, Board of Governors.
The Hon’ble Board in its 66th meeting vide Item No. 7(a)  discussed  various
administrative charges of insubordination dereliction of  duty,  suppression
of  facts  etc.  and  accordingly  the  chargesheets  were  served  to   Sri
Choudhury.  The Board then directed the  Principal  and  Secretary  to  take
necessary legal advice for  further  disciplinary  actions  in  consultation
with the Hon’ble Chairman, Board of Governors.  And the Board  in  the  same
meeting vide item No. 8 also scrutinized  various  financial  irregularities
highlighted by the A.G. Audit and also by the Principal and Secretary.   The
Board took the whole matter very seriously and  directed  the  Secretary  to
take further legal advice and  draw  disciplinary  proceedings  against  Sri
Choudhury.
The Principal and Secretary accordingly  took  all  necessary  legal  advice
both from the High Court and the District Court Advocates duly appointed  by
the College and a Board of Inquiry was constituted on May 6, 1995  with  the
following Members for the purpose of Departmental proceedings:-
1.  Presiding Officer :     Dr. S.K. Das
2.  Members    : i) Dr. R. Gupta
                            ii) Prof. A.I. Laskar
3. Presenting Officer : Sri Sudipta Kr. Bhattacharjee

[However, at present a new Presenting Officer Sri F.A.  Talukdar,  Lecturer,
Deptt.  Of  Electrical  Engg.  has  been  appointed  as  Sri   Sudipta   Kr.
Bhattacharjee has informed his inability to continue as  Presenting  Officer
as he has applied for leave on medical ground.]
The Board of Inquiry has already completed its assigned job and  the  report
of the Board will be placed on the table  for  detailed  discussion  by  the
Hon’ble  Members  of  the  Board  of  Governors  and  for  necessary  action
thereafter.”

                                     (3)
                    Minutes of Meeting held on 11.03.1996
“Item-6:    To decide on the  case  of  Shri  Pannalal  Choudhury  Registrar
(under suspension).

      The report of the Board of inquiry was placed  before  the  Board  and
after  a  detailed  discussion,  the  board  authorized  the  Principal  and
Secretary to prepare a draft show cause notice on behalf of the Board to  be
served  to  Shri  Pannalal  Choudhury,  Registrar  (under  suspension)   for
imposing the punishment and to send a copy of the same to  the  Ministry  of
Human Resource Development, New Delhi with a request  to  communicate  their
comments, if any, within 21 days. The board also authorized the Principal  &
Secretary to submit the draft show cause notice after expiry  of  the  above
period of the Ministry of Human Resource Development and after taking  legal
advice to the Chairman, Board of Governors for serving the said  show  cause
notice by the Board to Sri Pannalal Choudhury, Registrar (under  suspension)
and to take necessary action as the Chairman/Board advices.”

      “Item-24:   To decide on the misappropriation of college money by  sri
Pannalal Choudhury in his capacity as Deputy Registrar (Accounts).
      The Board discussed this item in  relation  to  the  item  No.  6  and
authorized the Principal Secretary to do the needful accordingly.”

                                     (4)
                    Minutes of Meeting held on 22.08.1996
“Item-2: To receive a note on the actions taken and  progress  made  on  the
resolutions of the last meeting.
      Under item-6B68/96:
      In pursuance of the resolution and  direction  of  the  Board  actions
were taken and dismissal order had been issued to  Sri  Pannalal  Choudhury,
Registrar (under suspension) on 16.8.1996 and his name had been  struck  off
from the strength of the Regional Engineering College, Silchar Society.  The
Board noted the compliance of the action taken.

      The Board also noted the actions taken against item Nos.7, 8, 10,  15,
24 and 25 and approved the same.”

30)   Reading of the aforementioned four Resolutions passed by  the  BOG  in
juxtaposition in no uncertain terms show that the BOG monitored, dealt  with
and eventually decided the case of the respondent in their various  meetings
since inception and also authorized the Principal & Secretary to  deal  with
the same in consultation with the Chairman of Board of Governors and  to  do
the needful by passing appropriate orders. It is  also  clear  that  in  the
last meeting held on 22.08.1996, the BOG approved the Resolution  passed  in
the earlier 68th meeting held on 11.03.1996, which had dealt with  the  case
of respondent at Item Nos. 6 and 24.
31)   In our considered view,  the  expression   “authorization”   and   “to
take necessary action as the Chairman advises”  in Item No.  6  and  lastly,
the expression  “to do the needful accordingly”   in  Item  No.  24  in  the
Resolution dated 11.03.1996 were wide  enough  to  clothe  the  Principal  &
Secretary with a power to pass the dismissal order, if occasion so arises.
32)   As rightly argued by  the  learned  counsel  for  the  appellant,  the
Resolutions authorizing  the  Principal  &  Secretary  to  pass  appropriate
orders rightly, did not use the  expression   “to  dismiss  the  respondent”
because  at  that  point  of  time,  the   departmental   inquiry   was   in
contemplation against the respondent. It was, therefore, not known  at  that
time as to what  would  be  the  outcome  of  departmental  proceedings  and
secondly use of such expression  in  the  Resolution  before  the  start  of
departmental inquiry could have  been  construed  as  prejudging  the  issue
against the respondent thereby indicating existence of bias attitude of  the
Members of the Board of Governors towards the respondent and lastly as  said
above,  the  three  expressions  used  in  the  Resolution  did  clothe  the
Principal & Secretary with  the  power  to  pass  appropriate  orders  which
included the order imposing punishment of dismissal as   prescribed  in  the
Rules,  against  the  respondent  depending  upon   the   outcome   of   the
departmental inquiry and subject to grant of  final  approval  by  the  BOG.
Indeed the expression  “and to take necessary action as  the  Chairman/Board
advises”  and "to do the needful"  used in  the  Resolution  were  very  apt
words rightly used in the resolutions for taking intended action  which  was
in contemplation, against the respondent.
33)   In the light of aforesaid discussion and keeping in mind the  contents
of the Resolutions, it is difficult to agree with  the  view  taken  by  the
High Court that the BOG did not pass the dismissal order but it  was  passed
by the Principal & Secretary.  In other words, keeping in view the  contents
of the four Resolutions, we have no hesitation to hold  that  the  dismissal
order dated 16.08.1996 was passed by the BOG and the Principal  &  Secretary
only signed the order for and on behalf  of  the  BOG  on  the  strength  of
authorization  made  in  his  favour  by  the  BOG  vide  Resolution   dated
11.03.1996.
34)   That apart, the issue in question could be examined from  yet  another
angle by applying the law relating to "Ratification"  which  was  not  taken
note of by the High Court.
35)   The expression “Ratification”  means  “the  making  valid  of  an  act
already done”. This principle is derived from the Latin  maxim  “ratihabitio
mandato aequiparatur” meaning thereby “a subsequent ratification of  an  act
is equivalent to a prior authority to perform such  act.”  It  is  for  this
reason; the ratification assumes an invalid act,  which  is  retrospectively
validated.
36)   The expression “ratification”  was succinctly defined by  the  English
Court in one old case, Hartman Vs. Hornsby reported in  142  Mo  368  44  SW
242, 244 as under:
 “ ‘Ratification’ is the approval by act, word, or conduct,  of  that  which
was  attempted  (of   accomplishment),   but   which   was   improperly   or
unauthorisedly performed in the first instance.”

37)   The law of ratification was  applied  by  this  Court  in  Parmeshwari
Prasad Gupta Vs. U.O.I (1973) 2 SCC 543. In that case, the Chairman  of  the
Board of Directors had terminated the services of the General Manager  of  a
Company pursuant to a resolution taken by the Board at  a  meeting.  It  was
not in dispute that the meeting had been improperly  held  and  consequently
the resolution passed in  the  said  meeting  terminating  the  services  of
General Manager was invalid. However, the Board of Directors  then  convened
subsequent meeting and in this  meeting  affirmed  the  earlier  resolution,
which had been passed in improper meeting. On these facts, the Court held,

 “Even if it be assumed that the telegram and  the  letter  terminating  the
services of the appellant by the Chairman was in pursuance  of  the  invalid
resolution of the Board of Directors passed on 16-12-1953 to  terminate  his
services, it would not follow that the action of the Chairman could  not  be
ratified in a regularly convened meeting of  the  Board  of  Directors.  The
point is that even assuming that the Chairman was not legally authorised  to
terminate the services of the appellant, he was  acting  on  behalf  of  the
Company in doing so, because, he  purported  to  act  in  pursuance  of  the
invalid resolution. Therefore,  it  was  open  to  a  regularly  constituted
meeting of the Board of  Directors  to  ratify  that  action  which,  though
unauthorised, was done on behalf of the Company. Ratification  would  always
relate back to the date of the act ratified and so it must be held that  the
services of the appellant were validly terminated on 17-12-1953.”

38)   This view was approved by this Court in High Court of  Judicature  for
Rajasthan Vs. P.P. Singh & Anr.  (2003) 4 SCC 239.
39)   The aforesaid principle of law of ratification was  again  applied  by
this Court in Maharashtra State Mining Corpn. Vs. Sunil (2006) 5 SCC 96.  In
this case, the respondent was an  employee  of  the  appellant  Corporation.
Consequent to a departmental enquiry,  he  was  dismissed  by  the  Managing
Director of the appellant.   The  respondent  then  filed  a  writ  petition
before the High Court.  During the pendency of the writ petition, the  Board
of Directors of the appellant Corporation passed a resolution ratifying  the
impugned action of the Managing Director and also  empowering  him  to  take
decision in respect of the officers and  staff  in  the  grade  of  pay  the
maximum of which did  not  exceed  Rs.  4700  p.m.   Earlier,  the  Managing
Director had powers only in respect of those posts  where  the  maximum  pay
did not exceed Rs.1900  p.m.   The  respondent  at  the  relevant  time  was
drawing more  than  Rs.1800  p.m.  Therefore,  at  the  relevant  time,  the
Managing Director was incompetent to dismiss the  respondent.   Accordingly,
the High Court held the order of dismissal to be invalid.   The  High  Court
further held that the said defect could not  be  rectified  subsequently  by
the resolution of the Board of Directors.  The  High  Court  set  aside  the
dismissal order and granted consequential relief.  The appellant then  filed
the appeal in this Court by special leave.  Justice Ruma Pal,  speaking  for
three- Judge Bench, while allowing the  appeal  and  setting  aside  of  the
Court held as under :
      “The High Court rightly held that an  act  by  a  legally  incompetent
authority is invalid.  But it was entirely wrong in  holding  that  such  an
invalid act could not be subsequently “rectified”  by  ratification  of  the
competent authority.  Ratification by definition means the making  valid  of
an act already  done.   The  principle  is  derived  from  the  Latin  maxim
ratihabitio mandato aequiparatur, namely, “a subsequent ratification  of  an
act is equivalent to a prior authority to  perform  such  act.”   Therefore,
ratification assumes an invalid act which is retrospectively validated.”

“In  the  present  case,  the  Managing  Director’s  order  dismissing   the
respondent from service was admittedly ratified by the  Board  of  Directors
unquestionably had the power to terminate the services  of  the  respondent.
Since the order of the Managing Director had been ratified by the  Board  of
Directors such ratification related back  to  the  date  of  the  order  and
validated it.”

40)   Applying the aforementioned law of ratification to the facts at  hand,
even if we assume for the sake of  argument  that  the  order  of  dismissal
dated 16.08.1996 was passed by the Principal &  Secretary  who  had  neither
any authority to  pass  such  order  under  the  Rules  nor  there  was  any
authorization given by the BOG in his favour to pass such order yet  in  our
considered view when the BOG in their meeting held  on  22.08.1996  approved
the  previous  actions  of  the  Principal  &  Secretary  in   passing   the
respondent's  dismissal  order  dated  16.08.1996,  all  the  irregularities
complained of by the respondent in the proceedings including  the  authority
exercised by the Principal & Secretary to dismiss him stood ratified by  the
Competent Authority (Board  of  Governors)  themselves   with  retrospective
effect from 16.8.1996  thereby  making  an  invalid  act  a  lawful  one  in
conformity with the procedure prescribed in Rules.
41)   In such circumstances, the respondent's grievance that  the  dismissal
order had not been passed by the competent authority, i.e., the  BOG  is  no
longer survived.
42)   In the light of foregoing discussion, we differ with  the  view  taken
by the High Court and  accordingly  hold  that  the  dismissal  order  dated
16.08.1996 was passed  by  the  Competent  Authority,  namely,  the  BOG  as
prescribed  in  the  Rules  and  hence  it  was  legal  and  proper.  It  is
accordingly upheld.
43)    As  already  mentioned  above,  no  other  point  was  urged  by  the
respondent in the writ petition and  also  in  intra  court  appeal  of  the
appellant by filing cross objection therein for assailing the  legality  and
correctness of the dismissal order on other grounds except the one which  we
have decided.  It  is,  therefore,  not  necessary  to  go  into  any  other
question.

44)   In view of foregoing discussion, the appeal  succeeds  and  is  hereby
allowed. The impugned order  is  set  aside.  As  a  consequence,  the  writ
petition filed by the respondent stands dismissed. No costs.

                       …….….……............................J.
                            [VIKRAMAJIT SEN]



               …………..................................J.
                            [ABHAY MANOHAR SAPRE]


      New Delhi;
      July 01, 2015.


ITEM NO.1C               COURT NO.12               SECTION XIV
(For judgment)
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

                       Civil Appeal  No(s).  5070/2008

NATIONAL INSTITUTE OF TECHNOLOGY & ANR.            Appellant(s)

                                VERSUS

PANNALAL CHOUDHURY & ANR.                          Respondent(s)



Date : 01/07/2015      This appeal was called on for pronouncement
                 of judgment today.


For Appellant(s)       Mr. Shuvodeep Roy, AOR


For Respondent(s)      Mr. Renjith. B, AOR

                       M/s Corporate Law Group, Advs.


      Hon'ble Mr. Justice Abhay  Manohar  Sapre  pronounced  the  reportable
judgment of the Bench comprising Hon'ble Mr. Justice Vikramajit Sen and  His
Lordship.
      The appeal succeeds and is hereby  allowed  in  terms  of  the  signed
reportable judgment.


      (R.NATARAJAN)                                 (SNEH LATA SHARMA)
       Court Master                                    Court Master
            (Signed reportable judgment is placed on the file)



In the contempt petition, the respondent has, inter alia averred that the appellants have deliberately and v willfullyiolated the ex parte interim order dated 06.08.2013 passed by the Single Judge under Order XXXIX Rules 1 and 2 of the Code in the aforementioned Notice of Motion and thereby rendered themselves liable for having committed contempt of Court's order dated 06.08.2013. It is, therefore, prayed that the appellants be accordingly punished under the Contempt of Court Act for commission of violation of order dated 06.08.2013. The respondent in the aforementioned pending civil suit filed notice of motion being Notice of Motion (L) No. 1553 of 2013 (renumbered as 488 of 2014) against the appellants herein under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure 1908 (in short “the Code”) and sought ad- interim relief in terms of prayers (a), (b) and (d) as extracted above during the pendency of the Suit. 7) By interim order dated 06.08.2013, the Single Judge granted ex parte ad-interim relief in terms of prayer (a) to the respondent. = In the meantime, the respondent, felt aggrieved by certain communication alleged to have been made by or/and on behalf of the appellants, which according to the respondent were made by the appellant in violation of the ex parte interim order dated 06.08.2013, filed contempt petition under Section 12 of the Contempt of Courts Act, 1971 against the appellants being Contempt Petition No. 105/2013 (renumbered as 29/2014) in the High Court.= During the pendency of this contempt petition, the respondent herein filed one additional affidavit on 31.10.2014 in the contempt petition complaining therein that the appellants have again committed fresh contempt by willfully violating/disobeying the ex parte interim order dated 06.08.2013 and hence another notice of contempt be issued against the appellants to show cause as to why they be not punished for having committed fresh contempt of order dated 06.08.2013. = In our considered view, when admittedly the order dated 06.08.2013 was an ex parte one then in such circumstances, no sooner the defendants (appellants) entered appearance in the civil suit and filed their pleadings in reply to the Notice of Motion, the Court which is seized of the main case should have made sincere endeavour to dispose of the Notice of Motion on merits in the light of the mandate contained in Order XXXIX Rule 3A of the Code which in clear terms provides that the Court shall make an endeavor to finally dispose of the application within 30 days from the date on which the ex parte injunction was granted. 19) It was not done by the Court may be due to myriad reasons despite the appellants (defendants) entering appearance as back as 21.08.2013 in the main suit and completing their pleadings on 05.09.2013. As a result, the ex parte ad-interim order dated 06.08.2013 remains in operation. 20) In our view, once the Notice of Motion is finally decided on merits in accordance with law one way or the other then the parties to the Lis can always work out their rights by taking recourse to legal remedies available to them for pursuing their grievance to higher fora either in appeal or revision, as the case may be, and may also prosecute the contempt proceedings arising out of the main case, if need arises.

                                                                  Reportable
                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELALTE JURISDICTION

                      CIVIL APPEAL Nos. 4914-15 OF 2015
                  (ARISING OUT OF SLP(C) Nos.603-604/2015)

      Quantum Securities Pvt. Ltd.
& Others                                          Appellant(s)


                            VERSUS


New Delhi Television Ltd.                    Respondent(s)


                               J U D G M E N T

Abhay Manohar Sapre, J.
1)    Leave granted
2)    These appeals are filed against the  Interim  Order  dated  26.02.2014
passed by the High Court of Judicature at Bombay in  Contempt  Petition  (L)
No. 105 of 2013 in Notice of Motion (L) No. 1553 of 2013  in  Suit  (L)  No.
677 of 2013 and Interim Order dated 31.10.2014 in Contempt Petition  No.  29
of 2014 in Notice of Motion No. 488 of 2014 in Suit No. 284 of 2014.

3)    The facts of the case, which lie in a narrow  compass,  however,  need
mention in brief to appreciate the issue involved in these appeals.
4)    The appellants are  the  defendants  whereas  the  respondent  is  the
plaintiff.
5)    The respondent (plaintiff) has filed one suit  being  Civil  Suit  (L)
No. 677 of  2013  (renumbered  as  Civil  Suit  No.  284/2014)  against  the
appellants (defendants) in the High Court of Bombay  on  its  original  side
for claiming the following reliefs:
“a. that the Defendants and each  of  them  (by  themselves  and  by/through
their  servants,  employees,   affiliates,   associates   and   agents)   be
permanently restrained/injuncted by an order of this Hon’ble Court, from  in
any manner writing to third parties, letters that are defamatory  in  nature
against the Plaintiff, its management and/or its promoters;

b. that the Defendants be directed to issue  an                unconditional
public corrigendum, withdrawing the letters and e-mails  written  by  it  to
third  parties.  Independent  Directors  and  Regulatory  Authorities,   and
apologizing for the defamatory actions on its part;

c. that the Defendants jointly and  severally  be  decreed  to  pay  to  the
Plaintiff damages of Rs. 25 Crores, as set out at Exhibit A herein, or  such
other amount as this Hon’ble Court seems just and appropriate;

d. that pending the hearing and final disposal of the Suit,  the  Defendants
and each of them (by themselves and by/through  their  servants,  employees,
affiliates, associates and agents) be restrained, by  order  and  injunction
of this Hon’ble Court, from in any manner  further  issuing  any  defamatory
letters, notices, emails, etc., in  connection  with  and/or  pertaining  to
and/or relating to the Plaintiff, its senior officials and promoters;

e. interim, ad-interim and ex-parte ad-interim reliefs in  terms  of  prayer
(a) (b) and (d) above,

for costs;

g.  for  such  further  and  other  reliefs  as  this  Hon’ble  Court  deems
appropriate in the nature and circumstances of the case.”

6)    The respondent in the aforementioned pending civil suit  filed  notice
of motion being Notice of Motion (L) No. 1553 of 2013  (renumbered  as   488
of 2014) against the appellants herein under Order XXXIX Rules 1  and  2  of
the Code of Civil Procedure 1908  (in  short  “the  Code”)  and  sought  ad-
interim relief in terms of prayers (a),  (b)  and  (d)  as  extracted  above
during the pendency of the Suit.
7)    By interim order dated 06.08.2013, the Single Judge granted  ex  parte
ad-interim relief in terms of prayer (a) to the respondent.  The  appellants
herein on receiving the summons filed their detailed reply to the Notice  of
Motion on 21.08.2013 denying inter alia all the  material  allegations  made
by the respondent.  The  respondent,  in  turn,  filed  their  rejoinder  on
06.09.2013 to the reply filed by the appellants to the notice of motion.
8)    In this way, the pleadings in Notice of Motion No. 488/2013 taken  out
by the respondent against the appellants are complete. However,  we  are  at
pains to find out  that till date, the hearing in the Notice of  Motion  has
not been concluded and since the last two years it is pending for its  final
disposal on merits.
9)     In  the  meantime,  the  respondent,  felt   aggrieved   by   certain
communication alleged  to  have  been  made  by  or/and  on  behalf  of  the
appellants, which according to the respondent were made by the appellant  in
violation of the ex parte interim order dated 06.08.2013,    filed  contempt
petition under Section 12 of the Contempt of Courts Act,  1971  against  the
appellants being Contempt Petition No. 105/2013 (renumbered as  29/2014)  in
the High Court.
10)   In the contempt petition, the respondent has, inter alia averred  that
the appellants  have  deliberately  and  willfully  violated  the  ex  parte
interim order dated 06.08.2013 passed by the Single Judge under Order  XXXIX
Rules 1 and 2 of the  Code  in  the  aforementioned  Notice  of  Motion  and
thereby rendered themselves liable for having committed contempt of  Court's
order dated  06.08.2013. It is, therefore, prayed  that  the  appellants  be
accordingly punished under the Contempt  of  Court  Act  for  commission  of
violation of order dated 06.08.2013.
11)   The Single Judge, on hearing the respondent, entertained the  contempt
petition and by  order  dated  26.02.2014,  observed  that  on  reading  the
averments made in the contempt petition, a prima facie case for issuance  of
contempt notice is made out against the appellants and hence rule be  issued
against them in the contempt notice making it returnable on 26.03.2014.   It
was also observed that these proceedings would not come in the  way  of  the
appellants to prosecute any pending proceedings. The appellants  have  filed
their reply affidavit to the contempt petition on 24.03.2014.  The  contempt
petition is pending.
12)   During the pendency of this contempt petition, the  respondent  herein
filed one additional  affidavit  on  31.10.2014  in  the  contempt  petition
complaining therein that the appellants have again committed fresh  contempt
by  willfully  violating/disobeying  the  ex  parte  interim   order   dated
06.08.2013 and hence another  notice  of  contempt  be  issued  against  the
appellants to show  cause  as  to  why  they  be  not  punished  for  having
committed fresh contempt of order dated 06.08.2013.


13)   The Single Judge, on perusal of the additional affidavit filed by  the
respondent  herein  on  31.10.2014,  directed  issuance  of  notice  to  the
appellants to show cause as to  why  action  under  the  provisions  of  the
Contempt  of  Court  Act  be  not  initiated  against  them  for  committing
violation of orders dated  06.08.2013 and 26.02.2014. The notices were  made
returnable on 08.12.2014. The Single Judge also issued an order  restraining
the  appellants  from  issuing  any  defamatory  letter,   notice,   e-mail,
advertisement  and  publication  of  any  nature  in  connection  with   the
respondent herein. This matter is also pending.
14)   Felt aggrieved by these  two  interim  orders,  i.e.,  26.02.2014  and
31.10.2014, the appellants have filed these appeals by way of special  leave
before this Court.
15)   We  have  heard  Mr.  P.V.  Kapur,  learned  senior  counsel  for  the
appellants  and  Mr.  C.A.  Sundaram,   learned  senior  counsel   for   the
respondent at considerable length. Both  the  learned  senior  counsel  very
ably argued the myriad legal issues arising in the case  some  seemingly  of
public importance  in  support  of  their  respective  submissions.  Learned
senior  counsel  for  the  appellants  also  in   his   submission   doubted
correctness of the decision of this Court in Welset  Engineers  &  Anr.  Vs.
Vikas Auto Industries & Ors., 2006 (32) PTC 190(SC), which was relied on  by
the learned  senior  counsel  for  the  respondent  against  the  appellants
contending for dismissal of these appeals. According to learned counsel  for
the appellants, the said decision is per incuriam and thus  requires  to  be
reconsidered on the issue decided therein.
16)   Having heard the learned counsel for the parties  and  on  perusal  of
the record of the case, we consider it appropriate and in  the  interest  of
both the parties to defer  our  recording  of  findings  on  several  issues
arising in the case and more so legal  issues  on  which  lengthy  arguments
were addressed and request the learned Single Judge of the High  Court,  who
is seized of Civil Suit No. 677/2013 renumbered as 284/2014  and  of  Notice
of Motion No.1553/2013 renumbered as 488/2014, to first take  up  Notice  of
Motion No.  1553/2013  renumbered  as   488/2014  filed  by  the  respondent
(plaintiff) under Order XXXIX Rules 1 and 2 of the Code and dispose  of  the
same, after  affording  an  opportunity  to  both  the  parties,  on  merits
strictly in accordance with law. Since  pleadings  in  the  said  Notice  of
Motion are complete long back, there does not appear any kind  of  prejudice
being caused to any of  the  parties,  if  direction  is  issued  for  early
disposal of the notice of motion on its merits.
17)   In our considered opinion, there is no justification on  the  part  of
parties (without blaming any one) to keep the main Notice of Motion  pending
and prosecute its off-shoot proceedings in preference to the main case  such
as the one out of which these appeals arise.
18)   In our considered view, when admittedly  the  order  dated  06.08.2013
was an ex parte one then in such circumstances,  no  sooner  the  defendants
(appellants) entered appearance in the civil suit and filed their  pleadings
in reply to the Notice of Motion, the Court which  is  seized  of  the  main
case should have made sincere endeavour to  dispose of the Notice of  Motion
on merits in the light of the mandate contained in Order XXXIX  Rule  3A  of
the Code which in  clear  terms  provides  that  the  Court  shall  make  an
endeavor to finally dispose of the application within 30 days from the  date
on which the ex parte injunction was granted.
19)   It was not done by the Court may be due to myriad reasons despite  the
appellants (defendants) entering appearance as back  as  21.08.2013  in  the
main suit and completing their pleadings on 05.09.2013. As a result, the  ex
parte ad-interim order dated 06.08.2013 remains in operation.
20)   In our view, once the Notice of Motion is finally  decided  on  merits
in accordance with law one way or the other then the parties to the Lis  can
always work out their rights by taking recourse to legal remedies  available
to them for pursuing their grievance to higher  fora  either  in  appeal  or
revision,  as  the  case  may  be,  and  may  also  prosecute  the  contempt
proceedings arising out of the main case, if need arises.
21)   In our considered opinion, It is always in the larger interest of  the
parties to the Lis to get the main case (Lis) decided first  on  its  merits
as far as possible rather than to  pursue  their  off-shoot  proceedings  on
merits by keeping the main case undecided. It is more so when  any  decision
rendered in  the  main  case  has  a  bearing  over  the  pending  off-shoot
proceedings.
22)   In our view, the defendant in such case has a right to  point  out  in
the Notice of Motion, that the plaintiff has neither any  prima  facie  case
in their favour nor there is any  likelihood  of  plaintiff  to  suffer  any
irreparable loss/injury in relation  to  subject  matter  of  the  suit,  if
injunction is declined to the plaintiff and that no balance  of  convenience
lies in the plaintiff’s favour and, therefore, the  Court  should  not  have
granted ex parte injunction to the plaintiff and  even  if  it  has  granted
then it should now be either recalled or modified, as the case  may  be.  It
is then for the Court to decide as to whether ex  parte  injunction  granted
to the plaintiff should be confirmed or recalled or varied etc.  and  if  so
on what grounds.
23)   We are also of the considered view that  when the issue on  merits  is
seized of by the original court in civil suit/proceedings and rights of  the
parties are still not decided on merits then  it  is  not  proper  for  this
Court to probe into the facts and record any finding on any  of  the  issues
arising out of  collateral  proceedings  such  as  the  one  here  else  our
observation may cause prejudice to the parties while prosecuting their  case
before the original court on merits.
24)   It is for these reasons we are  of  the  considered  opinion  that  it
would be apposite to request the learned Single Judge to  decide  Notice  of
Motion No. 1553/2013 renumbered as 488/2014  arising out of Civil  Suit  No.
677/2013 renumbered as 284/2014 on merits in accordance with law  preferably
within three months from the date of  receipt  of  copy  of  this  judgment.
Till it is decided, we are inclined to stay the contempt proceedings out  of
which these appeals arise.  After the disposal of the Notice of Motion,  the
contempt proceedings may be decided in accordance  with  law  including  its
maintainability etc.
25)   Needless to say, since  we  have  refrained  from  giving  finding  on
merits on any of the issues  and  hence  the  concerned  Courts,  which  are
seized of the civil suit/proceedings in question, would  decide  the  matter
on merits strictly in accordance with law without being  influenced  by  our
observations made herein.
26)   We also make it clear that all the issues which were argued  in  these
appeals including the issue as to whether the remedy of the  appellants  lie
in filing statutory appeal under Section 19 of the Contempt  of  Courts  Act
against the impugned orders etc. are kept open  for  being  decided  at  the
appropriate stage, if occasion arises.
27)   It is for these reasons, we do not consider it  necessary  to  discuss
in detail the submissions urged by both the learned senior  counsel  nor  we
consider it apposite to deal with several case laws cited at the bar.
28)    With  these  observations  and  the  directions,  the  appeals  stand
accordingly disposed of.  No costs.
29)   A copy of the order be filed before learned Single Judge in main  case
as also in contempt proceedings to enable the appropriate Benches to  decide
the cases accordingly.

      …….….……............................J.
                            [VIKRAMAJIT SEN]


               …………..................................J.
                            [ABHAY MANOHAR SAPRE]


      New Delhi;
      July 01, 2015.

ITEM NO.1B               COURT NO.12               SECTION IX
(For judgment)
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

      Civil Appeal Nos. 4914-15 of 2015 @ SLP (C)  No(s).  603-604/2015


QUANTUM SECURITIES PVT LTD AND ORS                 Petitioner(s)

                                VERSUS

NEW DELHI TELEVISION LTD                           Respondent(s)


Date : 01/07/2015      These appeals were called on for pronouncement
            of judgment today.


For Appellant (s)    Mr. Gagan Gupta, AOR


For Respondent(s)      M/s Suresh A. Shroff & Co., Advs.


      Hon'ble Mr. Justice Abhay  Manohar  Sapre  pronounced  the  reportable
judgment of the Bench comprising Hon'ble Mr. Justice Vikramajit Sen and  His
Lordship.
      Leave granted.
      The appeals stand accordingly disposed  of  in  terms  of  the  signed
reportable judgment.


      (R.NATARAJAN)                                 (SNEH LATA SHARMA)
       Court Master                                    Court Master
            (Signed reportable judgment is placed on the file)