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Monday, March 14, 2016

to add a charge= As is evident, an application was filed by the informant to add a charge under Section 406 IPC as there were allegations against the husband about the criminal breach of trust as far as her stridhan is concerned. It was, in a way, bringing to the notice of the learned Magistrate about the defect in framing of the charge. The court could have done it suo motu. In such a situation, we do not find any fault on the part of learned Magistrate in entertaining the said application. It may be stated that the learned Magistrate has referred to the materials and recorded his prima facie satisfaction. There is no error in the said prima facie view.

Reportable



                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

                       CRIMINAL APPEAL NO.131 of 2016
           (@ Special Leave Petition (Criminal) No.  837 of 2016)


Anant Prakash Sinha @ Anant Sinha       …Appellant

                                   Versus

State of Haryana & Anr.                             …Respondents



                               J U D G M E N T


Dipak Misra, J.

      Despite completion of a decade from the date of solemnisation  of  the
marriage and in spite of two off springs in the wedlock,  neither  the  time
nor the expansion of family nor the concern for the  children  could  cement
the bond or weld the affinity between the appellant-husband  and  the  wife,
the 2nd respondent herein, as a consequence of which she  was  compelled  to
set the criminal law in motion by  lodging  FIR  No.  376  dated  23.11.2013
which was registered for the offences punishable under  Section  498A/323/34
of the Indian Penal Code (IPC) against the  husband  and  the  mother-in-law
alleging that the husband was insistent upon getting mutual divorce  and  on
her resistance, he had physically assaulted her and deprived  her  of  basic
facilities of life. All these allegations had the foundation  in  demand  of
dowry and non-meeting of the same by the family members of wife.  After  due
investigation, the prosecuting agency placed the  charge-sheet  against  the
husband alone for the offences punishable under Section  498A  and  323  IPC
before the learned Judicial Magistrate 1st  Class,  Gurgaon  who  eventually
vide  order  dated  04.04.2009  framed  charges  against  the  husband   for
commission of the said offences.
2.    When  the  matter  was  pending  before  the  learned  Magistrate,  an
application dated 31.07.2014 under Section 216   of  the  Code  of  Criminal
Procedure (CrPC) was filed by the informant-wife for framing  an  additional
charge under Section 406 IPC against the husband and  mother-in-law,  Renuka
Sinha. It was stated in the said  application  that  there  was  an  express
complaint with regard to misappropriation of the entire stridhan  and  other
articles and hence, the accused persons had committed breach of  trust,  but
no charge-sheet was filed in respect of the said offence. It  was  contended
that  in  her  statement  recorded  under  Section   161   CrPC,   she   had
categorically stated about misappropriation of the stridhan  by  the  family
members of her husband. The learned Magistrate took note of  the  materials,
namely, stridhan  list,  complaint  addressed  to  D.C.P.  (East),  Gurgaon,
statements recorded under Section 161 CrPC and letter dated 16.11.2013  from
Women Cell, D.C.P. (East), Gurgaon and came to  hold that  in  view  of  the
specific allegations regarding misappropriation of her  entire  stridhan  by
the husband and the other statements recorded during investigation, a  prima
facie case for criminal breach of  trust  was  made  out  and,  accordingly,
allowed the application under Section 216 CrPC against the husband  and  the
mother-in-law. Be it noted, a prayer had been made to  add  the  charge  for
the offence under Section 120B IPC also but the same  was  not  accepted  by
the learned Magistrate.
3.    The order passed by the learned Magistrate  came  to  be  assailed  in
Criminal Revision No. 5 of  2015  before  the  learned  Additional  Sessions
Judge, Gurgaon and it was contended in the revision that  the  mother-in-law
was not charge-sheeted by the police but the trial  court  had  directed  to
frame the  charge  against  her  and,  therefore,  the  whole  approach  was
erroneous.  It was also urged that there was  no  material  to  make  out  a
prima facie case under Section 406 IPC against the husband.  The  stand  put
forth by the revisionist was combatted by the prosecution as well as by  the
informant on the ground that the trial court has power to add or  alter  any
charge under Section 216 CrPC and, therefore, no exception  could  be  taken
to the order passed by the learned Magistrate.  The revisional  court  dwelt
upon the law pertaining to alteration and addition of charges  and  came  to
hold that the framing of the charge against mother-in-law was  unsustainable
but the framing of additional charge  under  Section  406  IPC  against  the
husband, the appellant herein, could not be faulted.  Being  of  this  view,
the revisional court partly allowed the revision petition by  setting  aside
the order of framing of charge against the mother-in-law.
4.    The defensibility of the aforesaid order was  called  in  question  by
the husband by preferring a petition under Section  482  CrPC  in  the  High
Court of Punjab and Haryana forming the subject matter of CRL.M.  No.  24510
of 2015. The soundness of the order was attacked by placing reliance on  the
principles as elucidated in CBI v. Karimullah  Osan  Khan[1]  and  Hasanbhai
Valibhai Qureshi v. State of Gujarat and others[2]. As is demonstrable  from
the impugned order, the learned single Judge appreciating the ratio  of  the
aforesaid decisions  has  opined  that  the  court  can  exercise  power  of
addition or modification of charge under Section 216 CrPC on  the  basis  of
material before the court. The High Court has also observed that  the  trial
court has spelt out the reasons that have necessitated for addition  of  the
charge and hence, the impugned order did not warrant  any  interference.  To
buttress the view, the High Court has drawn support from  the  authority  in
Jasvinder   Saini and others v. State (Government of NCT of Delhi)[3].
5.    We have heard Mr. Amarendra Sharan, learned senior  counsel  appearing
for the appellant and Mr.  Sanjay  Kumar  Visen,  learned  counsel  for  the
respondent-State.
6.    It is  submitted  by  Mr.  Sharan,  learned  senior  counsel  for  the
appellant that the High Court would have been well within the domain of  its
jurisdiction in exercise of power under Section 482 CrPC  in  setting  aside
the orders passed by the courts below,  for  the  Magistrate  has  no  power
under Section 216 CrPC to alter or modify the charge  on  the  basis  of  an
application filed by the informant. It is his further  submission  that  the
trial court could have altered the charge  if  some  evidence  had  come  on
record but not on the basis of the material  that  was  already  on  record.
Additionally, it is urged by Mr. Sharan that  materials  on  record  do  not
remotely attract any of the ingredients of the  offence  under  Section  406
CrPC and, therefore, addition of charge in respect of the  said  offence  is
wholly unsound and faulty. It has also been argued by Mr.  Sharan  that  the
charges could not have been added on the basis of an  application  filed  by
the informant, for such an application as required in law  is  to  be  filed
only by the Public Prosecutor.  In support of the aforesaid submissions,  he
has drawn inspiration from the authorities in Harihar Chakravarty  v.  State
of West Bengal[4], Hasanbhai Valibhai Qureshi (supra), Jasvinder  Saini  and
others (supra), Umesh Kumar v.  State  of  Andhra  Pradesh  and  another[5],
Karimullah Osan Khan (supra) and orders passed by the High Court  of  Punjab
and Haryana in Poonam and anr. V. State of  Punjab[6]  and  Anant  Sinha  v.
State of Haryana and ors.[7].
7.     Mr. Visen, learned counsel for the  respondent-State,  has  supported
the order  passed  by  the  High  Court  and  submitted  that  there  is  no
prohibition under Section 216 CrPC to alter or add a  charge  prior  to  the
recording of evidence if the court is moved for the said purpose and  it  is
satisfied that charge framed by it deserves to be altered or  an  additional
charge is required to be added.  According to him, the order passed  by  the
High Court being totally correct and impenetrable, there  is  no  reason  to
interfere with the same in exercise of jurisdiction  under  Article  136  of
the Constitution of India.  Learned counsel would further contend that  when
the Magistrate  has  jurisdiction  to  rectify  the  mistake  by  adding  or
altering the charge, he can hear the counsel for the parties and do  it  suo
motu and an application either filed by the  Public  Prosecutor  or  by  the
informant is only to bring the said facts to his notice  and  in  any  case,
that would not invalidate the order.
8.    The controversy as raised rests on two aspects. The first aspect  that
has emanated for consideration is whether without   evidence  being  adduced
another charge could be added.  In this context, we may  usefully  refer  to
Section 216 CrPC which reads as follows:-
“216. Court may alter charge.—
(1)   Any court may alter or add to any charge at any time  before  judgment
is pronounced.
(2)    Every such alteration or addition shall be read and explained to  the
accused.
(3)   If the alteration or addition to a  charge  is  such  that  proceeding
immediately with the trial is not likely, in the opinion of  the  court,  to
prejudice the accused in his defence or the prosecutor  in  the  conduct  of
the case, the court  may,  in  its  discretion,  after  such  alteration  or
addition has been made, proceed with the trial as if the  altered  or  added
charge had been the original charge.
(4)   If the alteration or addition  is  such  that  proceeding  immediately
with the trial is likely, in the opinion of  the  court,  to  prejudice  the
accused or the prosecutor as aforesaid, the court may either  direct  a  new
trial or adjourn the trial for such period as may be necessary.
(5)   If the offence stated in the altered or added charge is  one  for  the
prosecution of which previous sanction is necessary, the case shall  not  be
proceeded with until such sanction is obtained,  unless  sanction  has  been
already obtained for a prosecution on the same facts as those on  which  the
altered or added charge is founded.”

9.    The aforesaid provision has been  interpreted  in  Hasanbhai  Valibhai
Qureshi (supra) wherein the Court has observed:-
“Section 228 of the Code in Chapter XVII and  Section  240  in  Chapter  XIX
deal with framing of the charge during trial before a Court of  Session  and
trial of warrant cases by Magistrates respectively.  There  is  a  scope  of
alteration of the charge during trial on the basis of materials  brought  on
record.  Section  216  of  the  Code  appearing  in  Chapter  XVII   clearly
stipulates that any court may alter or add to any charge at any time  before
judgment is pronounced. Whenever such alteration or addition  is  made,  the
same is to be read out and informed to the accused.”


10.    In the said case, reference was made to Kantilal Chandulal  Mehta  v.
State of Maharashtra[8] wherein it has been  ruled  that  Code  gives  ample
power to the courts to alter or amend a charge  provided  that  the  accused
has not to face a charge for a new offence or is not  prejudiced  either  by
keeping him in the  dark  about  the  charge  or  in  not  giving  him  full
opportunity of meeting it and putting forward any defence  open  to  him  on
the charge finally preferred against him.   Placing  reliance  on  the  said
decision, it has been opined that if during  trial  the  trial  court  on  a
consideration of broad probabilities of the case based upon total effect  of
the evidence and documents  produced  is  satisfied  that  any  addition  or
alteration of the charge is necessary, it is free to do so,  and  there  can
be no legal bar to appropriately act as the exigencies of the  case  warrant
or necessitate.
11.   In Jasvinder Saini and others (supra), the  charge-  sheet  was  filed
before the jurisdictional Magistrate alleging commission of  offences  under
Sections 498-A, 304-B, 406 and 34 IPC against the  appellant  Nos.  1  to  4
therein.  A supplementary charge-sheet was  filed  in  which  the  appellant
Nos. 5 to 8 therein were implicated for the case to which  Section  302  IPC
was  also  added  by  the  investigating  officer.   After  the  matter  was
committed to the Court of Session, the trial court came  to  the  conclusion
that there was no evidence or material on record to  justify  framing  of  a
charge under Section 302 IPC, as a result of which charges were framed  only
under Sections 498-A, 304-B read with Section 34 IPC. When the  trial  court
was proceeding with the matter, this Court delivered the judgment in  Rajbir
alias Raju and anr. v. State of Haryana[9]  and directed that all the  trial
courts in India to ordinarily add Section 302 to the charge on Section  304-
B IPC so that death sentences could  be  imposed  in  heinous  and  barbaric
crimes against women.   The  trial  court  noted  the  direction  in  Rajbir
(supra) and being duty-bound, added the charge under Section 302 IPC to  the
one already framed against the appellant therein and further for  doing  so,
it placed reliance on Section 216 CrPC.  The said order was assailed  before
the High Court which opined that the appearance of   evidence at  the  trial
was not essential for framing of an additional charge or altering  a  charge
already framed, though it may be one of the grounds to do so.   That  apart,
the High Court referred to the autopsy surgeon which, according to the  High
Court, provided prima facie evidence for framing the  charge  under  Section
302 IPC.  Being of this  view, it  declined  to  interfere  with  the  order
impugned. This Court adverting to the facts held thus:-
“It is common ground that  a  charge  under  Section  304-B  IPC  is  not  a
substitute for a charge of murder punishable under Section 302.  As  in  the
case of murder in every case under Section  304-B  also  there  is  a  death
involved. The question whether it is murder  punishable  under  Section  302
IPC or a dowry death punishable under Section 304-B  IPC  depends  upon  the
fact situation and the evidence in the case. If there  is  evidence  whether
direct or circumstantial to prima facie support a charge under  Section  302
IPC the trial court can and  indeed  ought  to  frame  a  charge  of  murder
punishable under Section 302 IPC, which would then be the  main  charge  and
not an alternative charge as is erroneously assumed  in  some  quarters.  If
the main charge of murder is not proved against the accused  at  the  trial,
the court can look into the evidence to determine  whether  the  alternative
charge of dowry death punishable under Section  304-B  is  established.  The
ingredients constituting the two offences are different,  thereby  demanding
appreciation of evidence from the perspective relevant to such  ingredients.
The trial court in that view of the matter acted mechanically for it  framed
an additional  charge  under  Section  302  IPC  without  adverting  to  the
evidence adduced in the case and  simply  on  the  basis  of  the  direction
issued in Rajbir case. The High Court no doubt made a  half-hearted  attempt
to justify the framing of  the  charge  independent  of  the  directions  in
Rajbir case (supra), but it would have been more appropriate  to  remit  the
matter back to the trial court for fresh orders rather than lending  support
to it in the manner done by the High Court.”


12.   It is appropriate to note here, the Court further  observed  that  the
annulment of the order passed by the  court  would  not  prevent  the  trial
court from re-examining the question of framing a charge under  Section  302
IPC against the appellant therein and passing an appropriate order  if  upon
a prima facie appraisal of the evidence adduced before it, the  trial  court
comes to the conclusion that there  is  any  room  for  doing  so.  In  that
context, reference was made to Hasanbhai Valibhai Qureshi (supra).
13.   In Karimullah Osan Khan (supra), the  Court  was  concerned  with  the
legality of the order passed by the Designated  Court  under  the  Terrorist
and Disruptive Activities  (Prevention)  Act,  1987  for  Bomb  Blast  Case,
Greater Bombay rejecting the application filed  by  the  Central  Bureau  of
Investigation (for short “CBI”) under Section 216  CrPC for addition of  the
charges punishable under Section 302 and other charges  under  the  IPC  and
the Explosives Act read with Section 120-B IPC and also under  Section  3(2)
of the Terrorist and  Disruptive  Activities  (Prevention)  Act,  1987.  The
Designated Court framed charges in respect of certain offences and when  the
CBI filed an application for addition of the charge under  Section  302  IPC
and other offences, the Designated Court rejected  the  application  as  has
been indicated  earlier.  In  the  said  context,  the  Court  proceeded  to
interpret the  scope  of  Section  216  CrPC.  Reference  was  made  to  the
decisions in Jasvinder Saini (supra) and Thakur Shah  v.  King  Emperor[10].
Proceeding further, it has been ruled thus:-

“17. Section 216 CrPC gives considerable power to the trial court, that  is,
even after the completion of evidence,  arguments  heard  and  the  judgment
reserved, it can alter and add to any  charge,  subject  to  the  conditions
mentioned therein. The expressions “at any time” and  before  the  “judgment
is pronounced” would indicate that  the  power  is  very  wide  and  can  be
exercised, in appropriate cases, in the interest  of  justice,  but  at  the
same time, the courts should also see that its orders would  not  cause  any
prejudice to the accused.

18. Section 216 CrPC confers  jurisdiction  on  all  courts,  including  the
Designated Courts, to alter or add to any  charge  framed  earlier,  at  any
time  before  the  judgment  is  pronounced  and  sub-sections  (2)  to  (5)
prescribe the procedure which has to be  followed  after  that  addition  or
alteration. Needless to say, the courts can exercise the power  of  addition
or modification of charges under Section 216 CrPC, only  when  there  exists
some material before the court, which has some connection or link  with  the
charges sought to be amended, added or modified. In other words,  alteration
or addition of a charge must be for an offence  made  out  by  the  evidence
recorded  during  the  course  of  trial  before  the  court.  (See  Harihar
Chakravarty v. State of W.B. (supra) Merely because the charges are  altered
after conclusion of the trial, that itself will not lead to  the  conclusion
that it  has  resulted  in  prejudice  to  the  accused  because  sufficient
safeguards  have  been  built  in  Section  216  CrPC  and   other   related
provisions.”

14.    At  this  juncture,   we  have  to  appropriately  recapitulate   the
principles stated in Harihar Chakravarty  (supra).   In  the  said  case,  a
complaint was filed charging the appellant  and  another  for  the  offences
punishable  under  Sections  409,  406,  477  and  114  of  the  IPC.    The
complainant and his witnesses  were  examined  and  on  the  basis  of  said
evidence, the learned Magistrate had framed a charge under Section  409  IPC
against the appellant.  The appellant entered upon  his  defence  and  after
the trial, the Magistrate acquitted the  appellant  and  the  other  accused
under Section 409 IPC.  The complainant filed  a  criminal  revision  before
the High Court which set aside the  order  of  acquittal  and  remanded  the
matter to the Magistrate  for  decision  for  amendment  of  the  charge  by
examining appropriate evidence.  The said order was the  subject  matter  of
assail before this Court.  This Court, addressing to the merits of the  case
opined thus:-
“8. This was a private prosecution in which  the  complainant  came  forward
with a story that the never ordered the appellant to purchase  these  shares
and that therefore the shares did not belong to him, and he had no  interest
in them or title to them. In fact his case was that the  shares  were  never
purchased by the appellant under his instructions. All that was found to  be
false and it was found that he did order  them  to  be  purchased  and  that
therefore the shares were his. The order  which  was  made  by  the  learned
Judge in effect meant that  the  complainant  should  abandon  his  original
story to lay claim to the shares and prosecute  the  Appellant  for  another
and distinct offence which could only arise on  a  different  set  of  facts
coming into existence after the purchase of the shares. The appellant  might
or might not be guilty of this other offence, but he is  certainly  innocent
of the offence with which he was charged and for which he  was  fully  tried
and therefore he is entitled to an acquittal and the learned  Judge  had  no
power to set aside that order so long as he agreed,  as  he  did,  that  the
appellant was not guilty of the offence with which he was  charged.  Once  a
charge is framed and the accused is found  not  guilty  of  that  charge  an
acquittal must be recorded under Section 258(1) of  the  Criminal  Procedure
Code. There is no option in the matter and we are of the  opinion  therefore
that the order setting aside the acquittal was in any event bad.

9. Next as regards the direction to alter the charge so  as  to  include  an
offence for which the appellant was not originally charged, that could  only
be done if the trial court itself had taken action under Section 227 of  the
Criminal Procedure Code before it pronounced judgment. It  could  only  have
done so if there were materials before it either in the complaint or in  the
evidence to justify such action.

10. The complaint affords no material for any such case because it is  based
on the allegation that the shares did not  belong  to  the  complainant  and
that in fact they were never purchased. The learned Judge observed that  the
contention was  that  the  shares  belonged  to  the  complainant  and  were
dishonestly pledged by the appellant with the Nath  Bank.  We  do  not  find
even a word about this either in the complaint or in the examination of  the
complainant.”
                                                         [emphasis is added]

15.   After so stating, the Court opined  that  there  was  no  material  on
which the trial court could have amended the charge under Section  227  CrPC
and the learned Judge therefore had no power to direct an  amendment  and  a
continuation of the same trial as he  purported  to  do.    The  purpose  of
laying stress on the said authority is that the trial court  could  issue  a
direction for alteration of the charge if there were materials before it  in
the complaint or any evidence to justify such  action.    On  the  aforesaid
three-Judge Bench decision, it is quite vivid that if there are  allegations
in the complaint  petition  or  for  that  matter  in  FIR  or  accompanying
material, the court can alter the charge.  In Thakur Shah  v.  King  Emperor
(supra), what the Court has held is that alteration or addition of a  charge
must be for an offence made out by the evidence recorded during  the  course
of  trial  before  the  court.   It  does  not  necessarily  mean  that  the
alteration can be done only in a case where evidence  is  adduced.   We  may
hasten to clarify that there has been a reference to the  decision  rendered
in Harihar Chakravarty (supra) but the said reference has to  be  understood
in the context.  Section 216 CrPC, as is evincible, does not lay  down  that
the court cannot alter the charge solely because it has framed  the  charge.
In Hasanbhai Valibhai Qureshi (supra), it has been  stated  there  is  scope
for alteration of the charge during trial on the basis of  material  brought
on record.  In Jasvinder Saini and others (supra), it  has  been  held  that
circumstances in which addition or alteration of charge  can  be  made  have
been stipulated in Section 216 CrPC and sub-sections (2) to (5)  of  Section
216 CrPC deal with the procedure to be followed once the  court  decides  to
alter or add any charge.   It has been laid down therein that  the  question
of any such addition or alteration generally arise either because the  court
finds the charge already framed to be defective for any  reason  or  because
such addition is considered necessary after the commencement  of  the  trial
having regard to the evidence that may come before the court.  If  the  said
decision is appositely understood, it clear lays down  the  principle  which
is in consonance with Harihar Chakravarty (supra).
16.   From the aforesaid, it is graphic that the court can change  or  alter
the charge if there is defect or something is left out.   The  test  is,  it
must be founded on the material available on record. It can be on the  basis
of the complaint or the  FIR  or  accompanying  documents  or  the  material
brought on record during the course of trial. It can also  be  done  at  any
time before pronouncement of judgment.  It is not  necessary  to  advert  to
each and every circumstance.   Suffice it to  say,  if  the  court  has  not
framed a charge despite the material on record, it has the  jurisdiction  to
add a charge.  Similarly, it has the authority to  alter  the  charge.   The
principle that has to be kept in mind is that the charge so  framed  by  the
Magistrate is in accord  with  the  materials  produced  before  him  or  if
subsequent evidence comes on record. It is not to be understood that  unless
evidence has been let in, charges already  framed  cannot  be  altered,  for
that is not the purport of Section 216 CrPC.
17.   In addition to what we have stated hereinabove,  another  aspect  also
has to be kept in mind. It is obligatory on the part of  the  court  to  see
that no prejudice is caused to the accused and he is allowed to have a  fair
trial. There are in-built safeguards in Section 216 CrPC.  It  is  the  duty
of the trial court to bear in mind  that  no  prejudice  is  caused  to  the
accused as that has the potentiality to affect a fair trial.   It  has  been
held in Amar Singh  v. State of Haryana[11] that the accused must always  be
made aware of the case against them so as to enable him  to  understand  the
defence that he can lead. An accused can be convicted for an  offence  which
is minor than  the  one  he  has  been  charged  with,  unless  the  accused
satisfies the court that there has been a failure of  justice  by  the  non-
framing of a charge under a particular penal provision, and  some  prejudice
has been caused to the accused. While  so  stating,  we  may  reproduce  the
following two passages from Bhimanna v. State of Karnataka[12]:-
“25. Further, the defect must be so serious that it cannot be covered  under
Sections  464/465  CrPC,  which  provide  that,  an  order  of  sentence  or
conviction shall not be deemed to be invalid only  on  the  ground  that  no
charge was framed, or that  there  was  some  irregularity  or  omission  or
misjoinder of charges, unless the court comes to the conclusion  that  there
was also, as a consequence, a failure of  justice.  In  determining  whether
any error, omission or irregularity in framing the  charges  has  led  to  a
failure of justice, this Court must have  regard  to  whether  an  objection
could have been raised at an earlier stage during the  proceedings  or  not.
While judging the question of prejudice or guilt, the  court  must  bear  in
mind that every accused has a right to a fair trial, where he  is  aware  of
what he is being tried for and where the  facts  sought  to  be  established
against him, are explained to him fairly and clearly, and further, where  he
is given a  full  and  fair  chance  to  defend  himself  against  the  said
charge(s).

26. This Court in Sanichar Sahni v. State of  Bihar[13],  while  considering
the issue placed reliance upon various judgments of this Court  particularly
on Topandas v. State of Bombay[14], Willie  (William)  Slaney  v.  State  of
M.P.[15], Fakhruddin v. State of M.P.[16],  State  of  A.P.  v.  Thakkidiram
Reddy[17], Ramji Singh v. State of Bihar[18] and Gurpreet Singh v. State  of
Punjab[19] and came  to  the  following  conclusion:  (Sanichar  Sahni  case
(supra), SCC p. 204, para 27)

“27. Therefore … unless the convict is able  to  establish  that  defect  in
framing the charges has caused real prejudice to him and  that  he  was  not
informed as to what was the real case against him  and  that  he  could  not
defend   himself   properly,   no   interference   is   required   on   mere
technicalities. Conviction order in fact is to be tested on  the  touchstone
of prejudice theory.”

A similar view has been reiterated in Abdul Sayeed v. State of M.P.[20]”

18.   We have reproduced the aforesaid passages by abundant caution so  that
while adding or altering a charge under Section 216 CrPC,  the  trial  court
must keep both the aforestated principles in view.   The test of  prejudice,
as has been stated in the aforesaid judgment, has to be borne in mind.
19.   Presently to the second aspect. Submission of Mr. Sharan is  that  the
learned Magistrate could not have entertained the application  preferred  by
the informant, for such an application is incompetent because it has  to  be
filed by the public prosecutor. In this regard, he has laid  stress  on  the
decision in Shiv Kumar v. Hukam Chand and another[21].  In  the  said  case,
the grievance of the appellant was that  counsel  engaged  by  him  was  not
allowed by the High Court to conduct the prosecution in spite  of  obtaining
a consent from the concerned Public Prosecutor.  The trial court had  passed
an order to the extent that the advocate  engaged  by  the  informant  shall
conduct the case under the supervision, guidance and control of  the  Public
Prosecutor. He had further directed that the Public Prosecutor shall  retain
with  himself  the  control  over  the  proceedings.  The  said  order   was
challenged before the High Court and the learned single Judge  allowing  the
revision had directed that  the  lawyer  appointed  by  the  complainant  or
private person shall act under the directions  from  the  Public  Prosecutor
and may with the permission of the  court  submit  written  arguments  after
evidence is closed and the Public Prosecutor in-charge  of  the  case  shall
conduct the prosecution. This Court referred to Sections  301,  302(2),  225
CrPC and various other provisions and came to hold as follows:-

“13. From the scheme of the Code the  legislative  intention  is  manifestly
clear that prosecution in a Sessions Court cannot  be  conducted  by  anyone
other than the Public Prosecutor. The legislature  reminds  the  State  that
the policy must strictly conform to fairness in the trial of an  accused  in
a Sessions Court. A Public Prosecutor is not expected to show  a  thirst  to
reach the case in the  conviction  of  the  accused  somehow  or  the  other
irrespective of the true facts involved in the case. The  expected  attitude
of the Public Prosecutor while conducting prosecution  must  be  couched  in
fairness not only to the court and to the investigating agencies but to  the
accused as well. If an accused is entitled to any legitimate benefit  during
trial the Public Prosecutor should not scuttle/conceal it. On the  contrary,
it is the duty of the Public Prosecutor to winch it to the fore and make  it
available to the accused. Even if the defence  counsel  overlooked  it,  the
Public Prosecutor has the added responsibility to bring it to the notice  of
the court if it comes to his knowledge. A  private  counsel,  if  allowed  a
free hand to conduct  prosecution  would  focus  on  bringing  the  case  to
conviction even if it is not a fit case to be  so  convicted.  That  is  the
reason why Parliament applied  a  bridle  on  him  and  subjected  his  role
strictly to the instructions given by the Public Prosecutor.

14. It is not merely an overall supervision which the Public  Prosecutor  is
expected to perform in such  cases  when  a  privately  engaged  counsel  is
permitted to act on his behalf. The role which a private counsel in  such  a
situation can play is, perhaps, comparable with that of  a  junior  advocate
conducting the case of his senior in a court. The private counsel is to  act
on behalf of the Public Prosecutor albeit the fact that  he  is  engaged  in
the case by a private party.  If  the  role  of  the  Public  Prosecutor  is
allowed to shrink to a mere  supervisory  role  the  trial  would  become  a
combat between the private party and the  accused  which  would  render  the
legislative mandate in Section 225 of the Code a dead letter.”

20.   Being of this view, this Court upheld the order  passed  by  the  High
Court. The said decision is, in our opinion, is  distinguishable  on  facts.
The instant case does not pertain to trial or any area by  which  a  private
lawyer takes control of the proceedings.  As is evident, an application  was
filed by the informant to add a charge under Section 406 IPC as  there  were
allegations against the husband about the criminal breach of  trust  as  far
as her stridhan is concerned.   It was, in a way, bringing to the notice  of
the learned Magistrate about the defect in framing of the charge. The  court
could have done it suo motu.  In such a situation, we do not find any  fault
on the part of learned Magistrate in entertaining the said  application.  It
may be stated that the learned Magistrate has referred to the materials  and
recorded his prima facie satisfaction.  There is no error in the said  prima
facie  view.   We also do not perceive any error in the revisional order  by
which it  has  set  aside  the  charge  framed  against  the  mother-in-law.
Accordingly, we affirm the  order  of  the  High  Court  in  expressing  its
disinclination to interfere with the  order  passed  in  revision.   We  may
clarify that the entire scrutiny is only  for  the  purpose  of  framing  of
charge and nothing else. The learned Magistrate will proceed with the  trial
and decide the matter as per the evidence brought on record  and  shall  not
be influenced by any observations made as the same  have  to  be  restricted
for the purpose of testing the legal defensibility of the impugned order.
21.   Consequently, the appeal, being devoid of merit,  stands dismissed.

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



                                  .................................J.
                                        [Shiva Kirti Singh]
NEW DELHI
March, 4, 2016
-----------------------
[1]    (2014) 11 SCC 538
[2]    (2004) 5 SCC 347 : (2004) 2 RCR (Criminal) 463
[3]    (2013) 7  SCC 256
[4]    AIR 1954 SC 266
[5]    (2013) 10 SCC 591
[6]    CRR 657 of  2015 [High Court of Punjab and Haryana]
[7]    Criminal Misc. No. M-1044 of 2014 (O&M) Order dated 07.03.2014
[8]    (1969) 3 SCC 166
[9]    (2010) 15 SCC 116
[10]   (1942-43) 70 IA 196 : (1943) 56 LW 706 : AIR 1943 PC 192
[11]   (1974) 3 SCC 81
[12]   (2012) 9 SCC 650
[13]   (2009) 7 SCC 198
[14]   AIR 1956 SC 33
[15]   AIR 1956 SC 116
[16]   AIR 1967 SC 1326
[17]   (1998) 6 SCC 554
[18]   (2001) 9 SCC 528
[19]   (2005) 12 SCC 615
[20]   (2010) 10 SCC 259
[21]   (1999) 7 SCC 467

HILTRON.-Smart Card based driving licence and vehicle registration certificate. = “ The fact remains that it is not necessary for the State to invite tender in all cases. The fact remains that it is not necessary for the State to buy a product at the lowest price. The State has a choice to buy a better product at a higher price. But the law is settled that whatever the State is doing, the same must be transparent. Unless the intention to enter into such a contract is made public, there cannot be any transparency in the entering into that contract. The process of finalizing the contract being shrouded with thick blackness, the whole thing is bad.”

                                                              NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO.2470 OF 2016
                   (Arising out of SLP (C) No. 36061/2013)



      SCORE INFORMATION TECHNOLOGIES LTD.         APPELLANT

                                VERSUS

      SRIYASH TECHNOLOGIES LTD. & ORS.            RESPONDENTS


                                  J U D G M E N T

      KURIAN, J.


1.    Leave granted.

2.    The  appellant  herein  was  the  respondent  No.4  in  Writ  Petition
No.1087/2007 on the file of the  High  Court  of  Uttarakhand  at  Nainital.
That writ petition was filed by  respondent  No.1  herein,  challenging  the
award  of  project  of  Smart  Card  based  driving  licence   and   vehicle
registration certificate.  Though it may not be necessary  to  go  into  the
facts in detail, still it is significant to note  that  respondent  No.3  in
the Writ Petition, namely, HILTRON is  a  Public  Sector  Undertaking,  with
whom the State of  Uttarakhand  had  entered  into  an  MOU  for  providing,
facilitating and  marketing  information  technology  solutions  within  the
State of  Uttarakhand.   HILTRON  was  also  nominated  as  the  Information
Technology and Communication service provider for various Departments, Semi-
Government  Departments  and  Institutions,
etc.  HILTRON and Transport Commissioner of Uttarakhand entered into an  MOU
with regard to the project of Smart Card based driving licence  and  vehicle
registration certificate. HILTRON in turn  nominated  the  appellant  herein
for execution of the project work.  That MOU with HILTRON was challenged  by
the respondent No.1 herein (petitioner before the  High  Court).   According
to  them,  the  award  of  the  project  to  HILTRON  on  the  basis  of  an
understanding between the Transport Commissioner  and  the  undertaking  was
impermissible  under  law,  being  violative  of  Article  14.    Therefore,
necessarily any arrangement made by the HILTRON with any other  party  would
also have to be set at naught.  The learned Single Judge dismissed the  Writ
Petition holding that there was no illegality on the part of the  State  and
the Transport Commissioner in getting the work of Smart Card  based  driving
licence and vehicle registration  certificate,  etc.  done  through  HILTRON
with the assistance of the appellant herein.  The above  conclusion  of  the
learned Single Judge was based on the  finding  that  the  writ  petitioners
were not competitors qualified for execution of the project  and  hence  the
intra court-before the Division Bench.
3.    Though, there are serious disputes on those aspects as to whether  the
writ petitioners were qualified or not,  ultimately what the Division  Bench
did  is  only  to  set  aside   the  arrangement   between   the   Transport
Commissioner and the

HILTRON.  In the impugned judgment  dated  24.07.2013,  the  Division  Bench
held as under:

 “ The fact remains that it is not necessary for the State to invite  tender
in all cases.  The fact remains that it is not necessary for  the  State  to
buy a product at the lowest price.  The State has a choice to buy  a  better
product at a higher price.  But the law is settled that whatever  the  State
is doing, the same must be transparent.  Unless the intention to enter  into
such a contract is made public, there cannot  be  any  transparency  in  the
entering into that contract.  The process of finalizing the  contract  being
shrouded with thick blackness, the whole thing is bad.”

4.    Accordingly, the appeal was allowed and the  writ  petition  was  also
allowed setting aside the arrangement made  by  the  Transport  Commissioner
with the HILTRON-Respondent No.3 in the High Court.
5.    HILTRON is not before this Court in  challenging  the  judgment.   The
judgment is challenged only by respondent No.4 in the writ petition who  had
entered into an MOU with HILTRON for execution of the  project work.
6.    Shri Shyam Divan, learned senior counsel appearing for  the  appellant
contends  that  the  learned  Single  Judge  having  found  that  the   writ
petitioners had no locus-standi and thus, dismissed the writ  petition,  the
Division Bench was not justified in addressing  the  issue  on  a  different
angle.  We find it difficult to appreciate  this  contention.   Whether  the
writ petitioners were qualified for the execution of the project work is  to
be seen only when the qualification is  to  be  addressed  by  the  quarters
concerned while awarding the work.
7. Be that as it may, the MOU was entered into between the  parties  in  the
year  2006 and since one decade has elapsed, we are of  the  view  that  the
whole issue must be addressed afresh  by  the  State,  in  case  it  is  not
already addressed.
8.    In public interest, we are also of the  view  that  the  State  should
take steps,  if  not  already  taken,  for  execution  of  the  project,  in
accordance with law expeditiously.
9.    With the above observations, this appeal is disposed of with no  order
as to costs.
10.   However, we make it clear that this order shall not stand in  the  way
of the appellant to work out his  grievances  with  HILTRON  in  appropriate
proceedings.


                                             .................J.
                                       [KURIAN JOSEPH]



                                                      ....................J.
                                                     [ROHINTON FALI NARIMAN]
 NEW DELHI;
  MARCH 03, 2016

Sunday, March 6, 2016

It becomes clear from the above that insofar as dispute pertaining to 94 Bigha 15 Biswa is concerned, it was totally a different subject matter not covered by the proceedings in the first round. We would like to reproduce the following observations of the learned single Judge in his judgment dated December 01, 2010 which clinches the issue and we entirely agree with the said reasons. “20. The petitioners have not pleaded that the said 94 bighas 15 biswas of land or any part thereof was part of the holding in Khewat Nos. 73 and 85 of which the petitioners and the respondents were Bhumidars and in possession. Thus it cannot be said that the partition/distribution of land of which the petitioners and the respondents were Bhumidars and in possession of is bad for the reason of non inclusion of 94 bighas 15 biswas of land of which the petitioners are not shown to be Bhumidars and in possession. The petitioners in fact by way of these proceedings are found to be seeking to reopen the matters which stand concluded in the earlier round of litigation till the Supreme Court.” - It is for this reason that this Court gave liberty to the appellants to initiate appropriate proceedings in this behalf including filing of suit if that was remedy available in law. The appellants, in fact, filed the suit for this purpose. However, for reasons best known to them, they choose to withdraw the suit. After the withdrawal of the suit, they again approach the Commissioner and filed revision petition arising out of earlier proceedings which was rightly dismissed by the Commissioner holding that such proceedings were not maintainable. It is this view which is upheld by the single Judge as well as Division Bench of the High Court. We may point out that the learned single Judge of the High Court has even recorded in his judgment that respondents have no objection to the appellants instituting proceedings, if entitled in law, for claiming share in the said 94 Bigha 15 Biswa of land.

                                                              NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                       CIVIL APPEAL NO.  2522 OF 2016
              (ARISING OUT OF S.L.P. (CIVIL) NO. 15358 OF 2011)


|RAM DUTT (D) THROUGH LRS. & ORS.           |.....APPELLANT(S)            |
|                                           |                             |
|VERSUS                                     |                             |
|DEV DUTT (D) THROUGH LRS. & ORS.           |.....RESPONDENT(S)           |


                               J U D G M E N T


A.K. SIKRI, J.

                 Leave granted.

We heard learned counsel for the  parties  at  length.   For  deciding  this
appeal, those  facts  which  are  essential  to  understand  the  nature  of
controversy are captured hereinafter.
            The appellants, who  are  three  in  numbers,  and  the  private
respondents, who are 27 in numbers (hereinafter referred to as the  “private
respondents”), are members of one family.  Their predecessors owned land  in
the Revenue Estate of Burari, Delhi since 1948, i.e., much before the  Delhi
Land Reforms Act, 1954 (hereinafter referred to as the “Act”)  was  enacted.
The appellants,  therefore,  claimed  that  they  are  co-sharers  with  the
private respondents in the said land which is described as  Khewat  Nos.  73
and 85 in Revenue Estate, Burari, Delhi.  According to them, total  area  of
the land comprised by the aforesaid  two  Khewat  numbers  is  253.31  Bigha
which is now owned by the said family members.  After coming into  force  of
the said Act, a part of said land was  recorded  in  the  Bhumidari  of  the
appellants   only.    This   gave   cause   of   action   to   the   private
respondents/their predecessors to file proceedings under Section 11  of  the
Act for declaration that they were also Bhoomidars of the  said  land  which
could not be exclusively  entered  in  the  name  of  the  appellants.   The
appellants, on the other hand, claimed that the land  in  respect  of  which
they were declared Bhoomidars vested in them  exclusively  as  a  result  of
oral partition and re-partition during consolidation  proceedings  conducted
in the year 1975-76.  The Court of Revenue Assistant decided  the  issue  in
favour of the appellants and dismissed  the  proceedings  initiated  by  the
private respondents.  First appeal  of  the  private  respondents  preferred
against the aforesaid order  was  also  dismissed.   However,  their  second
appeal  to  the  Financial  Commissioner  was  accepted  vide  orders  dated
February  08,  1979  and  these  private  respondents   were   declared   as
Bhoomidars, in accordance with their shares, along with  the  appellants  in
respect of those lands contained in Khewat Nos. 73 and  85  in  the  Revenue
Estate of Burari.

The Consolidation Officer implemented the aforesaid orders vide  his  orders
dated December 31, 1982 thereby modifying the allotment pursuant to the  re-
partition.  The appellants, on the other hand, did  not  accept  this  order
and preferred a revision petition  to  the  Financial  Commissioner  against
orders dated December 31, 1982.  Main plea of the appellants  was  that  the
Consolidation Officer could not have ordered modification in the  allotment,
having  become  functus  officio.   The  Financial  Commissioner,   however,
rejected the revision petition of the appellants vide his orders dated  June
14, 1983.  He held that since at the time when the order dated  February  8,
1979 (supra) was passed holding the private  respondents/their  predecessors
as Bhumidars together with the appellants, consolidation proceedings in  the
village were in progress, the private  respondents/their  predecessors  were
entitled to approach the Consolidation Officer  for  allotment  of  land  to
them in lieu of their share in the Bhumidari rights out of  Khewat  Nos.  73
and 85.  The contentions of the appellants that  the  Consolidation  Officer
had become functus officio and could not effect partition was negatived  and
the Consolidation Officer was held to be  entitled  to  allot  land  to  the
private respondents/their predecessors as per their joint Khewats  with  the
appellants.

The appellants preferred CWP No. 2462/1984 in the  High  Court  against  the
aforesaid order dated June 14, 1983  of  the  Financial  Commissioner.   The
said Writ Petition was dismissed vide order dated February 11, 1985.

The appellants then preferred SLP No. 9594/1985  which  was  also  dismissed
vide order dated January 27, 1986.  It is, thus, clear  that  order  of  the
Financial Commissioner attained  finality.  However,  while  dismissing  the
special leave petition, this Court also made  certain  observations.  Since,
these observations are relevant for our purposes,  we  are  reproducing  the
order dated January 27, 1986 in its entirety:
“There is no ground to interfere with the order dated 8.2.1979  which  shall
be binding on the parties.  If the petitioners have not been allotted  1/5th
of the total holding as determined in the order dated 8.2.1979  it  will  be
opened to the petitioners to resort to any other  remedy  available  in  law
including a suit if it is permissible.  Status quo will  continue  for  four
weeks.  The Special Leave Petition is disposed off with the observations.”



Armed with this order, showing a window to agitate  their  rights  qua  non-
allotment of a particular land, the appellants filed a suit in the court  of
Revenue Assistant for allocation of their 1/5th share in the  Bhoomidari  in
Khewat Nos. 73 and 85.  However, after some time   the  appellants  withdrew
the said suit.

It so happened that respondent no. 26 also  felt  aggrieved  by  the  orders
dated December 13, 1982 of the Consolidation Officer  as  according  to  him
the Consolidation Officer had not correctly  implemented  the  orders  dated
February 08, 1979 passed by the  Financial  Commissioner.   He,  thus,  also
preferred a revision  petition  before  the  Financial  Commissioner.   This
revision petition was opposed by Respondent Nos. 1  to  25.   The  Financial
Commissioner, after hearing parties, passed  orders  dated  April  13,  1987
thereby remanding the matter back to the Consolidation Officer  for  correct
implementation of his order dated February  08,  1978.   The  writ  petition
filed by the Respondent  Nos.  1  to  25  against  the  said  order  of  the
Financial Commissioner was dismissed by the High Court.

When the matter was, thus, remanded back to  the  Consolidation  Officer  at
the instance of Respondent No. 26, the aforesaid success of  Respondent  No.
26 in the revision petition filed by him emboldened the appellants  as  well
to file another revision petition before the Financial  Commissioner.   They
contended that their grievances were the same as that of Respondent No.  26.
 They also referred to orders dated January 27, 1986 passed  by  this  Court
in Special Leave Petition No. 1994/1985 and on  that  basis  submitted  that
the Supreme Court had permitted them to claim their rightful share.

The Financial  Commissioner  vide  order  dated  November  11,  1987  though
dismissed   the   Revision   Petition    but    held    that    since    the
Tehsildar/Consolidation Officer  pursuant  to  the  order  in  the  Revision
Petition of the respondent no. 26 was verifying the  shares  of  the  family
members in Kehwat Nos. 73 and 85, if the appellants had any grievance,  they
could also approach  the  Teshildar/Consolidation  Officer  who  vide  order
dated 12th July, 1988 divided the land in Khewat Nos. 73 &  85  between  the
appellants  and  the  private  respondents.  The  said  order  contains  the
particulars of the land allotted to each of the groups.  However,  after  so
dividing/apportioning the land, the Tehsildar/Consolidation Officer  at  the
foot of the order mentioned “the details of Khasra Nos. of two Khewats  i.e.
73 and 85 which have been left out for distribution amongst the  co-sharers”
and thereafter gave the Khasra Nos. of 94 bighas 15 biswas of land  so  left
out.  The said order of the  Tehsildar/Consolidation  Officer  records  that
the same was agreed to by all the parties.

The appellants  contending  that  the  Tehsildar/Consolidation  Officer  had
failed to divide/apportion the aforesaid 94 bighas 15 biswas of  land  again
preferred a Revision Petition to the Financial Commissioner.

The Financial Commissioner vide order dated August 09,  1988  dismissed  the
said Revision Petition as  not  maintainable.   It  was  held  that  if  the
appellants were claiming Bhumidari rights in the said 94  bighas  15  biswas
of land, their remedy was by way of an application under Section 11  of  the
Act for declaration of this Bhumidari rights and  that  the  appellants  had
already been given their share in accordance with order  dated  February  8,
1979.

It is this order of the Financial Commissioner which  was  impugned  by  the
appellants by filing writ petition in the High Court.  Learned Single  Judge
was not convinced by the plea raised by the  appellants  in  the  said  writ
petition and dismissed the  same  vide  judgment  dated  December  01,  2010
holding that there was no error  in  the  orders  passed  by  the  Financial
Commissioner. We may note that primary contention raised by  the  appellants
was that 94 bighas 15 biswas of land was left out  and  not  distributed  by
the Consolidation Officer.   The  appellants,  therefore,  pleaded  that  it
should also be distributed and they should not be relegated to having  their
rights as Bhumidars with  respect  to  the  said  land  by  instituting  the
separate proceedings under Section 11 of the Act.  This  contention  of  the
appellants was rejected by the learned  Single  Judge  of  the  High  Court,
inter alia, on the ground that the  land  which  the  Consolidation  Officer
distributed/apportioned between the appellants and the  private  respondents
vide his orders dated July 12, 1988 was a land of which the  appellants  and
the respondents were Bhumidars and of which they were in possession  and  it
was only that land which was the subject matter  of  orders  dated  February
08, 1979.  According to the learned Single Judge of  the  High  Court,  left
out land admeasuring 94 bighas 15 biswas in which the  appellants  were  now
claiming their share was the land in respect whereof there was a dispute  of
ownership and it was not for the High Court to  inquire  into  this  factual
aspect in writ jurisdiction.

The appellants filed Letters Patent Appeal  No.  128  of  2011  against  the
aforesaid  order  of  the  learned  Single  Judge.   This  appeal  has  been
dismissed by the Division Bench vide  its  orders  February  1,  2011.   The
Division Bench has taken note of order dated  January  27,  1986  passed  by
this Court in  SLP  (C)  No.  9594/1985  and  filing  of  the  suit  by  the
appellants thereof which was withdrawn.  On that basis, it is  held  that  a
second writ petition could not have been filed when on earlier occasion  the
lis  in-question  was  adjudicated.   It  has,  thus,  brushed   aside   the
submissions of the appellants that when a revision  petition  was  filed  by
one of the respondents, the appellants felt that  they  could  also  file  a
revision petition.

It is this order which is in appeal before us.

After going through the orders and hearing the counsel for the  parties,  we
are of the opinion that the impugned order of the High Court does  not  call
for any interference.  The narration of facts disclosed above  unambiguously
reveals that in the first round they had claimed  that  they  were  the  co-
sharers with private respondents in the land described  as  Khewat  Nos.  73
and 85 in Revenue Estate of Burari, Delhi which was measuring 253.31  Bhiga.
 The issue was whether the respondents  were  also  Bhumidars  of  the  said
land.  The appellants  had  contended  that  they  were  declared  Bhumidars
exclusively to the exclusion of private respondents  as  a  result  of  oral
partition and re-partition during  consolidation  proceedings  conducted  in
the  year  1975-1976.   Their  respective  shares  were  apportioned.   Such
proceedings were  ultimately  decided  in  favour  of  the  respondents  and
achieved finality as the SLP No.  9594/1985  of  the  appellants  were  also
dismissed.  However, before this Court, the appellants  took  another  plea,
namely, they were not allotted 1/5th of the total holding as  determined  in
the order dated 08.02.1979.  Taking  note  of  this  contention,  the  Court
observed that it would be open to the appellants  to  resort  to  any  other
remedy available in law  including  a  suit  if  it  is  permissible.   This
clearly  implied  that  for  non-allotment  of  entire  1/5th  holding,  the
appellants were free to avail  'any  other  remedy'  as  per  law.   Precise
contention of the appellants was that 94 Bigha 15 Biswa  of  land  was  left
out and not distributed and, therefore, the same  be  also  distributed  and
the appellants should get their rights as Bhumidars  in  the  said  land  as
well.  This land of 94 Bigha 15 Biswa was not  the  subject  matter  of  the
earlier proceedings.  Position in respect of this  land  is  stated  by  the
learned single Judge of the High Court in judgment dated December  01,  2010
in the following manner:

“...It thus appears that 94 bighas 15 biswas of the left out  land  referred
to in the  order  dated  12th  July,  1988  of  the  Tehsildar/Consolidation
Officer is the balance land as per the Jamabandi  of  the  year  1948.   The
land which the Consolidation  Officer  vide  order  dated  12th  July,  1988
distributed/ apportioned between the petitioners  and  the  respondents  was
the land of which the petitioners and the respondents were Bhumidars and  of
which they were in possession of and which land was the  subject  matter  of
the order dated 8th February, 1979 (supra).  It  thus  transpires  that  the
entire land of which the petitioners and the respondents were the  Bhumidars
and in possession of and in which the rights of  the  respondents  1  to  27
were upheld by the  order  dated  8th  February,  1979  which  has  attained
finality has already been distributed.  The left  out  land  admeasuring  94
bighas 15 biswas in which the petitioners are  now  claiming  share  is  the
land which, according to the petitioners, had in the  settlement  fallen  to
the share of the respondents and in which the  respondents  had  lost  their
rights by not taking back the mortgage upon coming into  force  of  the  DLR
Act.”

It becomes clear from the above that insofar as  dispute  pertaining  to  94
Bigha 15 Biswa is concerned, it was totally a different subject  matter  not
covered by the proceedings in the first round. We would  like  to  reproduce
the following observations of the  learned  single  Judge  in  his  judgment
dated December 01, 2010 which clinches the issue and we entirely agree  with
the said reasons.

“20.  The petitioners have not pleaded that the said 94 bighas 15 biswas  of
land or any part thereof was part of the holding in Khewat Nos.  73  and  85
of  which  the  petitioners  and  the  respondents  were  Bhumidars  and  in
possession.  Thus it cannot be said that the partition/distribution of  land
of  which  the  petitioners  and  the  respondents  were  Bhumidars  and  in
possession of is bad for the reason of non inclusion of 94 bighas 15  biswas
of land of which the petitioners are  not  shown  to  be  Bhumidars  and  in
possession.  The petitioners in fact by way of these proceedings  are  found
to be seeking to reopen the matters which stand  concluded  in  the  earlier
round of litigation till the Supreme Court.”

It is for this reason that this Court gave  liberty  to  the  appellants  to
initiate appropriate proceedings in this behalf including filing of suit  if
that was remedy available in law.  The appellants, in fact, filed  the  suit
for this purpose.  However, for reasons best known to them, they  choose  to
withdraw the suit.  After the withdrawal of the suit,  they  again  approach
the  Commissioner  and  filed  revision  petition  arising  out  of  earlier
proceedings which was rightly dismissed by  the  Commissioner  holding  that
such proceedings were not maintainable.  It is this view which is upheld  by
the single Judge as well as Division Bench of the High Court.  We may  point
out that the learned single Judge of the High Court  has  even  recorded  in
his  judgment  that  respondents  have  no  objection  to   the   appellants
instituting proceedings, if entitled in law, for claiming share in the  said
94 Bigha 15 Biswa of land.



We, thus, find no merit in  this  appeal  which  is  accordingly  dismissed.
However, there shall be no order as to cost.



                                ….......................................CJI.
                                                                (T.S.THAKUR)



                             .............................................J.
                                                                (A.K. SIKRI)



                             .............................................J.
                                                              (R. BANUMATHI)


NEW DELHI;
MARCH 04, 2016.


when the period of limitation prescribed in the Act for passing the assessment order expires, thereafter, the Commissioner is debarred from exercising his powers under sub-section (10) of Section 11 of the Act and cannot extend the period of limitation for the purposes of assessment.=The Assessing Officer, however, sent notices to the respondent- assessee in Form ST-XIV for the aforesaid Assessment Years, i.e., after the expiry of three years. The assessee took an objection that these notices were sent beyond the period of assessment and, therefore, it was not permissible for the Assessing Officer to issue notice after the expiry of three years and carry on with the assessment proceedings.=Therefore, there would be no question of extending the time for assessment when the assessment has already become time barred. A valuable right has also accrued in favour of the assessee when the period of limitation expires. If the Commissioner is permitted to grant the extension even after the expiry of original period of limitation prescribed under the Act, it will give him right to exercise such a power at any time even much after the last date of assessment That provision is made for the benefit of the assessee which empowers the Assessing Officer to grant an extension of time for filing of the return of income and, therefore, obviously will have no bearing on the issue at hand. Moreover, this Court in Ajantha Electricals's case (supra), which is relied upon by the learned counsel for the appellant, held that the time can be extended even after the time allowed originally has expired on the interpretation of the words “it has not been possible” occurring in Section 133(2) of the Act. The Court, thus, opined that the aforesaid expression would mean that the time can be extended even after original time prescribed in the said provision has expired. Same is our answer to the argument of Mr. Ganguli predicated on Section 28 of the Arbitration Act, 1940 as that provision was in altogether different context.

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                  CIVIL APPEAL NOS.      2506-2511 OF 2016
              (ARISING OUT OF SLP (C) NOS. 21712-21717 OF 2009)



|STATE OF PUNJAB & ORS.                            |…..APPELLANT(S)         |
|   VERSUS                                         |                        |
|M/S. SHREYANS INDUS LTD. ETC.                     |.....RESPONDENT(S)      |


                                    WITH
                        CIVIL APPEAL NO. 2512 OF 2016
                 (ARISING OUT OF SLP (C) NO. 31488 OF 2009)

                  CIVIL APPEAL NOS.      2513-2514 OF 2016
              (ARISING OUT OF SLP (C) NOS. 35619-35620 OF 2009)

                        CIVIL APPEAL NO. 2515 OF 2016
                  (ARISING OUT OF SLP (C) NO. 1672 OF 2010)

                     CIVIL APPEAL NOS. 2516-2517 OF 2016
              (ARISING OUT OF SLP (C) NOS. 13237-13238 OF 2010)

                  CIVIL APPEAL NOS.      2518-2519 OF 2016
               (ARISING OUT OF SLP (C) NOS. 5076-5077 OF 2011)

                        CIVIL APPEAL NO. 2520 OF 2016
                 (ARISING OUT OF SLP (C) NO. 33095 OF 2011)

                                     AND

                        CIVIL APPEAL NO. 2521 OF 2016
                 (ARISING OUT OF SLP (C) NO. 12305 OF 2015)


                               J U D G M E N T

A.K. SIKRI, J.
                 Leave granted.
In these appeals, the judgment which is  impugned  is  passed  by  the  High
Court of  Punjab  &  Haryana.   The  issue  involved  in  these  appeals  is
identical which pertains to the interpretation that is  to  be  accorded  to
sub-section (10) of Section  11  of  Punjab  General  Sales  Tax  Act,  1948
(hereinafter referred to as the “Act”).  It is  for  this  reason  that  all
these appeals were heard together and can conveniently  be  disposed  of  by
one common judgment.  Since SLP (C) Nos. 21712-21717 of 2009  was  taken  as
the lead case, for understanding the nature of lis  that  is  involved,  the
factual narration can be addressed from the said appeal.
In these appeals, we are concerned with Assessment Years  2000-01,  2001-02,
2002-03 and  2003-04.  Obviously, assessment in respect of these  Assessment
Years was to be made under the said Act.  The assessee had  filed  quarterly
returns in respect of the aforesaid Assessment Years.  In terms  of  Section
11(3) of the Act, time-limit for completing the assessment provided  therein
is three years from the end of the year.  Accordingly, assessments  were  to
be made by 30th April, 2004 for the Assessment  Year  2000-01,  30th  April,
2005 for the Assessment Year 2001-02, 30th April, 2006  for  the  Assessment
Year 2002-03 and 30th April, 2007 for the Assessment Year  2003-04.   It  is
an admitted case that no assessment was made in  respect  of  any  of  these
Assessment Years by the aforesaid stipulated dates.
The Assessing Officer, however, sent notices to the respondent- assessee  in
Form ST-XIV for the aforesaid Assessment Years, i.e., after  the  expiry  of
three years.  The assessee took an objection that these  notices  were  sent
beyond the period of assessment and, therefore, it was not  permissible  for
the Assessing Officer to issue notice after the expiry of  three  years  and
carry on with the assessment proceedings.
We may point out that under Section 11(10) of the Act, the  Commissioner  is
empowered to extend the period of three  years  for  passing  the  order  of
assessment for such further period as he may deem fit,  after  recording  in
writing the reasons for extending  such  period.   When  the  objection  was
taken by the assessee that the notices were  time  barred,  the  Excise  and
Taxation Commissioner, Patiala passed orders dated August 17, 2007  granting
extension of time.  Reason given for extension of time was that the case  of
the assessee for the year 1999-2000 was  pending  with  the  Tribunal.  This
order of extension was challenged by the respondent along with the order  of
assessment  passed  by  the  Assessing  Officer.   The  Tribunal,   however,
dismissed the appeal of the assessee vide  its  orders  September  13,  2007
holding that since there  was  a  power  of  extension  conferred  upon  the
Commissioner under Section 11(10) of the Act, the  Commissioner  was  within
his powers to extend the period.  The contention of the  assessee  was  that
though there was a power of extension, such a power could be exercised  only
within the limitation prescribed.  In other words,  it  was  contended  that
when the normal period of limitation for passing  assessment  order  by  the
Assessing Officer was three years, as per Section  11(3)  of  the  Act,  the
power to extend the period could be exercised  within  the  said  period  of
three years and not after the expiry of limitation  period.   This  plea  of
the assessee was rejected by the Tribunal.
The assessee took up the matter further by filing appeals  before  the  High
Court.  Here, the assessee has succeeded  in  its  submission  as  the  High
Court of Punjab and Haryana vide impugned judgment dated September 26,  2008
has held that once the period  of  limitation  expires,  the  immunity  from
subjecting  itself  to  the  assessment  sets  in  and  the  right  to  make
assessment gets extinguished.  Therefore,  when  the  period  of  limitation
prescribed in the Act for passing the assessment order expires,  thereafter,
the Commissioner is debarred from exercising his  powers  under  sub-section
(10) of Section 11 of the Act and cannot extend  the  period  of  limitation
for the purposes of assessment. This order is assailed  by  the  Revenue  in
the instant appeals before us.
It would also be pertinent to note, at this stage, that  while  arriving  at
the aforesaid conclusion, the Punjab  and  Haryana  High  Court  has  placed
heavy reliance upon the view taken by a Division  Bench  of  Karnataka  High
Court  in  Bharat  Heavy  Electricals  Ltd.  v.  Assistant  Commissioner  of
Commercial  Taxes  (INT-I),  South  Zone,  Bangalore  and  others[1]   which
judgment of Karnataka High Court, in turn, refers to similar view  taken  by
Gujarat High Court in Javer Jivan Mehta v. Assistant Commissioner  of  Sales
Tax (Appeal)[2].   Thus,  three  High  Courts  have  taken  identical  view,
namely,  though power to extend time of three years for a further period  of
passing the assessment is there with the Commissioner, the same  has  to  be
exercised before the  expiry  of  normal  period  of  three  years  and  not
subsequent there to.
As the submissions of the parties on either side would be better  understood
once the relevant statutory provision is noted,  it  would  be  apposite  to
reproduce the provisions of Section 11 of the Act, which are as follows:
“11. Assessment of tax. -  (1)  If  the  Assessing  Authority  is  satisfied
without requiring the presence of dealer or the production  by  him  of  any
evidence that the returns furnished in respect of  any  period  are  correct
and complete, he shall pass an order of assessment  on  the  basis  of  such
returns within a period of three years from the  last  date  prescribed  for
furnished the last return in respect of such period.

(2) If the Assessing  Authority  is  not  satisfied  without  requiring  the
presence of dealer who furnished  the  returns  or  production  of  evidence
that the returns  furnished  in  respect  of  any  period  are  correct  and
complete, he shall serve on such dealer a notice in  the  prescribed  manner
requiring him, on a date and at place specified therein,  either  to  attend
in person or to produce or to cause to be produced  any  evidence  on  which
such dealer may rely in support of such returns.

(3)   On the day specified in the notice or as soon afterwards  as  may  be,
the Assessing Authority shall, after hearing such  evidence  as  the  dealer
may produce, and such other evidence as the Assessing Authority may  require
on specified points, [pass an order of assessment within a period  of  three
years from the last date  prescribed  for  furnishing  the  last  return  in
respect of nay period.]

(4)   If a dealer having furnished returns in respect of a period, fails  to
comply with the terms of notice issued under sub-section (2), the  Assessing
Authority shall,  [within  a  period  of  three  years  from  the  1st  date
prescribed for furnishing the last return in  respect of such  period,  pass
an order of assessment to the best of his judgment.]

(5)   If a dealer does not furnish returns in respect of any period  by  the
last date prescribed the assessing authority shall within a period  of  five
years from the last date prescribed for furnishing the return in respect  of
such period and after giving the dealer a reasonable  opportunity  of  being
heard, pass an order of assessment to the best of his judgment.

(6)   IF upon information which has come into his possession, the  Assessing
Authority is satisfied that any dealer has been  liable  to  pay  tax  under
this Act in respect of any period but has failed to apply for  registration,
the Assessing Authority shall, within five years after the  expiry  of  such
period, after giving the dealer a reasonable  opportunity  of  being  heard,
proceed to access, to the best of his judgment the amount of  tax,  if  any,
due from the dealer in respect of such period  and  all  subsequent  periods
and  in  case  where  such  dealer  has  willfully  failed  to   apply   for
registration, the Assessing Authority may direct that the dealer  shall  pay
by way of penalty, in addition to the amount so  assessed,  in  addition  to
the amount so assessed, a sum not  exceeding  one  and  a  half  times  that
amount.

(7)   The amount of any tax, penalty or interest  payavble  under  this  Act
shall be paid by the dealer in the manner prescribed, by such  date  as  may
be specified in the  notice  issued  by  the  Assessing  Authority  for  the
purpose and the date so specified shall not be less than  fifteen  days  and
not more than thirty days from the date of service of such notice:

Provided that the Assessing Authority may, with the prior  approval  of  the
Assistant Excise and Taxation Commissioner, Incharge of the District  extend
the date of  such  payment  or  allow  payment  by  instalments  against  an
adequate security or bank guarantee.

(8)   If the tax assessed under this Act or any instalment  thereof  is  not
paid b y any dealer within the time  specified  thereof  in  the  notice  of
assessment  or  in  the  order  permitting  payment  in  installments,   the
Commissioner or any other person appointed to assist him  under  s9b-section
(1) of Section 3 may, after giving  such  dealer  an  opportunity  of  being
heard, impose on him a penalty not exceeding in  amount  the  sum  due  from
him.

(9)   Any assessment made under this section shall be without  prejudice  to
any penalty imposed under this Act.

(10)  The Commissioner, may for reasons to be recorded in  writing,  extends
the period of three years, for passing the  order  of  assessment  for  such
further period as he may deem fit.

(11)  Where the proceedings of assessment are stayed  by  an  order  of  any
court, the period for which such stay remains  in  force,  shall  not  count
towards computing the period of three years  specified  under  this  section
for passing the order of assessment.

(12)  The assessing authority may on his own motion, review  any  assessment
order passed by him and such review shall be completed within  a  period  of
one year from the date of order under review.”
                                                         (emphasis supplied)


A mere reading of  the  aforesaid  provision  would  reflect  that  wherever
return is filed by the assessee, assessment is to be made  within  a  period
of three years from the last date prescribed for furnishing  the  return  in
respect of such period. On the other hand, in those cases  where  return  is
not filed or any dealer, who is liable to pay the tax under  the  Act,  does
not get himself registered therein, the period of assessment  prescribed  is
five years.  We are not concerned with the alternate  situation  as  in  the
instant appeals not only the assessees  are  registered  dealers,  they  had
also filed  their  returns  regularly  within  the  prescribed  period  and,
therefore, assessments were to be completed within a period of  three  years
from the last date prescribed for  furnishing  the  returns,  which  is  the
normal period prescribed.  At the same time, sub-section (10) of Section  11
gives power  to  the  Commissioner  to  extend  a  period  of  three  years.
Interestingly, there is no upper limit prescribed for which the  period  can
be extended, meaning thereby such an extension can be given,  theoretically,
for any  length  of  time.   This  discretion  is,  however,  controlled  by
obligating the Commissioner to give his  reasons  for  extension,  and  such
reasons are to be recorded in writing.  Obviously,  the  purpose  of  giving
reasons in writing is to ensure that the  power  to  extend  the  period  of
limitation is exercised for valid reasons based on  material  considerations
and that power is not abused by exercising it  without  any  application  of
mind, or mala  fide  or  on  irrelevant  considerations  or  for  extraneous
purposes. Such an  order  of  extension  of  time,  naturally,  is  open  to
judicial review, albeit within the confines of law on  the  basis  of  which
such judicial review is permissible.
Be that as it may, the question before us is as  to  whether  the  power  to
extend time is to be necessarily exercised before the normal expiry  of  the
said period of three years run out.
Mr. Ganguli, submitted that there is no such embargo or impediment  provided
in sub-section (10) of Section 11 mandating  the  Commissioner  to  pass  an
order of extension necessarily within the normal period of three  years.  He
submitted that the word used in the aforesaid provision 'extension' of  time
is in contradistinction  to  the  word  'deferment'  which  appears  in  the
Karnataka Legislation. On that basis, he argued that  it  was  inappropriate
on the part of the High Court to refer to and  rely  upon  the  judgment  of
Karnataka  High  Court  inasmuch  as  provision  of  law  contained  in  the
Karnataka Sales Tax Act is entirely different.  He  further  submitted  that
since in Punjab Legislation, the expression used  is  'extension  of  time',
the Court was required to construe the provision keeping in  mind  the  said
language.  Mr. Ganguli argued  that  a  reading  of  meaning  of  expression
'deferment' and 'extension' of time as contained in Black's  Law  Dictionary
will clearly bring out the difference.
“defer, vb. 1. To postpone; to delay <to defer taxes to another year>”
“deferment, n.  1.  The  act  of  delaying;  postponement  <deferment  of  a
judicial decision>”

                  It  was  submitted  that  the  expressions   'defer'   and
'deferment' as can be seen from the above definitions,  clearly  contemplate
postponement, which presupposes that the time  period  originally  fixed  is
not extinguished.  In other words, an action, which is  deferred,  (i.e.  an
action which is required to be completed within a specified time frame)  can
only be deferred of which the time so fixed has not expired.
                 It was submitted that, in contrast, Black's Law  Dictionary
defines the expression 'extension' as follows:
      “Extension, n. 3. Tax. A period of additional time to file an  income-
tax return beyond its due date.  4. A period of additional time to  take  an
action, make a decision, accept an offer, or complete a task”

                  It  was  argued  that  the  word  'extension  has'  varied
meanings, dependent on the context in which  it  is  used.   The  expression
'extension' in the context of surveillance orders, has been  interpreted  in
the following manner:
“Where surveillance pursuant to order issued  under  Title  III  of  Omnibus
Crime  Control  and  Safe  Streets  Act  is  of  same   premises,   involves
substantially same persons, and is part of same investigation, second  Title
III  surveillance  order  issued  after  expiration  of   first   order   is
'extension' of first  order  for  purposes  of  requirement  of  sealing  of
recordings, even if there is gap of time  in  between  expiration  of  first
order             and             entry             of              second.”
(Emphasis supplied)



Mr. Ganguli also referred to the concept of  extension  as  incorporated  in
Section 148 of the Code of  Civil  Procedure,  1908.   He  relied  upon  the
judgment of this Court in D.V. Paul v. Manisha  Lalwani[3].  This  Court  in
paragraph 26 of the said judgment held as under:
“26. Insofar as the first aspect  is  concerned  Section  148  CPC,  in  our
opinion, clearly reserves in favour of the court the power  to  enlarge  the
time required for doing an act prescribed or allowed by the  Code  of  Civil
Procedure.  Section 148 of the Code may at this stage be extracted.

“148.  Enlargement of time.— Where any period is fixed  or  granted  by  the
court for the doing of any act prescribed  or  allowed  by  this  Code,  the
court may, it its discretion, from time to time,  enlarge  such  period  not
exceeding thirty days in total, even though the period originally  fixed  or
granted may have expired.”

A plain reading of the above would show that when  any  period  or  time  is
granted by the court for doing any act, the court has  the  discretion  from
time to time to enlarge such period even if the  time  originally  fixed  or
granted by the court has expired.  It is evident from the language  employed
in the provision that the power given to  the  court  is  discretionary  and
intended to be exercised only to meet the ends of justice.”

Mr. Ganguli further submitted that even in the context of  taxation  law,  a
similar reasoning has been adopted by the Court in  Commissioner  of  Income
Tax, Jullundur v. Ajanta Electricals[4]. While interpreting  Section  139(2)
of the Income Tax Act, which empowered the Assessing  Officer  to  grant  an
extension of time for filing of the return of income,  upholding  the  power
of the Income Tax Officer to extend the time for filing of  the  Income  Tax
return by the  assessee  even  after  the  expiry  of  the  time  originally
granted, this Court held as follows:“
“9. In this context, the question whether a  belated  application  could  be
regarded as valid or not has to be considered. As  rightly  pointed  out  by
the Punjab and Haryana High Court while deciding these cases  under  Section
256(2) and by the Calcutta High Court in Sunderdas  Thackersay  &  Bros.(137
ITR 646), there are no words of limitation in Section 139(2) to  the  effect
that no application could be filed after the period allowed had expired.  As
we have stated earlier, it was a procedural provision. The limit  of  thirty
days was not intended to be final as discretion was  given  to  the  ITO  to
extend that date. The ITO could have  been  called  upon  to  exercise  that
discretion for proper reasons. No fetters were placed  upon  the  discretion
of the ITO as regards the number of times he could extend the  date  or  the
period  for  which  he  could  extend  it.  It  is  conceded  that  repeated
applications could be made within the time allowed, in  view  of  the  clear
indication to that effect in Form No. 6, by the use of  words  “it  has  not
been possible”. If it was intended that the  application  for  extension  of
time under Section 139(2) was to be made within the time allowed  originally
or within the extended time then the words “it has not been  possible”  were
not at all necessary and the words “it is  not  possible”  would  have  been
sufficient. Though the rule cannot affect,  control  or  derogate  from  the
section of the Act, so long as it does not have that effect, it  has  to  be
regarded as having the same force as the section  of  the  Act.  If  Section
139(2) is read along with Rule 13 and Form No. 6 it becomes  clear  that  an
application for extension could  be  made  even  after  the  period  allowed
originally or as a result of extension granted had expired. Keeping in  mind
the object of giving discretion to the ITO and the  consequences  that  were
to follow from not filing the return within time, we  see  no  justification
for  reading  into  the  section  any  limitation  to  the  effect  that  no
application could be made after the time allowed  had  expired.  We  see  no
good reason to construe the section so narrowly.”
                                                         (emphasis supplied)

                 In that judgment,  applying  the  principles  contained  in
Section 148, CPC, it was remarked as under:
“10. We cannot accept the contention raised on behalf of  the  Revenue  that
the word ‘extend’ in the proviso to Section 139(2) implies that at the  time
of making the application the time allowed should not have  expired.  Though
the Civil Procedure Code by itself does not apply to the  proceedings  under
the Income Tax Act, we see no reason why a principle  of  procedure  evolved
for doing justice to a party to the proceeding cannot be called  in  aid  to
while interpreting a procedural provision contained in the Act. Section  148
of the Code provides that where any period is fixed or granted by the  court
for the doing of any act prescribed or allowed by the Code, the  court  may,
in its discretion, from time to time, enlarge such period, even  though  the
period originally fixed or granted may have expired. Various situations  can
be envisaged where a party to the proceeding is prevented  by  circumstances
beyond his control from doing the required act within the fixed period.  The
assessee may be able to point out that because of  a  sudden  death  in  the
family or because of his sudden illness of a serious nature  or  because  he
had to leave for an outside place all of a sudden or because  he  could  not
return from outside in  spite  of  his  best  efforts,  or  for  other  good
reasons, as the case may be, he was not  able  to  file  the  return  within
time............”
                                   [Emphasis supplied]


Mr. Ganguli also drew sustenance from the Arbitration Act, 1940  which  gave
power to the Court to extend time.  It was submitted  that  this  Court  has
held  in  the  matter  of  Hindustan  Steelworks  Construction  Ltd.  v.  C.
Rajasekhar Rao[5] that the Court has got  the  power  to  extend  time  even
after the award has been given or after the expiry of the period  prescribed
from the award.
Mr. Ganguli re-emphasised that reliance upon the decision  of  Gujarat  High
Court in the impugned judgment was untenable as the provisions of  Karnataka
Sales Tax Act are  totally  different  inasmuch  as  Section  12(6)  of  the
Karnataka Act  provided  only  'deferment'.   He  submitted  that  even  the
judgment  of  Gujarat  High  Court  in   Javer   Jivan   Mehta2   case   was
distinguishable since that was also a case of exclusion of a period and  the
issue therein was the computation of period of limitation.
The aforesaid contentions were refuted by the learned counsel  who  appeared
for assessees in these appeals.  It was submitted that sub-section  (10)  of
Section 11 states, in no uncertain term, that the assessment order is to  be
passed 'within a period of three years......'. It was  emphasised  that  the
word 'within' was of significance.  It was pointed out that before the  year
1998, no period of limitation was prescribed and such a  provision  came  to
be inserted by way of amendment vide Act No. 12  of  1998  dated  April  20,
1998 .  It was further argued that sub-section (10) of Section 11  obligates
the Commissioner to record reasons in writing while  extending  the  period.
It was submitted that this requirement of recording of reasons came  up  for
consideration before Punjab  &  Haryana  High  Court  and  in  a  series  of
judgments, it is held that such an order of extension of time can be  passed
only after giving an opportunity of hearing to the  assessee.   The  learned
counsel referred to the following judgments of the High Court:
(i)   State of Punjab, Through Assistant Excise and  Taxation  Commissioner,
Bathinda v. M/s. Olam Agro India Ltd. (formerly  Olam  Export  India  Ltd.);
decided by the Punjab & Haryana High Court on August 20, 2013.

      (ii)  State of Punjab v. M/s.  Olam  Agro  India  Ltd.;  Daily  Order;
Dismissed by the Supreme Court vide Oder dated May 08, 2015.

      (iii) A.B. Sugars Limited v. The State of Punjab and  others;  Decided
by the Punjab & Haryana High Court on September 01, 2009.

It was also  argued  that  conceptually  there  was  no  difference  between
'deferment' and 'extension' insofar as it  related  to  the  issue  at  hand
which is concerned with the point  of  time  at  which  Commissioner  is  to
exercise his powers.  For that, the reasons given by  Karnataka  High  Court
as well as Gujarat High Court holding that such a  power  gets  extinguished
with the expiry of normal period of limitation  prescribed  and,  therefore,
cannot be exercised after the limitation period were  germane  and  relevant
while construing the provisions of sub-section (10) of  Section  11  of  the
Act as well and, therefore, those cases were  rightly  relied  upon  by  the
High Court in the impugned judgment.
In rejoinder, Mr. Ganguli refuted the aforesaid submissions of  the  learned
counsel for the assessees.  The arguments  advanced  by  him  was  that  the
submission  of  the  assessees  that  the  Commissioner  has  to  afford  an
opportunity of  hearing  to  the  dealer  before  extending  the  period  of
limitation does not arise in the present case as  this  was  not  the  issue
raised in the Courts below.  He argued that the question to  be  decided  in
these appeals was as to whether the power under sub-section (10) of  Section
11 of the Act could be exercised on the expiry of the period of three  years
and this question is not answered  in  the  judgments  referred  to  by  the
opposite party.  He further submitted that it is a question of  fact  to  be
decided in each case as to whether assessee was entitled to such a right  of
hearing and, therefore, this issue could not be taken up for the first  time
in these appeals.
We have bestowed our serious considerations to the submissions made  by  the
counsel who argued the matter.
We may say at the outset that  though  provisions  of  the  Punjab  Act  are
couched in different  language  from  Karnataka  Act  or  Gujarat  Act,  the
essence of these provisions is same.  As noticed above,  insofar  as  scheme
of Punjab Act is concerned, the assessment order is to  be  normally  passed
within a period of three years.  At the same time, power  is  given  to  the
Commissioner under Section 11(10) of the Act to extend the  said  period  of
three years.  Once such an extension is given,  the  order  is  passed  even
beyond the period of three years.  Significantly, no upper  limit  is  fixed
while giving such extension which means that the power can be exercised  for
extending the period  for  any  length  of  time,  subject  however  to  the
condition that the Commissioner is bound to record  the  reasons  justifying
such an extension.  Obviously, when the Commissioner passes  such  an  order
and give reasons, not only he would have to justify his action of  extending
time but also the period by which the time is extended.   In  the  Karnataka
Legislation, the power is of 'deferment'.  In that Legislation as well,  the
Assessment Order is to be passed within three years as  sub-section  (5)  of
Section 12 of Karnataka Sales Tax Act stipulates that  no  assessment  shall
be made after a period of three years from the  date  on  which  the  return
under sub-section (1) of that order is submitted by a dealer subject to  two
provisos mentioned therein.  Sub-section (6) of Section 12  mentions  as  to
how the period of limitation is to be computed and reads as under:
“(6)  In computing the  period  of  limitation  for  assessment  under  this
Section,-

(a)  the time during which the proceedings for assessment in  question  have
been deferred on account of any stay order  granted  by  any  Court  or  any
other authority shall be excluded;

(b)  the time during which the assessment has been deferred in any  case  or
class of cases by the Joint Commissioner  for  reasons  to  be  recorded  in
writing shall be excluded.”


Clause  (b)  of  sub-section  (6)  indicates  that  Joint  Commissioner,  in
appropriate cases, may pass an order for deferment of  Assessment  Order  to
be passed by the Assessing Authority and once such an order is passed,  that
period has not to be counted  while  computing  the  period  of  limitation.
Significantly, this  provision  also  mandates  the  Joint  Commissioner  to
record  reasons  for  deferring  the  orders  of  assessment.   In  essence,
therefore, the purport and objective behind the provisions in Punjab Act  as
well as in  Karnataka  Act  remains  the  same.   By  making  any  order  of
deferment under sub-section (6) of Section 12 of Karnataka  Sales  Tax  Act,
the Joint Commissioner is, in fact, achieving the same purpose  of  granting
more time to the Assessing Officer to pass the Assessment  Order.   Same  is
the purpose behind sub-section (11) of Section 10  of  the  Punjab  Act.  In
view thereof, it may not be appropriate to go into the  nuanced  distinction
between  “deferment”  and  “extension”  as  per  the  definitions  contained
Black's Law Dictionary in the given situation, which is dealt  with  in  the
instant appeals.

Even otherwise, it is important to understand the ratio  laid  down  in  the
judgment of Karnataka High Court in Bharat Heavy Electricals  Ltd.  (supra).
The issue in the said case  before  the  Karnataka  High  Court  was  as  to
whether the power to pass a deferment order is to be  exercised  even  after
the expiry of the period of limitation which was answered in  the  negative.
The reasons given in support of this conclusion are as follows:
“...Deferment of assessment has  the  effect  of  enlarging  the  period  of
limitation which  did  not  expire  by  the  time  the  deferment  order  is
contemplated to be passed.  When once the period of limitation expires,  the
immunity against being subject to assessment sets in and the right  to  make
assessment gets extinguished.   Resort  to  deferment  provisions  does  not
retrieve the situation.  There is no question of deferring assessment  which
has already become time-barred.  The provision  for  exclusion  of  time  in
computing the period of limitation of deferment of assessment  is  meant  to
prevent further running of time against the Revenue if  the  limitation  had
not expired.”
                                                         (emphasis supplied)

It was also observed that  upon  the  lapse  of  the  period  of  limitation
prescribed,  the  right  of  the  Department  to  assess  an  assessee  gets
extinguished and this  extension  confers  a  very  valuable  right  on  the
assessee.
If one is to go by the aforesaid dicta, with which we  entirely  agree,  the
same shall apply in the instant cases  as  well.   In  the  context  of  the
Punjab Act, it can be said that extension of time  for  assessment  has  the
effect of enlarging the  period  of  limitation  and,  therefore,  once  the
period  of  limitation  expires,  the  immunity  against  being  subject  to
assessment sets in and the  right  to  make  assessment  gets  extinguished.
Therefore, there would be no question of extending the time  for  assessment
when the assessment has already become time barred.  A  valuable  right  has
also accrued in favour  of  the  assessee  when  the  period  of  limitation
expires.  If the Commissioner is  permitted  to  grant  the  extension  even
after the expiry of original period of limitation prescribed under the  Act,
it will give him right to exercise such a power at any time even much  after
the last date of assessment.  In the instant appeals itself, when  the  last
dates of assessment were 30th April, 2004, 30th  April,  2005,  30th  April,
2006 and 30th April, 2007, order extending the time under Section 11(10)  of
the Act were passed on August 17, 2007, August 17,  2007,  August  17,  2007
and May 25, 2007 respectively.  Thus, for  the  Assessment  Year  2000-2001,
order of extension is passed more than three years after the last  date  and
for the Assessment Year 2001-2002, it is more than two years after the  last
date.  Such a situation cannot be countenanced as rightly held by  the  High
Court.  When the last date of assessment  in  respect  of  these  Assessment
Years expired, it vested a valuable right in the assessee  which  cannot  be
lightly taken away.  As a consequence, sub-section (11) of  Section  10  has
to be interpreted in the manner which is  equitable  to  both  the  parties.
Therefore, the only way to interpret the same is that by holding that  power
to extend  the  time  is  to  be  exercised  before  the  normal  period  of
assessment expires. On the aforesaid interpretation, other arguments of  Mr.
Ganguli lose all significance.  Argument of learned senior counsel  for  the
appellants based on Section 148 of the  CPC  would  be  of  no  consequence.
This Section categorically states that power to enlarge the  period  can  be
exercised  even  when  period  originally  fixed  has  expired.    Likewise,
reliance upon Section 139(2) of the Income Tax Act  is  misconceived.   That
provision is made for  the  benefit  of  the  assessee  which  empowers  the
Assessing Officer to grant an extension of time for filing of the return  of
income and, therefore, obviously will have no bearing on the issue at  hand.
 Moreover, this Court  in  Ajantha  Electricals's  case  (supra),  which  is
relied upon by the learned counsel for the appellant,  held  that  the  time
can be extended even after the time allowed originally has  expired  on  the
interpretation of the words “it has not been possible” occurring in  Section
133(2) of the Act.  The Court, thus, opined that  the  aforesaid  expression
would  mean  that  the  time  can  be  extended  even  after  original  time
prescribed in the said provision has expired.  Same is  our  answer  to  the
argument of Mr. Ganguli predicated on Section 28  of  the  Arbitration  Act,
1940 as that provision was in altogether different context.
We, thus, do not find any error in the  impugned  judgments  of  Punjab  and
Haryana High  Court  and  as  a  consequence,  dismiss  all  these  appeals.
Parties are, however, left to bear their own cost.

                           .............................................CJI.
                                                               (T.S. THAKUR)



                          ................................................J.
                                                                (A.K. SIKRI)



                          ................................................J.
                                                              (R. BANUMATHI)


NEW DELHI;
MARCH 04, 2016.
-----------------------
[1]   (2006) 143 STC 10
[2]   (1998) 111 STC 199
[3]   (2010) 8 SCC 546
[4]   (!994) 5 SCC 182
[5]   (1987) 4 SCC 93