LawforAll

advocatemmmohan

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

Just for legal information but not form as legal opinion

WELCOME TO MY LEGAL WORLD - SHARE THE KNOWLEDGE

Saturday, July 2, 2016

grant of parole.= It has been clearly stated in the impugned order that the convict was involved in disruptive activities, criminal conspiracy, smuggling of arms, ammunitions and explosives and further he had also been involved in various other activities. It has also been mentioned that the prisoner under disguise of common name used to purchase vehicles for transportation and his conduct showed that he had wide spread network to cause harm and create disturbance to National Security. Because of the aforesaid reasons remission was declined. In such a fact situation, the view expressed by the High Court to consider the case on the basis of the observations made by it in the judgment is not correct.- In Sunil Fulchand Shah v. Union of India and others[26] the Constitution Bench while dealing with the grant of temporary release or parole under Section 12(1) and Section 12(1-A) of the Conversation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA Act) had observed that the exercise of the said power is administrative in character but it does not affect the power of the High Court under Article 226 of the Constitution. However, the constitutional court before directing the temporary release where the request is made to be released on parole for a specified reason and for a specified period should form an opinion that request has been unjustifiably refused or where the interest of justice warranted for issue of such order of temporary release. The Court further ruled that jurisdiction has to be sparingly exercised by the Court and even when it is exercised, it is appropriate that the Court should leave it to the administrative or jail authorities to prescribe the conditions and terms on which parole is to be availed of by the detenu. It is well settled in law that a Judge is expected to act in consonance and accord with the legal principles. He cannot assume the power on the basis of his individual perception or notion. He may consider himself as a candle of hope but application of the said principle in all circumstances is not correct because it may have the effect potentiality to affect the society. While using the power he has to bear in mind that “discipline” and “restriction” are the two basic golden virtues within which a Judge functions. He may be one who would like to sing the song of liberty and glorify the same abandoning passivity, but his solemn pledge has to remain embedded to constitution and the laws. There can be deviation. Consequently, the appeal is allowed and the impugned judgment and order of the High Court is set aside and liberty is granted to the first respondent to submit a representation/application before the competent authority of the Union of India within a period of eight weeks and the authority shall consider the same as expeditiously as possible in accordance with law and the guidelines framed for premature release.

                                 REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

                      CRIMINAL APPEAL NO.  171  OF 2016
                   (@ S.L.P. (Criminal) No. 7701 of 2012)


State of Gujarat & Anr.                        …Appellant(s)

                                  Versus

Lal Singh @ Manjit Singh & Ors.                 …Respondent(s)


                               J U D G M E N T

Dipak Misra, J.

        The present appeal,  by  special  leave,  is  directed  against  the
judgment and order dated August 23, 2012 passed by the High Court of  Punjab
and Haryana at Chandigarh  in  Criminal  Writ  Petition  No.  1620  of  2011
whereby the High Court entertaining the Writ Petition had  opined  that  the
order dated 26.07.2011 passed by the  Government  of  Gujarat  declining  to
grant the benefit of premature release to the  first  respondent  herein  is
illegal and further directed the State Government  to  reconsider  his  case
and take a fresh decision in the  light  of  the  discussions  made  in  the
impugned order and further to release him on parole for a  period  of  three
months on furnishing personal bond/security bond for a sum of  Rs.  50,000/-
to the satisfaction of the concerned Jail Superintendent.

2.    The facts which  are  essential  to  be  stated  are  that  the  first
respondent along with 20 other accused was tried in TADA Cases Nos. 2, 7  of
1993 and 2 of 1994.  The Designated Judge, Ahmedabad  (Rural)  at  Mirzapur,
Ahmedabad convicted the first respondent and some others  for  the  offences
punishable under Section 3(3) of the  Terrorist  and  Disruptive  Activities
(Prevention) Act, 1987 (for short, “the TADA Act”) and sentenced  to  suffer
life imprisonment and to pay a fine of Rs. 10,000/- each and in  default  to
suffer RI for 6 months; under Section 120-B(1) IPC sentenced  to  suffer  RI
for 10 years and to pay a fine of Rs. 5,000/- each, in default to suffer  RI
for 3 months;  under Section 5 of the TADA  Act  sentenced  to  suffer  life
imprisonment and to pay a fine of Rs. 10,000/- and in default  to suffer  RI
for 6 months; under Section 5 of the Explosive Substances Act to pay a  fine
of Rs. 5,000/- and in default to undergo RI  for  3  months;  under  Section
25(1-A) of the Arms Act sentenced to suffer RI for 7  years  and  to  pay  a
fine of Rs. 5,000/- and, in default, to  suffer  RI  for  3  months.  Be  it
stated, he was also convicted for the offence punishable under Section  3(3)
of the TADA Act read with Section 120-B IPC but  no  separate  sentence  was
awarded. All the sentences were directed to run concurrently.

3.    The first respondent preferred Criminal Appeal No.  219  of  1997  and
the said appeal  was  heard  along  with  the  appeals  preferred  by  other
convicts.  This Court in Lal  Singh  v.  State  of  Gujarat  and  another[1]
scrutinized the evidence in  detail  and  ultimately  dismissed  the  appeal
preferred by the first respondent and  confirmed  the  conviction   and  the
sentence as imposed by the learned Judge, Designated Court.

4.    During the pendency of the criminal  appeal  before  this  Court,  the
first respondent sought transfer from the Central Prison, Ahmedabad  to  the
Central Prison, Jalandhar on the ground that his family is based in  Punjab;
his old parents were suffering from number  of  ailments;  and  further  the
financial condition of the family was precarious.  Considering  the  reasons
ascribed in the  representation,  the  State  Government  vide  order  dated
11.11.1998 consented to transfer the first respondent from  Central  Prison,
Ahmedabad to the Central Prison, Jalandhar.  A condition was  stipulated  by
the  State  of  Gujarat  that  tight  security  and  proper  police   escort
arrangement was to be ensured.

5.    The first respondent on  19.01.2004  sought  premature  release  under
Section 432 of the Code of Criminal Procedure, 1973  (CrPC)  on  the  ground
that he would complete 14 years of actual sentence  in  jail.    His  prayer
for premature release was considered  by  the  competent  authority  of  the
State of Gujarat which vide order dated 26.10.2006 considering the over  all
aspects of the matter rejected the said application.   The  said  order  was
assailed in Criminal Writ Petition No. 505 of 2007 before the High Court  of
Punjab and Haryana which vide order dated 25.08.2008 disposed  of  the  Writ
Petition with the direction to the State of Gujarat to reconsider  the  case
of the first respondent for premature release considering the  applicability
of Section 433 CrPC, Section 3 of the  Transfer  of  Prisoner  Act  and  the
decision in State of Haryana v. Mahender Singh[2].

6.    Keeping in view  the  order  passed  by  the  High  Court,  the  State
Government considered the prayer  of  the  first  respondent  for  premature
release on 06.03.2009 and considered all aspects that have to be taken  note
of as per the direction of the High Court along with all other  factors  and
the decisions in U.T. Chandigarh v. Charanjit Kaur[3]  and Laxman Naskar  v.
State of West Bengal[4]   and  eventually  rejected  the  application.   The
grievance of rejection compelled the first  respondent  to  prefer  a  Misc.
Criminal Application No. 6515 of 2009 before the  Punjab  and  Haryana  High
Court which was eventually withdrawn vide order dated 16.03.2009 wherein  it
was observed that it was  open  to  the  said  respondent  to  approach  the
concerned authority.  The order dated 06.03.2009  was  again  challenged  in
Special Criminal Application No. 1274 of  2009  under  Article  226  of  the
Constitution of India which was dismissed by the High Court.

7.    Remaining indefatigable the first  respondent preferred Writ  Petition
No.  677 of 2010 praying for a writ of habeas corpus on the ground  that  he
had already  suffered  requisite  period  of  sentence  and  hence,  he  was
entitled to be released as per Sections 432, 433 and  433-A  CrPC  and  para
431 of the New Punjab Jail Manual.  A  grievance  was  put  forth  that  his
representation had not  been  considered   by  the  State  Government.    On
20.04.2010, the High Court  disposed  of  the  matter  directing  the  State
Government to pass a speaking order within a period of two  months.   Be  it
stated, when the High Court passed the said order, it had not issued  notice
to the State of Gujarat.  However, regard being had to the direction  issued
by  the  High  Court,  the  competent  authority  took  up  the  matter  for
reconsideration  and  after  obtaining  the  opinion  from  the  appropriate
quarters as required under the manual,  the  State  Government  declined  to
grant  premature  release  to  the  first  respondent   vide   order   dated
30.12.2010.   The said order was assailed before  the  High  Court  in  Writ
Petition No. 158 of 2011  and the High Court vide judgment and  order  dated
25.05.2011 directed the State to reconsider  the  premature  release  taking
note of the actual sentence of 14 years and three months and  more  than  21
years  including  remission.   The  High  Court  had  directed   the   first
respondent  to  be  released  on  parole  subject  to  certain   conditions.
Pursuant to the order passed by the High Court, the  State  Government  took
up  the  case  for  reconsideration  and  keeping  in  view  the   statutory
provisions of CrPC, Rule No. 1448  of the Bombay Jail Manual  which  governs
the State of Gujarat, the opinion of the advisory board and keeping in  view
the number of cases the first respondent was really  involved,  the  gravity
and nature of the crime and its impact  on  the  society,  it  rejected  the
proposal for release vide order dated 26.07.2011.

8.    Being aggrieved by the aforesaid order, the first  respondent  invoked
the jurisdiction of the High Court under Article 226 of the Constitution  of
India.  It was contended on behalf of  respondent  No.  1  before  the  High
Court that provisions of Punjab Jail Manual,  1996  are  applicable  to  him
since he had been transferred to the State of Punjab as per the Transfer  of
Prisoners Act, 1950 and as there had been a recommendation by the  competent
authority under the Punjab Jail Manual that he was entitled to  the  benefit
of the premature release but the same has been  declined  by  the  State  of
Gujarat and hence, the whole action was arbitrary and illegal.  It was  also
urged that as per the Bombay Jail Manual which is  applicable  in  State  of
Gujarat, he was also  entitled  to  premature  release  as  he  had  already
undergone more than 14 years of sentence.  It was also argued  that  refusal
to entertain the prayer for premature release was contrary  to  the  concept
of Article 21 of the Constitution and, therefore, the order  passed  by  the
State Government was non est in law.

9.    The stand of the first respondent was controverted  by  the  State  of
Gujarat contending, inter alia, that the recommendations  of  the  competent
authority under the Punjab Jail Manual are not binding on it  which  is  the
sole authority to decide the matter relating to premature release; that  the
High Court of Punjab and Haryana had no jurisdiction  to  issue  a  writ  of
habeas corpus; that the factual background as depicted by the State  do  not
make out a case for premature release and, therefore, the Court  should  not
exercise its extra ordinary jurisdiction on the said  score.   It  was  also
contended that the first respondent having acceded to the earlier orders  of
rejection by the High Court, was debarred  from  approaching  the  Court  in
subsequent petitions.

10.   The learned single Judge posed five questions for consideration.  They
read as under:-

“i) Which is the appropriate Government empowered to consider  the  case  of
premature release of the petitioner?

ii) Whether earlier dismissal of the petition for  premature  release  by  a
High Court operates as  bar  and  estoppels  to  the  filing  of  subsequent
petitions?

iii) Whether the High Court where prisoner is transferred  has  jurisdiction
to entertain the criminal writ petition?

iv) Whether non-release of a  convict  is  worse  sanction  than  the  death
sentence, resultant encroachment upon the life and personal liberty  by  the
executive?

v) Whether order dated 26.07.2011 is  subject  to  judicial  review  and  is
arbitrary, whimsical and  against  the  provisions  of  Article  21  of  the
Constitution of India?”

11.   Answering the first question, the High  Court  held  that  it  is  the
Government of Gujarat which is the appropriate Government  for  passing  the
order with regard to premature release to the first  respondent.   Answering
the question No. 2, the High Court opined  that  dismissal  of  the  earlier
petitions did not operate as a bar  to  file  fresh  petition  nor  do  they
operate as estoppel when fresh cause of action  arises.   Dealing  with  the
third facet,  the  High  Court  opined  that  it  had  the  jurisdiction  to
entertain the Writ Petition keeping  in  view  the  ambit  and  scope  under
Article 226 of the Constitution.  While dealing with  question  No.  4,  the
High Court referred to Universal Declaration of Human Rights, Article 21  of
the Constitution, the view expressed by this Court in Santa Singh  v.  State
of Punjab[5], Kuljeet Singh v. Lt. Governor  of  Delhi[6],  Kehar  Singh  v.
Union of India[7], Mahender Singh (supra), Mohd. Munna  v.  Union  of  India
and others[8] and certain other authorities and came to hold thus:-

“In the light of the above  discussions,  facts  and  circumstances  of  the
cases in hand, the arguments of the counsel for the  Government  of  Gujarat
that life imprisonment means natural life of the  prisoner  is  against  the
provisions of the Constitution and the International Human Rights  Documents
and will amount to arbitrary  exercise  of  power  rejecting  the  premature
release  of  petitioners.  I  have  no   doubt   that   indeterminate   life
imprisonment  and non-release of a convict  –  prisoner  is  worse  sanction
than the death sentence, resultant encroachment upon the life  and  personal
liberty by the executive.  A barbaric crime does not have to be met  with  a
barbaric penalty which may upset the mental balance  of  a  person  who  may
realize that he will never be out of prison.  The  reasonable  determination
period of imprisonment with regard to offences where life  imprisonment   is
provided is a necessity and call for appropriate amendment  for  prescribing
determinate punishment keeping in view the gravity  of  the  offence.   This
Court feels that it is the primary obligation of the  Legislature  to  carry
out necessary amendments in  the  cases  where  imprisonment   for  life  is
provided to make aware the  convict/prisoner  how  much  period  he  has  to
undergo in prison.  Otherwise, the approach of  reformative,  rehabilitative
and corrective system will be only a futile  exercise.  Otherwise  also,  to
keep a prisoner behind bars is a financial burden  on  the  State  exchequer
and for that reason it is imperative to fix some determinate  punishment  by
making amendments.”

12.   While adverting to the fifth issue, the High  Court  referred  to  the
decisions in Kehar Singh (supra), the Constitution Bench  decision  in  Maru
Ram v. Union of India and others[9] and Swaran Singh v. State  of  U.P.  and
others[10] and came to hold that the power of judicial review of  the  order
passed by the President or the Governor under Article 72 or Article  161  is
available on limited grounds.  Thereafter the High  Court  opined  that  the
State  of  Gujarat  while  considering  the  representation  of  the   first
respondent seeking premature release had not taken  into  consideration  the
reports of the District Magistrate and the Senior Superintendent of  Police,
Kapurthala as well as the Superintendent Maximum Security Jail, Nabha  where
the  first  respondent  was  undergoing  the  sentence  and  no  reason  for
discarding such reports had been ascribed.  The High  Court  further  opined
that it is not recorded in the order how the Advisory Committee  of  Gujarat
has come to a conclusion for not recommending the case of premature  release
of the first  respondent.    That  apart,  it  has  been  observed  that  no
evidence or material  had  been  placed  before  the  Court  to  reject  the
recommendations of the transferee State, that is, the Government of  Punjab.
  Thereafter, the learned single Judge proceeded to state thus:-

“… The petitioner more than 20 years had never been in the  jurisdiction  of
District Magistrate and District Superintendent of Police of  the  concerned
District of Gujarat, how their reports  can  outweigh  the  reports  of  the
transferee State.  The  absence  of  obligation  to  convey  reason  to  the
petitioner for rejecting the recommendations of the State  of  Punjab  where
the petitioner permanently resides does not mean that there  should  not  be
legitimate  and  relevant  reasons   for   passing   order   of   rejection.
Furthermore, no such material has been placed on  the  paper  book  nor  any
record has been shown to the Court which had formed the basis for  rejecting
the claim of the petitioner.  The obligation to supply reasons  is  entirely
different to apprise the Court about the reason  for  the  action  when  the
same is challenged in Court…”

13.    Eventually,  the  High  Court  directed  to  reconsider   the   first
respondent’s representation in the light of  the  discussion  made  in  that
order and further to release him forthwith on parole for a period  of  three
months.  The said order is the subject matter of assail in  this  appeal  by
special leave.

14.   We have heard Mr. D.N. Ray and Ms.  Hemantika  Wahi,  learned  counsel
for the State of Gujarat, Ms. Sunita Sharma, learned counsel for  the  first
respondent and Mr. V. Madhukar, learned Additional Advocate General for  the
State of Punjab.

15.   To appreciate  the  controversy  specially  in  the  backdrop  of  the
judgment delivered by the High Court, it is necessary  to  restate  the  law
pertaining  to  sentence  of  imprisonment  for  life  and  the  concept  of
remission as envisaged under CrPC.

16.   In State of Madhya Pradesh v. Ratan Singh and others[11]  a  two-Judge
Bench speaking through Fazal Ali, J., after adverting  to  the  decision  in
Gopal Vinayak Godse v. State of Maharashtra[12] and other decisions and  the
provisions of CrPC, has opined that that  a  sentence  of  imprisonment  for
life does not automatically expire at the end  of  20  years  including  the
remissions, because the administrative rules framed under the  various  Jail
Manuals or under the Prisons Act cannot supersede the  statutory  provisions
of the Indian Penal Code. A  sentence  of  imprisonment  for  life  means  a
sentence for  the  entire  life  of  the  prisoner  unless  the  appropriate
Government chooses to exercise its discretion to remit either the  whole  or
a part of the sentence under Section 401 of the Code of Criminal Procedure.

17.   In Naib Singh s/o Makhan Singh v. State of Punjab and others[13]   the
Court was dealing with a writ petition preferred under  Article  32  of  the
Constitution challenging the continued detention of the  convict  petitioner
in jail and seeking an order in the nature of habeas  corpus  claiming  that
he had served more than the  maximum  sentence  of  imprisonment  prescribed
under law and therefore he should be released. The  petitioner  therein  was
convicted under Section 302 IPC and  sentenced  to  death  but  on  a  mercy
petition preferred by him, his death sentence was commuted  by the  Governor
of Punjab to imprisonment for life.  After serving rigorous imprisonment  of
more than 22 years, a petition was filed seeking  the  release.   The  Court
referred to Sections 53 and 55 IPC and Section 433 CrPC., various  decisions
of  the  High  Court  and  then  concept  of  transportation  for  life  and
eventually held that it is well settled position in law  that  the  sentence
of imprisonment for life has to be  equated  to  rigorous  imprisonment  for
life and ultimately the claim of the petitioner  to  immediate  release  was
declined in the absence of any order of  commutation   being  passed  either
under Section 55 IPC or Section 433(b) CrPC.

18.   In this regard, we may fruitfully refer to a two-Judge Bench  decision
in Laxman Naskar (supra). In the said case, after referring to  the  earlier
decisions, the Court opined that though under the relevant Rules a  sentence
for imprisonment for life is equated with the definite period of  20  years,
that is no  indefeasible  right  of  such  prisoner  to  be  unconditionally
released on the expiry of such  a  particular  terms,  including  remissions
and that is only for the purpose of working  out  the  remissions  that  the
said sentence is  equated  with  definite  period  and  not  for  any  other
purpose.  The Court proceeded to state thus:-

“… In view of this legal position explained by this Court it  may  not  help
the petitioner even on the construction placed by the  learned  counsel  for
the petitioner on Section 61(1) of the  West  Bengal  Correctional  Services
Act 32 of 1992 with reference to explanation thereto that  for  the  purpose
of calculation of the total period of imprisonment under  this  section  the
period of imprisonment for life shall be  taken  to  be  equivalent  to  the
period of imprisonment for 20 years.  Therefore,  solely  on  the  basis  of
completion of a term in jail  serving  imprisonment  and  remissions  earned
under the relevant Rules or law will not entitle an automatic  release,  but
the  appropriate  Government  must  pass  a  separate  order  remitting  the
unexpired portion of the sentence.”

19.   It is essential  to  state  here  that  while  so  stating  the  Court
adverted to the issue whether there had been due consideration of  the  case
of the petitioner by the Government. The Court took note of  the  fact  that
earlier on the Court had directed the Government  to  reconsider  the  cases
for premature release of all life convicts who  had  approached  the  Court.
The Court took note of the  fact  that  the  Government  had  constituted  a
Review  Committee  consisting  of  certain  members,  and   enumerated   the
guidelines issued earlier to form the  basis  on  which  a  convict  can  be
released prematurely. The said guidelines read as under:-
“This Court also issued certain guidelines  as  to  the  basis  on  which  a
convict can be released prematurely and they are as under:
“(i) Whether the offence is an individual act  of  crime  without  affecting
the society at large.
(ii) Whether there is any chance of future recurrence of committing crime.
(iii) Whether the convict has lost his potentiality in committing crime.
(iv) Whether there is any fruitful purpose of  confining  this  convict  any
more.
(v) Socio-economic condition of the convict’s family.”

20.   The Court analysed the reasons  given  by  the  Review  Committee  and
opined that the reasons given by the Government are palpably  irrelevant  or
devoid of substance and accordingly remitted the matter  to  the  Government
again for examination in the light of what has been stated by the Court.

21.   In Mohd. Munna (supra) a two-Judge  Bench  was  dealing  with  a  Writ
Petition wherein the prayer was made  for  issuance  of  a  writ  of  habeas
corpus to set the petitioner at liberty on the ground that he  had  remained
in detention for more than 21 years. It was contended  that  the  length  of
the  duration  of  imprisonment  for  life  is  equivalent  to   20   years’
imprisonment and that too subject  to  further  remission  admissible  under
law.   The two-Judge Bench referred to various provisions  of  IPC,  earlier
decisions in the field including K.M. Nanavati v. State  of  Maharashtra[14]
and Kishori Lal v. Emperor[15]  and the  law  laid  down  in  Gopal  Vinayak
Godse (supra) and held that:-

“The Prisons Rules are made under the Prisons Act and  the  Prisons  Act  by
itself does not confer any authority or power to commute or remit  sentence.
It only provides for the regulation of the prisons and for the terms of  the
prisoners confined therein. …”

      The Court further observed that the petitioner was not entitled to  be
released on any of the grounds urged in the writ petition so long  as  there
was no order of remission  passed  by  the  appropriate  Government  in  his
favour.

22.   In Maru Ram (supra) the constitutional validity of Section 433-A  CrPC
which had been brought in the statute book in the year 1978  was  called  in
question. Section 433-A CrPC imposed restrictions on powers of remission  or
commutation in certain  cases.  It  stipulates  that  where  a  sentence  of
imprisonment for life is imposed on conviction of a person  for  an  offence
for which death is one of the punishments  provided  by  laws,  or  where  a
sentence of death imposed on a person has been commuted  under  Section  433
into one of imprisonment for life, such person shall not  be  released  from
prison unless he has served at least fourteen years  of  imprisonment.   The
majority in Maru Ram (supra)  upheld  the  constitutional  validity  of  the
provision. The Court  distinguished  the  statutory  exercise  of  power  of
remission and exercise of power by the constitutional authorities under  the
Constitution, that is, Articles 72 and 161.   In  that  context,  the  Court
observed that the power which is the creature of the Code cannot be  equated
with  a  high  prerogative  vested  by  the  Constitution  in  the   highest
functionaries of the Union and the States, for the source is  different  and
the substance is different. The  Court  observed  that  Section  433-A  CrPC
cannot be invalidated as indirectly violative of Articles 72 and 161 of  the
Constitution. Elaborating further,  the  majority  spoke  to  the  following
effect:-

“… Wide as the power of pardon, commutation and  release  (Articles  72  and
161) is, it cannot run riot; for no legal power can  run  unruly  like  John
Gilpin on the horse but must keep sensibly to  a  steady  course.  Here,  we
come  upon  the  second  constitutional  fundamental  which  underlies   the
submissions  of  counsel.  It  is   that   all   public   power,   including
constitutional power, shall never be exercisable arbitrarily  or  mala  fide
and, ordinarily, guidelines for fair and equal execution are  guarantors  of
the valid play of power. …”


23.   In Kehar Singh (supra) the Constitution Bench opined  that  the  power
to pardon is a part of  the  constitutional  scheme  and  it  should  be  so
treated in the Indian Republic.   The Court further observed that  it  is  a
constitutional responsibility of great significance, to  be  exercised  when
occasion arises in  accordance  with  the  discretion  contemplated  by  the
context. It has also been held that the power to pardon rests on the  advice
tendered by the Executive to the President who, subject  to  the  provisions
of Article 74(1), must act in accordance with  the  advice.    Dealing  with
the justiciability of exercise of power under Article 72,  the  Court  after
due deliberation ruled that the question as to the area of  the  President’s
power under Article 72 falls squarely within the judicial domain and can  be
examined by the court by way of judicial  review.    In  this  context,  the
larger Bench ruled thus:-

“… The manner of consideration of the petition lies  within  the  discretion
of the President, and it is for him to  decide  how  best  he  can  acquaint
himself with all the information  that  is  necessary  for  its  proper  and
effective disposal. The President may consider  sufficient  the  information
furnished before him in the first  instance  or  he  may  send  for  further
material relevant to the issues which he considers pertinent,  and  he  may,
if he considers it will assist him in treating with the  petition,  give  an
oral  hearing  to  the  parties.  The  matter  lies  entirely   within   his
discretion. As regards the considerations to be applied by the President  to
the petition, we need say nothing  more  as  the  law  in  this  behalf  has
already been laid down by this Court in Maru Ram (supra).”

24.   In Swaran Singh (supra) a three-Judge Bench was called  upon  to  deal
with the non-justiciability of an order passed by  the  President  of  India
under Article 72 of the Constitution or by the Governor of the  State  under
Article  161  thereof.    The  Court  referred  to  the  Constitution  Bench
decision in Kehar Singh (supra) where the  principles  stated  in  Maru  Ram
(supra) were followed and culled out the  principles  that  in  Kehar  Singh
(supra)   a point has been stressed to the effect that the  power  being  of
the greatest moment, cannot be a law unto itself but it must be informed  by
the finer canons of constitutionalism.  The Court adverted to the  facts  of
the case and held thus:-

“In the present case, when the Governor was not posted with  material  facts
such as those indicated above, the Governor was apparently deprived  of  the
opportunity to exercise the powers in a fair and  just  manner.  Conversely,
the order now impugned fringes on arbitrariness.  What  the  Governor  would
have ordered if he were apprised of the above facts  and  materials  is  not
for us to consider now because the Court cannot then go into the  merits  of
the grounds which persuaded the Governor in taking a  decision  in  exercise
of the said power. Thus, when the order of the Governor  impugned  in  these
proceedings is subject to judicial review within the strict parameters  laid
down in Maru Ram case and reiterated in Kehar Singh case we  feel  that  the
Governor shall reconsider the petition of Doodh Nath in the light  of  those
materials which he had no occasion to know earlier.”

25.   In Bikas Chatterjee v. Union of India and others[16] the  Constitution
Bench while dealing with the power of judicial review in  respect  of  order
passed under Article 72 of the Constitution held that the  powers  are  very
very limited. Relying on Maru Ram (supra), the Court  observed  that  it  is
only a case of no consideration or consideration based on wholly  irrelevant
grounds or an irrational,  discriminatory  or  mala  fide  decision  of  the
President which can provide ground for judicial  review.  Dealing  with  the
powers of the Governor, the Court referred to the  authority  in  Satpal  v.
State of Haryana[17] and opined that:-

“In a Division Bench decision of this Court in Satpal v.  State  of  Haryana
(supra)  these  very  grounds  have  been  restated  as:  (i)  the  Governor
exercising the power under Article 161 himself without being advised by  the
Government; or (ii) the Governor transgressing his  jurisdiction;  or  (iii)
the Governor passing the order without application  of  mind;  or  (iv)  the
Governor’s decision is based on some extraneous consideration; or  (v)  mala
fides. It is on these grounds that the  Court  may  exercise  its  power  of
judicial review in relation to an order of the Governor under  Article  161,
or an order of the President under Article 72 of the  Constitution,  as  the
case may be.”

      Be it stated, the Court declined to entertain  the  writ  petition  on
the ground that there was no justification to assume that the  President  of
India had not applied his mind to all the  relevant  facts  and  accordingly
rejected the petition.

26.   At this juncture, reference to a two-Judge Bench  decision   in  Epuru
Sudhakar and another v. Govt. of A.P. and others[18] would be  apposite.  In
the said case, the convict was granted remission of the unexpired period  of
sentence under Article 161 of the Constitution.   The  convict  was  granted
remission of unexpired period of about seven years imprisonment.   The  same
was challenged by the son of the deceased.  The question of interference  by
the Court arose for consideration.  Arijit Pasayat, J.  placed  reliance  on
the authority in Swaran Singh (supra) wherein Maru  Ram  (supra)  and  Kehar
Singh (supra) were referred to and dealt with and reiterated the  view  that
if the power is exercised in an arbitrary or malafide manner or in  absolute
disregard  of  finer  canons  of  constitutionalism,  the   order   can   be
scrutinized in exercise of power of judicial review and the  judicial  hands
can be stretched to it.

27.  In the concurring opinion, S.H. Kapadia, J. (as His Lordship then  was)
opined thus:-

“Exercise of executive clemency is a matter of discretion  and  yet  subject
to certain standards. It is not a matter of privilege. It  is  a  matter  of
performance of  official  duty.  It  is  vested  in  the  President  or  the
Governor, as the case may be, not for the benefit of the convict  only,  but
for the welfare of the people who may  insist  on  the  performance  of  the
duty.  This  discretion,  therefore,  has  to   be   exercised   on   public
considerations alone. The President and the Governor are the sole judges  of
the sufficiency of facts and of the appropriateness of granting the  pardons
and  reprieves.  However,  this  power  is  an  enumerated  power   in   the
Constitution and its limitations, if any, must be found in the  Constitution
itself. Therefore, the principle of exclusive  cognizance  would  not  apply
when and if the decision impugned  is  in  derogation  of  a  constitutional
provision. This is the basic working  test  to  be  applied  while  granting
pardons, reprieves, remissions and commutations.”

 And, again:-

“… The Rule of Law is  the  basis  for  evaluation  of  all  decisions.  The
supreme quality of the Rule of Law is  fairness  and  legal  certainty.  The
principle of legality occupies a central plan in  the  Rule  of  Law.  Every
prerogative has to be subject to the  Rule  of  Law.  That  rule  cannot  be
compromised  on  the  grounds  of  political  expediency.  To  go  by   such
considerations would be subversive of  the  fundamental  principles  of  the
Rule of Law and it would amount to setting a dangerous precedent.  The  Rule
of Law principle comprises a requirement of “Government according  to  law”.
The ethos of “Government according to law” requires the  prerogative  to  be
exercised in a manner which  is  consistent  with  the  basic  principle  of
fairness and certainty. Therefore, the power of executive  clemency  is  not
only for the benefit of the convict, but while exercising such a  power  the
President or the Governor, as the case may be,  has  to  keep  in  mind  the
effect of his decision on the family of the victims, the society as a  whole
and the precedent it sets for the future.”


      We respectfully concur with the  aforesaid  expression  pertaining  to
the constitutional norm and the concept of rule of law.

28.   In this context, reference to Union of India v. V. Sriharan @  Murugan
& Ors[19] is quite seemly.  The majority in the Constitution Bench  referred
to the authority in Maru Ram (supra) and opined  that  constitutional  power
of remission provided under Articles 72 and 161  of  the  Constitution  will
always  remain  untouched,  inasmuch  as,  though  the  statutory  power  of
remission, etc., as compared to constitutional power under Articles  72  and
161 looks similar, yet they are not the same. Be it stated,  the  Court  was
dealing with imposition of sentence of life by fixing a period of 25  or  30
years without remission.  The Court after  analyzing  various  aspects  held
that it is permissible and the law  laid  down  in  Swamy  Shraddananda  (2)
alias Murali Manohar Mishra v. State of Karnataka[20]  deserved  acceptance.
The Court referred to the decision in V. Sriharan alias Murugan v. Union  of
India and others[21] wherein commuting the sentence of  death  into  one  of
life clearly laid down that such commutation was independent  of  the  power
of remission under the Constitution as well as the statute. Elaborating  the
proposition the Court while dealing with  the  power  of  remission  in  the
context of Article 21 of the Constitution, the majority said:-

“… It may also  arise  while  considering  wrongful  exercise  or  perverted
exercise  of  power  of  remission  by  the  Statutory   or   Constitutional
authority. Certainly there would have  been  no  scope  for  this  Court  to
consider a case of claim for remission to be ordered  under  Article  32  of
the Constitution. In other words, it has  been  consistently  held  by  this
Court that when it comes to the question of  reviewing  order  of  remission
passed which is  patently  illegal  or  fraught  with  stark  illegality  on
Constitutional violation or rejection of a claim for remission, without  any
justification or  colourful  exercise  of  power,  in  either  case  by  the
Executive Authority of the State, there may  be  scope  for  reviewing  such
orders  passed  by  adducing  adequate  reasons.  Barring  such  exceptional
circumstances, this Court has noted in  numerous  occasions,  the  power  of
remission always vests with the State Executive and this Court at  best  can
only give a direction to consider any claim for remission and  cannot  grant
any remission and provide for premature  release.  It  was  time  and  again
reiterated  that  the  power  of  commutation  exclusively  rest  with   the
Appropriate Government. …”
29.   After so stating the Court referred to series of  judgments,  analysed
the scope of constitutional provisions  and  the  statutory  provisions  and
opined thus:-

“Therefore, it must be held that there is every  scope  and  ambit  for  the
Appropriate Government to consider and grant remission  under  Sections  432
and 433 of the Code of Criminal Procedure even  if  such  consideration  was
earlier made and exercised under Article  72  by  the  President  and  under
Article 161 by the Governor. As far as the implication of Article 32 of  the
Constitution by this Court is concerned,  we  have  already  held  that  the
power under Sections 432 and 433 is  to  be  exercised  by  the  Appropriate
Government statutorily, it is not for this Court to exercise the said  power
and it is always left to be decided by the Appropriate Government,  even  if
someone approaches this Court under Article 32 of the Constitution. …”


30.   In the said case,  the  question  arose  with  regard  to  appropriate
Government in the context of Section 432(7) CrPC. The majority  referred  to
the authorities in Ratan Singh (supra), State  of  Madhya  Pradesh  v.  Ajit
Singh and others[22], Hanumant Dass v. Vinay Kumar and others[23], Govt.  of
A.P. and others v. M.T. Khan[24] and G.V. Ramanaiah  v.  The  Superintendent
of Central Jail, Rajahmundry and others[25]  and eventually held thus:-

“The status of Appropriate Government whether Union Government or the  State
Government will depend upon the order of sentence  passed  by  the  Criminal
Court as has been stipulated in Section 432(6) and in the event of  specific
Executive Power conferred on the Centre under a law made by  the  Parliament
or under the Constitution itself then in the event  of  the  conviction  and
sentence covered by the said law of the Parliament or the provisions of  the
Constitution even if the Legislature of the State is also empowered to  make
a law on the same subject and coextensive, the Appropriate  Government  will
be the Union Government having regard to the prescription contained  in  the
proviso to Article 73(1)(a) of the Constitution.  The  principle  stated  in
the decision in G.V. Ramanaiah (supra) should be applied.  In  other  words,
cases which fall within the four corners of Section 432(7)(a) by  virtue  of
specific Executive Power conferred on the Centre, the same will  clothe  the
Union Government the primacy with  the  status  of  Appropriate  Government.
Barring cases falling under Section 432(7)(a), in all other cases where  the
offender  is  sentenced  or  the  sentence  order  is  passed   within   the
territorial jurisdiction of the concerned State, the State Government  would
be the Appropriate Government.”

31.   Be it stated, the aforesaid part forms a part of  the  conclusion.  In
course of analysis, the Court has opined that when it comes to the  question
of primacy to the Executive Power of the  Union  to  the  exclusion  of  the
Executive Power of the State, where the power is co-extensive, in the  first
instance, it will have to be seen again whether,  the  sentence  ordered  by
the Criminal Court is found under any law relating to  which  the  Executive
Power of the Union extends.  In that context, the Court stated thus:-

“… In that respect, in  our  considered  view,  the  first  test  should  be
whether the offence for which the sentence was imposed was under a law  with
respect to which the Executive Power of the Union extends. For instance,  if
the sentence was imposed under TADA Act, as the said  law  pertains  to  the
Union Government, the Executive Power of the Union alone will apply  to  the
exclusion of the State Executive Power, in which  case,  there  will  be  no
question of considering the  application  of  the  Executive  Power  of  the
State.”

32.   In the instant case, the High Court  has  opined  that  the  State  of
Gujarat is the appropriate Government.  It is because it has been guided  by
the principle that the first respondent was convicted and sentenced  in  the
State of Gujarat.  As we  find  from  the  discussion,  there  has  been  no
reference to the authority in G.V. Ramanaiah (supra). That apart, the  issue
was not raised before the High Court.  The most important thing is that  the
High Court has referred to, as has been indicated earlier, many  aspects  of
human rights and individual liberty and, if we allow ourselves  to  say  so,
the whole discussion is in the realm of abstractions.   The  Court  has  not
found that  the  order  passed  by  the  State  of  Gujarat  was  bereft  of
appropriate consideration of necessary facts or there has been violation  of
principles of equality.  The High Court has not noticed that  the  order  is
bereft of reason. It has been clearly stated in the impugned order that  the
convict  was  involved  in  disruptive  activities,   criminal   conspiracy,
smuggling of arms, ammunitions and explosives and further he had  also  been
involved in various other activities. It has also been  mentioned  that  the
prisoner under disguise  of  common  name  used  to  purchase  vehicles  for
transportation and his conduct showed that he had  wide  spread  network  to
cause harm and create disturbance  to  National  Security.  Because  of  the
aforesaid reasons remission was declined.  In such  a  fact  situation,  the
view expressed by the High Court to consider the case on the  basis  of  the
observations made by it in the judgment is not correct.

33.   So far as direction for grant of parole is  concerned,  we  find  that
the learned Judge has  directed  parole  to  be  granted  for  three  months
forthwith.  In Sunil Fulchand Shah v. Union  of  India  and  others[26]  the
Constitution Bench while dealing with the  grant  of  temporary  release  or
parole under Section 12(1)  and  Section  12(1-A)  of  the  Conversation  of
Foreign Exchange and Prevention of Smuggling Activities Act, 1974  (COFEPOSA
Act) had observed that the exercise of the said power is  administrative  in
character but it does not affect the power of the High Court  under  Article
226  of  the  Constitution.    However,  the  constitutional  court   before
directing the temporary release where the request is made to be released  on
parole for a specified reason and for a  specified  period  should  form  an
opinion that request has been unjustifiably refused or  where  the  interest
of justice warranted for issue of such  order  of  temporary  release.   The
Court further ruled that jurisdiction has to be sparingly exercised  by  the
Court and even when it is  exercised,  it  is  appropriate  that  the  Court
should leave it to the administrative or jail authorities to  prescribe  the
conditions and terms on which parole is to be availed of by the detenu.

34.   We have referred to the aforesaid  authority  only  to  highlight  the
view expressed by the Constitution Bench with regard  to  grant  of  parole.
The impugned order, as we notice, is gloriously  silent  and,  in  fact,  an
abrupt direction has been issued to release the first respondent  on  parole
for a period of three months.  It is well settled in law  that  a  Judge  is
expected to act in consonance and  accord  with  the  legal  principles.  He
cannot assume the power  on  the  basis  of  his  individual  perception  or
notion.  He may consider himself as a candle of hope but application of  the
said principle in all circumstances is not correct because it may  have  the
effect potentiality to affect the society.  While using the power he has  to
bear in mind that “discipline” and “restriction” are the  two  basic  golden
virtues within which a Judge functions.  He may be one  who  would  like  to
sing the song of liberty and glorify the same abandoning passivity, but  his
solemn pledge has to remain embedded to constitution and  the  laws.   There
can be deviation.

35.   Consequently, the appeal is allowed  and  the  impugned  judgment  and
order of the High Court is set aside and liberty is  granted  to  the  first
respondent to  submit  a  representation/application  before  the  competent
authority of the Union of India within a  period  of  eight  weeks  and  the
authority  shall  consider  the  same  as  expeditiously  as   possible   in
accordance with law and the guidelines framed for premature release.

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



                                           ...............................J.
New Delhi;                           [Shiva Kirti Singh]
June 29, 2016
-----------------------
[1]

      [2] (2001) 3 SCC 221
[3]
      [4]  2007 (4) RCR (Criminal) 909 : (2007) 13 SCC 606
[5]
      [6] JT 1996 (3) SC 30 : 1996 (7) SCC 492
[7]
      [8] AIR 2000 SC 2762 : (2000) 7 SCC 626
[9]
      [10] AIR 1976 SC 2386 : (1976) 4 SCC 190
[11]
      [12] 1982 (1) SCC 417
[13]
      [14] 1989 (1) SCC 204
[15]
      [16] (2005) 7 SCC 417
[17]
      [18] 1981 (1) SCC 107
[19]
      [20]  1998 (4) SCC 75
[21]
      [22] (1976) 3 SCC 470
[23]
      [24] (1961) 3 SCR 440 : AIR 1961 SC 600
[25]
      [26] (1983) 2 SCC 454
[27]
      [28] 1962 Supp (1) SCR 567 : AIR 1962 SC 605
[29]
      [30] AIR 1945 PC 64
[31]
      [32] (2004) 7 SCC 634
[33]
      [34] (2000)  5 SCC 170
[35]
      [36] (2006) 8 SCC 161
[37]
      [38] 2015 (13) SCALE 165
[39]
      [40] (2008) 13 SCC 767
[41]
      [42] (2014) 4 SCC 242
[43]
      [44] (1976) 3 SCC 616
[45]
      [46] (1982) 2 SCC 177
[47]
      [48] (2004) 1 SCC 616
[49]
      [50] AIR 1974 SC 31 : (1974) 3 SCC 531
[51]
      [52] (2000) 3 SCC 409


permanent affiliation = As per Time Schedule prescribed by the State Government, the Inspection Report was not received within the prescribed date. In the absence of the required Inspection Report, the University did not grant permanent affiliation to the appellant for the Academic Session 2015-16. No appeal was preferred before the State Government.- Coming to the present case. As is evincible, the University has not granted affiliation as the schedule for the same was over. No appeal was preferred by the appellant College. The High Court rightly held that it cannot issue a writ contrary to the judgment of this Court. However, we observe that the University shall consider the application for affiliation, if not considered already, within a span of four weeks and, if the affiliation is granted, the students who had been granted admission shall be treated as students as admitted for the academic session which would be covered by the affiliation to be granted in future. We have so directed so that the appellant College would not be in a position to admit any other student after affiliation is granted.

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO. 1894 OF 2016
                   (Arising out of S.L.P.(C) 5995 OF 2016)
                            (CC NO. 1652 OF 2016)


Committee of Management Anuragi Devi       ...Appellants
Degree College & Anr.
                                Versus

State of U.P. & Anr.                              ...Respondents



                               J U D G M E N T



Dipak Misra, J.
      The first respondents vide  its  letter  no.  Aff.333/Seventy-6-2012-2
(356)/2012  dated  12.09.2012,  granted  prior  permission  for  provisional
affiliation to the appellant for a period of 3 years w.e.f. 01.07.2012  i.e.
for the period 01.07.2012 to 30.06.2015 for imparting Education in the  Arts
Faculty for the  subjects  Hindi,  Political  Science,  Sociology,  Medieval
History, Education Sanskrit and Home Science. In pursuance of the  aforesaid
Government  order  No.  333  dated  12.09.2012,  the  Deen  Dayal   Upadhyay
Gorakhpur University, Gorakhpur vide its letter no.  7539/  Affi.2012  dated
27.11.2012 permitted the appellant to admit  the  students  in  the  various
subjects of the Arts Faculty.
2.     The  appellant  applied  on  10.03.2015,  to   the   University   for
constituting an Inspection Panel for granting permanent affiliation  to  the
University.  Upon perusal of the application dated 10.03.2015  submitted  by
the   aforesaid   appellants,   the   University   vide   its   letter   No.
DDUGU/Aff.2015/5096 dated 20.03.2015  constituted  an  Inspection  Panel  to
submit status  report  of  the  appellant  as  far  as  the  Infrastructural
Facilities existing in the appellant’s college were concerned. The  Regional
Higher Education  Officer  Gorakhpur  submitted  its  inspection  report  on
06.11.2015 to the University.
3.     As  per  Time  Schedule  prescribed  by  the  State  Government,  the
Inspection Report was not  received  within  the  prescribed  date.  In  the
absence of the required Inspection Report,  the  University  did  not  grant
permanent  affiliation  to  the   appellant   for   the   Academic   Session
 2015-16.  No appeal was preferred before the State Government.
4.    As the permanent affiliation was not  granted  the  appellant  college
preferred a writ petition-C No. 42336 of 2015 and the learned  Single  Judge
of the High Court taking note  of  the  fact  that  writ  petitions  seeking
similar  reliefs  had  been  dismissed,  vide  its  order  dated  20.08.2015
declined to interfere.  However, it observed that “the petitioner  would  be
entitled for consideration  of  his  claim  for  the  next  session”.  Being
dissatisfied with  the  order  passed  by  the  learned  Single  Judge,  the
appellant preferred Special Appeal No.  610  of  2015  before  the  Division
Bench.
5.    The Division Bench, as the factual scenario would unveil,   took  note
of the prayer of the college that it was in effect seeking issuance of  writ
of mandamus requiring the University to  extend  temporary  affiliation  for
the courses  of  Hindi,  Political  Science,  Sociology,  Medieval  History,
Education, Sanskrit  and  Human  Science  at  the  graduate  level  for  the
academic session 2015-2016 and accordingly  adverted to  the  reasonings  of
the learned Single Judge and concurred with him.
6.    It was urged before the Division Bench that application for  grant  of
permanent affiliation in respect of subjects  was  made  well  within  time,
that is,12.12.2014; that the three-member committee that was constituted  by
the University on 20.3.2015 had visited the  institution  on  14.4.2015  and
submitted  the  report;  and  that  the  inspection  team  had   recommended
extension of temporary affiliation in respect of subjects  in  question  for
the academic session 2015-2016 but there had been failure  on  the  part  of
the University which  had  caused  grave  prejudice  to  the  college.   The
Division Bench noted the stand of the University, referred to the  authority
in Maa Vaishno Devi Mahila Mahavidyalaya v. State  of  U.P.  and  others[1],
reproduced the time schedule fixed in the said judgment  and  observed  that
pursuant to the directions so issued the State Government formulated a time-
frame for consideration of applications for affiliation the  particulars  of
which stood embodied in the Government Order dated 14 November, 2014 and  in
terms of the government order the last date for the grant of affiliation  by
a University is fixed as 30 May and  a  person  aggrieved  by  the  decision
taken by the University was entitled to  prefer an appeal against  the  same
by 15 June and the State Government was  liable  to  decide  the  appeal  so
preferred latest by 15 July. The appellate-Bench stated that  in  the  facts
of the case the affiliation was neither granted by the time fixed under  the
Government Order dated 14  November,  2014  nor  was  any  appeal  preferred
before the State Government and, therefore, bearing in mind  the  directions
issued in Maa Vaishno Devi Mahila Mahavidyalaya (supra), it was not open  to
either the second respondent or the  State  Government  to  pass  orders  of
affiliation after 30 May, 2015.  Being of this view, it dismissed the intra-
court appeal. Hence, the present appeal by special leave.
7.    We  have  heard  Mr.  R.P.  Bhatt,  learned  senior  counsel  for  the
appellant, Mr. Kavin Gulati, learned counsel for  the  respondent-university
and Mr. Gaurav Bhatia, learned Additional Advocate General for the State  of
U.P.
8.    At the very beginning, we may note that  in  College  of  Professional
Education and others v. State of Uttar  Pradesh  and  others[2],  the  Court
recorded that for the academic year 2012-13 and subsequent  academic  years,
institution and the State  Government  had  arrived  at  a  broad  consensus
regarding the procedure and terms and conditions of  admission,  recognition
and affiliation.  The terms and conditions which had been  accepted  by  all
concerned were reproduced in the said judgment.    In the said judgment,  as
is evident, the Court has referred to the order dated  11.3.2011,  and  also
provided for the time by which the  affiliation  could  be  granted  to  the
colleges.  Paragraph (vi) (b) clearly stipulated that after  the  counseling
is over, the university concerned will  continue  to  allot  the  candidates
from the relevant waiting list against the vacant seats till all  the  seats
in the colleges were filled up and the organizing university  would  provide
students only to the existing B.Ed  college  and  all  those  B.Ed  colleges
which would get affiliation up to  7.7.2011  would  not  be  considered  for
counseling to the year 2011-2012 and for  the  next  consecutive  years  and
onward the colleges which will get affiliated on or before  10th of  May  of
that year, would be considered for counseling.   Certain  affiliations  were
granted to the colleges which  were  interefered  with  by  the  High  Court
primarily on the ground that the court had no  jurisdiction  to  extend  the
cut-off date.
9.    In Maa Vaishno Devi Mahila Mahavidyalaya (supra),  the  Court  dealing
with various aspects, taking into consideration the provisions of  the  NCTE
Act, 1993 and the NCTE Rules 1997, opined that:-
“The above enunciated principles  clearly  show  that  the  Council  is  the
authority constituted under the  Central  Act  with  the  responsibility  of
maintaining education of standards and judging upon the  infrastructure  and
facilities available for imparting such professional education. Its  opinion
is of utmost importance and shall take precedence  over  the  views  of  the
State as well as that  of  the  university.  The  Department  of  the  State
concerned and the affiliating university have a  role  to  play  but  it  is
limited in its application. They cannot lay down  any  guideline  or  policy
which would be in conflict with the Central statute or  the  standards  laid
down by the Central body. The State can frame its policy  for  admission  to
such professional courses but such policy again  has  to  be  in  conformity
with the directives issued by the Central body. In the present cases,  there
is not much conflict on this issue, but it needs to be clarified that  while
the State grants its approval,  and  the  university  its  affiliation,  for
increased intake of seats or  commencement  of  a  new  course/college,  its
directions should not offend and be repugnant to what has been laid down  in
the conditions for approval granted by the  Central  authority  or  Council.
What is most important is that all these authorities have to  work  ad  idem
as they all have a common object to achieve i.e. of imparting  of  education
properly  and  ensuring  maintenance  of  proper  standards  of   education,
examination and infrastructure for betterment  of  the  educational  system.
Only if all  these  authorities  work  in  a  coordinated  manner  and  with
cooperation, will they be able to achieve the  very  object  for  which  all
these entities exist”.


10.   And again:-
“67. In the present case, we are concerned with the provisions of  the  NCTE
Act which is a Central legislation referable to Schedule VII  List  I  Entry
66. Thus, no law enacted by  the  State,  which  is  in  conflict  with  the
Central law, can be permitted to be operative.

68. Now, let us examine the conflict that arises in the  present  cases.  In
terms of the provisions of the Act, the Regional Committee  is  required  to
entertain the application, consider State opinion, cause  inspection  to  be
conducted by an expert team and then  to  grant  or  refuse  recognition  in
terms of the provisions of the  Act.  Once  a  recognition  is  granted  and
before an institution can  be  permitted  to  commence  the  course,  it  is
required to take  affiliation  from  the  affiliating  body,  which  is  the
university.

69. Thus,  grant  of  recognition  or  affiliation  to  an  institute  is  a
condition precedent to running of the courses by the  institute.  If  either
of them is not granted to the institute, it would not be in  a  position  to
commence the relevant academic courses.  There  is  a  possibility  of  some
conflict between a University Act or Ordinance relating to affiliation  with
the provisions of the Central Act. In such cases,  the  matter  is  squarely
answered in Sant Dnyaneshwar Shikshan  Shastra  Mahavidyalaya[3]  where  the
Court stated that after coming  into  operation  of  the  Central  Act,  the
operation  of  the  University  Act  would  be   deemed   to   have   become
unenforceable  in  case  of  technical  colleges.  It  also  observed   that
provision  of  the  Universities  Act  regarding  affiliation  of  technical
colleges and conditions for grant of continuation  of  such  affiliation  by
the  university  would  remain  operative  but  the  conditions   that   are
prescribed by the university for grant and continuation of affiliation  must
be in conformity with the norms and guidelines prescribed by NCTE”.

11.   After so stating, the Court further proceeded to state:-
“76. In terms of Section 37(10), a college  which  has  been  affiliated  is
entitled to continue the course of  study  for  which  the  admissions  have
already taken place. To  give  an  example,  under  the  statute  of  Meerut
University, affiliation of new colleges is dealt with under  Statutes  13.02
to  13.10  of  Chapter  XIII.  This  requires  that  every  application  for
affiliation of a college has to be made so as  to  reach  the  Registrar  in
less than 12 months before the commencement of  the  course  and  before  an
application is considered by  the  Executive  Council,  the  Vice-Chancellor
must be satisfied that there  is  due  compliance  with  the  provisions  of
Statutes 13.05, 13.06 and 13.07. Besides, it requires  the  conditions  like
adequate financial resources, suitable  and  sufficient  building,  adequate
library, two hectares of land, facilities for recreation of  students,  etc.
to be fulfilled. The constitution of the management  of  every  college  has
also been provided.

77. The fields which are sought  to  be  covered  under  the  provisions  of
Section 37 of the Universities Act and the statutes of various  universities
are clearly common  to  the  aspects  which  are  squarely  covered  by  the
specific language under the Act. That being so, all State laws in regard  to
affiliation insofar as they are covered by the Act  must  give  way  to  the
operation of the provisions of the Act. To put it simply,  the  requirements
which have been examined and the conditions which have been imposed by  NCTE
shall prevail and cannot be altered,  re-examined  or  infringed  under  the
garb of  the  State  law.  The  affiliating/examining  body  and  the  State
Government must abide by the proficiency and command of  NCTE’s  directions.
To give  an  example,  existence  of  building,  library,  qualified  staff,
financial  stability  of  the  institution,  accommodation,  etc.  are   the
subjects which are specifically covered under Section 14(3)(b) of  the  Act.
Thus, they would not  be  open  to  re-examination  by  the  State  and  the
university. If the recognition itself was conditional and  those  conditions
have not been satisfied, in such circumstances, within the ambit  and  scope
of Sections 46 and 16  of  the  Act,  the  affiliating  body  may  not  give
affiliation  and  inform  NCTE  forthwith  of  the  shortcomings  and   non-
compliance with the conditions. In such situation, both the Central and  the
State body should act in tandem and, with due coordination, come to a  final
conclusion as to the steps which are required to be taken in regard to  both
recognition and affiliation. But certainly, the  State  Government  and  the
university cannot act in derogation to NCTE.

78. Now, we may deal with another aspect of this very facet of the case.  It
is a very pertinent issue as to what the role of the State should  be  after
the affiliation  is  granted  by  the  affiliating  body.  We  have  already
discussed that the State opinion, as contemplated under Section  37  of  the
University Act, to the extent it admits to overreach,  is  reconcilable  and
its results are not in its orientation to the directives of  NCTE  are  void
and inoperative to the extent they can  be  resolved  in  which  case  clear
precedence is to be given to the directives of NCTE during such  resolution.
The opinion of the State, therefore, has to be read and  construed  to  mean
that it would keep the factors determined by NCTE intact  and  then  examine
the matter for grant of affiliation. The role of  the  State  Government  is
minimised at this stage which,  in  fact,  is  a  second  stage.  It  should
primarily be for the  university  to  determine  the  grant  or  refusal  of
affiliation and  role  of  the  State  should  be  the  bare  minimum,  non-
interfering and non-infringing.

79. It is on record and the Regulations framed under the  Act  clearly  show
that upon receiving an application for recommendation,  NCTE  shall  send  a
copy of the application with its  letter  inviting  recommendations/comments
of the State Government on all aspects within a period of 30 days.  To  such
application, the State is expected to respond  with  its  complete  comments
within a period of 60 days. In other words, the opinion of the State on  all
matters that may concern it in any of the specified fields  is  called  for.
This is the stage where the State and its Department  should  play  a  vital
role. They must take all precautions to offer proper comments  supported  by
due reasoning. Once these comments are sent and the State  Government  gives
its opinion which is considered by NCTE and  examined  in  conjunction  with
the report of the experts, it may  grant  or  refuse  recognition.  Once  it
grants recognition, then such grant attains supremacy  vis-à-vis  the  State
Government as well  as  the  affiliating  body.  Normally,  these  questions
cannot be  reagitated  at  the  time  of  grant  of  affiliation.  Once  the
university conducts inspection in terms of  its  statutes  or  Act,  without
offending the provisions of the Act and conditions of recognition, then  the
opinion of the State Government at the second  stage  is  a  mere  formality
unless there was a drastic and unacceptable mistake or  the  entire  process
was vitiated by fraud or there was patently eminent danger to  the  life  of
the students  working  in  the  school  because  of  non-compliance  with  a
substantive condition imposed  by  either  of  the  bodies.  In  the  normal
circumstances, the role of the State is a very formal one and the  State  is
not expected to obstruct the commencement of admission process and  academic
courses  once  recognition  is  granted  and  affiliation  is  found  to  be
acceptable.

80. In Sant Dnyaneshwar Shikshan Shastra  Mahavidyalaya  the  view  of  this
Court was that the State Government has  no  role  whatsoever.  However,  in
Bhartia Education Society[4] it was  stated  that  the  role  of  the  State
Government was limited to the manner  of  admission,  eligibility  criteria,
etc. without interfering with the conditions of  recognition  prescribed  by
NCTE. The exercise of discretion by the  State  Government  and  affiliating
body has to be  within  the  framework  of  the  Act,  the  Regulations  and
conditions of recognition. Even in St. Johns Teachers Training  Institute[5]
the Court stated that the State Government or the  Union  Territory  has  to
necessarily  confine  itself  to  the  guidelines  issued  by   NCTE   while
considering  the  application  for  grant  of  “no-objection   certificate”.
Minimisation of the role of the State  at  the  second  stage  can  also  be
justified on the ground that affiliation primarily is  a  subject-matter  of
the university which is responsible for admission  of  the  students  laying
down the criteria thereof, holding of  examinations  and  implementation  of
the prescribed courses while  maintaining  the  standards  of  education  as
prescribed”.

12.   After laying down  the  principles  of  law,  the  Court  opined  that
adherence to the schedule is the essence of granting  admission  in  a  fair
and transparent manner as well as to maintain  the  standard  of  education.
The Court further observed that:-
“….. None in the hierarchy of the State Government, university, NCTE or  any
other authority or body involved in this process  can  breach  the  schedule
for any direct or indirect reason. Anybody who is found to be defaulting  in
this behalf is bound to render himself or herself liable for  initiation  of
proceedings under the provisions of the Contempt  of  Courts  Act,  1971  as
well as for a disciplinary action in  accordance  with  the  orders  of  the
Court”.

13.   In that context, the Court further proceeded to state:-
“83. Undoubtedly, adherence to the schedule achieves the object of  the  Act
and its various aspects. Disobedience  results  in  unfair  admissions,  not
commencing the courses  within  the  stipulated  time  and  causing  serious
prejudice to the students of higher merit resulting in  defeating  the  rule
of merit.

84. We may very clearly state here that we adopt and reiterate the  schedule
stated by this Court in College of Professional  Education  in  relation  to
admission as well as recognition and affiliation.  This  obviously  includes
the commencement of the courses in time. However,  in  order  to  avoid  the
possibility  of  any  ambiguity,  we  propose  to  state  the  schedule  for
recognition and affiliation in terms of the NCTE Regulations, 2009  and  the
judgment of this Court in College of Professional Education.

86. There appear to be some  overlapping  periods  and  even  contradictions
between the dates and periods stated under  the  regulations  inter  se  and
even  with  reference  to  the  judgments  of  this  Court  prescribing  the
schedule. For example, in terms of the judgment of this Court in College  of
Professional Education, the last date for grant of affiliation is  10th  May
of the year concerned, but as per Regulation 5(5) of the  NCTE  Regulations,
2009, the last date for grant of recognition is 15th  May  of  the  relevant
year. Similarly, there  is  an  overlap  between  the  period  specified  in
Regulation 7(1) and that under Regulation 7(2). Such overlapping  is  likely
to cause some confusion in the mind of the implementing  authority  as  well
as the applicant. Thus, it is necessary for this Court to put to rest  these
avoidable events and unnecessary controversies.

87. Compelled by these circumstances and to  ensure  that  there  exists  no
ambiguity, uncertainty and confusion, we direct and prescribe the  following
Schedule upon a cumulative reading of the Regulations and judgments of  this
Court in relation to recognition and affiliation:

87.1. Schedule for Recognition and Affiliation


|87.1.1.|Submission of            |1st September to 1st |
|       |applications for         |October of the year  |
|       |recognition in terms of  |immediately preceding|
|       |Regulation 5(4)          |the relevant academic|
|       |                         |year                 |
|87.1.2 |Communication of         |Within 45 days from  |
|       |deficiencies,            |the date of receipt  |
|       |shortcomings or any other|of the applications  |
|       |discrepancy in the       |                     |
|       |application submitted by |                     |
|       |the applicant to the     |                     |
|       |applicant in terms of    |                     |
|       |Regulation 7(1)          |                     |
|87.1.3.|Removal of such          |Within 60 days from  |
|       |deficiencies by the      |the date of receipt  |
|       |applicant                |of communication     |
|87.1.4.|Forwarding of copy of the|Within 90 days from  |
|       |application to the State |the date of receipt  |
|       |Government/UT            |of the application   |
|       |Administration for its   |                     |
|       |recommendations/comments |                     |
|       |in terms of Regulation   |                     |
|       |7(2)                     |                     |
|87.1.5 |Recommendations/comments |Within 30 days from  |
|       |of the State             |the date of issue of |
|       |Government/UT            |letter to it         |
|       |Administration to be     |                     |
|       |submitted to the Regional|                     |
|       |Committee under          |                     |
|       |Regulation 7(3)          |                     |
|87.1.6.|If                       |Within seven days    |
|       |recommendations/comments |from the date of     |
|       |are not received within  |expiry of the period |
|       |30 days, the Regional    |of 30 days           |
|       |Committee shall send to  |                     |
|       |the State Government/UT  |                     |
|       |Administration a reminder|                     |
|       |letter for submission of |                     |
|       |the                      |                     |
|       |recommendations/comments |                     |
|87.1.7.|State Government/UT      |Within 15 days from  |
|       |Administration shall     |the date of receipt  |
|       |furnish the              |of such reminder     |
|       |recommendations/comments |letter               |
|87.1.8.|Intimation regarding     |Within 10 days from  |
|       |inspection by the        |final scrutiny of the|
|       |Regional Committee to the|application          |
|       |applicant under          |                     |
|       |Regulation 7(4)          |                     |
|87.1.9.|Report by the Inspection |20 days thereafter   |
|       |Committee under          |                     |
|       |Regulation 7(5)          |                     |
|87.1.10|Letter of intent to the  |10th of February of  |
|.      |institution with respect |the succeeding       |
|       |to grant or refusal of   |year/relevant year   |
|       |recognition in terms of  |                     |
|       |Regulation 7(9)          |                     |
|87.1.11|Time to comply with      |20 days from the date|
|.      |certain specified        |of issuance of letter|
|       |conditions, in terms of  |of intent            |
|       |Regulations 7(10) and    |                     |
|       |7(11)                    |                     |
|87.1.12|Issuance of formal order |By 3rd March of each |
|.      |of recognition           |year                 |
|87.1.13|Last date for submitting |By 10th March of each|
|.      |proposal for affiliation |year                 |
|87.1.14|Forwarding of proposal by|By 10th March of each|
|.      |the University to the    |year                 |
|       |State Government/UT      |                     |
|       |Administration after     |                     |
|       |inspection by expert team|                     |
|87.1.15|Comments to be submitted |By 10th March of each|
|       |by the State             |year                 |
|       |Government/UT            |                     |
|       |Administration, if any   |                     |
|87.1.16|Final date for           |By 10th March of each|
|.      |issuance/grant of        |year                 |
|       |affiliation for the      |                     |
|       |relevant academic year   |                     |


87.2.  All  notices/orders/requirements/letters  in  terms  of   the   above
schedule or under the provisions of the  Act  or  terms  and  conditions  of
already granted recognition/affiliation  shall  be  sent  by  the  authority
concerned by speed post/e-mail on the address given in the  application  for
correspondence,  etc.  and  shall  be  posted  on   the   website   of   the
Authority/Committee/ Council/Government concerned.

87.3. The recognition and affiliation granted  as  per  the  above  Schedule
shall be applicable for the current academic year. For example,  recognition
granted up to 3-3-2013 and affiliation granted  up  to  10-5-2013  shall  be
effective for the academic year 2013-2014 i.e. the courses starting from  1-
4-2013. For the academic year 2013-2014,  no  recognition  shall  be  issued
after 3-3-2013 and no affiliation shall  be  granted  after  10-5-2013.  Any
affiliation or recognition granted after the above cut-off dates shall  only
be valid for the academic year 2014-2015.

87.4. We make it clear that no Authority/person/Council/Committee  shall  be
entitled to vary the Schedule for any reason whatsoever. Any  non-compliance
shall amount to violating the orders of the Court.”

14.   We  are  obliged  to  state  here  that  there  is  justification  for
reproducing the above paragraphs from the  aforesaid  decision.   The  Court
has taken pains to explain the scheme of the Act,  role  of  the  university
and the purpose of fixing a time schedule for each purpose.  Certain  action
of the authorities can be flawed  and  eventually  fall  in  the  sphere  of
illegality.  It has to be so declared by the Court.  In the  case  at  hand,
the benefit could not be extended as the appellants have not maintained  the
time schedule fixed by the State Government pursuant to  judgments  of  this
Court. Therefore, the order passed by the learned single Judge  as  well  as
the Division Bench cannot be found fault with.
15.   The controversy does not end here.  The stand  of  the  University  is
that  the  appellant  College  has  admitted  students  without  having  the
necessary affiliation  for  the  academic  session  2015-16.  This  kind  of
conduct has become a disease, and when the conduct becomes  a  disaster,  it
is  a  disastrous  phenomenon.   While  dealing  with   admissions   without
affiliation from CBSE, the Court in Sunil  Oraon  (minor)  through  guardian
and others v.  CBSE and others[6] referred  to  earlier  decisions  and  was
constrained to state thus:-
“Time and again, therefore,  this  Court  had  deprecated  the  practice  of
educational  institutions   admitting   the   students   without   requisite
recognition or affiliation. In all such cases the usual plea is  the  career
of innocent children who  have  fallen  in  the  hands  of  the  mischievous
designated school authorities. As the factual  scenario  delineated  against
goes to show that the school has shown scant  regards  to  the  requirements
for affiliation and as rightly highlighted by learned counsel for CBSE,  the
infraction was of very serious  nature.  Though  the  ultimate  victims  are
innocent students that cannot  be  a  ground  for  granting  relief  to  the
appellant. …”

16.    In  Adarsh  Shiksha   Mahavidyalaya   v.   Subhash   Rahangdale   and
others[7]the Court has laid down that:-
“(xv) The students admitted by  unrecognised  institution  and  institutions
which are not affiliated to any examining body are not  entitled  to  appear
in the examination conducted by the examining body or any  other  authorised
agency.”

 The Court further proceeded to direct:-
“88.  (ii)  The  result  of  the  students  admitted  by   an   unrecognised
institution or by an institution which had not been granted  affiliation  by
the examining body shall not be declared. The result  of  the  students  who
were admitted without qualifying the entrance examination shall also not  be
declared. In other words, the students admitted by the private  institutions
on their own shall not be entitled to declaration of their  result.  If  any
private institution had not complied with  the  requirements  of  completing
the prescribed training, then the result of  students  of  such  institution
shall also not be declared.”

17.   In National Council for Teacher Education and another v. Venus  Public
Education Society  and  others[8]   the  two-Judge  Bench  ingeminating  the
anguish of the Court was compelled to observe:-

“… It is urged by him that NCTE had procrastinated  its  decision  at  every
stage and  such  delay  was  deliberate  and,  therefore,  the  Society  was
compelled to admit the students and impart education, regard  being  had  to
the fact that there were really no deficiencies. As has been  laid  down  in
many a pronouncement of this Court that without recognition  from  NCTE  and
affiliation from the university/examining body, the educational  institution
cannot admit the students. An educational  institution  is  expected  to  be
aware of the law. The students who take admission  are  not  young  in  age.
They are graduates. They are expected to  enquire  whether  the  institution
has recognition and affiliation. If  we  allow  ourselves  to  say  so,  the
institution had given  admission  in  a  nonchalant  manner.  Possibly,  its
functionaries harboured the idea that they had  incomparable  fertile  mind.
The students who had taken admission possibly immersed with  the  idea  that
ignorance is a bliss. It is also necessary to  state  that  the  institution
had the  anxious  enthusiasm  to  commercialise  education  and  earn  money
forgetting the factum that  such  an  attitude  leads  to  a  disaster.  The
students exhibited tremendous anxiety to get a degree without bothering  for
a moment whether their effort, if any, had the sanctity of law. ..”

18.   Coming to the present case. As is evincible, the  University  has  not
granted affiliation as the schedule for the same was  over.  No  appeal  was
preferred by the appellant College.  The High Court  rightly  held  that  it
cannot issue a writ contrary to the judgment of  this  Court.   However,  we
observe that the University shall consider the application for  affiliation,
if not considered  already,  within  a  span  of  four  weeks  and,  if  the
affiliation is granted, the students who had been  granted  admission  shall
be treated as students as admitted for the academic session which  would  be
covered by the affiliation to be granted in future.  We have so directed  so
that the appellant College would not be in a position  to  admit  any  other
student after affiliation is granted.
19.   Consequently, the appeal stands dismissed.  There shall  be  no  order
as to costs.

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


                                             ..........................., J.
                                                         [Shiva Kirti Singh]
New Delhi;
June 29, 2016
-----------------------
[1]     (2013) 2 SCC 617
[2]     (2013) 2 SCC 721
[3]     (2006) 9 SCC 1
[4]     (2011) 4 SCC 527
[5]     (2003) 3 SCC 321
[6]    (2006) 13 SCC 673
[7]    (2012) 2 SCC 425
[8]    (2013) 1 SCC 223

-----------------------
19


Sections 17 and 52 of the Marine Insurance Act, 1963=When the delivery was taken at Moscow, it was found short of 142 and 139 cartons respectively. The matter was then reported to the Insurance Company who, in turn, appointed M/s Ingostarkh Insurance Company Ltd., Moscow as the surveyors to investigate into the matter and assess the loss. The surveyors confirmed the short delivery of the cartons. In terms of policy, the claim for the loss sustained by the consignee was lodged with M/s Ingostrakh Insurance Company in the first instance. They did not settle it and hence the consignee authorized the respondent to file the claim against the appellant for recovery of the loss sustained by them due to loss of their goods.= whether the complaint petition filed by the respondent under the Consumer Protection Act against the appellant (Insurer) was maintainable or not or in other words whether the respondent had the locus to file the complaint on the strength of contract of Insurance Policy in question for claiming compensation for the loss sustained in the transaction? = Sections 17 and 52 of the Marine Insurance Act, 1963 (hereinafter referred to as “the Act”) are relevant for deciding the abovesaid question. They read as under : “Section 17. Assignment of interest.—Where the assured assigns or otherwise parts with his interest in the subject-matter insured, he does not thereby transfer to the assignee his rights under the contract of insurance, unless there be an express or implied agreement with the assignee to that effect. But the provisions of this section do not affect transmission of interest by operation of law. “Section 52. When and how policy is assignable.— (1) A marine policy may be transferred by assignment unless it contains terms expressly prohibiting assignment. It may be assigned either before or after loss. (2) Where a marine policy has been assigned so as to pass the beneficial interest in such policy, the assignee of the policy is entitled to sue thereon in his own name; and the defendant is entitled to make any defence arising out of the contract which he would have been entitled to make if the suit had been brought in the name of the person by or on behalf of whom the policy was effected. (3) A marine policy may be assigned by endorsement thereon or in other customary manner.”Section 52 provides as to when and how the marine policy may be transferred. It says that a marine policy may be transferred by assignment unless it contains express terms, which prohibits any assignment of the policy. It also provides that such assignment can be made before or after the loss has occasioned.Sub-Section(2)of Section 52 provides that once the assignment is made then the assignee is entitled to sue in his name whereas the insurer/defendant is also entitled to raise all such defences against the assignee, which are available to him against the original insured i.e. assigner.-Under these circumstances, by virtue of Section 17, the respondent is legally entitled to retain, enjoy and exercise all those rights, which are available to them under the contract of insurance, which they have entered into with the appellant despite making the assignment of their policy in favour of the assignee.Section 17, in terms, recognizes and permits the insured to make assignment of their contract of insurance policy in favour of an assignee and at the same time allows the insured even after making an assignment to retain all those rights which are available to them under the contract of insurance with the Insurer (appellant). In other words, in terms of Section 17, even after making an assignment by the insured of their contract of insurance policy, the rights of insured under the contract of insurance policy are not assigned in favour of assignee by the deed of assignment but they are continued to remain with the insured. We are, therefore, of the considered view that firstly, we do not find that the respondent (insured) assigned the contract of insurance policy in favour of their consignee as contended by the appellant. Secondly, even assuming that the respondent (insured) assigned the contract of insurance policy in favour of their consignee, yet the assignment so made did not have any adverse effect on the rights of the insured under the contract of insurance policy as the rights continued to remain with them by virtue of Section 17 of the Act.The respondent was, therefore, legally entitled and had the locus to file a complaint against the appellant on the strength of contract of insurance policy for enforcement of their all contractual rights available to them under the insurance policy for claiming compensation for the loss caused from the appellant and the complaint so filed by the respondent could not be dismissed as not maintainable on the ground of locus. It was thus rightly held as maintainable.In our considered opinion, even if we accept, for the sake of argument, that the respondent had assigned their rights under the contract of Insurance policy in favour of their consignee by way of endorsement as contended by the appellant, yet in the light of authorization letter dated 04.07.1997 duly issued by the consignee in favour of the respondent authorizing the respondent to file a complaint petition before the Consumer forum for recovery of the compensation, the respondent was entitled and had the locus to file a complaint against the appellant for realization of compensation amount towards the loss sustained due to short delivery of the goods on the strength of the authorization letter for enforcement of contract of insurance policy. In view of foregoing discussion, we are of the considered opinion that in any event, the complaint filed by the respondent (insured) was maintainable and that the respondent had the locus to file the complaint against the appellant. It was, in our view, saved by Section 17 of the Act and by the authorization letter dated 04.07.1997, issued by the consignee in respondent’s favour. Both the Authorities, i.e., State forum and National forum (as the first appellate authority) were, therefore, justified in overruling the objection of the appellant and were justified in holding that the complaint filed by the respondent was maintainable and the respondent was legally competent to file such complaint.- New India Assurance Co. Ltd. vs. G.N. Sainani, 1997 (6) SCC 383 and Oberai Forwarding Agency vs. New India Assurance Co. Ltd. & Anr. [2000(2) SCC 407]. We have perused these decisions and find that these are distinguishable on facts. In the latter decision, the question of locus was not expressly examined in the context of Section 17 but was examined in the context of Section 79 of the Act on different set of facts. Likewise, in the former case, the facts were different and again Section 17 of the Act did not fall for consideration. In any event, in the light of findings which we have recorded on the facts of this case against the appellant, the case law relied upon by the appellant is of no help to them.



                                                                  Reportable
                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO. 1004 OF 2006


      United India Insurance Co. Ltd.              Appellant(s)


                             VERSUS


      Leisure Wear Exports Ltd.                    Respondent(s)

                                    WITH

                        CIVIL APPEAL NO. 1016 OF 2006

      United India Insurance Co. Ltd.              Appellant(s)


                             VERSUS


      Leisure Wear Exports Ltd. Etc. Etc.          Respondent(s)


                       J U D G M E N T



     Abhay Manohar Sapre, J.
      1)    These appeals are filed by the United  India  Insurance  Company
      Ltd. against  the  common  final  judgment  dated  05.07.2004  of  the
      National Consumer Disputes Redressal Commission, New  Delhi  in  First
      Appeal Nos. 30-33 of 2000 by  which  the  National  Consumer  Disputes
      Redressal Commission dismissed their appeals and upheld the  order  of
      the State Consumer Commission.
      2)    These appeals involve a short point. However, to appreciate  the
      point, few facts need mention infra.
      3)    The appellant - United India Insurance Company Ltd. is the  non-
      applicant whereas the respondent - Leisure Wear Exports  Ltd.  is  the
      complainant  in  the  complaint  filed  before  the   State   Consumer
      Commission, Punjab out of which these appeals arise.
      4)    The respondent/complainant is engaged in the business of sale of
      various kinds of hosiery goods and ready-made  garments  at  Ludhiana.
      They also import  and  export  the  goods  in  which  they  trade.  On
      13.06.1996, the respondent obtained from the appellant one Open Marine
      Policy (Cargo) bearing No. 201002-21-99-042-96.  The  respondent  also
      paid necessary premium.   The policy covered the risk of all kinds  of
      hosiery goods and ready-made garments kept  in  wooden  and  cardboard
      cases sent from any part of India  to  any  friendly  country  in  the
      world.  The policy covered the risk under Institute Cargo Clause  ‘A’,
      Inland Transit Clause ‘A’ and risk of war, SRCC, Riots,  Strike  valid
      for “Warehouse to  warehouse  at  final  destination”.  The  insurance
      covered the risk of the insured goods to the extent of Rs.  2  crores.
      It was subject to terms and conditions as were mutually  agreed  upon.
      The policy was for the period from 13.06.1996 to 12.06.1997.
      5)    The respondent received  one  order  from  one  party-M/s  Magna
      Overseas, Moscow for supply of hosiery goods and  ready-made  garments
      to them at Moscow. The respondent accordingly dispatched 320 cardboard
      cartons in two separate consignments - one was under  cover  note  No.
      LDRO/26948 dated 20.06.1996 worth Rs.49,63,200/- and another was under
      cover note No. LDRO/28051 dated 28.06.1996 worth Rs.31,68,000/.    The
      respondent duly notified these transactions to the appellant(insurer).
       The export was to be made from Ex. Ludhiana to Moscow.
      6)    The consignments reached Mumbai Port  and  from  there,  it  was
      loaded in the ship for its final destination-Moscow. The  consignments
      landed at port Odessa in Ukraine and from there, the  consignment  was
      moved by road to Moscow. When the delivery was taken at Moscow, it was
      found short of 142 and 139 cartons respectively.
      7)    The matter was then reported to the Insurance  Company  who,  in
      turn, appointed M/s Ingostarkh Insurance Company Ltd., Moscow  as  the
      surveyors to investigate into the matter  and  assess  the  loss.  The
      surveyors confirmed the short delivery of the  cartons.  In  terms  of
      policy, the claim for the loss sustained by the consignee  was  lodged
      with M/s Ingostrakh Insurance Company in the first instance. They  did
      not settle it and hence the consignee  authorized  the  respondent  to
      file the  claim  against  the  appellant  for  recovery  of  the  loss
      sustained by them due to loss of their goods.
      8)    The respondent then filed two separate complaint petitions under
      the Consumer Protection Act  before  the  State  Consumer  Commission,
      Punjab against the appellant (Insurance Company) on  the  strength  of
      the  policy  issued  by  the  appellant  in  their   favour   claiming
      compensation for the loss of their goods while in  transit  and  which
      were duly insured by the respondent under the policy dated 13.06.1996.
      In substance, the case of the respondent in their complaint  was  that
      since the goods, which were lost, were admittedly got insured  by  the
      respondent with the  appellant  and,  therefore,  the  respondent  are
      entitled to claim compensation for the loss sustained by them from the
      appellant on the strength of the policy which covered  such  loss.  It
      was alleged that the policy was admittedly  in  force  when  the  loss
      occurred and hence  the  appellant  cannot  deny  their  liability  to
      compensate the respondent for the loss caused  to  the  goods  of  the
      respondent.
      9)    The appellant filed their written  statement  and  admitted  the
      factum of issuance of policy in respondent's favour so also the factum
      of the loss of goods sustained by the respondent while the goods  were
      in transit. Their main objection was that the respondent had no  right
      to file the complaint and claim compensation from the appellant on the
      strength of policy  in  question.   It  was  alleged  that  since  the
      respondent had already assigned the policy in question  in  favour  of
      their consignee, i.e., M/s Magna Overseas to whom the goods were  sent
      by them and, therefore, it was for the consignee/assignee to file  the
      complaint for realization  of  the  loss  amount  from  the  appellant
      (insurer) on the strength of the assignment of  the  policy.  It  was,
      therefore, alleged that once the respondent made the assignment of the
      policy in favour of the consignee then in such event,  they  lost  all
      their rights and interest in the policy qua the insurer and hence  had
      no locus to file the complaint against the  appellant.  The  complaint
      was, therefore, liable to be dismissed on this ground  alone.  Parties
      filed their evidence.
      10)   The State Consumer forum vide  order  dated  31.12.1999  allowed
      both  the  complaints  and  awarded  Rs.19,90,000/-  in  all  to   the
      complainant/respondent by way of compensation in each  complaint.  The
      compensation awarded to the respondent comprises of the reported value
      of the loss of the goods, 10% towards moral loss, 15% towards loss  of
      earning and  interest at the rate of 12% payable from 07.11.1996  till
      realization.
      11)   Felt aggrieved, the  appellant  filed  the  appeals  before  the
      National Consumer Disputes Redressal  Commission,  New  Delhi  out  of
      which this appeal arises.
      12)   By impugned order,  the  National  Consumer  Disputes  Redressal
      Commission dismissed the appeals and upheld the  order  of  the  State
      Consumer Commission.
      13)   Felt aggrieved, the Insurance Company has filed these appeals by
      way of special leave before this Court.
      14)   Heard Mr. Vishnu Mehra, learned counsel for  the  appellant  and
      Mr. Ashwani Kumar, learned counsel for the respondent.
      15)   Learned counsel for the  appellant  reiterated  the  submissions
      here, which they had urged before the two forums  unsuccessfully.  The
      submission  was  that  both  the  forums  erred  in  entertaining  the
      complaint filed by the respondent, which  deserved  dismissal  at  the
      threshold.
      16)   According to learned counsel, since the respondent assigned  the
      policy in question in favour of consignee (M/S Magna  Overseas),  they
      (respondent) ceased to have any subsisting  interest  in  the  policy,
      which they could enforce against the appellant. Learned counsel  urged
      that in these circumstances, a right to  file  the  complaint  on  the
      strength of policy and to seek its enforcement against  the  appellant
      was with the consignee and not with the respondent. It was, therefore,
      urged that the respondent had no locus to file the  complaint  against
      the appellant and seek enforcement of the  terms  of  the  policy  for
      realization of any claim arising out of the policy.
      17)   In reply, learned  counsel  for  the  respondent  supported  the
      reasoning and the conclusion  arrived  at  by  the  National  Consumer
      Redressal Commission and contended that  it  does  not  call  for  any
      interference and deserves to be upheld.
      18)   Having heard the learned counsel for the parties and on  perusal
      of the record of the case, we find no merit in the appeal.
      19)   The short question which arises for consideration in this appeal
      is whether the complaint petition filed by the  respondent  under  the
      Consumer  Protection  Act  against   the   appellant   (Insurer)   was
      maintainable or not or in other words whether the respondent  had  the
      locus to file the complaint on the strength of contract  of  Insurance
      Policy in question for claiming compensation for the loss sustained in
      the transaction?
      20)    Sections  17  and  52  of  the  Marine  Insurance   Act,   1963
      (hereinafter referred to as “the Act”) are relevant for  deciding  the
      abovesaid question.  They read as under :
           “Section 17. Assignment of interest.—Where the  assured  assigns
           or otherwise parts  with  his  interest  in  the  subject-matter
           insured, he does not thereby transfer to the assignee his rights
           under the contract of insurance, unless there be an  express  or
           implied agreement with the assignee to that effect.
                      But the provisions of  this  section  do  not  affect
           transmission of interest by operation of law.


           “Section 52. When and how policy is assignable.—


           (1)   A marine policy may be transferred by assignment unless it
           contains terms  expressly  prohibiting  assignment.  It  may  be
           assigned either before or after loss.


           (2)   Where a marine policy has been assigned so as to pass  the
           beneficial interest in such policy, the assignee of  the  policy
           is entitled to sue thereon in his own name; and the defendant is
           entitled to make any defence arising out of the  contract  which
           he would have been entitled to make if the suit had been brought
           in the name of the person by or on behalf of whom the policy was
           effected.


           (3)   A marine policy may be assigned by endorsement thereon  or
           in other customary manner.”


      21)   Section 52 provides as to when and how the marine policy may  be
      transferred. It says that  a  marine  policy  may  be  transferred  by
      assignment unless it  contains  express  terms,  which  prohibits  any
      assignment of the policy. It also provides that such assignment can be
      made before or after the loss has occasioned.
      22)   Sub-Section(2)of Section 52 provides that once the assignment is
      made then the assignee is entitled to sue  in  his  name  whereas  the
      insurer/defendant is also entitled to raise all such defences  against
      the assignee, which are available to him against the original  insured
      i.e. assigner.
      23)   Section 17 deals with "assignment  of  interest".   It  provides
      that where the assured assigns or otherwise parts with his interest in
      the subject-matter insured, he (insured) does not thereby transfer  to
      the assignee his rights under the contract of insurance  unless  there
      is an express or implied agreement with the assignee to  that  effect.
      This Section, however, does not affect  transmission  of  interest  by
      operation of law.
      24)   When we examine the undisputed facts of the case in the light of
      aforementioned two provisions, then in our considered opinion, Section
      17 has full application to the facts of the case.  In fact,  it  is  a
      complete answer to the submission urged by the learned counsel for the
      appellant.
      25)   It is not in dispute that there is no express agreement  between
      the respondent (insured) and M/s Magna Overseas  (consignee)  agreeing
      to transfer insured’s rights under the contract of insurance in favour
      of M/S Magna  Overseas  (consignee).  Under  these  circumstances,  by
      virtue of Section 17, the respondent is legally  entitled  to  retain,
      enjoy and exercise all those rights, which are available to them under
      the contract of insurance, which  they  have  entered  into  with  the
      appellant despite making the assignment of their policy in  favour  of
      the assignee.
      26)   Section 17, in terms, recognizes and permits the insured to make
      assignment of their contract of  insurance  policy  in  favour  of  an
      assignee and at the same time allows the insured even after making  an
      assignment to retain all those rights  which  are  available  to  them
      under the contract of insurance with the Insurer (appellant). In other
      words, in terms of Section 17, even after making an assignment by  the
      insured of their contract of insurance policy, the rights  of  insured
      under the contract of insurance policy are not assigned in  favour  of
      assignee by the deed of assignment but they are  continued  to  remain
      with the insured.
      27)   We are, therefore, of the considered view that  firstly,  we  do
      not find that  the  respondent  (insured)  assigned  the  contract  of
      insurance policy in favour of their  consignee  as  contended  by  the
      appellant. Secondly,  even  assuming  that  the  respondent  (insured)
      assigned  the  contract  of  insurance  policy  in  favour  of   their
      consignee, yet the assignment so made did not have any adverse  effect
      on the rights of the insured under the contract of insurance policy as
      the rights  continued to remain with them by virtue of Section  17  of
      the Act.
      28)   The respondent was, therefore,  legally  entitled  and  had  the
      locus to file a complaint against the appellant  on  the  strength  of
      contract of insurance policy for enforcement of their all  contractual
      rights available to them  under  the  insurance  policy  for  claiming
      compensation for the loss caused from the appellant and the  complaint
      so filed by the respondent could not be dismissed as not  maintainable
      on the ground of locus. It was thus rightly held as maintainable.
      29)   This takes us to the next argument of learned  counsel  for  the
      appellant. It was his submission  that  there  was  implied  agreement
      between the respondent and the consignee whereby  the  respondent  had
      transferred  all  their  rights  in  favour  of  the  consignee   and,
      therefore, the respondent  had  no  locus  to  file  a  complaint  for
      enforcement of those rights,  which  were  no  longer  with  them.  In
      support of his submission, learned counsel referred to  letters  dated
      30.06.1997, 08.07.1997, 04.07.1997 and some Paras from the  pleadings.
      We find no merit in this submission.
      30)   In our considered opinion, even if we accept, for  the  sake  of
      argument, that the respondent had  assigned  their  rights  under  the
      contract of Insurance policy in favour of their consignee  by  way  of
      endorsement as contended  by  the  appellant,  yet  in  the  light  of
      authorization letter dated 04.07.1997 duly issued by the consignee  in
      favour  of  the  respondent  authorizing  the  respondent  to  file  a
      complaint petition before the  Consumer  forum  for  recovery  of  the
      compensation, the respondent was entitled and had the locus to file  a
      complaint against the appellant for realization of compensation amount
      towards the loss sustained due to short delivery of the goods  on  the
      strength of the authorization letter for enforcement  of  contract  of
      insurance policy.
      31)   In view of  foregoing  discussion,  we  are  of  the  considered
      opinion that in any event,  the  complaint  filed  by  the  respondent
      (insured) was maintainable and that the respondent had  the  locus  to
      file the complaint against the appellant. It was, in our  view,  saved
      by Section 17 of  the  Act  and  by  the  authorization  letter  dated
      04.07.1997, issued by the consignee in respondent’s favour.
      32)   Both the Authorities, i.e., State forum and National  forum  (as
      the  first  appellate  authority)  were,   therefore,   justified   in
      overruling the objection  of  the  appellant  and  were  justified  in
      holding that the complaint filed by the  respondent  was  maintainable
      and the respondent was legally competent to file such complaint.
      33)   Learned counsel for the appellant then by referring  to  Section
      79 of the Act contended that the complaint filed by the respondent was
      not maintainable. We find absolutely no merit in this  submission.  In
      our view, Section 79 which deals with sabrogation does  not  apply  to
      the case at hand but  it is Section 17  read  with  Section  52  which
      governs the case in question.
      34)   Learned counsel for the appellant then placed  reliance  on  the
      decisions reported in  New India Assurance Co. Ltd. vs. G.N.  Sainani,
      1997 (6) SCC 383 and Oberai Forwarding Agency vs. New India  Assurance
      Co. Ltd. & Anr. [2000(2) SCC 407].  We have  perused  these  decisions
      and find that these  are  distinguishable  on  facts.  In  the  latter
      decision, the question of locus was  not  expressly  examined  in  the
      context of Section 17 but was examined in the context of Section 79 of
      the Act on different set of facts.  Likewise, in the former case,  the
      facts were different and again Section 17 of the Act did not fall  for
      consideration.  In any event, in the light of findings which  we  have
      recorded on the facts of this case against the appellant, the case law
      relied upon by the appellant is of no help to them.
      35)   So far as the findings relating to the merits of  the  case  are
      concerned, learned counsel for the appellant did not challenge any  of
      the findings in this appeal and in our opinion rightly. We, therefore,
      need not go into any of them.
      36)   In the light of aforesaid discussion, we find no merit in  these
      appeals which fail and are hereby dismissed.

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





                 ………..................................J.
                                      [ASHOK BHUSHAN]
      New Delhi,
      June 29, 2016.