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Wednesday, November 9, 2016

no doubt, an innocent man has lost his life at the hands of another man, and looking at the way in which the investigation was handled, we are sure to observe that it was carried out in a lackluster manner. The approach of the Investigating Officer in recording the statements of witnesses, collecting the evidence and preparation of site map has remained unmindful. The Investigating Officer, dealing with a murder case, is expected to be diligent, truthful and fair in his approach and his performance should always be in conformity with the police manual and a default or breach of duty may prove fatal to the prosecution’s case. We may hasten to add that in the present case the investigation was carried out with unconcerned and uninspiring performance. There was no firm and sincere effort with the needed zeal and spirit to bring home the guilt of the accused. We feel that there are no compelling and substantial reasons for the High Court to interfere with the order of acquittal when the prosecution has miserably failed to establish the guilt of the accused. Added to this, the accused has already undergone nine years’ of imprisonment and we feel that it is a fit case inviting interference by this Court. Resultantly, the appeal is allowed and the judgment of conviction and order of sentence passed by the High Court is set aside. =2016 Dec.http://judis.nic.in/supremecourt/imgst.aspx?filename=44290 - MAHAVIR SINGH Vs. STATE OF MADHYA PRADESH A.K. SIKRI, N.V. RAMANA


                                                                  REPORTABLE





                        IN THE SUPREME COURT OF INDIA


                       CRIMINAL APPELLATE JURISDICTION





                      CRIMINAL APPEAL NO. 1141 OF 2007





         MAHAVIR SINGH                                  … APPELLANT


                                   VERSUS


           STATE OF MADHYA PRADESH                    … RESPONDENT





                                  JUDGMENT





N.V. RAMANA, J.





This appeal arises out of the judgment and  order  dated  19th  March,  2007
passed by the High Court of Madhya Pradesh, Bench  at  Gwalior  in  Criminal
Appeal No. 36 of 1996 whereby the High Court has partly allowed  the  appeal
preferred by the State by confirming the judgment of  the  Trial  Court  for
the offence under Section 148 of IPC and convicted the appellant herein  for
the  offence  under  Section  302,  IPC  and  sentenced   him   to   undergo
imprisonment for life.





The brief facts of the case as culled out from the case of  the  prosecution
are that on 26th December, 1987 at about 1 p.m. while Gambhir Singh  (PW  7)
(brother of the deceased) was having lunch at his home, the appellant  along
with a group of co-accused persons, each armed with  deadly  weapons  rushed
to his house hurling abusive filthy words and picked up a quarrel  with  his
brother Jagannath Singh (deceased) who was sitting  outside  on  a  platform
(Chabutara) along with his nephew Bir Singh (PW 11).  When  Jagannath  Singh
(deceased) raised  objection  to  their  behavior,  the  appellant  fired  a
gunshot in the abdomen of the deceased as a result of which he fell down  on
the ground and succumbed to the injuries.






Gambhir Singh (P.W. 7) carried the  body  of  the  deceased  to  the  police
station, Lahar on a bullock cart and lodged the FIR (Annexure P-1)  at  4.15
PM on the same day. Dilip Singh Yadav (PW-13) prepared inquest memo and  Dr.
A. K. Upadhyay (P.W. 12) conducted autopsy on the dead body.   On  the  next
day, Dilip Singh Yadav (PW 13) seized blood  stained  soil  and  plain  soil
from the place of occurrence, as per seizure memo. He also seized a gun,  12
live cartridges and 9 empty cartridges  from  the  possession  of  appellant
Mahavir Singh, an axe from Sobaran (co-accused) and  a  lathi  from  Kanched
Singh (another co-accused)  as  per  seizure  memo  and  sent  them  to  the
Forensic Science Laboratory at Sagar. Consequently, statements of  witnesses
were  recorded  under  section  161  of  Cr.P.C.,  spot  map  was   prepared
and Charge-sheet was filed against the appellant under  sections  302,  147,
148 and 149 of the IPC in the Court  of  Judicial  Magistrate  First  Class,
Lahar who committed the case to Court  of  Sessions  for  Trial.  The  Trial
Court framed charges u/s 302 and 148 of IPC against the appellant and  under
sections 148, 302/149 of IPC against co-accused.  All  the  accused  pleaded
not guilty and claimed to be tried. To prove the guilt of the  accused,  the
prosecution has examined 13 witnesses and marked several Exhibits while  the
accused examined none in defence and no exhibits were marked on his behalf.





The Trial Court  by  its  judgment  and  order  dated  30th  November,  1994
acquitted the appellant from the alleged offences mainly on the ground  that
there are contradictions in the evidence of eyewitnesses to that of  medical
evidence, prosecution has failed to prove beyond reasonable doubt  formation
of unlawful assembly with a motive of committing murder of the deceased  and
also failed to establish that the bullet had been  fired  with  the  firearm
seized from the appellant.



Dissatisfied with the Judgment of the Trial Court, the  State  preferred  an
appeal before the High Court claiming that the judgment of the  Trial  Court
is perverse and illegal inasmuch as it did not  appreciate  the  prosecution
evidence in right perspective and ignored the evidence of the  eyewitnesses.
The High Court, on a reanalysis of evidence  of  prosecution  witnesses  and
other material available on record came to the  conclusion  that  the  Trial
Court was right in acquitting the other co-accused persons but  found  fault
with the acquittal of the appellant under Section 302 IPC. The  High  Court,
therefore, partly allowed the appeal  by  confirming  the  judgment  of  the
Trial Court in respect of the charge under Section  148  and  convicted  the
appellant herein for the offence under Section 302, IPC  and  sentenced  him
to undergo imprisonment for life. Aggrieved by  the  Judgment  of  the  High
Court, the appellant approached this Court in appeal.





Learned counsel for the appellant submitted that  the  Trial  Court  rightly
acquitted the appellant,  after  elaborately  considering  the  evidence  on
record, upon coming to the conclusion that there is lack of  credibility  in
the testimony of the prosecution witnesses, and, in particular, the  medical
and ocular testimonies are conflicting; there was considerable delay on  the
part  of  Investigating  Officer  in  recording  the  evidences  of  alleged
eyewitnesses inasmuch  as  statements  by  none  of  the  eyewitnesses  were
recorded on the day of occurrence of the incident.





In the background of this factual matrix, learned counsel for the  appellant
has advanced his arguments that since the appellant and victim parties  have
prior enmity over some pending criminal cases, the  family  members  of  the
deceased, i.e., Gambhir Singh (PW 7), Shanti Devi (PW 8), Bir Singh (PW  11)
in connivance and with the help of a  pocket  witness  Madho  Singh  (PW  9)
concocted the story, by projecting himself as  an  eyewitness,  and  falsely
implicated  the  appellant.  According  to  him,  this   fact   is   clearly
established  with  the  contradictions  in  the  medical  evidence  and  the
unreliable evidence of the alleged interested eyewitness.  The  presence  of
Gambhir Singh (PW 7), at the time of occurrence, as heavily relied  upon  by
the prosecution, proves to be false in the light of evidence  of  Bir  Singh
(PW 11) who nowhere in his testimony mentioned that  Gambhir  Singh  (PW  7)
alone came out of the house and witnessed the incident and Madho  Singh  (PW
9) claimed that soon after the shooting, Gambhir Singh  (PW  7),  Bir  Singh
(PW 11) and Shanti Devi (PW 8) came out  of  the  house  and  therefore  the
accused fled away from the spot. It  is  also  contended  that  the  alleged
eyewitnesses Gambhir Singh (PW 7), Bir Singh  (PW 11) and  Shanti  Devi  (PW
8) made material improvements in  their  testimonies  before  the  Court  in
order to connect the case of prosecution with the medical report. Thus,  the
presence of the eyewitnesses at the place of occurrence is doubtful.





Learned counsel further urged that as per the  site  plan  prepared  by  the
Investigation Officer and also as per the  medical  evidence,  the  deceased
Jagannath Singh was standing when he was  shot.  According  to  the  medical
report, the injuries sustained by the deceased are possible  only  when  the
assaulter stands at a height above the victim. Contrary to  this,  the  case
advanced  by  the  prosecution,  coupled  with  the  evidence   of   alleged
eyewitness, is that the appellant was standing on  a  lower  level  and  the
deceased was standing on a  higher  level  i.e.  on  the  platform.  In  his
statement Madho Singh (PW 9) categorically mentioned that the  deceased  was
sitting on the platform (Chabutara) and the appellant was  standing  on  the
ground, when he was shot.  While  the  medical  report  indicated  that  the
margins of the wounds were inverted and the  bullet  must  have  been  fired
from a distance of within 6 feet, and as per the testimonies of  the  direct
eyewitnesses, the said distance varied between 12 to 22.5 feet. The  absence
of human blood at the alleged place of incident i.e.  on  the  platform  and
presence of blood on the ground in front of  the  platform  further  renders
the prosecution’s case even more doubtful. This  blood  also  could  not  be
matched with that of the deceased and therefore, recovery of weapons  is  of
no relevance. Simply for the reason that the  post-mortem  report  indicated
that the deceased had died due to one single gunshot, and mere  recovery  of
nine empty cartridges from the appellant does not in  any  way  connect  him
with the crime, when the empty cartridges were not recovered from the  place
of incident and also in the absence of authenticated proof that  the  bullet
shot at the deceased was fired from the gun owned by the appellant.  Learned
counsel thus submits that the statements of eyewitness are not  trustworthy.
Considering the facts in  their  entirety,  such  as  delayed  recording  of
statements of the eyewitnesses and an unsuccessful attempt to reveal  as  to
where the bullet had struck the  victim  and  the  unmatched  statements  by
prosecution witnesses with that of the medical  expert,  the  learned  Trial
Court was pleased to record the order of acquittal of the appellant.





The learned counsel finally submitted that the  High  Court,  on  the  other
hand, failed to appreciate  the  evidence  in  true  legal  perspective  and
wrongly interfered with the well reasoned judgment of  acquittal  passed  by
the Trial Court based on a cogent and detailed reasoning and that  the  High
Court committed a grave error by acquitting  the  accused  for  the  offence
under Section 302 IPC. The impugned judgment  is  contrary  to  the  settled
legal principles as it did not give due weightage to  the  medical  evidence
and rejected the same without ascribing any reason.  Thus,  interference  by
the High Court with the reasoned judgment of acquittal passed by  the  Trial
Court is unwarranted. Learned counsel submits that in the light  of  settled
legal principles, the conviction of the  appellant  by  the  High  Court  is
vague and uncalled for and the same requires to be set aside by this  Court.






On the other hand, learned counsel appearing for the State, argued that  the
judgment of the Trial Court acquitting the appellant  was  wholly  erroneous
as it was passed without taking into account  the  prosecution  evidence  in
its right perspective.  There  was  no  inconsistency  in  the  evidence  of
eyewitnesses who were very much present at the  scene  of  offence  and  the
Trial Court was not justified in ignoring their evidences. The  High  Court,
after re-appreciating the entire evidence  on  record,  took  a  justifiable
stand in convicting the accused under Section 302  of  the  IPC  by  a  well
reasoned judgment and that there is  no  illegality  or  perversity  in  the
conviction of the accused calling interference by this Court.


We have heard the learned counsel on either side at length and  perused  the
material available on record. Now it is imperative to look  into  the  scope
of interference by the appellate Court in an appeal  against  acquittal  and
whether the High  Court  was  justified  in  convicting  the  accused  under
Section 302, IPC by reversing the order of acquittal  passed  by  the  Trial
Court.





In the criminal jurisprudence, an accused is presumed to  be  innocent  till
he is convicted by a competent Court after a full-fledged  trial,  and  once
the  Trial  Court  by  cogent  reasoning  acquits  the  accused,  then   the
reaffirmation of his innocence places more burden  on  the  appellate  Court
while dealing with the appeal. No doubt, it is settled law  that  there  are
no fetters on the power of the appellate Court to review,  reappreciate  and
reconsider the evidence both on facts  and  law  upon  which  the  order  of
acquittal is passed. But the court has to be very  cautious  in  interfering
with an appeal unless  there  are  compelling  and  substantial  grounds  to
interfere with the order of acquittal. The appellate Court while passing  an
order has to give clear reasoning for such a conclusion.





It is no doubt true that there cannot be any strait  jacket  formula  as  to
under what circumstances appellate Court can interfere  with  the  order  of
acquittal, but the same depends on facts and circumstances of each case.  In
the case on hand, we have to examine the rationale behind the conclusion  of
the High Court in convicting the  accused  and  the  compelling  reasons  to
deviate from the order of acquittal passed by the Trial Court.





On a thorough analysis of the judgment impugned,  it  is  evident  that  the
High Court has not  recorded  any  reasons  for  partly  setting  aside  the
judgment of the Trial Court which has  acquitted  all  the  accused  persons
from the same set of facts before it. The High Court  which  has  set  aside
the acquittal order of the Trial Court has observed  that  the  Trial  Court
has based its reasoning on guess work. We find it that even the  High  Court
has committed the same mistake and basing on the same facts and  guess  work
has arrived at the conclusion that the appellant is guilty.





It is specifically urged by the learned counsel for the  appellant  that  as
per the medical  evidence,  the  injuries  sustained  by  the  deceased  are
possible only when the assaulter stands at a height  above  the  victim.  In
this process, the court has guessed that Mahavir  Singh  (accused-appellant)
and Jagannath (deceased) were of similar height which is nobody’s  case  and
no evidence is available on record to come to a conclusion that  the  height
of the two is same. The evidence available on record in  this  regard  is  a
statement of Dr. A.K. Upadhyay (PW 12) that  the  deceased  was  of  average
Height. Now in order to establish that the bullet  traveled  in  a  downward
direction, they have explained that the position of the gun usually kept  in
a downward position resting on the chest. Now  the  logical  fallacy  is  to
have assumed the height of the platform whose height has not  been  recorded
due to sloppy investigation by the Investigating Officers.  There  exists  a
reasonable doubt because of the fact that the height  of  the  platform  was
not recorded and the same cannot be guessed at this point of time.  Further,
the deposition of the Doctor is very clear that the shooter might have  been
at a lower level. While some  of  the  witnesses  have  suggested  that  the
deceased was on the ground while others have pointed out to  the  fact  that
he was standing on the platform. Therefore, from the same set of facts,  the
Trial  Court  as  well  as  the  High  Court  have  arrived   at   different
conclusions, such an exercise cannot be undertaken by the High Court  in  an
Appeal unless the conclusion drawn by the Trial Court  cannot  be  sustained
based on the facts and circumstances and when two conclusions  are  possible
based on the evidence available on record, the  appellate  court  should  be
all the more reluctant to interfere with the findings recorded by the  Trial
Court.


It appears to us that the difference of opinion between the Courts below  in
deciding whether or not the appellant has committed the offence  with  which
he is charged,  mainly  revolves  around  the  presence  of  alleged  direct
eyewitnesses at the spot,  possibility  of  appellant’s  inflicting  firearm
injury to the deceased in view of the positioning of  the  injury  sustained
by the deceased, the material infirmity, if any, and  contradiction  in  the
ocular and medical evidence. It is,  however,  clear  that  though,  at  the
outset,  the  accused/appellant  absolutely  rejected  the  allegation   and
pleaded not guilty by taking the defence of  alibi  that,  on  the  date  of
incident, he was irrigating his field, but his claim has not been  supported
by any evidence.





Undoubtedly, Gambhir Singh (PW 7—brother of the deceased) has accepted  that
certain criminal proceedings  were  pending  between  the  accused  and  his
family members. He also admits that one case had already been filed  by  the
accused prior to the incident. Admittedly, Shanti Devi  (PW  8—wife  of  the
deceased) also has deposed that there was an  altercation  between  her  son
Vijender and Dhullu, on which they killed her  husband.  Thus,  the  parties
are admittedly in hostile terms and the incident in question occurred  in  a
broad day light at the residence of the deceased by doing away his  precious
life. The prosecution, in support of its version, has  heavily  relied  upon
the statements of eyewitnesses Gambhir  Singh  (PW  7-complainant  and  also
brother of the deceased), Shanti Devi (PW 8-wife  of  the  deceased),  Madho
Singh (PW 9) and Bir Singh (PW  11-nephew  of  the  deceased).  The  learned
Trial Judge disbelieved the presence of eyewitnesses on the spot in view  of
delayed recording of their statements by the Investigating Officer  (PW  13)
and also they remained unsuccessful in revealing exactly  as  to  where  the
bullet had struck the deceased. We also  find  that  nowhere  in  the  First
Information Report, the name or presence of eyewitness Shanti  Devi  (PW  8)
was mentioned as a witness to the incident.





The High Court has attached a lot of weight to  the  evidence  of  the  said
Madho Singh (PW 9) as he is  an  independent  witness.  On  perusal  of  the
record, it appears that the said person already had deposed for  the  victim
family on a  number  of  previous  occasions,  that  too  against  the  same
accused. This being the fact, it is important to analyze  the  jurisprudence
on interested witness. It is  a  settled  principle  that  the  evidence  of
interested witness needs to be scrutinized with utmost care. It can only  be
relied upon if the evidence has a ring of truth to it, is  cogent,  credible
and trustworthy. Here we may refer to chance witness also. It is to be  seen
that although the evidence of a chance witness is acceptable in  India,  yet
the  chance  witness  has  to  reasonably  explain  the  presence  at   that
particular point more so when his deposition  is  being  assailed  as  being
tainted.





A contradicted testimony of an interested witness cannot be usually  treated
as conclusive. The said Madho Singh (PW 9) has admitted that he has  been  a
witness in another case against the accused for the deceased. Here it is  to
be seen that the said Madho Singh  (PW  9)  has  been  acting  as  a  pocket
witness for  the  family.  Further,  the  credibility  of  this  independent
witness can be challenged on the fact that the commotion was only  heard  by
the said Madho Singh (PW 9) whereas the rest of the members of the  locality
did not come for help.  As Madho Singh (PW 9) is a chance  witness  as  well
as an interested witness herein,  causes  suspicion  and  does  not  inspire
confidence. This admission by Madho Singh (PW  9)  not  only  forces  us  to
doubt the veracity of his own deposition but also has created doubts on  the
version of Gambhir Singh (PW 7).





We have thoroughly examined the evidence of  expert  witnesses  as  well  as
other ocular witnesses. The evidence of Dr. A.K. Upadhyay  (PW  12)  reveals
that when the deceased sustained bullet injury, he  might  have  been  in  a
standing position and the bullet would  have  entered  from  left  side  and
exited from right side of the body. This fact,  however,  corroborated  with
the evidences of PW 7 (Gambhir Singh)  and  PW  8  (Shanti  Devi),  but  the
statements of PW 9 (Madho Singh) and PW 11 (Bir Singh) do  not  support  it.
Similarly, there were contradictions between the statements of Dr.  Upadhyay
(PW 12) and that of the eyewitnesses as to the distance and  height  of  the
assaulter while inflicting the grievous injury to the deceased  and  whether
the deceased was standing on the platform (Chabutara) or came down  from  it
while receiving the bullet  injury.  We  find  from  the  statement  of  Dr.
Upadhyay (PW 12) that he was not clear and  definite  to  say  exactly  from
what position and distance the assaulter could have fired the gun.





Going by the seizure memo (Ex.P/3) apparently one gun, 12 live and  9  empty
cartridges were recovered from the appellant. The evidences of  eyewitnesses
support this fact and no question was put to the I.O. after the recovery  of
the gun and cartridges, that whether he himself shot from the seized gun  to
create evidence. The prosecution’s story is  somewhat  strengthened  by  the
ballistic expert’s report (Ex. P/12) which affirms that the gun seized  from
the appellant was in perfect order,  the  empty  cartridges  bore  the  same
impression on pin as seized from the accused and the  live  cartridges  were
actually fired by the gun seized from the appellant.   But  nowhere  it  was
mentioned that the death of the victim occurred by the bullet released  from
the  seized  gun.  Merely  the  seizure  of  gun  and  cartridges  from  the
appellant, the ongoing enmity between the  parties  on  account  of  various
criminal litigations and  the  altercation  and  exchange  of  heated  words
between the rival groups on the morning of the same  day,  cannot  establish
the guilt of accused beyond reasonable doubt.





The position of law in cases where there is a contradiction between  medical
evidence and ocular evidence can be crystallized to the effect  that  though
the ocular testimony of a witness has greater  evidentiary  value  vis-à-vis
medical  evidence,  when  medical  evidence  makes  the   ocular   testimony
improbable, that becomes a relevant factor in the process of the  evaluation
of  evidence.  However,  where  the  medical  evidence  goes  far  that   it
completely rules out all possibility of the ocular evidence being true,  the
ocular evidence may be disbelieved [See : Abdul Sayeed v .  State  of  M.P.,
(2010) 10 SCC 259]





In view of contradictory statements by  the  prosecution  witnesses  coupled
with the unmatched medical evidence, delay in  recording  of  statements  of
witnesses by the I.O., non-availability of  proper  site  plan  and  in  the
absence of authenticated ballistic expert report that the  bullet  had  been
fired with the seized gun of the appellant, the Trial Court  had  to  decide
the case against the  prosecution  and  discharge  the  appellant  from  the
charges. The High Court, upon carrying the  exercise  of  reappreciation  of
evidence, formed the view that  the  reasons  for  delay  in  recording  the
statements of witnesses have been properly explained; that as  soon  as  the
bullet struck on the abdomen of the deceased, he immediately fell down  from
the platform. It further observed that though the name of  Shanti  Devi  (PW
8) was not mentioned in the FIR, there is positive  evidence  on  record  to
establish  her  presence  at  the  time  of  incident   along   with   other
eyewitnesses and this fact  has  been  established  by  their  corroborative
statements and there is no reason to disbelieve their  statements.  Here  it
is worthwhile to mention that both the Courts below formed a common  opinion
that the prosecution has failed to prove the charges under Sections 148  and
302/149 of IPC  against  the  co-accused  and  discharged  them  from  those
charges. The disagreement between the Trial Court  and  the  High  Court  is
only in respect of the charge under Section 302, IPC against the appellant.





It is the duty of the Apex Court to separate chaff  from  the  husk  and  to
dredge the truth from the pandemonium of Statements. It is but  natural  for
human beings to state variant  statements  due  to  time  gap  but  if  such
statements  go  to  defeat  the  core   of   the   prosecution   then   such
contradictions are material  and  the  Court  has  to  be  mindful  of  such
statements [See : Tahsildhar Singh v. State of UP, AIR 1959 SC  1012;  Pudhu
Raja v. State, (2012) 11 SCC 196; State of UP v. Naresh, (2011) 9 SCC  698].
The case in hand is a fit case, wherein  there  are  material  exaggerations
and contradictions, which inevitably raises doubt  which  is  reasonable  in
normal circumstances and keeping in view the substratum of  the  prosecution
case, we cannot infer beyond reasonable doubt that the appellant caused  the
death of the deceased.





Normally, when a culprit perpetrates a heinous crime  of  murder  and  takes
away the life of a human being, if appropriate punishment is not awarded  to
that offender, the Court will be failing  in  its  duty.  Such  crime,  when
indulged by a criminal blatantly, is not  committed  against  an  individual
alone, but is committed against the society as well to  which  the  criminal
and victim are a part. It  needs  no  emphasis  from  this  Court  that  the
punishment to be awarded for such a crime must be  relevant  and  it  should
conform to and be consistent with the atrocity and brutality with which  the
crime has been carried out.





Here in the instant case, no doubt, an innocent man has  lost  his  life  at
the hands of another man, and looking at the way in which the  investigation
was handled, we are sure to observe that it was carried out in a  lackluster
manner.  The  approach  of  the  Investigating  Officer  in  recording   the
statements of witnesses, collecting the evidence  and  preparation  of  site
map has remained  unmindful.  The  Investigating  Officer,  dealing  with  a
murder case, is expected to be diligent, truthful and fair in  his  approach
and his performance should always be in conformity with  the  police  manual
and a default or breach of duty may prove fatal to the  prosecution’s  case.
We may hasten to add that in the present case the investigation was  carried
out with unconcerned and uninspiring performance.  There  was  no  firm  and
sincere effort with the needed zeal and spirit to bring home  the  guilt  of
the accused. We feel that there are no compelling  and  substantial  reasons
for the High Court to  interfere  with  the  order  of  acquittal  when  the
prosecution has miserably failed to establish  the  guilt  of  the  accused.
Added  to  this,  the  accused  has  already  undergone   nine   years’   of
imprisonment and we feel that it is a  fit  case  inviting  interference  by
this Court.





Resultantly, the appeal is allowed and the judgment of conviction and  order
of sentence passed by  the  High  Court  is  set  aside.  Consequently,  the
appellant shall be set at liberty forthwith if not  required  in  any  other
case.











……………………………..J. (A.K. SIKRI)











…………………………….J. (N.V. RAMANA)








NEW DELHI,


NOVEMBER 09, 2016



The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002-when another application was filed under Section 17(1) of the Act, the cause of action was different. At an earlier point of time, the issuance of notice as well as notice for sale of the flat had been challenged, whereas the subsequent application had been filed after the auction had been held. The cause of action in respect of both the applications was not same and therefore, in our opinion, the second application for a different cause of action was maintainable.=2016 Dec.http://judis.nic.in/supremecourt/imgst.aspx?filename=44294 - OASIS DEALCOM PVT. LTD. Vs. KHAZANA DEALCOMM PVT.LTD. & ORS. ANIL R. DAVE, UDAY UMESH LALIT

                                                              NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                    CIVIL APPEAL Nos.10676-10677 OF 2016
                     (@ SLP (C) No. 32638-32639 of 2011)






M/s Oasis Dealcom Pvt. Ltd.                         ….Appellant


                                VERSUS



Khazana Dealcomm Pvt. Ltd. & Ors.            ...Respondents



                       J U D G M E N T



ANIL R. DAVE, J.

1.    Leave granted.

2.     The  present  appeals  are  directed  against  the   judgment   dated
24.08.2011 rendered by the High Court of Calcutta, whereby  the  High  Court
has dismissed the revision petition filed by  the  appellant  under  Article
227 of the Constitution  of  India  and  affirmed  the  order  of  the  Debt
Recovery Appellate Tribunal, Calcutta.



3.    The facts of the case, in a nutshell, are as under :

Respondent nos. 2 and  3  are  the  principal  shareholders,  directors  and
persons in charge of Respondent No.1 Company.  Respondent No. 4  (ING  Vysya
Bank) had granted financial assistance to Respondent nos.1 to 3  by  way  of
“Cash Credit facility”.  In consideration of the aforesaid loan,  Respondent
nos.1 to 3 had furnished security in terms of  (a)  Hypothecation  of   Book
Debts, (b) Equitable mortgage of residential flat bearing no.  1-C  at  7/1,
Queens Park, Kolkata-700019 and (c) pledge of LIC Policy for an assured  sum
of Rs.8 lakh in name of Respondent No.3.

4.    Respondent nos. 1 to 3 defaulted in the  repayment  of  the  loan  and
thus, the account was classified as “Non-performing Asset” with effect  from
1.12.2008 in accordance with the directions of Reserve Bank of India. As  on
31st December, 2008, a sum of Rs.37,01,758.49 (Rupees Thirty seven lakh  one
thousand seven hundred  fifty  eight  and  forty  nine  paise),  along  with
applicable interest @ 15% per  annum  and  penal  interest  was  outstanding
against the said Respondents.

5.    Accordingly, a notice dated 17th January, 2009 under  Section  13  (2)
of  The  Securitisation  and  Reconstruction   of   Financial   Assets   and
Enforcement of Security Interest Act, 2002 (hereinafter referred to as  “the
Act”) read with Rule 9 of the Security Interest  (Enforcement)  Rules,  2002
(hereinafter referred to as “the Rules”) was served  upon  Respondent  nos.1
to 3 calling upon them to pay the   aforementioned  sum  along  with  future
interest within 60 days from the date of the said notice and they were  also
instructed not to create any third party interest in the secured  assets  by
way of sale, lease or otherwise. The aforesaid notice was  duly  replied  to
by Respondent No.1 Company vide letter dated 14th March, 2009  by  disputing
the amount and requesting Respondent no. 4 bank  to  give  certain  credits.
Respondent no.4 gave a reply vide its  letter  dated  20th  March,  2009  to
letter dated 14th March, 2009 by asserting that notice dated  17th  January,
2009 had been correctly issued as per the provisions of Section  13  (2)  of
the Act.

6.    It is apposite to state that Respondent No.  4  bank  vide  possession
notice dated 10th August, 2009 took “symbolic possession”  of  the  property
in question i.e. Residential Flat No. bearing 1C  (1st  Floor)  situated  at
premises no. 7/1, Queens Park, Kolkata-700019 (hereinafter  referred  to  as
“the flat”) which was in the names of Respondent nos. 2 and 3.

7.    Being aggrieved by said notice dated  10th  August,  2009,  Respondent
nos. 1 and 3 preferred application no.92/2009 under Section 17 of Act,  2002
on 15th September, 2009 against Respondent no.4 bank  by  stating  that  the
act of taking symbolic possession of  the  flat  in  question  was  illegal,
without jurisdiction and was in violation of the Act  and  Regulations  made
thereunder, primarily for the reason that no advertisement was published  in
the newspaper in terms of Rule 8 (2) of the Rules and no  possession  notice
under Rule 8 (1) was affixed on the said  property  and  hence,  prayed  for
quashing of notice dated 17th January, 2009 and also for quashing all  steps
taken under the Act.

8.    Taking cognizance of the aforesaid application, the learned  Presiding
Officer,  DRT,  Kolkata  vide  order  dated  17th  December,  2009  directed
Respondent nos.1 and 3 to pay a sum of  Rs.15  lakh  before  26th  December,
2009 and directed the Respondent bank to maintain  status-quo  and  in  case
the borrowers fail to deposit the  said  sum  before  the  stipulated  date,
Respondent no. 4 bank would be at liberty  to  proceed  in  accordance  with
law.

9.    Being dissatisfied with the order dated 17th December, 2009 passed  by
the DRT, Kolkata, Respondent nos.1 and 3 filed a Petition under Article  227
of the Constitution of India before the High Court and the High  Court  vide
order dated 24th December, 2009 modified the order passed by the DRT to  the
extent that instead of paying a sum of Rs.15 lakh to the  bank  before  26th
December, 2009, bank guarantee  for  Rs.10  lakh  be  furnished  before  2nd
January, 2010 and the hearing was adjourned to 4th January, 2010.

10.   On 4th January, 2010, when the matter was taken  up  before  the  High
Court, an adjournment was sought for by the borrowers and it  was  submitted
on behalf of the Respondent bank that bank  guarantee  for  Rs.10  lakh,  as
ordered, had not been furnished by the borrowers.

11.   In the light  of  the  aforestated  situation,  Respondent  no.4  bank
issued a  notice  dated  4th  January,  2010  for  auctioning  the  flat  by
referring to an earlier auction notice dated 10th November, 2009, which  had
been  published  in  newspapers  “The  Statesman”  (English)  and   “Aajkal”
(Bengali).  The auction was to take place  on  6th  January,  2010  and  the
reserve price of the flat was Rs.1,48,00,000/-(Rupees one crore forty  eight
lakh only).

12.   In terms of the  aforestated  notice  dated  4th  January,  2010,  the
Appellant (M/s Oasis Dealcom Pvt. Ltd) submitted its  bid  to  purchase  the
flat, who was the sole bidder.  Respondent no.4 bank, vide its letter  dated
6th January, 2010 accepted the bid for a sum of Rs.1,48,00,000/- and on  the
same day, confirmed the  sale  in  terms  of  the  provisions  of  the  Act.
Respondent no.4 bank vide letter dated 9th January, 2010 also issued a  sale
certificate in favour of the Appellant as per Rule 9 (6) of the Rules.

13.   On 11th January, 2010, when the Petition came up  for  hearing  before
the High Court, it  was  noticed  that  the  bank  guarantee  had  not  been
furnished by the borrowers in terms of its order dated 24th  December,  2009
and the Respondent bank had sold the property in question to  the  Appellant
company.

14.   When the matter was placed before the Debt Recovery  Tribunal  on  7th
January, 2010, the Tribunal recorded the fact that the flat  had  been  sold
and therefore, virtually the proceedings had become  infructuous.   However,
the matter was adjourned to 5th  March,  2010,  to  enable  the  parties  to
complete the pleadings.  However, on  14th  January,  2010,  the  Respondent
borrowers filed an application for depositing the amount payable but on  the
same day,  taking  judicial  notice  of  the  subsequent  developments,  the
Tribunal dismissed the said application as it had become infructuous.

15.   In the  aforestated  circumstances,  the  Respondent  borrowers  filed
another application under Section 17(1) of the Act challenging the  validity
of the demand notice dated 17th January, 2009 and  sale  of  property  which
had taken place in January 2010 in  pursuance  of  the  aforestated  notice.
The Tribunal ordered to maintain status-quo as on 28th January, 2010.

16.   Being aggrieved by the order of the Tribunal, Writ Petition No.169  of
2010 was filed by the present Appellant i.e. the auction purchaser, but  the
High Court disposed of the Petition as the matter  was  pending  before  the
Tribunal.  Ultimately, the Tribunal passed an order dated  10th  June,  2010
in O.A. No.4 of 2010  setting  aside  the  sale  certificate.   However,  it
permitted the borrowers to make  payment  within  three  weeks  and  if  the
amount was paid within three weeks, the bank  was  directed  to  refund  the
purchase money to the Appellant with 8% interest thereon.

17.   Being aggrieved by the said order, the Appellant filed  Writ  Petition
No.7087 of 2010 challenging the validity of the order dated 10th June,  2010
passed by the Tribunal and the said petition was disposed of with a  liberty
to the Appellant to approach the Debt Recovery Appellate Tribunal.

18.   By an order dated 18th February, 2011,  the  Debt  Recovery  Appellate
Tribunal confirmed the order passed by the Tribunal observing that  material
irregularities had been committed in conducting the auction sale and in  the
circumstances,  the  auction  purchaser  as  well  as  the  respondent  bank
separately challenged the validity of the said order  dated  18th  February,
2011 before the High Court and the High Court confirmed the order passed  by
the Debt Recovery Appellate Tribunal by an order dated 24th August, 2011.

19.   Being aggrieved by the said judgment  and  order  dated  24th  August,
2011, the present appeals have been filed by the auction purchaser .

20.   The Appellant was represented by one of its Directors,  Shri  Agarwal,
who appeared in person.  He submitted that the amount of purchase price  had
already been paid and as  the  entire  proceedings  had  been  conducted  in
accordance with the provisions of the Act as well as  the  Rules,  the  High
Court committed an error by setting aside  the  auction  sale.   He  further
submitted that there was neither any fraud nor any illegality in  conducting
the auction of the flat. He  also  submitted  that  necessary  notice  under
Section 13 had already been issued to the Respondent borrowers  and  as  the
borrowers had  failed  to  make  payment  after  publication  of  notice  in
newspapers as per the provisions of the  Act  as  well  as  the  Rules,  the
property in question had been  sold  by  holding  an  auction.   He  further
submitted that the price offered by the Appellant was just and fair,  though
nobody else had participated in the bid.  According to him,  wide  publicity
had also been given to the auction.  In view of the  fact  that  the  entire
amount had been paid, according to him, the sale ought not to have been  set
aside.  He further submitted that sufficient opportunity had been  given  to
the borrowers to make the payment at an earlier point of time, but they  had
failed to make payment of  their  dues  to  the  creditor  bank.   Moreover,
according to him, the borrowers had also failed to furnish  bank  guarantee,
as directed earlier and the said  fact  had  been  duly  considered  by  the
Tribunal at an earlier point of time and as  the  borrowers  had  failed  to
furnish the bank guarantee, the creditor  bank  had  rightly  confirmed  the
sale in favour of the Appellant company.

21.   On the other hand, the learned counsel for  the  Respondent  borrowers
had submitted that several serious irregularities had been committed by  the
bank in conducting the auction.  Requisite notice, as required  as  per  the
Rules, had not been given and he had supported  the  judgment  delivered  by
the High Court.  According to him, if for any reason  the  auction  sale  is
postponed, the entire process for holding  the  auction  should  be  started
afresh and as no fresh notice was given before conducting the  auction,  the
sale effected by the bank was  absolutely  improper  as  held  by  the  High
Court.  He had thus supported the reasons assigned by  the  High  Court  for
setting aside the auction sale.

22.   On behalf of the Respondent bank, the learned counsel  submitted  that
the bank  was  prepared  to  accept  the  amount  due  and  payable  by  the
respondent borrower and in that event it would return  the  amount  received
from the Appellant along with interest thereon,  as  directed  by  the  High
Court.

23.   Upon hearing the learned counsel  and  going  through  the  concurrent
findings of fact arrived at by the Debt Recovery Appellate Tribunal as  well
as the High Court, we have no doubt about the  fact  that  undue  haste  was
made by the creditor bank in holding the auction.  The creditor  bank  could
have waited for some time when  the  proceedings  were  pending  before  the
Tribunal as well as  the  High  Court  before  conducting  the  auction  and
confirming the sale.  We do not find any reason to  disturb  the  concurrent
findings arrived at by the Debt Recovery Appellate Tribunal as well  as  the
High Court about the irregularities committed in holding the auction.

24.   A submission had been made on behalf of the Appellant that the  second
application filed under Section 17 of  the  Act  was  not  maintainable  and
therefore, it ought not to have been entertained by the Tribunal.    We  are
not in agreement with the said submission for the reason that  when  another
application was filed under Section 17(1) of the Act, the  cause  of  action
was different.  At an earlier point of time, the issuance of notice as  well
as notice for sale of the flat had been challenged, whereas  the  subsequent
application had been filed after the auction had been held.   The  cause  of
action in respect of both the applications was not same  and  therefore,  in
our opinion, the second application for a  different  cause  of  action  was
maintainable.

25.   In the circumstances,  we  do  not  intend  to  disturb  the  judgment
delivered by the High Court.  However, looking at the nature  of  litigation
faced by the auction purchaser, we modify the  order  and  direct  that  the
amount already paid by the  auction  purchaser  shall  be  returned  to  the
auction purchaser with simple interest at the rate  of  10%  till  the  said
amount is paid.

26.   In exercise of our powers under Article 142  of  the  Constitution  of
India, we further direct that before 30th November, 2016, the creditor  bank
shall give intimation of the total amount payable by the  borrowers  (  i.e.
principal amount and interest, including penal interest, if any) as  on  1st
December, 2016 and if the said amount is not paid by  the  borrowers  before
10th day of December, 2016, it would be open to the creditor  bank  to  sell
the flat by holding an auction, without giving any  further  notice  to  the
borrowers but after giving a 30 days’ public notice  for  the  sale  of  the
flat in one English leading newspaper and in one local newspaper, so  as  to
recover its dues.

27.   The appeals are disposed of in terms of the  aforestated  modification
with no order as to costs.


                                                              ……………………………..J
                                                   (ANIL R. DAVE)


                                                              ……………………………..J
New Delhi.                                   (UDAY UMESH LALIT)
NOVEMBER 8, 2016.

Order VII Rule 11 of the CPC contending that the Court had no jurisdiction to entertain the suit in view of the provisions of Section 34 read with Section 13(2) of the Act, which prohibits a Civil Court from dealing with the matters arising under the provisions of the Act.= we hold that the Debt Recovery Tribunal constituted under the DRT Act has jurisdiction to entertain an appeal as per Section 17 of the Act even if the amount involved is less than Rs.10 lakh. But, the said appellate jurisdiction need not be misunderstood with the original jurisdiction of the Tribunal. = 2016 Dec.http://judis.nic.in/supremecourt/imgst.aspx?filename=44293 - STATE BANK OF PATIALA Vs. MUKESH JAIN & ANR. ANIL R. DAVE, L. NAGESWARA RAO

                                                                  REPORTABLE



                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO. 210  OF 2007



STATE BANK OF PATIALA              … APPELLANT


VERSUS



MUKESH JAIN & ANR.                     … RESPONDENTS



                               J U D G M E N T



ANIL R. DAVE, J.



1.    Being aggrieved by the judgment dated 8th  April,  2005  delivered  in
Civil Revision Petition No.242 of 2004 by the  High  Court  of  Delhi,  this
appeal has been filed by the appellant, whose application filed under  Order
VII Rule 11 of the Code of Civil Procedure, 1908 had been  rejected  by  the
trial Court and  being  aggrieved  by  the  order  of  rejection  dated  9th
February, 2004, the aforestated Civil Revision  Petition  was  filed  before
the High Court, but the said Civil Revision Petition was  also  rejected  by
the impugned order and therefore, this appeal has been filed.

2.    The facts giving rise to the present litigation, in  a  nutshell,  are
as under:

      The appellant is a nationalized  bank  which  had  lent  Rs.8,00,000/-
(Rupees eight lakh) to respondent no.1 by way of  a  term  loan  on  certain
conditions and so as to secure the said debt,  respondent  no.1  debtor  had
mortgaged his immovable property forming  part  of  premises  bearing  no.C-
8/298, Yamuna Vihar, Delhi.  As respondent no.1  committed  default  in  re-
payment of the said loan, the  appellant  initiated  proceedings  under  the
provisions of the Securitisation and Reconstruction of Financial Assets  and
Enforcement of Security Interest Act, 2002 (hereinafter referred to as  ‘the
Act’).  When notice under Section 13(2) of  the  Act  had  been  issued  and
further proceedings were sought to be initiated  by  the  appellant  against
respondent no.1, the said proceedings  had  been  challenged  by  respondent
no.1 by filing Civil Suit No.4 of 2003 in the Court of Civil  Judge,  Delhi.


3.    In the said suit, the appellant filed an application under  Order  VII
Rule 11 of the  CPC  contending  that  the  Court  had  no  jurisdiction  to
entertain the suit in view  of  the  provisions  of  Section  34  read  with
Section 13(2) of the Act, which prohibits a Civil Court  from  dealing  with
the matters arising under the provisions of the Act.  After considering  the
averments made in the application as well as the reply given  by  respondent
no.1 and upon hearing the concerned counsel, the said application  had  been
rejected by the trial Court by an order dated 9th February, 2004.

4.    Being  aggrieved  by  the  rejection  of  the  said  application,  the
appellant filed Civil Revision Petition No.242 of 2004 in the High Court  of
Delhi.  The said petition was also rejected by the impugned  judgment  dated
8th April, 2005 and being  aggrieved  by  the  said  judgment,  the  present
appeal has been filed by the appellant.

5.    The reason for which the application filed under Order VII Rule 11  of
the CPC had been  rejected  by  the  trial  Court  was  that  the  suit  was
maintainable in view of the fact that the subject matter of  the  suit  i.e.
the  amount  which  was  sought  to  be  recovered  by  the  appellant  from
respondent no.1 (original plaintiff) was less  than  Rs.10,00,000/-  (Rupees
Ten lakh) and according to the provisions of Section 1(4)  of  the  Recovery
of Debts due to Banks and  Financial  Institutions  Act,  1993  (hereinafter
referred to as ‘the DRT Act’), the provisions  of  the  DRT  Act  would  not
apply, where the amount of debt due to any bank or financial institution  is
less than Rs.10 lakh and therefore, it was not open  to  the  Debt  Recovery
Tribunal (hereinafter referred  to  as  “the  Tribunal”)  to  entertain  the
matter as the amount claimed in the suit was less than Rs.10 lakh.

6.    In the aforestated circumstances, the trial  Court  was  of  the  view
that as the DRT Act had no jurisdiction to entertain an appeal  against  the
order passed under the provisions of the Act, a civil suit was  maintainable
and therefore, the application made under Order VII Rule 11 of the  CPC  had
been rejected by the trial Court.  The High Court confirmed  the  said  view
of the trial Court.

7.    The learned counsel  appearing  for  the  appellant,  challenging  the
validity of the impugned judgment, submitted that the view expressed by  the
High Court confirming rejection of the application under Order VII  Rule  11
is not correct because the Civil Court has no jurisdiction to entertain  any
proceedings under the Act as per the provisions of Section 34  of  the  Act.
Section 34 of the Act expressly bars the jurisdiction  of  the  Civil  Court
from dealing with any matter which arises under the Act.

8.    The learned counsel submitted that the trial  Court  as  well  as  the
High Court were  not  correct  while  coming  to  the  conclusion  that  the
Tribunal had no jurisdiction  to  entertain  an  appeal  against  the  order
passed under the Act in pursuance of the provisions of Section 1(4)  of  the
DRT Act.

9.    He also submitted that the Act was enacted in 2002,  whereas  the  DRT
Act was enacted in 1993.  As the Act was enacted later  in  point  of  time,
provisions of Section  34  of  the  Act  would  prevail  and  therefore,  no
proceedings of any type arising under the Act can be entertained by a  Civil
Court.   He,  therefore,  submitted  that  the  application  filed  by   the
appellant before the trial Court under Order VII Rule 11  should  have  been
granted by the trial Court.

10.   So as to substantiate his submission, the learned counsel relied  upon
a judgment delivered in the case of Mardia  Chemicals  Ltd.  and  others  v.
Union of India and others   2004(4) SCC 311.  For  the  aforestated  reasons
he submitted that the  appeal  deserved  to  be  allowed  and  the  impugned
judgment should be set aside so that the Civil Court can be restrained  from
proceeding further with the suit on the ground of lack of jurisdiction.

11.   Though served, nobody appeared for the respondents.

12.   We have heard the learned counsel at length and  also  considered  the
relevant provisions of law referred to and the judgment cited by him.

13.   The issue involved in the appeal is whether, in the instant case,  the
suit  was  maintainable  against  the  proceedings   initiated   under   the
provisions of the Act.  The application filed by the appellant  under  Order
VII Rule 11 of the CPC was rejected mainly for the reason that the  Tribunal
had no jurisdiction to entertain the proceedings  under  the  provisions  of
Section 1(4) of the DRT Act as the value of the suit  was  less  than  Rs.10
lakh and therefore, the Civil Suit was the  only  remedy  available  to  the
respondents (original plaintiffs).

14.   It would be beneficial to consider the relevant provisions of the  Act
referred to hereinabove:

“17. Right to appeal (1) Any person (including borrower), aggrieved  by  any
of the measures referred to in sub-section (4) of Section 13  taken  by  the
secured creditor or his authorized officer under this Chapter, [may make  an
application along with  such  fee,  as  may  be  prescribed]  to  the  Debts
Recovery Tribunal having jurisdiction in the matter within  forty-five  days
from the date on which such measures had been taken:

Provided that different fees may be prescribed for  making  the  application
by the borrower and the person other than the borrower.

            ………………………………………..”

x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x-x

“34.  Civil Court not to have  jurisdiction.-  No  civil  Court  shall  have
jurisdiction to entertain any suit or proceeding in respect  of  any  matter
which a Debts Recovery Tribunal or the Appellate Tribunal  is  empowered  by
or under this Act to determine and no injunction shall  be  granted  by  any
Court or other authority in respect of any action taken or to  be  taken  in
pursuance of any power conferred by or under this Act or under the  Recovery
of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993).”





Section 1(4) of the DRT Act reads as under:



“1.   Short title, extent, commencement and application. -

(1)   ……………..

(2)   ……………..

(3)   ……………..

(4)   The provisions of this Act shall not apply where the  amount  of  debt
due to any bank or financial institution or to  a  consortium  of  banks  or
financial institutions is less than ten lakh rupees or  such  other  amount,
being not less than one lakh rupees,  as  the  Central  Government  may,  by
notification, specify.”



15.   Upon perusal of Section 34 of the Act, it is very clear that no  Civil
Court is having jurisdiction to entertain any suit or proceeding in  respect
of any matter which a Debt Recovery Tribunal or the  appellate  Tribunal  is
empowered by or under the Act to determine the dispute.  Further, the  Civil
Court has no right to issue any injunction in pursuance of any action  taken
under the Act or under the provisions of the DRT Act.

16.   In view of a specific bar, no  Civil  Court  can  entertain  any  suit
wherein  the  proceedings  initiated  under  Section  13  of  the  Act   are
challenged.   The Act had been enacted in 2002,  whereas  the  DRT  Act  had
been enacted in 1993.  The legislature is presumed to be aware of  the  fact
that the  Tribunal  constituted  under  the  DRT  Act  would  not  have  any
jurisdiction to entertain any matter, wherein  the  subject  matter  of  the
suit is less than Rs.10 lakh.

17.   In the aforestated circumstances, one will have to make an  effort  to
harmonize both the statutory provisions.  According to  Section  17  of  the
Act, any person who is aggrieved by any of the actions taken  under  Section
13 of the Act can approach the Tribunal under  the  provisions  of  the  DRT
Act.

18.   In normal circumstances, there cannot be any action of  any  authority
which cannot be challenged before a Civil Court unless there is a  statutory
bar with regard to challenging  such  an  action.  Section  34  specifically
provides the bar of jurisdiction  and  therefore,  the  order  passed  under
Section 13 of the Act could not have  been  challenged  by  respondent  no.1
debtor before any Civil Court.

19.   In  the  aforestated  circumstances,  the  only  remedy  available  to
respondent no.1 debtor can be to approach the Tribunal under the  provisions
of the DRT Act read with the provisions of the Act.   But,  one  would  feel
that as per Section 1(4) of the DRT Act, provisions of  the  DRT  Act  would
not apply where the amount of debt is less than Rs.10 lakh.

20.   The aforestated provision of Section 1(4) of the DRT Act must be  read
in a manner which would not adversely affect a debtor,  who  wants  to  have
some remedy against an action initiated under the provisions of  Section  13
of the Act.

21.   The DRT Act mainly pertains to institution of proceedings  by  a  bank
for recovery of its debt when the debt is not less than Rs.10 lakh.  If  the
debt is less than Rs.10 lakh, no suit can be filed by the creditor  bank  in
the  Tribunal  under  the  provisions  of  the  DRT  Act.   So,   when   the
jurisdiction of the Tribunal has been referred to in  Section  1(4)  of  the
DRT Act, which limits the jurisdiction of the Tribunal to Rs.10 lakh,  prima
facie,  the  intention  of  the  legislature  is  to  limit   the   original
jurisdiction of the Tribunal.  If  any  claim  is  to  be  made  before  the
Tribunal, the amount must be more than Rs.10 lakh and if the amount is  less
than Rs.10 lakh, the creditor bank will have to  file  a  suit  in  a  Civil
Court. So, one can safely interpret the provisions of Section  1(4)  of  the
DRT Act to the effect that  it  deals  with  original  jurisdiction  of  the
Tribunal under the provisions of the DRT Act.

22.   In the instant case, we  are  concerned  with  the  challenge  to  the
proceedings initiated under Section 13 of the  Act.   There  is  a  specific
provision in the Act to the effect that the proceedings initiated under  the
Act cannot be challenged before a Civil Court because the  Civil  Court  has
no jurisdiction to entertain any matter arising under the Act  and  in  that
event,  the  concerned  debtor  has  to  approach  the  Tribunal  under  the
provisions of Section 17 of the Act.

23.   Thus, the Tribunal would  be  exercising  its  appellate  jurisdiction
when the action initiated under the provisions of Section 13 of the  Act  is
challenged  before  the  Tribunal.   There  is  a  difference  between   the
Tribunal’s original jurisdiction under the provisions of  the  DRT  Act  and
the appellate jurisdiction under the Act.

24.   The issue with regard to availability of a forum for  challenging  the
action under the provisions of the Act had been dealt with by this Court  in
the case of Mardia Chemicals Ltd. (supra).  This Court, in  the  said  case,
unequivocally held that the  aggrieved  debtor  can  never  be  without  any
remedy and we firmly believe that the legislature would normally  not  leave
a person without any remedy when a harsh action  against  him  is  initiated
under the provisions of the Act.

25.   So as to know the appellate jurisdiction of the Tribunal, one  has  to
look at the provisions of the Act as Section  17  of  the  Act  specifically
provides a right to the aggrieved debtor to challenge  the  validity  of  an
action initiated under  Section  13(4)  of  the  Act  before  the  Tribunal.
Moreover, the Act was enacted in 2002 and the  legislature  is  presumed  to
have knowledge about the provisions of Section 1(4)  of  the  DRT  Act.   So
harmonious reading of both the aforestated Sections would  not  be  contrary
to any of the legal provisions.

26.   For the aforestated reasons, we are of the view that  the  application
submitted by the appellant bank under Order VII Rule 11 of  the  CPC  should
have been granted by the trial Court as, according  to  Section  34  of  the
Act, a Civil Court has no  jurisdiction  to  entertain  any  appeal  arising
under the Act.

27.   Thus, we hold that the Debt Recovery Tribunal  constituted  under  the
DRT Act has jurisdiction to entertain an appeal as per  Section  17  of  the
Act even if the amount involved is less than  Rs.10  lakh.   But,  the  said
appellate  jurisdiction  need  not  be  misunderstood  with   the   original
jurisdiction of the Tribunal.

28.   For the aforestated reasons, the impugned  judgment  as  well  as  the
order rejecting the application filed  under  Order  VII  Rule  11  are  set
aside.  The appeal is allowed with no order as to costs.



                                                             .…………………………….J.
                                          (ANIL R. DAVE)



                                                             ……………………………..J.
                                   (L. NAGESWARA RAO)
NEW DELHI
NOVEMBER 8, 2016.

“157. Powers of Government in regard to taxes-(1) The Government may by order exempt in whole or in part from the payment of any such tax any person or class of persons or any property or description of property.” = 2016 Dec.http://judis.nic.in/supremecourt/imgst.aspx?filename=44292 - M/S WELSPUN PROJECTS LTD. Vs. DIRECTOR, STATE TRANSPORT PUNJAB AND ANR ANIL R. DAVE, R.K. AGRAWAL, L. NAGESWARA RAO

                                     REPORTABLE




                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

1                CIVIL APPEAL NOs. 4944-4945 OF 2016



M/s Welspun Projects Ltd.
(Formerly known as M/s MSK Projects
India Ltd.)                                         .... Appellant(s)

            Versus

Director, State Transport,
Punjab & Anr.                                            .... Respondent(s)




                                      2

                               J U D G M E N T

R.K. Agrawal, J.


1)    Challenge in the  above  said  appeals  is  to  the  legality  of  the
impugned common judgment and order  dated  14.11.2011  rendered  by  learned
single Judge of the High Court  for  the  States  of  Punjab  &  Haryana  at
Chandigarh in F.A.O. Nos. 3372 and 3488  of  2011  whereby  the  High  Court
allowed the appeals filed by the respondent-State.
2)    Factual position in a nutshell is as follows:-
(a)   On 22.06.2005, a Concession Agreement was  entered  into  between  the
Government of Punjab (through Director, State  Transport,  Punjab)  and  M/s
Welspun Projects Ltd. (formerly known as M/s MSK  Projects  India  Ltd.)-the
appellant-Company  to design, finance, construct, operate and  maintain  the
Bus Terminal Project at Jalandhar on Build,  Operate  and  Transfer  (B.O.T)
basis and to determine, levy, demand, collect and  retain  the  fees  for  a
period of 8 years, 5 months and 21 days.
(b)   A similar Concession Agreement was entered into  between  the  parties
mentioned above for the Bus Terminal at Ludhiana on the  same  basis  for  a
period of 10 years and 3 months.
(c)   On 16.08.2005 and 25.10.2005, lease deeds were  entered  into  between
the parties for the project sites at Jalandhar  and  Ludhiana  respectively.
According to the said lease deeds, the  appellant-Company  was  required  to
pay only the annual rent of Re. 1 as lease rental.
(d)   On 26.11.2008, the  Commissioner,  Municipal  Corporation,  Jalandhar-
Respondent No. 2 herein issued a notice under  Section  103  of  the  Punjab
Municipal Corporation Act, 1976  (in  short  ‘the  Act’)  stating  that  the
premises in question  was  assessed  for  an  annual  rental  value  of  Rs.
3,98,73,600/- for the year 2008-09.
(e)   Similarly, on 08.02.2010,  the  appellant-Company  received  a  notice
from the Municipal Corporation, Ludhiana stating the  house  tax  assessment
for the year 2008-09 and 2009-10 had been carried out and the said  property
at Ludhiana was assessed at Rs.64,59,588.80/- for an annual rental value  of
the premises.
(f)   The appellant-Company informed Respondent No. 2  herein  that  it  was
handling the project on BOT basis and as such the actual owner is the  State
Transport Authorities.  However, when  the  contents  of  the  notices  were
brought to the knowledge of  the  State  Transport  Authorities,  the  State
Transport Authorities informed that  the  appellant-Company  is  the  actual
user, occupant and beneficiary of the properties of the  Bus  Terminals  and
as such is liable to pay all taxes including House Tax as per the terms  and
conditions of the Concession Agreements.
(g)    Being  aggrieved  by  the  demand  notices,   the   appellant-Company
approached the High Court. The  High  Court,  vide  order  dated  09.02.2010
directed the appellant-Company to approach Punjab Infrastructure  Regulatory
Authority (PIRA).  The appellant-Company preferred Petition Nos. 1 and 2  of
2010 before the PIRA against the State Transport Authorities  of  Jalanadhar
and Ludhiana respectively.
(h)   Vide orders dated 08.09.2010 and  15.12.2010,  the  PIRA  allowed  the
petitions filed by the appellant-Company.   Being  aggrieved  by  the  above
orders, the State Transport Authorities preferred F.A.O. Nos. 3372 and  3488
of 2011 before the High Court.
(i)   Learned single Judge of the  High  Court,  vide  common  judgment  and
order dated  14.11.2011,  allowed  the  appeals  filed  by  the  respondents
herein.
(j)   Aggrieved by the order dated  14.11.2011,  the  appellant-Company  has
preferred these petitions before this Court by way of special leave.

3)    We have  heard  learned  counsel  for  the  parties  and  perused  the
records.

4)          Concession Agreement was entered into between the Government  of
Punjab through the Director Transport, Punjab and M/s MSK Projects Ltd.,  to
design, finance, construct, operate and maintain the Bus  Terminal  Projects
at Jalandhar and Ludhiana on B.O.T. basis and to  determine,  levy,  demand,
collect and retain the fees.  Lease deeds were  also  executed  between  the
parties. Municipal  Corporation  is  alleged  to  have  issued  notices  for
recovery of House Tax which led to the issue in  question.   The  appellant-
Company filed Petition No. 1 and Petition No. 2 before the  PIRA  which  was
allowed vide orders dated 08.09.2010 and  15.12.2010.   Being  aggrieved  by
the above said orders, the State Transport Authorities filed FAO  Nos.  3372
and 3488 of 2011 before the High Court.  Learned single Judge  of  the  High
Court allowed the same vide common order dated 14.11.2011.
5)    Learned  senior  counsel  for  the  appellant-Company  contended  that
fastening the liability on the appellant– Company  is  manifestly  erroneous
and is based on without complete and comprehensive appreciation of  relevant
aspects of the case in proper manner and is liable to be  set  aside.  There
is overwhelming material and also the case  in  Delhi  Golf  Club  Ltd.  and
Another vs. N.D.M.C., (2001) 2 SCC 633 is squarely applicable to  the  facts
of the present case and, therefore, the impugned order of the High Court  is
liable to be set aside.  Per contra learned Additional Advocate General  for
the respondent-State strenuously argued that in view of the various  clauses
in the Concession Agreement as well as the provisions of the Act,  the  High
Court was justified in fastening liability upon  the  appellant-Company  for
payment of the house tax for the period under consideration.
6)     Learned  senior  counsel  for   the   appellant-Company   strenuously
contended that it does not fall in the category of the  “owner”  as  defined
under Section 2(35) of the Act and is neither an owner nor a tenant  nor  is
entitled to receive rent etc. In a special  arrangement  determined  by  the
Concession  Agreements  and  the  Lease  Deeds,  the  appellant-Company   is
required to  pay  only  Re.  1/-  as  annual  rent  to  the  Director  State
Transport, Punjab and is entitled  to  collect  all  the  incomes  from  the
Project for a short and limited  period  so  as  to  enable  the  appellant-
Company to  recover  the  investments  made  in  the  Projects.  Though  the
buildings on the Project sites have been raised  by  the  appellant-Company,
it has been done for the respondent-State who owns the land as well  as  the
building. Therefore, under section 97 of the Act,  no  house  tax  could  be
levied on it. On the other hand, such a tax is  entirely  the  liability  of
the  Director,  State  Transport,  Punjab.  The  appellant-Company   further
referred to Clause 13(e) of the Lease Deed which  stipulates,  “that  except
the lease rental specified in Clause 6 of the Lease Deed, it (Lessor)  shall
not levy any fee, rental, tax or any other charge  on  the  lessee  for  the
demised premises”. It further stipulates  that  the  appellant-Company  will
only pay Re.1/- as annual lease rental.

7)    Undoubtedly, the inter-se relationship between  the  parties  and  all
the relative rights and obligations are entirely governed by the  Concession
Agreements and the Lease Deeds. It is thus to be seen first of all  that  if
these Agreements can provide any conclusive direction to settle  the  matter
in hand.
8)    For appreciating the  relevant  provisions  of  the  Lease  Deeds  and
Concession Agreements referred to above, it is to  be  mentioned  here  that
house tax is always assessed and paid in accordance with the  provisions  of
the Act. The definition of owner has been described  in  sub-Section  35  of
Section 2 which reads as under:
“2(35) “Owner” includes a person who for the time being is receiving  or  is
entitled to receive, the rent of any land or building  whether  on  his  own
account or on account of  himself  and  others  or  as  an  agent,  trustee,
guardian or receiver for any other person who should so receive the rent  or
be entitled to receive it if the land or building or part thereof  were  let
to a tenant;”

9)    Section 97(2) of the Act (as it stood at the relevant  time)  provides
with the incidence of tax on lands and buildings.  It reads as under:-


       “97(2) – Incidence of taxes on lands and buildings:-
If any land has been let for a term exceeding one year to a tenant and  such
tenant has built upon the land, the taxes on land and buildings assessed  in
respect of that land and the building erected  thereon  shall  be  primarily
leviable upon the said tenant, whether the land  and  building  are  in  the
occupation of such tenant or sub-tenant of such tenant.”

10)   Clause 6 and Clause 13(e) of the first  lease  deed  dated  16.08.2005
are reproduced below:-
“6. The Lessee shall pay unto the Lessor an annual rent of Re 1/-  as  lease
rental, which shall be paid as an advance lease rental in  single  lump  sum
payment of Rs. 15/-  (in  consideration  of  a  possible  extension  of  the
Concession Period) on  or  prior  to  the  date  upon  which  this  deed  is
executed.

13(e). That except the lease rental specified in Section 6 hereof, it  shall
not levy any fee, rental, tax or any other charge  on  the  Lessee  for  the
lease of the Demised Premises.”

11)   Another lease deed was executed on 25.10.2005.  Clause  6  and  Clause
13(e) of the said lease deed are reproduced below:-
“6.  The Lessee shall pay unto the Lessor an annual rent of Re 1/- as  lease
rental, which shall be paid as an advance lease rental in  single  lump  sum
payment of Rs. 15/-  (in  consideration  of  a  possible  extension  of  the
Concession Period) on  or  prior  to  the  date  upon  which  this  deed  is
executed.

13(1)(e). That except the lease rental specified in  Section  3  hereof,  it
shall not levy any fee, rental, tax or any other charge on  the  Lessee  for
the lease of the Demised Premises.”

12)   From a perusal of the aforesaid clauses, it is  clear  that  they  are
identical and no  change  has  been  made.   The  Concession  Agreement  was
executed on 22.06.2005.  Clause 24.1(a) of the Agreement, which is  relevant
and heavily relied upon by the respondents, is reproduced below:-
“24.1 Local Taxation:-
The concession period shall include  all  charges  towards  import  license,
toll, customs, duties, import  duties,  business  taxes  etc.  that  may  be
levied in accordance with the applicable laws as on the proposal  acceptance
date in India on the concessionaire’s equipment,  plant  and  Machinery  and
Materials (whether permanent, temporary  or  consumable)  acquired  for  the
purpose of this concession agreement and on the  services  to  be  performed
under this concession agreement. Nothing in this concession agreement  shall
relieve the concessionaire from its responsibility to pay any tax  that  may
be levied in India on profits made by  it  in  respect  of  this  concession
agreement.

13)   It may be mentioned here that both the lease deeds  were  executed  by
the Director, State Transport, Punjab for and on behalf of the  Governor  of
the State of Punjab.  From a perusal of Clauses 6 and  13(e)  of  the  lease
deeds reproduced above, we are of the  opinion  that  the  appellant-Company
was required to pay rent of Re. 1 only  as  lease  rental  and  further  the
Government has specifically mentioned  that  except  the  lease  rental,  it
shall not levy any fees, rent, tax or any other charge  on  the  lessee  for
the lease of the demised premises.  We  find  that  even  though  under  the
provisions of Section 2(35) read with 97(2) of the Act, normally the  tenant
who has been given land on lease for  a  term  exceeding  1  (one)  year  is
primarily liable to pay taxes on lands and buildings  yet  in  view  of  the
provisions of Section 157(1) of the Act,  the  Government  is  empowered  to
exempt in whole or in part from the payment of any such tax  any  person  or
class of persons or any property or description of  property  which  in  the
present case has been done on behalf of the government when the lease  deeds
were  executed.   For  ready  reference,  Section  157(1)  of  the  Act   is
reproduced below:-
“157. Powers of Government in regard to  taxes-(1)  The  Government  may  by
order exempt in whole or in part from  the  payment  of  any  such  tax  any
person or class of persons or any property or description of property.”

14)   A reading of Concession Agreement dated 22.06.2005,  more  so,  Clause
24.1(a) which deals with the  local  taxation  states  that  the  concession
period shall include all charges  towards  import  license,  toll,  customs,
duties, import duties etc. which is to be payable by the  appellant-Company.
 In view of the specific exemption given  under  the  lease  deed  regarding
payment of any taxes on the demised premises,  in  our  considered  opinion,
the appellant-Company is not at all required to pay any municipal  taxes  on
the demised premises.  We may also mention  here  that  the  house  tax  was
being paid  by  the  transport  department  prior  to  the  signing  of  the
Concession Agreement and if it was  intended  that  this  burden  should  be
passed on to the appellant-Company, a clear clause interpreting  this  point
would have certainly been inserted in the Agreement itself.  Not only  this,
the Department continued to pay the house tax for 3 to 4  years  even  after
the date of the signing of the agreement.
15)   In view of the forgoing discussion, we are of the  considered  opinion
that the appellant-Company is not liable to pay any house tax under the  Act
and the demand and payment of  house  tax  from  the  appellant-Company  was
without the authority of law and the appellant-Company is  entitled  to  the
refund of the amount of house tax paid by it alongwith rate of  interest  at
the rate of 10% p.a. from the date of deposit.
16)   In view of the above, the impugned judgment  and  order  of  the  High
Court dated 14.11.2011 is set  aside  and,  consequently,  the  appeals  are
allowed.

...…………….………………………J.
          (ANIL R. DAVE)











[[[[



…....…………………………………J.
   (R.K. AGRAWAL)


...…………….………………………J.
          (L. NAGESWARA RAO)

NEW DELHI;
NOVEMBER 8, 2016.
-----------------------
10



whether the chain is complete or not would depend on the facts of each case emanating from the evidence and no universal yardstick should ever be attempted. That in judging the culpability of the accused, the circumstances adduced when collectively considered, must lead only to the irresistible conclusion that the accused alone is the perpetrator of the crime alleged.- They are thus entitled to the benefit of doubt.=2016 Dec.http://judis.nic.in/supremecourt/imgst.aspx?filename=44289 - NATHIYA Vs. STATE TR.INSP.OF POLICE,VELLORE DIPAK MISRA, AMITAVA ROY

                                                        REPORTABLE

                  IN THE SUPREME COURT OF INDIA
                 CRIMINAL APPELLATE JURISDICTION
                     CRIMINAL APPEAL NO. 1015 OF 2010

NATHIYA                                                 …APPELLANT
            VERSUS
STATE REP. BY INSPECTOR OF POLICE,
BAGAYAM POLICE STATION, VELLORE                      …RESPONDENT

                            WITH

                 CRIMINAL APPEAL NO. 1011 OF 2010

SURESH                                                  …APPELLANT
            VERSUS
STATE REP. BY INSPECTOR OF POLICE,
BAGAYAM POLICE STATION, VELLORE               …RESPONDENT

                       J U D G M E N T
      AMITAVA ROY, J.
            The appellants being aggrieved   by  the  affirmation  of  their
conviction  under Section 302 read with Section 34 IPC and the  sentence  of
life imprisonment and fine of Rs. 10000/-, in default R.I. for  further  six
months, by the High Court  by  its  verdict   dated  27.11.2008,  seek  this
Court's  panacean intervention for redress.
2.    We have heard Mr. Jayant Muthur Raja, learned counsel for

the appellant Nathiya,  in Criminal  Appeal  No.  1015  of  2010,  Mr.  P.R.
Kovilan, learned counsel for the appellant Suresh, in  Criminal  Appeal  No.
1011 of 2010 and Mr. M. Yogesh Kanna, learned counsel for the State.
3.    The prosecution  was set in motion by  the  First  Information  Report
lodged on 27.3.2006 at 2.30 a.m. by one Gunasekaran, the  cousin brother  of
the deceased Gurunathan, the husband of the appellant Nathiya  (accused  No.
1).  The appellant Suresh (accused No. 2 ) is  allegedly  the  paramour   of
accused No. 1.   It was averred in the FIR that  the  deceased  was  a  book
binder by occupation and owned  some  properties  located  in  his  village,
worth several lakhs.  He  also  had  his  own  house.    The  house  of  the
appellant Suresh was also situated nearby.  It had  been  alleged  that  the
appellant  Nathiya,  the  wife  of  the  deceased  had  developed    illicit
relationship with Suresh  which  was  not  only  to  the  knowledge  of  the
deceased but also of the informant.  The FIR discloses  that  this  depraved
liaison between the accused persons had also been brought to the  notice  of
the local panchayat and that though, it had advised the  appellants  against
the continuation of such alliance, they did  not  desist  therefrom.   Being
appalled, though the deceased at some  point  of  time,  had  shifted  to  a
rented house elsewhere  but had to return  under  financial  compulsions  to
his original place of abode.  This, according to the  FIR,  facilitated  the
continuance of the extra-marital  relationship of Nathiya with  Suresh.   It
was alleged in the FIR that in retaliation  to  the  persistent   endeavours
made by the deceased to make Nathiya mend her ways,  she  used  to   torture
him and threaten that she would eliminate him and would sell his  properties
and elope  with her paramour.  The informant claimed that  not  only  a  few
days prior to the incident, the deceased had confided him that his wife  had
tried to suffocate him to death  by  pressing  a  pillow  on  his  face,  on
26.3.2006, i.e.  on the eve of the incident as well,  he  had  disclosed  to
him about a  conspiracy between the two accused persons to  murder  him  and
grab his properties.
4.    The informant further mentioned  that  in  the  intervening  night  of
26.3.2006/27.3.2006, while he was asleep, Pushpa,  wife  of  Dinakaran,  his
neighbour informed him that the dead body of  the  deceased  had  been  seen
floating in a nearby well.   On  getting  this  information,  the  informant
rushed to the place of occurrence   and with the help  of   Pandurangam  and
Dinakaran, retrieved the body from the well.  On further enquries, he  could
come to learn that one Packiammal, at about 11 p.m., heard the  shrieks   of
the deceased followed by a loud thud from the well.  The informant  referred
 to the accused persons as the suspects.   It was incidentally mentioned  as
well that they were not available in their house  at  that  point  of  time.
This FIR was  registered  as   Bagayam  P.S.  Crime  No.  278  of  2006  and
investigation followed.
5.     Eventually  the  charge-sheet  was  submitted  against  the   accused
persons.  The case  was  committed   for  sessions  trial.   The  appellants
having denied the charge, were made  to  stand  trial  and  finally  by  the
judgment and order dated 13.11.2007 passed in  S.C.  No.  94  of  2007,  the
appellants were convicted under Section 302 read with  Section  34  IPC  and
sentenced as above. To reiterate, their conviction  and  sentence  has  been
upheld by the High Court by the judgment and order impugned herein.
6.    Before adverting to the rival submissions advanced, apt  it  would  be
to undertake  an  analysis   of  the  evidence  on  record   to  the  extent
indispensable.
            PW1 Gunasekaran, the informant while  substantially  reiterating
his version in the FIR stated on oath that the deceased  was  a    dwarf  in
structure  and  that  though  being   exasperated    with  the  incorrigible
conduct of his wife in indulging in  the  extra-marital   relationship  with
the Suresh, he had shifted his family to Idaiyamsathu Village,   because  of
his meager means, he  could  not  afford  to  stay  there  and  returned  to
Kollaimedu  within three  months.  The  witness  stated  that  the  deceased
inspite of his best efforts could not stop the  unwholly  alliance   between
the accused persons and  used to very often share  his  distress  with  him.
He stated that on receiving the information  about  the  dead  body  of  the
deceased in the well, he rushed to the  place  of  occurrence  and,  amongst
others,  saw that  chappals of the deceased  lying by the side of the  well.
 He owned the FIR lodged by him and  reiterated  the  suspicion   about  the
culpability of the two appellants.
            In cross-examination, he denied the defence suggestion that  the
the grand-father of the deceased had executed a will in  favour  of  him  as
well as the deceased.  He  admitted  that  the  appellant  Nathiya  and  her
daughter  were  the  only  legal  heirs  of  the  deceased   and  that    no
incriminating material was recovered   by  the  police  from  the  house  of
Nathiya.   He  admitted   as  well  to  have  not  disclosed   the   illicit
relationship between the appellants to the police.  He  admitted  too   that
the well  was  located  at  a  distance  of  2.5  feet  from  the  house  of
Packiammal and that there were other houses situated within 200  feets  from
there.
            PW2 Rajan, who was also  a  resident  of  Idaiyamsathu  Village,
deposed that the appellant Nathiya did not  respect  the  deceased   as  her
husband,  who did not know   swimming   and  cycling.   He  stated  that  on
26/27.3.2006, while  he was sleeping, he heard that the deceased had  fallen
in the well and on reaching the spot, found his dead body  floating  in  the
well  with  his  face  downwards.  He  mentioned  too  about   the   illicit
relationship between the two  appellants  for  which  time  and  again,  the
deceased  had warned his wife Nathiya.  He also claimed  that  the  deceased
had disclosed to him about the immoral character of his wife  for  which  he
used to console him.   He  stated  as  well  that  few  days  prior  to  the
incident, the deceased had disclosed  to  him  that  Nathiya  had  tried  to
murder him by covering his face with a pillow.
            In cross-examination, however  he  conceded   that  he  had  not
disclosed to the police about the incident of  the  attempt  to  murder  the
deceased by his wife.  The witness admitted that PW1 and  the  deceased  had
equal shares in the well. He also admitted of not having  disclosed  to  the
police about the immoral relationship between the appellants.
            PW3 Packiammal stated on oath to have heard  in the  intervening
night of 26/27.3.2006, cries of someone  and then  a sound  from  the  well.
She thereafter raised alarm apprehending that some body  might  have  fallen
in the well and that  in the next morning, she  heard  that  Gurunathan  had
died.  She stated that the house of the deceased  and  that  of  the  Suresh
were near that of hers.
            PW4 Dinakaran testified that in the  night  of  the  occurrence,
Packiammal (PW3) had  raised  alarm  whereupon  he  went  to  the  place  of
occurrence and found that the deceased had fallen into the  well  whereafter
his body was taken out therefrom.   According  to  him,  though  the  police
reached  the  place  of  occurrence  some  time  thereafter,   he  was   not
interrogated.   He,  however  mentioned  about  the  presence  of  both  the
appellants  at the time when the dead body was  retrieved from the  well  at
about 11 p.m.  He stated as well that the  appellant  Nathiya  was  weeping,
sitting near the dead body.
            PW5 Dr. Anbalagan, who  performed  the  post-mortem  examination
of the dead body  on 27.3.2006 at about 6.30 p.m.   detected  the  following
extrenal injuries:
1.    Lacerated wound 2 cm x  1 cm x ½ cm. deep on the right side and back.
2.    One cut injury measuring 2 cm x 1 cm x ½ cm. deep on the rear part  of
the head.

PW5 mentioned that the occipital bone was broken measuring 3  c.m.  on  rear
part of the head and that  blood clot was also found  on  the  broken  bone.
Amongst  the  internal  injuries  detected,  he  mentioned  about   traverse
fracture of the occipital bone.  He opined  that the deceased had  died  due
to grievous head injuries, suffocation and heart failure. According to  him,
the deceased appeared  to have died because of drowning  in  the  water.  He
admitted  that if a person becomes  unconscious out of suffocation  and   is
thrown into a well, he is  likely to die of the above injuries.
              In cross-examination, he however opined  as  well  that  if  a
person falls from a very high height, he is likely to  sustain  injuries  on
the rear part of the head.
             PW9  Kamalakannan,  Village  Administrative  Officer,  at   the
relevant  time,  testified  that  on  27.3.2006,  both  the  appellants  had
appeared  at  his  office  and  had  voluntarily  confessed  that  they  had
smothered  the deceased and that thereafter  had  pushed  him  down  in  the
well.   This  witness  stated  that  the  confessional  statements  of   the
appellants  were  recorded  by  him  in  the  presence  of   Kothandan,  his
assistant  and  Palavansathukuppam   Gunasekaran,   Village   Administrative
Officer, Virupatchipuram Village  and that  thereafter he  had  handed  over
the accused persons  with the confessional statements  to  the  police.   He
denied the suggestion that the accused persons had not appeared  before  him
at his office or had not made any  confessional statement.
            PW10 Kothandan, who  at  the  relevant  time,  was  the  Village
Assistant at Palavansathu Village, deposed  that  on  27.3.2006,  while  he,
Kamalakannan,  Village   Administrative   Officer   and   Palavansathukuppam
Gunasekaran, Village Administrative Officer, Virupatchipuram   were  present
in their office, the appellants appeared there and  voluntarily  gave  their
confessional statements admitting to have killed  the  deceased  and  thrown
him in the well.  The witness affirmed  as well that their  statements  were
recorded by PW9 Kamalakannan, whereafter they had  taken the  appellants  to
the police station  following which they were arrested. He also stated  that
the confessional statements were handed over to the  police.   According  to
this witness,  appellant Nathiya also produced the saree gifted  to  her  by
Suresh and the  witness  identified  the  said  article  as  MO1.   He  also
referred to a photograph of the appellants produced  by  Suresh  before  the
police and exhibited the same as MO2.
             In cross-examination, this witness admitted to have signed  the
voluntary statement along with PW9 Kamalakannan. He  however  admitted  that
he did not disclose about the confessional statements to anybody. He  denied
the suggestion that neither the appellants had appeared  at  the  office  of
the Village Administrative Officer nor had made any confessional statement.
            PW11 Kumar Devikan, the Investigating Officer,  amongst  others,
admitted that on 27.3.2006 at about 2 p.m.,  the  appellants  were  produced
before him at the police station by the Village  Administrative  Officer  of
Palavansathu and Virupatchipuram along with their  confessional  statements.

7.    The learned  counsel   for  the  appellants  have  argued   that   the
circumstantial evidence adduced by the prosecution, in absence  of  any  eye
witness to the incident, is extremely shaky, incomplete  and  incoherent  so
as to warrant conviction of the appellants and  they are  thus  entitled  in
law to be exonerated from  the  charge  of  murder  levelled  against  them.
While  repudiating the  alleged  disclosures   by  the  deceased  about  the
infidel  character of his wife to PW1 and PW2, as  reproduced  by  them,  to
be hearsay evidence  and thus of no significance, it  has  been  urged  that
the  prosecution  case  stands  discredited  as  well  on  the   ground   of
suppression of   the  alleged  confessional  statement   of  the  appellants
recorded  by the Village Administrative Officer.  Apart from the  fact  that
the deceased was not seen in the  company  of  the  appellants   immediately
prior to the  incident   and  that  thus  the  “last  seen  theory”  is  not
applicable to the facts of the case,  they  have  urged  that   the  medical
evidence as well  does not conclusively   prove   that   the  death  of  the
deceased was  homicidal and not suicidal.  Dismissing the recovery of  saree
 and the photograph of the appellants to be wholly inconsequential   in  the
face of  want of any  credible evidence to establish the complicity  of  the
appellants with the  crime,  it  has  been  insistently  argued   that   the
possibility of PW1, the  cousin  brother  of  the  deceased,  who  had  been
interested in this property, falsely  implicating the appellant  Nathiya  in
particular for illegal gain,  cannot be  wholly  ruled  out.    The  learned
counsel  have maintained in unison that even assuming  that  the  imputation
of illicit relationship between the appellants  had been  proved,  the  same
per se,  even if  at  the  best  is  a  suspicious  circumstance,  does  not
establish beyond reasonable doubt  the culpability of the  appellants.    In
the prevalent facts and circumstances,  the  possibility  of   the  deceased
committing suicide  cannot be excluded and that on that count as  well,  the
appellants are entitled to the benefit of doubt .
            As against this, the learned  counsel  for  the  respondent  has
argued  that  the   evidence  adduced  on  behalf  of  the  prosecution   is
adequately cogent, persuasive and  clinching   and  thus   in  the  face  of
concurrent findings of the guilt of the appellants, this  Court   would  not
upturn the same.  According to him,   the   factum  of   sustained   illicit
relationship between the appellants has been proved  beyond  doubt  and   in
the face of the revelation made by the deceased about the previous  attempts
to eliminate him,  the charge  against the appellants  stands proved on  the
basis of the materials on record.   Referring to the medical  evidence,  the
learned counsel  has  argued  that  it  is  apparent  therefrom   that   the
deceased was  first smothered and then thrown into a well in an  unconscious
state whereupon he died due to the head injuries  sustained.   According  to
the learned counsel, the omission on the part of the prosecution to  produce
the  recorded  confessional  statements  of  the  appellants    is    wholly
insignificant in the face of  the sworn testimony of  PW9  and PW10 to  that
effect.
8.      The competing arguments and the materials on  record  have  received
our due scrutiny.  It is  patent  in the present factual setting that  there
is no eye witness to the occurrence and that the prosecution case  is  based
wholly on circumstantial evidence.  The genesis  of  the  suspicion  against
the appellants, being their amorous association to the anguish disliking  of
the deceased, he being  almost reduced to a helpless entity,  having  failed
to prevent such liaison  inspite of his best endeavours.   There  is  indeed
some evidence suggestive of such an alliance between the appellants  at  the
relevant point of time.   This,  per  se,  in  our  comprehension,  however,
cannot be accepted as a  decisive  incriminating  factor  to  deduce   their
culpability qua the charge of murder of the deceased Gurunathan.
      9.    The place of  occurrence is a well, away from the  residence  of
the  deceased  for  which  any   definitive  presumption  against  his  wife
Nathiya, as a conspirator of the crime,  cannot be drawn  without  the  risk
of  going wrong to cast  a burden on her, as  contemplated    under  Section
106 of the Evidence Act.
             The    closest  circumstance  bearing   on  the  incident   is,
discernible from  the testimony of PW3 Packiammal who stated to  have  heard
the shrieks  of the deceased, followed by a loud sound of    a  fall  inside
the well.  There is no evidence that immediately thereafter, the  appellants
were seen in the vicinity of the  well.  Noticeably,  the  chappals  of  the
deceased were  found  by  the  side  of  the  well.   The  evidence  of  PW4
Dinakaran is,  however,  to  the  effect  that   when  the  dead  body   was
recovered  thereafter from the well, both the appellants  were  present  and
Nathiya, the wife of the deceased, was seen weeping by his side.
            The medical evidence  does not  refer  to  any  external  injury
indicative of  use of any external force on the deceased, resulting  in  his
ante-mortem  suffocation  and  loss  of  consciousness,  to  be   thereafter
dispatched into the well. The possibility  that  the  cause  of  death  i.e.
grievous  head  injury,  suffocation  and  heart  failure  were  post   fall
manifestations, also cannot be ruled out as the medical evidence admits   of
such an eventuality as well.
             The inexplicable omission on the part  of  the  prosecution  to
produce  and  prove  the  alleged  confessional  statements  made   by   the
appellants  and  reduced  into  writing  by  PW9  and  witnessed   by   PW10
substantially denudes  its case  of necessary credence to incriminate  them.
 The oral testimony of these witnesses to the effect that such  confessional
statements had been recorded, ipso facto is of  no  consequence.   Not  only
the contention that the  supposed disclosure by the deceased to PWs 1 and  2
about the immoral conduct of the appellants is discardable being hearsay  in
nature, deserves  some reflection, it is noticeable  that PW2, in his cross-
examination, did admit that he had  not  divulged  the  above  fact  to  the
police. PW10, as well, did concede  that he  had  not  revealed  to  anybody
about  the  confessional  statements  made  by  the  accused  persons.   The
recovery of a saree  produced by Nathiya said to have been  gifted   to  her
by  Suresh  and  their  joint   photograph,  in  the  attendant  facts   and
circumstances and in the face of the other evidence  on  record,   does  not
clinch the issue in favour of the prosecution.
10.   The defence proposition that PW1  being  the  cousin  brother  of  the
deceased  had  framed the  appellants  so  as  to  wrest   his  property  in
absence of his legal heirs in the above  factual  premise,  also  cannot  be
lost sight of.  The  imputation  of  sustained  unchaste   conduct  and  the
activities of the wife, if true, the possibility of the deceased  committing
 suicide as an extreme step in  a unbearable  anguished state of  mind  also
cannot be wholly excluded.
11.   On an  analysis   of  the  overall  fact  situation,  we  are  of  the
considered opinion  that the  chain of circumstantial  evidence relied  upon
by the prosecution to prove the charge is visibly incomplete and  incoherent
to permit  conviction of the appellants on the  basis  thereof  without  any
trace of doubt.  Though the  materials  on  record  do  raise  a  needle  of
suspicion towards them, the prosecution has failed  to   elevate   its  case
from the realm  of “may be true” to  the plane of  “must  be  true”  as   is
indispensably required in law for conviction on a criminal  charge.   It  is
trite  to state that  in  a  criminal  trial,  suspicion,  howsoever  grave,
cannot substitute proof.
12.   The  classic enunciation  of  the  law  pertaining  to  circumstantial
evidence, its relevance  and  decisiveness,  as  a  proof  of  charge  of  a
criminal offence, is amongst others  traceable  to  the   decision  of  this
Court in Sharad Birdhichand Sarda vs. State  of  Maharashtra  (1984)  4  SCC
116.   The  relevant   excerpts   from
paragraph 153 of the decision  is assuredly apposite:
“153.(2) The facts  so established   should  be  consistent  only  with  the
hypothesis of the guilt  of the accused...they  should  not  be  explainable
on any other hypothesis except that the accused is guilty.

(3) the circumstances should be of a conclusive nature and tendency.

            *                  *                    *
(5) there  must be a chain of evidence  so complete  as  not  to  leave  any
reasonable ground for  the conclusion  consistent with the innocence of  the
accused and must show that in all human probability the act must  have  been
done by the accused.”

            As recently as in Sujit Biswas vs. State of Assam (2013) 12  SCC
406 and Raja @ Rajendra vs. State of Haryaya (2015) 11 SCC 43, it  has  been
propounded that in scrutinizing  the circumstantial  evidence,  a  court  is
required  to evaluate it  to ensure that the chain of events is  established
clearly and completely to rule out any  reasonable likelihood  of  innocence
of the accused.  It was underlined that  whether the chain  is  complete  or
not  would depend on the facts of each case emanating from the evidence  and
no universal yardstick  should  ever  be  attempted.  That  in  judging  the
culpability of the accused,  the  circumstances  adduced  when  collectively
considered, must lead only to the irresistible conclusion that  the  accused
alone is  the perpetrator of  the  crime  alleged.  That  the  circumstances
established must be  of   a  conclusive  nature  consistent  only  with  the
hypothesis  of the guilt of the accused, was emphatically propounded.
13.   Tested  on the touchstone of the above judicially    laid  parameters,
defining   the  quality   and  content  of  the   circumstantial   evidence,
essential to bring home the  guilt  of  an  accused  person  on  a  criminal
charge, we are of the unhesitant  opinion that the prosecution, in the  case
in hand, has failed to meet  the same. The  materials  on  record  admit  of
substantial doubt vis-a-vis  the  complicity   of  the   appellants  in  the
crime.
14.   Having regard to the  evidence adduced, it would be wholly  unsafe  to
sustain their conviction.  They are thus entitled to the benefit  of  doubt.
The appeals thus succeed  and are  allowed.  The  bail  bonds  of  appellant
Nathiya, who is on bail, stands discharged.  Appellant  Suresh  be  released
from the jail immediately, if not required in any other case.


               …...........................................J.
                                   (DIPAK MISRA)



                       …...........................................J.
                                  (AMITAVA ROY)
NEW DELHI;
NOVEMBER 8, 2016.