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Monday, November 11, 2019

no explanation to discharge the onus under Section 106 has been provided. Hence, it is not a case fit for application of the theory of “residual doubt” as noted in Ravishankar (supra).= Rather, the present case is essentially one where two accused misused societal trust to hold as captive two innocent school-going children, one of whom was brutally raped and sodomised, and thereupon administered poison and finally, drowned by throwing them into a canal. It was not in the spur of the moment or a crime of passion; but craftily planned, meticulously executed and with multiple opportunities to cease and desist. We are of the view that the present offence(s) of the Petitioner are so grave as to shock the conscience of this Court and of society and would without doubt amount to rarest of the rare. 68. Hence, we find that there exist no grounds to review our judgment upholding conviction and death penalty. The review petitions are accordingly dismissed.

REPORTABLE
IN THE SUPREME COURT OF INDIA
INHERENT JURISDICTION
REVIEW PETITION (CRL.) NOS. 446-447 OF 2019
IN
CRIMINAL APPEAL NOS. 1174-1175 OF 2019
 Manoharan ..... PETITIONER(S)
VERSUS
State by Inspector of Police,
Variety Hall Police Station, Coimbatore
.....RESPONDENT(S)
JUDGMENT
SURYA KANT, J.
These review petitions are directed against the judgment dated
01.08.2019 passed in Manoharan v. State by Inspector of Police1
, wherein
this three-Judge Bench had affirmed conviction of the accused Manoharan for
offences punishable under Sections 302, 376(2)(f) and (g) and 201 of the
Indian Penal Code (in short “IPC”) and by majority upheld the death sentence
confirmed by the High Court.
FACTUAL MATRIX
2. Brief facts of the present case are as follows:
1 (2019) 7 SCC 716.
Page 1
 ‘X’, a ten-year-old girl and ‘Y’, her 7-year-old brother were enrolled in Classes
V and II respectively in a private school at Coimbatore and would commute
around 7:45 a.m. in a pickup vehicle owned by one Kartikeyan (PW-2). On
29.10.2010 the children left as usual with their school bags and lunch boxes
and stood about two-hundred feet away from their home, in front of the
Vinayakar Temple. Around 8:00 a.m., PW-2 came to the designated pick-up
spot but did not find the children there. He contacted the children’s father,
Ranjith Kumar Jain (PW-5), over mobile to enquire about their absence. Being
in Hyderabad, PW-5 was unable to provide an immediate reply to the query of
PW-2 and hence called his wife, the children’s mother - Sangeetha (PW-8),
who informed him that both X and Y had already left home. Since the father of
the children (PW-5) was already on his way back to Coimbatore, he entrusted
his wife to look out for the children and co-ordinate with the van driver.
Sangeetha informed Karthikeyan that the children had already left the house,
whereafter she along with her relatives Vijay Kumar (PW-1) and Sanjai (PW-6)
started searching for the children.
3. Kamala Bai (PW-9), the paternal grandmother of the children had gone
to a Jain Temple around 8:00 a.m. in the morning. Upon returning home at
10:30 a.m. and finding Sangeetha in panic, Kamala Bai informed her that the
children had been picked up by a former van driver and it was conjectured that
the children must be in school. Vijay Kumar (PW-1) then went to the school
and found that the children had however not reached. After a frantic but futile
search, PW-1 lodged a police complaint (Ex. P1) with Vasuki (Sub-Inspector of
Page 2
Police, PW-42) at around 11AM under Section 363 of the Indian Penal Code
(in short “IPC”).
4. The Investigating Officer (“IO”, PW-47), thereafter, took over
investigation and recorded statements of the informant (PW-1), the school’s
principal - Anthony Raj (PW-10), as well as of the grandmother (PW-9) and the
just returned father of the children (PW-5). First trace of the missing children
was received at 6PM when Anthony Raj (PW-10) informed the IO (PW-47) that
one Chinnasamy (PW-22) had called to inform that two school bags with
identity cards bearing names of X and Y were found floating in and later fished
out from the Parambikulam-Axhiyar Project (“PAP”) Canal. A second lead
came to the Police from Karthikeyan (PW-2) who received a call from his
erstwhile employee – Anbu @ Gandhiraj (PW-7) who conveyed that one
Mohanakrishnan had borrowed a Maruti Omni Van from him that morning.
This aroused Karthikeyan’s suspicion since Mohanakrishnan was his former
employee whose services were terminated after it had been discovered that
he was borrowing money from the parents whose children were being
transported to school by PW-2’s agency. The IO (PW-47) accordingly advised
both Anbu (PW-7) and Karthikeyan (PW-2) to immediately alert the police
whenever Mohanakrishnan came to return the Omni Van. At around 9:45PM,
Anbu alerted the police that Mohanakrishnan had come to return the Van and
he had also confessed to the kidnapping, rape and murder of the two missing
children along with his friend Manoharan. Pursuant to the information received
by Anbu, Mohanakrishnan was arrested and a confessional statement was
Page 3
recorded in the presence of Anbu (PW-7) and one Santosh Kumar (not
examined as a witness). The Maruti Omni Van along with one Nokia
Cellphone and the driving license of Mohanakrishnan were also seized. The
IO consequently sent a report (Ex. P-30) for alteration of charge from under
Section 363, IPC to Sections 364(A), 376, 302 read with Section 201, IPC
which was received by the Magistrate at 11:45PM.
5. Having observed certain saliva and yellow-coloured stains on the seized
van, the IO requisitioned forensic assistance of Sarvanan (PW-43), Deputy
Director of Mobile Unit of Tamil Nadu Forensic Sciences Department. In the
presence Sarvanan (PW-43), Anbu (PW-7) and one Santosh Kumar
(unexamined), the van was thoroughly searched wherein a lady’s underwear
bearing the inscription “SBT Kidswear 75 c.m.” with hair strands was
recovered. Sarvanan (PW-43) further collected the betel nut saliva stains on
the left door of the van with a cotton swab for chemical examination, as well
as dried yellow-colour stains found on the seat and floormat, and the clothes
(namely pant, half shirt and underwear) worn by Mohanakrishnan (Mahazar
Exs. P-5 & P-6). Mohanakrishnan subsequently led a police team to the place
where he claimed to have raped X as well as to Deepalapatti, the place from
where the children had allegedly been pushed into the running waters of the
PAP canal.
6. The girl child’s body was found the subsequent morning in the PAP
canal by villagers near Palladam Taluk at 9:30AM, and the boy’s body was
later recovered from the canal around 12 kms from Deepalapatti. Postmortem
Page 4
was conducted by Dr. Jayasingh (PW-46) at the Coimbatore Medical College
and Hospital, wherein the following injuries were recorded on X’s body:
“The body was first seen by the undersigned at 02.15 pm on
30.10.10. Its condition then was rigor mortis present all over the
body. Post mortem commenced at 02.15 pm on 30.10.10.
Appearances found at the postmortem:-
Moderately nourished body of a female aged 10 yrs. Finger and
toenails bluish in colour. The body wearing blue colour “T” shirt with
white colour sticker named as “Suguna Rips” noted left side, black
colour track suit with white line order, white colour socks and white
colour shoes and rose colour shimmis. White colour frothy secretions
noted over both nostrils and mout. Water suddening noted over both
palms and soles.”
7. The following ante mortem injuries noted over the body:
“1. Liner vertical scratch marks 4 in numbers in varying size noted
over lateral aspect right elbow joint.
2. Transverse scratch abrasions 3 in number in varying size noted
over lateral aspect of left upper forearm.
3. A scratch mark 3 in number noted over lower part of left arm.
4. Contusion 2x1 cm x 0.5 depth noted over in the posterior
fourchettes and lateral wall of vagina. Hymen intact.
5. On examination of anus: - Anus found roomy measuring 3 cm
in diameter and mucosal tear 1x0.5 cm x mucosal deep noted over
left lateral aspect of the anus at the level of muco-cutaneous
junction.
On dissection of Thorax and Abdomen: Contusion 4 x 2 cm noted
over anterior aspect of lower end of uterus.”
8. Similarly, in Y’s postmortem examination, the following ante mortem
injuries were noted:
Page 5
“1. Bluish contusion 3 x 2 cm noted on middle of left side neck, 3
cm left to midline.
2. Bluish contusion 3 x 2 cm noted over outer aspect of right
forearm.
3. Bluish contusion noted over right side third intercostal space.
4. On dissection of scalp, skull and dura: sub scalpel contusion 20
x 10 cm noted over bi frontal region and bi parietal region. Diffuse
sub dural and sub arachnoid haemorrhages noted on both cerebral
hemispheres.
5. On bloodless dissection of neck: contusion 4 x 3 cm noted on
left side middle of neck. Hyoid bone found intact.”
9. The present review-petitioner, Manoharan (hereinafter “petitioner”) who
was stated to have perpetrated the crime along with Mohanakrishnan, was
arrested on 31.10.2010 at 7AM, as recorded in Ex. D-4. Manoharan made a
disclosure statement to the police (Ex. P-21) on the basis of which the IO
(PW-47) recovered lunch box of Y from his house. Further, after being
produced before the Magistrate the same day, the petitioner was sent to
judicial custody.
10. A Test Identification Parade was conducted on request of the IO
whereby Kamala Bai (PW-9) identified Mohanakrishnan as the driver of the
van in which the children had been kidnapped. Subsequently, both the
petitioner and Mohanakrishnan were medically examined on 04.11.2010
whereby samples of their blood and saliva were sent to the Tamil Nadu
Forensic Science Laboratory for DNA Analysis. A potency test of the petitioner
was conducted by Dr. J.R. Singh (PW-46), who in his medical report (Ex. PPage 6
56) found him potent and further noticed signs of injury around his private
parts.
11. During recovery proceedings under Section 27 of the Indian Evidence
Act (in short “IEA”), whilst in police custody, Mohanakrishnan shot and
wounded two police officers and was consequently shot dead by the Police on
09.11.2010. Thus, the trial against Mohanakrishnan was abated and the
petitioner alone was left to be tried as an accused.
12. Succinctly, the prosecution’s version of events is that Mohanakrishnan
using a borrowed school van, picked up two children (X and Y) who were
waiting to go to school at about 7:50 a.m. He further picked up his friend,
Manoharan from his house at 9:30 a.m. and subsequently, they took the
children to a remote location where after the girl child was raped and
sodomised. Subsequently, Manoharan and Mohanakrishnan purchased cow
dung powder (a poisonous substance) which was mixed in milk and then
administered to the children to end their life. However, both the children spat
out the substance and only ingested a small portion. Since poisoning did not
work, Mohanakrishnan and the petitioner threw both the children into the
turbulent waters of a nearby Canal, hence drowning them.
CASE HISTORY
13. Over the course of the trial, the prosecution examined forty-nine
witnesses in all including persons who witnessed abduction, purchase of milk
and cow dung powder and those having seen children in the custody of
Page 7
accused persons at various places. Further, various medical and forensic
evidence were produced, proving drowning and rape as well as injuries on
Petitioner’s body. A ‘last seen theory’ was built by the prosecution, in addition
to use of a confessional statement made by the petitioner under Section 164,
CrPC. The Trial Court ultimately held the Petitioner guilty under Section 120-
B, 364-A, 376, 302 r/w 34 and 201 IPC. Under Section 376, the Petitioner was
awarded life sentence and for offence under Section 302 IPC he was given
death sentence.
14. The Madras High Court set aside conviction of Petitioner under Sec.
120-B and 364A IPC but confirmed the sentences under Sec. 376, 302 r/w 34
and 201 IPC. After considering aggravating and mitigating circumstances, the
High Court confirmed death sentence awarded by the Trial Court.
15. Thereafter the Petitioner filed a Special Leave Petition under Article 136
whereby this Court dismissed his appeal and confirmed the death sentence by
majority, observing that the case fell in the category of the ‘rarest of rare’
cases. After considering all evidence on record and contentions of the
counsels, the majority opinion of this Court read as follows:
“In the circumstances, we have no doubt that the trial court and High
Court have correctly applied and balanced aggravating
circumstances with mitigating circumstances to find that the crime
committed was cold blooded and involves the rape of a minor girl
and murder of two children in the most heinous fashion possible. No
remorse has been shown by the Petitioner at all and given the nature
of the crime as stated in paragraph 84 of the High Court’s judgment it
is unlikely that the Petitioner, if set free, would not be capable of
Page 8
committing such a crime yet again. The fact that the Petitioner made
a confessional statement would not, on the facts of this case, mean
that he showed remorse for committing such a heinous crime. He did
not stand by this confessional statement, but falsely retracted only
those parts of the statement which implicated him of both the rape of
the young girl and the murder of both her and her little brother.
Consequently, we confirm the death sentence and dismiss the
appeals.”
16. Khanna J., in his minority opinion also upheld conviction under the
various offences concerned, but dissented on the quantum of sentence,
holding as follows:
“I would, therefore, uphold and maintain conviction of the appellant
under Sections 302, 376(2)(f) and (g) and 201 IPC and the
sentences awarded under Sections 376(2)(f) and (g) and 201 IPC.
To this extent the appeal is dismissed. In view of the aforesaid
discussion and on balancing aggravating and mitigating
circumstances, in my opinion, the present case does not fall under
the category of “rarest of the rare” case i.e. there is no alternative but
to impose death sentence. It would fall within the special category of
cases, where the appellant should be directed to suffer sentence for
life i.e. till his natural death, without remission/commutation under
Sections 432 and 433 CrPC. To this extent I would allow the appeal.”
17. The Petitioner then filed the present petition for review of the said
judgement and order dated 01.08.2019, which was heard at considerable
length in open Court following the parameters evolved in Mohd. Arif @
Ashfaq v. Registrar, Supreme Court of India2
, wherein a Constitutional
Bench of this Court held that in cases of death penalty, since the punishment
is irreversible and Article 21 of the convict is violated, it is necessary to provide
at least one opportunity for oral arguments on the question of sentence.
2 (2014) 9 SCC 737.
Page 9
SCOPE OF REVIEW
18. At the outset, it may be clarified that the scope of Review even in death
penalty cases has been narrowed down in Vikram Singh v. State of Punjab3
,
laying down that review can only be on a glaring error apparent on the face of
the judgement or order. A mere change or addition of grounds cannot be
allowed at the stage of review. This Court thus held as follows:
“23. In view of the above, it is clear that scope, ambit and parameters
of review jurisdiction are well defined. Normally in a criminal
proceeding, review applications cannot be entertained except on the
ground of error apparent on the face of the record. Further, the
power given to this Court under Article 137 is wider and in an
appropriate case can be exercised to mitigate a manifest injustice.
By review application an applicant cannot be allowed to reargue the
appeal on the grounds which were urged at the time of the hearing of
the criminal appeal. Even if the applicant succeeds in establishing
that there may be another view possible on the conviction or
sentence of the accused that is not a sufficient ground for review.
This Court shall exercise its jurisdiction to review only when a glaring
omission or patent mistake has crept in the earlier decision due to
judicial fallibility. There has to be an error apparent on the face of the
record leading to miscarriage of justice to exercise the review
jurisdiction under Article 137 read with Order 40 Rule 1. There has to
be a material error manifest on the face of the record with results in
the miscarriage of justice.”
19. The above cited decision was reiterated in Mukesh v. State of (NCT
of Delhi)4 where also similar restrictive principles were applied and re-affirmed
while considering the scope of review in death penalty cases. Reliance was
placed on the dictum in Kamlesh Verma v. Mayawati5
, prescribing that
3 (2017) 8 SCC 518.
4 (2018) 8 SCC 149.
5 (2013) 8 SCC 320.
Page 10
Courts should refrain from re-appreciating the entirety of evidence only to
arrive at a different possible conclusion, besides illustrating an inexhaustible
list of instances where review shall not be maintainable. The relevant part
reads as follows:
“20.2. When the review will not be maintainable:
(i) A repetition of old and overruled argument is not enough to reopen
concluded adjudications.
(ii) Minor mistakes of inconsequential import.
(iii) Review proceedings cannot be equated with the original hearing
of the case.
(iv) Review is not maintainable unless the material error, manifest on
the face of the order, undermines its soundness or results in
miscarriage of justice.
(v) A review is by no means an appeal in disguise whereby an
erroneous decision is reheard and corrected but lies only for patent
error.
(vi) The mere possibility of two views on the subject cannot be a
ground for review.
(vii) The error apparent on the face of the record should not be an
error which has to be fished out and searched.
(viii) The appreciation of evidence on record is fully within the domain
of the appellate court, it cannot be permitted to be advanced in the
review petition.
(ix) Review is not maintainable when the same relief sought at the
time of arguing the main matter had been negatived.”
20. It is, therefore, to be kept in mind that the scope of a Review is more
constrained than that of an appeal. A party cannot be allowed to reurge the
case on merits to effectively seek re-appreciation of evidence when the matter
has already been decided earlier, even if on different grounds. Interference in
the earlier judgement assailed in a Review is permissible only on the basis of
Page 11
an error apparent on the face of record or discovery of important new
evidence which has a direct bearing on the ultimate outcome of the case and
if not well appreciated, would cause manifest injustice.
21. Learned Senior Counsel for the petitioner, Mr. Siddharth Luthra has
made a deft challenge to our judgment, through a multifaceted attack on both
merits and procedure of the case. He forcefully urged for setting aside the
conviction and in the alternate, requested commutation of the sentence of
death.
VOLUNTARINESS OF CONFESSION & EFFECT OF RETRACTION
22. The arguments for the Petitioner begun with challenge to reliance by
this Court on confessional statement of the accused. Mr. Luthra strenuously
contended that strict compliance with the safeguards for recording a
confessional statement as mandated under Section 164 are mandatory, as
ruled in Shivappa v. State of Karnataka6
. He strongly disputed the
admissibility of the confessional statement made by the petitioner before a
Magistrate on 20.11.2010 on the premise that:
(a) Confession was coerced and involuntary, and in contravention of
Section 163, CrPC and Section 24, IEA for first, the petitioner had been
physically assaulted by the police whilst in custody, as evidenced
through answer to Question 8 posed by the Magistrate during
preliminary examination on 19.11.2010. Second, the petitioner was
6 (1995) 2 SCC 76
Page 12
under severe psychological stress owing to the in-custody killing of the
co-accused Mohanakrishnan on 09.11.2010; and third, circumstances
surrounding confession were suspicious, for the IO (PW-47) moved an
application stating that the petitioner was ready to volunteer a
confession when he was in judicial and not police custody.
(b) The Magistrate failed to comply with the mandatory procedure as
prescribed under Section 164, CrPC since he did not inform the
petitioner that he would not be sent to police custody after recording of
the confessional statement.
23. In light of the vehement attempt at assailing the confessional statement
as being non-voluntary and violative of the right guaranteed under Article
20(3) of the Constitution and in the alternate its reliance for having been
retracted by the petitioner, it may be briefly noticed that on a conjoint reading
of the confessional scheme comprising of Sections 163, 164 CrPC and
Section 24 IEA as construed in a catena of decisions of this Court, it is
obvious that even in the absence of an express provision for retracting a
confessionary statement once made, the Courts have preferred a rule of
prudence whereby in case of retraction, the Court reduces the probative value
of such confessionary statements and seeks corroborating evidence.
24. Hence, the cornerstone of a valid confession in India is only whether
such a statement was made in compliance with statutory provisions which
mandate that the same must be before the Magistrate after compliance with
Page 13
certain safeguards meant to ensure voluntariness and lack of coercion by the
police. This has been so noted by this Court in Bharat v. State of U.P.7
:
“7. ... Confessions can be acted upon if the court is satisfied that
they are voluntary and that they are true. The voluntary nature of the
confession depends upon whether there was any threat, inducement
or promise and its truth is judged in the context of the entire
prosecution case. The confession must fit into the proved facts and
not run counter to them. When the voluntary character of the
confession and its truth are accepted it is safe to rely on it. Indeed a
confession, if it is voluntary and true and not made under any
inducement or threat or promise, is the most patent piece of
evidence against the maker. Retracted confession, however, stands
on a slightly different footing. As the Privy Council once stated, in
India it is the rule to find a confession and to find it retracted later. A
court may take into account the retracted confession, but it must look
for the reasons for the making of the confession as well as for its
retraction, and must weigh the two to determine whether the
retraction affects the voluntary nature of the confession or not. If the
court is satisfied that it was retracted because of an after thought or
advice, the retraction may not weigh with the court if the general
facts proved in the case and the tenor of the confession as made
and the circumstances of its making and withdrawal warrant its user.
All the same, the courts do not act upon the retracted confession
without finding assurance from some other sources as to the guilt of
the accused. Therefore, it can be stated that a true confession made
voluntarily may be acted upon with slight evidence to corroborate it,
but a retracted confession requires the general assurance that the
retraction was an after thought and that the earlier statement was
true. ...”
25. The objective behind such a provision has been explored by this Court
in various decisions wherein it has been noted that provisions permitting use
of confessionary statements in criminal trials were statutorily included as an
acknowledgement of the possibility that in certain circumstances an accused
may voluntarily confess to his offence(s).
7 (1971) 3 SCC 950
Page 14
26. From a chronological analysis of the confessional statement of
Petitioner dated 20.11.2010 (Ex.P.18) as well as the preliminary examination
held on 19.11.2010, it is apparent that the learned Magistrate - S.S.
Sathiamoorthy (PW-28) duly complied with all procedural requirements for
recording of a confessional statement and affirmatively satisfied himself of the
voluntariness of the petitioner’s confession:
 a. During preliminary examination, the petitioner informed the
Magistrate that he was brought from Central Jail, Coimbatore on
19.11.2010, hence abridging the possibility of any coercion or
influence by the police. Further, a perusal of the record shows that
petitioner was last in police custody only on 11.11.2010 and hence
there is no doubt that he had been in judicial custody for some time
prior to giving a confessional statement. Hence per Abdul Razak
Murlaza Dafadar v. State of Maharashtra8
 it can be inferred that he
was not under the influence of the investigating agency.
b. In reply to Question 8 during preliminary examination on 19.11.2010,
when asked by the Magistrate whether someone tortured him, the
petitioner does say that he was beaten by the police. However, when
asked whether the “police tortured and compel you to give statement
like this”, the petitioner denied any such torture or compulsion.
Similarly, when the Magistrate asked him whether he was told some
sweet words such as “the confession statement will be beneficial or
8 AIR 1970 SC 283.
Page 15
where you threatened by police or by anybody else that if statement
was not given”, the petitioner specifically denied the same. He also
acknowledged the fact that he was not under compulsion to give a
confession statement and that he was aware of the fact that such
statement could be used against him. Further, when re-questioned
by the Magistrate if the petitioner was tortured, he answered in the
negative. Hence, not only was the petitioner inconsistent in his
claims, but further it is evident that the alleged physical assault by
the police, if at all, would have been committed weeks before the
confession. Vague and passing claims of police assault, supposedly
committed far before the confessional date, cannot be a ground for
holding the confession as coerced.
c. After preliminary questioning on 19.11.2010, the petitioner was
entrusted to the Prison Warden and sent back to judicial custody for
reflection “after duly informing him that he was not under obligation
to give confessional statement.” The petitioner was re-produced
before the Magistrate on the next day at 2PM and was again given
an opportunity to change his mind and not confess. The Magistrate
once more satisfied himself of the voluntariness of the petitioner and
the absence of any police influence. Hence, it is clear that an
adequate opportunity to recant was provided and the Magistrate
ensured that any possible lingering effects of alleged beatings or
psychological stress post encounter of co-accused, would have been
Page 16
mitigated. It is also apparent that the Magistarte duly informed the
petitioner about the repurcussions of his confessional statement, and
made no false assurance of it helping his case, as had been made in
State of Assam v. Rabindra Nath Guha9
, which has erroneously
been relied upon by Mr. Luthra.
d. The statement once recorded, was thereafter read out to the
petitioner who signed it to be correct. The Magistrate signed the
statement at 4:30PM on 20.11.2010, and afterwards sent the
petitioner to judicial custody. The Magistrate thus was fully conscious
of his statutory obligation and factually ensured that the petitioner
was not sent to police custody post the confessional statement. It is
further clear that the petitioner was kept in judicial custody for almost
twenty months after the confession, over the course of which there
was no likelihood of him being entrusted to police, and still no protest
or attempt to retract the confession was made by him.
e. The fact that the application to record the petitioner’s statement was
moved by the IO is inconsequential, as the petitioner was neither in
police custody nor, as acknowledged by him, the police officials
interacted with him during judicial custody. It is thus far-fetched to
use the fact that police put forth the request for recording of
confession to suggest that the confession was involuntary or secured
at the behest of police.
9 1982 Cri LJ 216.
Page 17
27. Further, it is essential to note that the petitioner failed to put forth any
protest against the confessional statement despite having multiple
opportunities during the course of trial. This Court has held earlier in
Shankaria v. State of Rajasthan10 that retractions must be made by the
accused as soon as possible, otherwise there would be a strong presumption
of voluntariness in the confession.
28. The confession, in the present case, was not challenged during stage of
framing of charge or over the course of examination of forty-seven prosecution
witnesses, but instead only partly disputed through a letter written in secret
just before petitioner’s examination under Section 313 of the Code. It is thus
evident that such retraction at the fag-end of the trial, was not natural but
rather meticulously formulated, perhaps as a part of defence strategy. Hence,
there remains no doubt about the voluntariness of the confession of
20.11.2010 or it being unaffected by subsequent retraction.
29. That apart, even if the confession dated 20.11.2010 were to be treated
as being retracted vide letter dated 25.07.2012 (as adopted during
examination under Section 313 of the Code), still the original confession can
be relied upon. Coupled with corroborating evidence, conviction can also be
secured on the strength of such confession. The rule regarding use of such
retracted confessions was noted by this Court in Subramania Goundan v.
10 (1978) 3 SCC 435.
Page 18
State of Madras11 as well as by a four-Judge Bench of this Court in Pyare Lal
Bhargava v. State of Rajasthan12
, holding that:
 “A retracted confession may form the legal basis of a conviction if
the court is satisfied that it was true and was voluntarily made. But it
has been held that a court shall not base a conviction on such a
confession without corroboration. It is not a rule of law, but is only a
rule of prudence. It cannot even be laid down as an inflexible rule of
practice or prudence that under no circumstances such a conviction
can be made without corroboration, for a court may, in a particular
case, be convinced of the absolute truth of a confession and
prepared to act upon it without corroboration; but it may be laid down
as a general rule of practice that it is unsafe to rely upon a
confession, much less on a retracted confession, unless the court is
satisfied that the retracted confession is true and voluntarily made
and has been corroborated in material particulars.”
30. Still further, it is clear that even in the retraction statement, the petitioner
has made substantial admissions which read together with prosecution
evidence, are sufficient to convict him. Through the letter dated 25.07.2012,
the Petitioner merely restates his confession with certain omissions and a few
denials as compared to his earlier statement. Although he agrees to be at the
place of the occurrence along with the now deceased Mohanakrishnan
throughout the incident, instead of admitting an equal role in commission of
rape and murder, he portrays himself to be a mere helpless bystander. The
petitioner has attempted to justify his retraction by stating that he had told the
truth to the Magistrate but his statement was not read out to him and hence
the Magistrate’s affirmation under Section 164 of the Code is incorrect.
11 AIR 1958 SC 66.
12 AIR 1963 SC 1094.
Page 19
31. A comparison of the retraction with the confession dated 20.11.2010
further shows that it is merely an improvement. The Petitioner has admitted to
all the general circumstances of the incident, i.e. having been present at the
scene of all crimes, being friend of the co-accused and of the offences as
claimed by the prosecution to have occurred. However, he merely contends
that the crimes were committed by the co-accused and not by the Petitioner
himself. Regardless thereto, there are sufficient inculpatory admissions in the
letter dated 25.07.2012 to place a strong burden of proof on the Petitioner
under Section 106 of the IEA.
32. Moreover, we must note that the petitioner has not been convicted by
the Courts below or this Court, solely on the basis of his confession made
under Section 164 of the Code. The confession has been corroborated by
enough evidence and it would not be a stretch to state that even independent
of such confessional statement, this Court would nevertheless have reached a
firm conclusion of guilt.
INDEPENDENT RE-APPRECIATION OF EVIDENCE
33. The second contention raised by Mr. Luthra is that this Court decided
the appeal without independently re-appreciating all the material on record.
We are in strong disagreement with this contention. This Court critically
analysed all the material witnesses and documents exhibited on record which
were referred to during the course of arguments. A careful examination of
such evidence lead to a unanimous finding of guilt against the Petitioner. It
was noted by the majority that:
Page 20
“PW.20, PW.25 and PW.23 all saw the two accused together with the
children at different times on 29.10.2010. Indeed, even if one were to
read the confessional statement of the Appellant together with the
retraction thereof, the fact that he purchased milk at 1.00 p.m. from
PW.23 is clearly made out and the fact that Mohanakrishnan went to
meet the tailor, was also admitted by him in both the original
confessional statement as well as the retraction. It is clear therefore
that the evidence of PW.20 and 23 are corroborated by the
confessional statement and the retraction made by the Appellant and
therefore the factum of the two accused being with the two children
in the vehicle is clearly made out and thus the High Court’s
conclusion that the last seen theory can be relied upon cannot
possibly be assailed.”
34. Such an independent re-appreciation was also conducted by Khanna J.
in his minority opinion in para nos. 23 to 29.
INADEQUACY OF LEGAL REPRESENTATION
35. Mr. Luthra seeks to make a third core challenge by placing reliance on
Article 21 of the Constitution of India, claiming that it mandates adequate and
efficient legal assistance, the denial whereof would amount to condemning
one unheard.
36. There cannot be any quarrel with the cited proposition for it is a
fundamental tenet of criminal jurisprudence, least not because of our
Constitution, that every person has a right to effective legal assistance. In
case an accused cannot afford the same, then it is the responsibility of the
State to provide free legal aid, as definitively noted in Hussainara Khatoon v.
State of Bihar13. However, we feel that such a right has been protected in the
13 (1980) 1 SCC 98.
Page 21
present case and the legal representation accorded to the petitioner was not
inadequate.
37. At the outset, as noted in State v. Navjot Sandhu14 judicial scrutiny of a
counsel’s performance must be careful, deferential and circumspect for not
doing so would give rise to the dangerous possibility of convicts raising such
pleas of inadequate legal assistance after adverse verdicts. It would also be
useful to cite Strickland v. Washington15 wherein the Supreme Court of the
United States, laid down that to demand re-trial or acquittal on grounds of
inadequate legal representation, the accused must show both that the
assistance of the counsel was deficient per an objective standard of
reasonableness as developed by customary practice, as well as that such
deficiency has with a reasonable probability affected the outcome of the case,
such that had he received adequate representation, the result would have
been different.
38. It is clear that the petitioner has failed to demonstrate either of these
legs in the present case. Although it is correct that seven counsels refused to
defend the Petitioner and there was a resolution by the bar to not take up his
brief, but the Trial Court ensured the services of a legal aid counsel who ably
conducted petitioner’s defence during the trial. The record reveals that from
23.02.2011 till 18.06.2012, no effective proceedings were held and post
18.06.2012, legal aid counsel Mrs. A. Sharmila appeared on behalf of the
petitioner. The length and quality of cross-examination conducted by the court14 (2005) 11 SCC 600.
15 466 U.S. 668 (1984).
Page 22
appointed counsel testifies her legal acumen and professional ability. Hence,
there can be no question on the adequacy of counsel’s performance.
39. Notwithstanding the above determination, we must note that in the
present facts no prejudice has been caused to the petitioner for want of
adequate or proper legal assistance. Not only did the High Court reappreciate
the entire evidence, but it also conducted another examination of the
Petitioner under Section 313, CrPC. Furthermore, the High Court appointed a
Senior Advocate, Mr. A Raghunathan, in addition to Advocate Smt. Vairam, to
provide the best legal services to the Petitioner. Similarly, in appeal, this Court
both re-appreciated the evidence and ensured due legal representation. Even
in the present Review, the petitioner’s interests are protected by an
outstanding Senior Counsel and as a matter of abundant caution, we have
also conducted an elaborate analysis. We thus do not find this to be a case of
deficient legal assistance, affecting the Petitioner’s rights under Article 21 of
the Constitution.
40. The plea regarding absence of a counsel during proceedings before the
Magistrate under section 164, CrPC resulting into any prejudice, are
misconceived. What mandatorily is needed, as noted earlier, is that the
Magistrate must satisfy himself of the voluntariness of the statement and all
the statutory safeguards which includes bringing the repercussions and the
voluntariness of making confessions to the knowledge of the accused, must
be meticulously complied with. It is pertinent to take note of the first Proviso to
Section 164(1), added with effect from 31.12.2009, which specifies that:
Page 23
“Provided that any confession or statement made under this subsection may also be recorded by audio-video electronic means in the
presence of the advocate of the person accused of an offence.”
 (emphasis supplied)
41. Section 164 of the Code thus does not contemplate that a confession or
statement should necessarily be made in the presence of the advocate(s),
except, when such confessional statement is recorded with audio-video
electronic means.
DISCREPANCIES IN ARREST & RECOVERY OF EVIDENCE
42. The next contention of Mr. Luthra revolves around the date of arrest of
the petitioner. According to him, the petitioner was arrested from his village
Anglapurchi post-midnight on 29.10.2010 and not on 31.10.2010 at 7:00 a.m.
The petitioner was not sent to custody after formal arrest till an alleged
confession was recorded before the Village Administrative Officer, S. Ganesan
(PW-30). Mr. Luthra relies upon the cross-examination of PW-47 where he is
stated to have admitted that the petitioner was caught in his village after
midnight of 29.10.2010.
43. Not only is the dispute re: the date of arrest immaterial for determination
of petitioner’s guilt in the present case, but we otherwise do not find any
substance therein. First, the petitioner’s arrest on 31.10.2010 at 7:00 a.m. is
proved by Exhibit D4 which is duly signed by his father (DW-1). P. Ramasamy
(DW-1) has admitted his signatures on the Exhibit D4, proving the date and
time of the arrest. Second, the plea at best assumes violation of Section 167
of CrPC which mandates production of the suspect before the jurisdictional
Page 24
magistrate within 24 hours of arrest. The adverse impact of such assumed
variation on the Judicial proceedings has also not been convincingly
demonstrated. Mr. Luthra’s contention would have carried some weight had it
been a case of making confessional statement by the petitioner before the
Judicial Magistrate on 30/31.10.2010, that is, when he was allegedly in police
custody.
44. Mr. Luthra very ably made an attempt to cast doubt on the recovery of
the underwear of the deceased girl as well as the presence of pubic hair of the
Petitioner on the said underwear. It was argued that the underwear worn by
the deceased remained in the custody of the police till 01.11.2010, therefore
plantation of hair on the panty cannot be ruled out.
45. Firstly, such a plea is at variance from the submission made before the
High Court where it was argued that police had planted the pubic hair on
04.11.2010. Secondly, there is no factual discrepancy in the prosecution case
as may be seen from the following facts:
i. The police found Mohanakrishnan in the house of one A. Anbu
(PW-7) on 29.10.2010 at about 9:45 pm. Pursuant to this, the
Maruti Van was inspected by the police in presence of PW-7 and
one Santosh Kumar. Appropriately, Mahazar (Ex.P.4) was prepared
by the police incorporating details of seizure of van and presence of
stains on its doors and floor mat.
Page 25
ii. Thereafter, A. Sarvanan (PW-43), Deputy Director of Mobile Unit of
Tamil Nadu Forensic Sciences Department was called by the IO
(PW-47) at around midnight of 29/30.10.2010. PW-43 examined
the van whereby the underwear of the deceased girl (MO-1) was
found with hair strands. Cellophane tape was applied to the hair
strands by PW-43, to keep them at their spot and the MO-1 was
then put in a cover and sealed. Further, PW-47 sealed the same in
an ‘Angelform’ brassieres cardboard box, obtained from vicinity and
seized it as Mahazar (Ex.P.5).
iii. Accordingly, Ex.P.5 reached the Judicial Magistrate on 30.10.2010
along with Form 95 pertaining to the MO-1. This explains the delay
of one day in production of Ex.P.5 before the Judicial Magistrate.
iv. Moreover, since 30.10.2010 was a Saturday, the Judicial
Magistrate directed Ex.P.5 to be produced again on the next
working day i.e. 01.11.2010. Hence, the box was re-produced
before the Judicial Magistrate on 01.12.2010 and was then
forwarded to Tamil Nadu Forensic Sciences Department for further
analysis.
46. PW-43 prepared his report (Ex.P.38) and sent it to the IO for further
forensic examination, wherein it was recorded that:
“a) A Pink coloured panty printed letters “SBT kids wear” “75cms”
with pale brownish starchy like stains with small hair pieces on its
inner surface was found beneath the back seat of the vehicle was
identified, collected. The place where the hair pieces were seen were
Page 26
marked and pasted with cellphone tape in order to safety transport
the vital cue materials for comprehensive Forensic analysis.”
47. Additionally, Mrs. Lakshmi Balasubramanian (PW-49), Deputy Director
of DNA Division of the Forensic Science Department stated in her crossexamination that the underwear was received by her for examination, in a
sealed parcel. She has said:
“It is correct to state that my first prerogative is to satisfy that the seal
of the container in which the items received for testing, is not broken.
It is correct to state that the items and the paper covers would be
sealed with the Medical Officer’s seal. The parcel received by me
contained the Medical Officer’s seal and not any Court seal. It is
correct to state that in my report I have not mentioned that the seals
were not broken.
XXX
By “correct seals”, I mean that the same seal on the letter and the
sample seal on the paper covers are the same.”
48. Analysis of the depositions as reproduced above prove that the
underwear was recovered and sent for forensic examination without any
tampering. The seal on the parcel containing the underwear was still intact
when PW-49 received it for forensic examination.
49. We find that the contention of the learned Senior Counsel, pertaining to
non-production of the property room Register is of no force since it has not
been raised before at any stage of the proceedings and thus cannot be
allowed to be argued afresh at the stage of Review. Furthermore, casting a
doubt on the identification of MO-1 by the father of deceased (PW-1) is also
baseless and holds no ground. Merely because PW-1 did not dress his
Page 27
daughter on the date of the incident does not imply that he would not
recognize a piece of clothing of his daughter. PW-1 has clearly deposed that
MO-1 belongs to his daughter.
ERRONEOUS CONVICTION UNDER SECTION 376 IPC
50. In the judgment-under-review, it was argued by Mr. Luthra that even per
the confessional statement, the accused only committed anal intercourse
which is punishable under Section 377 IPC, and he has been wrongly
convicted under Section 376 IPC. Such a plea, however, does not find support
from the overwhelming evidence to the contrary. First, relevant portions of the
confessional statement need to be extracted:
“… I asked him to give me a chance. He asked me to do it with the
girl. Seated from the front seat, Mohan saw. I went and saw the girl
who was without a pant. I placed my penis on the front side when the
girl cried saying it was paining. Then I did through backside through
anus. Even that did not come good for me. Then I masturbated and
brought out semen. …”
51. The confessional statement lucidly reveals that the accused placed his
penis on the vagina of the deceased girl consequent to which she cried. This
act of the Petitioner satisfies all relevant ingredients of Section 376 as it
existed at the relevant time. The only dispute that remains is whether the
Petitioner committed peno-vaginal penetration or not. However, the medical
evidence shows that vaginal intercourse had been committed with X and that
there was a contusion on the petitioner’s private part. Relevant portions of the
post-mortem of X as deposed by PW-46 are reproduced below:
Page 28
“… The anti-mortem injuries that had been caused on the body are:
XXX
4) A contusion of 2 x 1 cm x 0.5 cm on the inner lower aspect of
Vagina and the inner edge of uterus. Hymen was in tact.
5) When anus was examined, it was found to be bigger in size, 3 cm
wide.”
52. Furthermore, following the orders of Magistrate on 04.11.2010, Dr.
Jeyasingh examined Manoharan and observed an injury on his penis in his
report (Ex.P.56) as:
“A dark colour contusion noted over proximal part of glands penis
around urethral orifice.”
53. It is evident from the deposition of PW-46 that the vagina of X was
penetrated. Also, Dr. Jeyasingh (PW-46), who conducted the autopsy on the
body of X had stated in his final opinion (Ex.P.50):
“The deceased would appear to have died of DROWNING. Injuries
noted on the vagina and anus due to forcible sexual assault.”
54. Furthermore, the evidence of his pubic hair found in the girl’s underwear
coupled with DNA Report that those were his hair belies his plea of not having
committed the ghastly crime. The DNA Report, as deposed by Mrs. Lakshmi
Balasubramanian (PW-49), affirms the pubic hair found in the underwear of X
to be that of the petitioner. Relevant portion of the statement of PW-49,
delineating the DNA Report reads as follows:
“Conclusion: From the DNA typing results of the above samples, it is
found that the pubic hair in item [8] belongs to a human male
individual and is that of alleged accused -2 Manoharan. The report
DNA 220/2010 is given and signed by me. The said report with four
annexures is marked as Ex.P.48B.”
Page 29
55. Considering the final opinion of Dr. Jeyasingh stating that the girl was
subjected to sexual assault; injury on the penis of petitioner; recovery of dead
body of X without underwear; recovery of underwear from the Maruti Van;
father of X recognising the underwear; finding hair on the recovered
underwear and matching of DNA of hair with that of Manoharan, we are of the
view that even in absence of the confessional statement of the petitioner, it is
established the petitioner committed offence under Section 376 IPC. The
retraction dated 25.07.2012 may merely eclipse some part of the inculpatory
evidence but cannot be construed to render the entire evidence exculpatory.
Hence, we do not find any substance in the contention of Mr. Luthra and are of
the view that the petitioner is justly convicted for offence under Section 376
IPC.
ERRONEOUS RELIANCE ON POCSO
56. It was then urged that this Court ought not to have relied on a recent
amendment to the Protection of Children from Sexual Offences (POCSO) Act,
2012 to justify death penalty, as the new law was non-existent on the date of
occurrence and hence cannot be applied retrospectively in derogation to
Article 20 of the Constitution.
57. Although the plea is attractive at first glance, it must be noted that the
Petitioner has not been convicted or sentenced under the POCSO Act.
Instead, only a passing reference was made to pinpoint whether the present
case was rarest of the rare and whether it would shock the conscience of the
Page 30
society. It has been noted by this Court in Macchi Singh v. State of Punjab16
and various other judgments that in order to uphold the guarantee under
Article 21 and to reduce arbitrariness caused by discretion of judges in
sentencing, it should be the opinion of the society and not the personal
opinion of the judge which should be considered whilst awarding sentence of
death. Towards the same, a change in law during pendency of the case is an
apt indicator of societal opinion as legislated by elected representatives. It is
not the case here that Petitioner has not been convicted of an offence
otherwise not punishable with death.
SENTENCING
58. Lastly, Mr. Luthra impassionedly urged that this is not a fit case for
award of death penalty, especially when, the death penalty has been
confirmed only by way of 2:1 split decision. Relying on the minority opinion of
Thomas J. in Suthenraraja v. State,17 he vehemently argued that in a case
where one of the Hon’ble Judges did not deem it appropriate to award death
penalty, that in itself ought to be a sufficient ground to commute death
sentence in Review. He also urged this to be a case of ‘residual doubt’, as
evolved in Ravishankar v. State of Madhya Pradesh18
, which is also a
mitigating circumstance to be taken note of by the Court whilst considering
whether the case falls in the category of “rarest of rare cases”. He further
16 AIR 1983 SC 957.
17 (1999) 9 SCC 323.
18 2019 SCC OnLine SC 1290
Page 31
argued that neither the High Court or this Court gave due weightage to
mitigating circumstances such as:
(i) Lack of adequate opportunity to place on record material/evidence of
mitigating circumstances.
(ii) Young age (less than 30 years) of petitioner, and aged parents.
(iii) Absence of any previous criminal history.
(iv) Backward socio-economic background.
(v) Death ought not to be awarded in cases of circumstantial evidence.
59. At this juncture, it is necessary to highlight that the contention of Mr.
Luthra urging that death ought not to be awarded in case of a single dissent,
notwithstanding the opinion of the majority is unsupported in view of more
than one decisions of this Court. In Devender Pal Singh v. State of NCT of
Delhi19 and also in Krishna Mochi v. State of Bihar20
, a concurrent Bench
had refused to review the death sentence which had earlier been upheld in
appeal by two out of three judges of this Court. The reliance on
Suthendraraja (supra) itself is erroneous for the proposition relied upon was
delivered in a minority opinion, which was unsupported both by the order of
the Court and also was disagreed with by Quadri J., who noted:
“The ambit of Rule XL(1) of the Supreme Court Rules which provides
grounds for review, as interpreted by this Court in P.N. Eswara
Iyer v. Registrar, Supreme Court of India [(1980) 4 SCC 680] vis-àvis criminal proceedings, is not confined to “an error apparent on the
face of the record”. Even so by the process of interpretation it cannot
be stretched to embrace the premise indicated by my learned brother
19 (2003) 2 SCC 501.
20 (2003) 2 SCC 501.
Page 32
as a ground for review. That apart there are two difficulties in the
way. The first is that the acceptance of the said proposition would
result in equating the opinion of the majority to a ground analogous
to “an error apparent on the face of the record” and secondly in a
Bench of three Judges or of greater strength if a learned Judge is not
inclined to confirm the death sentence imposed on a convict, the
majority will be precluded from confirming the death sentence as that
per se would become open to review.
60. Further, even sans the aforesaid decisions, we are not inclined to
accept such a reasoning for it is contrary to the established jurisprudence of
precedents and interpretation of verdicts with multiple opinions. It is settled in
law that dissenting opinions have little precedential value and that there is no
difference in operation between decisions rendered unanimously or those
tendered by majority, albeit with minority dissenting views.
61. Although Mr. Luthra’s contention that the petitioner has not received
adequate opportunity to place material regarding his circumstances is
unsubstantiated, we have nevertheless re-considered sentencing. We have
re-visited the mitigating circumstances against aggravating circumstances, as
well as a report commissioned by this Court during the course of appeal and
submitted by the jail superintendent which reveals that the conduct of the
Petitioner is merely satisfactory and he has not undertaken any study or
anything else to show any signs of reformation.
62. It has been made clear in the preceding parts of this judgment that the
prosecution case has been established through numerous evidences in
addition to there being a clear confession, which proves the Petitioner’s guilt
beyond any residual doubt. Conflicting versions have been deposed by the
Page 33
Petitioner and the defence witnesses, and no explanation to discharge the
onus under Section 106 has been provided. Hence, it is not a case fit for
application of the theory of “residual doubt” as noted in Ravishankar (supra).
Accordingly, even the contention that death ought not to be awarded
considering that the present case is one involving circumstantial evidence is
unfounded. It is no longer res integra that there can be no hard rule of not
awarding death in cases based on circumstantial evidence owing to recent
developments in medical science and the possibility of abuse by seasoned
criminals.
63. Furthermore, there is nothing to support the characterisation of the
accused as being a helpless, illiterate young adult who is a victim of his socioeconomic circumstances. Far from being so, it is clear through the version of
events that the accused had the presence of mind to craft his own defence
and attempt to retract his confession through an elaborately written eleven
page letter addressed to the Magistrate and had further received adequate
legal representation.
64. Mr. Luthra’s reliance on the retraction letter to contend that in so far as
the statement shows that he stopped the co-accused from committing rape, is
evident of the fact that he has remorse which entitles him to commutation, if
not acquittal, is misplaced. As noted earlier, the retraction was extremely
belated and only a defence to shield himself. Further, medical evidence has
proved that rape was committed on the deceased girl. It is hence factually
incorrect to state that the Petitioner prevented the co-accused from raping the
Page 34
girl and is nothing more than a belated lie at the end of the trial. Hence, the
exculpatory parts ought to be excluded per Nishi Kant Jha v. State of
Bihar21
.
65. Even observed devoid of any aggravating circumstances, mere young
age and presence of aged parents cannot be grounds for commutation. One
may view that such young age poses a continuous burden on the State and
presents a longer risk to society, hence warranting more serious intervention
by Courts. Similarly, just because the now deceased co-accused
Mohanakrishnan was the mastermind whose offence was comparatively more
egregious, we cannot commute the otherwise barbarically shocking offences
of the petitioner. We are also not inclined to give leeway of the lack of criminal
record, considering that the current crime was not just one offence, but
comprised of multiple offences over the series of many hours.
66. Even if the cases involving confession merit some leniency and
compassion, however, as was earlier noted in our majority opinion, the
attempted retraction of the statement shows how the petitioner was in fact
remorseless. Such belated retractions further lay rise to the fear that any
remorse or repentance being shown by the petitioner now may be temporary
and that he can relapse to his old ways. Irrespective of the underlying reasons
behind such retraction, whether it be the fear of death or feeling that he was
not getting any benefit of his earlier confession, but the possibility of recidivism
21 1969 SCC (1) 347.
Page 35
has only been heightened and we can no longer look at the initial confession
in a vacuum.
67. Rather, the present case is essentially one where two accused misused
societal trust to hold as captive two innocent school-going children, one of
whom was brutally raped and sodomised, and thereupon administered poison
and finally, drowned by throwing them into a canal. It was not in the spur of the
moment or a crime of passion; but craftily planned, meticulously executed and
with multiple opportunities to cease and desist. We are of the view that the
present offence(s) of the Petitioner are so grave as to shock the conscience of
this Court and of society and would without doubt amount to rarest of the rare.
68. Hence, we find that there exist no grounds to review our judgment
upholding conviction and death penalty. The review petitions are accordingly
dismissed.
…………………………….. J.
 (ROHINTON FALI NARIMAN)
………..…………………...J.
(SURYA KANT)
NEW DELHI
DATED : 07.11.2019
Page 36
REPORTABLE
IN THE SUPREME COURT OF INDIA
INHERENT JURISDICTION
REVIEW PETITION (CRIMINAL) NOS. 446-447 OF 2019
IN
CRIMINAL APPEAL NOS. 1174-1175 OF 2019
MANOHARAN ….. PETITIONER(S)
VERSUS
STATE BY INSPECTOR OF POLICE,
VARIETY HALL POLICE STATION,
COIMBATORE. ….. RESPONDENT(S)
O R D E R
SANJIV KHANNA, J.
I entirely agree and concur with the reasons given by my
brother Surya Kant, J in dismissing the review petitions upholding the
conviction of Manoharan under Sections 302, 376(2)(f) and (g) and
201 of the Indian Penal Code. On the question of sentence, I do not
see any good ground and reasons to review my observations and
findings in the minority judgment. Accordingly, the review petitions
are dismissed.
......................................J.
(SANJIV KHANNA)
NEW DELHI;
NOVEMBER 07, 2019.
Page 37

The release under probation does not entitle an employee to claim a right to continue in service.=In the present case the accused obtained a job on the basis of forged documents. Even if he was to be given benefit of the Act, then also he could not retain his job because the job was obtained on the basis of forged documents. We are constrained to observe that the High Court passed the order in a mechanical and pedantic manner without considering what are the legal issues involved.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 410 OF 2011
STATE OF MADHYA PRADESH    …APPELLANT(S)
Versus
MAN SINGH        …RESPONDENT(S)
J U D G M E N T
Deepak Gupta, J.
Whether a Judge of the High Court can exercise powers
under Section 482 of the Code of Criminal Procedure, 1973 (for
short ‘CrPC’) to alter the sentence which has been passed by the
High Court itself is the issue involved in this appeal.
2. The   respondent,   Man   Singh   was   prosecuted   for   having
committed offences punishable under Sections 468, 471 and 419
of   Indian   Penal   Code,   1860   (for   short   ‘IPC’).     The   allegation
1
against him was that he had used a transfer certificate of one
Kalu Singh and forged the certificate to show that it bore his
name and date of birth.  Using this certificate, he had procured
appointment to the post of Buffalo Attendant in the Veterinary
Department.     The   trial   court   convicted   the   accused   for   the
offences punishable under Sections 468, 471 and 419 IPC.  On
the issue of sentence, it was specifically urged before the trial
court that benefit of Probation of Offenders Act, 1958 (for short
‘the Act’) may be given to the respondent, Man Singh.  The trial
court came to the conclusion that the accused had got service on
the basis of forged documents depriving a deserving unemployed
person of getting such employment and, therefore, according to
the   trial   court,   this   is   not   a   fit   case   to   grant   probation.
Accordingly, the trial court imposed punishment under various
provisions of IPC for different offences but essentially the accused
was to undergo rigorous imprisonment for one year and was to
pay a total fine of Rs.2000/­.
3. The accused­respondent, Man Singh filed an appeal.   The
Sessions Judge dismissed the appeal.  On the issue of sentence
he found that the accused had been dealt with leniently and
2
refused to interfere with the sentence.   A criminal revision was
filed in the High Court.  The High Court affirmed the conviction
but reduced the substantive sentence from one year to the period
already undergone and enhanced the fine to Rs.10,000/­.
4. The accused­respondent, Man Singh deposited the fine and
then filed a petition under Section 482 of CrPC praying that the
fine had been deposited and since he is in Government job, he
may be granted benefit of the Act.  The learned Judge, without
giving any other reasons, directed as follows:­
“After   having   heard   learned   counsel   for   the   parties,
prayer   is   allowed   and   the   benefit   of   Probation   of
Offenders   Act   is   extended   to   the   petitioner   for   the
purpose that the sentence, which has already undergone
would not affect service career of the petitioner.
With the aforesaid observations petition stands disposed
of C.C. today.”
This order is challenged before us.  At the outset, we note that
the manner in which the learned Judge entertained the petition
under Section 482 CrPC is highly improper and uncalled for.
There is no power of review granted to the Courts under CrPC.
As soon as the High Court had disposed of the original revision
petition,   upheld   the   conviction,   reduced   the   sentence   to   the
3
period   already   undergone   and   enhanced   the   fine,   it   became
functus officio  and, as such, it could not have entertained the
petition under Section 482 CrPC for altering the sentence.
5. It   is   well   settled   law   that   the   High   Court   has   no
jurisdiction to review its order either under Section 362 or under
Section 482 of CrPC1
.   The inherent power under Section 482
CrPC cannot be used by the High Court to reopen or alter an
order disposing of a petition decided on merits2
.  After disposing
of a case on merits, the Court becomes functus officio and Section
362 CrPC expressly bars review and specifically provides that no
Court after it has signed its judgment shall alter or review the
same except to correct a clerical or arithmetical error3
. Recall of
judgment   would   amount   to   alteration   or   review   of   judgment
which is not permissible under Section 362 CrPC.  It cannot be
validated by the High Court invoking its inherent powers4

6. We have, therefore, no doubt in our mind that the High
Court had no power to entertain the petition under Section 482
CrPC and alter the sentence imposed by it.  We may also add that
1 State of Kerala v. M.M. Manikantan Nair, (2001) 4 SCC 752
2 State Rep. by D.S.P., S.B.C.I.D., Chennai v. K.V. Rajendran & Ors., 2009 CriLJ 355 SC
3 Hari Singh Mann v. Harbhajan Singh Bajwa & Ors. (2001) 1 SCC 169
4 Sooraj Devi v. Pyare Lal & Anr., AIR 1981 SC 736
4
the manner in which the probation has been granted is not at all
legal.  The trial court had given reasons for not giving benefit of
probation.     When   the   High   Court   was   deciding   the   revision
petition against the order of conviction, it could have, after calling
for a report of the Probation Officer in terms of Section 4 of the
Act,  granted  probation.    Even   in  such  a  case it  had  to  give
reasons   why   it   disagreed   with   the   trial   court   and   the   first
appellate court on the issue of sentence.  The High Court, in fact,
reduced the sentence to the period already undergone meaning
thereby   that   the   conviction   was   upheld   and   sentence   was
imposed.  After sentence had been imposed and served and fine
paid, there was no question of granting probation.
7. Another error is that the order quoted hereinabove has been
passed in violation of the provisions of Section 4 of the Act which
mandates that before releasing any offender on probation of good
conduct,   the   Court   must   obtain   a   report   from   the   Probation
Officer and can then order his release on his entering bonds with
or without sureties, to appear and receive sentence when called
upon during such period, not exceeding three years, or as the
Court may direct, and in the meantime to keep peace and good
5
behaviour.   The proviso to sub­section (1) of Section 4 clearly
provides that Court cannot order release of such an offender
unless it is satisfied that the offender or his surety has a fixed
place of abode or regular occupation in the place over which the
Court can exercise jurisdiction.  Sub­section (2) lays down that
before making any order under sub­section (1), the Court shall
take into consideration the report of the Probation Officer.  This
Court in a number of judgments has held that before passing an
order of probation, it is essential to obtain the report of the
Probation Officer concerned.   Reference in this behalf may be
made to M.C.D. v. State of Delhi & Anr.5
 
8. In the present case, on 03.01.2011, the counsel for the
accused­respondent sought an adjournment on the ground that
the accused proposes to file a special leave petition (SLP) against
the   order   passed   in   criminal   revision   petition   upholding   his
conviction.   That SLP was filed but dismissed on 28.01.2011.
Once that SLP has been dismissed, we cannot grant any relief to
the accused­respondent.
5 AIR 2005 SC 2658
6
9. We are also constrained to observe that the High Court in
its   order   directed   that   the   sentence   which   the   accused   has
already undergone, would not affect his service career.  We fail to
understand  under what  authority the  High  Court could have
passed such an order.   Even in a case where the High Court
grants benefit of probation to the accused, the Court has no
jurisdiction to pass an order that the employee be retained in
service.     This   Court   in  State   Bank   of   India   &   Ors.  v.  P.
Soupramaniane6
 clearly held that grant of benefit of probation
under the Act does not have bearing so far as the service of such
employee   is   concerned.     This   Court   held   that   the   employee
cannot claim a right to continue in service on the ground that he
was released on probation.  It was observed:
The   release   under   probation   does   not   entitle   an
employee to claim a right to continue in service.  In fact
the employer is under an obligation to discontinue the
services of an employee convicted of an offence involving
moral turpitude.   The observations made by a criminal
court are not binding on the employer who has the liberty
of dealing with his employees suitably.” 
10. In the present case the accused obtained a job on the basis
of forged documents.  Even if he was to be given benefit of the
Act, then also he could not retain his job because the job was
6 AIR 2019 SC 2187
7
obtained on the basis of forged documents.  We are constrained
to observe that the High Court passed the order in a mechanical
and   pedantic   manner   without   considering   what   are   the   legal
issues involved.  
11. In view of the above discussion, the appeal is allowed and
the order of the High Court is set aside.  Pending application(s), if
any, stand(s) disposed of. 
…………………………….J.
(Deepak Gupta)
……………………………..J.
(Aniruddha Bose)
New Delhi
November 04, 2019
8

whether the finding that the financial creditor was discriminated against, leading the NCLAT to modify the adjudicating authority’s directions, and consequently imposing greater financial burdens on the resolution applicant, is justified in the circumstances. - The CIRP was initiated on 25th January, 2017 against the Corporate Debtor under Section 10 of the IBC. The appellant was the resolution applicant of the Corporate Debtor, whose liquidation value was ascertained as 36 crores. Against the said amount, the ₹ appellant offered 54 crores to revive the Corporate Debtor in ₹ terms of the resolution plan. The resolution plan was then revised and the revised resolution plan submitted by the appellant was approved by the adjudicating authority, i.e., the Principal Bench of the NCLT. This resolution plan was challenged before the NCLAT by the second respondent in the present appeal, Hero Fincorp Ltd. as being discriminatory. Discrimination was alleged on the ground that the secured financial creditors were provided with a higher percentage of their claim amounts; however, Hero had been allowed a lesser percentage of its admitted claim. Hero, who had dissented with the resolution plan, had been provided with 32.34% of its admitted claim, whereas other financial creditors had been provided with 45% of their admitted claims. = Regulation 38 now reads as follows:"38. Mandatory contents of the resolution plan.— (1) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors. (1­A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor.”= In the present case, it is noticeable that no doubt, Hero was provided with 32.34% of its admitted claim as it has dissented with the plan. On the other hand, Tata Capital Financial Services Ltd. was provided with 75.63% of its admitted claim; other financial creditors (Indian Overseas Bank, Bank of Baroda and Punjab National Bank) were provided with 45% of their admitted claims. Given that the resolution process began well before the amended regulation came into force (in fact, January, 2017) and the resolution plan was prepared and approved before that event, the wide observations of the NCLAT, requiring the appellant to match the pay­out (offered to other financial creditors) to Hero, was not justified. The court notices that the liquidation value of the corporate debtor was ascertained at 36 crores. Against the ₹ said amount, the appellant offered 54 crores. The plan was ₹ approved and, except the objections of the dissenting creditor (i.e Hero), the plan has attained finality. Having regard to these factors and circumstances, it is held that the NCLAT’s order and directions were not justified. They are hereby set aside; the order of the NCLT is hereby restored.

1
REPORTABLE
  IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7940 OF 2019
RAHUL JAIN ...APPELLANT
VERSUS
RAVE SCANS PVT. LTD. & ORS.             ...RESPONDENTS
                                                 
       J U D G M E N T
S. RAVINDRA BHAT, J.
1. The   resolution   applicant   (hereafter   “the   appellant”)   is
aggrieved   by   the   decision   of   the   National   Company   Law
Appellate Board (hereafter “NCLAT”) in regard to its directions
modifying   a   resolution   plan   accepted   by   the   adjudicating
authority   (i.e.   National   Company   Law   Tribunal,   hereafter
“NCLT”   or   “the   adjudicating   authority”).   The   Corporate
Insolvency Resolution Process (CIRP) was initiated against M/s.
Rave Scans Private Limited (hereafter the “Corporate Debtor”)
2
under Section 10 of the Insolvency and Bankruptcy Code, 2016
("IBC"   or   “the   Code”   for   short).   The   revised   resolution   plan
submitted by the appellant was approved by the NCLT on 17th
October, 2018. The second respondent, M/s Hero Fincorp Ltd.
(hereafter the “Financial Creditor” or “Hero”) appealed against
the   NCLT’s   order   on   grounds   of   discrimination   between
financial creditors, which resulted in the NCLAT modifying the
NCLT’s   final   order.   The   question   urged   by   the   appellant   is
whether   the   finding   that   the   financial   creditor   was
discriminated   against,   leading   the   NCLAT   to   modify   the
adjudicating authority’s directions, and consequently imposing
greater   financial   burdens   on   the   resolution   applicant,   is
justified in the circumstances.
2. The facts of the case are as follows. The CIRP was initiated
on  25th  January, 2017  against   the  Corporate  Debtor  under
Section   10   of   the   IBC.   The   appellant   was   the   resolution
applicant of the Corporate Debtor, whose liquidation value was
ascertained   as   36   crores.   Against   the   said   amount,   the ₹
appellant offered  54 crores to revive the Corporate Debtor in ₹
terms  of  the  resolution   plan.   The  resolution  plan   was  then
revised   and   the   revised   resolution   plan   submitted   by   the
appellant was approved by the adjudicating authority, i.e., the
Principal   Bench   of   the   NCLT.   This   resolution   plan   was
challenged before the NCLAT by the second respondent in the
present   appeal,   Hero   Fincorp   Ltd.   as   being   discriminatory.
Discrimination   was   alleged   on   the   ground   that   the   secured
3
financial creditors were provided with a higher percentage of
their claim amounts; however, Hero had been allowed a lesser
percentage of its admitted claim. Hero, who had dissented with
the   resolution   plan,   had   been   provided   with   32.34%   of   its
admitted   claim,   whereas   other   financial   creditors   had   been
provided   with   45%   of   their   admitted   claims.   The   remarks
column in the resolution plan showed that the plan was based
on ‘Maintained liquidation value (LV) under Regulation 38 of
the   Insolvency   and   Bankruptcy   Board   of   India   (Insolvency
Resolution Process for Corporate Persons) Regulations, 2016.
The reference herein was to the unamended Regulation  38,
pertaining to the mandatory contents of a resolution plan.
3. The NCLAT in its impugned order which set aside the
NCLT’s directions and required the appellant to increase the
liquidation value of the offer to Hero, relied on Central Bank of
India v. Resolution Professional of the Sirpur Paper Mills Ltd. &
Ors.,  Company Appeal (AT) (Insolvency) No. 526 of 2018 and
Binani   Industries   Ltd.   v.   Bank   of   Baroda   &   Anr.,  Company
Appeal   (AT)   (Insolvency)   No.   82   of   2018,   and   noticed   that
Regulation   38   had   been   held   to   be   discriminatory   in   these
cases. Accordingly, an amendment was made on 5th  October,
2018, and the provision in Regulation 38(1)(c) on liquidation
value payable to financial creditors was deleted. The amended
regulation was also considered by the Supreme Court in Swiss
Ribbons Pvt. Ltd. & Anr. v. Union of India, 2019 SCC Online SC
73, which noticed that the amendment strengthens the rights of
4
operational creditors by statutorily incorporating the principle
of fair and equitable dealing of operational creditors’ rights,
together with priority in payment over financial creditors. Swiss
Ribbons  (supra) also observed that the NCLAT, while looking
into the viability and feasibility of resolution plans approved by
the committee of creditors, has always gone into the question of
whether   operational   creditors   are   given   roughly   the   same
treatment as financial creditors, and if not, such plans have
been   rejected   or   modified   so   that   the   rights   of   operational
creditors are safeguarded.
4. The   order   approving   the   resolution   plan,   which   was
impugned before the NCLAT was passed by the adjudicating
authority on 17th  October, 2018. The NCLAT held that this
order failed to notice that no resolution plan could be approved
discriminating   against   the   dissenting   financial   creditor,   in
terms of the amended Regulation 38. The NCLAT further held
that the adjudicating authority failed to notice that the NCLAT
had   declared   the   unamended   Regulation   38(1)(c),   which
stipulated   the   liquidation   value   for   dissenting   financial
creditors as illegal. It was held that the resolution plan in this
instance, which had been approved by the impugned order of
the NCLT, did not conform to the test in Section 30(2)(e) of the
IBC, and was discriminatory against similarly situated ‘Secured
Creditors’.
5
5. The NCLAT further observed that under Section 30(2)(b)
(ii), such differential treatment must only be made in such a
manner as may be specified by the Board, which shall not be
less   than   the   amount   to   be   paid   to   these   creditors   in
accordance with Section 53(1) in the event of liquidation of the
corporate debtor. The NCLAT held that the amended Regulation
38 would still be applicable, and the Corporate Debtor could
not take advantage of the repealed provision. In light of this
reasoning,   the   NCLAT   held   the   resolution   plan   to   be
discriminatory and violative of Section 30(2)(e) of the IBC, and
directed that the successful resolution applicant remove the
discrimination by providing similar treatment to the appellant
before   the   NCLAT,   as   other   similarly   situated   financial
creditors.
6. It was observed that the successful resolution applicant
had noticed that Regulation 38 was amended on 5th  October,
2018; the applicant, however, failed to bring this fact to the
notice of the adjudicating authority when the matter was taken
up for approval, and also did not amend the resolution plan to
make it in accordance with the amended Regulation 38. The
grounds   for   discrimination   alleged   by   the   Corporate   Debtor
were that firstly, Regulation 37(1) requires a resolution plan to
offer ‘maximization of value of its assets’, which is fulfilled by
offering  54 crores against the liquidation value of  36 crores ₹ ₹
only; secondly, Regulation 38(1)(c) mandatorily provided for the
maintenance of the   liquidation value of dissenting financial
6
creditors   before   the   amendment   dated   5th  October   2018;
thirdly, the committee of creditors, in its meeting, directed the
resolution professional to seek a legal opinion on differential
value of financial creditors. The committee of creditors accepted
the opinion obtained by the resolution professional stating that
liquidation value has to be maintained for dissenting creditors.
Accordingly, in the next revised resolution  plans dated 12th
January, 2018, 16th February, 2018, and 5th October, 2018, the
resolution applicant offered minimum liquidation value (not a
percentage of the claim). 
7. It   was   urged   by   Mr.   Ramji   Srinivasan,   learned   senior
counsel, that PSU banks had a higher stake in the total claim
value and liquidated value of assets, having security of fixed
assets, plant and machinery, debtors, inventory and personal
guarantee, etc. On the other hand, NBFCs only had security
against specific plant & machinery and the personal guarantee
of the promoters. It was also argued that the resolution plan
has   been   fully   implemented   and   financial   creditors   (except
Hero) have released security to the Corporate Debtor. Further,
the senior counsel appearing on behalf of the Corporate Debtor
argued that under Section 30(2)(b)(ii), the resolution plan allows
separate treatment of financial creditors who do not vote in
favour of the resolution plan.
8. Mr.   Amit   Sibal,   learned   senior   counsel   for   the   second
respondent­Hero,   urged   that   this   court   should   not   interfere
7
with   the   impugned   order.   He   relied   on   the   observations   in
Swiss Ribbons and Section 30 of the IBC, to say that creditors
falling within one description or class cannot be discriminated
against. It was pointed out that the PSU banks’ dues were given
primacy, inasmuch as all of them were given a settlement of
45% of their admitted claims; however, the dissenting Financial
Creditor (Hero) was provided with 32.34% of its admitted claim
which is plainly discriminatory and contrary to the letter and
spirit of the IBC.
9. Mr. Sibal relied on the observations of this court in Swiss
Ribbons (supra) that:
“72. The aforesaid Regulation further strengthens the
rights   of   operational   creditors   by   statutorily
incorporating   the   principle   of   fair   and   equitable
dealing of operational creditors' rights, together with
priority in payment over financial creditors."
10. Section 30, which is relied upon by the respondents, and
which was interpreted by the NCLAT, reads as follows:
“30.   (1)   A   resolution   applicant   may   submit   a
resolution   plan   to   the   resolution   professional
prepared   on   the   basis   of   the   information
memorandum.
(2) The resolution professional shall examine each
resolution plan received by him to confirm that each
resolution plan—
(a) provides for the payment of insolvency resolution
process costs in a manner specified by the Board in
priority   to   the   repayment   of   other   debts   of   the
corporate debtor;
8
(b)   provides   for   the   repayment   of   the   debts   of
operational   creditors   in   such   manner   as   may   be
specified by the Board which shall not be less than
the amount to be paid to the operational creditors in
the   event   of   a   liquidation   of   the   corporate   debtor
under section 53; (c) provides for the management of
the affairs of the Corporate debtor after approval of
the   resolution   plan;   (d)   the   implementation   and
supervision of the resolution plan;
(e) does not contravene any of the provisions of the
law for the time being in force;
(f) conforms to such other requirements as may be
specified by the Board.
(3) The resolution professional shall present to the
committee of creditors for its approval such resolution
plans which confirm the conditions referred to in subsection (2).
(4)   The   committee   of   creditors   may   approve   a
resolution plan by a vote of not less than seventy­five
per cent. of voting share of the financial creditors.
(5) The resolution applicant may attend the meeting
of the committee of creditors in which the resolution
plan of the applicant is considered:
Provided that the resolution applicant shall not have
a right to vote at the meeting of the committee of
creditors unless such resolution applicant is also a
financial creditor.
(6)   The   resolution   professional   shall   submit   the
resolution   plan   as   approved   by   the   committee   of
creditors to the Adjudicating Authority.”
11. Section   30   lays   out   the   duties   of   the   resolution
professional and the various steps that she or he has to take,
as well as the considerations that are to weigh, in examining a
9
resolution   plan.   The   principle   of   fairness   engrafted   in   the
provision   is   that   the   plan   should   make   a   provision   for
repayment of debts of operational creditors having regard to the
value, which shall not be less than what is prescribed by the
Board (i.e. the Insolvency Board), repayable in  the event  of
liquidation, spelt out in Section 53. Section 30(3) requires the
resolution professional to present the resolution plan to the
committee   of   creditors   and   Section   30(4)   stipulates   that
approval shall be by a vote not less than 75% of the voting
share of the financial creditors. Regulation 38, as it stood before
the amendment and its substitution, read as follows:
"38. Mandatory contents of the resolution plan.—
(1) A resolution plan shall identify specific sources
of funds that will be used to pay the­
 (a) insolvency resolution process costs and provide
that the [insolvency resolution process costs, to the
extent unpaid, will be paid] in priority to any other
creditor;
  (b) liquidation value  due to operational creditors
and   provide   for   such   payment   in   priority   to   any
financial creditor which shall in any event be made
before the expiry of thirty days after the approval of
a resolution plan by the Adjudicating Authority; and
(c)   liquidation   value   due   to   dissenting   financial
creditors and provide that such payment is made
before   any   recoveries   are   made   by   the   financial
creditors   who   voted   in   favour   of   the   resolution
plan."
12. After its amendment, Regulation 38 now reads as follows:
10
"38. Mandatory contents of the resolution plan.—
(1)   The   amount   due   to   the   operational   creditors
under a  resolution  plan  shall be  given  priority in
payment over financial creditors.
 (1­A) A resolution plan shall include a statement as
to   how   it   has   dealt   with   the   interests   of   all
stakeholders,   including   financial   creditors   and
operational creditors, of the corporate debtor.”
13. In the present case, it is noticeable that no doubt, Hero
was   provided   with   32.34%   of   its   admitted   claim   as   it   has
dissented   with   the   plan.   On   the   other   hand,   Tata   Capital
Financial   Services   Ltd.   was   provided   with   75.63%   of   its
admitted   claim;   other   financial   creditors   (Indian   Overseas
Bank,   Bank   of   Baroda   and   Punjab   National   Bank)   were
provided with 45% of their admitted claims. Given that the
resolution process began well before the amended regulation
came into force (in fact, January, 2017) and the resolution plan
was   prepared   and   approved   before   that   event,   the   wide
observations of the NCLAT, requiring the appellant to match the
pay­out (offered to other financial creditors) to Hero, was not
justified. The court notices that the  liquidation value of the
corporate debtor was ascertained at   36 crores. Against the ₹
said amount, the appellant offered  54 crores. The plan was ₹
approved and, except the objections of the dissenting creditor
(i.e Hero), the plan has attained finality. Having regard to these
factors and circumstances, it is held that the NCLAT’s order
and directions were not justified. They are hereby set aside; the
order of the NCLT is hereby restored.
11
14. In view of the foregoing discussion, the appeal succeeds
and is allowed. In the circumstances, there shall be no order on
costs.
........................................J.
                                          [ARUN MISHRA]
........................................J.
                                          [S. RAVINDRA BHAT]
New Delhi,
November 8, 2019.

As the respondents are the holders of civil posts entitled to civil pension and are not the Ex-servicemen to which benefit of OROP was conferred = undisputed fact that the respondents have retired from service corresponding to the age of the retirement of the Department of Posts i.e. 58 years or 60 years. It is not disputed that retirement age of a regular Commissioned Officer of the rank of Lt. Colonel is 54 years. Such fact only shows that the respondents are the holders of civil posts entitled to civil pension and are not the Ex-servicemen to which benefit of OROP was conferred.We, thus, hold that the persons such as the respondent and the intervenors on deputation to APS from Department of Posts are not entitled to the benefit of OROP. Therefore, the order of the Tribunal is not sustainable in law and hence set aside. The appeal is allowed.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 8139 OF 2019
(DIARY NO. 38432 OF 2017)
UNION OF INDIA & ORS. .....APPELLANT(S)
VERSUS
LT. COL. OM DUTT SHARMA (RETD.) DEAD
THROUGH LRS & ORS. .....RESPONDENT(S)
J U D G M E N T
HEMANT GUPTA, J.
1) The challenge in the present appeal is to an order passed by the
Armed Forces Tribunal, Regional Bench, Jabalpur1
 on 9th February,
2017 whereby, an Original Application filed by the respondent - Lt.
Col. Om Dutt Sharma was allowed holding that the respondent is
entitled to the benefit of One Rank One Pension2
.
2) The respondent died during pendency of the appeal. His legal
heirs have been brought on record, whereas respondent Nos. 3 to
86 have been impleaded as intervenors vide order dated 14th May,
1 for short, ‘Tribunal’
2 for short, ‘OROP’
1
2018 in view of the fact that the said intervenors claim the same
benefit as claimed and granted to the deceased respondent.
Since the issue is purely legal and the fact that large numbers of
personnel of Army Postal Service3
 are involved, we have heard
learned counsel for the parties on merits in respect of their
entitlement to OROP in terms of Government of India’s Circular
dated 7th November, 2015.
3) The respondents were working on the non-gazetted posts in the
Department of Posts under the Government of India and were
taken on deputation in the APS from time to time. The deceased
respondent was taken on deputation in the year 1962. He
relinquished his Temporary Commission in the Army as Lt. Colonel
on 31st December, 1984 and retired on 14th May, 1985 after
repatriation to his parent department i.e. Department of Posts.
The stand of the intervenors is that they joined APS on deputation
either as Junior Commissioned Officer (JCO) or the Warrant Officer
(WO) and were not repatriated to their parent department. All the
intervenors retired from the APS on attaining the age of
superannuation, therefore, they claim benefit of OROP.
4) Learned counsel for the appellants refers to the different Army
Instructions issued from time to time to contend that for service
pension, officers of APS on deputation from the Department of
Posts are governed by civil pension rules, whereas in respect of
3 for short, ‘APS’
2
disability or special family pension, the option is available to be
governed by military or civil rules. It is also contended that age of
superannuation of a Lt. Colonel in the Army is 54 years, whereas a
person holding civil post under the Union continues to discharge
the duties up to the age of superannuation i.e. up to the age of 58
or 60 Years. It is also contended that the members of APS on
deputation from the Department of Posts serve till the age of
superannuation meant for civil employees of the Union. The
personnel of the Department of Posts are not granted pension by
the Ministry of Defence but are in receipt of pension from the
Department of Posts as the members of the Union holding civil
posts.
5) The relevant extracts of the different Army Instructions issued from
time to time read as under:
“ Army Instructions Nos. 107 of 19534
1. Temporary Commissions of a period of one year and for
so long thereafter as their services may be required will be
granted in the Army Postal Service or the Regular Army on
the terms and conditions laid down in the Annexure to this
AI.
2. Eligibility:- JCOs of the APS and such WOs as have
passed the IPOs/IRMs examination of the P and T
Department.
3. Length of Commission:- The Commission will be
granted for a period of one year and for so long thereafter
as their services may be required.
xx xx xx
4 For short “Army Instructions 1953”
3
10. Advance of Pay:- As admissible under the rules of the
P and T Department.
Annexure to Army Instructions No. 107 of 1953
1. xx xx xx
2. Rank, seniority and Promotion:-
(a) JCOs/WOs will be granted Temporary Commission in
the rank of 2/Lt except that JCOs/WOs I having 8 years
service as JCO/WO I and in the ranks would be
commissioned as Lt and granted 2 years ante date for the
purpose of pay only.
(b) Officers will be governed by the Acting Promotion
Rules in force from time to time. All gazetted service will
count as Commissioned service for the purpose of acting
promotions.
xx xx xx
6. (a) Disability and family pensions:-
(i) Officers governed by chapter XXXVIII C.S. R. may elect
to be governed either by military or civil rules. When
electing military rules the officers will be granted disability
element of pension like regular I.C. OS.
(ii) Those governed by Central Civil Services
(Extraordinary Pension) Rules will be eligible for
disability/family pensions under military rules. The
disability element of pension will be as for regular I.C. Os.
 Army Instructions No. 295 of 19595
1. In supersession of the orders contained in A.I. 107/53,
insofar as they relate to the grant of commissions to
gazetted officers of the Post and Telegraphs Department,
temporary commission in the Army Postal Service will be
granted in future on the terms and conditions laid down in
annexure ‘A’ to this Army Instruction.
2. Eligibility:- Gazetted officers (substantive or officiating)
5 For short “Army Instructions 1959”
4
of the Posts and Telegraphs Department, preferably with
previous service in the Army, Navy or Air Force, will be
eligible.
3. Length of Commission:- The Commission will be
granted for a period of one year and for so long thereafter
as their services may be required but not exceeding the
age of compulsory retirement in the Army. The officers
will, however, normally be retained in the Army Postal
Service for minimum period of four years.
xx xx xx
12. Option – All officers of the Posts and Telegraph
Department at present serving in the Army Postal Service
will be allowed to opt for the terms and conditions
contained in Annexure ‘A’ to this Army Instructions from
the date of its issue provided that they satisfy the
conditions laid down therein. On exercising such option,
they will be regarded as newly commissioned for purposes
of the option to draw civil or military rates of pay under
paragraph 3(b) of annexure ‘A’. The existing orders will
continue to apply to other serving officers.
Annexure ‘A’ to Army Instructions No. 295 of 1959
1. xx xx xx
2. Rank, Promotion and seniority-
(a) On commissioning in the Army Postal Service, officers
will be ranked as follows:
Class II Officers with less than 2 years
gazette service
2
nd
Lieutenant
Class II/Class I officers with over 2 years
but not over 4 years gazetted service
Lieutenant
Class II officers with over 5 years but not
over 8 years gazetted service and class I
officers with over 3 years but not over 5
years gazetted service
Captain
Class I officers with over 5 years
but not over 12 years gazetted service
Major
Class I (Senior scale) officers with over 12
years gazetted service
Lieutenant
Colonel
xx xx xx
The Director General, Post and Telegraphs, may, however,
5
recommend variations in ranking when it is necessary due
to paucity of suitable volunteers.
(e) An officer serving in the rank of Major, who is
promoted to the grade of Director, Postal Service, in his
parent department, will be reverted to civil employment.
Such an officer may however be retained in the Army
Postal Service for a period not exceeding four months at
the discretion of the Quartermaster General.
3. Pay and Allowances
(a) xx xx xx
(b) An officer will however have an option at the time of
commissioning and a further option on each occasion of
promotion in Army rank to draw either military pay and
allowances or civil pay plus a deputation allowance as
under:-
An officer below the grade of Director Postal Services –
20%
An officer of the grade of Director Postal Services and
above – 12½%
The term ‘civil pay’ will take into account increments of
civil pay, as they become due and the operations of the
‘Next Below Rule’ affecting officiating promotions under
the civil rules applicable to the officers’ permanent cadre.
(c) Pay and allowances during the joining period prior to
being commissioned as well as during transit on reversion
will be on the Civil rates only, and no deputation
allowance will be allowed in addition.
xx xx xx
6. Pension
(a) For service pension, officers will be governed by civil
rules.
(b) For disability and special family pension, officers will
be permitted to elect to be governed by either military or
civil rules. The election may be made by an officer at any
time during service with the Army or after it, and once
made will be final. When an officer dies without making
6
the election, his family will be eligible to receive awards
under the civil or the military rules whichever was more
favourable. Those who elect military rules for disability
pension will be entitled to only disability element of
disability pension as for regular commissioned officers in
addition to civil pay and allowances or service pension as
the case may be.
xx xx xx
9. Special Provisions Applicable to Officers Electing Civil
Rates of Pay –
(a) In regard to other conditions service including
dearness and compensatory allowances and other
concessions, officers on civil rates of pay will be governed
by the rules applicable to them in their civil appointments
except to the extent indicated on the succeeding subparagraphs.
 Army Instructions No. 29 of 19856
In supersession of the orders contained in A.I. 107/53, and
AI 295/59, terms and conditions laid down in annexure ‘A’
to this Army Instructions will apply to the Temporary
Commissions granted in the Army Postal Service of
Regular Army.
Annexure ‘A’
1. xx xx xx
2. Rank, Promotion and seniority –
(a) In the case of JCOs/WOs of APS – JCOs/WOs will be
granted temporary commission in the rank of 2 Lt except
that JCOs/WOs having 8 years service as JCO/WO and in
the ranks would be commissioned as Lt and granted 2
years ante date for the purpose of pay only.
(b) In the case of gazetted officers of the Department of
Posts – On commissioning in the Army Postal Service,
Officers of the Department of Posts will be ranked as
follows:-
PSS/PMS Group ‘B’ Officers - Lt/Capt
6 For short “Army Instructions 1985”
7
IPS Group ‘A’ Officers – Junior Scale - Capt
IPS Group ‘A’ Officers – Senior Scale - Major
IPS Group ‘A’ Officers with over ten years - Lt. Col.
Service or Director Postal Services
Director Postal Services drawing base pay
of
- Col.
Rs.1800/- or
more
Postmaster General Level II - Brig
Postmaster General Level I - Major Gen
The Director General, Postal Services, may, however,
recommend variation in ranking when it is necessary due
to paucity of suitable volunteers.
3. (a) xx xx xx
(b) An officer will however have an option at the time of
commissioning and a further option on each occasion of
promotion in Army rank to draw either military pay and
allowances or civil pay plus a deputation allowance as
under:
An officer below the grade of Director Postal
Services
- 20%
An officer of the grade of Director - 12½%
Postal Services and above
The term ‘civil pay’ will take into account increments of
civil pay, as they become due and the operations of the
‘Next Below Rule’ affecting officiating promotions under
the civil rules applicable to the officers’ permanent cadre.
(c) Pay and allowances of officers joining from the
Department of Posts during the period prior to being
commissioned as well as transit on reversion will be on the
civil rates only and no deputation allowance will be
allowed in addition.
4. xx xx xx
5. xx xx xx
6. Pension
(a) For service pension, officers will be governed by civil
rules.
(b) For disability and family pension, the officer or, when
the officer dies in service, his family will be eligible to
receive awards under AI 64/76 as amended from time to
time.
8
7. xx xx xx
8. xx xx xx
9. Relinquishment of Commission and repatriation to the
Department of Posts
(1) An officer shall relinquish his temporary commission in
Army Postal Service and be repatriated to the Department
of Posts or proceed on compulsory retirement on
superannuation by order of the Central Government or the
authority specified in sub-para (2) with effect from the
afternoon of the date specified in the orders.
(2) The authority specified in Sub Para (1) shall be the
Additional Director General Army Postal Service.
(3) Approval of the Central Government will be obtained
by the Additional Director General Army Postal Services
prior to the issue of orders in all cases except the
following:-
(a) Where an officer has completed the minimum period
of engagement as specified in Para 3 of AI 29/85 and
seeks repatriation to the Department of Posts.
(b) Where the service of the officer is recalled by the
Department of Posts.
(c) Where the officer has completed his period of
engagement and has outlived his utility to the APS and
(d) Where an officer has attained the age of compulsory
retirement in the Army Postal Service and instead of being
repatriated to the Department of Posts seeks retirement
from Army Postal Service.
(4) The consent of the Department of Posts will be
obtained and a minimum not of three months shall be
given to the officer before his relinquishment of
commission and repatriation to the Department of Posts.”
6) Mr. Huzefa Ahmadi, learned senior counsel for the respondents
argued that the respondents are not the Gazetted Officers of the
Department of Posts to whom the Army Instructions 1959 are
9
applicable. In fact, Mr. Ahmadi relies upon Army Instructions 1953
and Army Instructions 1985 to contend that the respondents are
entitled to the benefit of OROP. It is submitted that the argument
of the appellants that the respondents held a lien on equivalent
posts in the Department of Posts when they retired from APS, is not
tenable as the pension of the respondent is higher than their
respective counterparts in the Department of Posts, therefore,
there is no parity with the pension drawn by the respondents with
the person who continue to work in the Department of Posts.
7) It is argued that the pension of the respondent is calculated on the
basis of last pay drawn which includes the components of Military
Pay Scale, Military Service Pay, whereas, the civil posts in the Postal
Department do not have such component of Military Service Pay.
Therefore, their last pay drawn is not comparable to any other civil
pay and also their pension. Their pension has always been equal to
other Army Officers.
8) It is argued that the Instructions to grant OROP on 7th November,
2015 w.e.f. 1st July, 2014 is a beneficial provision for the ‘Exservicemen’. Since the respondents were holding Army rank and
were entitled to the benefits of medical and other benefits at par
with the officers of the Army, therefore, the respondents being Exservicemen are entitled to the benefit of OROP. Learned counsel
for the respondents refers to the Ex-servicemen (Re-employment in
10
Central Civil Services and Posts) Rules, 19797
. In terms of Rule 2(c)
as amended, the Ex-servicemen include the personnel retired from
APS. Learned counsel also refers to Army Instructions 1953 to
contend that the Annexure attached to the said Instructions
permits service pension. Mr. Ahmadi argued that the respondents
were conferred Army rank and carry such rank even after
retirement. It is argued that it cannot be imagined that in the
Department of Posts, a civilian would hold a rank of Lt. Colonel,
therefore, the respondents as Ex-servicemen are entitled to the
benefit of Circular dated 7th November, 2015 granting OROP. It is
also argued that the Circular dated 3rd February, 2016 makes the
policy of OROP applicable to all Commissioned Officers including
honorary Commissioned Officers which would include Temporary
Commissioned Officers such as the respondents. Therefore, the
respondents are covered by the clarification dated 3rd February,
2016.
9) The Ministry of Defence, Department of Ex-Servicemen Welfare on
7
th November, 2015 issued a letter to the Chiefs of Army Staff,
Naval Staff and Air Staff to implement OROP for the Ex-servicemen
w.e.f. 1st July, 2014. Relevant clause reads as under:
“2. It has now been decided to implement ‘One Rank One
Pension’ (OROP) for the Ex-Servicemen with effect from
01.07.2014. OROP implies that uniform pension be paid to
the Defence Forces Personnel retiring in the same rank
with the same length of service, regardless of their date of
retirement, which, implies bridging the gap between the
7 for short, ‘1979 Rules’
11
rates of pension of current and past pensioners at periodic
intervals.”
10) Subsequently, another letter was issued by the Ministry of Defence,
Department of Ex-Servicemen Welfare on 3rd February, 2016
wherein it was decided that the benefit of OROP was being
conferred to Defence Forces Personnel and to all pensioners in the
rank of honorary Commissioned Officers etc. Relevant clause reads
as under:
“4. The provisions of this letter shall be applicable to all
pensioners/family pensioners who had been retired/
discharged/invalidated out from service/died in service or
after retirement in the rank of Commissioned Officers,
honorary Commissioned Officers, JCOs/Ors and NonCombatants (Enrolled) of Army, Navy, Air Force, Defence
Security Corps, Territorial Army & Ex-State Forces and are
in receipt of pension/family pension as on 1.7.2014.
4.1. The provisions of this order, however, do not apply to
UK/HKSRA/KCIO pensioners, Pakistan & Burma Army
pensioners, Reservist pensioners and pensioners in receipt
of Ex-gratia payments.”
11) We have considered the respective arguments of learned counsel
for the parties. The JCOs of Armed Forces and Warrant Officers who
have passed IPO/IRM examination of Posts & Telegraph Department
are eligible for the grant of Commission for a period of one year
and for such period, their service may be required. The
Commission under such instructions was meant for Junior
Commissioned Officers and the Warrant Officers who have passed
examination of the Department of Posts for Commission which is
for a period of one year and as long services are required. Thus,
12
the officials of the Department of Posts continue to have lien over
the posts under the Union.
12) The next Army Instructions 1959 supersede the earlier Army
Instructions in so far as they relate to the grant of the Commission
to the Gazetted Officers of the Posts & Telegraph Department. The
eligibility for grant of Temporary Commission was in respect of the
Gazetted Officers, (substantive or officiating) of the Posts &
Telegraph Department. In terms of Clause 12 of the Army
Instructions 1959, all officers of the Posts & Telegraph Department,
which will include Non-Gazetted Offices, were given an option to
opt for terms and conditions contained in Annexure ‘A’ to these
Instructions. On exercise of such option, they will be regarded as
newly commissioned officers with an option to draw civil or military
rates of pay. In respect of pension, there is no option and that the
officers would be governed by civil rules for service pension.
13) As per Army Instructions 1985, the eligibility for grant of Temporary
Commission in the APS is Gazetted Officers (substantive or
officiating) of the Department of Posts and JCOs of the APS and
such WOs who have earned competitive vacancies in the Rank of
JAOs/IPOs/IRMs in examination of the Department of Posts. Clause
12 of such instructions gives an option to all officers which will
include the Gazetted and Non-Gazetted Officers of the Department
of Posts serving in the APS to opt for the terms and conditions
contained in Annexure ‘A’ to these instructions. On exercise of
13
such instructions, they will be regarded as newly commissioned for
the purpose of option to draw civil or military rates of pay. Such
Annexure ‘A’ to the Instructions again has a clause that the officers
will be governed by civil rules for service pension. There is no
option to opt for military pension.
14) Therefore, we do not find any merit in the argument raised that
Army Instructions only cover the Gazetted Officers. The eligibility
for grant of a Temporary Commission is the Gazetted Officers and
JCOs etc. but clause 12 of Army Instructions 1959 and 1985 cover
all officers of the Department of Posts. It is not the case of the
respondents that their lien in the Department of Posts was ever
terminated.
15) The argument that the respondents were drawing more pension
than their counterparts in the Department of Posts, therefore, they
are entitled to the periodical increase of pension on the parity of
the personnel of the Armed Forces, is not tenable. The respondents
have discharged their duties as per Army Instructions issued from
time to time. If they have drawn higher salaries while working in
the APS than other counterparts in the Department of Posts that
will not make them at par with the members of the Armed Forces.
Their birth mark is with the Department of Posts which mark was
never removed, when they were serving as members of APS. The
Instructions provided for an option on promotion on every rank in
the Army to draw either military pay and allowances or civil pay
14
plus deputation allowances meaning thereby that they continue to
hold their lien on the civil posts in the Department of Posts. Since
they hold a lien in the Department of Posts they could be recalled
by the Department of Posts as well as they could seek reversion to
their parent Department.
16) The respondents were appointed in the Department of Posts and
were sent on deputation to the APS. They hold a lien in the
Department of Posts inasmuch as they can be recalled by the
Department of Posts and that they can seek reversion to the parent
department. Clause 3 (a) of Annexure ‘A’ to Army Instructions
1959 gives an officer an option at the time of commissioning and a
further option on each occasion of promotion in Army rank to draw
either military pay and allowances or civil pay and the deputation
allowance. Sub clause (c) further provides that pay and allowances
during the joining period prior to being commissioned as well as
during transit on reversion will be on the civil rates only, and no
deputation allowance will be allowed. Such Instructions also state
that an officer serving in the rank of Major, who is promoted to the
grade of Director, Postal Service in his parent department will be
reverted to civil employment but he can be retained in the APS for
a period not exceeding four months at the discretion of the
Quartermaster General. In respect of pension, there is a
categorical instruction that the officers would be governed by civil
rules for service pension. An option is available to opt for military
or civil rules in respect of disability or special family pension.
15
17) In the subsequent Instructions 1985, superseding the earlier
Instructions, the members of Department of Posts have an option
at the time of Commission and further option on each occasion of
promotion in Army rank to draw either military pay and allowances
or civil pay plus a deputation allowance. The condition of pay and
allowances of officers joining from the Department of Posts during
the period prior to Commission as well as on transit on reversion
will be on the civil rates and that no deputation allowance will be
allowed remain unchanged. Again, the officers will be governed by
civil rules for service pension, whereas for disability and family
pension, Army Instructions No. 64 of 1976 is applicable.
18) In the first Army Instructions issued in the year 1953, there is no
specific clause pertaining to pension but for disability and family
pension, an option is given to opt for military or civil rules governed
by Chapter XXXVIII of Civil Service Regulations. The service
element of disability is contemplated on service share basis at the
time of eventual retirement from the service. Such Instructions
were superseded in 1959 and it was those Instructions or later
Army Instructions of 1985 which were in force when the
respondents joined APS.
19) Such Instructions clearly stipulate that the pension to the members
of APS will be as per civil rules. Such Instructions also contemplate
that at every stage of promotion in APS, an option is available to
the officer to choose military pay or the civil pay. These conditions
16
show that the members of the APS continue to hold lien in the
Department of Posts though they were conferred ranks in the Army
and were also entitled to certain benefits as the members of the
Armed Forces but being members of the Armed Forces during the
period of their Temporary Commission does not make them a
pensioner of the Armed Forces as contemplated in the Circular
dated 7th November, 2015.
20) The said Circular confers benefit of OROP upon Ex-servicemen,
whereas the subsequent Circular dated 3rd February, 2016 grants
benefit of OROP to all pensioners in the rank of Commissioned
Officers and honorary Commissioned Officers etc. who are in
receipt of pension or family pension as on 1st July, 2014. This
Circular, as explained by Circular dated 7th February 2016 is
applicable only to personnel who are drawing pension from the
Defence Establishments as the said Circular is addressed to the
Chiefs of three armed forces of the country including personnel
from Territorial Army. Such Circular has limited application and is
not applicable to the other civil pensioners of the Union.
Admittedly, none of the respondents are in receipt of the pension
from Defence but were granted pension by the Department of
Posts.
21) We do not find merit in the argument that the benefit of OROP is
not extended to certain category of pensioners as mentioned in
para 4.1 of the Circular dated 7th November 2015 only. Therefore,
17
the pensioners of APS having not been excluded in such Circular,
would be covered by the decision to grant OROP. Such circular
excludes only those pensioners who are in receipt of pension for
the services rendered in the armed forces of the country or the
armed forces prior to the Independence of the Country or the
forces which are getting pension for the reason that they were
members of the State forces at the time of merger of the States
with Indian Union after independence. Such exclusion is of distinct
category who are pensioners of the Army at some stage but have
no relation with the pensioners of defence forces as on 1st July
2014. There was never any condition in any policy decision that the
members of APS will be treated as pensioners of the Armed Forces.
22) The reliance of Mr. Ahmadi on 1979 Rules wherein the Exservicemen have been defined to include the members of APS, is
again not tenable. Such Rules are applicable for the purpose of
recruitment to certain posts in the Central Civil Services. The wide
definition and purport of the Rules is to provide reservation for Exservicemen for the purpose of employment in the civil
administration. Such provision is not of general application so as to
extend the meaning assigned in a particular rule to another set of
Instructions. Similarly, the Circular dated 3rd February, 2016 is
applicable to the defence pensioners. The Circulars dated 7th
November, 2015 and 3rd February, 2016 were addressed to the
Chiefs of the Armed Forces in respect of the pensioners of the
forces which is evident from clause 4 of the Circular dated 3rd
18
February, 2016 when, the benefit of OROP is conferred on all
pensioners including the Commissioned Officers.
23) The respondents were holders of Temporary Commission only to facilitate the grant of rank and other benefits but they cannot be
called as Commissioned Officers. Even the argument that the
members of Territorial Army have been granted benefit of OROP is
again not tenable for the reason that the Territorial Army is governed by a statute and is Armed Forces of the Union, who have
been specifically included in the Circular dated 3rd February, 2016.
This Court in exercise of judicial review will interpret the policy decisions as they exist rather than to expand the scope of Circulars
when such benefits were not conferred on the members of APS.
24) This Court in a judgement reported as Major M.R. Penghal v.
Union of India
8 examined somewhat similar question but in
different context. In that case, a clerk of the Department of Posts
was promoted as Major in the APS. He initially sought voluntary
retirement from the Department of Posts but subsequently sought
to withdraw his such request. The question was as to whether the
appellant therein can invoke jurisdiction of the Central
Administrative Tribunal or the High Court, it being a case prior to
the enactment of Armed Forced Tribunal Act 2007. This Court held
as under: -
“9. As stated above, although the appellant was selected
by the Postal Department for appointment to the post of
clerk, but he could not be given any appointment due to
8 (1998) 5 SCC 454
19
want of vacancy in the unit of his choice. Under such
circumstances, the appellant was offered an appointment
to work as a clerk in the Army Postal Service on the
condition that he would remain a civilian employee on
deputation in the Army. The appellant accepted the
aforesaid offer and agreed to the conditions that he would
revert to the civil appointment in Posts and Telegraphs
Department on his release from the Indian Army Postal
Service. With these conditions, the appellant continued to
serve in the Army as a permanent employee of the Posts
and Telegraphs Department on deputation and was
promoted up to the rank of a Major in the Indian Army.
However, the appellant was only given a temporary
commission and he worked as such till the date when his
relinquishment was ordered. The aforesaid facts clearly
demonstrate that the appellant has a lien with the Posts
and Telegraphs Department working on deputation in the
Indian Army Postal Service and at no point of time the
appellant became a full-fledged army personnel. Since the
appellant was not a member of the Armed Forces and
continued to work as a civilian on deputation to the Army
Postal Service, his case was covered under Section 14(1)
(a) of the Administrative Tribunals Act. In that view of the
matter, the High Court was right in rejecting the writ
petition filed by the appellant, whereas the Central
Administrative Tribunal erroneously accepted the claim of
the appellant that he is an army personnel………... “
25) Another undisputed fact that the respondents have retired from
service corresponding to the age of the retirement of the
Department of Posts i.e. 58 years or 60 years. It is not disputed
that retirement age of a regular Commissioned Officer of the rank
of Lt. Colonel is 54 years. Such fact only shows that the
respondents are the holders of civil posts entitled to civil pension
and are not the Ex-servicemen to which benefit of OROP was
conferred. If the respondents are to be accepted as members of
the Armed Forces in respect of retrial benefits, they would have
been made to retire at the age of 54 years i.e. the age of the
superannuation of the personnel of the Armed Forces in the rank of
20
Lt. Colonel.
26) We, thus, hold that the persons such as the respondent and the
intervenors on deputation to APS from Department of Posts are not
entitled to the benefit of OROP. Therefore, the order of the
Tribunal is not sustainable in law and hence set aside. The appeal
is allowed.
.............................................J.
(L. NAGESWARA RAO)
.............................................J.
(HEMANT GUPTA)
NEW DELHI;
NOVEMBER 05, 2019.
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Arbitration = An agreement dated 30.08.2001 was entered into between the respondent-Central Warehousing Corporation and the appellant for a period of two years from 28.08.2001 to 27.08.2003 for carrying out the work of Handling and Transportation at Inland Clearance Depot (ICD), Varanasi. The respondent-Corporation terminated the contract on 21.02.2002 under Clause X(A) and X(B) of the agreement due to appellant’s poor performance as Handling and Transportation Contractor and deterioration of the situation at the Inland Clearance Depot. The security deposit furnished by the appellant upto the date of termination was also forfeited = The learned Arbitrator and the Courts below have recorded the concurrent findings that the appellant Contractor has failed in carrying out the work as per the terms and conditions of the contract and the learned Arbitrator has rightly allowed the detention and forfeiture of the equipments of the contractor and disallowed the counter claim No.4 of the appellant. Similarly, the counter claim No.5 which was for the damages for the alleged detention and use of hand trolleys has been rejected and thus, the counter claim Nos.4 and 5 have been rightly disallowed by the learned Arbitrator. We do not find any reason warranting interference with the award passed by the Arbitrator and the impugned judgment and this appeal is liable to be dismissed.

Arbitration = An agreement dated 30.08.2001 was entered into between the respondent-Central Warehousing Corporation and the appellant for a period of two years from 28.08.2001 to 27.08.2003 for carrying
out the work of Handling and Transportation at Inland Clearance Depot (ICD), Varanasi. The respondent-Corporation terminated the contract on 21.02.2002 under Clause X(A) and X(B) of the
agreement due to appellant’s poor performance as Handling and Transportation Contractor and deterioration of the situation at the Inland Clearance Depot. The security deposit furnished by the
appellant upto the date of termination was also forfeited =

The learned Arbitrator and the Courts below have recorded the concurrent findings that the appellant Contractor has failed in carrying out the work as per the terms and conditions of the contract
and the learned Arbitrator has rightly allowed the detention and forfeiture of the equipments of the contractor and disallowed the counter claim No.4 of the appellant. Similarly, the counter claim
No.5 which was for the damages for the alleged detention and use of hand trolleys has been rejected and thus, the counter claim Nos.4 and 5 have been rightly disallowed by the learned Arbitrator.
We do not find any reason warranting interference with the award passed by the Arbitrator and the impugned judgment and this appeal is liable to be dismissed.


REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.655 OF 2016
M/S VIJAY TRADING AND TRANSPORT
COMPANY ...Appellant
VERSUS
CENTRAL WAREHOUSING CORPORATION …Respondent
J U D G M E N T
R. BANUMATHI, J.
This appeal arises out of the impugned judgment dated
19.07.2010 passed by the High Court of Delhi in FAO(OS) No.435
of 2010 in and by which the High Court dismissed the appeal filed
by the appellant thereby upholding the judgment of the learned
Single Judge thereby affirming the dismissal of the objections filed
under Section 34 of the Arbitration and Conciliation Act, 1996
against the arbitral award dated 18.03.2005.
2. Brief facts which led to filing of this appeal are as under:-
An agreement dated 30.08.2001 was entered into between
the respondent-Central Warehousing Corporation and the appellant
for a period of two years from 28.08.2001 to 27.08.2003 for carrying
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out the work of Handling and Transportation at Inland Clearance
Depot (ICD), Varanasi. The respondent-Corporation terminated the
contract on 21.02.2002 under Clause X(A) and X(B) of the
agreement due to appellant’s poor performance as Handling and
Transportation Contractor and deterioration of the situation at the
Inland Clearance Depot. The security deposit furnished by the
appellant upto the date of termination was also forfeited.
3. Dispute arose between the parties which led to the
appointment of an arbitrator vide reference order dated 23.09.2002.
The respondent-Corporation claimed a sum of Rs.98,06,000/- with
interest @ 18% thereon. It was contended by the respondentCorporation that the performance of the appellant was not found
satisfactory particularly, in regard to Export loaded Container
No.TRIU-4991702x40’, which was illegally detained by the appellant
and the appellant failed to transport the container to the Port at Navi
Mumbai. The said container was handed over to the appellant on
06.11.2001 from the Inland Clearance Depot, Varanasi and did not
reach its destination, JNP, Navi Mumbai within the stipulated time
period i.e. upto 16.11.2001. When the exporter, M/s Bhola Nath
Industries pressed for early recovery of the container and also
raised claims towards compensation for loss of the container, the
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respondent-Corporation started inquiries and issued several notices
to the appellant for recovery of the container and non-performance
of contractual obligations. Only after intervention of the Courts, the
container was located and recovered at Ghaziabad and received
back at ICD, Varanasi on 23.05.2003. But by then, the said
container missed the export schedule. The exporter initially
declared that the cargo stuffed in the container was of no use to
him; but subsequently, reprocessed the same to make it usable.
4. The appellant filed counter claims under various heads
claiming Rs.52,00,000/- with interest @ 18% thereon. It was
submitted by the appellant that the container in question was
illegally detained by M/s ODC Roadways to whom the container
was entrusted for transportation to Port, Navi Mumbai. According to
the appellant, it had taken all possible steps including approaching
the High Court for speedy recovery of the container and in spite of
all the efforts taken by the appellant, respondent-Corporation
terminated the contract illegally.
5. Taking into consideration the claim and grounds for
termination and also the reply filed by the appellant, the Arbitrator
vide award dated 18.03.2005 upheld the termination of the contract
as valid and decided certain claims of the respondent in its favour.
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Certain counter claims of the appellant were also allowed by the
learned Arbitrator. Other claims including counter claim No.3 (claim
of Rs.4,30,284/- towards refund of security deposit) and counter
claim No.4 (claim of Rs.15,75,484/- including interest of
Rs.4,64,815/- towards illegal detention of the fork lift) were decided
against the appellant. It was held by the Arbitrator that the
termination of the contract is legal and justified and in view thereof,
the respondent had the right to forfeit the security deposit. As to the
claim of the appellant towards alleged detention of the fork lift and
hand trolleys, the Arbitrator held that the detention of the
equipments is right and justified. The Arbitrator held that it is seen
from Clause 5(g) of the tender conditions of the contract that the
respondent has the right to demand the balance due when sufficient
sum is not available to cover the full amount recoverable from
security deposit and other dues. In view of the heavy claim amount
of M/s Bhola Nath Industries and Customs/Excise Department and
others, the learned Arbitrator concluded that there is no illegality in
the action on the part of the claimant in detaining the equipments
like fork lift and hand trolleys as security.
6. The appellant filed objections under Section 34 of the
Arbitration and Conciliation Act contending that the order of
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termination whereby the security deposit was also forfeited does not
record any reason for forfeiture of the security deposit. Similarly, no
reason has been given by the Arbitrator for rejecting the counter
claim No.3. In support of its counter claim No.4, the appellant
averred that for successful executing of the contract, it had
employed one fork lift and four hand trolleys at Inland Clearance
Depot, Varanasi, which were owned by them and the same have
been illegally detained by the respondent. On behalf of the
respondent-Corporation, it was contended that the forfeiture of the
security deposit was justified on the following reasons – firstly in
view of the heavy claim raised by M/s Bhola Nath Industries before
the Consumer Forum, Lucknow and secondly, on account of bank
guarantee to sum of rupees ten lakhs furnished by the respondent
for release of the container. The respondent submitted that a claim
of rupees forty lakhs was lodged by M/s Bhola Nath Industries Ltd.
Accordingly, it was decided not only to withhold the payment due to
the appellant, but also to forfeit all the equipments in use.
7. Considering the objections of the appellant and the claim of
the respondent-Corporation, the learned Single Judge of the High
Court found no infirmity in the reason recorded by the learned
Arbitrator while rejecting counter claim No.4. Counter claim No.3
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was allowed to the extent that in case the bank guarantee furnished
by the respondent-Corporation is discharged, the appellant would
be entitled to refund the security deposit in the sum of
Rs.4,30,284/-. The appeal filed by the appellant under Section 37 of
the Arbitration and Conciliation Act was dismissed vide the
impugned judgment affirming the order of the learned Single Judge.
8. Before the Supreme Court, the appellant has only pressed
counter claim Nos.3 and 4. Mr. Aniket Jain, learned counsel for the
appellant has contended that the courts below erred in not
appreciating the fact that the appellant exercised due diligence and
has taken efforts for the recovery of illegally detained container
including lodging of FIR and initiating legal proceedings. It was
submitted that the courts below failed to appreciate that the
conditions imposed regarding the refund of security deposit is
beyond the terms of the agreement between the parties as well as
the terms of reference made to the arbitrator and the order of the
learned Single Judge to replace the bank guarantee is untenable
and prayed for allowing of the appeal.
9. Insofar as the forfeiture of security deposit is concerned,
Mr. K.K. Tyagi, learned counsel for the respondent-Corporation has
submitted that M/s Bhola Nath Industries, whose containers
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remained missing for a long time on account of the conduct of the
appellant had lodged a claim against the respondent for a sum of
rupees forty lakhs and though the same has been dismissed for
non-prosecution, the same may be restored at any time at the
instance of the complainant M/s Bhola Nath Industries Ltd. It was
therefore, contended that the forfeiture of the security amount and
fork lift cannot be said to be arbitrary or unjustified and in
accordance with the terms of the contract. Learned counsel further
submitted that the respondent Corporation had to furnish a bank
guarantee of rupees ten lakhs to get the container released in view
of the suit filed by the third party-M/s ODC against the appellant for
retaining the container till their dues are paid by the appellant and
the case is still pending and therefore, the learned Arbitrator has
rightly upheld the act of the respondent-Corporation in forfeiting the
security deposit.
10. We have carefully considered the contentions of both the
parties and perused the impugned judgment and the award passed
by the learned Arbitrator and the order of the learned Single Judge
and other materials on record.
11. The Export loaded Container No.TRIU-4991702x40’ was
handed over by the Manager, ICD, Varanasi to the appellant on
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06.11.2001 for delivery of the container at JNP, Navi Mumbai; but
the appellant had failed to transport the container to the destination
port and only with the intervention of the Court, the container was
located and recovered at Ghaziabad and received back at ICD,
Varanasi on 23.05.2003. But by then, the said container already
missed the export schedule. When the Export loaded Container
No.TRIU-4991702x40’ was entrusted to the appellant, the appellant
ought to have transported the container to the port of destination
with due diligence. The respondent- Corporation has justified the
forfeiture of the security deposit on two counts:- firstly, in view of the
heavy claim raised by M/s Bhola Nath Industries Ltd. for which they
have filed a claim of rupees forty lakhs before the Consumer Forum,
Lucknow and secondly, on account of bank guarantee in the sum of
rupees ten lakhs furnished by the respondent-Corporation for
release of the container. The learned Arbitrator and the Courts
below have recorded the concurrent findings by holding the
termination of the contract legal and levy of forfeiture of the security
amount of Rs.4,30,284/- and the levy of fork lift is justified.
12. The container handed over to the appellant was detained by
the third party-M/s ODC Roadways represented by Sh. Prabhu Nath
Sing, who filed a Civil Suit No.1127 of 2001 against the appellant
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stating that his dues had not been cleared by the appellant. The
respondent-Corporation had filed an application in the said suit for
release of the container which was rejected by the Civil Court,
Ghaziabad on 28.11.2002 and the respondent had to file a Civil
Revision Petition No.180 of 2002 before the High Court of
Allahabad in which a direction was issued to the trial court to
dispose of the application afresh. It was thereafter, the trial court
released the container on furnishing a bank guarantee of rupees ten
lakhs by the respondent-Corporation. The trial court released the
container only on furnishing of bank guarantee of rupees ten lakhs.
It is stated that the said civil suit is still pending in the Ghaziabad
Court and is at the stage of recording evidence.
13. Insofar as the allegation of detention of fork lift and hand
trolleys, the respondent-Corporation has stated that after finalisation
of the arbitration case between the respondent-Corporation and the
appellant, all the dues as per the order of the Arbitrator has been
paid to the contractor; but the appellant did not approach the
respondent-Corporation for lifting their equipments and as such the
same were lying at ICD, Bhadohi occupying valuable space.
According to the respondent-Corporation, for the space occupied by
the equipments, the total rent for the period up to 31.05.2007 works
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out to Rs.41,746/- and Rs.89,049/- for fork lift and hand trolleys
respectively. Be that as it may, according to the respondentCorporation, the detention of the equipments were made as per the
terms of the agreement at Clause 5(g) and the same was
accepted by the arbitrator. As held by the learned Arbitrator, the
appellant was given a contract to assist in smooth running of
international business of import and export and to have the time
management on top priority. Failure to transport the container to the
Port at Navi Mumbai resulted in missing of the export schedule.
Taking into consideration the failure of the appellant to deliver the
container at the Port at Navi Mumbai and the time taken in recovery
of the container and the expenditure incurred by the respondentCorporation in particular, furnishing of bank guarantee of rupees ten
lakhs, the detention of the equipments cannot be said to be arbitrary
or beyond the terms of the agreement.
14. It is pertinent to note that the appellant has received an
amount of Rs.11,06,598/- as the amount allowed by the Arbitrator
vide award dated 18.03.2005 by DD No.079915 dated 03.09.2005.
Thus, even before filing of the objection petition under Section 34 of
the Act, the appellant has received the full payment due and
payable to him as per the arbitral award dated 18.03.2005.
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According to the respondent-Corporation, the appellant has not
disclosed the receipt of the money at the time of filing the petition
under Section 34 of the Act.
15. The learned Arbitrator and the Courts below have recorded
the concurrent findings that the appellant Contractor has failed in
carrying out the work as per the terms and conditions of the contract
and the learned Arbitrator has rightly allowed the detention and
forfeiture of the equipments of the contractor and disallowed the
counter claim No.4 of the appellant. Similarly, the counter claim
No.5 which was for the damages for the alleged detention and use
of hand trolleys has been rejected and thus, the counter claim
Nos.4 and 5 have been rightly disallowed by the learned Arbitrator.
We do not find any reason warranting interference with the award
passed by the Arbitrator and the impugned judgment and this
appeal is liable to be dismissed.
16. In the result, the impugned judgment dated 19.07.2010
passed by the High Court in FAO(OS) No.435 of 2010 is affirmed
and this appeal is dismissed. No costs.
…………………….J.
[R. BANUMATHI]
…………………….J.
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[A.S. BOPANNA]
…………………….J.
[HRISHIKSH ROY]
New Delhi;
November 07, 2019
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