Full Judgment Text
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PETITIONER:
NAGENDRA NATH BORA & ANOTHER
Vs.
RESPONDENT:
THE COMMISSIONER OF HILLS DIVISIONAND APPEALS, ASSAM, AND OT
DATE OF JUDGMENT:
07/02/1958
BENCH:
SINHA, BHUVNESHWAR P.
BENCH:
SINHA, BHUVNESHWAR P.
BHAGWATI, NATWARLAL H.
IMAM, SYED JAFFER
KAPUR, J.L.
GAJENDRAGADKAR, P.B.
CITATION:
1958 AIR 398 1958 SCR 1240
ACT:
High Court, Powers of-Writ of certiorari, if can be issued
to quash an error of fact apparent on the face of the
record-judicial Supervision, Scope of-Appellate Authority if
and when acts in quasi-judicial capacity-Test-Plea of
failure of natural justice, when can be entertained-
Constitution of India, Arts. 226, 227Eastern Bengal and
Assam Excise Act, 1910 (E. B. & Assam Act I of 1910) as
amended by Ad. 23 Of 1955, s. 9, Rule 343.
HEADNOTE:
The High Court has no power under Art. 226 of the Constitu-
tion to issue a writ of certiorari in order to quash an
error of fact, even though it may be apparent on the face of
the record. It can do so only where the error is one of law
and that is apparent on the face of the record. Any error
of law or fact which it can correct as a court of appeal or
revision cannot be a ground for the exercise of its power
under that Article.
Hari Vishnu Kamath v. Syed Ahmed Ishaque and others, [1955]
I S.C.R. 1104, relied on.
Queen v. James Bolton, (1841) (1) Queen’s Bench 66, King v.
Nat Bell Liquors, Limited, [1922] 2 A.C. 128, Rex v.
Northumberland Compensation Appeal Tribunal, (1951) 1 K.B.
711 and Rex v. Northumberland Compensation Appeal Tribunal,
(1952) 1 K.B. 338, referred to.
The jurisdiction of the High Court under Art. 226 of the
Constitution is limited to seeing that the judicial or
quasi-judicial tribunals or administrative bodies exercising
quasi-judicial powers, do not exceed their statutory
jurisdiction and correctly administer the law laid down by
the statute under which they act. So long as the hierarchy
of officers and Appellate authorities created by a statute
function within their ambit, the manner in which they do so
can be no ground for interference.
The powers of judicial supervision of the High Court under
Art. 227 Of the Constitution are not greater than those
under Art. 226 and must be limited to seeing that the
tribunal functions within the limits of its authority.
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Waryam Singh and another v. Amarnath and another, [1954]
S.C.R. 565, referred to.
Consequently, where the High Court in exercise of its powers
under Arts. 226 and 227 Of the Constitution interfered with
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certain orders made by the Excise Appellate Authority under
the Assam Excise Act as being in excess of its jurisdiction
on the ground that they were vitiated by errors of fact
apparent on the face of the record, such interference was
without jurisdiction and the orders passed by the High Court
must be set aside.
Held further, that where an appellate Authority, as in the
instant case, is constituted the highest authority by the
statute for deciding as between the claims of rival parties,
its powers cannot be circumscribed nor can it be held to
have acted in excess of its powers or without jurisdiction
on considerations foreign to the statute or the rules.
Raman and Raman Ltd. v. The State of Madyas, [1956] S.C.R.
256, referred to.
In the absence of anything to show that the appellate
Authority had contravened any rules of natural justice,
which must be understood in the context of the’ rules laid
down by the statute itself, it would be wrong to say that
there has been a failure of natural justice simply because
the view it took of the matter might not be acceptable to
another tribunal.
New Prakask Transport Co. Ltd. v. New Suwarna Transport Co.
Ltd., [1957] S.C.R. 98, relied on.
The question whether an administrative authority functions
merely in an administrative or quasi-judicial capacity must
be determined on an examination of the statute and its rules
under which it acts, and there can be no doubt on such
examination that the Authorities mentioned in s. 9 of the
Eastern Bengal and Assam Excise Act, 1910, as amended by
Assam Act 23 Of 1953, are no mere administrative bodies and
their orders are, therefore, amenable to the powers of
control and supervision vested in the High Court by Arts.
226 and 227 Of the Constitution.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeals
Nos. 668, 669, 670 and 672 of 1957.
Appeal by special leave from the judgment and order dated
August 6, 1957, of the Assam High Court in Civil Rule No. 65
of 1957.
A. V. Viswanatha Sastri and Dipak Datta Choudhury, for the
appellants in C. As. Nos. 668 and 669 of 1957 and
respondent No. 2 in C.A. No. 670 of 1957.
S. M. Lahiri, Advocate-General for the State of Assam and
Naunit Lai, for the appellants in C.A. No. 670 of 1957 and
respondent No. 2 in C.A. No. 669 of 1957.
1958. February 7. The following Judgment of the Court was
delivered by
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SINHA J.-These appeals by special leave are directed against
the judgments and orders of the Assam High Court, exercising
its powers under Arts. 226 and 227 of the Constitution, in
respect of orders passed by the Revenue Authorities under
the provisions of the Eastern Bengal and Assam Excise Act,
1910 (E. B. and Assam Act I of 1910) (hereinafter referred
to as the Act). They raise certain common questions of
constitutional law, and have, therefore, been heard
together, and will be disposed of by this Judgment. Though
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there are certain common features in the pattern of the
proceedings relating to the settlement of certain country
spirit shops, when they passed through the hierarchy of the
authorities under the Act, the facts of each case are
different, and have to be stated separately in so far as it
is necessary to state them.
(1) Civil Appeal No. 668 of 1957.
The two appellants Nagendra Nath Bora and Ridananda Dutt are
partners, the partnership having been formed in view of the
Government notification dated November 30, 1956, amending
rule 232 of the Assam Excise Rules, to the effect that the
settlement of the country spirit shops which may be declared
by the Government to be ’big shops’, shall be made with two
or more partners who shall not belong to the same family nor
should be related to one another (vide correction slip at p.
106 of the Assam Excise Manual, 1946). In accordance with
the rules framed under the Act, tenders were invited by the
Deputy Commissioner of Sibsagar, for the settlement of
Jorhat country spirit shop for the financial year 1957-58,
in December, 1956. The appellants as members of the
partnership aforesaid, submitted a tender in the prescribed
form. Respondents 3 and 4, Dharmeshwar Kalita and Someswar
Neog, respectively, also were amongst the tenderors. The
Commissioner of Hills Division and Appeals,, Assam, and the
Commissioner of Excise, Assam, are the first and the second
respondents in this case It is necessary to state at this
stage that in respect of the financial year 1956-57, the
shop in
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question was ordered by the first respondent as the Excise
Appellate Authority to be settled with the first appellant
Nagendra Nath as an individual, setting aside the orders of
the Deputy Commissioner and the Excise Commissioner. The
other competitors for the settlement of the said shop being
dissatisfied with the orders of the first respondent, moved
the Assam High, Court and challenged the validity of the
settlement made in the first appellant’s favour. Similar
writ cases challenging orders of settlement by the first
respondent as the Excise Appellate Authority, had been
instituted in the High Court. All those cases were heard
together, and the High Court, by its judgment dated May 22,
1956, quashed the orders passed by the first respondent,
chiefly on the ground that the Appellate Authority had been
illegally constituted. The matter was brought by way of
special leave to this Court, and was heard by the
Constitution Bench which, by its judgment dated January 31,
1957, decided that the constitution of the Commissioner of
Hills Division and Appeals as the ultimate appellate
Authority under the Act, was not unconstitutional. The
judgment of this Court is reported in the case of The State
of Assam v. A. N. Kidwai (1). It will be necessary, in the
course of this judgment, to make several references to that
decision which, for the sake of brevity, we shall call the
ruling of this Court’. The result of the ruling of this
Court, was that the determination by the Assam High Court
that the orders passed by the first respondent, were void,
was set aside, and the settlement made by that Authority,
consequently, stood restored. But in the meantime, as the
orders of the first respondent stood quashed as a result of
the judgment of the High Court, the direction of the Excise
Commissioner that the shop in question be resettled, was
carried out, and the settlement was made with the third
respondent aforesaid as an individual. He continued in
possession of the shop until February 26, 1957, on which
date, the first appellant was put in possession as a result
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of the ruling
(1) [1957] S.C.R. 295.
158
1244
of this Court. Even so, the first appellant could exercise
his rights as a lessee of the shop only for a few months
during the financial year ending March 31,
1957.
For the financial year 1957-58, the Deputy Commissioner, in
consultation with the local Advisory Committee, settled the
shop in question with the third and the, fourth respondents
aforesaid. The tender submitted by the appellants, was not
considered by the licensing authority on the erroneous
ground that the orders passed by the first respondent as the
ultimate Revenue Authority in the matter of settlement of
excise shops, had been rendered null and void as a result of
the decision of the High Court, referred to above. The
appellants, as also others who were competitors for the
settlement aforesaid, preferred appeals to the Excise
Commissioner who set aside the settlement made in favour of
the respondents 3 and 4, and ordered settlement of the shop
with the appellants. The Excise Commissioner took into
consideration the fact that the order of the High Court,
nullifying the proceedings before the first respondent, had
been set aside by the ruling of this Court. The consequence
of the order of this Court, was, as the Commissioner of
Excise pointed out, that a supposed disqualification of the
appellants as competent tenderers, stood vacated as a result
of the first respondent’s order. The third and the fourth
respondents, as also other dissatisfied tenderers preferred
appeals to the first respondent against the order of the
second respondent (the Excise Commissioner). The first
respondent dismissed those appeals and confirmed the order
settling the shop with the appellants, by his order dated
June 10, 1957. The respondents 3 and 4, then, moved the
High Court under Arts. 226 and 227 of the Constitution, for
an appropriate writ for quashing the order passed by the
first respondent. The High Court, by its order dated August
6, 1957, quashed the aforesaid order of settlement in favour
of the appellants by the first respondent. The High Court
further directed that all the tenders be reconsidered in the
light of the observation made by it. The main ground of
decision in the
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High Court, was that the Excise Appellate Authority had
acted in excess of its jurisdiction, and that its order was
vitiated by errors apparent on the face of the record. The
prayer for a certificate that the case was a fit one for
appeal to this Court, having been refused by the High Court,
the appellants obtained special leave to appeal.
(11) Civil Appeal No. 669 of 1957.
This appeal relates to the settlement of the Murmuria
country spirit shop in the district of Sibsagar, for the
financial year 1957-58. The appellant Lakhiram Kalita and
the first respondent Bhanurani Pegu, amongst others, had
submitted their tenders for the settlement of the shop. The
Deputy Commissioner, after consulting the Advisory
Committee, settled the shop with the first respondent
aforesaid. The appeals filed by the appellant and other
disappointed tenderers, were dismissed by the Excise
Commissioner by his order dated March 25, 1957. Against the
said order, the appellant and another party filed further
appeals to the Commissioner of Hills Division and Appeals,
who, by his order dated May 30, 1957, set aside the
settlement in favour of the first respondent, and ordered
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settlement with the appellant. In pursuance of that order,
the appellant took possession of the shop with effect from
June 5, 1957. The first respondent’s application for review
of the order aforesaid, stood dismissed on June 11, 1957.
Against the aforesaid orders of the Commissioner of Hills
Division and Appeals, the first respondent moved the High
Court under Arts. 226 and 227 of the Constitution, for a
proper writ for quashing them. On June 17, 1957, the writ
petition was heard ex parte, and the High Court issued a
rule to show cause why a writ as prayed for, should not be
issued. The rule was made returnable within three weeks.
The High Court also made the further order in these terms:-
"Meanwhile, the status quo ante will be maintained."
This last order was misinterpreted by the first respondent
and his advisers as entitling them to be put in
1246
possession of the shop, and it is stated that the first
respondent threatened the appellant to oust him from the
shop on the basis of the order of the High Court quoted
above. The appellant moved the High Court for a
clarification of its order aforesaid. The High Court
naturally observed that by I maintaining status quo ante’,
the High Court meant that whoever was in possession of the
shop on June 17, 1957, will continue to be in possession
during the pendency of the case in the High Court. But,
curiously enough, the Deputy Commissioner, by an ex parte
order, on June 21, 1957, directed that the first respondent
be put in charge of the shop forthwith, and the order was
carried out. When the Deputy Commissioner was approached by
the appellant to restore him to possession in view of the
observation of the High Court, he asked the appellant to
obtain further order from the High Court. Thereafter, the
appellant again moved the High Court on June 28, 1957,
stating all the facts leading to his wrongful dispossession,
and seeking relief in the High Court. No order was passed
on that petition. Ultimatey, the High Court, by its order
dated July 31, 1957, set aside the order of the Commissioner
of Hills Division and Appeals. The appellant’s prayer for a
certificate that the case was a fit one for appeal to this
Court, having been refused by the High Court, he moved this
Court and obtained special leave to appeal.
(III) Civil Appeal No. 670 of 1957.
This appeal is on behalf of the Commissioner of Hills
Division and Appeals, Assam, against the judgment and order
of the High Court relating to the Murmuria shop which is the
subject-matter of Civil Appeal No. 669 referred to in the
previous paragraph. The first respondent to this appeal is
Bhanuram Pegu who is also the first respondent in Civil
Appeal No. 669 of 1957. The second respondent is Lakhiram
Kalita who is the appellant in Civil Appeal No. 669 of 1957.
Both these respondents, as already indicated, are the
competing tenderers for the shop in question. The facts of
this case have already been stated in relation
1247
to Civil Appeal No. 669 of 1957. This appeal has been
brought with a view to getting the legal position clarified
in view of the frequent appeals made to the appellant in the
matter of settlement of excise shops.
(IV) Civil Appeal No. 672 of 1957.
This appeal relates to the Tinsukia country spirit shop in
the district of Lakhimpur. The appellants, Rafiulla Khan
and Mahibuddin Ahmad, are partners, and as such, are
interested in the settlement of the shop for the financial
year 1957-58. This shop had been jointly settled with the
first appellant and his father for a number of years. For
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the year 1956-57 also, the lease had been granted to them by
the Deputy Commissioner, after consultation with the
Advisory Committee. A number of unsuccessful tenderers
filed appeals before the Commissioner of Excise questining
the settlement with the first appellant and his father in
respect of the year 1956-57. The Excise Commissioner set
aside the settlement, and ordered a resettlement. The first
appellant and his father filed an appeal before the Excise
Appellate Authority, against the order of the Commissioner
of Excise. The Appellate Authority allowed the appeal, and
set aside the orders of the Commissioner and the Deputy
Commissioner. One Rafiqul Hussain, one of the competitors
for the shop, filed a writ petition before the High Court
under Arts. 226 and 227 of the Constitution. This writ
application, along with other similar applications, was
heard and decided by the High Court, as afore. said, by its
judgment dated May 23, 1956. Against the judgment of the
High Court, the first appellant and his father appealed to
this Court by special leave, with the result indicated
above. During the pendency of the appeal in this Court in
the absence of a stay order, the direction of the
Commissioner for a resettlement, was carried out. The
Deputy Commissioner, with the unanimous advice of the
Advisory Committee settled the shop with the first appellant
on July 25, 1956. The first respondent and some others
preferred appeals before the Commissioner of Excise, against
the order aforesaid of the Deputy Commissioner. As the
1248
special leave appeals to this Court were pending at that
time, the Excise Commissioner, under a misapprehension of
the effect of this Court’s order refusing interim stay, set
aside the Deputy Commissioner’s order, and directed the
settlement to be made with the first respondent. As there
was no Excise Appellate Authority functioning at the time as
a result of the decision, aforesaid, of the High Court,
declaring the constitution of such an Authority to be void,
the first appellant moved the High Court under Arts. 226 and
227 of the Constitution, on the ground that the order of the
Excise Commissioner was vitiated by an error apparent on the
face of the record in so far as he had misunderstood the
order of the Supreme Court passed on the stay petition. The
High Court admitted the application but rejected the prayer
for maintenance of status quo in the sense that the first
appellant’s possession be maintained. On the stay petition
being rejected by the High Court, the first respondent took
possession of the shop from the first appellant as a result
of the Excise Commissioner’s order in his favour. The High
Court ultimately dismissed the writ application by its order
dated December 6, 1.956. The appeal filed by the appellant
and his father, already pending in this Court, was heard and
determined as aforesaid, in January, 1957. This Court
reversed the decision of the High Court, and restored the
status of the Excise Appellate Authority. As a result of
the ruling of this Court, the Excise Appellate Authority, by
its order dated February 25, 1957, directed delivery of
possession back to the first appellant and his father,
holding that the order of resettlement and the resettlement,
itself, in pursuance of that order, were all wiped out.
Against the said order, the first respondent moved the High
Court under Arts. 226 and 227 of the Constitution for
quashing the order for delivery of possession, on the ground
of want of jurisdiction, and for ad interim stay. The High
Court issued a rule and passed an order for interim stay on
February 26, 1957. The High Court made the rule absolute by
its order dated March 26, 1957, taking the view that the
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attention of this Court had not been drawn to the interim
1249
settlement of the shop in the absence of an order of stay.
It appears further that during the pendency of the appeal in
this Court, fresh settlement for the financial year 1957-58,
took place towards the end of 1956, and the beginning of
1957. The Tinsukia shop -was settled with respondents I and
2 though the appellants also had jointly submitted a tender
for the same. The appellants and other parties preferred
appeals against the said order of settlement made by the
Deputy Commissioner. The Excise Commissioner set aside the
settlement by the Deputy Commissioner, and directed
settlement in favour of the appellants by his order dated
April 16, 1957. Against that order, respondents I and 2 and
others preferred appeals before the Excise Appellate
Authority who, by an order dated June 3, 1957, dismissed the
appeals. Accordingly, the appellants were given possession
of the shop on June 7, 1957. The respondents I and 2 again
moved the High Court for quashing the order of the Excise
Appellate Authority, affirming that of the Excise
Commissioner, and also prayed for the status quo being
maintained. The High Court admitted the petition and
ordered " meanwhile, status quo ante be maintained." This
took place on June 10, 1957. In pursuance of the aforesaid
order of the High Court, the appellants were dispossessed of
the shop even though they had been put in possession only
three days earlier. This was done on a complete
misapprehension of the true effect of the order of the High
Court maintaining status quo ante. If the High Court had
passed its order in a less sophisticated and more easily
understood language in that part of the country, perhaps,
the party in possession, would not have been dispossessed of
the shop settled with it. The appellants moved the High
Court against the Commissioner’s order directing possession
to be given to the respondents 1 and 2. The High Court
issued a rule but refused to grant stay of the operation of
the order directing possession to be given. During the
final hearing of the rule before the High Court, the
appellants again moved a petition on July 5, 1957, for
vacating the
1250
order of possession which was based on a misapprehension of
the order of the High Court maintaining status quo ante, but
apparently, no order was passed because possession had
already been given to the respondents I and 2. During the
hearing of the rule by the High Court, an unfortunate
incident occurred, for which the appellants cannot
altogether be absolved of some responsibility, as a result
of which, one of the learned judges constituting the Bench,
namely, Deka J. expressed his unwillingness to proceed with
the hearing of the case. The hearing had, therefore, to be
adjourned on July 15, 1957, until a new Bench could be
constituted. The appellants renewed their application
already made on July 5, as aforesaid, for undoing the
unintended effect of the order of the High Court, that the
status quo ante was to continue. But on July 30, the Chief
Justice directed that the matter be placed before a Division
Bench. As there was no third judge at the time, the
disposal of the case, naturally had to stand over until the
third judge was available. The matter of delivery of
possession was again mentioned before the Division Bench of
the Chief Justice and Deka J. The High Court rejected the
application on grounds which cannot bear a close scrutiny.
The petitioners also approached the Excise Appellate
Authority, but it refused to reconsider the matter as the
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case was then pending before the High Court. Again on
August 14, 1957, a fresh application was made to the High
Court, along with a copy of the orders passed by the Excise
Appellate Authority and the Deputy Commissioner, Lakhimpur,
giving delivery of possession to respondents 1 and 2. But,
this time, Deka J. refused to hear the matter, and
naturally, the Chief Justice directed the matter to be
placed before him, sitting singly. on August 19, 1957, the
matter was placed before the Chief Justice sitting singly,
and he directed a rule to issue on the opposite party cited
before that Court, to show cause. Apparently, the learned
Chief Justice treated the matter as a new case and not as an
off-shoot of the case already pending before the High Court.
The High Court closed for the long vacation on September 2,
and was to reopen on
1251
November 3, 1957. The vacancy of the third judge had not
been filled till then, and as the appellants felt that they
had been wrongfully deprived of their right to hold their
shop, as a result of an erroneous interpretation of the
order of the High Court, passed on June 10, as aforesaid,
and as there was no prospect of the case being disposed of
quickly, the appellants moved this Court and obtained
special leave to appeal.
As is evident from the statement of facts in connection with
each one of the appeals, set out above, these cases have
followed a common pattern. They come from the ’non-
prohibited areas in the State of Assam where sale of
’country spirit’ is regulated by licences issued by the
authorities under the provisions of the Act. Settlement of
shops for the sale of such liquor is made for one year April
I to March 31. According to the present practice contained
in Executive lnstructions, intending candidates for
licences, have to submit tenders to the Deputy Commissioner
for the Sadar Division and to Sub-Divisional officers for
Sub-Divisions, in accordance with the terms of notices
published for the purpose. Such tenders are treated as
strictly confidential. Settlement is made by the Deputy
Commissioner or the Sub-Divisional Officer concerned, as the
case may be, in consultation with an Advisory Committee
consisting of 5 local members or less. The selection of a
particular tenderer is more or less a matter of
administrative discretion with the officer making the
settlement. Under the Act, an appeal from an order of
settlement made by a Deputy Commissioner or Sub-Divisional
officer, lies to the Commissioner of Excise, and from an
order of the Commissioner of Excise to the Excise Appellate
Authority whose decision becomes final. Section 9 of the
Act, dealing with appeal and revision, has undergone a
series of amendments, and the section as it has emerged out
of the latest amendment by the Amending Act-The Assam Act 23
of 1955-which received the assent of the Governor of Assam
on December 22, 1955, and was published in the Assam Gazette
dated
159
1252
December 28, 1955, is in these terms:
"9. (1) Orders passed under this Act or under any rule made
hereunder shall be appealable as follows in the manner
prescribed by such rules as the State Government may make in
this behalf-
(a) to the Excise Commissioner, any order passed by the
District Collector or a Collector other than the District
Collector,
(b) to the Appellate Authority appointed by the State
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Government for the purpose, any order passed by the Excise
Commissioner.
(2) In cases not provided for by clauses (a) and (b) of
sub-section (1), orders passed under this Act or under any
rules made hereunder shall be appealable to such authorities
as the State Government may prescribe.
(3) The Appellate Authority, the Excise Commissioner or the
District Collector may call for the proceedings held by any
officer or person subordinate to it or him or subject to its
or his control and pass such orders thereon as it or he may
think fit."
Rules 339, 340, 341 and 345 of the Assam Excise Manual,
have, thus, become obsolete and have been deleted as a
result of the latest amendment aforesaid. The power of
hearing appeals and revisions under the Act, has been vested
successively in the Board, the Assam Revenue Tribunal, the
Commissioner for Hills Division and Appeals; and ultimately,
under the amended section, in the Appellate Authority. The
history of the legislation relating to the highest Revenue
Authority under the Act, has been traced in the judgment of
this Court in the State of Assam v.
A.N. Kidwai (supra), and need not be repeated here.
It is convenient, first, to deal with the general questions of
public importance raised on behalf of the appellant in
Civil Appeal No. 670 of 1957. At the forefront of the
arguments advanced on behalf of the Appellate Authority, was
the plea that the several authorities already indicated,
concerned with the settlement of excise shops like those in
question in these appeals, are merely administrative bodies,
and,
1253
therefore, their orders whether passed in the first instance
or on appeal, should not be amenable to the writ
jurisdiction or supervisory jurisdiction of the High Court
under Arts. 226 and 227 of the Constitution. If the matter
had rested only with the provisions of the Act, apart from
the rules made under s. 36 of the Act, much could have been
said in support’ of this contention. As observed by this
Court in the case of Cooverjee B. Bharucha v. The Excise
Commissioner and the Chief Commissioner, Ajmer and others(1)
there is no inherent right in a citizen to sell liquor. It
has further been observed by this Court in the recent case
of the State of Assam v. A. N. Kidwai, (supra), at page 301
as follows:
" A perusal of the Act and rules will make it clear that DO
person has any absolute right to sell liquor and that the
purpose of the Act and the rules is to control and restrict
the consumption of intoxicating liquors, such control and
restriction being obviously necessary for the preservation
of public health and morals, and to raise revenue."
It is true that no one has an inherent right to settlement
of liquor shops, but when the State, by public notice,
invites candidates for settlement to make their tenders, and
in pursuance of such a notice, a number of persons make such
tenders each one makes a claim for himself in opposition to
the claims of the others, and the public authorities
concerned with the settlement, have to choose from amongst
them. If the choice had rested in the hands of only one
authority like the District Collector on his subjective
satisfaction as to the fitness of a particular candidate
without his orders being amenable to an appeal or appeals or
revision, the position may have been different. But s. 9 of
the Act has laid down a regular hierarchy of authorities,
one above the other, with the right of hearing appeals or
revisions. Though the Act and the rules do not, in express
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terms, require reasoned orders to be recorded, yet, in the
context of the subject matter of the rules, it becomes
necessary for the
(I) [1954] S. C. R. 873, 880.
1254
several authorities to pass what are called I speaking
orders’. Where there is a right vested in an authority
created by statute, be it administrative or quasijudicial,
to hear appeals and revisions, it becomes its duty to hear
judicially, that is to say, in an objective manner,
impartially and after giving reasonable opportunity to the
parties concerned in the dispute, to place their respective
cases before it. In this connection, the observations of
Lord Haldane at p. 132, and of Lord Moulton at p. 150, in
Local Government Board v. Arlidge (1), to the following
effect are very apposite:
appeal is imposed, those whose duty it is to decide it must
act judicially. They must deal with the question referred
to them without bias, and they must give to each of the
parties the opportunity of adequately presenting the case
made. The decision must be come to in the spirit and with
the sense of responsibility of a tribunal whose duty it is
to mete out justice. But it does not follow that the
procedure of every such tribunal must be the same."
Lord Moulton: " In the present case, however, the
Legislature has provided an appeal, but it is an appeal to
an administrative department of State and not to a judicial
body. It is said, truthfully, that on such an appeal the
Local Government Board must act judicially, but this, in my
opinion, only means that it must preserve a judicial temper
and perform its duties conscientiously, with a proper
feeling of responsibility, in view of the fact that its acts
affect the property and rights of individuals. Parliament
has wisely laid down certain rules to be observed in the
performance of its functions in these matters, and those
rules must be observed because they are imposed by statute,
and for no other reason, and whether they give much or
little opportunity for what I may call quasi-litigious
procedure depends solely on what Parliament has thought
right. These rules are beyond the criticism of the Courts,
and it is not their business to add to or
(1) [1915] A.C. 120.
1255
take away from them, or even to discuss whether in the
opinion of the individual members of the Court they are
adequate or not."
The legal position has been very succinctly put in
Halsbury’s Laws of England(1), as follows:-
"Moreover an administrative body, whose decision is actuated
in whole or in part by questions of policy, may be under a
duty to act judicially in the course of arriving at that
decision. Thus, if in order to arrive at the decision, the
body concerned had to consider proposals and objections and
consider evidence, if at some stage of the proceedings
leading up to the decision there was something in the nature
of a lis before it, then in the course of such consideration
and at that stage the body would be under a duty to act
judicially. If, on the other hand, an administrative body
in arriving at its decision has before it at no stage any
form of lis and throughout has to consider the question from
the point of view of policy and expediency, it cannot be
said that it is under a duty at any time to act judicially.
Even where the body is at some stage of the proceedings
leading up to the decision under a duty to act judicially,
the supervisory jurisdiction of the Court does not extend to
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considering the sufficiency of the grounds for, or otherwise
challenging, the decision itself."
The provisions of the Act are intended to safeguard the
interest of the State on the one band, by stopping, or at
any rate, checking illicit distillation, and on the other
band, by raising the maximum revenue consistently with the
observance of the rules of temperance. The authorities
under the Act, with Sub-divisional Officers at the bottom
and the Appellate Authority at the apex of the ’hierarchy,
are charged with those duties. The rules under the Act and
the executive instructions which have no statutory force but
which are meant for the guidance of the officers concerned,
enjoin upon those officers, the duty of seeing to it that
shops are settled with persons of character and experience
in the line, subject to certain reservations in
(1) Vol. II. 3rd Edn., PP. 56-57.
1256
favour of tribal population. Except those general con-
siderations, there are no specific rules governing the grant
of leases or licences in respect of liquor shops, and in a
certain contingency, even drawing of lots, is provided for,
vide Executive Instructions 110 at p. 174 of the Manual.
The words of sub-s. (3) of s. 9 as amended, set out above,
vest complete discretion in the Appellate Authority, the
Excise Commissioner or the District Collector, to ’pass such
orders thereon as it or he may think fit.’ The sections of
the Act do not make any reference to the recording of
evidence or hearing of parties or even recording reasons for
orders passed by the authorities aforesaid. But we have
been informed at the bar that as a matter of practice, the
authorities under the Act, hear counsel for the parties, and
give reasoned judgments, so as to enable the higher
authorities to know why a particular choice has been made.
That is also apparent from the several orders passed by them
in course of these few cases that are before us.
But when we come to the rules relating to appeals and
revisions, we find that the widest scope for going up in
appeal or revision, has been given to persons interested,
because r. 344 only lays down that no appeal shall lie
against the orders of composition, thus, leaving all other
kinds of orders open to appeal or revision. Rule 343
provides that every memorandum of appeal shall be presented
within one month from the date of the order appealed
against, subject to the requisite time for obtaining a
certified copy of the order being excluded. Rule 344
requires the memorandum of appeal to be accompanied by a
certified copy of the order appealed against. The
memorandum of appeal has to be stamped with a requisite
court-fee stamp. Rule 343 was further amended by the
Notification dated March 14, 1957, by adding the following
proviso and explanations to that rule:
" Provided further that the competent Appellate Authority
shall have the power to admit the appeal after the
prescribed period of limitation when the appellant satisfies
the Appellate Authority that he had sufficient cause for not
preferring the appeal
1257
within such period.
Explanation (1). The fact that the appellant was misled by
any order, practice or judgment of any Appellate Authority
in ascertaining or computing the prescribed period of
limitation may be sufficient cause within the meaning of
this Rule.
Explanation (2). The fact that the Appellate Authority was
unable to function for any period by reason of any judicial
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pronouncement shall be sufficient cause within the meaning
of this Rule.
The amendment shall be deemed to have been made on 23rd May,
1956, and shall have retrospective effect since that date.
"
These rules, read along with the recent amendments, set out
above, approximate the procedure to be followed by the
Appellate Authorities, to the regular procedure observed by
courts of justice in entertaining appeals. As would appear
from the ruling of this Court at p. 304, where the
provisions and effect of the Assam Revenue Tribunal
(Transfer of Powers) Act, 1948, (Assam IV of 1948) have been
set out, the ultimate jurisdiction to hear appeals and
revisions, was divided between the Assam High Court and the
Authority referred to in s. 3(3) of that Act. Appeals and
revisions arising out of cases covered by the provisions of
the enactments specified in Schedule ’A’ to that Act, were
to lie in and to be heard by the Assam High Court, and the
jurisdiction to entertain appeals and revisions in matters
arising under the provisions of the enactments specified in
Schedule ’B’ to that Act, was vested in the Authority to be
set up under s. 3(3), that is to say, for the purposes of
the present appeals before us, the Excise Appellate
Authority. Thus, the Excise Appellate Authority, for the
purposes of cases arising under the Act, was vested with the
power of the highest appellate Tribunal, even as the High
Court was, in respect of the other group of cases. That
does not necessarily mean that the Excise Appellate
Authority was a Tribunal of co-ordinate jurisdiction with
the High Court, or that that Authority was not amenable to
the supervisory jurisdiction of the
1258
High Court under Arts. 226 and 227 of the Constitution. But
the juxtaposition of the two parallel highest Tribunals, one
in respect of predominantly civil cases, and the other, in
respect of predominantly revenue cases (without attempting
any clear cut line of demarcation), would show that the
Excise Appellate Authority was not altogether an
administrative body which had no judicial or quasi-judicial
functions.
Neither the Act nor the rules made thereunder, indicate the
grounds on which the first Appellate Authority, namely, the
Excise Commissioner, or the second Appellate Authority (the
Excise Appellate Authority), has to exercise his or its
appellate or revisional powers. There is no indication that
they make any distinction between the grounds of
interference on appeal and in revision. That being so, the
powers of the Appellate Authorities in the matter of settle-
ment, would be co-extensive with the powers of the primary
authority, namely, the District Collector or the Sub-
Divisional Officer. See in this connection, the
observations of the Federal Court in Lachmeshwar Prasad
Shukul and others v. Keshwar Lal Chaudhuri and others (1),
and of this Court in Ebrahim Aboobakar and another v.
Custodian -General of Evacuee Property(2). In the latter
case, this Court, dealing with the powers of the Tribunal
(Custodian-General of the Evacuee Property), under s. 24 of
Ordinance No. 27 of 1949, observed:
" Like all courts of appeal exercising general jurisdiction
in civil cases, the respondent has been constituted an
appellate court in words of the widest amplitude and the
legislature has not limited his jurisdiction by providing
that such exercise will depend on the existence of any
particular state of facts.
Thus, on a review of the provisions of the Act and the rules
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framed thereunder, it cannot be said that the authorities
mentioned in s. 9 of the Act, pass purely administrative
orders which are beyond the ambit of the High Court’s power
of supervision and control. Whether or not an
administrative body or
(1) [1940] F.C.R. 84, 102.
(2) [1952] S.C.R. 696, 704.
1259
authority functions as a purely administrative one or in a
quasi-judicial capacity, must be determined in each case, on
an examination of the relevant statute and the rule,,;
framed thereunder. The first contention raised on behalf of
the appellant must, therefore, be overruled.
Now, turning to the merits of the High Court’s order, it was
contended on behalf of the appellant that the High Court had
misdirected itself in holding that the Appellate Authority
had exceeded its jurisdiction in passing the order it did.
There is no doubt that if the Appellate Authority whose duty
it is to determine questions affecting the right to
settlement of a liquor shop, in a judicial or quasi-judicial
manner, acts in excess of its authority vested by law, that
is to say, the Act and the rules thereunder, its order is
subject to the controlling authority of the High Court. The
question, therefore, is whether the High Court was right in
holding that the Appellate Authority had exceeded its legal
power. In this connection, it is best to reproduce, in the
words of the High Court itself, what it conceived to be the
limits of the appellate
jurisdiction:
"In other words, it is not for the Appellate Authority to
make the choice, since the choice has already been made by
the officers below; and it is not only where the choice is
perverse or illegal and not in accordance with the Rules
that the Appellate Authority can interfere with the order
and make its own selected (sic.) out of the persons offering
tenders. If the Appellate bodies chose to act differently
and consider themselves free to make their own choice of the
person to be offered settlement irrespective of the
recommendations of the Deputy Commissioner or the Officer
conducting the settlement, the Appellate bodies will be
obviously exceeding the jurisdiction, which they possess
under the law or going beyond the scope of their authority
as contemplated by the Rules. "
In our opinion, in so circumscribing the powers of the
Appellate Authority, the High Court has erred. See in this
connection, the decision of this Court in Raman
160
1260
and Raman Ltd. v. The State of Madras(1). In that case,
this Court dealt with the powers of the State Government,
which had been vested with the final authority in the matter
of grant of stage carriage permits. This Court held that as
the State Government had been constituted the final
authority under the "Motor Vehicles Act, to decide as
between the rival claimants for permits, its decision could
not be interfered with under Art. 226 of the Constitution,
merely because the Government’s view may have been erro-
neous. In the instant cases, the Appellate Authority is
contemplated by s. 9 of the Act, to be the highest authority
for deciding questions of settlement of liquor shops, as
between rival claimants. The appeal or revision being
undefined and unlimited in its scope, the highest authority
under the Act, could not be deprived of the plenitude of its
powers by introducing considerations which are not within
the Act or the rules.
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It is true that the Appellate Authority should not lightly
set aside the selection made by the primary Authority, that
is to say, a selection made by a Subdivisions Officer or by
a District Collector, should be given due weight in view of
the fact that they have much greater opportunity to know
local conditions and local business people than the
Appellate Authority, even as the appeal courts are enjoined
not to interfere lightly with findings of fact recorded by
the original courts which had the opportunity of seeing
witnesses depose in court, and their demeanour while
deposing in court. But it is not correct to hold that
because the Appellate Authority, in the opinion of the High
Court, has not observed that caution, the choice made by it,
is in excess of its power or without jurisdiction.
The next ground of attack against the order of the High
Court, under appeal, was that the High Court had erred in
coming to the conclusion that there had been a failure of
natural justice. In this connection, the High Court has
made reference to the several affidavits filed on either
side, and the order in which they
(1) [1956] S.C.R. 256.
1261
had been filed, and the use made of those affidavits or
counter-affidavits. As already indicated, the rules make no
provisions for the reception of evidence oral or
documentary, or the hearing of oral arguments, or even for
the issue of notice of the hearing to the parties concerned.
The entire proceedings are marked by a complete lack of
formality. The several authorities have been left to their
own resources to make the best selection. In this
connection, reference may be made to the observations of
this Court in the case of New Prakash Transport Co., Ltd. v.
New Suwarna Transport Co., Ltd. (1). In that case, this
Court has laid down that the rules of natural justice vary
with the varying constitutions of statutory bodies and the
rules prescribed by the Act under which they function ; and
the question whether or not any rules of natural justice had
been contravened, should be decided not under any pre-
conceived notions, but in the light of the statutory rules
and provisions. In the instant case, no such rules have
been brought to our notice, which could be said to have been
contravened by the Appellate Authority. Simply because it
viewed a case in a particular light which may not be
acceptable to another independent tribunal, is no ground for
interference either under Art. 226 or Art. 227 of the
Constitution.
It remains to consider the last contention raised on behalf
of the appellants in these cases, namely, whether there has
been any error apparent on the face of the record, in the
order of the Appellate Authority, which would attract the
supervisory jurisdiction of the High Court. In this
connection, the following observations of the High Court are
relevant:
" But the most glaring error on face of the order of the
Appellate Authority is that it does not even refer to the
report of the Deputy Commissioner on which the Excise
Commissioner had so strongly relied. In my opinion, it was
under the Rules obligatory on the Appellate Authority to
consider that report before disposing of the appeal, and in
failing to do so, the officer
(1) [1957] S.C.R. 98.
1262
acted arbitrarily and in excess of his powers as an
Appellate Authority."
It may be that durinly the prolonged hearing of these cases
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before the High Court where, counsel for the different
parties placed their respective view-points after making
copious references to the documents, the ’,-High Court was
greatly impressed that the order of settlement in one case
(Murmuria shop), made by the Deputy Commissioner, as
confirmed by the Excise Commissioner, was the right one and
that the choice made by the Appellate Authority did not
commend itself to the High Court. It may further be that
the conclusions of fact of the High Court were more in
consonance with the entire record of the proceedings, and
that the choice made by the ultimate Revenue Authority, was
wrong. But, under the law as it stands, the High Court
exceeded its powers in pronouncing upon the merits of a
controversy which the Legislature has left to the discretion
of the Appellate Authority. But is that a mistake apparent
on the face of the record, as understood in the context of
Art. 226 of the Constitution ?
That leads us to a consideration of the nature of the error
which can be said to be an error apparent on the face of the
record which would be one of the grounds to attract the
supervisory jurisdiction of the High Court under Art. 226 of
the Constitution. The ancient writ of certiorari which now
in England is known as the order of certiorari, could be
issued on very limited grounds. These grounds have been
discussed by this Court in the cases of:
Parry & Co. v. Commercial Employee’s Association, Madras
(1),
Veerappa Pillai v. Raman and Raman Ltd., and
others (2),
Ibrahim Aboobaker v. Custodian General of Evacuee
Property (3),
T. C. Basappa v. T. Nagappa
All these cases have been considered by this Court in
(1) [1952] S.C.R. 519. (2) [1952] S.C.R. 583.
(3) [1952] S.C.R. 696. (4) [1955] 1 S.C.R. 250.
1263
the case of Hari Vishnu Kamath v. Syed Ahmad Ishaque and
others (1). Venkatarama Ayyar J., speaking for the full
Court, laid down four propositions bearing on the character
and scope of the writ of certiorari as established upon the
authorities. The third proposition out of those four, may
be stated in the words of that learned Judge, as follows:
" The Court issuing a writ of certiorari acts in exercise of
a supervisory and not appellate jurisdiction. One
consequence of this is that the Court will not review
findings of fact reached by the inferior Court or Tribunal,
even if they be erroneous."
While considering the fourth proposition whether the writ
can be issued in the case of a decision which was erroneous
in law, after considering the recent Authorities, the same
learned Judge, in the course of his judgment, at p. 1123,
has observed as follows:
" It may therefore be taken as settled that a writ of
certiorari could be issued to correct an error of law. But
it is essential that it should be something more than a mere
error: it must be one which must be manifest on the face of
the record."
The High Court appears to have been under the impression
that the expression "error apparent on the face of the
record" may also be in respect of findings of fact. For
example, in Civil Appeal No. 668 of 1957, relating to Jorhat
shop, the High Court has observed as follows:
" The Appellate Authority further reinforced its suspicion
by mentioning that Dharmeswar, his father and brother are
summoned in connection with some complaint, but that was a
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matter purely extraneous, ,to speak the least-and it could
have found that the complaint was filed after the
settlement. The complaint had no reference to any offence
of smuggling or the like as has been conceded. These were
errors ap. parent on the face of the record."
Later, in the course of the same judgment, it has been
observed as follows:
" This is another instance where I find that the
Excise Appellate Authority has misconceived its
(1) [1955] 1 S.C.R. 1104, 1121.
1264
powers as such and purported to decide the appeal either on
errors of record, speculations or on irrelevant
considerations, irrespective of all that happened in the
earlier stages of the matter. It starts with an apparent
error of record when it says that in the judgment of the
Excise Commissioner it finds ’a clear admission that Shri
Garela Kalita, father of Shri Dharmeswar Kalita, is a
suspected smuggler.’ In fact, there was no such admission.
It was held by the Commissioner on the contrary that ’the
learned Deputy Commissioner and members of the Advisory
Committee thought that the major son who bears an excellent
character should not be punished for the alleged sin of his
father’."
These excerpts from the judgment of the High Court are not
exhaustive, but only illustrative of the observation that
the High Court appears to have treated an error of fact on
the same footing as an error of law apparent on the face of
the record. The question, naturally, arises whether an
error of fact can be invoked in aid of the power of the High
Court to quash an order of a subordinate court or Tribunal.
The High Court would appear to have approximated it to an
’error apparent on the face of the record’ as used in r. 1
of 0. 47 of the Civil Procedure Code, as one of the grounds
for review of a judgment or order; but that is clearly not
the correct position. Ordinarily, a mistake of law in a
judgment or an order of a court, would not be a ground for
review. It is a mistake or an error of fact apparent on the
face of the record, which may attract the power of review as
contemplated by r. I of 0. 47. But is the power of a High
Court under Art. 226 of the Constitution, to interfere on
certiorari, attracted by such a mistake, and not the reverse
of it, in the sense that it is only an error of law apparent
on the face of the record, which can attract the supervisory
jurisdiction of a High Court ?
This question, so far as we know, has not been raised in
this form in this Court in any one of the previous decisions
bearing on the scope and character of the writ of
certiorari. It is, therefore, necessary to examine this
question directly raised in this batch of appeals,
1265
because, in each case, the High Court has been invited to
exercise its powers under Art. 226, to issue a writ of
certiorari on the specific ground that the orders impugned
before it, had been vitiated by errors apparent on the face
of the record-errors not of law but of fact.
The ancient case of the Queen v. James Bolton(1), is treated
as a landmark on the question of the power to issue a writ
or order of certiorari. That was a case in which an order
of justices for delivering up a house to parish officers,
under a statute, was called up on certiorari. Lord Denman
C. J. while discharging the rule, made the following
observations in the course of his judgment, which have been
treated as authoritative and good law even now:
" The first of these is a point of much importance, because
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of very general application ; but the principle upon which
it turns is very simple: the difficulty is always found in
applying it. The case to be supposed is one like the
present, in which the Legislature has trusted the original,
it may be (as here) the final, jurisdiction on the merits to
the magistrates below; in which this Court has no
jurisdiction as to the merits either originally or on
appeal. All that we can then do, when their decision is
complained of, is to see that the case was one within their
jurisdiction, and that their proceedings on the face of them
are regular and according to law. Even if their decision
should upon the merits be unwise or unjust, on these grounds
we cannot reverse it."
While dealing with the argument at the Bar, complaining of
the unsoundness of the conclusions reached by the
magistrates and the hardships to be caused by their
erroneous order, the Court made the following observations
which are very apposite to the facts and circumstances
disclosed in the instant appeals, and which all courts
entrusted with the duty of administering law, should bear in
mind, so that they may not be deflected from the straight
path of enforcing the law, by considerations based on
hardship or on vague
(1) [1841] (I) Queen’s Bench p. 66, 72, 76; 113 English
Reports
I054,1057,1058.
1266
ideas of what is sometimes described as justice of the
cause:
" Beyond this we cannot go. The affidavits, being before
us, were used OD the argument; and much was said of the
unreasonableness of the conclusion drawn by the magistrates,
and of the hardship on the defendant if we would not review
it, there being no appeal to the sessions. We forbear to
express any opinion on that which is not before us, the
-propriety of the conclusion drawn from the evidence by the
magistrates: they and they alone were the competent
authority to draw it; and we must not constitute ourselves
into a Court of Appeal where the statute does not make us
such, because it has constituted no other.
It is of much more importance to hold the rule of law
straight than, from a feeling of the supposed hardship of
any particular decision, to.. interpose relief at the
expense -of introducing a precedent full of inconvenience
and uncertainty in the decision of future cases"
The case of Reg v. Bolton (supra) was approved and followed
by the Privy Council in the case of the King v. Nat B 11
Liqutors, Limited (1). In that case their Lordships of the
Judicial Committee held that a conviction by a magistrate
for a non-indictable offence, cannot be quashed on
certiorari on the ground that the record showed that there
was no evidence to support the conviction, or that the
magistrate had misdirected himself in considering the
evidence. It was further laid down that the absence of
evidence did not affect the jurisdiction of the magistrate
to try the charge. In the course of their judgment, their
Lord. ships further observed that the law laid down in Reg
v. Bolton (supra) has never been seriously questioned in
England, and that the same rules were Applicable to other
parts of the Commonwealth, except in so far as they may have
been modified by statute. They also observed that the
decision in Reg v. Bolton (supra) undoubtedly is a landmark
in the history of certiorari, for it summarises in an
impeccable form the principles of its application........
But latterly, the rule
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(1) [1922] 2 A.C. 128.
1267
laid down in Bolton’s case, appears to have been slurred
over in some decided cases, in England, which purported to
lay down that a writ or order of certiorari could be
obtained only if the order impugned disclosed an error of
jurisdiction, that is to say, complete lack of jurisdiction
or excess of jurisdiction or the refusal to exercise
jurisdiction, and not to correct an error of law, even
though apparent on the face of the record. The question was
brought to a head in the case of Rex v. Northumberland
Compensation Appeal Tribunal (1). It arose out of an
application for an order of certiorari for quashing a
decision reached by the respondent Northumberland
Compensation Appeal Tribunal. Lord Goddard C. J. began his
judgment by observing that the point involved in the case
was " of the very greatest importance " which had "
necessitated the examination of a large number of cases and
consideration of the principles which apply to the doctrine
of certiorari ". He further observed that certiorari is a
remedy of a very special character. He, then, discussed the
object and scope of the writ of certiorari and the history
of the jurisdiction as exercised in the English courts. He
then dealt with the contention directly raised for the
determination of the court that an order of certiorari, can
issue only to remove a defect of jurisdiction and that it
does not extend to removing an order out of the way of the
parties on account of a mistake of law apparent on the face
of the record. The court then considered the relevant
authorities, and came to the conclusion that it was wrong to
hold that the ground of interference on certiorari, was only
an error or excess of jurisdiction, and that it did not
extend to correction of an error of law apparent on the face
of the record. The Lord Chief Justice then pointed out that
the examination of the authorities bearing on the exercise
of the power of certiorari, yielded the result that it was
open to the High Court to examine the record and to see
whether or not there was an error of law apparent on the
face of the record. The Lord Chief Justice concluded his
observations with these remarks:-
(1) [1951] 1 K.B. 71
161
1268
" The tribunal have told us what they have taken into
account, what they have disregarded, and the contentions
which they accepted. They have told us their view of the
law, and we are of opinion that the construction which they
placed on this very complicated set of regulations was
wrong. "
This decision was challenged, and on appeal, the Court of
Appeal dealt with this point in Rex v. Northumberland,
Compensation Appeal Tribunal(1). The Court of Appeal
affirmed the proposition laid down by the High Court that an
order for certiorari, can be granted and the decision of an
inferior court such as a statutory tribunal, quashed on the
ground of an error of law apparent on the face of the
record. Singleton L. J. in the course of his judgment,
observed that an error on the face of the proceedings, which
in that case was an error of law, has always been re.
cognized as one of the grounds for the issue of an order of
certiorari. Denning L. J. also, in the course of his
judgment, examined the question whether the High Court could
intervene to correct the decision of a statutory tribunal
which is erroneous in point of law. On an examination of
the authorities from ancient times, the Lord Justice made
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the following observations:-
" Of recent years the scope of certiorari seems to have been
somewhat forgotten. It has been supposed to be confined to
the correction of excess of jurisdiction, and not to extend
to the correction of errors of law ; and several judges have
said as much. But the Lord Chief Justice has, in the
present case, restored certiorari to its rightful position
and shown that it can be used to correct errors of law which
appear on the face of the record even though they do not go
to jurisdiction. I have looked into the history of the
matter, and find that the old cases fully support all that
the Lord Chief Justice said. Until about 100 years ago,
certiorari was regularly used to correct errors of law on
the face of the record. It is only within the last century
that it has fallen into disuse, and that is only because
there has, until recently, been little occasion for its
exercise.
(I) [1952] 1 K.B. 338.
1269
Now, with the advent of many new tribunals, and the plain
need for supervision over them, recourse must once again be
had to this well-tried means of control." The other Lord
Justice who took part in the hearing of the appeal, Morris
L. J. also examined that question and concluded as follows:-
" It is plain that certiorari will not issue as the, cloak
of an appeal in disguise. It does not lie in order to bring
up an order or decision for rehearing of the issue raised in
the proceedings. It exists to correct error of law where
revealed on the face of an order or decision, or
irregularity, or absence of, or excess of, jurisdiction
where shown."
I It is clear from an examination of the authorities of this
Court as also of the courts in England, that one of the
grounds on which the jurisdiction of the High Court on
certiorari may be invoked, is an error of law apparent on
the face of the record and not every error either of law or
fact, which can be corrected by a superior court, in
exercise of its statutory powers as a court of appeal or
revision.
So far as we know, it has never been contended be. fore this
Court that an error of fact, even though apparent on the
face of the record, could be a ground for interference by
the court exercising its writ jurisdiction. No ruling was
brought to our notice in support ,of the proposition that
the court exercising its powers under Art. 226 of the
Constitution, could quash an order of an inferior tribunal,
on the ground of a mistake of fact apparent on the face of
the record.
But the question still remains as to what is the legal
import of the expression ’error of law apparent on the face
of the record.’ Is it every error of law that can attract
the supervisory jurisdiction of the High Court, to quash the
order impugned ? This court, as observed above, has settled
the law in this respect by laying down that in order to
attract such jurisdiction, it is essential that the error
should be something more than a mere error of law; that it
must be one which is manifest on the face of the record. In
this respect, the law in India and the law in England, are,
therefore, the same. It is also clear, on an examination of
all
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the authorities of this Court and of those in England,
referred to above, as also those considered in the several
judgments of this Court, that the Common Law writ, now
called order of certiorari, which was also adopted by our
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Constitution, is not meant to take the place of an appeal
where the statute does not confer a right of appeal. Its
purpose is only to determine, on an examination of the
record, whether the inferior tribunal has exceeded its
jurisdiction or has not proceeded in accordance with the
essential requirements of the law which it was meant to
administer. ,Mere formal or technical errors, even though of
law, will not be sufficient to attract this extraordinary
jurisdiction.
The principle underlying the jurisdiction to issue a writ or
order of certiorari, is no more in doubt, but the real
difficulty arises, as it often does, in applying the
principle to the particular facts of a given case. In the
judgments and orders impugned in these appeals, the High
Court has exercised its supervisory jurisdic note in respect
of errors which cannot be said to be errors of law apparent
on the face of the record. If at all they are errors, they
are errors in appreciation of documentary evidence or
affidavits, errors in drawing -inferences or omission to
draw inferences. In other words, those are errors which a
court sitting as a court of appeal only, could have examined
and, if necessary, corrected. As already indicated, the
Appellate Authority had unlimited jurisdiction to examine
and appreciate the evidence in the exercise of its appellate
or revisional jurisdiction. Section 9(3) of the Act, gives
it the power to pass such orders as it thought fit. These
are words of very great amplitude. The jurisdiction of the
Appellate Authority, to entertain the appeals, has never
been in doubt or dispute. Only the manner of the exercise
of its appellate jurisdiction was in controversy, It has not
been shown that in exercising its powers, the Appellate
Authority disregarded any mandatory provisions of the law.
The utmost that has been suggested, is that it has not
carried out certain Executive Instructions. For example, it
has been said that the Appellate Authority did not observe
the
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instructions that tribal people have to be given certain
preferences, or, that persons on the debarred list, like
,smugglers, should be kept out (see p. 175 of the Manual).
But all these are only Executive Instructions which have no
statutory force. Hence, even assuming, though it is by no
means clear, that those instructions have been disregarded,
the non-observance of those instructions cannot affect the
power of the Appellate Authority to make its own selection,
or affect the validity of the order passed by it.
The High Court, in its several judgments and orders, has
scrutinized, in great detail, the orders passed by the
Excise Authorities under the Act. We have not thought it
fit to examine the record or the orders below in any detail,
because, in our opinion, it is not the function of the High
Court or of this Court to do so. The jurisdiction under
Art. 226 of the Constitution is limited to seeing that the
judicial or quasi-judicial tribunals or administrative
bodies exercising quasijudicial powers, do not exercise
their powers in excess of their statutory jurisdiction, but
correctly administer the law within the ambit of the statute
creating them or entrusting those functions to them. The
Act has created its own hierarchy of officers and Appellate
authorities, as indicated above, to administer the law. So
long as those Authorities function within the letter and
spirit of the law, the High Court has no concern with the
manner in which those powers have been exercised. In the
instant cases, the High Court appears to have gone beyond
the limits of its powers under Arts. 226 and 227 of the
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Constitution.
In one of the cases, the High Court has observed that though
it could have interfered by issuing a writ under Art. 226 of
the Constitution, they would be content to utilize their
powers of judicial superintendence under Art. 227 of the
Constitution vide its judgment dated July 31, 1957, in
appeals relating to Murmuria shop (Civil Appeals Nos. 669
and 670 of 1957). In exercise of that power, the High Court
set aside the order of the Appellate Authority, and directed
it to re-hear the appeal ’according to law in the light of
the principles indicated in this judgment’.
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A Constitution Bench of this Court examined the scope of
Art. 227 of the Constitution in the case of Waryam Singh and
another v. Amarnath a-rid another (1). This Court, in the
course of its judgment, made the following observations at
p. 571 :
" This power of superintendence conferred by article 227 is,
as pointed out by Harries C. J. in Dalmia Jain Airways Ltd.
v. Sukumar Mukherjee (2), to be exercised most sparingly and
only in appropriate cases in order to keep the Subordinate
Courts within the bounds of their authority and not for
correcting mere errors."
It is, thus, clear that the powers of judicial interference
under Art. 227 of the Constitution with orders of judicial
or quasi-judicial nature, are not greater than the powers
under Art. 226 of the Constitution. Under Art. 226, the
power of interference may extend to quashing an impugned
order on the ground of a mistake apparent on the face of the
record. But under Art. 227 of the Constitution, the power
of interference is limited to seeing that the tribunal
functions within the limits of its authority. Hence,
interference by the High Court, in these cases, either under
Art. 226 or 227 of the Constitution, was not justified.
After having dealt with the common arguments more or less
applicable to all the cases, it remains to consider the
special points raised on behalf of the respondents in Civil
Appeal No. 672 of 1957, relating to the Tinsukia country
spirit shop. It was strenuously argued that the appeal was
incompetent in view of the fact that the rule issued by the
High Court, was still pending, and that this Court does not
ordinarily, entertain an appeal against an interlocutory
order. It is true that this Court does not interfere in
cases which have not been decided by the High Court, but
this case has some extraordinary features which attracted
the notice of this Court when special leave to appeal was
granted. As already stated, the shop in question was
settled with the appellants by the Excise Commissioner, and
his order was upheld by the Appellate Authority.
Accordingly, the appellants,
(1) [1954] S.C.R. 565. (2) A.I. R. (195i) Cal. 193.
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had been put in possession of the shop on June 7, 1957. The
High Court, while issuing the rule, passed an order on the
stay application, which, as already indicated, had been
misunderstood by the District Excise authorities, and the
appellants were dispossessed and the respondents I and 2 put
back in possession, without any authority of law. This was
a flagrant interference with the appellants’ rights arising
out of the settlement made in their favour by the highest
revenue authorities. The High Court had not and could not
have authorized the dispossession of the persons rightfully
in possession of the shop. The appellants brought this
flagrant abuse of power to the notice of the High Court
several times, but the High Court felt unduly constrained to
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permit the wrong to continue. We heard the learned counsel
for the respondents at great length as to whether he could
justify the continuance of this undesirable and unfortunate
state of affairs. It has to be remembered that the
appellants, as a result of fortuitous circumstances, had
been deprived of the possession of the shop during the best
part of the financial year 1956-57 The appellants had been
deprived of the fruits of their hard-won victory in the
revenue courts, without any authority of law, and the High
Court failed to right the wrong in time, though moved
several times. In these circumstances, we found it
necessary to hear both the parties on the merits of the
orders passed by the Commissioner of Excise and the
Appellate Authority, in favour of the appellants, against
which, the respondents had obtained a rule. After having
heard both sides, we have come to the conclusion that no
grounds have been made out for interference by the High
Court, under its powers under arts. 226 and 227 of the
Constitution. This case shares the common fate of the other
cases before us, of having run through the entire gamut of
the hierarchy created under the Act, read along with the
amending Act and the rules thereunder. We do not find any
grounds in the orders of the Excise Authorities which could
attract the supervisory jurisdiction of the High Court,
there being no error of law apparent on the face of the
record,
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or a defect of jurisdiction in the Authorities whose orders
have been impugned in the- High Court. We would, however,
like to make it clear that we are interfering with the
interlocutory order passed by the High Court in this case
because of its unusual and exceptional features. It is
clear that our decision on the main points urged in the
other appeals necessarily leads to the inference that, even
if all the allegations made by the respondents in their
petition before the Assam High Court are accepted as true,
there would be no case whatever for issuing a rule. Indeed,
the respondent found it difficult to resist the appellant’s
argument that, if the other appeals were allowed on the
general contentions raised by the appellants, the dismissal
of his petition before the Assam High Court would be a
foregone conclusion. It is because of these special
circumstances that we have decided to interfere with the
interlocutory order in this case in the interests of
justice.
As a result of these considerations, the appeals must be
allowed and the orders passed by the High Court in the
several cases, set aside. On the question of costs, we
direct that the appellants in each case, should get their
costs here and in the High Court, except the appellant in
Civil Appeal No. 670, who has failed on the main point
raised on his behalf, and who, therefore, must bear his own
costs.
Appeals allowed.
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