Commissioner of Income Tax and Ors Vs Chhabil Dass Agarwal on 8 Aug 2013

Posted on July 24, 2022 by ShadesOfKnife

A division bench of Supreme Court held as follows,

From Para 15,

15. Before discussing the fact proposition, we would notice the principle of law as laid down by this Court. It is settled law that non-entertainment of petitions under writ jurisdiction by the High Court when an efficacious alternative remedy is available is a rule of self-imposed limitation. It is essentially a rule of policy, convenience and discretion rather than a rule of law. Undoubtedly, it is within the discretion of the High Court to grant relief under Article 226 despite the existence of an alternative remedy. However, the High Court must not interfere if there is an adequate efficacious alternative remedy available to the petitioner and he has approached the High Court without availing the same unless he has made out an exceptional case warranting such interference or there exist sufficient grounds to invoke the extraordinary jurisdiction under Article 226. (See: State of U.P. vs. Mohammad Nooh, AIR 1958 SC 86; Titaghur Paper Mills Co. Ltd. vs. State of Orissa, (1983) 2 SCC 433; Harbanslal Sahnia vs. Indian Oil Corpn.
Ltd., (2003) 2 SCC 107; State of H.P. vs. Gujarat Ambuja Cement Ltd., (2005) 6 SCC 499).
16. The Constitution Benches of this Court in K.S. Rashid and Sons vs. Income Tax Investigation Commission, AIR 1954 SC 207; Sangram Singh vs. Election Tribunal, Kotah, AIR 1955 SC 425; Union of India vs. T.R. Varma, AIR 1957 SC 882; State of U.P. vs. Mohd. Nooh, AIR 1958 SC 86 and K.S. Venkataraman and Co. (P) Ltd. vs. State of Madras, AIR 1966 SC 1089 have held that though Article 226 confers a very wide powers in the matter of issuing writs on the High Court, the remedy of writ absolutely discretionary in character. If the High Court is satisfied that the aggrieved party can have an adequate or suitable relief elsewhere, it can refuse to exercise its jurisdiction. The Court, in extraordinary circumstances, may exercise the power if it comes to the conclusion that there has been a breach of principles of natural justice or procedure required for decision has not been adopted.
(See: N.T. Veluswami Thevar vs. G. Raja Nainar, AIR 1959 SC 422; Municipal Council, Khurai vs. Kamal Kumar, (1965) 2 SCR 653; Siliguri Municipality vs. Amalendu Das, (1984) 2 SCC 436; S.T. Muthusami vs. K. Natarajan, (1988) 1 SCC 572; Rajasthan SRTC vs. Krishna Kant, (1995) 5 SCC 75; Kerala SEB vs. Kurien E. Kalathil, (2000) 6 SCC 293; A. Venkatasubbiah Naidu vs. S. Chellappan, (2000) 7 SCC 695; L.L. Sudhakar Reddy vs. State of A.P., (2001) 6 SCC 634; Shri Sant Sadguru Janardan Swami (Moingiri Maharaj) Sahakari Dugdha Utpadak Sanstha vs. State of Maharashtra, (2001) 8 SCC 509; Pratap Singh vs. State of Haryana, (2002) 7 SCC 484 and GKN Driveshafts (India) Ltd. vs. ITO, (2003) 1 SCC 72).

From Para 19,

19. Thus, while it can be said that this Court has recognized some exceptions to the rule of alternative remedy, i.e., where the statutory authority has not acted in accordance with the provisions of the enactment in question, or in defiance of the fundamental principles of judicial procedure, or has resorted to invoke the provisions which are repealed, or when an order has been passed in total violation of the principles of natural justice, the proposition laid down in Thansingh Nathmal case, Titagarh Paper Mills case and other similar judgments that the High Court will not entertain a petition under Article 226 of the Constitution if an effective alternative remedy is available to the aggrieved person or the statute under which the action complained of has been taken itself contains a mechanism for redressal of grievance still holds the field. Therefore, when a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation.

Commissioner of Income Tax and Ors Vs Chhabil Dass Agarwal on 8 Aug 2013

Citations : [2013 AD SC 8 620], [2013 CTR SC 261 113], [2013 ITR SC 357], [2013 JLJR 4 35], [2013 JT SC 11 387], [2013 PLJR 4 179], [2013 SCALE 10 326], [2014 SCC 1 603], [2013 TAXMAN SC 217 143], [2013 SCC ONLINE SC 717], [2013 TAXMANNCOM SC 36]

Other Sources :

https://indiankanoon.org/doc/51987756/

https://www.casemine.com/judgement/in/5609af2ce4b0149711415ba2

Whirlpool Corporation Vs Registrar of Trade Marks Mumbai and Ors on 26 Oct 1998

Posted on July 23, 2022 by ShadesOfKnife

Landmark judgment from a division bench of the Apex Court.

From Paras 14 and 15,

14. The power to issue prerogative writs under Article 226 of the Constitution is plenary in nature and is not limited by any other provision of the Constitution. This power can be exercised by the High Court not only for issuing writs in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari for the enforcement of any of the Fundamental Rights contained in Part III of the Constitution but also for “any other purpose”.
15. Under Article 226 of the Constitution, the High Court, having regard to the facts of the case, has a discretion to entertain or not to entertain a writ petition. But the High Court has imposed upon itself certain restrictions one of which is that if an effective and efficacious remedy is available, the High Court would not normally exercise its jurisdiction. But the alternative remedy has been consistently held by this Court not to operate as a bar in at least three contingencies, namely, where the writ petition has been filed for the enforcement of any of the Fundamental Rights or where there has been a violation of the principle of natural justice or where the order or proceedings are wholly without jurisdiction or the vires of an Act is challenged. There is a plethora of case- law on this point but to cut down this circle of forensic whirlpool, we would rely on some old decisions of the evolutionary era of the constitutional law as they still hold the field.

Whirlpool Corporation Vs Registrar of Trade Marks Mumbai and Ors on 26 Oct 1998 (CM Ver)

Citations : [1998 SCC 8 1], [1999 AIR SC 22], [1998 AIR SC 3345], [1999 BOMCR SC 2 70], [1998 JT 7 243], [1998 SCALE 5 655], [1998 SUPREME 8 176], [1998 AIR SCW 3345]

Other Sources :

https://www.casemine.com/judgement/in/575fd361607dba63d7e6e044

UOI and Ors Vs Tantia Construction Pvt Ltd on 18 Apr 2011

Posted on July 23, 2022 by ShadesOfKnife

A division bench held that an alternative remedy is not an absolute bar to the invocation of the writ jurisdiction of the High Court or the Supreme Court and that without exhausting such alternative remedy, a writ petition would not be maintainable.

From Paras 27 and 28,

27. Apart from the above, even on the question of maintainability of the writ petition on account of the Arbitration Clause included in the agreement between the parties, it is now well-established that an alternative remedy is not an absolute bar to the invocation of the writ jurisdiction of the High Court or the Supreme Court and that without exhausting such alternative remedy, a writ petition would not be maintainable. The various decisions cited by Mr. Chakraborty would clearly indicate that the constitutional powers vested in the High Court or the Supreme Court cannot be fettered by any alternative remedy available to the authorities. Injustice, whenever and wherever it takes place, has to be struck down as an anathema to the rule of law and the provisions of the Constitution. We endorse the view of the High Court that notwithstanding the provisions relating to the Arbitration Clause contained in the agreement, the High Court was fully within its competence to entertain and dispose of the Writ Petition filed on behalf of the Respondent Company.
28. We, therefore, see no reason to interfere with the views expressed by the High Court on the maintainability of the Writ Petition and also on its merits. The Special Leave Petition is, accordingly, dismissed, but without any order as to costs.

UOI and Ors Vs Tantia Construction Pvt Ltd on 18 Apr 2011

Citations : [2011 SCC 5 697], [2011 AIOL 293], [2011 SUPREME 3 294], [2011 SCALE 4 745], [2011 RCR CIVIL SC 3 821], [2011 SCC CIV 3 117], [2011 LW 3 691], [2011 ARBLR SC 2 115], [2012 PLJR 1 455], [2011 JCR SC 3 8], [2011 UJ 4 2210], [2011 KLJ 2 15], [2011 AWC SC 5 4568], [2011 SCR 5 397], [2011 JT SC 5 59]

Other Sources :

https://indiankanoon.org/doc/609434/

https://www.casemine.com/judgement/in/5609aeffe4b01497114154a4

MS Radha Krishan Industries Vs State of Himachal Pradesh on 20 Apr 2021

Posted on July 22, 2022 by ShadesOfKnife

A division bench of Apex Court held the following principles in regards to approaching a High Court under Article 226 of the Constitution.

From Para 27,

27 The principles of law which emerge are that :
(i) The power under Article 226 of the Constitution to issue writs can be exercised not only for the enforcement of fundamental rights, but for any other purpose as well;
(ii) The High Court has the discretion not to entertain a writ petition. One of the restrictions placed on the power of the High Court is where an effective alternate remedy is available to the aggrieved person;
(iii) Exceptions to the rule of alternate remedy arise where (a) the writ petition has been filed for the enforcement of a fundamental right protected by Part III of the Constitution; (b) there has been a violation of the principles of natural justice; (c) the order or proceedings are wholly without jurisdiction; or (d) the vires of a legislation is challenged;
(iv) An alternate remedy by itself does not divest the High Court of its powers under Article 226 of the Constitution in an appropriate case though ordinarily, a writ petition should not be entertained when an efficacious alternate remedy is provided by law;
(v) When a right is created by a statute, which itself prescribes the remedy or procedure for enforcing the right or liability, resort must be had to that particular statutory remedy before invoking the discretionary remedy under Article 226 of the Constitution. This rule of exhaustion of statutory remedies is a rule of policy, convenience and discretion; and
(vi) In cases where there are disputed questions of fact, the High Court may decide to decline jurisdiction in a writ petition. However, if the High Court is objectively of the view that the nature of the controversy requires the exercise of its writ jurisdiction, such a view would not readily be interfered with.

MS Radha Krishan Industries Vs State of Himachal Pradesh on 20 Apr 2021

Citations : [2021 SCC ONLINE SC 334]

Other Sources :

https://indiankanoon.org/doc/62362537/

https://www.casemine.com/judgement/in/60806fd6125abdf1726ab6fb

Shades of Knife

True Colors of a Vile Wife

Tag: Article 226 – No need to Exhaust the other remedies at Lower Courts in Exceptional Cases

Commissioner of Income Tax and Ors Vs Chhabil Dass Agarwal on 8 Aug 2013

Whirlpool Corporation Vs Registrar of Trade Marks Mumbai and Ors on 26 Oct 1998

UOI and Ors Vs Tantia Construction Pvt Ltd on 18 Apr 2011

MS Radha Krishan Industries Vs State of Himachal Pradesh on 20 Apr 2021