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IN THE HIGH
COURT OF CALCUTTA
Appearances : S. K. Ghosh & Abhijit Basu for the Appellants/Petitioners.
Jayanta Mitra, Ranjan Deb, D. N. Mitra & R. Banerjee for the Respondent.
JUDGMENT
1. This appeal is directed against a judgment and order dated 18th March,
1999 passed by a learned Single Judge of this court in AST No. 641 of
1999 whereby and whereunder the writ application filed by the appellants
herein had been dismissed on the ground of existence of alternative remedy
as also lack of territorial jurisdiction on the part of this court.
2. The respondent herein had filed an application before the Monopolies
and Restrictive Trade Practices Commission, Delhi, inter alia, on the
ground that the appellant herein has taken recourse to unfair trade practices.
3. In the said proceeding an application for injunction has been filed
which had been granted by an order dated 8th March, 1999. Questioning
the said order a writ application was filed and upon dispensing with the
requirement of rule 27 of the writ Rules framed by this court, the learned
trial Judge passed interim order in favour of the writ petitioner on 11th
March, 1999. The respondents having been noticed, raised preliminary questions
as regards the maintainability of the writ application.
4. Both the aforementioned contentions as had been raised by the respondents
herein, as indicated hereinbefore, had found favour with the learned trial
Judge as a result whereof the writ application was dismissed.
5. Mr. Soumen Ghosh, the learned advocate appearing on behalf of the appellant,
had principally raised three contentions in support of this appeal. The
learned counsel submitted that although under section
55 of the Monopolies and Restrictive Trade Practices Act, 1969 (hereinafter
'the Act') a forum of appeal before the Supreme Court of India has been
created, the same has its own limitations. In that view of the matter,
contends Shri Ghosh, as the appellant herein has raised a question of
violation of the principles of natural justice by the Commission, this
writ application could not have been thrown out on the ground of existence
of alternative remedy. In support of the aforesaid contention strong reliance
has been placed on Baburam Prakash Chandra Maheswari v. Anlorin Zilla
Parishad, AIR 1969 SC 556 and L. Hirday Narain v. ITO AIR 1971 SC 33.
The learned counsel submits that in a case of this nature, normally the
Supreme Court does not exercise its jurisdiction and in support of the
said contention strong reliance has been placed in the decision reported
in Hindustan Lever Ltd. v. Colgate Palmolive (I) Ltd. [1998] 28 CLA 39/AIR
1998 SC 526. It has further been contended that the Commission acted illegality
in passing the interim order of injunction as a result whereof, the entire
scheme of the appellant shall fail and the application filed by the respondent
herein would be allowed in its entirety. The learned counsel has relied
upon Dr. Smt. Kuntesh Gupta v. Management of Hindu Kanya Mahabidyalya
AIR 1987 SC 2186, Union of India v. Oswal Woollen Mills Ltd. AIR 1964
SC 1264, AIR 1997 SC 2838 and Altos India Ltd. v. Suresh Goyal [1995]
4 SCC 51. As regards the finding of lack of territorial jurisdiction of
this court, the learned counsel submitted that only because the application
had been filed at Delhi and the impugned order has been passed by the
Commission at Delhi, the same, by itself, would not disentitle this court
from entertaining the writ application as a part of cause of action arose
within the jurisdiction of this court. In support of the said contention
the reliance has strongly been placed upon AIR 1983 Cal. 257 and AIR 1983
Cal. 307.
6. Mr. Jayanta Mitra, the learned senior counsel appearing on behalf of
the respondent No. 3, on the other hand, submitted that a bare perusal
of section 55 would clearly
show that an order passed under section
12A of the Act is also appealable in terms whereof, the Commission
is empowered to pass an order of injunction. The learned counsel pointed
out relying on or on the basis of the decision of the Apex Court in Mahindra
& Mahindra Ltd. v. UOI reported in AIR 1979 SC 789 that as section
100 of the Code of Civil Procedure, 1908 ('the Code') has been incorporated
by reference in the said Act, the old provisions thereof shall apply despite
the fact that the same has undergone an amendment in the year 1976.
7. There cannot be any doubt whatsoever that power of judicial review
of this court is not inhibited by the fact that there exists an alternative
remedy. However, the court, in the event of existence of an alternative
remedy may refuse to entertain a writ application. Such a restriction
is a self-imposed one on the part of the High Courts. It is also true
that the court may not refuse to exercise its discretion to entertain
a writ application on the ground of availability of alternative remedy,
if an order has been passed without jurisdiction or the same has been
passed in violation of the principles of natural justice or the vires
of the Act is in the question. In this case, the petitioner has filed
the writ application, inter alia, on the ground that on the date fixed
for final argument, the respondent herein had filed a supplementary affidavit
but despite adjournment having been sought for, the same had been refused.
8. In this connection, our attention has been drawn to the statements
made in paragraph 10 of the stay application wherein the order of the
Commission has been reproduced which is to the following effect :
"Learned senior advocate for the respondent stated that he may be given
an opportunity to meet the facts highlighted in the further affidavit
on behalf of the applicant and given to his junior advocate on 25th February,
1999. His contention is that certain new facts have been highlighted in
the affidavit and was given to his junior after he had concluded his arguments.
Learned senior advocate for the applicant/complainant states that there
were new facts in the affidavit but are in continuation of his averments
in his rejoinder affidavit. Be that as it may, the learned advocate has
been given full opportunity of meeting the new facts if there are any
and making his submissions today. Arguments have been heard and the order
is reserved."
9. The Commission, therefore, has dealt with the question of denial of
opportunity to the appellant to meet the new points allegedly raised by
the respondent No. 3. In other words, principles of natural justice has
not been violated. It is, thus not a case where violation of the principles
of natural justice is admitted or is apparent on the face of the records.
10. Assuming for the sake of argument that violation of the principles
of natural justice has taken place, and thus, this court may exercise
its jurisdiction under article 226 of the Constitution of India, a question
would arise as to whether keeping in view the facts and circumstances
of the case it would entertain the writ application.
11. The concept of principles of natural justice has undergone a radical
change. It is not in every case, that the High Courts would entertain
a writ application only on the ground that violation of principles of
natural justice has been alleged. The Apex Court, in State Bank of Patiala
v. S. K. Sharma reported in [1996] 3 SCC 364 has clearly held that a person
complaining about the violation of the principles of natural justice must
show causation of a prejudice against him by reason of such violation.
The Apex Court has held that the principles of natural justice, may be
said to have been violated which require an intervention when no hearing,
no opportunity or no notice has been given. Reference in this connection
may also be made to Managing Director, Electronic Corpn. of India v. B.
Karmakar reported in AIR 1994 SC 1076. The question as to the effect of
non-grant of enough opportunity to the learned counsel for the appellant
by the Commission to meet the allegations made in the supplementary affidavit
requires investigation. As to what extent the appellant has suffered prejudice
would be a question which would fall for a decision of a higher court.
Where such a disputed question arises, in the considered opinion of this
court, a writ application will not be entertained only because violation
of natural justice has been alleged and more so, in a case of this nature
where such a contention can also be raised before the highest court of
India. A distinction has to be borne in mind between a forum of appeal
which is presided by an administrative body and the Apex Court as an appellate
court.
12. In our opinion, while exercising or refusing to exercise its jurisdiction
to entertain writ application on the ground of existence of alternative
remedy, the nature of the forum will also have an important role to play.
13. The further question which would fall for consideration before a higher
court would be as to whether completely new facts had been brought in
before the Commission, upon which reliance had been placed by the respondents
herein and the same had a bearing on the order passed by the Commission
which is impugned in the writ application.
14. In this view of the matter, we are of the opinion that although violation
of the principles of natural justice may not stand as a bar but this court
in entertaining a writ application, in a case of this nature, may not
do so. Furthermore, it has to be borne in mind that the Act is a complete
Code in itself and appeal from its order lies to the Apex Court of this
country on a question of law. Such a remedy must be held to be a more
efficacious, speedy and cheaper one. In the matter of issuance of a writ
of certiorari the scope of writ is very limited than a court which can
entertain an appeal on a question of law.
15. In this case, as noticed herein before, the question as to whether
there has been a violation of principle of natural justice is a disputed
one.
16. While hearing an appeal, the appeal court can consider all aspects
of the matter. With a view to do complete justice the Apex Court can exercise
its jurisdiction under section 107 of the Code and grant relief which
the Commission could grant.
17. An appeal, as is well known, is continuation of the original proceeding.
18. As has rightly been pointed out by Mr. Mitra, in view of the decision
of the Apex Court in Mahindra & Mahindra Ltd. (supra) the provision
of section 100 of the Code shall apply in the instant case and clause
(c) thereof embraces within its fold a question raised by the appellant
herein in the writ application.
19. In Hindustan Lever case (supra) the Apex Court did not lay down any
law that no appeal lies against an interlocutory order but in the facts
and circumstances of this case only because a final order had not been
passed and merely an interim order had been passed, the Apex Court refused
to exercise its discretion. It, in fact, by entering into the merit of
the dispute must be held to have entertained the appeal which, thus, the
Supreme Court itself considered maintainable in terms of section
55. In that decision also in paragraph 17, the Supreme Court has referred
to section 100 of the CPC, as it stood before the 1976 amendment.
20. In the aforementioned back drop the decisions relied upon by Mr. Ghosh,
may be considered.
21. In Oswal Woollen Mills Ltd. (supra) the Apex Court was considering
a case under Import Control Order. It was held that the only appropriate
order to make in such cases is to issue notice to the respondents and
make it returnable within a short period. The Supreme Court deprecated
grant of interim relief straightaway and left it to the respondents to
move the court to vacate the interim order which may jeopardise the public
interest. Such is not the position here.
22. In Dr. Smt. Kuntesh Gupta (supra) as it was held that the vice-chancellor
had no power of review, the said order was a nullity and in that view
of the order, the writ application was held to be maintainable.
23. In Baburam Prakash Chandra Maheswari (supra) the Apex Court held that
the existence of a statutory remedy does not affect the jurisdiction of
the High Court to issue a writ. But the existence of an adequate legal
remedy is a thing to be taken into consideration in the matter of granting
writs and where such a remedy exists it will be a sound exercise of discretion
to refuse to interfere in a writ petition unless there are good grounds
therefor. The said decision, therefore, does not assist the learned counsel
for the appellant.
24. In L. Hirday Narain (supra) the writ application was entertained and
the Apex Court merely held that when the writ application had remained
pending for a number of years, the same should not be thrown out on the
existence of alternative remedy. Such is not the position here. In this
case no rule was issued and ad interim order was granted upon waiving
the formalities, as is required in terms of rule 27 of the Rules framed
by this court relating to matters under article 226 of the Constitution.
However, at the first opportunity, the respondents had taken preliminary
objections as regards the maintainability of the writ application which
found favour with the learned trial Judge.
25. In Altos India Ltd. (supra), the Apex Court merely held that it was
incumbent upon the Commission to first decide the question of maintainability
on which objection was raised placing reliance on a Full Bench decision
of the Commission itself. The aforementioned decision, in the backdrop
of the case, cannot be said to have any application whatsoever. It had
further noticed that the question as regard the new amendment was pending
consideration before a larger Bench. However, it is well-settled that
unless and until a decision of the Supreme Court is over-ruled, the same
would be a law within the meaning of article 141 of the Constitution and
the practice of the court is to follow the Supreme Court decisions which
hold the field.
26. In Nirma Industries Ltd. v. DG (I&R) reported in [1997] 25 CLA
182/AIR 1997 SC 2382 the Apex Court appears to have been entered into
the merit of a matter relating to unfair trade practice. Keeping in view
the fact that this court does not intend to enter into the merit of the
matter on the ground of existence of alternative remedy, we are of the
opinion that the said decision cannot be brought in aid for the purpose
of this case.
27. In view of our findings aforementioned, we are of the view that it
is not necessary for this court to go into the question as to whether
this court has the territorial jurisdiction to entertain the writ application
or not. The learned trial Judge, in arriving at the said finding, does
not appear to have been assigned any reason whatsoever.
28. Another aspect of the matter cannot be lost sight of. The learned
trial Judge has exercised its discretion in not entertaining the writ
application by the appellant. Can in the facts and circumstances of this
case be said that such discretion has been exercised wrongly or the same
is perverse in nature. The answer to the aforementioned question must
be rendered in negative. It is now well settled principle of law that
the appeal court would not interfere with an order passed by the learned
trial Judge using his discretion in the matter until and unless it is
found that such discretion has been exercised improperly and/or in contravention
of any law. Only because an appeal court may take a different view the
same by itself, would not be a ground to interfere with the order of the
first court.
29. Having found that the learned trial Judge has exercised his discretion
which cannot be said to be an unsound one, or perverse, or had been exercised
contrary to any principle of law, we are of the opinion that exercise
of such discretion need not be interfere with.
30. We are, therefore, of the opinion that no interference is called for
with the order passed by the learned trial Judge. For the reasons aforementioned,
this appeal is treated as on the day's list and is dismissed.
However, in the facts and circumstances of this case, there will be no
order as to costs.
Appeal dismissed.
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