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State of Haryana v. Haryana Co-Operative Transport Ltd. & Ors.

Supreme Court of India · 2 December 1976 · [1977] 2 S.C.R. 306

Court
Supreme Court of India
Decided
2 December 1976
Reported as
[1977] 2 S.C.R. 306
Result
Dismissed
Length
8 pages
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PETITIONER:
STATE OF HARYANA
Vs.
RESPONDENT:
HARYANA CO-OPERATIVE TRANSPORT LTD. & ORS.
DATE OF JUDGMENT02/12/1976
BENCH:
CHANDRACHUD, Y.V.
GOSWAMI, P.K.
CITATION:
1977 AIR 237 1977 SCR (2) 306
1977 SCC (1) 271

ACT

Constitution of India--Articles 226-227--Mentioning

wrong writ--Writ of quo warranto-Must be specifically

prayed--Whether can be challenged in collateral

proceedings--Industrial Disputes ACt 1947--Sec. 9(1), final-

ity of award of Labour Court--Whether can be challenged by a

writ petition--Challenge to appointment of the Judge of

Labour Court.

HEADNOTE

The first respondent, a Co-operative Transport Society

terminated the services of respondent 3 and 4. The State of

Punjab referred the dispute arising out of the dismissal of

respondents 3 to 4 under s. 10 of the Industrial Disputes

Act 1947 to the Labour Court that was presided over by Mr.

Das. On Mr. Das’s retirement Shri Hans Raj Gupta was ap-

pointed as the Presiding Officer of the Court. Mr. Gupta

gave an award directing the reinstatement of respondents 3

and 4 with 50 per cent back wages from the date of their

dismissal until the date of reinstatement.

The first respondent being aggrieved by the award filed

a writ petition in the High Court under Articles 226 and 227

of the Constitution praying that the award given by second

respondent be set aside on the ground, inter alia, that he

was not qualified to become the Presiding Officer under s.

7(3) of the Act since he did not hold any judicial office in

India for not less than 7 years.

The contention of respondent No. 2 was that he held such

a judicial office because he worked as Upper Division

Clerk-cum-Head Clerk, Assistant Settlemeat Officer and

Registrar of the Pensions Appeals Tribunals. The contention

that he held judicial office was not pressed before the High

Court and in this Court by the State. The State Government,

however. supported the award on the plea that Mr. Gupta’s

appointment cannot be challenged in collateral proceedings

filed in the High Court for challenging the award.

Re Toronto & Co. v. City of Toronto 46 Dominion Law

Reports 547; Bhaskara Pillai and Anr. v. State [1950] 5DLR

Travailcore-Cochin 382 and Queen Empress v. Ganga Ram ILR 16

All. 136 distinguished.

Dismissing the appeal,

HELD: 1. Considering the nature and course of proceedings in

the instant it is impossible to hold that the challenge to

Mr. Gupta’s appointment was made in a collateral proceeding.

The appointment of Mr. Gupta could not have been challenged

before him. The challenge to his appointment having been

made by writ petition under Articles 226 and 227 of the

Constitution to which Mr. Gupta was impleaded as a party-

respondent, the challenge was made directly in a substantive

proceeding and not in a collateral proceeding. Since he

was impleaded in the writ petition he had a clear and right-

ful opportunity to defend kid appointment. [311 C-E]

2. The mere circumstance that the first respondent did

not in so many words ask for a writ of quo warranto cannot

justify the argument that the appointment was being chal-

lenged collaterally in a proceeding taken to challenge the

award. On the averments in the writ petition it is clear

that the main and real attack on the award was the ineligi-

bility of Shri Gupta to occupy the post of a Judge of a

Labour Court in the discharge of whose functions the award

was rendered by him. [311 G-H, 312A]

307

3. The relief of certiorari asked for by the writ peti-

tion was certainly inappropriate but the High Court was

also invited to issue such other suitable writ, order or

direction as it deemed fit and proper in the circumstances

of the case. There is no magic in the use of a formula. The

facts necessary for challenging the appointment are stated

clearly in the writ petition and the challenge to the ap-

pointment is expressly made on the ground that the officer

was not qualified to hold the post. [312A-B]

4. The finality of the orders of the Labour Court con-

templated by s. 9(1) although widely worded must be given a

limited meaning so as to bar the jurisdiction of civil

courts in the ordinary exercise of their powers. It is

impossible to construe the provisions in derogation of the

remedies provided by Article 226 and 227 of the Constitu-

tion. [313D-E]

Bezparua (G.C.) v. State of Assam A.J.R.--1954 Assam

161, Jagannath Vinayak Kale v. Ahmadi--[1958] II L.L.J. 50

(Bom.) and Mewar Textile Mills Ltd. v. Industrial

Tribunal--A.I.R. 1951 Raj 161, approved.

JUDGMENT

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1164 of 1970.

(Appeal by Special Leave from the Order dated the 5th Sep-

tember 1969 of the Punjab & Haryana High Court in S.C.A. No.

197 of 1968)

Naunit Lal, Girish Chandra and R.N. Sachthey, for the appel-

lant. S.B. Wad, for respondent No. 1.

The Judgment of the Court was delivered by

CHANDRACHUD, J. The 1st respondent is a co-operative

transport society carrying on transport business at Kaithal,

District Karnal, State of Haryana. The Society terminated

the services of respondents 3 and 4 who were working with it

as conductor and driver, respectively. The State of Punjab,

on June 22, 1964 referred the dispute arising out of the

dismissal of respondents 3 and 4, under s. 10 of the Indus-

trial Disputes Act (14 of 1947) for the adjudication of the

Labour Court, Rohtak. That Court was then presided over by

Shri Jawala Dass. On Shri Dass’s retirement, Shri Hans Raj

Gupta was appointed on June 4, 1965, as the presiding

Officer of the Court. The reference was thereafter heard

by him and on April 16, 1966 he gave an award directing the

reinstatement of respondents 3 and 4 with 50% backwages from

the date of their dismissal until the date of reinstatement.

The Presiding Officer of the Labour Court is the 2nd re-

spondent to this appeal.

Being aggrieved by the award, the 1 st respondent filed

Writ Petition No. 1575 of 1966 in the High Court of Punjab

and Haryana under arts. 226 and 227 of the Constitution,

praying that the award given by the 2nd respondent be set

aside on the ground, inter alia, that he was not qualified

to hold the post of a Judge of the Labour Court, and,

therefore, the award was without jurisdiction. The Writ

petition having been allowed by a Division Bench by its

judgment dated March 26, 1968 the State of Haryana has filed

this appeal by special leave. The Presiding Officer of

the Labour Court was impleaded to the Writ Petition as the

2nd respondent.

308

The only question for decision in this appeal is whether

Shri Hans Raj Gupta who gave his award as the presiding

Officer of the Labour Court was qualified for being appoint-

ed as a Judge of the Labour Court. Section 7(1) of the

Industrial Disputes Act provides that the appropriate Gov-

ernment may constitute one or more Labour Courts for the

adjudication of Industrial disputes relating to any matter

specified in the Second Schedule to the Act. A Labour

Court, under s.7(2), shall consist of one person only to be

appointed by the Government. Sub-section (3) of s. 7 reads

thus:

"(3 ) A person shall not be qualified for

appointment as the presiding officer of a

Labour Court, unless--

(a) he is, or has been, a Judge of a High

Court; or

(b) he has, for a period of not less than

three years, been a District Judge or an

Additional District Judge; or

(c) he has held the office of the chairman

or any other member of the Labour Appellate

Tribunal constituted under the Industrial

Disputes (Appellate Tribunal) Act, 1950 (48 of

1950), or of any Tribunal, for a period of not

less than two years; or

(d) he has held any judicial officer in India

for not less than seven years; or

(e) he has been the presiding officer of a

Labour Court constituted under any Provincial

Act or State Act for not less than five

years".

It was common ground in the High Court that Shri Gupta did

not satisfy the qualifications laid down in any of the

clauses (a), (b), (c) and (e) of s. 7(3). It was, however,

urged in the High Court, in the first instance, that Shri

Gupta had held a judicial offical in India for not less

than seven years and was, therefore, qualified for being

appointed as a Judge of the Labour Court under clause (d) of

s.7 (3 ). This argument was made before the learned Chief

Justice of the High Court who, while hearing the Writ Peti-

tion singly, felt that the question raised was of public

importance. He, therefore, referred the matter to a Divi-

sion Bench. The contention that Shri Gupta was qualified

to hold the office of a Judge of the Labour Court under

clause (d) of s.7(3) was, however, given up by the State

before the Division Bench. Before us, the learned counsel

for the appellant, the State of Haryana, rightly did not

pursue the unstatable contention.

Shri Hans Raj Gupta was initially working as an Upper

Division Clerk-cure-Head Clerk. Thereafter, he worked from

January 14, 1947 to October 19, 1954 as the Registrar to the

Pensions Appeals Tribunal, Jullundur Cantonment. After

relinquishing that post, he was reverted as an Upper Divi-

sion Clerk-cum-Head Clerk, which office he held till Febru-

ary 17, 1957. Subsequentiy, he was appointed as an Assistant

Settlement officer in which post he worked fill September

1962. It is obvious, and requires no clever argument to

show, that Shri Gupta was holding clerical posts which, with

some courtesy may

309

be described as posts calling for and furnishing administra-

tive experience. As an Upper Division Clerk, even if the

duties of that post were combined with those of the Head

Clerk, Shri Gupta was nowhere in the shadow of a judicial

office. As a Registrar of the Pensions Appeals Tribunal,

Jullundur Cantonment, he was admittedly discharging adminis-

trative functions. A circumstance which seems to have

blurred the perception of the State Government perhaps was

that the Pensions Appeals Tribunal was a judicial or quasi-

judicial body and since Shri Gupta was closely associated

with it, does not matter in what capacity, he could be said

to hold a judicial office. Administrative proximity with

judicial work was regarded as an excuse good enough to

elevate the administrator into a holder of judicial office.

This was a wholly misconceived approach to a matter of some

moment for, were it so, many a judicial clerk would be

qualified to be appointed to a judicial office. Having

never held any judicial office, Shri Gupta totally lacked

judicial experience and was incompetent to discharge the

functions of a Judge of the Labour Court. His appointment

was therefore illegal and his award without jurisdiction.

We are happy to note that the State Government did not take

the time of the DiVision Bench of he High Court and of this

Court in arguing an impossible proposition.

Nevertheless, the award given by Shri Gupta as the

Presiding Officer of the Labour Court is defended by the

State Government on the Plea that Shri Gupta’s appointment

cannot be challenged in a collateral proceeding filed in

the High Court for challenging the award. Reliance is placed

in support of this submission on the following passage in

Cooley’s "A Treatise on the Constitutional Limitations"

(8th edn; vol. 2; pages 1255-1358);

"An officer de jure is one who, possessing the

legal qualifications, has been lawfully chosen

to the office in question, and has fulfilled

any conditions precedent to the performance of

its duties. By being thus chosen and.

observing the precedent conditions, such a

person becomes of right entitled to the pos-

session and enjoyment of the office, and the

public, in whose interest the office is creat-

ed, is entitled of right to have him perform

its duties. If he is excluded from it, the

exclusion is both a public offense and a

private injury.

An officer de lure may be excluded from

his office by either an officer de facto or an

intruder. An officer de facto is one who by

some color of right is in possession of an

office and for the time being performs its

duties with public acquiescence though having

no right in fact.His color of right may come.

from an election or appointment made by some

officer or body having colourable but no

actual right to make it; or made in such

disregard of legal requirements as to be

ineffectual in law; or made to fill the place

of an officer illegally removed; or made in

favor of a party not having

310

the legal qualifications; or it may come from

public acquiescence in the officer-holding

without performing the precedent conditions,

or holding over under claim of right after his

legal right has been terminated; or possibly

from public acquiescence alone when accompa-

nied by such circumstances of official reputa-

tion as are calculated to induce people,

without inquiry, to submit to or invoke offi-

cial action on the supposition that the

person claiming the office is what he assumes

to be. An intruder is one who attempts to

perform the duties of an office without au-

thority of law, and without the support of

public acquiescence.

No one is under obligation to recognise

or respect the acts of an intruder, and for

all legal purposes they are absolutely void.

But for the sake of order and regularity,

and to prevent confusion in the conduct of

public business and in security of private

rights, the acts of officers de facto are not

suffered to be questioned because of the want

of legal authority except by some direct

proceeding instituted for the purpose by the

State of by some one claiming the office de

lure, or except when the person himself

attempts to build up some right, or claim

some privilege or emolument, by reason of

being the officer which he claims to be. In

all other cases the acta of an officer de

facto are as valid and effectual, while he is

suffered to retain the office, as though he

were an officer by right, and the same legal

consequences will flow from them for the

protection of the public and of third parties.

This is an important principle, which finds

concise expression in the legal maxim that the

acts of officers de facto cannot be questioned

collaterally."

Equally strong reliance was placed by the State Govern-

ment on a decision of the Ontario Supreme Court in Rs

Toronto N. Co. City of Tornoto (1) in which, after an exami-

nation of several American and other decisions, Meredith,

C.J.O., observed:

"That it is not open to attack, in a

collateral proceeding, the status of a de

facto Judge, having at least a colourable

title to the office, and that his acts are

valid, is clear, I think, on principle and on

authority, and it is also clear that the

proper proceeding to question his right to the

office is by quo warranto information." (PP.

551-552)

Learned counsel for the State, Shri Naunit Lal, further

drew our attention to a decision of the High Court of Tra-

vancore-Cochin in Bhaskera Pillai and Ant. rs. State(2)

which, relying upon the passage in Cooley’s Constitutional

Limitations and the Canadian case, held that the appoint-

ment of the Chief Justice of that Court could not be ques-

tioned collaterally in a proceeding for leave. to appeal to

the Supreme Court against the decisions rendered by him.

Some sustenance was also sought to the same argument from a

decision of a Full Bench of

(1) 46 Dominion Law Report 547.

(2) (1950) 5, D.L.R. Travancore-Cochin 382.

311

the Allahabad High Court in Queen Empress vs. Garsa Sam(1)

in which it was held that where a person had in fact been

exercising all the functions of a Judge of the High Court,

the appointment even if apparently ultra vires must never-

theless be presumed, in the absence of fuller information,

to have been legally made in the exercise of some power,

unknown to the Court, vested in the Secretary of State for

India.

Broadly, the starting point and the primary basis of

these decisions is the passage from Cooley’s Constitutional

Limitations, which we have extracted above. That passage

says and means that the acts of officers de facto cannot be

suffered to be questioned for want of legal authority except

by some direct proceeding. This important principle,

according to Cooley, finds concise expression in the legal

maxim that the acts of officers de facto cannot be allowed

to be questioned collaterally.

Considering the nature and course of proceedings in the

instant case, it seems to us impossible to hold that the

challenge to Shri Gupta’s appointment was made in a collat-

eral proceeding. That Shri Gupta’s appointment was not

challenged in the very proceeding before him does not meet

the point and in any case, if the proper mode to challenge

the validity of an appointment to a public office is by a

petition for the writ of quo warranto, the Labour Court over

which Shri Gupta presided was hardly an appropriate forum

for challenging the appoinment of its Presiding Officer. The

1st respondent, the Haryana Co-operative Transport Ltd.,

against whom Shri Gupta gave the award, filed a writ peti-

tion in the High Court of Punjab and Haryana to challenge

the award on the ground that Shri Gupta was not qualified to

hold the office of a Judge of the Labour Court and, there-

fore, the award given by him was without jurisdiction. The

challenge to Shri Gupta’s appointment having been made by a

writ petition under arts. 226 and 227 of the Constitution,

to which Shri Gupta was impleaded as a partyrespondent, the

challenge was made directly in a substantive proceeding and

not collaterally. The writ petition was filed mainly

with a view to challenge Shri Gupta’s appointment on the

ground that he was not qualified to fill the post to which

he was appointed. Having been impleaded to the writ peti-

tion he had a clear and rightful opportunity to defend his

appointment. The proceedings by way of a writ petition

were taken not collaterally for attacking an appointment to

a judicial office in a proceeding primarily intended for

challenging a so-called judicial decision, but the proceed-

ing was taken principally and predominantly for challenging

the appointment itself. None of the decisions, nor indeed

the passage in Cooley’s Treatise, is therefore, any answer

to the prayer that the award be declared to be ultra vires

on the ground that the officer who gave it was not qualified

to hold that post in the exercise of whose functions the

award was given.

The mere circumstance that the 1st respondent did not in

so many words ask for the writ of quo warranto cannot justi-

fy the argument that the appointment was being challenged

collaterally in a proceeding takes to challenge the award.

Considering the averments in the writ petition, it seems to

us clear that the main and real attack on the award

(3) I.L.R. 16. All. 136.

4---1546 SCI/76

312

was the ineligibility of Shri Gupta to occupy the post of a

Judge of the Labour Court, in the discharge of whose func-

tions the award was rendered by him. The relief of certio-

rari asked for by writ petition was certainly inappropriate

but by clause (c) of paragraph 16, the High Court was

invited to issue such other suitable writ, order or direc-

tion as it deemed fit and proper in the circumstances of

the case. There is no magic in the use of a formula. The

facts necessary for challenging Shri Gupta’s appointment are

stated clearly in the writ petition and the challenge to

his appointment is expressly made on the ground_ that he

was not qualified to hold the post of a Judge of the Labour

Court.

It must be mentioned that in the Canadian case of re

Toronto vs. City of Toronto (supra) the contention was that

the Ontario Railway and Municipal Board was a "Superior

Court" within the meaning of s. 96 of the British North

America Act and its members, not having been appointed by

the Governor General, had no jurisdiction to exercise the

powers conferred upon the Board by the Act by which it was

created. This argument was repelled firstly on the ground

that the Board was not a Court but an administrative body

and secondly on the ground that there was nothing to show

that the members of the Board were not appointed by the

Governor General.

In the Travancore Cochin case the Chief JustiCe whose

appointment was challenged was qualified to hold that post

since he had held the office of a Judge of the Madras High

Court though he had retired from that office on attaining

the age of 60. The question really turned on the construc-

tion of art. 376 (2) of the Constitution which confers power

on the President is determine the period for which a Judge

of a High Court in any Indian State corresponding to any

State specified in part B of the First Schedule holding

office immediately before the commencement of the Constitu-

tion may continue to hold that office. Besides, the Chief

Justice’s appointment was challenged collaterally in appli-

cations for leave to appeal to the Supreme Court against the

judgments pronounced by him.

The Full Bench judgment of the Allahabad High) rested on

the presumption, in the absence of fuller information, that

the appointment must be deemed to have been made in the

exercise of some power vested in the Secretary of State for

India even if such power was unknown to the Court. Deliver-

ing the judgment of the Court, Edge, C.J. observed at page

157: "Being in ignorance as to whether or not any power

existed under which Mr, Justice Burkitt may have been

lawfully appointed to act as a Judge of this court, we hold

that the presumption that he was duly appointed, which

arises from the fact of his having acted as a Judge of the

Court since November 1892, has not been re-butted. This

may seem to be a lame and impotent conclusion for a Court of

Justice to arrive at concerning the validity of the appoint-

ment of one of its acting Judges, but our lack of necessary

information,ion as to the appointment, coupled with the

circumstances of the case, permits of our arriving at no

other."

Learned counsel for the State of Haryana contends that

there is one more impediment in the Court holding that Shri

Gupta was not

313

qualified under s. 7(3) of the Act to be appointed as a

Judge of the Labour Court. Reliance is placed in support of

this argument on s. 9(I) of the Act which reads thus:

"9. Finality of orders constituting

Boards, etc.--(1) No order of the appropriate

Government or of the Central Government

appointing any person as the chairman or any

other member of a Board or Court or as the

presiding officer of a Labour Court, Tribunal

or National Tribunal shall be called in ques-

tion in any manner; and no act or proceeding

before any Board or Court shall be called in

question in any manner on the ground merely of

the existence of any vacancy in, or defect in

the constitution of, such Board or Court."

It is true that s.9(1) is worded so widely and generally

that it could cover any and every challenge to the appoint-

ment to the particular posts therein mentioned. But it is

impossible to construe the provision as in derogation of

the remedies provided by arts. 226 and 227 of the Consti-

tution. The rights conferred by those articles cannot be

permitted to be taken away by a broad and general provision

in the nature of s.9(1) of the Act. The words "in any

manner" which occur in s.9(1) must, therefore, be given a

limited meaning so as to. bar the jurisdiction of civil

courts, in the ordinary exercise of their powers, to enter-

tain a challenge to appointments mentioned in the sub-sec-

tion. The High Court of Assam(1), Bombay(2) and Rajasthan(3)

have taken, like the High Court of Punjab and Haryana in the

instant case, a correct view of the scope and meaning of

s.9(1) of the Act by limiting its operation to ordinary

powers of the civil Courts. The rights conferred by arts.

226 and 227 can be abridged or taken away only by an appro-

priate amendment of the Constitution and their operation

cannot be whittled down by a provision like the one con-

tained in s.9( 1 ) of the Act. Accordingly, it is open to

the High Courts in the exercise of their writ jurisdiction

to consider the validity of appointment of any person as a

chairman or a member of a Board or Court or as a presiding

officer of a Labour Court, Tribunal, or National Tribunal.

If the High Court finds that a person appointed to any of

these offices is not eligible or qualified to hold that

post, the appointment has to be declared invalid by

issuing a writ of quo warranto or any other appropriate writ

or direction. To strike down usurpation of office is the

function and duty of High Courts is the exercise of their

constitutional powers under arts. 226 and 227.

In the result we affirm the judgment of the High Court

and dismiss this appeal. We are thankful,. to Shri Wad for

assisting the Court as amicus.

S.R. Appeal

dismissed.

(1) Bozbarua (G.C.) v. Sate of Assam----1954 Assam 161.

(2) lagannath Vinayak Kale v. Ahmedi--(1958) II L.L.J. 50

(Bom.)

(3) Mewer Textile Mills Ltd. v. Industrial.

Tribunal--A.I.R. 1951 Raj. 1961

314

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