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1969 Supreme(SC) 378

SUPREME COURT OF INDIA
M. HIDAYATULLAH, C.J.I., J.C. SHAH, V. RAMASWAMI, G.K. MITTER AND A.N. GROVER, JJ.
The State of Bihar, Petitioner
Versus
The Union of India and another, Respondents.
Civil Misc. Petns. Nos. 512, 513, 574, 575, 578, 579, 581, 582, 583, 584, 587, 588, 605, 606, 609, 610, 1466 and 1467 of 1969; Original Suits Nos. 3 of 1967, 1 and 3 to 9 of 1968, D/- 19-9-1969.
Advocates appeared
Mr. Niren De, Attorney-General for India and Dr. V. A. Sayid Muhammad, Senior Advocate (Mr. B. D. Sharma, Advocate, with them) for Defendant No. 1 (In all Suits).
Mr. D. N. Gupta, Advocate, for Defendant No. 2 (In Suits Nos. 3 to 8 of 1968).
Mr. D. N. Mukherjee, Advocate, for Defendant No. 2 (In Suits Nos. 3 of 1967, 1 and 9 of 1968).
Mr. D. P. Singh, Advocate for Plaintiff (In Suits No. 3 of 1967, 1, 3, 5 and 6 of 1968).
Mr. D. Goburdhun, Advocate for Plaintiff (In Suits Nos. 4 and 7 of 1968).
Mr. U. P. Singh, Advocate for Plaintiff (In Suit No. 8 of 1968).
Mr. R. C. Prasad, Advocate, for Plaintiff (In Suit No. 9 of 1968).
.

Advocates:
B.D.SHARMA, D.GOVERDHAN CHARY, D.N.GUPTA, D.N.MUKHERJI, D.P.Singh, H.P.SINGH, NIREN DEY, R.C.Prasad, V.A.SEYID MUHAMMAD

Headnote:

Constitution of India,1950 – Article 226 ,227 and 131 - Code of Civil Procedure,1908 - Section 80 - Government of India Act, 1935 - Section 204 - Project - Applications - Construction work - Group of applications can be divided into two parts - Object of one group is to get plaints in nine suits filed in this Court rejected while that of other group is to stay hearing of suits - Suits are all of same pattern in each of which the State figures as plaintiff - Union of India is first defendant in all of them while second defendant in six is Hindustan Steel Ltd., and in three others Indian Iron and Steel Company Ltd - Cause of action in all suits is of same nature - Briefly stated plaintiff s case in all suits is that "due to the negligence or deliberate action of servants of both defendants there was a short delivery or iron and steel material ordered by plaintiff to various sites in State of Bihar in connection with construction work of Gandak Project - In each case there is a prayer for a decree for a specific sum of money to be passed either against first defendant "or alternatively against second defendant" – Held, There question arose between certain persons who were permanent employees of Government of State of Rajasthan and later placed at disposal of State Electricity Board and one of the questions was whether appellant Board could be held to be State as defined - It will be noted that under Article 12 all local or other authorities within territory of India or under control of Government of India are States for purposes of Part III which defines and deals with Fundamental Rights enshrined in Constitution - No reason was shown as to why enlarged definition of State given in Parts III and IV of Constitution would be attracted to Article 131 of Constitution and in Court opinion a body like Hindustan Steel Ltd. cannot be considered to be "a State" for the purpose of Article 131 of Constitution - On view Court take plaints must be returned for purpose of presentation to courts having jurisdiction over disputes - Let plaints be returned for presentation to proper court after endorsing on them date of presentation of plaints in this Court and date on which they were returned - Plaints returned – Order accordingly.

Judgment

MITTER, J. : This group of applications can be divided into two parts. The object of one group is to get the plaints in nine suits filed in this Court rejected while that of the other group is to stay the hearing of the suits. The suits are all of the same pattern in each of which the State of Bihar figures as the plaintiff. The Union of India is the first defendant in all of them while the second defendant in six is Hindustan Steel Ltd., and in three others the Indian Iron and Steel Company Ltd. The cause of action in all the suits is of the same nature. Briefly stated the plaintiff s case in all the suits is that "due to the negligence or deliberate action of the servants of both defendants there was a short delivery or iron and steel material ordered by the plaintiff to various sites in the State of Bihar in connection with the construction work of the Gandak Project". As the goods were in all cases booked by rail for despatch to the project site both defendants are sought to be made liable for short delivery, the first defendant as the owner of the railway and the second defendant as the consignor of the goods under contract with the State of Bihar for supply of the material. In each case there is a prayer for a decree for a specific sum of money to be passed either against the first defendant "or alternatively against the second defendant". Normally all suits of this kind are instituted all over India in different courts beginning from the courts of the lowest jurisdiction to the High Courts exercising original jurisdiction. The only distinguishing feature of this series of suits from others of every day occurrence in different courts is that a State is the plaintiff in each case. In all suits or a similar nature which are filed in courts other than this court, a notice under S. 80 of the Code of Civil Procedure is an essential pre-requisite. No such notice has been served in any of these cases. The application were set down for trial of three issues sought to be raised by way of preliminary issues. They are as follows :

1. Whether the alleged cause or causes of action in this suit are within the scope of Art. 131 of the Constitution?

2. Whether this suit is within the scope of Art. 131 of the Constitution in view of a non-State, viz., defendant No. 2, Having been made a party to the suit?

3. Whether the suit is barred by the provisions of S. 80 C. P. C. for want of notice to defendant No. 1?

2. The question before this Court is, whether the dispute in these cases is within the purview of that article (quoted in the foot-note)*. It must be noted that the article confers jurisdiction on this Court to the exclusion of all other courts in any dispute between the parties mentioned therein. There is however an overriding provision that such jurisdiction is subject to the provisions of the Constitution and our attention was drawn to a few of these provisions where the disputes specified are to be adjudicated upon in entirely different manner. The most important features of Art. 131 is that it makes no mention of any party other than the Government of India or any one or more of the States who can be arrayed as a disputant. The other distinguishing feature is that the Court is not required to adjudicate upon the disputes in exactly the same way as ordinary courts of law are normally called upon to do far upholding the rights of the parties and enforcement of its orders and decisions. The words in the article "if and in so far as the dispute involves any question (whether of law or fact) on which the existence or extent of a legal right depends" are words of limitation on the exercise of that jurisdiction. These words indicate that the disputes should be in respect of legal rights and not disputes of a political character. Moreover, this Court is only concerned to give its decision on questions of law or of fact on which the existence or extent of a legal right claimed depends. Once the Court comes to its conclusion on the ca








































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