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1980 Supreme(SC) 448

SUPREME COURT OF INDIA
V.R. KRISHNA IYER AND A.D. KOSHAL, JJ.
M/s. Central Coal Fields Ltd. and another, Petitioners
Versus
M/s. Jaiswal Coal Co. and others, Respondents.
Civil Misc. Petn. No. 9853 of 1980
Decided on 7-10-1980.

Headnote:

Constitution of India,1950 – Article 39A - Firm doing business in coal - Suit for recovery of an astronomical sum -Respondent, claiming to be a firm doing business in coal, brought a suit before District Court for a few ambitious crores of rupees by way of damages against petitioner herein, a public-sector corporation owned by Central Government and engaged in mining coal and making it available to community - Adventurous litigant, according to Corporation, instituted present suit for recovery of an astronomical sum hoping that by this strategy it could do business by abusing process of court, pressurise State to settle with it and thus obtain a large profit through speculative business of a suit - Its investment was nil because it took care to exaggerate claim to such an unlimited figure that court-fee was colossal enough to give it advantage of being treated a pauper - Court-fee was nearly Rs. 3 million, sufficiently ballooned to enable the petitioner to be regarded as an indigent person who thereby was relieved of affixing any court-fee whatever - Whether such an inflated price for access to court justice is just or legal - Whether decree for three crores of rupees without hearing other side, should have been passed or not – Held, Within months he heard parties, considered merits and pronounced his award - Both parties sought and got final justice through this award within a year of arriving in Court - Had Court contented ourselves with only point in dispute - And by time case had its leisurely life in District Court, its long lap in High Court and its last chapter in this Court decades would have gone by - Fortunately, step we took yielded rich dividents, so much so subject of dispute is now being silenced for ever - Only other point on which a brief argument has been made relates to costs and the half share of the Arbitrators fee which we had directed in beginning should be paid by respondents (plaintiffs) - Contends that he should not be subjected to costs - He is a pauper and has lost his suit - Petitioners (defendants) have saved enormous court-fee of nearly Rs. 30 lakhs by avoiding High Court - Moreover, as a good litigant, though belatedly, he is not pressing any objection to award - Learned Attorney General virtually left matter to Court as costs are discretionary - Order accordingly.

JUDGMENT

KRISHNA IYER, J. : — "All is well that ends well" and that way we have something happy to deliver in this short order. Even so, this litigation has lessons to teach and promises to keep and surely bears testimony to many a bane of the Indian litigative process.

2. The respondent, claiming to be a firm doing business in coal, brought a suit before the District Court for a few ambitious crores of rupees by way of damages against the petitioner herein, a public-sector corporation owned by the Central Government and engaged in mining coal and making it available to the community. This adventurous litigant, according to the Corporation, instituted the present suit for recovery of an astronomical sum hoping that by this strategy it could do business by abusing the process of the court, pressurise the State to settle with it and thus obtain a large profit through the speculative business of a suit. Its investment was nil because it took care to exaggerate the claim to such an unlimited figure that the court-fee was colossal enough to give it the advantage of being treated a pauper. While it is deplorable that some speculators gamble in litigation using the stratagem of pauperism, it is more deplorable that the culture of the magna carta notwithstanding the anglo-Indian forensic system - and currently free Indias court process - should insist on payment of court-fee on such a profiteering scale without correlative expenditure on the administration of civil justice that the levies often smack of sale of justice in the Indian Republic where equality before the law is a guaranteed constitutional fundamental and the legal system has been directed by Art. 39A" to ensure that opportunities for securing justice are not denied to any citizen by reason of economic ... disabilities." The right of effective access to justice has emerged in the Third World countries as the first among the new social rights what with public interest litigation, community based actions and pro bono publico proceedings. "Effective access to justice can thus be seen as the most basic requirement - the most basic human right - of a system which purports to guarantee legal rights." #1

# 1. M. Cappelltti, Rabels Z (1976) 669 at 672.

3. In the present case, having regard to the suit claim, the court-fee was nearly Rs. 3 million, sufficiently ballooned to enable the petitioner to be regarded as an indigent person who thereby was relieved of affixing any court-fee whatever. The State, and failing it some day, the court, may have to consider, from the point of view of policy and constitutionality, whether such an inflated price for access to court justice is just or legal. We make these observations because in the later stages of this litigation the Central Government itself felt the pinch and soughtto circumvent the payment of court-fee as we will presently see. The suit was posted for the respondent-Corporation to file its written statement but procrastination on the part of one or other of the parties has become so pathological that neither Government, nor its public sector offspring is an exception to asking for adjournments with confident insouciance. The respondent-Corporation dawdled although it had good ground to seek more time to collect distant material and process it into a meaningful defence statement. The trial court beeved by the plea for more adjournments, rejected the request at one stage and decreed the suit for around Rs. 3 crores against the Corporation without so much as even the presentation of its written statement. The Central Government and the Corporation were shocked at this over-speed of the trial judge heedless of the need for a reasonable time to plead its case. In a society of stagnation, speed in action produces surprises. The slow motion phenomenon is of course shared by all the three instrumentalities under the Constitution although laws delays in court alone have been highlighted before the public. Be that as it may, when the Corporat






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