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1992 Supreme(SC) 793

SUPREME COURT OF INDIA
J.S. VERMA AND S.P. BHARUCHA, JJ.
State of M.P., Appellant
Versus
Ajay Singh and others; Respondents.
Civil Appeals Nos. 4734 and 4735 of 1992 (arising out of Spl. Leave Petn. (Civil) Nos. 10520 and 10858 of 1992)
Decided on 2-11-1992.
AND
State of M.P., Appellant
Versus
M/s. A. & A. Enterprises, and others, Respondents.
Advocates appeared
Mr. Shanti Bhushan, Sr. Advocate, Mr. N.C. Jain, Advocate General, Mr. S.K. Agnihotri and Mr. Ashok K. Singh, Advocates, with him, for Appellant; Mr. Kapil Sibal and Mr. N.S. Kale, Sr. Advocates, Mr. A.P. Dhamia, Mr. S.K. Jain, Mr. Manmohan, Mr. S. Atreya, Mr. Pradeep Agrawal, Mr. Basant Bhai Mehta, Mr. Ravindra Srivastava, Mr. R.N. Srivastava, Mr. B.V. Desai and Mr. S.V. Deshpande, Advocates, with them, for Respondents.
* Misc. Petns. Nos. 481 and 533 of 1992, D/-8-5-1992. (Madh Pra).

Advocates:
A.P.Dhamija, ASHOK SINGH, B.V.DESAI, BASANT MEHTA, KAPIL SIBAL, MANMIT SINGH JAMVAL, N.C.JAIN, N.S.KALKE, PRADIP AGRAWAL, R.N.SRIVASTAVA, S.Atreya, S.K.AGNIHOTRI, S.K.JAIN, S.R.SHRIVASTAVA, S.V.DESHPANDEY, SHANTI BHUSHAN

Headnote:

Constitution of India – Article 226 – Commissions of Inquiry Act, 1952 – Section 3 and 5 – General Clauses Act – Section 21 – Industrial Disputes Act – Section 10 – Allegations and Rumours – Illegalities – Power Agency – Material Miscellaneous Petition filed in public interest by Kailash Joshi, then leader of the Opposition in Madhya Pradesh Vidhan Sabha and now a Cabinet Minister in Madhya Pradesh relating to affairs of Churhat Childrens Welfare Society and lottery conducted by M. P. High Court by its judgment issued a direction for setting up an independent high power agency to hold an inquiry into affairs of said Society of which respondent Ajay Singh was one of office bearers – In compliance of that direction State Government passed a resolution and also issued notification of same having effect of setting up a Commission of Inquiry consisting of Justice S.T, Ramalingam, a Judge of Madras High Court to investigate into the affairs of said Society and Lottery conducted by it – Held, Power was not available to State of Madhya Pradesh in the facts of the present case to appoint any other person replacing Justice as sole member of Commission of Inquiry – Power General Clauses Act or even was also not available for this purpose, for the reasons given earlier notification appointing Justice G.G. Sohani and notification appointing Justice Kamlakar Choubey were both invalid. It is not unlikely that Justice G.G. Sohani may have resigned forming the same opinion when his appointment was challenged – State of Madhya Pradesh did not choose to reflect and reconsider legality of its action in spite of resignation of Justice G.G. Sohani and it continued to move in wrong direction by making another invalid appointment of Justice Kamlakar Choubey – Appeals dismissed.

JUDGMENT

VERMA, J.:—The petitioner-State of Madhya Pradesh in both these petitions seeks leave to appeal under Article 136 of the Constitution against the common judgment and order dated 8-5-1992 of the High Court of Madhya Pradesh in Miscellaneous Petitions Nos. 481 of 1992 and 533 of 1992 under Article 226 of the Constitution. The High Court has allowed both these writ petitions.

2. The material facts are these. In Miscellaneous Petition No. 3909 of 1987 filed in public interest by Kailash Joshi, then leader of the Opposition in Madhya Pradesh Vidhan Sabha and now a Cabinet Minister in Madhya Pradesh, relating to the affairs of the Churhat Childrens Welfare Society and lottery conducted by it, the M. P. High Court by its judgment dated 20-1-1989* issued a direction for setting up an independent high power agency to hold an inquiry into the affairs of the said Society of which respondent No. 1 Ajay Singh was one of the office bearers. In compliance of that direction, the State Government passed a resolution on 24-2-1989 and also issued notification of the same date having the effect of setting up a Commission of Inquiry consisting of Justice S.T, Ramalingam, a Judge of the Madras High Court to investigate into the affairs of the said Society and the lottery conducted by it. The resolution and the notification are as under :-

"Bhopal, the 24th February, 1989

No. F. 1-3-89-I(i)-E.C. - Whereas the High Court of Madhya Pradesh in its order dated the 20th January, 1989 in M.P. No. 3909/87, Kailash Joshi v. State of Madhya Pradesh and others. has directed that an inquiry be made by an independent high power agency into the affairs of the Churhat Childrens Welfare Society and how the share of its profits derived from all or any other draws have been utilized and to take such action as may be required under the law against the said Society and its organizing agent and that the State Government is of the view that the said order of the High Court should be implemented and carried out and whereas the State Government is also satisfied that this is a definite matter of public importance which calls for an inquiry to be made, the State Government hereby appoints an independent high power agency presided over by Shri Justice S. T. Ramalingam, Judge of the Madras High Court.

* Reported in 1989 Jab LJ 127

2. The Headquarters of the Agency shall be at Jabalpur, Madhya Pradesh.

3. The terms of reference for inquiry by the aforesaid Agency shall be as under.: -

(1) How the affairs of the Churhat Childrens Welfare Society are conducted and how the share of the profit derived and the money collected through lottery has been utilised?

(2) What is the amount collected draw-wise, by the agent and the Society and what is the tax liability as per the Madhya Pradesh Lottery (Niyantran Tatha Kar) Adhiniyam, 1973?

(3) Whether any irregularities, illegalities and offences were committed in organizing the lottery, holding of draws of lottery, distribution of prizes, and in that event, the person responsible for the same;

(4) Any other matter incidental or connected with the above subject matter of enquiry.

4. The Agency may complete its enquiry and submit its report to the State Government within a period of six months from the date of issue of this Notification.

By order and in the name of the Governor of Madhya Pradesh,

R. C. SHRIVASTAVA,Secy."

"Bhopal, the 24th February, 1989

No. F.1-3-89-I(i)-E.C.-Whereas by Government of Madhya Pradesh Resolution dated the 24th February, 1989 and Notification No. F.1-3-89-I(i)-E.C., dated the 24th February, 1989 an independent High Power Agency presided over by Shri S. T. Ramalingam, Judge of the Madras High Court has been set up to hold an inquiry into the affairs of the Churhat Childrens Welfare Society;

And whereas the State Government having regard to the nature of the inquiry to be made and other circumstances of the case is of the opinion that provisions contained in sub- sections (2) to (5) of Section 5 of the Commissions of


















































































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