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2006 Supreme(SC) 870

2006(7) Supreme 311
SUPREME COURT OF INDIA
(From Allahabad High Court)
Arijit Pasayat & S.H. Kapadia, JJ.
Star Paper Mills Ltd.—Appellant
versus
State of U.P. & Ors.—Respondents
Civil Appeal No. 2595-2596 of 2000
With
Civil Appeal No. 2597-2598 of 2000
Decided on 19-9-2006
Counsel for the Parties :
For the Appellant : Dr. A.M. Singhvi, Vijay Hansari, Sr. Advocates, Gaurav Jain and Ashok Mathur, Advocates.
For the Respondents : Ms. Shobha Dikshit, Sr. Advocate, Ashok Srivastava, Praveen Swarup, Pradeep Misra, Pramod Swarup, Javed M. Rao, Chandrakant Nayak, Santosh Kumar, Divsesh Singh, Rakesh K. Sharma, Ajay K. Agrawal and Abhijit Sengupta, Advocates.

IMPORTANT POINT
Rule of exclusion of writ jurisdiction by availability of alternative remedy is a rule of discretion and not of compulsion.

Headnote:Constitution of India—Article 226 —Uttar Pradesh Krishi Utpadan Mandi Niyamavali, 1965—Rule 70—Market fee on purchases made by appellant from U.P. Forest Corporation—Writ Petition to restrain respondent from levying the fee on plea that a person who purchased agricultural produce for his domestic consumption did not come within ambit of said rule—High Court dismissed writ holding that appellant could avail statutory remedy—Appeal—Issue of entertaining writ petition when alternative remedy was available—Rule of exclusion of writ jurisdiction by availability of alternative remedy was a rule of discretion and not one of compulsion—Case in question was not a one where no factual adjudication was necessary—High Court was justified in its view.

       Held : The issues relating to entertaining writ petitions when alternative remedy is available, were examined by this Court in several cases and recently in State of Himachal Pradesh and Ors. v. M/s Gujarat Ambuja Cement Ltd. and Anr. (2005 (6) SCC 499). Except for a period when Article 226 was amended by the Constitution (42nd Amendment) Act, 1976, the power relating to alternative remedy has been considered to be a rule of self imposed limitation. It is essentially a rule of policy, convenience and discretion and never a rule of law. Despite the existence of an alternative remedy it is within the jurisdiction of discretion of the High Court to grant relief under Article 226 of the Constitution. At the same time, it cannot be lost sight of that though the matter relating to an alternative remedy has nothing to do with the jurisdiction of the case, normally the High Court should not interfere if there is an adequate efficacious alternative remedy. If somebody approaches the High Court without availing the alternative remedy provided the High Court should ensure that he has made out a strong case or that there exist good grounds to invoke the extra-ordinary jurisdiction.(Paras 6 & 7)

       In Harbans Lal Sahnia v. Indian Oil Corporation Ltd. (2003 (2) SCC 107), this Court held that the rule of exclusion of writ jurisdiction by availability of alternative remedy is a rule of discretion and not one of compulsion and the Court must consider the pros and cons of the case and then may interfere if it comes to the conclusion that the petitioner seeks enforcement of any of the fundamental rights; where there is failure of principles of natural justice or where the orders or proceedings are wholly without jurisdiction or the vires of an Act is challenged. (Para 10)

       This is not a case where no factual adjudication is necessary. Therefore, the High Court was justified in view that the statutory remedy is to be availed. Let the appellant file the necessary details as required under the Niyamavali within three weeks from today and place its stand before the concerned authority for consideration. The said authority shall consider the stand of the appellant and dispose of the same as expeditiously as practicable preferably within six weeks from the date when the necessary details and/or objections are filed before the authority. (Paras 14 & 15)

JUDGMENT

Arijit Pasayat, J.—Challenge in these appeals is to the judgment rendered by a Division Bench of the Allahabad High Court. Two of the appeals i.e. Civil Appeal Nos. 2595-96 of 2000 relate to the order requiring the appellant to avail statutory remedy and other two appeals i.e. Civil Appeal nos. 2597-98 of 2000 relate to the order passed in the a review application filed by the appellant, rejecting the prayer for review.

2. The basic prayer in the writ petition was to restrain the respondents Rajya Krishi Utpadan Mandi Parishad and several Krishi Utpadan Mandi Samitis from levying and/or collecting any market fee on the purchases made by the appellant from Uttar Pradesh Forest Corporation, Lucknow (in short the Corporation). Appellants stand in essence was as follows:

3. Appellant purchases paper for its own consumption and therefore it is not liable to pay any market fee in terms of Rule 70 of the Uttar Pradesh Krishi Utpadan Mandi Niyamavali, 1965 (in short the Niyamavali). It was submitted that a person who purchases agricultural produces for his domestic consumption does not come within the ambit of the said rule. It was also pointed out that it being not a seller within the meaning of Rule 2 (xiii) of the Niyamavali, no tax can be realized from it under the provisions of the Niyamavali framed under Section 40 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (in short the Adhiniyam). Though it is presently urged that several other pleas in addition to the plea relating to captive consumption were raised, the same was not considered and therefore the review petition was filed. The High Court noted that there factual disputes were involved, and, therefore, it would be appropriate for the appellant to appear before the concerned authority after paying the provisional assessment of mandi fee, so that its objections, if any, can be heard. A review petition was filed wherein it was stated that several points other than those relating to captive consumptions were raised and, therefore, the matter should be heard afresh. The High Court dismissed the review petition on the ground that the points raised in the review petition were neither raised in writ petition nor were contended before the Court when the matter was heard.

4. In support of the appeal learned counsel for the appellant submitted that the High Court was clearly in error by directing the appellant to avail the statutory remedy. According to him, the decision of this Court in Krishi Utpadan Mandi Samiti & Ors. v. Shree Mahalaxmi Sugar Works & Ors. [ (1995) Suppl. 3 SCC 433] clearly supports the stand taken by the appellant.

5. In response, learned counsel for the respondents submitted that on factual adjudication it was to be established by the appellant that its case is covered by the ratio of this Courts decision in Krishi Utpadan Mandi Samitis case (supra).

6. The issues relating to entertaining writ petitions when alternative remedy is available, were examined by this Court in several cases and recently in State of Himachal Pradesh and Ors. v. M/s Gujarat Ambuja Cement Ltd. and Anr. (2005 (6) SCC 499).

7. Except for a period when Article 226 was amended by the Constitution (42nd Amendment) Act, 1976, the power relating to alternative remedy has been considered to be a rule of self imposed limitation. It is essentially a rule of policy, convenience and discretion and never a rule of law. Despite the existence of an alternative remedy it is within the jurisdiction of discretion of the High Court to grant relief under Article 226 of the Constitution. At the same time, it cannot be lost sight of that though the matter relating to an alternative remedy has nothing to do with the jurisdiction of the case, normally the High Court should not interfere if there is an adequate efficacious alternative remedy. If somebody approaches the High Court without availing the alternative remedy provided the High Court should ensure that he has made out a strong case or th












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