SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2016 Supreme(All) 3579

ALLAHABAD HIGH COURT
Satyendra Singh Chauhan, Anant Kumar, JJ.
Sachchidanand Gupta [PIL] Civil - Appellant
Versus
State of U.P. & Ors. - Respondent
Writ Petition No. - 5283 (M/B) of 2011 with WP No. 9613 (M/B)/14
Decided On : 20-08-2016

Advocates Appeared:
For the Petitioner:- Akhilesh Kalra, Chandra Dhari Singh, Dhiraj Kumar Chaurasiya, Dipak Seth, Gaurav Mehrotra, Nadeem Murtaza, Prashant Singh Atal, Suman Pandey and Amitabh Misra.
For the Respondent:- C.S.C.,A.S.G., Anurag Kr Singh, B.K. Singh, Dhruv Mathur, Dilip Pandey, Manish Kumar, Neerav Chitravanshi, P.K. Sinha, Pushpila Bisht, Sanjeev Singh, Shashank Bhasin, Sri Amit Singh Bhadauria, Sri Ashok Pandey, Sri Karunanidhi Yadav, Jai Prakash Singh, Keshav Ram Chaurasiya and Ravi Singh.

The main legal point established in the judgment is the application of the principle of constructive res judicata, which bars the re-opening of issues already adjudicated upon by a coordinate Bench of the Court.

Headnote:

Fraud - Sale of Sugar Mills - U.P. Sugar Undertakings (Acquisition) (Amendment) Act, 2009 - Section 3-C, Section 3-D - Section 45-S - Swiss Challenge Method

Fact of the Case:

The writ petitions challenged the sale of sugar mills by the State Government, alleging irregularities in the valuation and sale process. The State Government had issued orders subject to the outcome of a pending Special Leave Petition (SLP) before the apex Court regarding the sale of units of the Corporation.

Finding of the Court:

The Court found that the issues raised in the writ petitions had already been considered and decided by a coordinate Bench of the Court, and were pending before the apex Court. The Court held that it was not appropriate to entertain the writ petitions at this stage, given the pending SLP and the settled legal position.

Issues: The issues involved the sale of sugar mills, valuation of the mills, applicability of the Swiss Challenge Method, and the legality of the Government orders. The Court also considered the fraudulent conduct of the petitioner in filing the writ petition before the apex Court.

Ratio Decidendi: The Court applied the principle of constructive res judicata, emphasizing that issues already adjudicated upon and considered by a coordinate Bench cannot be re-opened. The Court also highlighted the settled legal position that questions or issues raised earlier and adjudicated upon cannot be allowed to be raised for the second time.

Final Decision: Both the writ petitions were dismissed by the Court.

JUDGMENT

These two writ petitions have been filed in the nature of Public Interest Litigation challenging the orders passed by the State Government dated 2.7.2010, 17.9.2010, Order No.2929(2)S.C./18-2-2010-51/10 dated 4.01.2011, Order No.2929(3)S.C./18-2-2010-51/10 dated 4.01.2011, Order No.2929(4)S.C./18-2-2010-51/10 dated 4.01.2011 and the orders passed by the Collector Stamp/Additional Collector (F/R) of different districts with a further prayer for mandamus commanding the opposite party no.1 to take decision on the report submitted by the Uttar Pradesh Lok Ayukt and also to revaluate the 21 sugar mills, which have been sold, afresh by an independent agency for the purpose of proceeding with disinvestment.

2. The above orders have been passed as a consequence of the two writ petitions filed at Allahabad numbering Civil Misc. Writ Petition No.39850 of 2009, Chini Mill Karmchari Sangh vs. State of U.P. and others and Civil Misc. Writ Petition No.47934 of 2008, Rajiv Kumar Mishra vs. State of U.P. and others, decided on 1.4.2010. Civil Misc. Writ Petition No.39850 of 2009 was filed on behalf of Chini Mill Karmchari Sangh, Mohiuddinpur Unit through its President alleging therein that they were going to be affected directly and adversely by privatization policy of the State as the same is prejudicial to the interest of the members of the petitioner union and is a gross infraction of existing and prevalent statutes as well as the Constitution of India. Civil Misc. Writ Petition No.47934 of 2008, Rajiv Kumar Mishra vs. State of U.P. and others, was filed with a prayer for quashing the request for proposal for strategic sale of entire equity of the Government of Uttar Pradesh in Uttar Pradesh State Sugar Corporation Limited (for short 'Corporation') as issued on 8.9.2008. Further prayer was made for quashing the Government Order dated 4.6.2007, by means of which the State of U.P. has taken decision for privatisation/sale of units of the Corporation. In the aforesaid writ petitions, an order was passed on 30.9.2008, whereby a direction was given that no third party right shall be created till the next date of listing. During the course of hearing in the said writ petitions, it was brought to the notice of the Court that an ordinance dated 29.9.2008 has been issued, on which the petitioner was directed to challenge the said ordinance, namely, U.P. Sugar Undertakings (Acquisition) (Amendment) Ordinance, 2008 promulgated on 29.9.2008. The said ordinance was subsequently replaced by U.P. Sugar Undertakings (Acquisition) (Amendment) Act, 2009. The petitioner was also directed to amend the writ petition by adding the prayer for declaring the Act of 2009 as ultra vires. After the enforcement of the Amendment Act, 2009 an expression-cum-request for publication was issued by the State of U.P. on 29.6.2009 for sale/privatisation of 11 operating units of the Corporation. Both the writ petitions were heard and finally a coordinate Bench of this Court vide judgement and order dated 1.4.2010 came to the conclusion that Section 3-C and Section 3-D of the Amendment Act, 2009 to the extent it provides "closure of the scheduled undertakings or sugar mills of the Corporation and its subsidiaries or in relation to the Corporation itself" was struck down as lack of legislative competence and all consequential actions to the above extent shall automatically fall to the ground. The other provisions of the Amendment Act, 2009 and the actions taken therein were held to be intra-vires. In Writ Petition No.47934 of 2008, Rajiv Kumar Mishra vs. State of U.P., an application for amendment was filed by the petitioner thereby seeking to amend the memo of writ petition extensively by adding as many as fourteen new paragraphs and fourteen new grounds and a prayer for quashing the Request of Proposal for slump sale of 11 operating Sugar Mills dated 29.6.2009 which was allowed by this Court. The request for proposal was challenged on the ground that valuation of the S
















































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top