AMARJEET SINGH Vs DEVI RATAN
Case number: C.A. No.-005790-005792 / 2002
Diary number: 8522 / 2002
Advocates: VISHWAJIT SINGH Vs
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOs. 5790-92 OF 2002
Amarjeet Singh & Ors. …. Appellants
Versus
Devi Ratan & Ors. …. Respondents
With SLP(C) No. 9615 of 2002.
O R D E R
1. These appeals have arisen from the judgment and order dated
11.4.2002 passed by the High Court of Allahabad (Lucknow Bench) by
which it has allowed the writ petitions filed by the respondents quashing
the seniority list dated 12.7.2000 issued by the State Government for the
Excise Inspectors.
2. The facts and circumstances giving rise to these appeals are that the
appellants and respondents in these cases were appointed as Excise
Inspectors under the provisions of U.P. Excise Service (Class-II) Rules,
1970 (hereinafter called as “the Rules 1970”). The parties became eligible
for consideration for promotion to the post of Superintendent of Excise
under the said Rules, 1970. The criteria of promotion for the post of
Superintendent of Excise and for higher post of Assistant Excise
Commissioner (hereinafter called “AEC”) had been “merit” under the
provisions of U.P. Assistant Excise Commissioners Service Rules, 1992
(hereinafter called as ‘the Rules 1992’). The said rules stood amended w.e.f.
10.10.1994 and the criteria for promotion was changed from ‘merit’ to
‘seniority subject to rejection of unfit.” The Appellant Amarjeet Singh
alongwith some other Excise Inspectors filed writ petition No. 1113(SB) of
1994 before the Allahabad High Court challenging the selection process
for promotion under Rules 1992. The High Court vide judgment and order
dated 1.2.1995 held that the vacancies which had come into existence prior
to 10.10.1994 i.e. the date of amendment, be filled up as per the unamended
Rules i.e. on the basis of “merit” and not on the basis of “seniority subject
to rejection of unfit.”
3. Being aggrieved, the State of U.P. preferred the Special Leave
Petition before this Court and this Court vide Order dated 30.10.1995 passed
an interim Order permitting the State Authorities to make promotions as per
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1994 amendment Rules but it was subject to the result of the petition as this
Court made it clear that if petition was dismissed, the respondents would be
reverted to the lower post from which they would be promoted.
4. In view of the said interim order of this Court, 61 Excise Inspectors
stood promoted, subject to the final outcome of the Special Leave Petition.
This Court dismissed the said Special Leave Petition vide Order dated
19.8.1999 in limine. However, the State Authorities for the reasons best
known to them, did not revert the promoted officers and they continued to
hold the higher posts. The Departmental Promotional Committee
(hereinafter called the DPC) meant for filling up the 42 vacancies, which
came into existance prior to 10.10.1994, met on 19.12.1998. After scanning
the service records and determining the inter se merit of the candidates, the
Committee came to the conclusion that only 30 candidates were suitable for
promotion to the posts of AEC and they were to be promoted as per the
availability of yearwise vacancies. The respondents, herein, were found
unsuitable for promotion in the said selection process.
5. After completing the aforesaid exercise, 12 vacancies for the post of
AEC remained unfilled. Therefore, the 12 vacancies were carried forward
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to enable the State Authorities to fill up the same under the amended Rules
on a different criteria i.e. “Seniority subject to rejection of unfit”. Thus
twelve officers/respondents were promoted under the amended rules by the
another DPC held on 22.1.1999. The State Government issued the Order
dated 15.5.1999 reverting all Excise Inspectors promoted on 6.12.1995
under the interim order of this Court and gave notional promotions with
retrospective effect to appellants as well as all the reverted
officers/respondents. As a consequence, a seniority list dated 12.7.2000,
was issued, wherein the appellants were placed over and above the
respondents. Being aggrieved, the respondents approached the High Court
challenging the said seniority list dated 12.7.2000.
6. The High Court vide impugned judgment and order dated 11.4.2002
held that as the postings to both set of officers i.e. those who had been
promoted by the DPC dated 19.12.1998 and another DPC dated 22.1.1999
had been made on the same day and had been given notional promotion
from one and the same date, their inter se seniority was to be fixed as it
existed in the feeding cadre of Excise Inspectors and thus quashed the
seniority list dated 12.7.2000 and further directed the State to prepare a fresh
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seniority list placing the appellants below the respondents. Hence these
appeals.
7. In these appeals, as most of the appellants and respondents have
already availed the benefit of promotions and retired on attaining the age of
superannuation, they lost interest in the litigation. Only two appellants and
two to four respondents are still in service and the said appellants feel that
they would be adversely affected, if the High Court judgment is given effect
to. In these matters, the learned counsel appearing for the respondents
sought discharge from the cases, as their clients did not respond. In spite of
the service of notices to them, they did not engage any counsel. Therefore,
this Court on 26.8.2009 requested Shri Gaurav Agrawal, learned Advocate
to assist the court as Amicus Curiae who was served with the paper book of
the cases and appeared today for the respondents.
8. Shri Rakesh Dwivedi, learned senior counsel appearing for the
appellants has submitted that the action of the State Authorities has been in
flagrant violation of the orders passed by this Court as promotion of the
respondents to the post of AEC had been subject to the decision of the
Special Leave Petition, which stood dismissed. The said respondents ought
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to have been reverted forthwith after dismissal of the said petition. The
question of permitting them to continue even after dismissal of the petition
by this Court was not required and thus, could not be justified. Promotions
made by the DPC under the unamended Rules on the basis of “merit” could
not be equated to the promotions made by another DPC under the amended
Rules on the basis of “Seniority subject to rejection of unfit” held at a later
stage. The High Court erred in considering both the promotions to have been
made notionally from one and the same date. In such a fact situation, the
question of interpreting the statutory rules was an unwarranted exercise.
The appellants had been promoted retrospectively, given notional promotion
from the date much earlier than the respondents. Therefore, direction to fix
the seniority in view of their inter se seniority as it existed in the feeding
cadre was not permissible. The appeals deserve to be allowed and the
impugned judgment and order is liable to be set aside alongwith
consequential seniority list dated 26.7.2002. The seniority list dated
12.7.2000 has to be upheld and remain intact.
9. On the other hand, Shri Ravi Prakash Mehrotra and Shri Gaurav
Agrawal, learned counsel appearing for the respondents vehemently opposed
the appeals and made full efforts to defend the judgment and order of the
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High Court and subsequent seniority list dated 26.7.2002 contending that in
case the posting orders have been issued on the same date, inter se seniority
of the parties on the post of Excise Inspectors has to be given effect to.
Therefore, the appeals are liable to the dismissed.
10. We have considered the rival submissions made by learned counsel
for the parties and perused the records. Indisputably, the High Court has
decided the case interpreting the provisions of Rule 6 of the U.P.
Government Servants Seniority Rules, 1991 (hereinafter called as ‘the Rules,
1991).
11. The High Court has considered the Rules elaborately giving effect to
the said Rule 6 of the Rules 1991 and its proviso without examining its
validity which had been under challenge before it in the connected writ
petition. The High Court observed that there was no occasion for the
petitioners therein to challenge the validity of Rule 6, as their seniority had
already been fixed.
Rule 3(1) of the Rules 1992, the recruitment year is defined as under:
“Year of recruitment means a period of twelve months commencing from the Ist day of July of calendar year”
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Therefore, we have to keep in mind that the year of recruitment is to
be considered for the purpose of fixing inter se seniority of the officers
taking into consideration the officers promoted within a period of 12 months
from Ist day of July of the year. Therefore, if the promotions have
retrospectively been given to a particular set of officers in the year1995 and
to another set of officers in the years 1997 and 1998, they cannot be treated
at par and cannot be treated as equals merely because posting of all of them
had been made on the same day. The High Court committed an error in
recording the finding of fact that notional promotion had been given to both
set of officers from one and the same date by virtue of notification no.
1098 dated 15.5.1999 and therefore their seniority is to be determined in
accordance with the Rule 6 of the Rules 1991 irrespective of the
explanation.
12. As the High Court has misdirected itself considering that both set of
officers had been given notional promotion from one and the same date,
which, in fact, is not factually correct, the interpretation of the Statutory
Rules or its explanation becomes irrelevant.
This Court, in State of U.P. & Others vs. Onkar Nath Tandon &
Others, AIR 1993 SC 1173 has held that a candidate who is rejected in a
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common selection and superseded, he would not regain seniority upon being
promoted subsequently. The High Court wrongly distinguished the said
judgment under the presumption that both set of officers had been given
notional promotions from one and the same date.
13. The High Court has decided the earlier writ petition observing that
vacancies which occurred prior to the date of amendment of the Rules, i.e.,
13.10.1994, had to be filled up as per the unamended Rules. The State
Government filed a Special Leave Petition, challenging the said order. This
Court on 30.10.1995 passed the following order :
“During the pendency of the Special Leave Petition appointments may be made as per the existing Rules, but all the appointees will be informed that appointments are subject of the result of the petition and if the court rules that the revised rule has no application insofar on the respondents claimants are concerned, they will be liable to be reverted to the present post from which they would be promoted.”
In view of the above, the respondents had been promoted and allowed
to continue. This Court, ultimately dismissed the said petition vide Order
dated 19.8.1998 by the following order :
“ We have heard Shri A.B. Rohtagi, the learned Senior Counsel appearing for the petitioners in support of the special leave petition and Shri G.L. Sanghi, the learned Senior Counsel appearing for respondent no. 5 and Shri Parag P. Tripathi, the learned counsel appearing for respondent nos. 1 to 4 and 6 and
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we have perused the impugned judgment of the High Court as well as the record. Having regard to the facts of this case, we do not think that a case is made out for interference by this court under Article 136 of the Constitution of India. The Special Leave Petition is, therefore, dismissed.”
14. In view of the above, the State Government ought to have reverted the
respondents as their promotions were subject to the decisions of the said
petition. In view of the fact that the respondents continued on a higher post
under the orders of this Court for years together and even after dismissal of
the petition filed by the State, and the exercise for making promotions was
not undertaken by the State Authorities, the appellants should not suffer for
no fault of theirs. It has fairly been conceded by learned counsel appearing
for the respondents that had the exercise of making promotions been
undertaken immediately after the order of this Court dated 19.8.1998, the
appellants could have been promoted much earlier and they could have been
senior to the respondents. Thus the question does arise as to whether
appellants should be asked to suffer for the interim order passed by this
Court in a case having no merits at all.
15. No litigant can derive any benefit from mere pendency of case in a
Court of Law, as the interim order always merges in the final order to be
passed in the case and if the writ petition is ultimately dismissed, the interim
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order stands nullified automatically. A party cannot be allowed to take any
benefit of his own wrongs by getting interim order and thereafter blame the
Court. The fact that the writ is found, ultimately, devoid of any merit, shows
that a frivolous writ petition had been filed. The maxim "Actus Curiae
neminem gravabit”, which means that the act of the Court shall prejudice
no-one, becomes applicable in such a case. In such a fact situation the Court
is under an obligation to undo the wrong done to a party by the act of the
Court. Thus, any undeserved or unfair advantage gained by a party invoking
the jurisdiction of the Court must be neutralised, as institution of litigation
cannot be permitted to confer any advantage on a suitor from delayed action
by the act of the Court. (Vide Shiv Shankar & Ors. Vs. Board of Directors,
Uttar Pradesh State Road Transport Corporation & Anr., 1995 Suppl. (2)
SCC 726; M/s. GTC Industries Ltd. Vs. Union of India & Ors., AIR 1998
SC 1566; and Jaipur Municipal Corporation Vs. C.L. Mishra, (2005) 8 SCC
423).
16. In Ram Krishna Verma & Ors. Vs. State of U.P. & Ors., AIR 1992 SC
1888 this Court examined the similar issue while placing reliance upon its
earlier judgment in Grindlays Bank Limited Vs. Income Tax Officer,
Calcutta & Ors., AIR 1980 SC 656 and held that no person can suffer from
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the act of the Court and in case an interim order has been passed and
petitioner takes advantage thereof and ultimately the petition is found to be
without any merit and is dismissed, the interest of justice requires that any
undeserved or unfair advantage gained by a party invoking the jurisdiction
of the Court must be neutralized.
17. In Mahadeo Savlaram Sheke & Ors. Vs. Pune Municipal Corporation
& Anr., (1995) 3 SCC 33, this Court observed that while granting the
interim relief, the Court in exercise of its discretionary power should also
adopt the procedure of calling upon the plaintiff to file a bond to the
satisfaction of the Court that in the event of his failing in the suit to obtain
the relief asked for in the plaint, he would adequately compensate the
defendant for the loss ensued due to the order of injunction granted in favour
of the plaintiff. Even otherwise the Court while exercising its equity
jurisdiction in granting injunction is also competent to grant adequate
compensation to mitigate the damages caused to the defendant by grant of
injunction. The pecuniary award of damages is consequential to the
adjudication of the dispute and the result therein is incidental to the
determination of the case by the Court. The Court can do so in exercise of
its inherent jurisdiction in doing ex debito justitiae mitigating the damage
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suffered by the defendant by the act of the Court in granting injunction
restraining the defendant from proceeding with the action complained of in
the suit. Such a procedure is necessary as a check on abuse of the process of
the Court and adequately compensate the damages or injury suffered by the
defendant by act of the Court at the behest of the plaintiff.
18. In South Eastern Coalfields Ltd. Vs. State of M.P. & Ors., AIR 2003
SC 4482, this Court examined this issue in detail and held that no one shall
suffer by an act of the Court. The factor attracting applicability of restitution
is not the act of the court being wrongful or a mistake or error committed by
the court; the test is whether on account of an act of the party persuading the
court to pass an order held at the end as not sustainable, has resulted in one
party gaining an advantage it would not have otherwise earned, or the other
party has suffered an impoverishment which it would not have suffered but
for the order of the court and the act of such party. There is nothing wrong
in the parties demanding being placed in the same position in which they
would have been had the court not intervened by its interim order when at
the end of the proceedings the court pronounces its judicial verdict which
does not match with and countenance its own interim verdict. The injury, if
any, caused by the act of the court shall be undone and the gain which the
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party would have earned unless it was interdicted by the order of the court
would be restored to or conferred on the party by suitably commanding the
party liable to do so. Any opinion to the contrary would lead to unjust if not
disastrous consequences. The Court further held :
“…..Litigation may turn into a fruitful industry. Though litigation is not gambling yet there is an element of chance in every litigation. Unscrupulous litigants may feel encouraged to approach the courts, persuading the court to pass interlocutory orders favourable to them by making out a prima facie case when the issues are earlier to be heard and determined on merits and if the concept of restitution is excluded from application to interim orders, then the litigant would stand to gain by swallowing the benefits yielding out of the interim order even though the battle has been lost at the end. This cannot be countenanced. We are, therefore, of the opinion that the successful party finally held entitled to a relief assessable in terms of money at the end of the litigation, is entitled to be compensated……”
Similarly in Karnataka Rare Earth & Anr. Vs. Senior Geologist,
Department of Mines & Geology & Anr., (2004) 2 SCC 783, a similar view
has been reiterated by this Court observing that the party who succeeds
ultimately is to be placed in the same position in which they would have
been if the Court would not have passed an interim order.
19 In Dr. A.R. Sircar Vs. State of U.P. & Ors., (1993) Supp. 2 SCC 734,
the dispute arose regarding the seniority of direct recruits and promotees on
the post of Professor of Medicine in a medical college. The appellant
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therein faced the selection process for direct appointment along with the
respondents who had been working on the said post on ad hoc basis. The
appellant was duly selected, however, the private respondents could not
succeed. The respondents filed the writ petition before the High Court and
precluded the appointment of appellant pursuant to his selection, by
obtaining the interim order and on the other hand they got their ad hoc
promotion to the post regularized under the rules. The appellant could
succeed in obtaining the appointment only after dismissal of the writ petition
against him after several years of his selection. This Court held that in
addition to the relief under the statutory provisions the appellant was entitled
in equity to get the seniority over the respondents as they succeed in
precluding his appointment to the post by obtaining an interim order in a
case having no merits whatsoever.
20. In Committee of Management, Arya Nagar Inter College & Anr. Vs.
Sree Kumar Tiwari & Anr., AIR 1997 SC 3071, the services of the
respondent therein were terminated, however, he continued to be in service
on the basis of interim order passed by the High Court in the writ petition
filed by him. During the pendency of the writ petition, the rules for
regularization of ad hoc appointees were amended and in pursuance thereof
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his services also stood regularized. Ultimately, the writ petition filed by the
respondent was dismissed. This Court held that his continuity in service and
regularization had to be understood as it was subject to the result of the writ
petition. As the writ petition was dismissed the order of regularising of his
services, passed during the pendency of the writ petition, became
inoperative.
21. In view of the above, the appellants are entitled for the relief purely on
equitable grounds without going into any other legal issue and appeals
deserve to be allowed and the seniority list quashed by the High Court has to
be restored.
22. There is another aspect of the matter. The appellants and the
respondents have been considered by the DPC held on 19.12.1998 to fill up
42 vacancies under the unamended rules. However, at the cost of repetition,
it may be pertinent to mention here that only 30 candidates/appellants were
found suitable by the DPC held on 19.12.1998 and had been promoted,
under the unamended Rules on the criterion of “merit”. The respondents
had been promoted under the amended rules by carrying forward 12
vacancies, by another DPC held subsequently on 22.1.1999 on different
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criterion, i.e., “Seniority subject to rejection being unfit”. Indisputably,
these 12 officers/respondents were found unsuitable for promotion under the
unamended rules by the DPC held on 19.12.1998. Subsequent thereto, both
set of officers had been promoted notionally from the back dates. The
appellants had been given promotions as AEC against the vacancies for the
year 1994-95 while the respondents were given notional promotions against
the vacancies for the years 1996 and 1997. The seniority list dated
12.7.2000 was prepared accordingly. As the appellants had been given
notional promotion w.e.f. 6.12.1995 and the respondents w.e.f. 28.2.1997
and 13.8.1997, their inter se seniority had rightly been determined while
issuing seniority list dated 12.7.2000. The law permits promotion with
retrospective effect only in exceptional circumstances when there has been
some legal impediment in making the promotions, like an intervention by
the Court.
23. An officer cannot be granted seniority prior to his birth in the cadre
adversely affecting the seniority of other officer who had been appointed
prior to him. “The late comers to the regular stream cannot steal a march
over the early arrivals in the regular queue” (vide Dr. S.P. Kapoor vs. State
of Himachal Pradesh AIR 1981 SC 2181; Shitala Prasad Shukla vs. State of
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U.P. & Ors., AIR 1986 SC 1859; and Uttaranchal Forest Rangers’ Assn.
(Direct Recruit) & Ors. vs. State of U.P. & Ors., (2006) 10 SCC 346).
24. In the instant case, promotions had been made by two different DPC’s
held on 19.12.1998 and 22.1.1999. Both the DPC’s had made promotions
under different rules on different criterion and their promotions had been
made with retrospective effect with different dates notionally. In the writ
petition before the High Court, the promotion of the appellants had not been
under challenge. The seniority which is consequential to the promotions
could not be challenged without challenging the promotions.
25. Challenging the consequential order without challenging the basic
order is not permissible. (vide Chithranja Menon & Ors. Vs. A.
Balakrishnan & Ors., AIR 1977 SC 1720).
26. In Roshan Lal & ors. Vs. International Airport Authority of India &
ors., AIR 1981 SC 597, the petitions were primarily confined to the
seniority list and this Court held that challenge to appointment orders could
not be entertained because of inordinate delay and in absence of the same,
validity of consequential, seniority could not be examined. In such a case, a
1
party is under a legal obligation to challenge the basic order and if and only
if the same is found to be wrong, consequential orders may be examined.
27. In H.V. Pardasani etc. Vs. Union of India & ors., AIR 1985 SC 781,
this Court observed that if "petitioners are not able to establish that the
determination of their seniority is wrong and they have been prejudiced
by such adverse determination, their ultimate claim to promotion would,
indeed, not succeed."
28. A similar view had been reiterated by this Court in Government of
Maharashtra & ors. Vs. Deokar’s Distillery, (2003) 5 SCC 669.
These appeals are squarely covered by the aforesaid judgments. We
are of the considered opinion that in absence of challenge to the promotion
of the appellants, relief of quashing the consequential seniority list could not
have been granted.
29. Sum up:
Admittedly, the respondents were over and above the appellants in the
seniority list of Excise Inspectors. The rules of 1992 were amended in the
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year 1994, changing the criterion for promotion from “merit” to “seniority
subject to rejection of unfit”. Forty two posts of AEC were to be filled up
from the Excise Inspectors, as no Excise Superintendent was available for
being considered for promotion to the post of AEC. The State Government
wanted to fill up the said vacancies by applying the amended rules. On
being challenged by some of the appellants, the High Court held that the
vacancies which occurred prior to the amendment of 1992 Rules, namely,
10.10.1994 had to be filled up according to the unamended rules. The
operation of the judgment and order of the High Court was stayed by this
Court making it crystal clear that promotions so made under the amended
rules would be subject to the decision in special leave petition. Accordingly,
61 Officers/respondents were promoted. Subsequently, this Court dismissed
the SLP vide order dated 18.8.1998 in limine. The officers/ respondents so
promoted were not reverted. The DPC was held on 19.12.1998 to fill up
said 42 vacancies, but only 30 candidates/appellants were found eligible to
be promoted to the post of AEC. The respondents were found unsuitable.
In order to give the said respondents a second chance, the State Government
carried forward the remaining 12 vacancies and directed to fill up the same
under the amended Rules, and for that purpose another DPC was convened
on 22.1.1999 and they were promoted on the basis of different criterion.
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Promotions were made with retrospective effect determining the yearwise
vacancies. Appellants had been given promotion notionally against the
vacancies, occurred in the recruitment year 1995 while the respondents were
promoted notionally against the vacancies of the recruitment years 1996 and
1997. Thus, the High Court committed an error while recording the finding
of fact that both set of officers had been promoted notionally from one and
the same date. Admittedly, promotions were not made with effect from one
and the same date. Appellants and respondents were promoted against the
vacancies which had occurred in different recruitment years under different
Rules and on different criterion. Thus, the respondents would rank below
the appellants in seniority.
Therefore, there could be no justification to hold that their inter se
seniority in the feeding cadre would be relevant for determining the seniority
of AECs. More so, had the interim order not been passed by this Court, the
appellants could have been promoted under the unamended rules much
earlier. Thus, they are entitled for equitable relief, as the effect of the
interim order of this Court was required to be neutralised. The appellants
had been promoted with an earlier date, thus, are bound to be senior than
respondents who had been promoted with respect from a later date. No
employee can claim seniority prior to the date of his birth in the cadre.
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30. In view of the above, appeals succeed and are allowed. The
impugned judgment and order dated 11.4.2002 is set aside. The Seniority
List dated 12.7.2000 is directed to prevail and fresh Seniority List of
26.7.2002 is hereby quashed. No orders as to cost.
Before parting with these cases, we would record our appreciation to
the services rendered by Shri Gaurav Agrawal, Amicus Curiae.
SLP(C) No. 9615 of 2002 :
This petition could not be dismissed by the High Court at the threshold
without examining the case on merit. However, no order is required in this
case in view of the order of this date passed in the connected appeal
nos.5790-5792/2002. It is accordingly disposed of.
…………………………….J. ( HARJIT SINGH BEDI )
………………………… ….J.
( Dr. B.S. CHAUHAN )
New Delhi,
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November 18, 2009
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