19 Jun 2010

ULIPs and law: An Ordinance and another twist

The Press Information Bureau in a Press Release made today late evening has announced that the President of India has promulgated an Ordinance amending the provisions of the "Reserve Bank of India Act 1934, Insurance Act 1938, SEBI Act 1992 and Securities Contract Regulations Act 1956, thereby clarifying by way of an explanation that Life Insurance business shall include any Unit Linked Insurance Policy or scripts or any such instruments." According to the Press Release, "his would set at rest all the issues regarding ULIPs between two financial regulators i.e. Securities Exchange Board of India (SEBI) and Insurance Regulatory Development Authority (IRDA)". 

In as much as on this blog we had analysed extensive the origin and the issued involved in the tussle in our earlier post and also in as much as we feel that the sorting of issues is not as simple as the press release states, we feel it obligatory on our part to put in words our opinion on the same. We do so, however, with our limitation of inaccessibility to the original text of the Ordianance in as much as the same seems not to have been made public till the time of publication of this post. However we promise our readers an extensive review of the Ordinance as soon as we receive its full text.


Meanwhile, the PIB Press Release also informs us of the following;
Further, for sorting-out all issues of jurisdiction regarding hybrid products, a high level Committee under Chairmanship of Union Finance Minister has been constituted. Finance Secretary to Government of India, Secretary, Department of Financial Services and the Chiefs of four Financial Regulators viz. Reserve Bank of India (RBI), Insurance Regulatory Development Authority (IRDA), Securities Exchange Board of India (SEBI) and Pension Fund Regulatory Development Authority (PFRDA) will be the members of the aforesaid Committee.
Have a look at the Press Release.  

18 Jun 2010

Higher authority cannot exercise sub-ordinate's power: Supreme Court

In a recent decision the Supreme Court was inter alia called upon to decide whether it is possible for a higher authority to exercise the powers which have been vested in an authority subordinate to it. The Court was examining the correctness of the approach in which the State Government of Uttar Pradesh (Revisional Authority under the Land Acquisition Act) had directly exercised the power of the Ghaziabad Development Authority (the original authority required to take action under the Act). Holding that such a course of action was not permissible under law, the Supreme Court examined the position of law to hold against the Government.

The Bench explained the legal position in the following terms;
11. In Rakesh Ranjan Verma & Ors. Vs. State of Bihar & Ors., AIR 1992 SC 1348, the question arose as to whether the State Government, in exercise of its statutory powers could issue any direction to the Electricity Board in respect of appointment of its officers and employees. After examining the statutory provisions, the Court came to the conclusion that the State Government could only take the policy decisions as how the Board will carry out its functions under the Act. So far as the directions issued in respect of appointment of its officers was concerned, it fell within the exclusive domain of the Board and the State Government had no competence to issue any such direction. The said judgment has been approved and followed by this Court in U.P. State Electricity Board Vs. Ram Autar and Anr. (1996) 8 SCC 506.
12. In Bangalore Development Authority and Ors. Vs. R. Hanumaiah and Ors. (2005) 12 SCC 508, this Court held that the power of the Government under Section 65 of the Bangalore Development Authority Act, 1976 was not unrestricted and the directions which could be issued were those which were to carry out the objective of the Act and not those which are contrary to the Act and further held that the directions issued by the Chief Minister to release the lands were destructive of the purposes of the Act and the purposes for which the BDA was created.
13. In Bangalore Medical Trust Vs. B.S. Muddappa & Ors. AIR 1991 SC 1902, this Court considered the provisions of a similar Act, namely, Bangalore Development Authority Act, 1976 containing a similar provision and held that Government was competent only to give such directions to the authority as were in its opinion necessary or expedient and for carrying out the purposes of the Act. The Government could not have issued any other direction for the reason that Government had not been conferred upon unfettered powers in this regard. The object of the direction must be only to carry out the object of the Act and only such directions as were reasonably necessary or expedient for carrying out the object of the enactment were contemplated under the Act. Any other direction not covered by such powers was illegal.
14. In Poonam Verma & Ors. Vs. Delhi Development Authority, AIR 2008 SC 870, a similar view has been re-iterated by this Court dealing with the provisions of Delhi Development Authority Act, 1957. In the said case, the Central Government had issued a direction to make allotment of flat out of turn. The Court held as under:
“......Section 41 of the Act, only envisages that the respondent would carry out such directions that may be issued by the Central Government from time to time for the efficient administration of the Act. The same does not take within its fold an order which can be passed by the Central Government in the matter of allotment of flats by the Authority. Section 41 speaks about policy decision. Any direction issued must have a nexus with the efficient administration of the Act. It has nothing to do with carrying out of the plans of the authority in respect of a particular scheme……….Evidently, the Central Government had no say in the matter either on its own or under the Act. In terms of the brochure, Section 41 of the Act does not clothe any jurisdiction upon the Central Government to issue such a direction.”
15. In State of U.P. Vs. Neeraj Awasthi and Ors. (2006) 1 SCC 667, this Court held as follows in context of Government directions: 
“36. Such a decision on the part of the State Government must be taken in terms of the constitutional scheme, i.e., upon compliance of the requirement of Article 162 read with Article 166 of the Constitution of India. In the instant case, the directions were purported to have been issued by an officer of the State. Such directions were not shown to have been issued pursuant to any decision taken by a competent authority in terms of the Rules of Executive Business of the State framed under Article 166 of the Constitution of India.”
16. In The Purtabpore Co., Ltd. Vs. Cane Commissioner of Bihar and Ors. AIR 1970 SC 1896, this Court has observed :
“The power exercisable by the Cane Commissioner under Clause 6(1) is a statutory power. He alone could have exercised that power. While exercising that power he cannot abdicate his responsibility in favour of anyone - not even in favour of the State Government or the Chief Minister. It was not proper for the Chief Minister to have interfered with the functions of the Cane Commissioner. In this case what has happened is that the power of the Cane Commissioner has been exercised by the Chief Minister, an authority not recognised by Clause (6) read with Clause (11) but the responsibility for making those orders was asked to be taken by the Cane Commissioner. The executive officers entrusted with statutory discretions may in some cases be obliged to take into account considerations of public policy and in some context the policy of a Minister or the Government as a whole when it is a relevant factor in weighing the policy but this will not absolve them from their duty to exercise their personal judgment in individual cases unless explicit statutory provision has been made for them to be given binding instructions by a superior.”
17. In Chandrika Jha Vs. State of Bihar and Ors. AIR 1984 SC 322, this Court while dealing with the provisions of Bihar and Orissa Co-operative Societies Act, 1935, held as under:
“The action of the then Chief Minister cannot also be supported by the terms of Section 65A of the Act which essentially confers revisional power on the State Government. There was no proceeding pending before the Registrar in relation to any of the matters specified in Section 65A of the Act nor had the Registrar passed any order in respect thereto. In the absence of any such proceeding or such order, there was no occasion for the State Government to invoke its powers under Section 65A of the Act. In our opinion, the State Government cannot for itself exercise the statutory functions of the Registrar under the Act or the Rules.”
18. In Anirudhsinhji Karansinghji Jadeja & Anr. Vs. State of Gujarat AIR 1995 SC 2390, it was observed : 
“This is a case of power conferred upon one authority being really exercised by another. If a statutory authority has been vested with jurisdiction, he has to exercise it according to its own discretion. If the discretion is exercised under the direction or in compliance with some higher authority's instruction, then it will be a case of failure to exercise discretion altogether.”
19. In K.K. Bhalla Vs. State of M.P. & Ors. AIR 2006 SC 898, this Court has de-lineated the functions of the State Government and the Development Authority, observing that :
“59. Both the State and the JDA have been assigned specific functions under the statute. The JDA was constituted for a specific purpose. It could not take action contrary to the scheme framed by it nor take any action which could defeat such purpose. The State could not have interfered with the day-to-day functioning of a statutory authority. Section 72 of the 1973 Act authorizes the State to exercise superintendence and control over the acts and proceedings of the officers appointed under Section 3 and the authorities constituted under the Act but thereby the State cannot usurp the jurisdiction of the Board itself. The Act does not contemplate any independent function by the State except as specifically provided therein…. the State in exercise of its executive power could not have directed that lands meant for use for commercial purposes may be used for industrial purposes….. the power of the State Government to issue direction to the officers appended under Section 3 and the authorities constituted under the Act is confined only to matters of policy and not any other. Such matters of policy yet again must be in relation to discharge of duties by the officers of the authority and not in derogation thereof…. The direction of the Chief Minister being de'hors the provisions of the Act is void and of no effect.”
20. In Indore Municipality Vs. Niyamatulla (Dead through L.Rs.) AIR 1971 SC 97, this Court considered a case of dismissal of an employee by an authority other than the authority competent to pass such an order i.e. the Municipal Commissioner, the order was held to be without jurisdiction and thus could be termed to have been passed under the relevant Act. This Court held that “to such a case the Statute under which action was purported to be taken could afford no protection”.
21. In Tarlochan Dev Sharma Vs. State of Punjab & Ors. (2001) 6 SCC 260, this Court, after placing reliance upon a large number of its earlier judgments, observed as under:
“In the system of Indian democratic governance as contemplated by the Constitution, senior officers occupying key positions such as Secretaries are not supposed to mortgage their own discretion, volition and decision-making authority and be prepared to give way or being pushed back or pressed ahead at the behest of politicians for carrying out commands having no sanctity in law. The Conduct Rules of Central Government Services command the civil servants to maintain at all times absolute integrity and devotion to duty and do nothing which is unbecoming of a government servant. No government servant shall in the performance of his official duties, or in the exercise of power conferred on him, act otherwise than in his best judgment except when he is acting under the direction of his official superior.”
22. Therefore, the law on the question can be summarised to the effect that no higher authority in the hierarchy or an appellate or revisional authority can exercise the power of the statutory authority nor the superior authority can mortgage its wisdom and direct the statutory authority to act in a particular manner. If the appellate or revisional Authority takes upon itself the task of the statutory authority and passes an order, it remains unenforceable for the reason that it cannot be termed to be an order passed under the Act.
The Supreme Court went on to pass scathing remarks on the manner in which the power had been exercised by the State Government of Uttar Pradesh in the following terms;

42. In fact, such exercise by the State amounts to colourable exercise of power. In State of Punjab & Anr. Vs. Gurdial Singh & Ors. AIR 1980 SC 319, this Court dealing with such an issue observed as under:
“Legal malice is gibberish unless juristic clarity keeps it separate from the popular concept of personal vice. Pithily put, bad faith which invalidates the exercise of power - sometimes called colourable exercise or fraud on power and oftentimes overlaps motives, passions and satisfaction - is the attainment of ends beyond the sanctioned purposes of power by simulation or pretension of gaining a legitimate goal. If the use of the power is for the fulfilment of a legitimate object the actuation or catalysation by malice is not legicidal. The action is bad where the true object is to reach an end different from the one for which the power is entrusted, goaded by extraneous considerations, good or bad, but irrelevant to the entrustment. When the custodian of power is influenced in its exercise by considerations outside those for promotion of which the power is vested the court calls it a colourable exercise and is undeceived by illusion.” 
43. The State Government, being the revisional authority, could not entertain directly the applications by the said applicants, namely, Sh.Ugrasen and Sh. Manohar Lal. The action of the State Government smacks of arbitrariness and is nothing but abuse of power as the State Government deprived GDA to exercise its power under the Act, and deprived the aggrieved party to file appeal against the order of allotment. Thus, orders passed by the State Government stood vitiated. More so, it was a clear cut case of colourable exercise of power.
52. It is a fit case for ordering enquiry or initiating proceedings for committing criminal contempt of the Court as the parties succeeded in misleading the Court by not disclosing the true facts. However, we are not inclined to waste court’s time further in these cases. Our experience has been that the so-called administration is not likely to wake-up from its deep slumber and is never interested to redeem the limping society from such hapless situations. We further apprehend that our pious hope that administration may muster the courage one day to initiate disciplinary/criminal proceedings against such applicants/erring officers/employees of the authority, may not come true. However, we leave the course open for the State Government and GDA to take decision in regard to these issues and as to whether GDA wants to recover the possession of the land already allotted to these applicants in commercial area contrary to the Land Policy or value thereof adjusting the amount of compensation deposited by them, if any.

17 Jun 2010

Punishment for failure to compensate: Supreme Court

Declaring that accused can be imprisoned for failure to pay compensation directed by a court, the Supreme Court in a recent declaration set to terms the law to the effect that an accused was duty bound to pay compensation when so directed and for the failure to compensate he could be imprisoned or made liable to pay a fine. 

Reversing a decision of the Kerala High Court, the Supreme Court declare the law in the following terms;

21) Moving over to the question, whether a default sentence can be imposed on default of payment of compensation, this court in the case of Hari Singh v. Sukhbir Singh and in Balraj v. State of U.P, has held that it was open to all courts in India to impose a sentence on default of payment of compensation under sub-section (3) of Section 357. In Hari Singh v. Sukhbir Singh (supra), this court has noticed certain factors which requires to be taken into consideration while passing an order under the section:-

“11. The payment by way of compensation must, however, be reasonable. What is reasonable, may depend upon the facts and circumstances of each case. The quantum of compensation may be determined by taking into account the nature of crime, the justness of claim by the victim and the ability of accused to pay. If there are more than one accused they may be asked to pay in equal terms unless their capacity to pay varies considerably. The payment may also vary depending upon the acts of each accused. Reasonable period for payment of compensation, if necessary by instalments, may also be given. The Court may enforce the order by imposing sentence in default.”
22) This position also finds support in the case of R v. Oliver John Huish; [1985] 7 Cr. App. R.(S.) 272. The Lord Justice Croom – Johnson speaking for the Bench has observed:
“When compensation orders may possibly be made the most careful examination is required. Documents should be obtained and evidence either on affidavit or orally should be given. The proceedings should, if necessary, be adjourned, in order to arrive at the true state of the defendant’s affairs. Very often a compensation order is made and a very light sentence of imprisonment is imposed, because the court recognizes that if the defendant is to have an opportunity of paying the compensation he must be enabled to earn the money with which to do so. The result is therefore an extremely light sentence of imprisonment. If the compensation order turns out to be virtually worthless, the defendant has got off with a very light sentence of imprisonment as well as no order of compensation. In other words, generally speaking, he has got off with everything.”
23) The law laid down in Hari Singh v. Sukhbir Singh (supra) was reiterated by this court in the case of Suganthi Suresh Kumar v. Jagdeeshan, [(2002) 2 SCC 420]. The court observed:-
“5. In the said decision this Court reminded all concerned that it is well to remember the emphasis laid on the need for making liberal use of Section 357(3) of the Code. This was observed by reference to a decision of this Court in 1989 Cri LJ 116 Hari Singh Vs. Sukhbir Singh. In the said decision this Court held as follows:-
“The quantum of compensation may be determined by taking into account the nature of crime, the justness of the claim by the victim and the ability of accused to pay. If there are more than one accused they may be asked to pay in equal terms unless their capacity to pay varies considerably. The payment may also vary depending upon the acts of each accused. Reasonable period for payment of compensation, if necessary by instalments, may also be given. The court may enforce the order by imposing sentence in default.”
“10. That apart, Section 431 of the Code has only prescribed that any money (other than fine) payable by virtue of an order made under the Code shall be recoverable "as if it were a fine". Two modes of recovery of the fine have been indicated in Section 421(1) of the Code. The proviso to the Sub-section says that if the sentence directs that in default of payment of the fine, the offender shall be imprisoned, and if such offender has undergone the whole of such imprisonment in default, no court shall issue such warrant for levy of the amount.”
The court further held:-
“11. When this Court pronounced in Hari Singh v. Sukhbir Singh (supra) that a court may enforce an order to pay compensation "by imposing a sentence in default" it is open to all courts in India to follow the said course. The said legal position would continue to hold good until it is overruled by a larger bench of this court. Hence learned single judge of High Court of Kerala has committed an impropriety by expressing that the said legal direction of this Court should not be followed by the subordinate courts in Kerala. We express our disapproval of the course adopted by the said judge in Rajendran v. Jose 2001 (3) KLT 431. It is unfortunate that when the Sessions judge has correctly done a course in accordance with the discipline the Single judge of the High Court has incorrectly reversed it.”
24) In order to set at rest the divergent opinion expressed in Kunhappu’s case (supra), this Court in the case of Vijayan v. Sadanandan K. and Anr., [(2009) 6 SCC 652], after noticing the provision of Section 421 and 431 of Cr.PC, which dealt with mode of recovery of fine and Section 64 of IPC, which empowered the courts to provide for a sentence of imprisonment on default of payment of fine, the Court stated:
“17. We have carefully considered the submissions made on behalf of the respective parties. Since a decision on the question raised in this petition is still in a nebulous state, there appear to be two views as to whether a default sentence on imprisonment can be imposed in cases where compensation is awarded to the complainant under Section 357(3) Cr.P.C. As pointed out by Mr. Basant in Dilip S. Dahanukar's case, the distinction between a fine and compensation as understood under Section 357(1)(b) and Section 357(3) Cr.P.C. had been explained, but the question as to whether a default sentence clause could be made in respect of compensation payable under Section 357(3) Cr.P.C, which is central to the decision in this case, had not been considered.” 
The court further held:-
“22. The provisions of Sections 357(3) and 431 Cr.P.C., when read with Section 64 IPC, empower the Court, while making an order for payment of compensation, to also include a default sentence in case of non-payment of the same. The observations made by this Court in Hari Singh's case (supra) are as important today as they were when they were made and if, as submitted by Dr. Pillay, recourse can only be had to Section 421 Cr.P.C. for enforcing the same, the very object of Sub-section (3) of Section 357 would be frustrated and the relief contemplated therein would be rendered somewhat illusory.”
25) In Shantilal v. State of M.P., [(2007) 11 SCC 243], it is stated, that, the sentence of imprisonment for default in payment of a fine or compensation is different from a normal sentence of imprisonment. The court also delved into the factors to be taken into consideration while passing an order under Section 357(3) of the Cr.PC. This court stated:-
“The term of imprisonment in default of payment of fine is not a sentence. It is a penalty which a person incurs on account of non-payment of fine. The sentence is something which an offender must undergo unless it is set aside or remitted in part or in whole either in appeal or in revision or in other appropriate judicial proceedings or “otherwise”. A term of imprisonment ordered in default of payment of fine stands on a different footing. A person is required to undergo imprisonment either because he is unable to pay the amount of fine or refuses to pay such amount. He, therefore, can always avoid to undergo imprisonment in default of payment of fine by paying such amount. It is, therefore, not only the power, but the duty of the court to keep in view the nature of offence, circumstances under which it was committed, the position of the offender and other relevant considerations before ordering the offender to suffer imprisonment in default of payment of fine.”
26) In Kuldip Kaur v. Surinder Singh and anr. (AIR 1989 SC 232), in the context of Section 125 Cr.PC observed that sentencing a person to jail is sometimes a mode of enforcement. In this regard the court stated:-
“6. A distinction has to be drawn between a mode of enforcing recovery on the one hand and effecting actual recovery of the amount of monthly allowance which has fallen in arrears on the other. Sentencing a person to jail is a 'mode of enforcement'. It is not a 'mode of satisfaction' of the liability. The liability can be satisfied only by making actual payment of the arrears. The whole purpose of sending to jail is to oblige a person liable to pay the monthly allowance who refuses to comply with the order without sufficient cause, to obey the order and to make the payment. The purpose of sending him to jail is not to wipe out the liability which he has refused to discharge. Be it also realised that a person ordered to pay monthly allowance can be sent to jail only if he fails to pay monthly allowance 'without sufficient cause' to comply with the order. It would indeed be strange to hold that a person who 'without reasonable cause' refuses to comply with the order of the Court to maintain his neglected wife or child would be absolved of his liability merely because he prefers to go to jail. A sentence of jail is no substitute for the recovery of the amount of monthly allowance which has fallen in arrears.”
27) From the above line of cases, it becomes very clear, that, a sentence of imprisonment can be granted for default in payment of compensation awarded under Section 357(3) of Cr.PC. The whole purpose of the provision is to accommodate the interests of the victims in the criminal justice system. Sometimes the situation becomes such that there is no purpose is served by keeping a person behind bars. Instead directing the accused to pay an amount of compensation to the victim or affected party can ensure delivery of total justice. Therefore, this grant of compensation is sometimes in lieu of sending a person behind bars or in addition to a very light sentence of imprisonment. Hence on default of payment of this compensation, there must be a just recourse. Not imposing a sentence of imprisonment would mean allowing the accused to get away without paying the compensation and imposing another fine would be impractical as it would mean imposing a fine upon another fine and therefore would not ensure proper enforcement of the order of compensation. While passing an order under Section 357(3), it is imperative for the courts to look at the ability and the capacity of the accused to pay the same amount as has been laid down by the cases above, otherwise the very purpose of granting an order of compensation would stand defeated.

xxx

29) Section 431 clearly provides that an order of compensation under Section 357 (3) will be recoverable in the same way as if it were a fine. Section 421 further provides the mode of recovery of a fine and the section clearly provides that a person can be imprisoned for non-payment of fine. Therefore, going by the provisions of the code, the intention of the legislature is clearly to ensure that mode of recovery of a fine and compensation is on the same footing. In light of the aforesaid reasoning, the contention of the accused that there can be no sentence of imprisonment for default in payment of compensation under Section 357 (3) should fail.
30) A similar position is also prevalent in other countries. In the United Kingdom, Section 82 (3) of Magistrates’ Courts Act, 1980 allows for a sentence of imprisonment for default in payment of a fine or any financial order. The Section reads:-
“Where on the occasion of the offender’s conviction a magistrates’ court does not issue a warrant of commitment for a default in paying any such sum as aforesaid or fix a term of imprisonment under the said Section 77(2) which is to be served by him in the event of any such default, it shall not thereafter issue a warrant of commitment for any such default or for want of sufficient distress to satisfy such a sum unless:-
(a) he is already serving a sentence of custody for life, or a term of imprisonment, detention in a young offender institution, or detention under Section 9 of the Criminal Justice Act, 1982; or
(b) the court has since the conviction inquired into his means in his presence on at least one occasion.”
31) In Australia, under Section 4 of the Sentencing Act, 1997 the definition of “fine” includes a compensation order. Procedure for enforcement of fines is provided for in Section 47(7) of the Act and provides for a sentence of imprisonment or default in payment of fine.

16 Jun 2010

Relationship between High Courts and Supreme Court: The law revisited

When ever an issue arises at the nature of Indian Constitution, there always remains a dispute. While some commentrators call the Constitution of India as a federal set-up with a unitary bias, some experts (such as K.C. Wheare) call it a quasi-federal set-up. Some experts (such as Granville Austin) call it an example of co-operative federalism. In this post we cover one of the critical requirements of federalism; two parallel sets of judicial institutions dealing with federal and provincial laws. The same however does not hold true in the Indian context where both the High Courts and the Supreme Court are called upon to interpret and decide issues relating to both State and Parliamentary laws. In this context we trace the relationship between the High Courts and the Supreme Court, as beautifully enunciated in a Supreme Court decision, which repels all doubts over the presence of federalism in the judicial setup of the country.

In its decision in Tirupati Balaji Developers Pvt. Ltd. v. State of Bihar reported at AIR 2004 SC 2351 a division Bench of the Supreme Court comprising of Justice R.C. Lahoti and Justice Ashok Bhan enunciated the law on this subject. The problem arose with the High Court of Bihar refusing to comply with the directions of the Supreme Court in one of the matters. In this perspective, Justice Lahoti described the nature of relationship between the two constitutional courts in the following terms;


8. Under the constitutional scheme as framed for the judiciary, the Supreme Court and the High Courts both are courts of record. The High Court is not a court 'subordinate' to the Supreme Court. In a way the canvass of judicial powers vesting in the High Court is wider Inasmuch as it has jurisdiction to issue all prerogative writs conferred by Article 226 of the Constitution for the enforcement of any of the rights conferred by Part III of the Constitution and for any other purpose while the original jurisdiction of Supreme Court to issue prerogative writs remains confined to the enforcement of fundamental rights and to deal with some such matters, such as Presidential election or inter-state disputes which the Constitution does not envisage being heard and determined by High Courts. The High Court exercises power of superintendence under Article 227 of the Constitution over all subordinate courts and tribunals; the Supreme Court has not been conferred with any power of superintendence. If the Supreme Court and the High Courts both were to be thought of as brothers in the administration of justice, the High Court has larger jurisdiction but the Supreme Court still remains the elder brother. There are a few provisions which give an edge, and assign a superior place in the hierarchy, to Supreme Court over High Courts. So far as the appellate jurisdiction is concerned, in all civil and criminal matters, the Supreme Court is the highest and the ultimate court of appeal. It is the final interpreter of the law. Under Article 139-A, the Supreme Court may transfer any case pending before one High Court to another High Court or may withdraw the case to itself. Under Article 141 the law declared by the Supreme Court shall be binding on all courts, including High Courts, within the territory of India. Under Article 144 all authorities, civil and judicial, in the territory of India -- and that would include High Court as well -- shall act in aid of the Supreme Court.
9. In a unified hierarchical judicial system which India has accepted under its Constitution, vertically the Supreme Court is placed over the High Courts. The very fact that the Constitution confers an appellate power on the Supreme Court over the High Courts, certain consequences naturally flow and follow. Appeal implies in its natural and ordinary meaning the removal of a cause from any inferior court or tribunal to a superior one for the purpose of testing the soundness of decision and proceedings of the inferior court or tribunal. The superior forum shall have jurisdiction to reverse, confirm, annul or modify the decree or order of the forum appealed against and in the event of a remand the lower forum shall have to re-hear the matter and comply with such directions as may accompany the order of remand. The appellate jurisdiction inherently carries with it a power to issue corrective directions binding on the forum below and failure on the part of latter to carry out such directions or show disrespect to or to question the propriety of such directions would -- it is obvious -- be destructive of the hierarchical system in administration of justice. The seekers of justice and the society would lose faith in both.
10. In Shankar Ramachandra Abhankarb v. Krishnaji Dattatraya Bapat -- , this Court pointed out that appeal is the right of entering the superior court and invoking its aid and interposition to redress the error of the court below. There are two important postulates of constituting the appellate jurisdiction; (i) the existence of the relation of superior and inferior court; and (ii) the power in the former to review decisions of the latter. Such jurisdiction is capable of being exercised in a variety of forms. An appeal is a process of civil law origin and removes a cause, entirely subjecting the facts as well as the law, to a review and a retrial.
11. The very conferral of appellate jurisdiction carries with it certain consequences. Conferral of a principal substantive jurisdiction carries with it, as a necessary concomitant of that power, the power to exercise such other incidental and ancillary powers without which the conferral of the principal power shall be rendered redundant. As held by their Lordships of the Privy Council in Nagendra Nath Dey and Anr. v. Suresh Chandra Dey and Ors., AIR 1932 Privy Council 165 (Sir Dinshah Mulla speaking for the bench of five) an appeal is an application by a party to an appellate Court asking it to set aside or revise a decision of a subordinate Court. The appeal does not cease to be an appeal though irregular or incompetent. Placing on record his opinion, Subramania Ayyar, J. as a member of Full Bench (of five judges) in Chappan v. Moidin Kutti, (1899) 22 ILR Mad. 68 (at p.80) stated inter alia that appeal is "the removal of a cause or a suit from an inferior to a superior Judge or Court for re-examination or review". According to Wharton's Law Lexicon such removal of a cause or suit is for the purpose of testing the soundness of the decision of the inferior Court. "In consonance with this particular meaning of appeal, 'appellate jurisdiction' means "the power of a superior Court to review the decision of an inferior Court". "Here the two things which are required to constitute appellate jurisdiction, are the existence of the relation of superior and inferior Court and the power on the part of the former to review decisions of the latter. This has been well put by Story:- "The essential criterion of "appellate jurisdiction is, that it revises and corrects the proceedings in a cause already instituted and does not create that cause. In reference to judicial tribunals an appellate jurisdiction, therefore, necessarily implies that the subject-matter has been already instituted and acted upon by some other Court, whose judgment or proceedings are to be revised," (Section 1761, Commentaries on the Constitution of the United States)." 
12. Adapting the abovesaid pronouncements of authority as guiding the resolution of the issue in our hands we may venture to say that in spite of the Supreme Court and the High Courts being both constitutionally independent of each other and both being the Courts of record, to the extent of exercise of appellate jurisdiction certainly the Supreme Court exercises a superior jurisdiction and hence is a superior Court than the High Courts which exercise in that context an inferior or subordinate jurisdiction.
13. What is the significance of creating an appellate forum? And, what is sought to be achieved by creation of such hierarchy in the justice administration system ?
"The Appellate Court plays an important role in securing high standards of judicial behavior in court............... Bearing this in mind, the role of the Court of Appeal in checking judges should not be underestimated..................The Court of Appeal regards itself as fulfilling a disciplinary function...........The Court of Appeal carefully phrases its criticism. The Court usually makes clear that they do not doubt that "the judge was actuated by the best motives" or that "in a strong desire to do justice a judge may make mistakes", but they use a language clear enough to ensure that the judge to whom the criticism is addressed, as well as other judges, get their message." (See --Judges on Trial, Shimon Shetreet, pp.201-202). "The role of the Court of Appeal in checking judicial conduct and in securing high standards of judicial behavior in court is manifold. The Court of Appeal censures and criticized judicial misconduct in particular cases and corrects injustices resulting from such misconduct. Whether it reverses the judgment, quashes the conviction, reduces the sentence, or changes the judgment in any manner, the disapproval and condemnation of the misconduct restores the public confidence in the courts which might otherwise have been impaired. The party offended or prejudiced, and the public at large, might be tempted to attribute misconduct of a particular judge to the judiciary as a whole. The disapproval and criticism of the appellate court, even without amending the judgment, eliminates such danger and restores the scales of justice to their proper balance." (ibid, pp.203-204).
14. In Chapter IV of the Constitution of India, bearing the heading -the Union Judiciary, Articles 132 to 136 deal with appellate jurisdiction of the Supreme Court. Of all these Articles, it is Article 136 which is worded in the widest possible terms. A plenary jurisdiction exercisable on assuming appellate jurisdiction subject to grant of special leave against any kind of judgment or order made by any Court or Tribunal and in any cause or matter has been embodied and vested in the Supreme Court. It is an extraordinary jurisdiction vested by the Constitution in the Court with implicit trust and faith and extraordinary care and caution has to be observed in the exercise of this jurisdiction. Article 136 does not confer a right of appeal on a party but vests a vast discretion in the Supreme Court meant to be exercised by the considerations of justice, call of duty and eradicating injustice.
15. The extent and dimension of jurisdiction conferred on the Supreme Court was well brought out by Chief Justice M.C. Mahajan in the case of Dhakeswari Cotton Mills v. Commissioner of Income-tax, West Bengal - AIR 1955 SC 65 wherein he said -

"It is not possible to define with any precision the limitations on the exercise of the discretionary jurisdiction vested in this Court by the constitutional provision made in Article 136. The limitations, whatever they be, are implicit in the nature and character of the power itself. It being an exceptional and overriding power, naturally it has to be exercised sparingly and with caution and only in special and extraordinary situations. Beyond that it is not possible to fetter the exercise of this power by any set formula or rule. .................. It is, however, plain that when the Court reaches the conclusion that a person has been dealt with arbitrarily or that a court or tribunal within the territory of India has not given a fair deal to a litigant, then no technical hurdles of any kind like the finality of finding of facts or otherwise can stand in the way of the exercise of this power because the whole intent and purpose of this Article is that it is the duty of the Court to see that injustice is not perpetuated or perpetrated by decisions of courts and tribunals because certain laws have made the decisions of these courts or tribunals final and conclusive."
16. The Founding Fathers of the Constitution devised a justice delivery system in the country as one homogenous in content, taking care of independence and hierarchy both, and holding the scales of balance even while doing so. The Union judiciary and the State judiciary are undoubtedly independent of each other except for a few areas relating to jurisdiction as we have very briefly indicated hereinbefore. However, at the same time, we cannot resist laying emphasis on the appellate hierarchy which, examined in the correct perspective, is a factor strongly contributing towards the independence of the judiciary and securing finality in adjudication within the system and its insulation from any outside interference or correction. The delicate balance has been carefully crafted and sought to be achieved by independence and interconnection -- both existing simultaneously -- of the Supreme Court and the High Courts. There are 'relationships of tension as well as those of cooperation', to borrow the expression employed by Frank M. Coffin in his work 'On Appeal - Courts, Lawyering, and Judging'. He says, "on the sensitive and sophisticated application of the various doctrines governing these relationships depends in large part the effective functioning of cur unique form of federalism." (at pp.52-53)
17. Delivering a lecture on 25.7.1963, in Centenary Lecture Series organised on the occasion of Centenary Celebration of the Advocates Association of Western India, Motilal C. Setalvad -- the great Indian jurist dealt with the role of the Supreme Court under the Constitution and said -

"the exercise by the court of its jurisdiction under article 136 bears witness to the wisdom and foresight of the court. That article confers on the court an overriding power to examine the decision of all courts and tribunals in the country, a power which is larger than the Crown prerogative exercised by the Privy Council and which is not capable of being restricted by ordinary legislation. The court has refused to define the limitations on the power under that article and laid down that these were inherent in its exceptional and overriding nature." (Centenary Souvenir, p. 134).
18. How the Supreme Court and the High Court have to deal with each other specially when the Supreme Court is exercising its appellate jurisdiction over a decision by, or proceedings -- concluded or pending in the High Court? The Constitution has clearly divided the jurisdiction between the two institutions and while doing so these institutions have to have mutual respect for each other. The framers of the Constitution did not think it necessary to specifically confer power on the Supreme Court to give a command to the High Court for they were the men of vision and foresight. They knew that all the constitutional functionaries and institutions would act in the best interest of norms and traditions consistent with democracy and constitutionalism, set down in and discernible from the Constitution and as handed down by history and generations of judges. Everyone would, it was expected, keep within its bounds and would not overstep its limits so that the idea is and the values remain a living reality and do not become either an intrusion or an illusion. The constitutional and democratic institutions, complementing and supplementing each other, would lend strength to these handed down traditions and would also contribute to developing such rich traditions as would be respected and hailed by posterity. This would result in strengthening the working of the Constitution. In the realms of constitutionalism the values of mutual trust and respect between the functionaries, nurtured by tradition, alleviate the need to codify the rules of the relationship. Experience shows that any rigid codification of such delicate relationship is advantageous to those bent upon vilification. A rigid written law makes it difficult to maintain that dignity which is better and rightly left to be perceived by right-minded people who zealously uphold the dignity of others as they do their own.
19. An institution dealing with another institution under the Constitution shall have to observe grace and courtesy. No judge shall criticize another judge and certainly not strongly. Any departure therefrom needs to be corrected at the earliest and in the larger interest. It is obligatory on an appellate forum to correct such deviation from rule brought to its notice as having been committed by a jurisdiction subject to appeal and if it does not do so ft fails in its duty. Undoubtedly, the corrective step too is taken carefully with courtesy and respect and not by way of harsh criticism. An instance quoted by David Pannick is worthy of reference and reverence. In a 1971 case Mr. Justice Lawson gave his reasons for doubting the correctness of an earlier decision of the Court of Appeal. Nevertheless, he concluded, 'I am bound by the decision in [the earlier case], although I am compelled to say, again with the greatest respect, that I believe it to have been wrongly decided'. The Court of Appeal was very unhappy. Lord Justice Davies replied, "with the greatest respect to Lawson J', that he thought that 'those observations were out of place. It is unusual, and, I am bound to say, undesirable, in my opinion, for a judge sitting at first instance.....to express the opinion, although accepting that he is bound by it, that a decision, and a fairly recent decision, of this court was wrong.' (Judges, pp. 127-128).
20. A great judge and jurist Benjamin N. Cardozo has a little bitter truth to describe. Cautioning the judges against the official-in-judge being permitted to swallow up the man-in-him, Benjamin Cardozo says that there have been judges in the past who suffered that disaster. However, what Cardozo has in mind is something more than "the egotism that displays itself in harsh and overbearing manners, in explosive vigour of voice etc. Exuberances such as these are at times the result of infirmities of temper not unknown altogether to the bench though happily uncommon; more often they are the defensive appliances of weakness or incapacity, conscious of its failings, and hopeful to divert attention by what seems to be a manifestation of its strength". "The slumbering beast is in us, and may be waked to life and fury if we feed him overmuch. The ravening official will seek to swallow up the man. I interpret the invitation to be with you today as an expression of your judgment that whatever mistakes I may have made -- and I know that they have been more than I like to figure or remember -- I have at least avoided this one, I have not allowed the official to swallow up the man. I don't mean that I am entitled to a great deal of credit for so modest an achievement In a court where the tradition of courtesy and equity is so ingrained and inveterate as it is in the Court of Appeals, one would have to be a pretty hardened sort of sinner to be guilty of the particular form of wrongdoing that has its origin in the pride of office. But then, when you come to think of it, virtues are important in the inverse order to the credit that is due to those who cultivate and practice them. No one of us struts about with satisfaction for the self-restraint involved in refraining from the crime of homicide, yet if the importance of the virtue were the measure of the credit we should all be crowling and cawing with the pride of moral excellence. So I don't assume to pride myself on the very modest virtue of being merely a human being." (Selected Writings of Benjamin Nathan Cardozo, pp.427-428).
21. Just two or three instances of Indian judiciary available in Law Reports deserve a reference and would suffice too. In Bharat Builder Pvt. Ltd. and Ors. v. Parijat Flat Owners Coop. Housing Society Ltd. - while disposing of an earlier SLP the Supreme Court desired the High Court to decide a plea by the convenient means of a review petition expecting the High Court "that the questions shall be addressed", "regardless of the technical limitations of the review petition". The High Court dismissed the review application and observed inter alia -- "the issue posed to be examined as directed by the Supreme Court is not the issue which was raised in the trial court or the appellate court and it is not permissible for us to go into such a fresh issue in this review application, first time. In view of this we do not find any merit in the contentions of the applicant and review application is, therefore, liable to be rejected". This Court referred to Article 144 of the Constitution and observed that it was imperative for the High Court to have decided the questions that it was required to be decided by the earlier order of this Court. The order of the High Court was set aside and the review petition was directed to be restored on the file of the High Court by this Court once again stating "the High Court shall scrupulously follow the requirements of the (earlier) order of this Court." In Bharat Earth Movers v. Commission of Income Tax, Karnataka - the Supreme Court seized of a hearing in a matter had issued a direction to the Income-tax Appellate Tribunal to frame a supplementary statement of case so as to enable this Court to appreciate the facts correctly and in that light to settle the law. The Tribunal was remiss in compliance. On this being brought to the notice of the Court, this Court observed -- "Article 144 of the Constitution obliges all authorities, civil and judicial, in the territory of India to act in aid of the Supreme Court. Failure to comply with the directions of this Court by the Tribunal has to be deplored. We expect the Tribunal to be more responsive and more sensitive to the directions of this Court. We leave this aspect in this case by making only this observation."
22. In Assistant Collector of Central Excise Chandan Nagar, West Bengal v. Dunlop India Ltd. and Ors. - this Court reiterated a few observations from an earlier case (Siliguri Municipality v. Amalendu Das - which read as -"We mean no disrespect to the High Court in emphasizing the necessity for self-imposed discipline in such matters in obeisance to such weighty institutional considerations like the need to maintain decorum and comity. So also we mean no disrespect to the High Court in stressing the need for self-discipline on the part of the High Court in passing interim orders without entering into the question of amplitude and width of the powers of the High Court to grant interim relief." Referring to what was said in Cassell & Co. Ltd. v. Broome - (1972) 1 All England Reports 801 the Court said -- We hope it will never be necessary for us to say so again that "in the hierarchical system of courts" which exists in our country, "it is necessary for each lower tier", including the High Court, "to accept loyally the decisions of the higher tiers". "It is inevitable in hierarchical system of courts that there are decisions of the Supreme Appellate Tribunal which do not attract the unanimous approval of all members of the judiciary.....But the judicial system only works if someone is allowed to have the last word and that last word, once spoken, is loyally accepted." The better wisdom of the court below must yield to the higher wisdom of the court above. That is the strength of the hierarchical judicial system." Though qualifying its statement by the expression "it is needless to add", yet the court felt the need of adding in its judgment that under Article 144 all authorities, civil and judicial (High Courts included) in the territory of India shall act in aid of the Supreme Court.
23. We are inclined to extract and reproduce a very instructive passage, apposite to the context, from the judgment by a Constitution Bench headed by Chief Justice Chandrachud in State of Punjab and Ors. v. Jagdev Singh Talwandi -- . The excerpt is self explanatory of factual backdrop and is as under-- "We would like to take this opportunity to point out that serious difficulties arise on account of the practice increasingly adopted by the High Courts, of pronouncing the final order without a reasoned judgment. It is desirable that the final order which the High Court intends to pass should not be announced until a reasoned judgment is ready for pronouncement. Suppose, for example, that a final order without a reasoned judgment is announced by the High Court that a house shall be demolished, or that the custody of a child shall be handed over to one parent as against the other, or that a person accused of a serious charge is acquitted, or that a statute is unconstitutional or, as in the instant case, that a detenu be released from detention. If the object of passing such orders is to ensure speedy compliance with them, that object is more often defeated by the aggrieved party filing a special leave petition in this Court against the order passed by the High Court. That places this Court in a predicament because, without the benefit of the reasoning of the High Court, it is difficult for this Court to allow the bare order to be implemented. The result inevitably is that the operation of the order passed by the High Court has to be stayed pending delivery of the reasoned judgment. It may be thought that such orders are passed by this Court and therefore this is no reason why the High Courts should not do the same. We would like to point out respectfully that the orders passed by this Court are final and no appeal lies against them. The Supreme Court is the final court in the hierarchy of our courts. Besides, order without a reasoned judgment are passed by this Court very rarely, under exceptional circumstances. Orders passed by the High Court are subject to the appellate jurisdiction of this Court under Article 136 of the Constitution and the other provisions of the concerned statues. We thought it necessary to make these observations in order that a practice which is not very desirable and which achieves no useful purpose may not grow out of its present infancy."
24. The Supreme Court, exercising its appellate jurisdiction, is called upon to issue directions which is not only its privilege as appellate forum but often a necessity for meeting the demands of justice and effective exercise of appellate power. Yet, it cautiously abstains from issuing any 'directions' as such and rather uses the alternative and polite expressions like -- "we request the High Court", "the High Court is expected to", "we trust and hope that the High Court will/shall", spelled out by courtesy and the respect and regards which the Supreme Court has -- and must have -- for High Courts. The practice has developed and gained ground as tradition. Barring may be an instance or two, which too must have been avoidable, there has been no occasion either for any disrespect having been shown by the Supreme Court to the High Court or vice versa or for this Court having been called upon to take cognizance of any instance of disrespect shown to it by any High Court.
25. Harry T. Edwards, Chief Judge, U.S. Court of Appeals for the D.C. Circuit emphasises self-restraint as helping build up the Courts constitutional legitimacy overtime inasmuch as judicial self-restraint helps both to generate and to preserve judicial independence. In the context of dealing of judges by judges, he uses the term 'collegiality' and then he mentions the relationship between collegiality and independence by saying --

".....an aspect of judicial practice that has seemed increasingly important to me over the last decade: the practice of collegiality. By collegiality I mean an attitude among judges that says, we may disagree on some substantive issues, but we all have a common interest and goal in getting the law right. ...... We are, in a word, one another's colleagues. An attitude of collegiality means, in practice, that we respect one another's views, listen to one another, and, where possible, aim to identify areas of agreement. ....... Collegiality does mean, however, that, even when I disagree with another judge, I recognize that we are part of a common endeavor, and that each of us is, almost always, acting In good faith according to his or her own view of what the law requires. ....... Because I see myself as engaged in a common endeavor with my judicial colleagues, it follows that I have the interests of the judiciary as a whole at heart. ........ When there is little or no judicial collegiality, there is less incentive for judges to exercise self-restraint. ....... collegiality is important not only for working together effectively, but also at a deeper structural level. An attitude of judicial collegiality helps reinforce judges' incentives to behave in a principled and responsible fashion. I think that any discussion of judicial independence, either at the level of institutions or individuals, should take this practice of collegiality into account." (See -- Judicial Norms: A Judge's Perspectives - Washington University School of Law).
26. We would end our this discussion by quoting what Oliver Wendell Holmes Jr. nearing his 60th birthday, and unaware that he was shortly to be elevated from the office of Chief Justice of Massachusetts to the Supreme Court of the United States said --

"I ask myself, what is there to show for this half lifetime that has passed? I look into my book in which I keep a docket of the decisions of the full court which falls to me to write, and find about a thousand cases. A thousand cases, many of them upon trifling or transitory matters, to represent nearly a half a lifetime. A thousand cases when one would have liked to study to the bottom and say his say on every question which the law has presented ... I often imagine Shakespeare or Napoleon summing himself up and thinking: 'Yes, I have written 5,000 lines of solid gold and a good deal of padding, who would have covered the Milky Way with words that outshone the stars'. We are lucky enough if we can give a sample of our best and if in our hearts we can feel that it has been nobly done." (Extracted and cited by J.H. Wootten, "Creativity in the Law" (1972) 4 Aust J Forensic Sciences, at 107)
27. Cooperation can be achieved and tension avoided between two judicial Institutions if only judicial collegiality is learnt, nobility prevails and Holmes' humility rules. 
28. The constitutional jurist H.M. Seervai in his work 'Constitutional Law of India, Fourth Edition, Silver Jubilee Edition, Vol.3, in para 25.481) refers to the "values" of our Constitution and says -- "the word 'values' in plural means one's principles or standard, one's judgment and what is available as important in life". However, the interpretation of the provisions of our Constitution cannot fluctuate with the different values in which different Judges believe. Seervai quotes B.N. Rau, the eminent constitutional advisor and states--"the only values which can be said to underlie our Constitution is best expressed in the Preamble to the draft Constitution presented to the Constituent Assembly by Sir B.N. Rau, its eminent Constitutional Adviser. It ran: "We, the people of India, seeking to promote the common good, do hereby, through our chosen representatives, enact, adopt and give to ourselves this Constitution". In our opinion, it is the concept of the common good which ought to guide us -- as institutions and as individuals -- in testing times.
29. While quoting the several authorities and references as hereinabove we should not be misunderstood as calling 'the Supreme Court a superior Court and the High Court an inferior court'; all that we wish to say is that jurisdictionally, and in the hierarchical system, so far as the exercise of appellate jurisdiction is concerned, undoubtedly the Supreme Court is a superior forum and the High Court an inferior forum in the sense that the latter is subjected to jurisdiction, called 'appellate jurisdiction', of the former
30. The very existence of appellate jurisdiction obliges the lower jurisdiction to render all of its assistance to the higher jurisdiction to enable the exercise of appellate jurisdiction fully and effectively. The lower forum may be called upon to certify its record of case and proceedings to the superior forum. The superior forum may stand in need of some information which being in the possession or knowledge of the subordinate forum, shall have to be made available only by it. The superior forum may issue a stay order or restraint order or may suspend, expedite or regulate the proceedings in the subordinate forum. During or at the end of exercise of the appellate jurisdiction any direction made by the higher forum shall have to be complied with by the lower forum, otherwise the hierarchy becomes meaningless.

15 Jun 2010

No failure till age of 14: High Court

In a recent decision the Madras High Court has declared that no school is entitled to fail a student uptil the age of 14 years. Referring to the recently enacted Right of Children to Free and Compulsory Education Act, 2009 and holding that it created a statutory bar on the school from failing a child till the age of 14 years, the promotion of a student during those years was automatic. Allowing a writ petition filed by a student who had been withheld in class VI by the school administration for having failed in the examination, the High Court declared that in view of the change in law, such a restriction could not be imposed by the school.

The Madras High Court in Kalaikottuthayam v. State of Tamil Nadu observed inter alia as under;
21. Insofar as the higher education is concerned, the State can prescribe higher marks than the one prescribed by the Central agency namely NCTE, AICTE and MCI and the same is settled as per the judgment of the Supreme Court reported in (2004) 4 SCC 513 (State of Tamil Nadu v. S.V.Bratheep).  Insofar as the elementary education is concerned, the same having been declared as a fundamental right upto the age of 14 by insertion of Article 21A of the Constitution of India in the year 2002 and the statutory protection given under Act 35 of 2009, which came into force from 1.4.2010, the students upto the age of 14 are entitled to exercise the said fundamental right as well as the statutory rights conferred on them by the Constitution of India as well as the Right of Children to Free and Compulsory Education Act, 2009.  It is also settled proposition of law that even a candidate who has successfully completed 10th standard Board examinations cannot be denied admission for a particular group in the same school in XI standard on the ground that he has not scored the cut-off marks for admission to the particular group.  The said issue was considered by the Supreme Court in the decision reported in (1995) 5 SCC 512 (Principal Cambridge School v. Payal Gupta) and the supreme Court in paragraphs 5 to 10 held that prescription of certain percentage of marks for admission to a particular group in XI standard of the students, who passed out in 10th standard in the same school is unsustainable and no one can be denied of admission in the XI standard on the ground that he has not secured the cut-off marks for admission to a particular group in XI standard.  The said Judgment was followed by the Division Bench of this Court in the decision reported in (2007) 4 MLJ 400 (D. Aravinth v. State of Tamil Nadu) which is also approved by the Supreme Court in the decision reported in (2009) 1 SCC 794 (Principal Kendriya Vidyalaya v. Saurabh Chaudhary).
22. Section 30 of Act 35 of 2009 is also taken note of by the Division Bench of this Court in the decision reported in 2010 WLR 401 (Krishnagiri District Private Schools Association v. The State of Tamil Nadu & Another) while considering the validity of Uniform System of School Education Act, 2010 (Tamil Nadu Act 8 of 2010).  In the said judgment the Division Bench of this Court in paragraph 55(iv) struck down Section 3(2)(b) of the State Act as the same is in contravention of Section 30(1) of the Central Act.  Section 3(2)(b) of the State Act enables the authorities to follow the norms for conducting examinations.  The said Act of the State is made applicable from the academic year 2010-2011 in the light of the implementation of Act 35 of 2009 with effect from 1.4.2010.
23. Thus, there is a statutory prohibition for failing a student and retaining in the same standard for any reason, including the reason that the student has scored very low marks in the examinations conducted, either in the class examinations or in Term examinations including final examinations. When the Central Act prohibits holding back of any child in any class in the age group of 6 to 14, who will normally be undergoing classes in standards 1 to 8 as per the definition mentioned above, I am of the view that the first respondent Department or any other officer is not competent to issue any norms for giving promotion to students of standards 1 to 8, as the promotion to higher class is automatic.  Even though the conduct of examination is not prohibited under Section 16, getting pass marks in number of subjects is not required for giving promotion to higher class.  The object behind the said provisions is that no student should leave the school within the age group of 6 to 14 for any reason, i.e., due to non-payment of fee, not passing the examination, etc.  When right to education upto the age of 14 is guaranteed as a fundamental right under Article 21A of the Constitution of India, and right to free and compulsory education also has now been declared as a statutory right apart from fundamental right as per Act 35 of 2009 with effect from 1.4.2010, as rightly contended by the learned counsel for the petitioner the department cannot issue any circular giving direction to the third respondent or any other school authority to give promotion by fixing any norms to students of standards 1 to 8.  
24. In fine, it is ordered that the action of the department in issuing circular dated 5.4.2010 which is admittedly after coming into force of the Central Act 35 of 2009 with effect from 1.4.2010 is clearly illegal and the same is declared as invalid.  The third respondent following the circular only took the impugned decision of holding back the son of the petitioner in 6th standard due to scoring of low marks in the annual examination.  When the circular dated 5.4.2010 is declared as invalid and the petitioner's son having established his right to get admission in 7th standard in terms of sections 4, 16 and 30 of the Act, which prohibits holding back of any student in the same class, the action of the third respondent in holding back the petitioner's son in 6th standard without promoting him to the 7th standard is also illegal.
25. On the basis of the above finding and in the light of Article 21A of the Constitution of India as well as the provisions contained in Act 35 of 2009, the impugned order is set aside and the respondents are directed to promote/admit the son of the petitioner in 7th standard in the third respondent school forthwith.  As the learned counsel for the petitioner during the course of the arguments submitted that the petitioner is willing to apply for Transfer Certificate and the learned counsel for the third respondent school also expressed her willingness to issue Transfer Certificate, it is open to the petitioner to apply for the Transfer Certificate and get admitted his son in 7th standard in any other school of his choice.  It is made clear that as Section 15 of the Act prohibits expulsion of a child from the School, the third respondent cannot issue Transfer Certificate compulsorily, without any request made by the petitioner.  If Transfer Certificate is to be issued to the petitioner's son by the third respondent on the voluntary request made by the petitioner, the third respondent is directed to issue Transfer Certificate stating that the son of the petitioner, namely Tamil Prabhakara Udayam is promoted to 7th standard.