All India Institute of Medical Sciences v. Sanjiv Chaturvedi & Ors.
INDIRA BANERJEE, J. 1. Leave granted.
2. This appeal is against the final judgment and order dated
21.08.2018 passed by a Division Bench of the High Court of Uttarakhand
at Nainital allowing the writ petition being WPSB No.359 of 2018 filed
by the respondent no.1 and quashing the order dated 18.09.2017 passed
by the Chairman of the Central Administrative Tribunal (her einafter
referred to as “CAT”) at the Principal Bench at Delhi, inter alia , staying
proceedings in OA 331/00790/ 2017 filed by the respondent no.1 and
pending before a Division Bench of CAT at Nainital.
3. The respondent no.1, an Indian Forest service officer of the
Uttarakhand cadre of 2002 Batch was posted as Deputy Secretary at
the All India Institute of Medical Sciences, New Delhi from 29.6.2012
till 28.6.2016.
4. The said post of Deputy Secretary was created with the approval
of the Department of Expenditure, inter alia , to coordinate and manage
infrastructure projects and ensure their timely completion, to exercise
869
management and control of the Institute and to coordinate wi th Multi
Disciplinary Experts.
5. At its 195 th meeting held on 20.7.2010, the Standing Finance
Committee of the Institute decided against the creation of a new post of
Central Vigilance Officer and resolved that the work of Central Vigilance
Officer should also be assigned to the officer, joining the newly created
post of Deputy Secretary of AIIMS. The Governing Body and Institute
body of AIIMS headed by the Union Health Minister ratified the decision
of the Standing Finance Committee.
6. An order dated 23.6.2011 was issued by the Ministry of Health
and Family Welfare enumerating the duties pertaining to the said post of
Deputy Secretary of AIIMS.
7. As stated above, respondent no.1 was appointed D eputy
Secretary of AIIMS on 29.6.2012. As per the work allocation order the
respondent no.1 was also made Central Vigilance Officer of the AIIMS.
8. It is the case of the respondent no.1 that the work of the General
Section was withdrawn from the respondent no.1 in November 201 2,
the work of Central Vigilance Officer was withdrawn from him in August
2014, the work of dealing with grievances was withdrawn from him
some time in 2015 and in December 2015 the work of the Estate Section
was withdrawn from him. Ultimately the respondent no.1 was left
practically without any work, apart from signing pension pape rs and
booking guest houses.
9. According to the respondent no.1, there was delay in completion
of infrastructure projects, which along with the way in which the
respondent no.1 had been denuded of duties by successive office orders,
attracted severe criticism in a report of the Parliamentary Committee.
10. According to the respondent no.1, at the time when he was
assigned the work of Central Vigilance Officer, the then Health Secretary
had commented on his “exemplary performance” and “absolute integrity”.
Moreover, the respondent no.1 was, in his Annual Performance Appraisal
Reports for the years 2012-13 and 2013-14 graded as ‘outstanding’,
with the following remarks by the then Union Health Ministe r “ Shri
Sanjiv Chaturvedi, Deputy Secretary and CVO, AIIMS, New Delhi,
is a man of integrity, sincerity, who is keen on pe rforming his
assigned role to the best of his ability and knowledge wi thout fear
or favour ”.
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
11. The respondent no.1 had been awarded the Ramon Magsaysay
Award for the year 2015 in recognition of his exemplary integrity, courage
and tenacity, inter alia, in uncompromisingly exposing and painstakingly
investigating corruption in public office. Records reveal that the
respondent no.1 had donated the award money of Rs.14,23,000/- to the
Prime Minister’s Relief Fund after the All India Institu te of Medical
Sciences refused to accept his donation of the award money to th e All
India Institute of Medical Sciences for free treatment of under privileged
patients.
12. According to the respondent no.1, no complaint of any kind
was received against him from any employee during his two year tenure
as Central Vigilance Officer of the Institute. However, t he very same
persons, who had earlier showered praises on the respondent no.1 turned
against him for extraneous reasons, particularly his role in e xposing
corruption.
13. Being aggrieved, the respondent no.1 filed an application being
O.A. No.1887 of 2015 before the Principal Bench of the CAT at Delhi,
inter alia , for directions on the concerned authorities to allocate the
work of Deputy Secretary to the respondent no.1. The said application
has been dismissed by a judgment and order dated 17.5.2016.
14. The respondent no.1 has alleged that the duties of Cent ral
Vigilance Officer were withdrawn from him as he had unearthed
irregularities and corruption in infrastructure projects. The nature or
reasons for the disputes between the respondent no.1 and the appellant
are not relevant to the issues involved in this appeal.
15. A memorandum dated 7.1.2016 was served on the respondent
no.1, informing him that the Director of the All India Institute of Medical
Sciences had placed on record his displeasure with insubordi nation,
indiscipline and lack of work ethics of the respondent no.1 during the
Winter Session of Parliament in the year 2015, and directed that a copy
of the said memorandum be kept in the personal file of the respondent
no.1. A representation made by the respondent no.1 against the aforesaid
memorandum was rejected by the Competent Authority.
16. Being aggrieved, the respondent no.1 filed OA No.1342 of
2016 before the Principal Bench of the CAT at New Delhi challenging
the said Memorandum dated 7.1.2016 and praying for orders, restraining
the Director of the All India Institute of Medical Sciences from writing
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the Annual Performance Appraisal Report of the respondent no.1. The
said application is pending. On the application being filed, the learned
Tribunal directed issuance of notices, but declined the pr ayer of the
respondent no.1 for interim relief.
17. On 28.6.2016, the four year deputation of the respondent no.1
as Deputy Secretary at AIIMS came to an end, and he joined his new
post at Uttarakhand in August, 2016, after availing leave of two months.
18. By an order dated 11.1.2017 AIIMS communicated an adverse
Annual Confidential Report for the year 2015 -2016 to the respondent
no.1 wherein he had uniformly been given ‘Zero’ grading in all attributes.
On 23.1.2017, the respondent no.1 filed an appeal against the order dated
11.1.2017 before the Competent Authority. The appeal was rejected by
an order dated 15/20.4.2017.
19. On 19.6.2017, the respondent no.1 filed a writ petition being
WPSB No.225 of 2017 before the Uttarakhand High Court challenging
the orders dated 11.1.2017 and 15/20.4.2017. The respondent no.1 also
filed an application being PT No.286/2017 in OA No. 1342/2016 before
the Principal Bench of the CAT at Delhi for transfer of OA No. 1342/2016
from the Principal Bench of the CAT at Delhi to its Bench at Nainital.
The appellant has filed a counter affidavit to the said application.
20. By an order dated 19.6.2017 in the writ petition being WPSB
No.225 of 2017, the Division Bench of Uttarakhand High Court relegated
the respondent no.1 to approach the Tribunal under the Administrative
Tribunals Act, 1985 (for short ‘the Act’) and to seek all reliefs available
to him. The respondent no.1 was given the liberty to approach the
High Court in the event any relief prayed for by the responden t was
rejected by the Tribunal.
21. Thereafter, the respondent no.1 instituted an application being
OA No.331/00790/2017 before the Nainital Bench of the CAT challenging
the Annual Performance Appraisal Report (APAR) of the year 2015-16
whereupon an interim order was passed in favour of the res pondent
no.1 on 18.9.2017, by a Division Bench of the Tribunal, the operative
part whereof is set out hereinbelow:-
“Matter be posted for further hearing on interim re lief on
03.10.2017. Respondents shall file their reply before the said
date. In the meantime, in the interest of justice, it is directed that
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
if any matter related to the career progression of the appl icant
comes up for consideration before the terms of the impugned
orders shall not be taken into account while assessing and t he
applicant’s suitability or fitness and he shall be considered on the
basis of the rest of his ACRs/APARs.
22. The Union of India filed an application before the Chairman
of the Tribunal being PT 316 /2017 seeking transfer of OA No.
331/00790/2017 to the Principal Bench at Delhi. By an ex parte order
dated 18.9.2017 passed in the said transfer application, the Chairman of
the CAT, sitting singly, stayed proceedings in OA No.331/00790/2017
pending before a two member Bench at Nainital for a per iod of six
weeks, and directed that notice be issued to the respondent no.1.
23. Challenging the aforesaid order on the ground that the Chairman
of CAT, sitting singly, could not have stayed proceedings pending before
a Division Bench, the respondent no.1 filed a writ petition being W.P.(SB)
No. 259/2018 in the High Court of Uttarakhand at Nainital.
24. By the impugned order dated 21.8.2018, which is under appeal,
the High Court allowed the writ petition and set aside the impugned
order dated 18.9.2017 of the Chairman, observing that the Chairman of
the Tribunal, while sitting singly, could not stay the proceedings pending
before the Division Bench. The High Court imposed costs of Rs.25,000/-
on the appellant.
25. Learned counsel appearing on behalf of the appellant submitted
that the impugned order was passed without giving the appellant an
opportunity of hearing. No Vakalatnama was executed by the appellant
authorizing the learned Additional Solicitor General of India Shri Rakesh
Thapliyal to appear before the High Court on behalf of AIIMS.
26. Learned Counsel for the appellant next submitted that the
High Court had erred in holding that the Chairman of CAT, sitting singly,
could not stay proceeding before the Division Bench. He argued that a
conjoint reading of the preamble of the Act with Section 5(2), 5(6), the
proviso to Section 24 and Section 25 of the said Act, shows that the
Chairman sitting singly can stay proceedings before any other Bench.
Such power has been conferred upon the Chairman under Section 5(6)
read with Section 25 of the Act.
27. Learned counsel submitted that it was necessary fo r the
Chairman to pass an order of stay of proceedings in O.A. No.
873
331/790/2017 pending before the Bench at Nainital to avoid multiplicity
of proceedings and for judicial uniformity, more so, since the lis in OA
No.1342 of 2016 before the Principal Bench and in O .A. No.
331/790/2017 at the Bench at Nainital were similar. The subject matter
of both the applications related to the APAR of the year 2015-2016.
28. In support of his submission, that the Chairman of the CAT,
considering an application for transfer under Section 25 of the Act, had
the power to stay the proceedings before the Nainital Bench, of wh ich
transfer had been sought, counsel cited Dr. Mahabal Ram vs. Indian
Council of Agricultural Research and others 1 and L.Chandra Kumar
vs. Union of India & Ors. 2.
29. Counsel appearing on behalf of the respondent no.1 refuted
the submission that the appellant had not been heard by the High Court,
arguing that the appellant had duly been represented by Shri R akesh
Thapliyal, Additional Solicitor General of India. He submitted that, as
per the rules of the High Court an advance copy of the writ petition had
also been served on the Additional Solicitor General Shri Rakesh
Thapliyal. The Additional Solicitor General and senior government counsel
had been representing both Union of India and AIIMS in the High Court
as well as in Nainital Bench of CAT where the Union of India and
AIIMS had jointly filed reply through counsel for Union of India.
30. Counsel appearing for the Respondent no.1 emphatically argued
that the Chairman of CAT sitting singly had no power under the Act to
stay the proceedings in a part-heard matter before a Division Bench of
the same Tribunal. It was trite that a body created by statute could only
have those powers provided by statute and nothing more.
31. Counsel for the respondent no.1 further argued that the
appellant had filed O.A No.331/790 of 2017 pursuant to the order of the
Division Bench of the High Court, in the writ petition fi led by the
respondent no.1, being WPSB No.225 of 2017. The ord er of the
Chairman was, thus, in violation of the order of the Division Bench of
the High Court.
32. Counsel appearing for the respondent no.1 also submitted that
under Section 24 of the Act, the maximum duration of an ex-parte interim
order could be two weeks and that too subject to certain condit ions,
1 (1994) 2 SCC 401
2 (1997) 3 SCC 261
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
including service of advance copy, which had not been done in this case.
Moreover, there had to be a prima facie finding that the appellant would
suffer irreparable loss, which could not be monetarily compe nsated, if
no interim order were passed. In this case, the Chairman passed a non-
speaking interim order for six weeks. The order does not disclo se any
urgency or irreparable loss which could not be monetarily compensated.
33. Counsel for the respondent no.1 also submitted that the cause
of action in OA No. 331/790/2017 was distinct from cause of action in
OA No. 1342/2016. The communication of adverse APAR for the year
2015-16 gave rise to a fresh cause of action. Unless challeng ed, the
APAR would have led to adverse consequences for the respondent no.1,
such as, denial of promotion.
34. Counsel for the respondent no.1 submitted that OA No. 1342/
2016 and OA No. 331/790/2017 arose as a result of two completely
different orders and, in any case, the issue of whether there was similarity
of cause of action in the two proceedingshad been dealt with by the
Nainital Bench. The finding of the Nainital Bench had never been
challenged by the appellant and had attained finality.
35. Relying on the judgment of this Court in Ramrameshwari
Devi and Ors. v. Nirmala Devi & Ors. 3, Counsel for the respondent
no.1 submitted that the High Court had rightly imposed a fine on the
appellant, as the appellant had obtained an ex parte order by
misrepresentation.
36. Counsel for the respondent no.1 finally submitted that this
appeal might be dismissed, as it is purely based on perjury and
concealment of facts, citing Kishorbhai Gandubhai Pethani v. State
of Gujarat & Anr. 4, Kishore Samrite V . State of Uttar Pradesh &
Ors .5 and Prestige Lights Ltd. v. State Bank of India 6.
37. It is not in dispute that the impugned order, under challenge in
this Court, records the appearance of Shri Rakesh Thapliyal, Additional
Solicitor General on behalf of AIIMS as well. Any objection with regard
to erroneous recording of appearances, or the authority of the learned
Additional Solicitor General of India to represent the AI IMS ought to
have been urged before the High Court by making an appr opriate
3 (2011) 8 SCC 249
4 (2014) 13 SCC 539
5 (2013) 2 SCC 398
6 (2007) 8 SCC 449
875
application. The objection to the appearances of the Additional Solicitor
General, representing the Central government in the same proceedings,
is prima facie preposterous, considering that the AIIMS i s under full
control of the Central Government. It is, however, not for this Court to
examine whether the learned Additional Solicitor General of India had
been authorized to appear before the High Court on behalf of AIIMS or
not.
38. The judgments of this Court in Munna Lal Karosia vs. State
of Madhya Pradesh and Others 7 and Association of Synthetic Fibre
Industries vs. Apollo Tyres Limited and Others 8, cited by the appellant
to argue that a final order ought not be passed by the High Court against
any person without giving that person an opportunity of hearing, have no
application in the facts and circumstances of this case, since the appellant
had apparently been represented by the Additional Solicitor Gen eral.
The judgments were rendered in the particular facts and circumstances
of those cases.
39. In Munna Lal Karosia (supra), the High Court had held Munna
Lal Karosia to be guilty of contempt without hearing him. It was in the
aforesaid context that this Court deprecated the passing of st igmatic
orders against a person without giving that person an opportunity of
hearing. An order of contempt may be stigmatic. The order under appeal
is not so. Imposition of costs does render an order stigmatic, as sought
to be argued on behalf of the appellant.
40. The main question before this Court is, whether the Chairman
of the Tribunal, sitting singly and exercising his power under Section 25
of the Act, to transfer proceedings from one Bench to another, cou ld
have stayed proceedings before a two member Bench and rendered
interim orders passed by that Bench inoperative. The answer to the
aforesaid question has to be in the negative for the reasons dis cussed
hereinafter.
41. The Act has been enacted in pursuance of Article 323 A,
inserted into the Constitution of India by the Cons titution (42 nd
Amendment) Act, 1976, which enables Parliament to enact law to provide
for adjudication and/or trial by Administrative Tribunals of disputes in
respect of recruitment and conditions of service of persons in public
7 (2012) 12 SCC 255
8 (2010) 13 SCC 735
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
services and posts inter alia in connection with the Union of India and
authorities under its control.
42. As observed by the Supreme Court in V atticherukuru Village
Panchayat v. Nori Venkatarama Deekshithulu and Ors. 9, the
Parliament has enacted Article 323A for the reason that the Civil Courts,
gripped with rules of pleading and strict rules of evidence and tardy trial,
four-tier appeals, endless revisions and reviews under the Civil Procedure
Code, are not suited to the need for expeditious dispensation of litigation
relating to services.
43. CAT has been established under Section 4 of the Act and
exercises jurisdiction, powers and authority as stipulated in Section 14 of
the Act.
44. Under Section 14(1) read with 14(3) of the Act, CAT exercises
all the jurisdiction authority and powers, exercised by all Courts except
the Supreme Court before the establishment of a Tribunal unde r the
Act.
45. Even though the Evidence Act and Civil Procedure Code may
not apply to Tribunals constituted in pursuance of Article 323 A of the
Constitution, such Tribunals, like ordinary law courts are bound by rules
of evidence and procedure as laid down under the law under which the
Tribunal is constituted and/or the rules and regulations framed thereunder
and are required to determine the lis brought before them strictly in
accordance with the law.
46. The preamble to the Act states the object of the Act, which
is to provide for adjudication or trial by Administrative Trib unals, of
disputes and complaints in respect of recruitment and conditions of service
of persons appointed to public services and posts in connection with the
affairs of the Union or of any State or of any local or othe r authority
within the territory of India or under the control of the Government of
India or of any corporation owned or controlled by the Government, in
pursuance of Article 323A of the Constitution of India and for the matters
connected therewith or incidental thereto.
47. The reference by Counsel for the appellant to the Pream ble
of the Act is of no relevance. The respondent no.1 approached the
Tribunal for redressal of his grievances. His case was heard by a Division
9 (1991) Supp. (2) SCC 228
877
Bench and a reasoned interim order passed on 18.9.2017. The preamble,
which states the aims and objects of the Act is of no assis tance to the
appellant, as it does not lend support to appellant’s contention that t he
Chairman of the Tribunal sitting singly could have sta yed further
proceedings before a Division Bench. The reliance placed by Counsel
on the Preamble is misconceived.
48. Sections 5, 24 and 25 of the Act provide as follows:-
5. Composition of Tribunals and Benches thereof .— (1) Each
Tribunal shall consist of a Chairman and such numbe r of
Judicial and Administrative Members as the appropri ate
Government may deem fit and, subject to the other provisio ns
of this Act, the jurisdiction, powers and authority of the
Tribunal may be exercised by Benches thereof.
(2) Subject to the other provisions of this Act, a Benc h shall
consist of one Judicial Member and one Administrati ve
Member.
(3) Omitted
(4) Notwithstanding anything contained in sub-secti on (1),
the Chairman—
(a) may, in addition to discharging the functions of the Judicial
Member or the Administrative Member of the Bench to whic h
he is appointed, discharge the functions of the Jud icial
Member or, as the case may be, the Administrative Mem ber,
of any other Bench;
(b) may transfer a Member from one Bench to another Bench;
(c) may authorise the Judicial Member or the Administrative
Member appointed to one Bench to discharge also the
functions of the Judicial Member or the Administrat ive
Member, as the case may be, of another Bench; and
(d) may, for the purpose of securing that any case o r cases
which, having regard to the nature of the questions involv ed,
requires or require, in his opinion or under the rules made by
the Central Government in this behalf, to be decide d by a
Bench composed of more than two Members issue such
general or special orders, as he may deem fit:
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
Provided that every Bench constituted in pursuance o f this
clause shall include at least one Judicial Member a nd one
Administrative Member.
(6) Notwithstanding anything contained in the foreg oing
provisions of this section, it shall be competent f or the
Chairman or any other Member authorised by the Chairman
in this behalf to function as a Bench consisting of a single
Member and exercise the jurisdiction, powers and aut hority
of the Tribunal in respect of such classes of cases or such
matters pertaining to such classes of cases as the Ch airman
may by general or special order specify:
Provided that if at any stage of the hearing of any such case
or matter it appears to the Chairman or such Member that
the case or matter is of such a nature that it ought to be heard
by a Bench consisting of two Members, the case or m atter
may be transferred by the Chairman or, as the case may be ,
referred to him for transfer to, such Bench as the C hairman
may deem fit.
(7) Subject to the other provisions of this Act, the Benche s of
the Central Administrative Tribunal shall ordinarily sit at New
Delhi (which shall be known as the principal Bench) ,
Allahabad, Calcutta, Madras, New Bombay and at such other
places as the Central Government may, by notification, specify.
(8) Subject to the other provisions of this Act, the places at
which the principal Bench and other Benches of a St ate
Administrative Tribunal shall ordinarily sit shall be such as
the State Government may, by notification, specify.
xxx xxx xxx xxx
24. Conditions as to making of interim orders. -
Notwithstanding anything contained in any other provisions of this
Act or in any other law for the time being in force, no interim
order (whether by way of injunction or stay or in any other manner)
shall be made on, or in any proceedings relating to, an application
unless -
(a) copies of such application and of all documents in support
of the plea for such interim order are furnished to the party
879
against whom such application is made or proposed to be
made; and
(b) opportunity is given to such party to be heard in the matter:
Provided that a Tribunal may dispense with the requirements of
clauses (a) and (b) and make an interim order as an exceptional
measure if it is satisfied, for reasons to be recorded i n writing,
that it is necessary so to do for preventing any loss being caused
to the applicant which cannot be adequately compensated in money
but any such interim order shall, if it is not sooner vacated, cease
to have effect on the expiry of a period of fourteen days from the
date on which it is made unless the said requirements have been
complied with before the expiry of that period and the Tr ibunal
has continued the operation of the interim order.
25. Power of Chairman to transfer cases from one Bench
to another. - On the application of any of the parties and after
notice to the parties, and after hearing such of them as he m ay
desire to be heard, or on his own motion without such notice, the
Chairman may transfer any case pending before one Bench, for
disposal, to any other Bench.
49. Section 5 provides that a Tribunal is to consist of a Chairman
and such number of judicial and administrative members as the appropriate
Government may deem fit and, subject to the other provisions of the
Act, the jurisdiction, powers and authority of the Tribunal may be exercised
by the Benches thereof. Sub-section 2 provides that a Bench is to consist
of one Judicial Member and one Administrative Member. This, however,
is subject to the other provisions of the said Act.
50. The Chairman of the Tribunal is an entity distinct from the
Tribunal and exercises administrative powers and such other powers as
are expressly conferred on him under the Act. Section 5(4)(a ) of the
Act empowers the Chairman to discharge in addition to the functions of
the Judicial Member or the Administrative Member, of the Bench to
which he is appointed, the functions of the Judicial Member or the
Administrative Member of any other Bench.
51. Section 5(4)(b) empowers the Chairman to transfer a Member
from one Bench to another Bench, and Section 5(4)(c) ena bles the
Chairman to authorize the Judicial Member or the Administrative Member
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
of one Bench to discharge the duties and functions of Judicial Member
or Administrative Member, as the case may be, of any other Be nch.
The Chairman can also constitute Benches of more than two Members
having regard to the nature of the cases involved, by issuance of general
or special orders.
52. Section 5(6) enables the Chairman or any other Member
authorized by the Chairman to function as a Single Bench and exercise
jurisdiction, powers and authority of the Tribunal in respect of such classes
of cases or such matters pertaining to such classes of cases as the
Chairman may by general or special order specify.
53. The proviso to Section 5(c) of the Act states that if at any
stage of hearing of any such case or matter it appears to th e Chairman
or the Member functioning singly that the case or matter is of such a
nature that it ought to be heard by a Bench consisting of two Members,
the case or matter may be transferred by the Chairman, or as the case
may be, referred to him for transfer to such Bench as the C hairman
may deem fit.
54. A perusal of Section 5 indicates that the Chair man is
empowered to discharge administrative functions of constituting Benches
by transferring a Member from one Bench to another, author izing the
Judicial Member or the Administrative Member appointed to one Bench
to discharge the functions of Judicial Member or Administrative Member
of another Bench.
55. Sub-section (6) of Section 5 empowers the Chairman or any
other Member authorized by the Chairman to sit singly to exercise
jurisdiction, powers and authority of the Tribunal only in respect of such
classes of cases or such matters pertaining to such classes of cases as
the Chairman might, by general or special orders specify. The aforesaid
provision does not enable the Chairman sitting singly to nullify orde rs
passed by a larger Bench.
56. Section 24 of the Act limits the power to pass interim order
whether by way of injunction, stay or otherwise by imposing conditions
on the exercise of such power. No interim order is to be made unless
copies of the application along with documents in support of the plea for
interim order are furnished to the party against whom such application is
made and opportunity to be heard is given to such party.
881
57. The aforesaid condition can only be dispensed w ith in
exceptional cases, if the Tribunal is satisfied, for reasons to be recorded
in writing, that it is necessary to pass an interim order for preventing any
loss to the applicant which cannot adequately be compensated in money.
The interim order, in such case is to be of maximum duration of fourteen
days unless the requirements of sub-sections (a) and (b) ar e complied
with, before the expiry of fourteen days and the interim order is extended.
58. The power under Section 25 of the Act to transfer cases from
one Bench to another is essentially an administrative pow er of the
Chairman of CAT. Such power is to be exercised by the Chairman on
his own motion or on the application of any of the parties after notice to
the parties, and after hearing such of them as he may desire to be heard.
The Chairman may, on his motion, transfer any case pending before one
Bench to another without notice.
59. A careful reading of Section 25 of the Act makes it clear that
the Chairman deciding the question of whether a matter should be
transferred from one Bench to another cannot grant interim st ay of
proceedings, their being no power conferred on the Chairman under the
said section to pass such interim stay.
60. Power under Section 24 to grant interim orders has been
conferred on the Tribunal, and/or in other words, a Bench of the Tribunal
in seisin of proceedings in respect of which the Bench is entitled to
exercise the jurisdiction and powers of the Tribunal.
61. A Tribunal created under the Act as also its Chairman derives
its powers from the Act and can only exercise such powe rs as are
conferred by the Act. The Chairman of the Tribunal exercising its power
under Section 25 of the Act does not function as a Tr ibunal. The
proposition that the power to grant interim relief must ex pressly be
provided by statute finds support from the judgment of the Supreme
Court in Morgan Stanley Mutual Fund vs. Kartick Das 10 . The
Chairman of CAT does not have power under Section 25 to pass any
interim order of stay of proceedings pending before a Bench of the
Tribunal.
62. A careful reading of the provisions of the Act and in particular
Sections 14 and 15 thereof in juxtaposition with Article 323A of the
Constitution leaves no manner of doubt that an Administrative Tribunal
10 (1994) 4 SCC 225
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
constituted under the Act to give effect to Articl e 323A of the
Constitution exercises all the jurisdiction powers and authority exercisable
by all the Courts before commencement of the Act and has all the
attributes of a Court of law except that it is not bound by the strict rules
of procedure embodied in the Civil Procedure Code or the strict rules of
evidence prescribed by the Evidence Act, as observed above. All norms
of judicial propriety and judicial discipline apply as much to the Tribunal
as to Courts including the High Court.
63. A judicial order passed by a Tribunal is binding on all concerned,
including the Tribunal itself on its administrative side, unless set aside or
modified by a higher forum in exercise of appellate or revisional powers.
In no circumstance, can a judicial order of a Bench of the Tr ibunal be
nullified or rendered nugatory by its Chairman.
64. In view of Section 12 of the Act, the Chairman of the Tribunal
can only exercise financial and administrative powers over the Benches
as may be vested under the Rules. The Chairman may thus const itute
Benches, shift members from one Bench to another, constitut e Single
Benches, Division Benches and even larger Benches, allocate business
to the Benches and even transfer cases from one Bench to the other,
but having done so he cannot interfere with the functioning of the Benches
or tinker with its orders by passing interim orders in a transfer petition.
65. In any case, judicial decorum and propriety demands that a
judicial order, ad interim, interim or final be vacated, varied, modified,
recalled or reviewed by a Bench of coordinate strength or larger strength
or a higher forum, but not a smaller Bench of lesser strength, except in
cases where such authority to a lower forum and/or smaller Bench is
expressly conferred or implicit in the order sought to be vacated, varied,
modified, recalled or reviewed.
66. In Union of India and Anr. vs. K. S. Subramanian 11 , the
Supreme Court observed that the proper course for a High Court was to
try to find out and follow the opinion expressed by larger benches of this
Court in preference to those expressed by smaller Benc hes of the
Supreme Court and that was the practice also to be foll owed by the
Supreme Court itself. The practice has now crystallized i nto a rule of
law declared by the Supreme Court. A similar view was ta ken by the
Supreme Court in Bharat Petroleum Corporation Ltd. vs. Mumbai
11 (1976) 3 SCC 677
883
Shramik Sangha & Ors. 12 . A five Judge Constitution Bench of the
Supreme Court observed that the decision of a Constitution Be nch of
the Supreme Court would bind a Bench of two judges of the S upreme
Court and that judicial discipline obliged them to follow it, regardless of
their doubts about its correctness.
67. It is true that the interim order passed by a Court does not
operate as a precedent and the law declared by the Supreme Court with
regard to the precedential value of judgments of Benches of larger
strength may not operate as a binding precedent in t he facts and
circumstances of this case. The judgments referred to in the preceding
paragraphs lay down the norms of judicial decorum and propriety which
give precedence to Benches of higher strength. There is no reason at all
why the same principles should not apply even to interim orders in pending
proceedings.
68. An interim order passed by a court, on consideration of the
prima facie case made out by an applicant, should ordinarily have been
vacated by a Bench of coordinate strength after giving ope n notice to
the applicant. If the Chairman was of the considered opinion that there
was urgency in the application for vacating the interim order, the Chairman
ought to have assigned the application for vacating and/or vac ation of
the interim order to a Bench of two or more Members to consider whether
the interim order should continue or be vacated. The Chairman c ould
also have exercised his power to suo motu transfer the proceedin gs to
another Bench without prior notice. The order of stay of the proceedings
before the Nainital Bench is without jurisdiction and unsustainab le in
law.
69. Neither the judgment of the Constitution Bench of this Court
in L. Chandra Kumar (supra) nor the judgment of the Division Bench
of this Court in Dr. Mahabal Ram vs. Indian Council of Agricultural
Research and Others is an authority for the proposition that the Chairman
of CAT, sitting singly to decide on application for transfer under Section
25 of the Act, can stay the proceeding before a two Member Benc h or
interfere with the orders of a two Member Bench.
70. In L. Chandra Kumar (supra), cited on behalf of the appellant,
a Constitution Bench of seven Judges of the Supreme Court held that
the power of judicial review vested in the High Court under Article 226
12 (2001) 4 SCC 448
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]
and in the Supreme Court under Article 32 of the Constitution was an
integral and essential feature of the Constitution constituting part of its
basic structure. Ordinarily, therefore, the power of the High Courts and
the Supreme Court to test the constitutional validity of legislations could
never be ousted or excluded. The power vested in the High C ourt to
exercise judicial superintendence over the decision of all Courts and
Tribunals within their respective jurisdictions was also part of the basic
structure of the Constitution. Further, in L. Chandra Kumar (supra),
this Court upheld the vires of Section 5(6) of the Act observing that
Section 5(6) could harmoniously operate with Section 5(2) in vi ew of
the proviso to Section 5(6). This Court also held that the Tribunals are
even competent to hear matters where vires of statutory provisions are
questioned, except where the vires of their parent statute is in question,
following the settled principle that a Tribunal which is the creature of a
statute cannot declare that very statute to be unconstit utional. In such
cases alone, the High Court might be approached directly. However, in
discharging the duty of deciding vires of statutory provisions, Tribunals
cannot act as substitute for the High Courts and the Supreme C ourt.
Their function is supplementary and all such decision of the Tribuna ls
would be subject to scrutiny before the Division Bench of the respective
High Courts.
71. In L. Chandra Kumar (supra) this Court held that whenever
any question involving the interpretation of a statutory provision or rule
in relation to Constitution arose for consideration of a Single Bench of
the Administrative Tribunal, the provision to Secti on 5(6) would
automatically apply and the Chairman or the member concerned would
be obliged to refer the matter to a Bench consisting of a t least two
members one of whom must be a judicial member. This would ensure
that questions involving vires of statutory provisions or rules would never
arise for adjudication before a Single Member Bench or a Bench which
does not consist of a judicial member. So construed, Section 5(6) would
no longer be susceptible to charges of unconstitutionality and, therefore,
valid and constitutional.
72. In Dr. Mahabal Ram vs. Indian Council of Agricultural
Research and Others 13 , the Supreme Court held that sub-sections (2)
and (6) appearing as limbs of the same Section 5 of the Act, have to be
harmoniously construed. While allocating work to a single Mem ber,
13 . (1994) 2 SCC 401
885
whether Judicial or Administrative in terms of sub-s ection (6), the
Chairman should keep in view the nature of the litigation and w here
questions of law or interpretation of constitutional provisions are involved,
they should not be assigned to a single Member. It would b e open to
either party appearing before the single Member to sugge st to that
Member hearing the matter that it should go to a Bench of two Members.
The Member should ordinarily allow the matter to go to a Bench of two
Members when so requested. However, the contention that the singl e
Member contemplated under sub-section (6) had to mean a Judicia l
Member only, was not accepted. In Dr. Mahabal Ram (supra), the
question was whether a Bench consisting of a single Member under
Section 5(6) necessarily had to be a Bench comprising of a judicial
member.
73. In our considered view, the Division Bench rightly allowed the
writ petition. The Chairman, like the Chief Justice of the Higher Courts
or the Chief Judge of subordinate courts, may be higher in order of
protocol and may have additional administrative duties and responsibilities.
However, the Chairman, acting judicially, is equal to any other Member.
The Chairman, being one amongst equals, could not ha ve stayed
proceedings pending before a larger Bench. We find no grounds to
interfere with the reasoning of the High Court. The High Court rightly
allowed the writ petition with costs. Since we have upheld the order of
the Division Bench of the HighCourt under appeal and held that t he
order of the Chairman of CAT staying proceedings before the two member
Bench was without jurisdiction and unsustainable in law, we need not go
into the various other contentions raised on behalf of the responde nt
no.1.
74. The appeal is dismissed with costs, quantified at Rs.25,000/-,
to be deposited with the Supreme Court Legal Services Committee within
four weeks from the date.
Nidhi Jain Appeal dismissed.
ALL INDIA INSTITUTE OF MEDICAL SCIENCES v. SANJIV
CHATURVEDI [INDIRA BANERJEE, J.]