Shri Dwarka Prasad Agarwal (dead) by Lrs. and Anr. v. B.D. Agarwal and Ors.
S.B. SINHA, J. Whether settlement of a private dispute between the
parties to a writ proceeding is permissible in law, is the prime question
E involved in these batch of appeals which arise out of judgments and orders
passed by Madhya Pradesh High Court in M.P. No. 802of1992 and M.C.C.
No. 477 of 1992 and the connected writ petition.
The factual matrix involved in these matters may be noticed in brief.
A partnership firm known as Mis. Dwarka Prasad Agarwal & Brothers
(The firm} was constituted with Dwarka Prasad Agarwal (since deceased),
Bishambhar Dayal Agarwal (since deceased), Mahesh Prasad Aggarwal - all
sons of Keshav Dev Agarwal and Ramesh Chandra Agarwal, son of Dwarka
Prasad Agarwal in the year 1972 as partners thereof. Each partner contributed
G towards the capital of the Firm in shares to the extent of 25%, 30%, 30% and
15% respectively. Prior to the constitution of the Firm, a newspaper known
as 'Dainik Bhaskar' was being published by Dwarka Prasad Agarwal and his
name was recorded in the Registrar of Newspapers for India (for short 'RNI').
The said Dwarka Prasad Agarwal was the karta of a larger HUF consisting
of himself and his partners. He had two wives, namely, Kasturidevi and
H Kishoridevi. Allegedly, the firm transferred the business of publication of
D.P. AGARWAL v. B.D. AGARWAL [SINHA. J.] 343
Dainik Bhaskar at Gwalior to a newly incorporated company, Mis. Bhaskar A
Publication and Allied Industries Pvt. Ltd. of which Dwarka Prasad Agarwal
was the lifetime Managing Director and Chairman and therein Bishambhar
Dayal Agarwal and his son, Ramesh Chandra Agarwal were shareholders and
directors. A printing press of which Dwarka Prasad Agarwal was the owner
is said to have been transferred to the said company for the purpose of B
printing of the aforementioned newspaper. According to the appellants, in the
Annual Reports of the RN!, the name of the said firm was shown as the
owner of the said newspaper. It is not disputed that in the year 1982, Dwarka
Prasad Agarwal suffered from a paralytic attack and was unable to attend to
business actively.
c It is alleged that Ramesh Chandra Agarwal filed a Declaration on or
about 13.10.84 along with an authority letter dated 10.1.83 from Dwarka
Prasad Agarwal in respect of publication of Dainik Bhaskar at Indore for
admitting him to be the owner of the newspaper and the company as a lessee.
Certain documents were allegedly created on 13th March, 1985 by Ramesh
Chandra Agarwal for the said purpose; one of them, being an Agreement of D
Sale alleged to have been entered by and between the Firm and a company
called M/s. Writers & Publishers Pvt. Ltd., the genuineness or otherwise of
which was the subject matter of a suit being suit No. 57 A of I 988. Another
document also came to be executed on the same day, the genuineness whereof
was also disputed, is an alleged deed of partition/ family settlement of the E
HUF; in terms whereof the firm's assets, several other properties, fixed
deposits, money and business including those situated at Bombay, Delhi,
Raipur, Indore, were divided between Dwarka Prasad Agarwal, Bishambhar
Dayal Agarwal, Mahesh Prasad Agarwal and Ramesh Chandra Ag?rwal.
According to the appellant, Dwarka Prasad Agarwal never signed the said
de~d of partition/ family settlement nor was it acted upon and in fact was F
questioned as forged and non-existent by Bishambhar Dayal Agarwal in a
proceeding before District Magistrate, Jabalpur and the same was also the
subject matter of suit No. 57 A of 1988 pending in the court of District Judge,
Bhopal. Several other suits were filed by the parties at several places viz.
Jabalpur, Bhopal, Raipur, Gwalior, etc. Several proceedings were also initiated G
before different forums with regard to publication of the said newspapers at
different places. Some writ petitions were also filed by the parties before the
High Court. Some proceedings by way of Special Leave Application were
also filed before th is Court.
It may not be necessary to delve deep into the effect and purport of the H
A said disputes for answering the issue involved in these matters, except a few.
It may, however, be noticed that Bishambhar Dayal Agarwal, questioning
the authentication made by the Additional District Magistrate, Jabalpur of the
Declaration filed by Sudhir Agarwal, son of Ramesh Chandra Agarwal for
newspaper 'Nav Bhaskar' as regard its publication from Jabalpur as also a
B purported order passed thereupon by the said authority on 3.12.91 filed a writ
petition before the Madhya Pradesh High Court. Dwarka Prasad Agarwal was
made a proforma respondent herein. The said writ petition was marked as
MP No. 802 of 1992 wherein the following reliefs were claimed:
"(i)
(ii)
(iii)
That the Hon'ble Court be pleased to declare by an appropriate
writ, order or direction that the power conferred on the District
Magistrate/ Additional District Magistrate under Section 4 and 6
of the Press and Registration of Books Act, 1867, in case of
declarations submitted for same or similar titles as ultra vires to
the petitioner's right under Article 14, 19(1)(a) and (g) of the
Constitution of India.
That the Hon'ble Court be further pleased to declare by an
appropriate writ that if a power is conferred on District Magistrate/
Additional District Magistrate to grant declaration of title of same
or similar nature, such a power cannot be exercised by the District
Magistrate/ Additional District Magistrate till an Appellate
Authority is constituted to be able to oversee and review the
exercise of powers by the District Magistrate/ Additional District
Magistrate. The non-provision of Appellate power violates the
petitioner's fundamental rights under Article 14 and 19(1)(a) and
(g) of the Constitution of India.
That the Hon 'ble Court be further pleased to quash and set aside
the declaration dated I I.I 0.1991 approved by the Additional
District Magistrate, Jabalpur, of the title Nav Bhaskar submitted
by publisher Sudhir Agarwal as void, illegal and contrary to law.
(iii-a) The Hon'ble High Court may be pleased to quash and set aside
the declaration dated 14.2.1992 Annexure P.27 authenticated by
the Additional District Magistrate, Jabalpur in favour of the
respondent No. I Sudhir Agarwal for printing and publishing
newspaper under the name and style of Nav Bhask;ir as void,
illegal and non-set in law.
D.P. AGARWAL v. B.D. AGARWAL [SINHA . .I.) 345
(iv) That the Hon'ble Court be further pleased to set aside and quash A
the order dated 3.12.1991 passed by the Additional District
Magistrate, Jabalpur, on an application/ objection made by the
petitioner under Section 8-B of the Press and Registration of
Books Act, 1867 as void, illegal and contrary to law.
(v) That the Hon'ble Court may be further pleased to prohibit and B
restrain the respondent Sudhir Agarwal and his father Shri Ramesh
Chandra Agarwal from the title Nav Bhashr .-:-:d to restrain the
A.D.M. Jabalpur from granting any such or similar title to Shri
Sudhir Agarwal or Shri Ramesh Chandra Agarwal.
(vi) Any other appropriate writ, order or direction which the Hon'ble C
Court deems just and proper may also be passed in the facts and
circumstances of the case as also in the interest of justice.
(vii) Cost of proceedings of this petition may also be awarded in
favour of the petitioner."
During pendency of the said writ proceedings, on 29.6.92 the petitioner D
therein, Ramesh Chandra Agarwal son of Dwarka Prasad Agarwal and Mahesh
Prasad Agarwal along with their sons Kailash, Sudhir and Sanjay purported
to have entered into a deed of settlement. Dwarka Prasad Agarwal admittedly
was a proforma respondent therein and although his rights as partner were
directly affected thereby he was neither a party to the said settlement nor a E
signatory to the said deed. The said purported agreement was filed on the
same day before the Madhya Pradesh High Court by the petitioner therein
alleging that he and the contesting respondents had reached a full and final
settlement of 'the disputes raised in the petition and other connected matters'
pending before various courts and bodies and the writ petition be disposed
of in terms of the said purported comprehensive agreement. The said settlement F
was accepted and the writ petition was disposed of in terms thereof on
29.6.1992 which was also the date of filing of the compromise memo. The
said order dated 29.6.92 is the subject matter of Civil Appeal No. 4782 of
1996.
Pursuant to or in furtherance of the said purported compromise, RN!
altered the name of owner of title Dainik Bhaskar in his Register from the
Firm to Mis. Writers on or about 3.9.1992 stating:
"This is to state that in accordance with the notice issued on the
above subject in the matter of ownership of Dainik Bhaskar, as per H
A the decision in Case No. 1182/92 dated 29.6.92 of the High Court of
Madhya Pradesh, at Jabalpur and agreement dated 19.6.92 Mis. Writer
& Publishers Pvt. Ltd., Bhopal, has become the owner of Dainik
Bhaskar.
You are, therefore, requested that if you have any objection to this
B decision then you may approach the High Court at Jabalpur."
Dwarka Prasad Agarwal having come to learn the said order of RNI
dated 3.9.1992 filed an application for review of the order dated 29.6.1992
passed by the High Court which was marked as MCC No. 477of1992. The
said review petition was dismissed by an order dated 13.11.1992 and the
C same is the subject matter of Civil Appeal No. 4783 of 1996.
The High Court in its order dated 13.11.92 refusing to retiew its earlier
order dated 3.9.92 inter alia held:
(i) The agreement in question is a lawful one.
(ii) As Dwarka Prasad Agarwal was not a signatory thereto, he was
not bound thereby.
(iii) The order recording compromise was legal as no other party
including the learned advocate of Dwarka Prasad Agarwal
objected thereto.
(iv) No writ was issued by the High Court in tenns of the said order
against the Additional District Magistrate, Jabalpur or any other
authority.
Pursuant to or in furtherance of the said order dated 29.6.1992 recording
F the purported settlement; applications were filed in Suit No. 74A of 1987 and
75A of 1987 in Bhopal by Mis. Writers and Ramesh Chandra Agarwal for
withdrawal thereof, whereupon the suits were dismissed. Bishambhar Dayal
Agarwal also, who had filed suit No. 57 A of 1988, moved an application to
the effect that pursuant to the compromise the suit be dismissed. This plea
G was also accepted.
Dwarka Prasad Agarwal filed Writ Petition No. 527 of 1993 in this
Court questioning the aforementioned order dated 3.9.92 passed by RNI
wherein inter alia the following reliefs were prayed for :
"(a) issue writ, order or direction quashing the order dated 3rd
D.P. AGARWAL v. B.D. AGARWAL [SINHA. J.] 347
September, 1992 whereby the Registrar, Newspapers has ch~nged A
the name of the owner of the title Dainik Bhaskar from M/s. D.P.
• ,J,
Agarwal and Brothers to M/s. Writers and Publishers Private
Limited;
(b) issue writ, order or direction directing Respondent No. 1 and 2
not to allow Respondent No. 7 to use the title Dainik Bhaskar for B
its publication;
(c) issue writ, order or direction directing i::e i<espondents not to
publish newspaper Dainik Bhaskar under the alleged title of
Respondent No. 7;
( d) issue writ, order or direction directing the Respondent No. 2 to C
exercise its authority not to allow Respondents No. 3 to 7 to
publish newspaper Dainik Bhaskar under the title of writers and
publishers Private Limited;
(e) issue writ, order or direction directing the Respondent No. 8 not D
to allow the Respondents No. 3 to 7 to publish newspaper Dainik
Bhaskar in contravention of the provisions of the Press and
Registration of Books Act, 1867; and
( f) pass such other and further orders as may be deemed fit and
proper in the facts and circumstances of the case."
Dwarka Prasad Agarwal died during the pendency of these proceedings.
Both the wives of the said Dwarka Prasad Agarwal applied for
substitution of their names in place of the deceased. The rival contentions on
substitution by the two wives of Late Dwarka Prasad Agarwal came to be
considered by this Court. Kishori Devi pressed her application. Kasturi Devi, F
however, was not sure that, she, having regard to her stand taken in the
litigation, would be able to defend the action on behalf of her husband. Upon
consideration of the said question, this Court directed Kasturi Devi to be
impleaded as a respondent in the proceeding whereas Kishori Devi and her
daughters Hemlata and Anuradha were directed to be substituted in place of G
Late Dwarka Prasad Agarwal. While passing the said order, however, an
observation was made that the said question shall be finally decided at the
time of hearing. We may, however notice that in the said proceedings for
substitution, Ramesh Chandra Agarwal filed a counter affidavit calling Smt.
Kishori Devi a concubine of Dwarka Prasad Agarwal. Keeping in view the
stand taken by the parties before us we have no hesitation in holding that this H
A Court rightly substituted Kishori Devi and her daughters Hemlata and
Anuradha in place of Late Dwarka Prasad Agarwal.
Mr. Sunil Gupta, the learned senior counsel appearing on behalf of the
appellants, as also the writ petitioner would submit that the impugned orders
passed by the High Court are ex facie bad, illegal as by reason thereof the
right title interest of Late Dwarka Prasad Agarwal, as specified hereunder,
were directly and adversely affected although he was not a party or signatory
to the said agreement.
(i) By reason of the said purported compromise, the firm was sought
to be dissolved of which Dwarka Prasad Agarwal was a partner.
(ii)
(iii)
The firm's assets were to be sold as per the alleged agreement
dated 13.3.85 and divided as per alleged partition deed of 13.4.85
which had not been signed and accepted by Dwarka Parsad
Agarwal, karta of HUF and the genuineness whereof was also
the subject matter of dispute.
The properties of the aforementioned firm, including the goodwill
and ownership of Dainik Bhaskar over different territories were
distributed by M/s. Writers Ltd. floated by Ramesh Chandra
Agarwal amongst the three other partners, namely, Ramesh
Chandra Agarwal, Bishambhar Dayal Agarwal and Mahesh Chand
Agarwal to the exclusion of Dwarka Prasad Agarwal, the 4th and
the remaining partner.
(iv) Although several suits, namely Suit No. 74A of 1987, 75A of
1987, 57A of 1988, 22A of 1988, 99A of 1991 and Writ Petitio:1,
MP No. 802 of 1992 were filed by the parties, the disputes
involved therein were sought to be resolved thereby which was
impermissible in law.
The learned counsel would contend that the High Court committed a
serious error insofar as it failed to notice that Dwarka Prasad Agarwal could
G not have any knowledge of the said unjust agreement, whence the same was
accepted. Although he had not instructed any lawyer to appear on his behalf
and merely one blank Vakalatnama executed by him bona fide was used
therefor and, thus, there was no question of his taking part in the proceeding
for acceptance of the purported settlement. In any event as his lawyer
admittedly recorded merely 'no instructions' in the said proceeding, the same
H could not have been treated as a consent/ no objection to the recording of the
D.P. AGARWAL v. B.D. AGARWAL [SINHA . .I.] 349
compromise on his behalf and in that view of the matter the observations A
made by the High Court that the agreement was not opposed on behalf of the
parties must held to be per se unreasonable and unjustified.
Our attention, in this regard, has been drawn to various disputed factual
aspects of the matter for the purpose of showing that several mis-representation
of fact had been made in the aforementioned agreement of settlement and the B
application dated 29.6.92 filed for recording the compromise before the High
Court.
The learned counsel would further contend that the compromise was,
in any event, not lawful as thereby right of ownership of an existing title in C
newspaper was sought to be determined in violation of Section I 9B, the
proviso appended to Section 6 and Section SB (ii) of the Press and Registration
of Books Act, 1867 as in terms thereof the authorities were under a statutory
obligation to preserve and protect the right of the firm as regard ownership
of title Dainik Bhaskar and to prevent any person from using the same without
the authorization of the firm. D
The goodwill of a firm, the learned counsel would urge, would also be
a subject matter of division of assets of partnership firm irrespective of the
fact as to whether the firm had thence been carrying on business or not.
Furthermore, as by reason of the said compromise, transfers were sought to
be made without registering the same in tern1s of Indian Registration Act, the E
same was illegal. It was further submitted that impact of the impugned order
can be noticed from the fact that by reason of the said purported consent
order dated 29.6.92, even the RN! also found himself compelled to forgo his
statutory obligation and found itself to be bound to alter the name of the
owner of the title in the register maintained by the said authority in terms of F
Section 19B of the Act from M/s D.P. Agarwal & Bros. to M/s Writers &
Publishers Pvt. Ltd. Recording of the said compromise, it was urged, must be
held t9 amount to practising of fraud on the court by the parties to the
agreement, as thereby they had achieved their purpose indirectly which law
prohibits them achieving directly and furthermore, as a large number of G
proceedings in relation to the disputes amongst the parties were pending
before different forums, they could not have been given a go bye by reason
thereof.
The learned counsel would contend that public law remedy by way of
a writ petition could not have been taken recourse to for resolution of a H
private dispute. It was submitted that in that view of the matter, the observations
350 SUPREME COURT REPORTS [2003) SUPP. I S.C.R.
A of the High Court that its order did not amount to issuance of a writ by the
Court against any of the parties must be held to be illegal and without
jurisdiction.
Drawing our attention to the applications for withdrawal of the suits in
terms of the said compromise petition, the learned counsel would submit that
the order accepting the compromise was misused inasmuch as the said suits
were purported to have been withdrawn on the ground that the same was a
necessary fallout of the judgment of the High Court, which in effect and
substance, it was not.
C On the writ petition filed by Late Dwarka Prasad Agarwal under Article
32 of the Constitution of India in this Court, the learned counsel wculd
submit that having regard to the fact that the official respondents had changed
the entries in the register maintained under the Act is a clear pointer to show
as to how the order of the High Court was misunderstood by the statutory
authorities. It was submitted that in terms of the provisions of the Press and
D Registration of Books Act, 1867, late Dwarka Prasad Agarwal had acquired
various rights coupled with the common law right as a partner of the
partnership firm which could have been taken away only with his consent or
by operation of law. According to the learned counsel, in terms of the
provisions of the said Act, it is one thing to say that somebody is the owner
E of the title in relation to the newspaper in question and it is another thing that
somebody is the printer and publisher thereof.
As regard maintainability of the writ petition, Mr. Gupta vehemently
urged that the cause of action therefor had arisen in view of illegal action on
the part of the official respondents resulting from misuse of judicial process.
F He would urge that publication of a newspaper is a fundamental right in
terms of Article 19( I) of the Constitution of India and as the action of the
official respondents directly resulted in infringement of the right of the said
writ petitioners. Reliance, in this connection, has been placed on Express
Newspapers Pvt. Ltd. v. Union of India and Ors., [1986] I SCC 133 and
G Jhumman Singh and Ors v. Central Board of Investigation and Ors., [ 1995]
3 sec 420.
Dr. A.M. Singhvi, learned senior counsel appearing on behalf of
respondent Sudhir Kumar Agarwal, on the other hand, would submit that as
by reason of the order recording the settlement entered into by and between
H the parties thereto, by the High Court, the right of Dwarka Prasad Agarwal
was not affected as he was not bound thereby and further in view of the fact
D.P. AGARWAL v. B.D. AGARWAL [SINHA, J.] 351
that no writ was issued against the A.D.M. Jabalpur, the question of appellants' A
being prejudiced by reason of the impugned order would not arise. Drawing
our attention to the order dated 13 .11.1992 whereby and whereunder the
High Court refused to review its order dated 29.6.1992, the learned counsel
would contend that the correct legal position has been clarified by the High
Court, Late Dwarka Prasad Agarwal could have taken recourse to appropriate
legal proceeding to protect his own interest and, thus, the impugned orders B
need not be interfered with. As regard the writ petition filed by Shri
Bishambhar Dayal Agarwal, Dr. Singhvi would contend that from a perusal
thereof it would appear that main prayer against the A.D.M., Jabalpur, was
dependent upon the authenticity of the declaration made by one of the
respondents therein and in view of the fact that the parties had buried their C
private disputes, at least prayers (3) and (4) could be granted by the High
Court, more so when prayers ( 1) and (2) thereof had not been pressed.
Dr. Singhvi would urge that having regard to the provisions contained
in Section 5(5) of the said Act, the writ petition also became infructuous and,
thus, there was no occasion for the High Court to issue any writ. Referring D
to certain documents, the learned counsel would argue that as prior to the
filing of the writ petition, Dwarka Prasad Agarwal had given up his own right
in the newspaper and acknowledged the right of his respondents and the
company; he had no locus standi to prefer appeals against the impugned
orders of High Court or file the writ petition. As regard the effect of the E
consent order the learned counsel relied upon the decision of this Court in
Salkia Businessmen's Association and Ors. v. Howrah Municipal Corporation
and Ors., [200 I] 6 SCC 688.
Mr. P.P. Rao, the learned senior counsel appearing on behalf of Smt.
Kasturi Devi, inter alia, would submit that the writ petition filed before this. p
Court by Dwarka Prasad Agarwal (since deceased) was not maintainable. Mr.
Rao, would contend that having regard to the prayers contained in clauses (I)
and (2) thereof, there cannot be any doubt whatsoever that the writ petition
before the High Court was maintainable and only because at a later stage the
private dispute between the parties was resolved, the same by itself would
not lead to a conclusion that the writ petition ceased to be so. Mr. Rao would G
submit that legality or otherwise of the said compromise cannot be held to
have been questioned by Late Dwarka Prasad Agarwal as no illegality in
relation thereto was pointed out by anybody.
Mr. Shanti Bhushan, learned Senior Counsel appearing on behalf of H
352 SUPREME COURT REPORTS 12003] SUPP. I S.C.R.
A Mahesh Agarwal, however, conceded that the order dated 29.6.1992 of the
High Court based on compromise must be set aside and consequently prayer
(a) in the writ petition may also be granted. However, according to the
learned counsel the petitioner is not entitled to any other relief.
Several questions of importance, as noticed hereinbefore, have arisen
B for consideration in these appeals and the writ petition.
A writ petition is filed in public law remedy. The High Court while
exercising a power of judicial review is concerned with illegality, irrationality
and procedural impropriety of an order passed by the State or a statutory
C authority. Remedy under Article 226 of the Constitution of India cannot be
invoked for resolution of a private law dispute as contra distinguished from
a dispute involving public law character. It is also well-settled that a writ
remedy is not available for resolution of a property or a title dispute.
Indisputably, a large number of private disputes between the parties and in
particular the question as to whether any deed of transfer was effected in
D favour of Mis Writer & Publishers Pvt. Ltd. as also whether a partition or a
family settlement was arrived or not, were pending adjudication before the
Civil Courts of competent jurisdiction. The reliefs sought for in the writ
petition primarily revolved round the order of authentication of the declaration
made by one of the respondents in terms of the provisions of the said Act.
The writ petition, in the factual matrix involved in the matter, could have
E been held to be maintainable only for that purpose and no other.
An agreement recording terms of settlement between the parties on
their private dispute was executed on 29.6.1992. The application for disposal
of the writ petition in terms of the said agreement as also the order of the
F High Court in M.P. No.802 of 1992 was passed on the same day. The writ
petition was not ready for hearing on the said date. Admittedly, Dwarka
Prasad Agarwal was not a signatory to the said agreement. He was also not
put on notice there-about. Assuming that he had engaged an Advocate, keeping
in view the fact that he was a proforma respondent therein, the said learned
Advocate was merely required to watch the proceedings as no relief had been
G claimed against him. The question of the learned advocate of Dwarka Prasad
Agarwal not raising any objection as regard legality or otherwise of the said
agreement dated 29.6.1992 neither directly nor indirectly arose for
consideration before the High Court. He also did not make any submission
as regard the lawfulness or otherwise of the said compromise. He merely ·
stated that he had no instruction in the matter. In that view of the matter, it
D.P. AGARWAL v. B.D.AGARWAL [SINHA, .I.) 353
was obligatory on the part of the High Court to issue notice to Late Dwarka A
Prasad Agarwal in respect thereof or to allow sufficient time to the learned
Advocate to obtain proper and adequate instructions.
In the aforementioned premise, the High Court was furthermore required
to apply its own· mind for the purpose of arriving at a finding as to whether
it, in public law remedy, could record the compromise and dispose of the said B
writ petition in terms thereof. The order dated 29.6.1992 passed in M.P.
No.280 of 1992 was purported to have been clarified by the High Court in
its order dated 13.11.1992 in the review· petition being MCC No. 477 of
1977. The said order clearly demonstrates a total non-application of mind on
the part of the High Court. C
Several issues of grave importance were required to be addressed by
the High Court. The High Court sought to take a short cut in holding that the
said compromise was not binding upon Dwarka Prasad Agarwal anci thereby
no writ was issued. The consequence of recording of the said compromise
was tell-tale. Not only pursuant thereto or in furtherance thereof the Registrar D
.of Newspapers, New Delhi, passed an order dated 3.9.1992; it was construed
to be a judgment of the High Court which had been taken aid of by the
respondents herein for the purpose of withdrawal of suits wherein various
disputed questions of facts and law including the genuineness or otherwise
of the agreements were in question and required adjudication. The High
Court was also required to address itself, more so while disposing of'the E
review application, as to whether the purported settlement on the grounds
raised by the appellants herein, was a lawful one. Without any application of
mind, the High Court proceeded to hold that the agreement was lawful. It did
not pose unto itself the right question so as to enable himself to arrive at a
finding of fact resulting in correct answer thereto and, thus, the same would F
amount to a misdirection in law. While doing so, the High Court did not take
into consideration the provisions of the Registration Act or the said Act and,
in particular, Section 198, proviso appended to Section 6 and Section 8-B (ii)
of the Press & Registration of Books Act, 1867.
The High Court also failed and/or neglected to take into consideration G
the fact that the compromise having been entered into by and between the
three out of four partners could not have been termed as settlement of all
disputes and in that view of the matter no compromise could have been
recorded by it. The effect of the order dated 29.6.1992 recording the settlement
was brought to the notice of the High Court, still it failed to rectify the H
A mistake committed by it. The effect of the said order was grave. It was found
to be enforceable. It was construed to be an order of the High Court, required
to be the implemented by the Courts and the statutory authorities.
In Salkia Businessman's Association (supra), this Court observed:
"8. We have carefully considered the submissions of the learned Senior
Counsel on either side. The learned Single Judge as well as the Division
Bench of the High Court have not only oversimplified the matter but
seem to have gone on an errand, carried away by some need to
balance hypothetical public interest, when the real and only question
to be considered was as to whether the respondent Authorities are
bound by the orders passed by the Court on the basis of the
compromise memorandum and whether the proposed move on their
part did not constitute flagrant violation of the orders of the Court -
very much binding on both the parties. The High Court failed to do
justice to its own orders. If courts are not to honour and implement
their own ordc:rs, and encourage party litigants - be they public
authorities, to invent methods of their own to short-circuit and give
a go-by to the obligations and liabilities incurred by them under
orders 0f the court - the rule of law will certainly become a casualty
in the process .,. a costly consequence to be zealously averted by all
and at any rate by the highest courts in the States in the country. It
does not, in our view, require any extraordinary exercise to hold that
the memorandum and terms of the compromise in this case became
part of the orders of the High Court itself when the earlier writ petition
was finally disposed of on 13-2-I 99 I in the terms noticed supra,
notwithstanding that there was no verbatim reproduction of the same
in the order. The orders passed in this regard admit of no doubt or
give any scope for controversy. While so, it is beyond one's
comprehension as to how it could have been viewed as a matter of
mere contract between the parties and under that pretext absolve
itself of the responsibility to enforce it, except by doing violence to
the terms thereof in letter and spirit. As long as the earlier order dated
13-2-1991 stood, it was not permissible to go behind the same to
ascertain the substance of it or nature of compliance when the manner,
mode and place of compliance had already been stipulated with
meticulous care and detail in the order itself. The said decision was
also not made to depend upon any contingencies beyond the control
H of parties in the earlier proceedings."
D.P. AGARWAL v. B.D. AGARWAL [SINHA, J.] 355
We may, however, hasten to add that we do not intend to put a seal of A
our approval to those observations but only wish to point out that as to how
courts or the statutory authority may construe a consent order.
In terms of Section 141 of the Code of Civil Procedure, the provisions
thereof are not applicable in a writ proceeding. No provision of the Code of
Civil Procedure has been made applicable in terms of the rules framed by the B
High Court of Judicature at Nagpur dated 25.9.1951 framed under Article
225 of the Constitution of India. In any event the applicability of the provisions
of the Code of Civil Procedure, if any, would be only with regard to the
procedural and machinery provisions contained therein but thereby no new
right could be created. Even ifthe provisions of Order 23, Rule 3 of the Code C
of Civil Procedure and/or principles analogous thereto are held to be applicable
in a writ proceeding, the Court cannot be permitted to record a purported
compromise in a casual manner. It was suo motu required to address itself to
the issue as to whether the compromise was a lawful one and, thus, had any
jurisdiction to entertain the same. It may be true, as has been contended by
Mr. Rao, that the writ petition was maintainable at the threshold. But once D
it is held that by reason of the purported settlement between the private
parties, the High Court was not required to issue any writ, it could only either
permit the petitioner to withdraw the writ petition and dismiss the same as
having become infructuous. The High Court derives its jurisdiction in terms
of Article 226 of the Constitution of India, if an occasion arises therefor, to E
make judicial review of the order passed by a statutory authority. It is beyond
any cavil that no writ can be issued if the disputes involve private law
character. The writ court has also no jurisdiction to determine an issue on
private dispute over a property or right under a partnership. While purporting
to record a compromise, the writ court cannot enlarge its jurisdiction by
directing that the suits pending in different courts filed or different causes of F
action would also stand compromised. By reason thereof the writ court would
be entrenching upon the jurisdiction of the civil court indirectly which it
could not do directly. For the purpose of granting permission even for
withdrawal of suit in terms of Order 23, Rule I of the Code of Civil Procedure,
the civil courts themselves were required to apply their mind as to whether G
having regard to the dispute between the parties, a case therefor has been
made out or not. The civil court is required to act on its own and not on the
basis of any direction of any other court determining a totally foreign issue.
Furthermore, a writ court can pass an effective order provided it has
jurisdiction in relation thereto. With the enlargement of the power of the H
A court recording compromise in view of the Code of Civil Procedure
(Amendment) Act, 1976, the responsibility and duty of the court also has
increased. By reason of Order 23, Rule 3 of the Code of Civil Procedure, a
party can challenge the legality of the compromise only before the same
court and in that view of the matter the court was enjoined with a solemn
duty to decide such controversy in a lawful manner. A question as to whether
B a compromise is void or voidable under the Indian Contract Act or any other
law for the time being in force, would have, thus, to be determined by the
court itself. Once it is held that the agreement or the compromise was
fraudulent, the same per se would be unlawful and the court is required to
declare the same as such.
c It is now well-settled that an order passed by a court without jurisdiction
is a nullity. Any order passed or action taken pursuant thereto or in furtherance
thereof would also be nullities. In the instant case, as the High Court did not
have any jurisdiction to record the compromise for the reasons stated
hereinbefore and in particular as no writ was required to be issued having
D regard to the fact that public law remedy could not have been resorted to, the
impugned orders must be held to be illegal and without jurisdiction and are
liable to be set aside. All orders and actions taken pursuant to or in furtherance
thereof must also be declared wholly illegal and without jurisdiction and
consequently are liable to be set aside. They are declared as such.
E There is another aspect of the matter which must also be taken notice
of. A party cannot be made to suffer adversely either indirectly or directly by
reason of an order passed by any court of law which is not binding on him.
The very basis upon which a judicial process can be resorted to is
reasonableness and fairness in a trial. Under our Constitution as also the
p International Treaties and Conventions, the right to get a fair trial is a basic
fundamental /human right. Any procedure which comes in the way of a party
in getting a fair trial would be violative of Article 14 of the Constitution of
India. Right to a fair trial by an independent and impartial Tribunal is part
of Article 6( I) of the European Convention for the Protection of Human
Rights and Fundamental Freedoms 1950 (See Clark (Procurator Fiscal,
G Kirkcaldy) v. Kelly, (2003] I All ER 1106). Furthermore, even ifthe Petitioner
herein had filed a writ petition before the High Court in terms of Article 226
of the Constitution of India, the same would not have been entertained as the
impugned order had been passed consequent to and in furtherance of the
purported consent order passed by the High Court. Ordinarily, the High Court
H would not have issued a writ of certiorari for quashing its own order. Even
D.P. AGARWAL v. B.D. AGARWAL [SINHA, J.] 357
in that view of the matter too, it is apposite that this petition under Article A
32 should be entertained.
We may, however, hasten to add that as at present advised we do not
intend to enter into the contention of the petitioners that their fundamental
right under Article 19 of the Constitution of India had been infringed. This
Court would have entered into the question, if the facts were undisputed or B
admitted. The question as regard infringement of fundamental right and that
too under Article 19 of the Constitution of India cannot be gone into when
the facts are disputed. Whether Dwarka Prasad Agarwal and consequently the
substituted petitioners are owners of the newspapers and if so to what extent
being disputed, it cannot be said, that by reason of the impugned order dated C
3.9.1992 passed by the first respondent herein alone, the fundamental right
of the petitioners under Article 19 had been infringed.
We are, therefore, of the opinion that the interest of justice would be
sub-served if the appeals and the writ petition are allowed and the impugned
orders dated 29.6.1992 and 13.11.1992 passed by the High Court as also the D
order dated 3.9.1992 passed by the first Respondent, Registrar, Newspapers
for India, are quashed. All action taken and all orders passed by the statutory
authorites and the civil courts as referred to hereinbefore shall also stand
quashed. As a logical corollary to our order, it must also be held that the writ
petition filed by Late Bishambhar Dayal Agarwal does not servive and must,
therefore, be dismissed. The consequence of this order would be that the E
parties shall be relegated to the same position in which they were immediately
prior to the passing of the order dated 29.6.1992. All parties, statutory
authorities and cou1ts including the civil courts are directed to act accordingly.
These appeals and writ petition are disposed of accordingly with costs.
Counsel's fee assessed at Rs. 25,000 (Rupees twenty five thousand only). F
S.K.S. Appeals/Petition disposed of.