Supreme Court of India

Hukam Chand Shyam Lal vs Union Of India And Ors on 17 December, 1975

Supreme Court of India
Hukam Chand Shyam Lal vs Union Of India And Ors on 17 December, 1975
Equivalent citations: 1976 AIR 789, 1976 SCR (2)1060
Author: R S Sarkaria
Bench: Sarkaria, Ranjit Singh
           PETITIONER:
HUKAM CHAND SHYAM LAL

	Vs.

RESPONDENT:
UNION OF INDIA AND ORS.

DATE OF JUDGMENT17/12/1975

BENCH:
SARKARIA, RANJIT SINGH
BENCH:
SARKARIA, RANJIT SINGH
RAY, A.N. (CJ)
BEG, M. HAMEEDULLAH
SHINGAL, P.N.

CITATION:
 1976 AIR  789		  1976 SCR  (2)1060
 1976 SCC  (2) 128


ACT:
     Indias Telegraphs	Act, 1895-S. 5(1)-Read with Rule 422
of  the	 Indian	 Telegraphs  Rules,  1951-Whether  statutory
notice is  mandatory-"Economic Emergency" does not amount to
"public emergency"  within the	meaning of s 5- Scope of the
words "Any  emergency"	in  Rule  422  vis-a-vis  the  words
"public emergency"  in s.  5-Exercise of  power of a drastic
nature in  a mode  other than the one provided, is violative
of the fundamental principles of natural justice.



HEADNOTE:
     The appellants'  telephones were disconnected and taken
temporary possession  of by  the Superintendent	 of  Police,
North  District	  and  the   General   Manager,	  Telephones
respectively on	 various dates acting under the instructions
of the	Administrator, Delhi,  who was	personally satisfied
that  illegal	forward	 trading   (satta)  in	agricultural
commodities was	 being practised  on a	large scale  by them
through their  telephones. The	Orders were purportedly made
under s.  5(1) of  the Indian Telegraphs Act, 1895, and Rule
422 of	the Indian Telegraphs Rules, 1951. These orders were
assailed by the appellants by a writ petition under Art. 226
of the	Constitution which  was allowed by a single Judge of
the High  Court, resulting  in a special appeal by the Union
of India, which was accepted.
     Negativing the contention of the appellants/respondents
viz.;  that   the  impugned   action  of  disconnection	 and
temporary taking over of the telephones was bad because:-
     (a) No  statutory notice  was ever	 given	as  required
under Rules 421 and 422.
     (b) The  Divisional Engineer did not apply his mind and
record his  own satisfaction  about the	 existence  of	"any
emergency" and	as such	 there was  a contravention of Rules
421 and 422 which had to be read together.
     (c) The  reason given  in the  order to the effect that
the appellants	were making  illegal and improper use of the
telephones  by	transmitting  messages	and  information  in
regard	to   Satta  business  which  had  been	banned,	 was
irrelevant and extraneous to Rule 422.
     (d) The  emergency contemplated  by Rule 422 is not the
same as	 "public emergency"  declared under  s. 5,  but "any
emergency", the	 existence of which was to be established to
the satisfaction  of the  Divisional Engineer  and  not	 any
extraneous authority,  the appellate Bench of the High Court
held, (i) that, the requirement of notice could be dispensed
with under Rule 422 by the General Manager Telephones, if he
was satisfied  that the	 telephones were  being used  by the
subscribers for	 illegal forward trading (ii) that, such use
was contrary  to public interest in view of the existence of
"economic" emergency  (iii) that  the words " any emergency"
in Rule	 422 includes an "economic emergency" and (iv) that,
on the	basis of  the certificate in regard to the existence
of  an	'economic  emergency"  the  Divisional	Manager	 was
competent to  pass the	impugned order	in exercise  of	 his
powers under Rule 422.
     While allowing the appeals by special leave the Court,
^
     HELD :  (1) S. 5(1) of the Indian Telegraphs Act, 1895,
if properly construed does not confer unguided and unbridled
power on  the Central  Government/State Government/Specially
Authorised Officer  to take  possession	 of  any  telegraph.
[1065 C]
1061
     (2) Conditions  pre-requisite for the exercise of power
under this section and Rule 422 are:
     (a) the  occurrence of  a "public	emergency"  not	 any
other kind of emergency.
     (b) recording  of its  satisfaction as to the existence
of such	 an emergency  by the  Government or  the  Authority
concerned on  grounds germane  to an  action under  the rule
[1065 C-D]
     (3) The  expression "public  emergency"  has  not	been
defined in  the statute.  Read as a whole, s.5, with the two
phrases in  sub-section (i)  viz. "occurrence  of any public
emergency" and	"or  in	 the  interest	of  public  safety",
clarifies   that    a	"public	  emergency",	within	 the
contemplation of  that section, is one which raises problems
concerning the	interest of  public safety", the sovereignty
and integrity  of India, the security of the State, friendly
relations with	foreign	 States	 or  public  order,  or	 the
prevention of incitement to the commission of an offence. It
is in  the context  of these  matters that  the	 appropriate
authority  has	to  form  an  opinion  with  regard  to	 the
occurrence of  a "public  emergency" with  a view  to taking
further action under s. 5. [1065 D-F]
     (4) "Economic  Emergency" is  not one  of these matters
expressly  mentioned   in  the	 statute.   Mere   "economic
emergency"  may	  not  necessarily   amount  to	  a  "public
emergency" and	justify action	under s.  5 unless it raises
problems relating to the matters indicated therein. [1065 F-
G]
     (5) Notice under Rule 421 cannot be dispensed with. The
scope of the words "any emergency" in Rule 422 is wider than
the expression "public emergency" under s. 5. The subjective
satisfaction as	 to the	 existence of  "any emergency" under
Rule 422  is that  of the Divisional Engineer, on a rational
basis on relevant material which may include any certificate
or report of the appropriate Government as to the occurrence
of a  "public emergency".  The requirement of recording such
satisfaction  by   the	Divisional   Engineer  with  reasons
therefor, is  implicit in  the Rule.  That will be a minimal
safeguard against  arbitrary exercise  of the drastic power.
[1066 A, C-D]
     (6)  The  ground  for  disconnection  and	taking	over
temporary possession  of the  telephones viz., 'that illegal
forward trading (satta) in agricultural commodities is being
practised" amounts to "improper or illegal use of telegraphs
and is	not a  relevant consideration  under Rule  422.	 The
appropriate course  to be  followed was that laid down in R.
427 read  with Rr.  416 and 421, after giving an opportunity
to explain  their conduct, in consonance with the principles
of natural justice. [1066 F-G]
     (6) It  is well-settled  that where a power is required
to be  exercised by a certain authority in a certain way, it
should be  exercised in that manner or not at all, and other
modes of  performance are  necessarily forbidden.  It is all
the more  necessary to	observe this rule where the power is
of a  drastic nature  and, its exercise in a mode other than
the one	 provided, will	 be  violative	of  the	 fundamental
principle of  natural justice.	Resort to the wrong and more
drastic course	provided in  rule 422, on a ground which was
not germane  to an  action  under  that	 rule  violates	 the
impugned order,	 particularly when  it is  manifest, in	 the
instant case  that the authority was influenced more by this
ground and  less, if  at all,  by the  existence of  "public
emergency" certified by the State [1066 H, 1067 A-B]



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 1848
and 1849 of 1974.

Appeals by Special Leave from the Judgment and Orders
dated the 27-11-1973 & 23-5-74 of the Delhi High Court in
L.P.A. No. 172/73 and Civil Writ No. 237 of 1974
respectively.

Hardyal Hardy, S. K. Mehta, K. R. Nagaraja and P. N.
Puri for the Appellants.

1062

Mrs. Shyamla Pappu and Girish Chandra for Respondents
1-3.

R. N. Sachthey for Respondents 4-5.

The Judgment of the Court was delivered by
SARKARIA, J. This judgment will govern the disposal of
these two appeals which arise out of a common judgment of
the High Court of Delhi dismissing the writ petitions filed
by the appellants and others, under Article 226 of the
Constitution.

On November 27, 1972, the Administrator of Delhi, made
an order under s. 5 of the Indian Telegraphs Act. 1885 (for
short, the Act) authorising the Superintendent of Police,
North District, to take temporary possession “until further
orders” of certain specified telephones installed in rooms
and cabins of the building known as Coronation Hotel,
Fatehpuri, Delhi. The order reads as under:

“Whereas the Administrator of Delhi is satisfied
that illegal forward trading (satta) in agricultural
commodities is being practised on a large scale through
the following telephones installed in the rooms/cabins
in the premises of the Coronation Hotel, Fatehpuri,
Delhi, thereby affecting adversely the price of the
supply essential to the life of the community.

Whereas public emergency exists and the
Administrator, Delhi is satisfied that the continuation
of satta at the aforesaid premises through the
telephones given above is prejudicial to public
interest and as such it is necessary to take temporary
possession of all the aforesaid telephones from the
premises in question.”

Another order in similar terms was made on December 4,
1972 by the Administrator for taking over certain other
telephones.

Four subscribers, who were affected by these orders
challenged their validity by writ petitions in the High
Court. A Bench of the High Court allowed those petitions and
quashed the orders in question on the ground that resort
cannot be had to s. 5(1) of the Act for taking temporary
possession of the subscribers’ telephones.

The General Manager, Telephones, Delhi also, made
orders on November 28, 1972 and December 5, 1972, purporting
to act under Rule 422 of the Indian Telegraphs Rules, 1951,
(for short, the Rules) for disconnecting the telephones and
non-exchange lines. One of those orders, dated November 28,
1972, may be extracted as a specimen:

“The Delhi Administration has certified vide order
No. F5/20/72/C-HG dated 27-11-1972 that public
emergency exists and that continuation of “satta’ at
the premises of Coronation Hotel Fatehpuri through the
telephones is pre judicial to public interest.

1063

The undersigned in exercise of the powers
conferred under rule 422 of Indian Telegraphs Rules,
1951 hereby orders to disconnect the telephones and
Non-exchange Lines mentioned in the list supplied by
Delhi Administration (copy attached).”

Thereupon the appellants filed C.W. 470 of 1973 in the
High Court praying for a writ to quash these orders of the
General Manager and for restoration of their telephone
connections. This writ petition was heard by a learned
Single Judge of the High Court who allowed the same and
quashed the impugned orders and further directed that the
telephones be restored to the appellants.

Aggrieved, the Union of India and other respondents
carried a special appeal to the appellate Bench of the High
Court. Before the appellate Bench it was contended that the
impugned action was bad because: (a) no prior notice in
regard to the same was given to the appellants; (b) the
Divisional Engineer did not apply his mind and record his
own satisfaction about the existence of any emergency and as
such there was a contravention of Rules 421 and 422 which
had to be read together; (c) the reason given in the
impugned order, to the effect, that the appellants were
making illegal and improper use of their telephones inasmuch
as they were transmitting messages and information in regard
to satta business which had been banned, was irrelevant and
extraneous to Rule 422 under which the impugned action has
been purportedly taken; (d) the emergency contemplated by
Rule 422 is not the same as a ‘public emergency’ declared
under s.5, but is an emergency arising out of the breakdown
of the telecommunications due to a technical defect, labour
trouble, vis major, fire or the like, the existence of which
was to be established to the satisfaction of the Divisional
Engineer and not any extraneous authority. Stress was laid,
in this connection, on the fact that the word “emergency” in
Rule 422 is not qualified by the prefix “public”, instead,
the words used are “any emergency”.

The High Court negatived these contentions. In its
opinion, the requirement of notice could be dispensed with
under r. 422 if the General Manager, Telephones, was
satisfied that the telephones were being used by the
subscribers for illegal forward trading and that such use
was contrary to public interest in view of the existence of
“economic” emergency. It further held that the words “any
emergency” in Rule 422 include an ‘economic emergency’, and
on the basis of the certificate in regard to the existence
of an “economic emergency” issued under s. 5, by the Delhi
Administration. The Divisional Manager was competent in
exercise of his powers under Rule 422 to pass the impugned
orders. In the result, it set aside the decision of the
learned Single Judge and dismissed the writ petition with
the observation that “the telephone authorities should treat
these disconnections as temporary and allow the petitioners
to get back their connections, if the General Manager is
satisfied that the emergency caused by the shortage in
supply of the commodities on which the forward trading was
banned, was over”.

1064

Hence these appeals.

The contentions canvassed before the High Court have
been repeated before us. Before dealing with the same, it
will be worthwhile to have a look at the relevant statutory
provisions.

Section 5 of the Act provides:

“(1) On the occurrence of any public emergency, or
in the interest of the public safety, the
Central Government or State Government or any
officer specially authorised in this behalf
by the Central Government or a State
Government may, if satisfied that it is
necessary or expedient so to do, take
temporary possession (for so long as the
public emergency exists or the interest of
the public safety requires the taking of such
action) of any telegraph established,
maintained or worked by any person licensed
under this Act.

(2) On the occurrence of any public emergency or
in the interest of the public safety, the
Central Government or a State Government or
any officer specially authorised in this
behalf by the Central Government or a State
Government may, if satisfied that it is
necessary or expedient so to do in the
interest of the sovereignty and integrity of
India, the security of the State, friendly
relations with foreign States or public order
or for preventing incitement to the
commission of an offence, for reasons to be
recorded in writing, by order, direct that
any message or class of messages to or from
any person or class of persons or relating to
any particular subject, brought for
transmission by or transmitted or received by
any telegraph, shall not be transmitted, or
shall be intercepted or detained, or shall be
disclosed to the Government making the order
or an officer thereof mentioned in the order:
Provided that press messages intended to be
published in India of correspondents accredited to the
Central Government or a State Government shall not be
intercepted or detained, unless their transmission has
been prohibited under this sub-section.”
The material rules are these:

“421. Disconnection of telephones.-Where the
Divisional Engineer is satisfied for reasons to be
recorded in writing that it is necessary to do so, he
may, after giving the subscriber a notice in writing
for a period which shall not except in emergent cases
be less than 7 days, disconnect the telephone, and in
such case, the subscriber shall be entitled to refund
of rent for the unexpired portion of the period for
which the connection or service was given.

1065

422. Right of disconnection in emergency.-The
Divisional Engineer may, in the event of any emergency,
disconnect any subscriber, with or without notice. In
case such disconnection exceeds a period of seven days,
the subscriber shall be entitled to proportionate
refund of rent.

427. Illegal or improper use of telephones.-A
subscriber shall be personally responsible for the use
of his telephone. No telephone shall be used to disturb
or irritate any person or for the transmission of any
message or communication which is of an indecent or
obscene nature or is calculated to annoy any person or
to disrupt the maintenance of public order in any other
manner contrary to any provision of law.”
Section 5(1), if properly construed, does not confer
unguided and unbridled power on the Central Government/State
Government/Specially Authorised Officer to take possession
of any telegraph. Firstly, the occurrence of a ‘public
emergency’ is the sine qua non for the exercise of power
under this section. As a preliminary step to the exercise of
further jurisdiction under this section the Government or
the authority concerned must record its satisfaction as to
the existence of such an emergency. Further, the existence
of the emergency which is a pre-requisite for the exercise
of power under this section, must be a ‘public emergency’
and not any other kind of emergency. The expression ‘public
emergency’ has not been defined in the statute, but contours
broadly delineating its scope and features are discernible
from the section which has to read as a whole. In sub-
section (1) the phrase ‘occurrence of any public emergency’
is connected with and is immediately followed by the phrase
“or in the interests of the public safety”. These two
phrases appear to take colour from each other. In the first
part of sub-s. (2) these two phrases again occur in
association with each other, and the context further
clarifies, with amplification, that a ‘public emergency’
within the contemplation of this section is one which raises
problems concerning the interest of the public safety, the
sovereignty and integrity of India, the security of the
State, friendly relations with foreign States or public
order or the prevention of incitement to the commission of
an offence. It is in the context of these matters that the
appropriate authority has to form an opinion with regard to
the occurrence of a ‘public emergency’ with a view to taking
further action under this section. Economic emergency is not
one of those matters expressly mentioned in the statute.
Mere ‘economic emergency’-as the High Court calls it-may not
necessarily amount to a ‘public emergency’ and justify
action under this section unless it raises problems relating
to the matters indicated in the section.

Rules 421 and 422 occur in serial order in a section of
Part V under the group caption, “Telephone connections and
other services”. Rule 421 requires the Divisional Engineer
to record his satisfaction, supported by reasons, for the
proposed disconnection of the telephone. It further requires
that authority to give a notice in writing to the
subscriber. Such notice shall ordinarily be of not less than
seven
1066
days. In emergent cases, the period of this notice can be
less than seven days. But even in emergent cases under this
Rule, the notice cannot be dispensed with altogether.

Rule 422 empowers the Divisional Engineer to disconnect
any subscriber ‘in the event of any emergency’ with or
without notice. The existence of “any emergency” to the
satisfaction of the Divisional Engineer, appears to be a
necessary pre-requisite to the exercise of the power under
this rule. It is significant that while s. 5 speaks of the
occurrence of a ‘public emergency’, satisfaction with regard
to the existence of which is to be recorded by the
appropriate authority mentioned in that section, Rule 422
purports to empower the Divisional Engineer to take action
thereunder in the event of “any emergency”. The scope of the
words “any emergency” in Rule 422 is apparently wider than
the expression “public emergency” used in s. 5. It follows
that the satisfaction is regard to the existence of “any
emergency” under Rule 422 is to be of the Divisional
Engineer. He has to arrive at such satisfaction rationally
on relevant material which may include any certificate or
report of the appropriate Government as to the occurrence of
a ‘public emergency’. The requirement of recording such
satisfaction by the Divisional Engineer, with reasons
therefor, is implicit in the Rule. That will be a minimal
safeguard against arbitrary exercise of this drastic power.
In this connection, it will not be out of place to mention
here, that sub-section (2) of s. 5 which made the
Certificate of the Central/State Government conclusive proof
as to the existence of a ‘public emergency’, stood deleted
and replaced by a different provision, at the time when the
impugned action was taken in this case. That is an
additional reason for holding that it was the Divisional
Engineer who had to form his own opinion as to the existence
of an emergency, before taking action under r. 422.

Having heard the Counsel on both sides, we are of
opinion, that the impugned Order suffers at least from one
apparent defect of jurisdiction.

Assuming that the General Manager was competent to make
an order under Rule 422, the power has been exercised mainly
on a ground which is not a relevant consideration under this
Rule. This ground as recited in the Delhi Administration
Notification of December 4, 1972 and reproduced in the
impugned order of the General Manager, Telephones, is that
illegal forward trading (satta) in agricultural commodities
is being practised in a large scale through the telephones
in question at the premises of Coronation Hotel, Fatehpuri.
In other words, the impugned action has been taken chiefly
on the ground that the appellants have been making improper
or illegal use of these telephones. This being the position,
the appropriate course to be followed was that laid down in
Rule 427 read with Rules 416 and 421. But this was not done.

It is well settled that where a power is required to be
exercised by a certain authority in a certain way, it should
be exercised in that manner or not at all, and all other
modes of performances are necessarily forbidden. It is all
the more necessary to observe this rule
1067
where power is of a drastic nature and its exercise in a
mode other than the one provided, will be violative of the
fundamental principles of natural justice. Now, in the
present case, if the telephones of the appellants were to be
disconnected on the ground of misuse, then they had to give,
in consonance with the principles of natural justice,
opportunity to the appellants to explain their conduct
before taking action under Rule 427 read with Rules 416 and

421. Resort to the wrong and more drastic course provided in
Rule 422, on a ground which was not germane to an action
under that Rule, vitiates the impugned order, particularly
when it is manifest that in making the impugned order, the
General Manager was influenced more by this ground and less,
if at all, by the existence of ‘public emergency’ certified
by the Delhi Administration.

For the foregoing reasons we accept these appeals,
allow the writ petitions, quash the impugned orders and
direct the respondents to restore the telephone connections
to each of these appellants. However in the circumstances of
the cases we make no order as to costs.

S.R.					    Appeals allowed.
1