{"id":17310,"date":"1984-10-10T00:00:00","date_gmt":"1984-10-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-p-mittal-vs-state-of-haryana-and-ors-on-10-october-1984"},"modified":"2018-04-29T10:45:19","modified_gmt":"2018-04-29T05:15:19","slug":"m-p-mittal-vs-state-of-haryana-and-ors-on-10-october-1984","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-p-mittal-vs-state-of-haryana-and-ors-on-10-october-1984","title":{"rendered":"M. P. Mittal vs State Of Haryana And Ors on 10 October, 1984"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M. P. Mittal vs State Of Haryana And Ors on 10 October, 1984<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1984 AIR 1888, \t\t  1985 SCR  (1) 940<\/div>\n<div class=\"doc_author\">Author: R Pathak<\/div>\n<div class=\"doc_bench\">Bench: Pathak, R.S.<\/div>\n<pre>           PETITIONER:\nM. P. MITTAL\n\n\tVs.\n\nRESPONDENT:\nSTATE OF HARYANA AND ORS.\n\nDATE OF JUDGMENT10\/10\/1984\n\nBENCH:\nPATHAK, R.S.\nBENCH:\nPATHAK, R.S.\nTHAKKAR, M.P. (J)\n\nCITATION:\n 1984 AIR 1888\t\t  1985 SCR  (1) 940\n 1984 SCC  (4) 371\t  1984 SCALE  (2)555\n\n\nACT:\n     Constitution of  India,  Articles\t32  and\t 226-Whether\nCourt can  decline relief  if its  grant  would\t defeat\t the\ninterests of justice.\n     Dividend due and payable-Whether can be recovered as an\narrear of land revenue including the mode of detention where\nsuch right is founded in private agreement.\n\n\n\nHEADNOTE:\n     The Haryana  State Industrial  Development\t Corporation\nLimited\t (for\tshort,\tthe   Corporation)  underwrote\tsome\npreference shares of M\/s. Depro Foods Limited. The appellant\nManaging Director of M\/s . Depro Foods Ltd. guaranteed by an\nagreement in  his  personal  capacity  the  payment  of\t the\ndividend income\t due in\t respect of  the aforesaid shares to\nthe Corporation.  One of  the provisions  in  the  guarantee\nagreement  declared  \"that  the\t dues  on  account  of\tthis\nguarantee will\tbe recoverable\tin the\tmanner in which land\nrevenue is  collected by  the Government.\"  The\t Corporation\napplied to  the Assist and Collector for instituting recover\nproceedings, against  the appellant because M\/s. Depro Foods\nLtd. failed  to pay  Rs, 1,96,961  representing the dividend\npayable by  it. The Assistant Collector issued a warrant for\nthe arrest  of the  appellant since he made no effort to pay\nup the\tamount due  from him.  The appellant  filed  a\twrit\npetition in  the High Court against the recovery proceedings\nwhich was  dismissed in limine. Hence this appeal by special\nleave.\n     Dismissing the appeal,\n^\n     HELD: (1)\tThis Court always has power to refuse relief\nwhere the  petitioner seeks  to invoke its writ jurisdiction\nin order  to secure  a dishonest advantages or perpetuate an\nunjust gain.  Under art. 226 of the Constitution, it is open\nto the\tHigh Court  to consider\t whether, in the exercise of\nits undoubted  discretionary jurisdiction, it should decline\nrelief to  such petitioner  if the  grant  of  relief  would\ndefeat the  interests of  justice, The\tHigh Court was fully\njustified in refusing relief to the petitioner. [943C; B]\n941\n     (2) In  the instant  case the  appellant knowingly\t and\ndeliberately entered  into the\tGuarantee Agreement,  and is\nliable as Guarantor to make payment of the dividend due from\nMessrs Depro  Foods Limited.  It was  not contended that the\nappellant in  fact does\t not  possess  sufficient  funds  or\ncannot avail of sufficient personal property for the purpose\nof discharging the liability. The record also shows that the\nappellant made\tno attempt  to discharge the liability. When\nthat  is   so  he   is\tnot  entitled  to  relief  in  these\nproceedings. [942H; 943A-B]\n     (3)  It   is  desirable   that  the  High\tCourt,\twhen\ndismissing a  writ petition  in limine\tshould set  forth  a\nbrief statement\t of the\t reasons for  its order\t instead  of\ndisposing of  the proceedings by the single word 'dismissed'\nespecially in those cases where the matter in controversy in\nthe subject  of judicial  examination for the first time and\nhas not\t been processed\t earlier by  an inferior judicial or\nquasi judicial authority. [943E-F]\n\n\n\nJUDGMENT:\n<\/pre>\n<p>     CIVIL APPELLATE  JURISDICTION: Civil Appeal No. 1936 of<br \/>\n1978.\n<\/p>\n<p>     Appeal by\tSpecial leave  from the\t Judgment and  order<br \/>\ndated the  2nd August,\t1978 of\t the Punjab  &amp; Haryana\tHigh<br \/>\nCourt in Civil Writ Petition No. 3272 of 1978.\n<\/p>\n<p>     K.K. Jain,\t S.K. Gupta, P. Dayal and Arun D. Sauger for<br \/>\nthe Appellant.\n<\/p>\n<p>     Harbans Lal,  Ms. Kailash\tMehta and R.N. Poddar or the<br \/>\nRespondent.\n<\/p>\n<p>     The Judgment of the Court was delivered by<br \/>\n     PATHAK, J\tThis appeal  by special\t leave\tis  directed<br \/>\nagainst the  judgment and  order of the High Court of Punjab<br \/>\nand Haryana dismissing a writ petition in limine.\n<\/p>\n<p>     Messrs. Depro  Foods Limited  entered into\t a  contract<br \/>\nwith the  Haryana State\t Industrial Development\t Corporation<br \/>\nLimited, whereby  the said Corporation underwrote preference<br \/>\nshares of Messrs. [, Depro Foods Limited of Rs. 100 each for<br \/>\na total\t value of  Rs. 3.6  lacs on which a dividend of 9.5%<br \/>\nper annum  was payable. The appellant who was apparently, at<br \/>\nthe relevant  time, the\t Managing Director  of Messrs. Depro<br \/>\nFoods  Limited,\t  executed  an\t agreement  under  which  he<br \/>\nguaranteed in  his personal  capacity  the  payment  of\t the<br \/>\ndividend income\t due in\t respect of  the aforesaid shares to<br \/>\nthe said  Corporation. It is not disputed that Messrs. Depro<br \/>\nFoods Limited  did not\tpay Rs.\t 1,96,961  representing\t the<br \/>\ndividend payable  to the said Corporation, and therefore the<br \/>\nappellant became  personally liable as Guarantor to pay that<br \/>\namount. lt  seems that\ton the\tfailure of  the appellant to<br \/>\nmake payment,  the said\t Corporation invoked  a provision in<br \/>\nthe Guarantee agreement which declares:\n<\/p>\n<p><span class=\"hidden_text\">942<\/span><\/p>\n<blockquote><p>\t  &#8220;5. That  the dues  on account  of this  guarantee<br \/>\n     will be recoverable in the manner in which land revenue<br \/>\n     is collected by the Government&#8221;.<\/p><\/blockquote>\n<p>     Consequently it  applied to  the  Assistant  Collector,<br \/>\nSonepat, for instituting recovery proceedings. The Assistant<br \/>\nCollector commenced  coercive measures,\t which included\t the<br \/>\nissue of  a warrant  for the  arrest of\t the appellant.\t The<br \/>\nappellant filed\t a writ\t petition in  the High\tCourt but  a<br \/>\nDivision Bench\tof the\tHigh Court passed an order on August<br \/>\n2, l 978 summarily dismissing the writ petition<br \/>\n     At one  stage during  the hearing\tof  this  appeal  it<br \/>\nappeared possible that the dispute could be resolved if even<br \/>\nnow after a lapse of six years the appellant was prepared to<br \/>\ndischarge his  liability as  Guarantor by  making payment to<br \/>\nthe Corporation\t of the\t amount sought\tto be  recovered, if<br \/>\nnecessary in  accordance with  a convenient time schedule of<br \/>\ninstalments, but  Shri K.K.  Jain, learned  counsel for\t the<br \/>\nappellant,  stated   frankly  that   in\t spite\tof  repeated<br \/>\ncommunications to  his client  he had not received any reply<br \/>\nfrom him.\n<\/p>\n<p>     The questions  have been  raised by learned counsel for<br \/>\nthe appellant.\tBoth questions\tarise on the assumption that<br \/>\nthe appellant  is liable to pay the amount due from him. The<br \/>\nfirst question is: Whether the amount can be recovered as an<br \/>\narrear of  land revenue,  including the\t mode by  detention,<br \/>\nwhere such right is founded in private agreement ? The other<br \/>\nquestions is: If the recovery is made by reference to clause<br \/>\n(bb) of\t s. 98\tof the\tPunjab Land  Revenue Act, 1887 which<br \/>\nspeaks of:-\n<\/p>\n<blockquote><p>\t  &#8220;(bb) Dividend  payable to  the Government  on  1.<br \/>\n     Cumulative Redeemable  Preference Shares  subscribed by<br \/>\n     or on behalf of the Government&#8221;.<\/p><\/blockquote>\n<p>     Can that  clause be  employed for\trecovering  dividend<br \/>\npayable to  Haryana State Industrial Development Corporation<br \/>\nLimited ?\n<\/p>\n<p>     Now there\tis no  dispute that  the appellant knowingly<br \/>\nand deliberately  entered into\tthe Guarantee agreement, and<br \/>\nis liable  as Guarantor\t to make payment of the dividend due<br \/>\nfrom Messrs Depro Foods Limited. Nor is it disputed that the<br \/>\namount due, with interest, stands at  2,02,166 in respect of<br \/>\nthe period  ending with\t the year 1977. It was not contended<br \/>\nthat the appellant in fact does not possess sufficient funds<br \/>\nor cannot avail of sufficient per-\n<\/p>\n<p><span class=\"hidden_text\">943<\/span><\/p>\n<p>sonal property for the purpose of discharging the liability.<br \/>\nThe record  also  shows\t that  before  instituting  coercive<br \/>\nproceedings, the  Assistant Collector provided the appellant<br \/>\nan opportunity\tto pay\tup the amount due from him, and that<br \/>\nthe appellant  make no\tattempt to  discharge the liability.<br \/>\nWhen that  is so,  we are of opinion that he is not entitled<br \/>\nto relief  in these  proceedings. The appeal arises out of a<br \/>\nwrit petition, and it is well settled that when a petitioner<br \/>\ninvokes the jurisdiction of the High Court under Article 226<br \/>\nof the\tConstitution, it  is  open  to\tthe  High  Court  to<br \/>\nconsider  whether,   in\t the   exercise\t of   its  undoubted<br \/>\ndiscretionary jurisdiction, it should decline relief to such<br \/>\npetitioner if the grant of relief would defeat the interests<br \/>\nof justice.  The Court\talways has  power to  refuse  relief<br \/>\nwhere the  petitioner seeks  to invoke its writ jurisdiction<br \/>\nin order  to secure  a dishonest  advantage or perpetuate an<br \/>\nunjust gain.  This is  a case where the High Court was fully<br \/>\njustified in  refusing relief.\tOn that\t ground\t alone,\t the<br \/>\nappeal must fail.\n<\/p>\n<p>     Before parting  with this case, we think it appropriate<br \/>\nto point  out that  it would  be beneficial  to the  general<br \/>\nadministration of justice if in certain cases where the High<br \/>\nCourt disposes of a writ petition in limine it does so by an<br \/>\norder incorporating the reasons for such order. Where a case<br \/>\nis admitted to final hearing, the judgment of the High Court<br \/>\ndisposing of  the appeal  almost invariably  sets forth\t the<br \/>\nreasons for  its decision;  We think  it desirable that even<br \/>\nwhen a\twrit petition  is dismissed in limine the High Court<br \/>\nshould set  out its  reasons, however briefly, for doing so,<br \/>\nespecially in those cases where the matter in controversy is<br \/>\nthe subject  of judicial  examination for the first time and<br \/>\nhas not\t been processed\t earlier by  an inferior judicial or<br \/>\nquasi judicial\tauthority. It  is of  some importance p that<br \/>\nparty should  know from\t the court  of\tfirst  instance\t the<br \/>\nreasons for  an adverse\t decision received  by it,  for that<br \/>\npromotes acceptance  of the  judgment  and  thereby  ensures<br \/>\ncredibility  and   public   confidence\t in   the   judicial<br \/>\ninstitution. It\t must be  remembered  that  the\t High  Court<br \/>\nexercises original  jurisdiction under\tArticle 226  of\t the<br \/>\nConstitution, and  it is  only appropriate that a petitioner<br \/>\nwhose writ  petition is dismissed in limine should know what<br \/>\nare the\t precise reasons  for the adverse order, whether the<br \/>\nwrit petition  has been\t rejected on the ground of laches or<br \/>\nother  preliminary   ground  or\t  on  the   merits  of\t the<br \/>\ncontroversy, and  what are  the reasons\t of the\t High  Court<br \/>\ntherefor. We  may add  that a  brief  statement\t of  reasons<br \/>\nrendered by the High Court, when dismissing the writ<br \/>\n<span class=\"hidden_text\">944<\/span><br \/>\npetition in  limine, is\t of great  assistance also  to\tthis<br \/>\nCourt when  the judgment  and order  of the  High Court\t are<br \/>\nsought to he brought here by a petition for special leave to<br \/>\nappeal. To  sum up,  we think  it desirable  that  the\tHigh<br \/>\nCourt, when  dismissing in  limine, should set forth a brief<br \/>\nstatement of  the reasons for its order instead of disposing<br \/>\nof the proceeding by the single word &#8220;dismissed&#8221;.\n<\/p>\n<p>     Upon the  considerations set  forth earlier, we dismiss<br \/>\nthe appeal but without any order as to costs.<br \/>\nM.L.A.\t  Appeal dismissed.\n<\/p>\n<p><span class=\"hidden_text\">945<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M. P. Mittal vs State Of Haryana And Ors on 10 October, 1984 Equivalent citations: 1984 AIR 1888, 1985 SCR (1) 940 Author: R Pathak Bench: Pathak, R.S. PETITIONER: M. P. MITTAL Vs. RESPONDENT: STATE OF HARYANA AND ORS. DATE OF JUDGMENT10\/10\/1984 BENCH: PATHAK, R.S. BENCH: PATHAK, R.S. THAKKAR, M.P. (J) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-17310","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M. P. 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