{"id":186093,"date":"1979-11-09T00:00:00","date_gmt":"1979-11-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shiv-shanker-dal-mills-etc-etc-vs-state-of-haryana-ors-etc-on-9-november-1979"},"modified":"2016-07-25T10:48:27","modified_gmt":"2016-07-25T05:18:27","slug":"shiv-shanker-dal-mills-etc-etc-vs-state-of-haryana-ors-etc-on-9-november-1979","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shiv-shanker-dal-mills-etc-etc-vs-state-of-haryana-ors-etc-on-9-november-1979","title":{"rendered":"Shiv Shanker Dal Mills Etc. Etc vs State Of Haryana & Ors. Etc on 9 November, 1979"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Shiv Shanker Dal Mills Etc. Etc vs State Of Haryana & Ors. Etc on 9 November, 1979<\/div>\n
Equivalent citations: 1980 AIR 1037, \t\t 1980 SCR (1)1170<\/div>\n
Author: V Krishnaiyer<\/div>\n
Bench: Krishnaiyer, V.R.<\/div>\n
           PETITIONER:\nSHIV SHANKER DAL MILLS ETC. ETC\n\n\tVs.\n\nRESPONDENT:\nSTATE OF HARYANA & ORS. ETC.\n\nDATE OF JUDGMENT09\/11\/1979\n\nBENCH:\nKRISHNAIYER, V.R.\nBENCH:\nKRISHNAIYER, V.R.\nPATHAK, R.S.\nKOSHAL, A.D.\n\nCITATION:\n 1980 AIR 1037\t\t  1980 SCR  (1)1170\n 1980 SCC  (2) 437\n CITATOR INFO :\n F\t    1985 SC 218\t (13,14,15)\n R\t    1985 SC 901\t (11)\n R\t    1990 SC 313\t (16)\n R\t    1990 SC 772\t (24,32)\n\n\nACT:\n     Constitution of  India  1950,  Article  226-High  Court\nholding levy  illegal- Consequential  liability\t to  refund-\n'Alternative  remedy'  available-Jurisdiction  under-Whether\nbarred.\n\n\n\nHEADNOTE:\n     In Kewal  Krishan puri  v. State  of Punjab  and others\n[1979] 3 S.C.R. page 1217, this Court struck down payment of\nmarket fees at the increased rate of 3 per cent (raised from\nthe original  2 per cent) under Haryana Act No.22 of 1977. A\nconsequential liability\t was therefore\tcast on\t the  market\ncommittees to refund the excess amounts collected.\n     The appellants  and the  petitioners who had paid under\nmistake the  excess sums  demanded a direction to the effect\nthat these amounts be refunded.\n     On\t the  question\tof  refund  of\tthe  excess  amounts\ncollected by the market committees.\n^\n     HELD| 1.  Where public  bodies under  colour of  public\nlaws  recover\tpeople's  money,   later  discovered  to  be\nerroneous levies,  the dharma  of the situation admits of no\nequivocation. There  is no  law of limitation especially for\npublic bodies  on the  virtue of  returning what was wrongly\nrecovered to whom it belongs. In our jurisprudence it is not\npalatable to turn down the prayer for high prerogative writs\non the\tnegative plea  of alternative remedy, since the root\nprinciple  of  law  married  to\t justice,  is  ubi  jus\t ibi\nremedium.\n     2. In  our jurisdiction,  social justice is a pervasive\npresence and  save in  special situation  it is\t fair to  be\nguided by  the strategy\t of equity by asking those who claim\nthe services  of the  judicial process\tto embrace the basic\nrules of  distributive justice, while moulding the relief by\nconsenting  to\t restore  little   sums\t taken\t in   little\ntransactions from little persons to whom they belong.\n     3. Article\t 226 grants an extraordinary remedy which is\nessentially discretionary, although founded on legal injury.\nIt is  perfectly open for the court exercising this flexible\npower to  pass such  orders as\tpublic interest dictates and\nequity projects.\n     In the  instant case  although  the  refund  of  excess\ncollections might be legally due to the traders, many of the\ntraders had  themselves recovered the excess percentage from\nthe next  purchasers. To the extent the traders had paid out\nof their own, they were entitled to keep them, but not where\nthey had  in turn collected from elsewhere. It would be hard\nto leave  every agriculturist  to file a suit or other legal\nproceeding   for   recovery   of   negligible\tsums   which\ncumulatively amount to colossal amounts.\n1171\n     4. In  Newabganj Sugar  Mills v.  Union  of  India\t and\nothers<\/a> [1976]  1 SCR  803 this Court in a similar  situation\ndevised a  new procedure  to deal with a new situation where\nequity demanded\t redistribution but procedural expensiveness\nand cumbersomeness effectively thwarted legal actions.\n     5. Situations without precedent demand remedies without\nprecedent.\n     [The Court\t devised a  scheme of  refund by  the market\ncommittees and\tredistribution of the small amounts to those\nfrom whom unwarranted collections had been made.]\n\n\n\nJUDGMENT:\n<\/pre>\n
     CIVIL APPELLATE  JURISDICTION : Civil Appeal Nos. 3220-
\n3234 of 1979.\n<\/p>\n
     Appeals by\t Special Leave\tfrom the  Judgment and Order
\ndated 11-7-79,\t23-8-79, 8-8-79, 15-10-79, 30-7-79, 18-9-79,
\n22-10-79, 18-10-79,  29-10-79, 16-10-79, and 12-10-79 of the
\nPunjab and  Haryana High  Court in Civil Writ Petitions Nos.
\n2306, 2966,  2737, 3617, 2588, 3277, 3749, 3697, 3820, 3625,
\n3624 and 315-317\/79 respectively.\n<\/p>\n
\t\t\t    AND
\n     Writ Petitions  No. 892,  918, 921, 979-980, 1057-1058,
\n1095, 1234, 1273, 1051, 997, 940 and 981\/79.\n<\/p>\n
     (Under Article 32 of the Constitution)
\n     Dr. Y.  S. Chitale\t (CA 3220\/79),\tR. A.  Gupta, Adarsh
\nGoel and  S. K.\t Goel, for  the Appellant  in CA 3220\/79 and
\n3222\/79 for the Petitioner in W.P. 892, 918 and 921\/79.\n<\/p>\n
     B. Datta  and K.  K. Manchanda  for the Appellant in CA
\n3221\/79, 3224-3226\/79.\n<\/p>\n
     Anil B. Dewan, Adarsh Goel, S. K. Goel, and R. A. Gupta
\nfor the Appellant in CA 3323\/79.\n<\/p>\n
     Adarsh K.\tGoel, S.  K. Goel  and R.  A. Gupta  for the
\nAppellants in  CA 3222\/79,  for the Petitioner in WP 892\/79,
\n918\/79, 921\/79.\n<\/p>\n
     A. K.  Goel and  S. K.  Goel for  the Petitioner  in WP
\n979\/79.\n<\/p>\n
     B.Datta and  K. K.\t Manchanda for\tthe Petitioner in WP
\n980\/79.\n<\/p>\n
     Sarwa Mitter,  Ved Prakash Goel and B. S. Malik for the
\nPetitioner.\n<\/p>\n
     M. P.  Jha, Gyan  Chand Dhurtwala\tand Sanjee Walia for
\nthe Petitioner in WP 1057-58\/79.\n<\/p>\n
     M. P.  Jha and P. C. Khunger for the Petitioner in W.P.
\n1095\/79.\n<\/p>\n
     N. D.  Garg and  T. L.  Garg for  the Petitioner  in WP
\n1234\/79.\n<\/p>\n
1172<\/span><\/p>\n
     R.K. Garg\t(WP 892\/79 and CA 3220\/79) Gian Singh and S.
\nC. Patel  for the  Respondents 2-3  in CAs.  3220\/79,  3221,
\n3222, 3223,  3224 and  for the Respondent in WP 892\/79, 921,
\n979, 981,  1057-58\/79, 1273,  997 and  for Respondent  in CA
\n3230, 3225\/79.\n<\/p>\n
     Hardev Singh  and R.S  Sodhi for  the Respondent  in WP
\n918\/79 and 980\/79, 1095 and 1234\/79.\n<\/p>\n
     Adarsh Goel  and Gyan Sudha Misra for the Petitioner in
\nWP 1273\/79.\n<\/p>\n
     The Order of the Court was delivered by
\n     KRISHNA IYER, J. This big bunch of writ petitions shows
\nhow  litigation\t  has  a   habit  of  proliferation  in\t our
\nprocessual system  since cases\tare considered in isolation,
\nnot  in\t  their\t comprehensive\t implications\tand   docket
\nmanagement is  an art  awaiting its  Indian dawn.  The facts
\nbeing admitted,\t obviate debate.  All these  appellants\t and
\nwrit petitioners  had paid market fees at the increased rate
\nof 3  per cent\t(raised from  the original 2 per cent) under
\nHaryana Act  No. 32  of 1977.  Many dealers  challenged\t the
\nlevies as  unconstitutional, and  this Court, in a series of
\nappeals (C.A.  Nos. 1083  of 1977  etc.) (1)  ruled that the
\nexcess of  1 per  cent over  the original rate of 2 per cent
\nwas ultra  vires. This cast a consequential liability on the
\nmarket committees  to refund  the illegal portion. They were
\nnot so\tordered probably  because they could not straightway
\nbe quantified.\tThe petitioners who had, under mistake, paid
\nlarge sums  which, after  the decision of this Court holding
\nthe levy illegal, have become refundable, demand a direction
\nto that\t effect to  the market\tcommittees concerned.  There
\ncannot be  any dispute\tabout the  obligation or the amounts
\nsince the market committees have accounts of collections and
\nare willing  to disgorge  the excess  sums. Indeed,  if they
\nfile suits within the limitation period, decrees must surely
\nfollow. What  the period  of limitation\t is and whether Art.
\n226 will  apply are moot as is evident from the High Court’s
\njudgment, but  we are not called upon to pronounce on either
\npoint in the view we take. Where public bodies, under colour
\nof public laws, recover people’s moneys, later discovered to
\nbe erroneous  levies, the  dharma of the situation admits of
\nno equivocation.  There is  no law of limitation, especially
\nfor public  bodies, on\tthe virtue  of\treturning  what\t was
\nwrongly recovered to whom it belongs. Nor is it palatable to
\nour  jurisprudence   to\t turn\tdown  the  prayer  for\thigh
\nprerogative writs,  on the  negative  plea  of\t‘alternative
\nremedy’, since the root principle of
\n1173<\/span>
\nlaw married  to justice,  is ubi  jus ibi remedium. Long ago
\nDicey wrote:\n<\/p>\n
\t  “The saw  ubi jus  ibi remedium, becomes from this
\n     point of  view something  more important  than  a\tmere
\n     tautological   proposition.   In\tits   bearing\tupon
\n     constitutional law,  it means that the Englishmen whose
\n     labours gradually\tformed the  complicated set  of laws
\n     and institutions  which we call the Constitution, fixed
\n     their minds far more intently on providing remedies for
\n     the enforcement  of particular  rights or\tfor averting
\n     definite wrongs,  than upon  any  declarations  of\t the
\n     Rights of\tMan or Englishmen….The Constitution of the
\n     United States  and the  Constitutions of  the  separate
\n     States are\t embodied in  written or  printed documents,
\n     and contain declaration of rights. But the statesmen of
\n     America have  shown an  unrivalled skill  in  providing
\n     means for\tgiving legal security to the rights declared
\n     by American Constitutions. The rule of law is as marked
\n     a feature of the United States as of England.”<\/p><\/blockquote>\n
     Another point. In our jurisdiction, social justice is a
\npervasive presence; and so, save in special situations it is
\nfair to\t be guided by the strategy of equity by asking those
\nwho claim the service of the judicial process to embrace the
\nbasic rule  of\tdistributive  justice,\twhile  moulding\t the
\nrelief, by  consenting to  restore  little  sums,  taken  in
\nlittle transactions,  from  little  persons,  to  whom\tthey
\nbelong.\n<\/p>\n
     When  we  reminded\t counsel  on  both  sides  of  these
\nguidelines  of\tGood  Samaritan\t jurisprudence\tand  desired
\nconsensual disposal  of these  cases, we  gratifyingly found
\nwelcome echo and we appreciatively record this stance.\n<\/p>\n
     The counsel  for the market committees pointed out that
\nalthough refund\t of excess  collections might be legally due
\nto the\ttraders many of the traders had themselves recovered
\nthis excess percentage from the next purchasers. So much so,
\nthese tiny  tittles if\tthey are  to return  to the original
\npayers, should revert to the next purchasers themselves. The
\ntraders who  are the  petitioners have no more right to keep
\nsuch small  sums than  the market  committees themselves. To
\nthe extent  to which  the traders had paid out of their own,
\nof course,  they were  entitled to  keep them, but not where
\nthey had,  in turn,  collected from  elsewhere. It  would be
\nhard to\t leave every  agriculturist to\tfile a suit or other
\nlegal proceeding  for  recovery\t of  negligible\t sums  which
\ncumulatively amount to colossal amounts. Many a little makes
\na mickle. A similar situation arose in Newabganj Sugar
\n1174<\/span>
\nMills case(1)  where this  Court devised  a new procedure to
\ndeal  with   a\t new   situation   where   equity   demanded
\nredistribution\t  but\t  procedural\texpensiveness\t and
\ncumbersomeness effectively  thwarted such  legal actions  by
\nthe  “small”   many.  Situations  without  precedent  demand
\nremedies without precedent.\n<\/p>\n
     We indicated  to counsel  that the procedure adopted in
\nthe Newabganj  Sugar Mills  case  (supra)  may\tusefully  be
\nadapted to the present case. In broad principle, counsel did
\nagree, and  we proceed\ton that\t footing, that\twe devise  a
\nscheme\t of    refund\tby   the   market   committees\t and
\nredistribution, to  the extent\tindicated  above,  of  small
\namounts to  those from whom unwarranted collections had been
\nmade, may  be unwittingly, by the traders who are appellants
\nor petitioners.\n<\/p>\n
     Article 226  grants an  extra-ordinary remedy  which is
\nessentially discretionary, although founded on legal injury.
\nIt is perfectly open for the court, exercising this flexible
\npower, to  pass such  order as\tpublic interest dictates and
\nequity projects.\n<\/p>\n
\t  “Courts of  equity may, and frequently do, go much
\n     further both to give and withhold relief in furtherance
\n     of the  public interest  than they are accustomed to go
\n     where only private interests are involved. Accordingly,
\n     the granting  or withholding  of relief may properly be
\n     dependent\t upon\t considerations\t  as\tof    public
\n     interest….”(2)
\nKeeping in  mind these\tguidelines  we\tmake  the  following
\ndirections:\n<\/p><\/blockquote>\n
     I. Subject\t to the directions given below, all the sums
\ncollected  by\tthe  various   market  committees   who\t are
\nrespondents in these various writ petitions or appeals shall
\nbe liable  to be  paid into  the High  Court of\t Punjab\t and
\nHaryana within\tone week  of intimation\t by the Registrar of
\nthe amount so liable to be paid into the court.<\/p><\/blockquote>\n
     II. A statement of the amounts collected in excess (1%)
\nshall be  put into  this court by the dealers with copies to
\nthe various  market committees aforesaid within 10 days from
\ntoday, and if there is any difference between the parties it
\nshall be brought to the notice of this Court in the shape of
\nmiscellaneous petitions.  On final  orders, if\tany,  passed
\nthereon by  this Court,\t those amounts,\t as  so\t determined,
\nshall be treated as final.\n<\/p>\n
1175<\/span><\/p>\n
     III. The Registrar of the High Court shall issue public
\nnotice and  otherwise give  due publicity  to the  fact that
\ndealers who have not passed on the liabilities to others and
\nothers who  have contributed  to or  paid the excess one per
\ncent covered  by these\twrit petitions\tand appeals may make
\nclaims for  such sums as are due to them from him within one
\nmonth or  such other  period as\t he may\t fix. The  Registrar
\nshall scrutinise  such claims  and  ascertain  the  sums  so
\nproved.\t He   will  thereupon\tdemand\tof  all\t the  market
\ncommittees concerned  payment into the Registry of such sums
\nin regard  to which  proof of claims have been made. On such
\nintimation,  the   market  committees  shall  pay  into\t the
\nRegistry the amounts so demanded by the Registrar within one
\nweek of\t such intimation.  The amount shall be paid together
\nwith interest  at 10  per cent per annum from today upto the
\ndate of deposit with the Registrar.\n<\/p>\n
     IV. It  shall be  open to\tthe Registrar  to make\tsuch
\nperiodical claims  on appropriate  proof by claimants on the
\nlines stated above.\n<\/p>\n
     V. He  will devise\t the  mechanics\t of  processing\t the
\nclaims as  best as  he may and, in the event of dispute, may
\nrefer to  the High  Court for its decision of such disputes,
\nif he  thinks it necessary. Otherwise, he may dispose of the
\nobjections finally.\n<\/p>\n
     VI. If  any further  directions regarding the mechanics
\nof the claim of refund or otherwise are found necessary from
\nthis Court,  the High Court will report about such matter to
\nthis Court and orders made thereon will bind the parties.\n<\/p>\n
     VII. If  parties eligible\tfor repayment  of amounts do
\nnot claim  within one year from today the Registrar will not
\nentertain any  further claims.\tIt  will  be  open  to\tsuch
\nparties to  pursue their  remedies for recovery for any sums
\nthat may be due to them.\n<\/p>\n
     VIII. Each State Marketing Board will deposit within 10
\ndays from  today a  sum of  Rs. 5,000\/- before the Registrar
\nfor  the   preliminary\texpenses   of  publicity  and  other
\nincidentals for\t the implementation  of the directions given
\nabove. Any  unexpended amount,\tat the end of one year, will
\nbe repaid to the respective State Marketing Board.\n<\/p>\n
     IX. We  further direct  that the  unclaimed amounts, if
\nany, shall  be\tpermitted  to  be  used\t by  the  respective
\nMarketing Committees  for the  purposes falling\t within\t the
\nstatute as interpreted by this Court in the CA No. 1083\/77.\n<\/p>\n
1176<\/span><\/p>\n
     These appeals and writ petitions are disposed of on the
\nabove lines, the winners being both the sides before us, the
\ninvisible small consumers and above all, justice, equity and
\ngood conscience\t to the inarticulate community, which is the
\nfunctional triumph  of law in action within hailing distance
\nof each other.\n<\/p>\n
     We wind  up with  a word  of satisfaction that each one
\nhas had\t his meed  and in  recognition thereof we direct the
\nparties to bear their own costs.\n<\/p>\n
N.V.K.\n<\/p>\n
1177<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Shiv Shanker Dal Mills Etc. Etc vs State Of Haryana & Ors. Etc on 9 November, 1979 Equivalent citations: 1980 AIR 1037, 1980 SCR (1)1170 Author: V Krishnaiyer Bench: Krishnaiyer, V.R. PETITIONER: SHIV SHANKER DAL MILLS ETC. ETC Vs. RESPONDENT: STATE OF HARYANA & ORS. ETC. DATE OF JUDGMENT09\/11\/1979 BENCH: KRISHNAIYER, […]<\/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-186093","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nShiv Shanker Dal Mills Etc. Etc vs State Of Haryana & Ors. 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