{"id":95398,"date":"2011-08-17T00:00:00","date_gmt":"2011-08-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-of-m-p-vs-union-of-india-anr-on-17-august-2011"},"modified":"2017-05-29T14:09:52","modified_gmt":"2017-05-29T08:39:52","slug":"state-of-m-p-vs-union-of-india-anr-on-17-august-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-of-m-p-vs-union-of-india-anr-on-17-august-2011","title":{"rendered":"State Of M.P vs Union Of India &amp; Anr on 17 August, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">State Of M.P vs Union Of India &amp; Anr on 17 August, 2011<\/div>\n<div class=\"doc_bench\">Bench: P. Sathasivam, B.S. Chauhan<\/div>\n<pre>                                                                           REPORTABLE\n\n\n                 IN THE SUPREME COURT OF INDIA\n\n\n                   CIVIL ORIGINAL JURISDICTION\n\n\n                            I.A. NO. 4 OF 2009\n\n\n                                        IN\n\n\n\n                   ORIGINAL SUIT NO. 6  OF 2004\n\n\n\n\nState of Madhya Pradesh                                       .... Applicant(s)\/\n\n                                                                 Plaintiff\n\n             Versus\n\n\n\nUnion of India &amp; Anr.                                      .... Respondent(s)\/\n\n                                                                Defendants\n\n\n\n\n\n                              J U D G M E N T \n<\/pre>\n<p>P. Sathasivam, J.\n<\/p>\n<p>1)    In the year 2004, the State of Madhya Pradesh has filed <\/p>\n<p>Original Suit No. 6 of 2004 before this Court under Article 131 <\/p>\n<p>of   the   Constitution   of   India  calling   for   the   records   relating   to <\/p>\n<p>the   impugned   Notifications\/Orders   dated   02.11.2004   and <\/p>\n<p>04.11.2004 issued by the Ist Defendant-Union of India under <\/p>\n<p>Sections   58(3)   and   58(4)   of   the   Madhya   Pradesh   Re-\n<\/p>\n<p>organisation   Act,  2000  (hereinafter   referred  to  as  &#8220;MPR   Act&#8221;), <\/p>\n<p><span class=\"hidden_text\">                                                                                1<\/span><\/p>\n<p>notifying   the   date   of   dissolution   of   the   M.P.   Electricity   Board <\/p>\n<p>(in   short   &#8220;the   MPEB&#8221;)   for   the   undivided   State   of   Madhya <\/p>\n<p>Pradesh   and   apportioning   its   assets,   rights   and   liabilities <\/p>\n<p>between   the   successor   Electricity   Boards   for   the   reorganized <\/p>\n<p>States   of   Madhya   Pradesh   and   Chhattisgarh   and   to   declare <\/p>\n<p>them   null  and   void  as the   same   are  unconstitutional   and  for <\/p>\n<p>certain other reliefs.\n<\/p>\n<p>2)    In   the   said   suit,   the   plaintiff-State   of   Madhya   Pradesh <\/p>\n<p>filed an application for amendment of plaint being I.A. No.4 of <\/p>\n<p>2009   seeking,  inter   alia,  the   amendment   to   the   effect   that <\/p>\n<p>Sections 58(3) and 58(4) of the MPR Act are violative of Article <\/p>\n<p>14   of   the   Constitution   of   India   inasmuch   as   it   enables   the <\/p>\n<p>Central   Government   to   determine   without   any   guidelines   the <\/p>\n<p>manner   of   exercise   of   power   while   deciding   the   basis   of <\/p>\n<p>apportionment   of   the   assets   and   liabilities   of   the   successor <\/p>\n<p>Boards.\n<\/p>\n<p>3)    Ist   Defendant-Union   of   India,   apart   from   disputing   its <\/p>\n<p>maintainability on delay and laches also contested on merits.\n<\/p>\n<p>4)     2nd  Defendant-State   of   Chhattisgarh   has   objected   to   the <\/p>\n<p>amendment   on   the   ground   that   the   same   is   totally <\/p>\n<p><span class=\"hidden_text\">                                                                              2<\/span><\/p>\n<p>misconceived   and   untenable   in   law   and   that   no   recourse <\/p>\n<p>whatsoever   can   be   permitted   to   challenge   the   validity   of   a <\/p>\n<p>Central   law   under   the   exclusive   jurisdiction   of   this   Court <\/p>\n<p>under   Article   131   of   the   Constitution   of   India.     The   State   of <\/p>\n<p>Chhattisgarh   has   also   contended   that   the   plaintiff-State   of <\/p>\n<p>M.P., on the one hand is seeking a prayer that Ist Defendant <\/p>\n<p>must perform its duty in accordance with the Statute and, on <\/p>\n<p>the   other   hand,   is   challenging   the   validity   of   the   very   same <\/p>\n<p>Statute and, therefore, it is liable to be dismissed.\n<\/p>\n<p>5)     Heard Mr. C.S. Vaidyanathan, learned senior counsel for <\/p>\n<p>the   applicant\/plaintiff-State   of   Madhya   Pradesh,   Mr.   H.P.\n<\/p>\n<p>Raval, learned Additional Solicitor General for Respondent No. <\/p>\n<p>1\/Ist Defendant-Union of India and Mr. Ravi Shankar Prasad, <\/p>\n<p>learned   senior   counsel   for   Respondent   No.   2\/2nd  Defendant-\n<\/p>\n<p>State of Chhattisgarh.\n<\/p>\n<p>6)     In view of the fact that at present we are concerned with <\/p>\n<p>I.A.No.4  of 2009  &#8211;  application for  amendment  of  plaint,  there <\/p>\n<p>is   no   need   to   traverse   all   the   factual   details   as   stated   in   the <\/p>\n<p>plaint and written statement.   However, it is relevant to point <\/p>\n<p><span class=\"hidden_text\">                                                                                    3<\/span><\/p>\n<p>out   the   reliefs   prayed   for   by   the   plaintiff   in   the   main   suit <\/p>\n<p>which are as under:\n<\/p>\n<blockquote><p>      &#8220;(a)    Call   for   the   records   relating   to   the   impugned <\/p>\n<p>              Notifications\/Orders             dated         02.11.2004         and <\/p>\n<p>              04.11.2004 and declare the same as null and void as <\/p>\n<p>              the same is unconstitutional and in violation of Article <\/p>\n<p>              14 of the Constitution;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<blockquote><p>      (b)     Direct   1st  defendant   to   dissolve   MPEB   in   consonance <\/p>\n<p>              with   other   orders\/directions   dated   12.04.2001, <\/p>\n<p>              04.12.2001   and   23.05.2003   passed   by   the   1st <\/p>\n<p>              defendant under Section 58(4) of MPRA;<\/p>\n<\/blockquote>\n<blockquote><p>      (c)     Direct   the   1st     Defendant   by   way   of   mandatory <\/p>\n<p>              injunction   to   perform   its   constitutional   and   the <\/p>\n<p>              statutory   duty   to   lay   down   proper   criteria   for <\/p>\n<p>              apportionment   of   assets,   rights   and   liabilities   in <\/p>\n<p>              accordance with law and to ensure equitable, just, fair <\/p>\n<p>              and   reasonable   apportionment   of   assets,   rights   and <\/p>\n<p>              liabilities   amongst   the   successor   Boards   on   the   basis <\/p>\n<p>              of   revenue   potential   so   as   to   avoid   undue   hardship <\/p>\n<p>              and disadvantage to any of the successor Boards; and<\/p>\n<\/blockquote>\n<blockquote><p>      (d)     Pass any other order and\/or direction, as this Hon&#8217;ble <\/p>\n<p>              Court   may   deem   fit   and   proper   in   the   facts   and <\/p>\n<p>              circumstances of the case.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>7)    In   the   present   application,   i.e.,   I.A.   No.4   of   2009,   the <\/p>\n<p>applicant-State   of   M.P.   has   prayed   for   amendment   of   the <\/p>\n<p>plaint by adding the following relief:\n<\/p>\n<blockquote><p>      &#8220;(b)     to   permit   additional   relief   to   be   incorporated   in   the <\/p>\n<p>      Plaint   viz.,   declare   Sections   58(3)   and   58(4)   of   the   Madhya <\/p>\n<p>      Pradesh   State   Re-organisation   Act,   2000   is   being <\/p>\n<p>      unconstitutional,   arbitrary  and   violative   of   Article   14   of   the <\/p>\n<p>      Constitution&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<p><span class=\"hidden_text\">                                                                                         4<\/span><\/p>\n<\/blockquote>\n<p>8)    In   order   to   consider   the   claim   of   the   plaintiff   and   the <\/p>\n<p>opposition   of   the   defendants,   it   is   desirable   to   refer   the <\/p>\n<p>relevant   provisions.     Order   VI   Rule   17   of   the   Code     of   Civil <\/p>\n<p>Procedure,   1908   (in   short   `the   Code&#8217;)   enables   the   parties   to <\/p>\n<p>make amendment of the plaint which reads as under;\n<\/p>\n<blockquote><p>      &#8220;17.  Amendment   of   pleadings   &#8211;  The   Court   may   at   any <\/p>\n<p>      stage of the proceedings allow either party to alter or amend <\/p>\n<p>      his pleadings in such manner and on such terms as may be <\/p>\n<p>      just,   and   all   such   amendments   shall   be   made   as   may   be <\/p>\n<p>      necessary for the purpose of determining  the real questions <\/p>\n<p>      in controversy between the parties:\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<blockquote><p>             Provided   that   no   application   for   amendment   shall   be <\/p>\n<p>      allowed   after   the   trial   has   commenced,   unless   the   Court <\/p>\n<p>      comes   to   the   conclusion   that   in   spite   of   due   diligence,   the <\/p>\n<p>      party   could   not   have   raised   the   matter   before   the <\/p>\n<p>      commencement of trial.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>The   above   provision   deals   with   amendment   of  pleadings.     By <\/p>\n<p>Amendment Act 46 of 1999, this provision was deleted.  It has <\/p>\n<p>again been restored by Amendment Act 22 of 2002 but with an <\/p>\n<p>added   proviso   to   prevent   application   for   amendment   being <\/p>\n<p>allowed after the trial has commenced, unless the Court comes <\/p>\n<p>to the conclusion that in spite of due diligence, the party could <\/p>\n<p>not have raised the matter before the commencement of trial.\n<\/p>\n<p>The   proviso,   to   some   extent,   curtails   absolute   discretion   to <\/p>\n<p>allow   amendment   at   any   stage.     Now,   if   application   is   filed <\/p>\n<p><span class=\"hidden_text\">                                                                                          5<\/span><\/p>\n<p>after commencement of trial, it must be shown that in spite of <\/p>\n<p>due   diligence,   such   amendment   could   not   have   been   sought <\/p>\n<p>earlier.     The   purpose   and   object   of   Order   VI   Rule   17   of   the <\/p>\n<p>Code is to allow either party to alter or amend his pleadings in <\/p>\n<p>such manner and on such terms as may be just.  Amendment <\/p>\n<p>cannot   be   claimed   as   a   matter   of   right   and   under   all <\/p>\n<p>circumstances,   but   the   Courts   while   deciding   such   prayers <\/p>\n<p>should   not   adopt   a   hyper-technical   approach.     Liberal <\/p>\n<p>approach   should   be   the   general   rule   particularly,   in   cases <\/p>\n<p>where   the   other   side   can   be   compensated   with   costs.\n<\/p>\n<p>Normally,   amendments   are   allowed   in   the   pleadings   to   avoid <\/p>\n<p>multiplicity of litigations.\n<\/p>\n<p>9)    Inasmuch   as   the   plaintiff-State   of   Madhya   Pradesh   has <\/p>\n<p>approached this Court invoking the original jurisdiction under <\/p>\n<p>Article   131   of   the   Constitution   of   India,   the   Rules   framed   by <\/p>\n<p>this Court, i.e., The Supreme Court Rules, 1966 (in short `the <\/p>\n<p>Rules)   have   to   be   applied   to   the   case   on   hand.     Order   XXVI <\/p>\n<p>speaks about &#8220;Pleadings Generally&#8221;.   Among various rules, we <\/p>\n<p>are concerned about Rule 8 which reads as under:\n<\/p>\n<p><span class=\"hidden_text\">                                                                               6<\/span><\/p>\n<blockquote><p>       &#8220;The   Court   may,   at   any   stage   of   the   proceedings,   allow <\/p>\n<p>       either party to amend his pleading in such manner and on <\/p>\n<p>       such   terms   as   may   be   just,   but   only   such   amendments <\/p>\n<p>       shall   be   made   as   may   be   necessary   for   the   purpose   of <\/p>\n<p>       determining   the   real   question   in   controversy   between   the <\/p>\n<p>       parties.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>The   above   provision,   which   is   similar   to   Order   VI   Rule   17   of <\/p>\n<p>the Code  prescribes  that at  any  stage  of the  proceedings,  the <\/p>\n<p>Court   may   allow   either   party   to   amend   his   pleadings.\n<\/p>\n<p>However, it must be established that the proposed amendment <\/p>\n<p>is necessary for the purpose of determining the  real question <\/p>\n<p>in controversy between the parties.\n<\/p>\n<p>10)    This   Court,   while   considering   Order   VI   Rule   17   of   the <\/p>\n<p>Code, in several judgments has laid down the principles to be <\/p>\n<p>applicable   in   the   case   of   amendment   of   plaint   which   are   as <\/p>\n<p>follows:\n<\/p>\n<p>(i)    <a href=\"\/doc\/1386671\/\">Surender   Kumar   Sharma   v.   Makhan   Singh,<\/a>   (2009)  <\/p>\n<p>       10 SCC 626, at para 5:\n<\/p>\n<p>       &#8220;5.  As   noted   hereinearlier,   the   prayer   for   amendment   was <\/p>\n<p>       refused by the High Court on two grounds. So far as the first <\/p>\n<p>       ground   is   concerned   i.e.   the   prayer   for   amendment   was   a <\/p>\n<p>       belated   one,   we   are   of   the   view   that   even   if   it   was   belated, <\/p>\n<p>       then   also,   the   question   that   needs   to   be   decided   is   to   see <\/p>\n<p>       whether   by   allowing   the   amendment,   the   real   controversy <\/p>\n<p>       between   the   parties   may   be   resolved.   It   is   well   settled   that <\/p>\n<p>       under Order 6 Rule 17 of the Code of Civil Procedure, wide <\/p>\n<p>       powers and unfettered discretion have been conferred on the <\/p>\n<p>       court to allow amendment of the pleadings to a party in such <\/p>\n<p><span class=\"hidden_text\">                                                                                                7<\/span><\/p>\n<p>         a manner and on such terms as it appears to the court just <\/p>\n<p>         and   proper.   Even   if,   such   an   application   for   amendment   of <\/p>\n<p>         the   plaint   was   filed   belatedly,   such   belated   amendment <\/p>\n<p>         cannot   be   refused   if   it   is   found   that   for   deciding   the   real <\/p>\n<p>         controversy   between   the   parties,   it   can   be   allowed   on <\/p>\n<p>         payment   of   costs.   Therefore,   in   our   view,   mere   delay   and <\/p>\n<p>         laches in making the application for amendment cannot be a <\/p>\n<p>         ground to refuse the amendment.&#8221;\n<\/p>\n<p>(ii)     North Eastern Railway Administration, Gorakhpur v.\n<\/p>\n<p>         Bhagwan   Das   (dead)   by   LRS,   (2008)   8   SCC   511,   at <\/p>\n<p>         para16:\n<\/p>\n<p>         &#8220;16.  Insofar   as the   principles  which  govern  the   question  of <\/p>\n<p>         granting or disallowing amendments under Order 6 Rule 17 <\/p>\n<p>         CPC   (as   it   stood   at   the   relevant   time)   are   concerned,   these <\/p>\n<p>         are   also   well   settled.   Order   6   Rule   17   CPC   postulates <\/p>\n<p>         amendment of pleadings at any stage of the proceedings. <a href=\"\/doc\/1294056\/\">In <\/p>\n<p>         Pirgonda  Hongonda Patil  v.  Kalgonda  Shidgonda  Patil<\/a>  which <\/p>\n<p>         still holds the field, it was held that all amendments ought to <\/p>\n<p>         be   allowed   which   satisfy   the   two   conditions:   (a)   of   not <\/p>\n<p>         working   injustice   to   the   other   side,   and   (b)   of   being <\/p>\n<p>         necessary for the purpose of determining  the real questions <\/p>\n<p>         in  controversy   between   the   parties.  Amendments   should   be <\/p>\n<p>         refused  only  where   the  other  party   cannot be   placed in  the <\/p>\n<p>         same position as if the pleading had been originally correct, <\/p>\n<p>         but the amendment would cause him an injury which could <\/p>\n<p>         not be compensated in costs.&#8221;\n<\/p>\n<p>(iii)    <a href=\"\/doc\/449254\/\">Usha Devi v. Rijwan Ahamd and Others,<\/a> (2008) 3 SCC  <\/p>\n<p>         717, at para 13:\n<\/p>\n<p>         &#8220;13. Mr Bharuka, on the other hand, invited our attention to <\/p>\n<p>         another   decision   of   this   Court   in  Baldev   Singh  v.  Manohar  <\/p>\n<p>         Singh.  In  para  17  of the decision,  it was held  and  observed <\/p>\n<p>         as follows: (SCC pp. 504-05)<\/p>\n<p>             &#8220;17.   Before   we   part   with   this   order,   we   may   also   notice <\/p>\n<p>         that   proviso   to   Order   6   Rule   17   CPC   provides   that <\/p>\n<p>         amendment of pleadings shall not be allowed when the trial <\/p>\n<p>         of the suit has already commenced. For this reason, we have <\/p>\n<p><span class=\"hidden_text\">                                                                                               8<\/span><\/p>\n<p>        examined the records and find that, in fact, the trial has not <\/p>\n<p>        yet commenced. It appears from the records that the parties <\/p>\n<p>        have yet to file their documentary evidence in the suit. From <\/p>\n<p>        the record, it also appears that the suit was not on the verge <\/p>\n<p>        of conclusion as found by the High Court and the trial court.\n<\/p>\n<p>        That   apart,   commencement   of   trial   as   used   in   proviso   to <\/p>\n<p>        Order   6   Rule   17   in   the   Code   of   Civil   Procedure   must   be <\/p>\n<p>        understood in the limited sense as meaning the final hearing <\/p>\n<p>        of   the   suit,   examination   of   witnesses,   filing   of   documents <\/p>\n<p>        and addressing of arguments. As noted hereinbefore, parties <\/p>\n<p>        are yet to file their documents, we do not find any reason to <\/p>\n<p>        reject   the   application   for   amendment   of   the   written <\/p>\n<p>        statement in view of proviso to Order 6 Rule 17 CPC which <\/p>\n<p>        confers wide power and unfettered discretion on the court to <\/p>\n<p>        allow an amendment of the written statement at any stage of <\/p>\n<p>        the proceedings.&#8221;\n<\/p>\n<p>(iv)    <a href=\"\/doc\/1600644\/\">Rajesh Kumar Aggarwal and Others v. K.K. Modi and  <\/p>\n<p>        Others,<\/a> (2006) 4 SCC 385, at paras 15 &amp; 16:\n<\/p>\n<p>        &#8220;15.  The object of the rule is that the courts should try the <\/p>\n<p>        merits   of   the   case   that   come   before   them   and   should, <\/p>\n<p>        consequently,  allow   all   amendments  that   may  be   necessary <\/p>\n<p>        for determining the real question in controversy between the <\/p>\n<p>        parties   provided   it   does   not   cause   injustice   or   prejudice   to <\/p>\n<p>        the other side.\n<\/p>\n<p>        16. Order 6 Rule 17 consists of two parts. Whereas the first <\/p>\n<p>        part is discretionary (may) and leaves it to the court to order <\/p>\n<p>        amendment of pleading. The second part is imperative (shall) <\/p>\n<p>        and   enjoins   the   court   to   allow   all   amendments   which   are <\/p>\n<p>        necessary for the purpose of determining the real question in <\/p>\n<p>        controversy between the parties.&#8221;\n<\/p>\n<p>(v)     Revajeetu               Builders            and           Developers               v.\n<\/p>\n<p>        Narayanaswamy   and   Sons   and   Others,   (2009)   10  <\/p>\n<p>        SCC 84, at para 63:\n<\/p>\n<p>        &#8220;63.  On   critically   analysing   both   the   English   and   Indian <\/p>\n<p>        cases, some basic principles emerge which ought to be taken <\/p>\n<p><span class=\"hidden_text\">                                                                                           9<\/span><\/p>\n<p>      into consideration while allowing or rejecting the application <\/p>\n<p>      for amendment:\n<\/p>\n<p>      (1)  whether  the   amendment   sought   is  imperative   for proper <\/p>\n<p>      and effective adjudication of the case;\n<\/p>\n<p>      (2)   whether   the   application   for   amendment   is   bona   fide   or <\/p>\n<p>      mala fide;\n<\/p>\n<p>      (3)   the   amendment   should   not   cause   such   prejudice   to   the <\/p>\n<p>      other   side   which   cannot   be   compensated   adequately   in <\/p>\n<p>      terms of money;\n<\/p>\n<p>      (4)   refusing   amendment   would   in   fact   lead   to   injustice   or <\/p>\n<p>      lead to multiple litigation;\n<\/p>\n<p>      (5)   whether   the   proposed   amendment   constitutionally   or <\/p>\n<p>      fundamentally changes the nature and character of the case;\n<\/p>\n<p>      and<\/p>\n<p>      (6) as a general rule, the court should decline amendments if <\/p>\n<p>      a   fresh   suit   on   the   amended   claims   would   be   barred   by <\/p>\n<p>      limitation on the date of application.\n<\/p>\n<p>      These are some of the important factors which may be kept <\/p>\n<p>      in   mind   while   dealing   with   application   filed   under   Order   6 <\/p>\n<p>      Rule 17. These are only illustrative and not exhaustive.&#8221;\n<\/p>\n<p>The   above   principles   make   it   clear   that   Courts   have   ample <\/p>\n<p>power   to   allow   the   application   for   amendment   of   the   plaint.\n<\/p>\n<p>However, it must be satisfied that the same is required in the <\/p>\n<p>interest of justice and for the purpose of determination of real <\/p>\n<p>question in controversy between the parties.   We have already <\/p>\n<p>pointed out the relief prayed for in the plaint.  According to the <\/p>\n<p>plaintiff-State   of   Madhya   Pradesh,   the   Notifications\/Orders <\/p>\n<p>dated   02.11.2004   and   04.11.2004   have   to   be   declared   null <\/p>\n<p>and void since the same are unconstitutional and in violation <\/p>\n<p>of   Article   14   of   the   Constitution   of   India.     The   other   relief, <\/p>\n<p><span class=\"hidden_text\">                                                                                       1<\/span><\/p>\n<p>prayed for by the plaintiff, is to direct the Ist Defendant-Union <\/p>\n<p>of   India   to   dissolve   the   MPEB   in   consonance   with   the <\/p>\n<p>orders\/directions   dated   12.04.2001,   04.12.2001   and <\/p>\n<p>23.05.2003 passed by the Union of India under Section 58(4) <\/p>\n<p>of   MPR   Act.     In   addition,   the   plaintiff-State   of   M.P.   has   also <\/p>\n<p>prayed   for   to   direct   the   Union   of   India   by   way   of   mandatory <\/p>\n<p>injunction   to  perform   its constitutional  and   statutory  duty  to <\/p>\n<p>lay   down   proper   criteria   for   apportionment   of   assets,   rights <\/p>\n<p>and liabilities in accordance with law and to ensure equitable, <\/p>\n<p>just,   fair   and   reasonable   apportionment   of  assets,   rights   and <\/p>\n<p>liabilities   amongst   the   successor   Boards   on   the   basis   of <\/p>\n<p>revenue   potential   so   as   to   avoid   undue   hardship   and <\/p>\n<p>disadvantage to any of the successor Boards.\n<\/p>\n<p>11)     Mr.   C.   S.   Vaidyanathan,   learned   senior   counsel   for   the <\/p>\n<p>plaintiff-State   of   M.P.,   by   drawing   our   attention   to   various <\/p>\n<p>averments   in   the   plaint   relating   to   the   purported   exercise   of <\/p>\n<p>power   by   the   Central   Government   submitted   that   the   same <\/p>\n<p>being   arbitrary,   unjust   and   unfair   had   resulted   in   serious <\/p>\n<p>anomalies in the apportionment of assets and liabilities by the <\/p>\n<p>impugned   Notifications\/Orders   dated   02.11.2004   and <\/p>\n<p><span class=\"hidden_text\">                                                                                1<\/span><\/p>\n<p>04.11.2004.          He   also   pointed   out   that   the   impugned <\/p>\n<p>Notifications\/Orders   have   resulted   in   an   unequal   division   of <\/p>\n<p>generating   capacity,   created   a   huge   gap   in   demand   and <\/p>\n<p>supply, affecting the power supply and also the finances of the <\/p>\n<p>Board   of   the   plaintiff-State.     He   further   pointed   out   that <\/p>\n<p>Sections 58(3) and 58(4) of MPR Act provided unguided powers <\/p>\n<p>to the Central Government to determine the apportionment of <\/p>\n<p>assets,   rights   and   liabilities   between   the   successor   States   of <\/p>\n<p>M.P. and Chhattisgarh.  According to him, these provisions do <\/p>\n<p>not   provide   for   the   Central   Government   to   record   reasons   in <\/p>\n<p>support of its decision.   In the absence of any guidelines, any <\/p>\n<p>decision   by   the   Central   Government   is   arbitrary,   unjust, <\/p>\n<p>unfair, unreasonable, unconstitutional and violative  of Article <\/p>\n<p>14   of   the   Constitution   of   India,   in   particular.     In   those <\/p>\n<p>circumstances,   according   to   him,   the   amendment   of   plaint <\/p>\n<p>sought for is reasonable and acceptable.\n<\/p>\n<p>12)     As   against   the   above   claim,   Mr   Rawal,   learned   ASG, <\/p>\n<p>appearing   for   the   Union   of   India   submitted   that   there   is   no <\/p>\n<p>merit   in   the   claim   for   amendment   of   plaint.   At   any   rate,   the <\/p>\n<p>amendment sought for is not maintainable at this juncture.\n<\/p>\n<p><span class=\"hidden_text\">                                                                               1<\/span><\/p>\n<p>13)     Mr.   Ravi   Shankar   Prasad,   learned   senior   counsel   for <\/p>\n<p>second Defendant-State of Chhattisgarh strongly objected  the <\/p>\n<p>proposed amendment both on the ground of delay and laches <\/p>\n<p>and on merits.   Mr. Prasad highlighted that verification of the <\/p>\n<p>Court   proceedings   would   show   that  the   pleadings   in  the   suit <\/p>\n<p>are   complete,   evidence   by   way   of   affidavits   has   been   filed, <\/p>\n<p>issues for adjudication have been framed, admission\/denial of <\/p>\n<p>documents filed  in support of the pleadings have taken place <\/p>\n<p>and the suit is now to be finally heard by this Court.   He also <\/p>\n<p>contended   that   the   application   at   this   belated   stage   is   not <\/p>\n<p>maintainable.\n<\/p>\n<p>14)  It is not in dispute that after complying all the formalities <\/p>\n<p>even as early as on 16.04.2007, this Court has framed issues <\/p>\n<p>and  as rightly pointed  out by Mr  Prasad,  the  suit could have <\/p>\n<p>been disposed of by that time, however, the plaintiff has filed <\/p>\n<p>the present application for amendment of plaint at this belated <\/p>\n<p>stage.   It is true that there is no embargo in Order VI Rule 17 <\/p>\n<p>of the Code and in Order XXVI Rule 8 of the Rules which alone <\/p>\n<p>govern the procedural aspects.  However, the fact remains that <\/p>\n<p>the plaintiff has not assigned any reason for not taking steps <\/p>\n<p><span class=\"hidden_text\">                                                                           1<\/span><\/p>\n<p>when  the  State  had approached  this Court  under  Article  131 <\/p>\n<p>by way of a suit even in the year 2004 and waited till 2009.\n<\/p>\n<p>15)     The   next   objection   of   the   learned   counsel   for   the   2nd <\/p>\n<p>Defendant is that in the light of the language used in Rule 8 of <\/p>\n<p>Order   XXVI   of   the   Rules,   the   present   application   for <\/p>\n<p>amendment   substantially   alters   the   nature   of  lis\/claim <\/p>\n<p>originally   preferred   by   the   plaintiff-State   of   M.P.     We   have <\/p>\n<p>already adverted to the reliefs prayed for in the suit.  The main <\/p>\n<p>relief relates to scope and manner of exercise of power by the <\/p>\n<p>Central   Government   under   Sections   58(3)   and   58(4)   of   the <\/p>\n<p>MPR   Act      qua     dissolution   of   the   erstwhile   MPEB   and <\/p>\n<p>apportionment of its assets, rights  and liabilities  between the <\/p>\n<p>successor   Electricity   Boards   of   the   reorganized   States.     The <\/p>\n<p>claim was that the purported exercise of power by the Central <\/p>\n<p>Government was arbitrary, unjust and unfair and had resulted <\/p>\n<p>in serious anomalies in apportionment of assets and liabilities <\/p>\n<p>between the two Boards by the impugned Notification\/Orders <\/p>\n<p>dated 02.11.2004 and 04.11.2004.   What was challenged was <\/p>\n<p>the   manner   of   exercise   of   power   by   the   Central   Government <\/p>\n<p>and not the statutory provisions in the form of Sections 58(3) <\/p>\n<p><span class=\"hidden_text\">                                                                             1<\/span><\/p>\n<p>and   58(4)   of   the   MPR   Act   which   vested   such   powers   in   the <\/p>\n<p>Central   Government.     As   rightly   pointed   out   by   the   learned <\/p>\n<p>senior counsel for the defendants throughout the pendency of <\/p>\n<p>the   suit   since   01.12.2004,   no   issue   whatsoever   was   ever <\/p>\n<p>raised  by the plaintiff as to the validity or constitutionality of <\/p>\n<p>these statutory provisions.\n<\/p>\n<p>16)  It is brought to our notice that MPEB being the successor <\/p>\n<p>Electricity Board for the reorganized State of M.P., a necessary <\/p>\n<p>party to the present lis, had filed a separate Writ Petition being <\/p>\n<p>No.   675   of   2004   before   this   Court   under   Article   32   of   the <\/p>\n<p>Constitution   of   India   where   identical   pleadings   and   prayers <\/p>\n<p>were made.  There is no serious dispute as to the relief prayed <\/p>\n<p>in   the   said   writ   petition.     Though  the   MPEB   approached   this <\/p>\n<p>Court   by   way   of   a   writ   petition   under   Article   32,   admittedly, <\/p>\n<p>the     vires     of   those   sections   were   never   challenged.\n<\/p>\n<p>Subsequently,   the   said   writ   petition   being   No.   675   of   2004 <\/p>\n<p>along  with three other  writ  petitions  were disposed  of by this <\/p>\n<p>Court vide judgment dated 13.09.2006.  It is not clear and not <\/p>\n<p>explained   to   this   Court   why   such   recourse   was   not   adopted <\/p>\n<p>when the MPEB itself had approached this Court by way of a <\/p>\n<p><span class=\"hidden_text\">                                                                              1<\/span><\/p>\n<p>writ   petition   to   challenge   the  vires  of   those   provisions   and, <\/p>\n<p>ultimately, this Court dismissed the said writ petition filed by <\/p>\n<p>the Board.   It  is to  be noted  that this  Court  did  not find any <\/p>\n<p>infirmity whatsoever in the manner of exercise of power by the <\/p>\n<p>Central   Government   under   Sections   58(3)   and   58(4)   of   the <\/p>\n<p>MPR   Act   while   upholding   the   notifications   dated   02.11.2004 <\/p>\n<p>and 04.11.2004 as being constitutional and not suffering from <\/p>\n<p>any   vice   of   arbitrariness   as   claimed   by   the   plaintiff-State   of <\/p>\n<p>M.P.   and   MPEB.     It   was   also   pointed   out   and   also   not   in <\/p>\n<p>dispute that in the said writ petition, the present plaintiff was <\/p>\n<p>also   a   party,   even   then   the   plea   of   constitutionality   was   not <\/p>\n<p>raised.\n<\/p>\n<p>17)   By way of present amendment, the plaintiff-State of M.P.\n<\/p>\n<p>is   seeking   to   challenge   the   validity   of   the   Central   law   in   a <\/p>\n<p>proceeding   (suit)   initiated   under   Article   131   of   the <\/p>\n<p>Constitution.     Normally,   for   questions   relating   to   validity   of <\/p>\n<p>Central   or   other   laws,   the   appropriate   forum   is   the <\/p>\n<p>extraordinary   writ   jurisdiction   under   Articles   32   and   226   of <\/p>\n<p>the Constitution of India in a writ petition and not an original <\/p>\n<p>suit  filed under   Article   131   which  vests   exclusive  jurisdiction <\/p>\n<p><span class=\"hidden_text\">                                                                               1<\/span><\/p>\n<p>of this Court as regards the dispute enumerated therein.  It is <\/p>\n<p>relevant   to   point   out   that   Article   131A   of   the   Constitution <\/p>\n<p>inserted by (42nd  Amendment) Act 1976, provides for exclusive <\/p>\n<p>jurisdiction   to   this   Court   in   regard   to   questions   as   to <\/p>\n<p>constitutionality   of   Central   laws.     The   said   Article   131A <\/p>\n<p>viewed as substantially curtailing the power of judicial review <\/p>\n<p>of the writ courts, that is, High Courts under Article 226 and <\/p>\n<p>this Court under Article 32 was omitted vide Constitution (43rd <\/p>\n<p>Amendment) Act, 1977.   It follows that when the Central laws <\/p>\n<p>can   be   challenged   in   the   State   High   Courts   as   well   and   also <\/p>\n<p>before this Court under Article 32, normally, no recourse can <\/p>\n<p>be   permitted   to   challenge   the   validity   of   a   Central   law   under <\/p>\n<p>the exclusive original jurisdiction of this Court provided under <\/p>\n<p>Article 131.\n<\/p>\n<p>18)   As regards the absence of guidelines in the provisions of <\/p>\n<p>Sections   58(3)   and   58(4)   of   MPR   Act,   on   behalf   of   the <\/p>\n<p>defendants   it  was   pointed   out   that   the   manner   of  exercise   of <\/p>\n<p>power   by   the   Central   Government   has   been  laid  down   in   the <\/p>\n<p>Sections   itself.     It   is   further   pointed   out   that   various <\/p>\n<p>correspondences   exchanged   between   the   plaintiff   and   the <\/p>\n<p><span class=\"hidden_text\">                                                                              1<\/span><\/p>\n<p>defendants placed on record would show that the plaintiff has <\/p>\n<p>never   acted   under   the   very   same   provisions,   instead   the <\/p>\n<p>plaintiff-State  has constituted its  own Electricity  Board.   It is <\/p>\n<p>also   pointed   out   that  the   Ist  Defendant-Union   of  India,   in   its <\/p>\n<p>written statement highlighted that the Central Government did <\/p>\n<p>resolve the dispute by passing the impugned Notifications after <\/p>\n<p>considering the claims of the affected parties.\n<\/p>\n<p>19)     Finally,   the   original   plaint   proceeds   that   the   exercise   of <\/p>\n<p>power   by   the   Central   Government   by   passing   the   impugned <\/p>\n<p>Notifications   dated   02.11.2004   and   04.11.2004   under <\/p>\n<p>Sections 58(3) and 58(4) of the MPR Act was arbitrary, unjust <\/p>\n<p>and   unfair   and   had   resulted   in   serious   anomalies   in   the <\/p>\n<p>apportionment   of   assets   and   liabilities.     In   our   view,   after <\/p>\n<p>praying for such relief, if the amendment as sought for by the <\/p>\n<p>plaintiff   is   allowed   and   the   plaintiff   is   permitted   to   challenge <\/p>\n<p>the  vires  of the said provisions, then the very basis on which <\/p>\n<p>the   plaintiff   is   claiming   its   right   to   apportionment   of   assets, <\/p>\n<p>rights and liabilities of the undivided Board will cease to be in <\/p>\n<p>existence   and   the   entire   suit   of   the   plaintiff   will   be   rendered <\/p>\n<p>infructuous.   Moreover, it is settled principle of law that leave <\/p>\n<p><span class=\"hidden_text\">                                                                                1<\/span><\/p>\n<p>to amend will be refused if it introduces a totally different, new <\/p>\n<p>and inconsistent case or challenges the fundamental character <\/p>\n<p>of the suit.\n<\/p>\n<p>20)   In spite of the above conclusion, we feel that the plaintiff <\/p>\n<p>may   be   given   an   opportunity   to   put   forth   its   stand   that   the <\/p>\n<p>Central   Government   issued   impugned   Notifications\/Orders <\/p>\n<p>without   proper   guidelines   and   affording   opportunity   to   the <\/p>\n<p>parties   concerned.     It   is   made   clear   that   we   have   not   either <\/p>\n<p>accepted or concluded the said claim of the plaintiff but in the <\/p>\n<p>interest   of   justice,   plaintiff-State   of   M.P.   is   permitted   to   raise <\/p>\n<p>such   objections   at   the   time   of   trial   by   placing   acceptable <\/p>\n<p>materials.\n<\/p>\n<p>21)  With the above observation, I.A. No. 4 of 2009 is disposed <\/p>\n<p>of with no order as to costs.\n<\/p>\n<p>                                     &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                      (P. SATHASIVAM) <\/p>\n<p>                                     &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                     (DR. B.S. CHAUHAN) <\/p>\n<p>NEW DELHI;\n<\/p>\n<p>AUGUST 17, 2011.\n<\/p>\n<p><span class=\"hidden_text\">                                                                                 1<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India State Of M.P vs Union Of India &amp; Anr on 17 August, 2011 Bench: P. Sathasivam, B.S. Chauhan REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION I.A. NO. 4 OF 2009 IN ORIGINAL SUIT NO. 6 OF 2004 State of Madhya Pradesh &#8230;. Applicant(s)\/ Plaintiff Versus Union of India [&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-95398","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>State Of M.P vs Union Of India &amp; Anr on 17 August, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/state-of-m-p-vs-union-of-india-anr-on-17-august-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Of M.P vs Union Of India &amp; 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