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2006 (3) TMI 116 - HC - Income Tax

Issues:
1. Maintainability of the writ petition under Article 226 of the Constitution of India without clearance from the High Powered Committee.
2. Jurisdiction and authority of the High Powered Committee to pass orders, including interim measures.
3. Functioning of the petitioner-bank as an organization of the Central Government under the Regional Rural Banks Act, 1976.

Issue 1: Maintainability of the writ petition under Article 226 without clearance from the High Powered Committee:
The judgment discusses the preliminary objection raised by the respondents regarding the maintainability of the writ petition under Article 226 of the Constitution of India without obtaining clearance from the High Powered Committee. Citing previous decisions by the apex court, the judgment emphasizes the need for inter-Departmental coordination within the government to avoid wastage of public resources and time. The court holds that unless clearance is granted by the High Powered Committee, the proceedings cannot be allowed in the High Court. The petitioner's argument that seeking clearance may render the application infructuous due to delays is rejected, and the court directs the petitioner to approach the High Powered Committee for permission along with any interim relief application.

Issue 2: Jurisdiction and authority of the High Powered Committee to pass orders, including interim measures:
The judgment addresses the argument that the High Powered Committee lacks the authority to issue stay or interim orders. However, the court disagrees, stating that the Committee, being an administrative body, can issue instructions binding on both the petitioner and the respondents, who are under the control of the Central Government. The court emphasizes that the Committee can consider and grant interim relief applications, ensuring that the real relief of the aggrieved party is not lost. It directs the petitioner to file for permission and any interim relief with the High Powered Committee, which is expected to consider the application within 10 days of receipt.

Issue 3: Functioning of the petitioner-bank as an organization of the Central Government under the Regional Rural Banks Act, 1976:
The judgment delves into the provisions of the Regional Rural Banks Act, 1976, highlighting that the petitioner-bank is established by the Central Government and operates as a limb of the Central Government. The bank's management and functions are under the complete control of the Central Government, making it essentially a Department of the Central Government. The court notes the admission by the petitioner regarding the bank's structure and control mechanisms, affirming that the bank functions as an entity of the Central Government. This analysis underscores the close relationship and control the Central Government exercises over the petitioner-bank, reinforcing the need for adherence to government mechanisms and procedures.

In conclusion, the judgment dismisses the writ petition as not maintainable due to the absence of clearance from the High Powered Committee. It underscores the importance of following established procedures and seeking necessary permissions within the governmental framework to streamline inter-Departmental disputes and avoid unnecessary litigation in the courts.

 

 

 

 

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