2000 (7) TMI 923 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to the validity of an order made by the Accounts Member of Orissa Sales Tax Tribunal based on the principle of "Nemo debet esse judex in propria sua causa."

Analysis:
The petitioner was initially assessed under section 12(4) of the Orissa Sales Tax Act for the year 1982-83. Subsequently, based on a fraud report, the Sales Tax Officer proceeded under section 12(8) of the Act, enhancing the turnover by ten percent, resulting in extra tax demand and penalties. The petitioner filed appeals against these orders, which were disposed of by Shri B.D. Pattanaik. After a series of appeals and remands, the matter reached the Orissa Sales Tax Tribunal, where Shri B.D. Pattanaik, now the Accounts Member, vacated the previous orders and restored the Sales Tax Officer's order. The petitioner challenged this decision citing the maxim "Nemo debet esse judex in propria sua causa."

The rule of natural justice, specifically the principle of "Nemo debet esse judex in propria sua causa," mandates that no one should be a judge in their own cause. This principle ensures fair play and impartiality in judicial, quasi-judicial, and administrative proceedings. The Supreme Court has emphasized the importance of unbiased decision-making and highlighted various forms of bias, including bias due to judicial obstinacy. Referring to precedent cases, the Court reiterated that tribunal members must adhere to the rules of natural justice and avoid sitting in judgment over their own decisions to maintain judicial discipline and fairness.

In the present case, Shri B.D. Pattanaik, who previously handled the petitioner's appeals, later became the Accounts Member of the Tribunal and reviewed his own decisions. Despite no allegation of personal bias, the Court held that Pattanaik's involvement in both the initial appeals and subsequent review violated the principles of natural justice. Consequently, the Court quashed the Tribunal's order and directed a fresh disposal of the matter in accordance with the law to ensure fairness and adherence to procedural norms.

In conclusion, the Court allowed the writ application, finding that the Tribunal's decision in the second appeals was untenable due to the violation of the principle of "Nemo debet esse judex in propria sua causa." The judgment emphasizes the importance of impartiality, fair play, and judicial discipline in administrative and quasi-judicial proceedings, underscoring the need for a transparent and unbiased decision-making process to uphold the integrity of the legal system.