Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (9) TMI 195

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... le adjudicating applications for amendment in writ petition – Amendment now sought by respondent has effect of changing entire writ petition substantially – New facts and issues are being added to petition – Amended petition would virtually tantamount to substitution of altogether new case when compared to original case – It is appropriate that respondent challenges Show Cause Notice in different proceedings and not mix up facts and submissions – Appeal allowed. - LPA 553/2015 & CM No.16232/2015 - - - Dated:- 2-9-2015 - Hon'ble The Chief Justice And Hon'ble Mr. Justice Jayant Nath,JJ. For the Appellant : Mr. Sanjay Jain, ASG with Mr. Vineet Malhotra, Ms. Shreya Sinha, Mr. Vishal Gohri and Ms. Natasha Thakur, Advs. For the Respondent : Mr. Balbir Singh, Sr. Adv. With Mr. Sameer Jain, Mr. Angad Sandhu and Mr. K. Gurumurthy, Advs. ORDER Jayant Nath, J. 1. The present appeal is filed seeking to impugn the order dated 3.8.2015 passed by the learned Single Judge. By the impugned order the application filed by the respondent under Order VI Rule 17 CPC for amendment of the petition was allowed. 2. Respondent filed the writ petition seeking a Writ of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... aid Show Cause Notice dated 27.03.2015 the respondent has filed the present application under Order VI Rule 17 CPC seeking amendment in the prayer clause of the writ petition for the purpose of adding the Show Cause Notice dated 27.03.2015 in the order/communication sought to be impugned. Other connected amendments are also sought. 6. The impugned order dated 03.08.2015 permitted the amendment application holding that the amendment sought will not change the nature of the petition and is formal in nature. 7. We have heard learned counsel for the parties and perused the record. The learned Additional Solicitor General who has appeared for the appellant has argued that the amendment application was mischievous, malafide and an abuse of the process of Court. He submits that the impugned Show Cause Notice dated 27.3.2015 is issued by the Bombay office of the appellant and in case the said Show Cause Notice is to be challenged the Writ Petition would lie before the appropriate High Court having jurisdiction. He reiterates that the entire record of the case is with the Bombay office and the Bombay High Court would be the appropriate Court to deal with a challenge of the said Show C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... suits/arbitration proceedings have been initiated. 12. A perusal of the Show Cause Notice dated 27.3.2015 now issued to the respondent which is sought to be added as an impugned document to the petition, shows that it notes the following reasons to cancel the IEC of the respondent:- a. Committing economic offence under the Negotiable Instruments Act since Stop Cheque Payment instructions were given by you to the bank. b. There is reason to believe that you had entered into a agreement with State Trading Corporation wherein you had taken full responsibility in terms of clause 10(b)(v) of the said agreement to arrange as shipper, the realization of the export proceeds from the foreign buyer. However, you failed to fulfill this commitment and therefore, acted in a manner gravely prejudicial to the interests of State Trading Corporation which is one of the most important government canalizing agency for exports and imports. c. You have failed to realize an amount of ₹ 17.93 Crores from various foreign importers. Since you have failed to give the factual details on when the said amount was supposed to be realized and whether you have obtained any extension fo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... also sought to be added. 16. Some of the new contentions which are sought to be added by way of amendment application are:- (a) Every customer introduced by the respondent was verified and checked by ITC. (b) After the buyer had failed to make payment, STC failed in its responsibility to invoke the insurance policy to recover the money due. LPA 553/2015 Page 8 of 11 (c) Afterwards the respondent requested STC to reconcile accounts and the respondent also invoked the arbitration clause. (d) STC in a malafide manner, despite knowing that because of bonafide disputes the respondent had sent a letter regarding stop payment of PDCs which have been given on secondary securities, sought to encash the said post dated cheques. (e) STC was not interested to proceed with the arbitration proceedings. 17. A perusal of the above contentions shows that now the respondent seeks to, on facts and law, contend that the contentions as stated by the appellant in the show cause notice dated 27.03.2015 are erroneous and the said show cause notice is liable to be quashed. 18. It is clear that by the proposed amendment which has been allowed by the impugned order, the nature of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... extraordinary power in the High Court under Articles 226 and 227 to issue any order, writ or direction and the power of superintendence over all courts and tribunals throughout the territories in relation to which such High Court is exercising jurisdiction, the procedure for exercising such power and jurisdiction, have to be traced and found in Articles 226 and 227 itself. No useful purpose will be served by limiting the power of the High Court by procedural provisions prescribed in the Code. Of course, on many questions, the provisions and procedures prescribed under the Code can be taken up as guide while exercising the power, for granting relief to persons, who have invoked the jurisdiction of the High Court. It need not be impressed that different provisions and procedures under the Code are based on well recognised principles for exercise of discretionary power, and they are reasonable and rational. But at the same time, it cannot be disputed that many procedures prescribed in the said Code are responsible for delaying the delivery of justice and causing delay in securing the remedy available to a person who pursues such remedies. The High Court should be left to adopt its own .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates