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TMI Blog2022 (9) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... SCS contended that the petitioner owed, to it, an amount of Rs. 22 crores. In view of the alleged default of the petitioner in liquidating the said debt, SCS apparently invoked the provisions of the IBC. 4. The petitioner has sought to contend, before the learned NCLT, that the documents cited by SCS in its support could not be relied upon in view of Sections 33 and 35 of the Indian Stamps Act, 18991. 5. IA 1408/2022 was filed by the petitioner, highlighting the staid objection. The application exhorted the learned NCLT to examine the aforesaid documents in terms of Section 33(1) and 33(2) of the Stamp Act and to rule, even at that interlocutory stage, that, as the documents were not stamped in terms of Sections 33 and 35 of the Indian Stamp Act, they could not be relied upon. 6. The objection was rejected by the learned NCLT vide order dated 21st April 2022. The learned NCLT opined that, in view of Section 238 of the IBC2, which had, according to the petitioner, overriding effect over the provisions of the Stamp Act, the prayer of the petitioner was not sustainable. 7. The petitioner appealed against the said decision of the learned NCLT before the learned National Company Law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, upon Adjudicating Authority (NCLT-III), New Delhi, to consider the prayers of impounding of the documents in terms of the provisions of Stamp Act before proceeding in merits of the matter, and/or iii. Issue appropriate Order or Direction, upon RBI to check and take remedial measures to avoid the business. of factoring being done in violation of 'Factoring Regulation Act, 2011' by unregistered entity. And/or iv. Issue appropriate Order or Direction, upon the Chief Controlling Revenue Authorities through Collector of Stamps/ 'Sub Divisional Magistrate to assess the stamp duty payable on the assignment documents being 'receivables purchase agreement' and 'factoring agreement' which is being produced before he Courts/Tribunals in India for execution, by undertaking the process of law, And/Or v. Issue appropriate Order or Direction, declaring that the proceedings being CP (IB) No.2688 of 2019 pending before NCLT-III, New Delhi is without jurisdiction, and/or vi. Pass such other or further order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case." 12. It appears that the petitioner has completel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court exercising supervisory jurisdiction does not act as a court of first appeal to reappreciate, reweigh the evidence or facts upon which the determination under challenge is based. Supervisory jurisdiction is not to correct every error of fact or even a legal flaw when the final finding is justified or can be supported. The High Court is not to substitute its own decision on facts and conclusion, for that of the inferior court or tribunal. [Celina Coelho Pereira v. Ulhas Mahabaleshwar Kholkar (2010) 1 SCC 217] The jurisdiction exercised is in the nature of correctional jurisdiction to set right grave dereliction of duty or flagrant abuse, violation of fundamental principles of law or justice. The power under Article 227 is exercised sparingly in appropriate cases, like when there is no evidence at all to justify, or the finding is so perverse that no reasonable person can possibly come to such a conclusion that the court or tribunal has come to. It is axiomatic that such discretionary relief must be exercised to ensure there is no miscarriage of justice. 16. Explaining the scope of jurisdiction under Article 227, this Court in Estralla Rubber v. Dass Estate (P) Ltd has observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the National Commission, the same shall always be subject to the rigour of the powers to be exercised under Article 227 of the Constitution of India." Puri Investments "14. In the case before us, occupation of a portion of the subject-premises by the three doctors stands admitted. What has been argued by the learned counsel for the appellant is that once the Tribunal had arrived at a finding on fact based on the principles of law, which have been enunciated by this Court, and reflected in the aforesaid passages quoted from the three authorities, the interference by the High Court under Article 227 of the Constitution of India was unwarranted. To persuade us to sustain the High Court's order, learned counsel appearing for the respondents has emphasized that full control over the premises was never ceded to the medical practitioners and the entry and exit to the premises in question remained under exclusive control of the respondent(s)-tenant. This is the main defence of the tenant. We have considered the submissions of the respective counsel and also gone through the decisions of the fact-finding fora and also that of the High Court. At this stage, we cannot rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Constitution to review or reweigh the evidence upon which the inferior court or tribunal purports to have passed the order or to correct errors of law in the decision." (Emphasis supplied) 14. Article 227, therefore, does not even permit the High Court to examine the correctness of the order under challenge. All that the High Court can examine is whether the authority passing the order has actually acted in a manner which calls for supervisory correction. The factual or legal correctness of the order becomes a subject of consideration under Article 227 only where the manner in which the facts or law has been applied is so manifestly illegal as would require the High Court to correct the erroneous impression of fact or law harboured by the court below. Else, findings of facts or law are not amenable to challenge or reversal in exercise of the jurisdiction vested in the High Court by Article 227 of the Constitution of India. 15. The court, while exercising jurisdiction under the said provision, is more concerned with that the processual correctness of the order passed by the court below, rather than the factual or the legal correctness thereof. 16. In the present case, ironic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such instrument is not duly stamped, impound the same. 2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in India when such instrument was executed or first executed: Provided that- (a) nothing herein contained shall be deemed to require any Magistrate of Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1989); (b) in the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf. (3) For the purposes of this section, in cases of doubt, - (a) the State Government may determine what offices shall be deemed to be public offices; and (b) the State Government may determine who shall be deemed to be persons in charge of public offices. 35. Instruments not duly stamped inadmissib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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