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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 ..... oner does not challenge any order of the learned NCLT which is presently holding fort. The petition itself is in fact manifestly premature. The learned NCLT has adequately taken a view, albeit at an interim stage, that Section 238 of the IBC would prevail over Sections 33 and 35 of the Stamp Act. That view may be right or may be wrong. The petitioner appealed against the said decision. The learned NCLAT has relegated the petitioner to the learned NCLT keeping in mind all issues of fact and law alive. The learned NCLAT has wiped the slate clean. The tabula is, thus, once more rasa. It is open, therefore, to the petitioner to again attempt to convince the learned NCLT regarding the interpretation that the petitioner seeks to place on Sections 33 and 35 of the Stamp Act. No case, therefore, exists for this court to interfere at this stage, under Article 227 of the Constitution of India - Petition disposed off. - CM(M) 932/2022 & CM APPL. 39695/2022, CM APPL. 39696/2022 - - - Dated:- 12-9-2022 - HON'BLE MR. JUSTICE C. HARI SHANKAR Petitioner Through: Mr. Mohit Chaudhary and Ms. Mahima Ahuja, Advs. Respondents Through: Mr. Krishnendu Datta, Sr. Adv. with Ms Vatsa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Appellant. I.A was filed by the Appellant when proceedings in IB2688/(ND)/2019 were part heard and the Court was proceeded to hear the parties. 3. Learned Counsel for the Respondent submits that the issues which were sought to be raised by the Appellant in IA- 1408 of 2022 has already been submitted by the Respondent before the Court during the course of the submission. It is submitted that there was no necessity to file Application which was only filed to delay the proceedings. 4. In view of the facts as noted above, we are of the view that the order of rejection passed by the Adjudicating Authority on the Application need no interference in this Appeal. We, however, make it clear that any observations made by the Adjudicating Authority while rejecting the Application I.A-1408 of 2022 have no bearing when the issues are decided by the Adjudicating Authority in accordance with law and merits. All contentions of both the parties are left open. 5. With these observations, the Appeal is dismissed. 9. The petitioner is thus back before the learned NCLT. 10. The petitioner s grievance is that the learned NCLT is ignoring Sections 33 and 35 of the Stam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a manner which calls for supervisory correction, the High Court can step in. In no other circumstance is the High Court expected to exercise jurisdiction under Article 227. 13. The scope of Article 227 may be chartered through a scan of five decisions, namely, Estralla Rubber v. Dass Estate (P) Ltd. (2001) 8 SCC 97, Garment Craft v. Prakash Chand Goel 2022 SCC Online SC 29, Ibrat Faizan v. Omaxe Buildhome Pvt. Ltd. 2022 SCC Online SC 620, Puri Investments v. Young Friends and Co. 2022 SCC Online SC 283 and Sadhana Lodh v. National Insurance Co. Ltd (2003) 3 SSC 524, the relevant paragraphs of which may be reproduced thus: Estralla Rubber (2001) 8 SCC 97 7. This Court in Ahmedabad Mfg. Calico Ptg. Co. Ltd. v. Ram Tahel Ramnand AIR 1972 SC 1598 in para 12 has stated that the power under Article 227 of the Constitution is intended to be used sparingly and only in appropriate cases, for the purpose of keeping the subordinate courts and tribunals within the bounds of their authority and, not for correcting mere errors. Reference also has been made in this regard to the case Waryam Singh v. Amarnath AIR 1954 SC 215. This Court in Bathutmal Raichand O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bounds of their authority and to see that they do the duty expected or required of them in a legal manner. The High Court is not vested with any unlimited prerogative to correct all kinds of hardship or wrong decisions made within the limits of the jurisdiction of the subordinate courts or tribunals. Exercise of this power and interfering with the orders of the courts or tribunals is restricted to cases of serious dereliction of duty and flagrant violation of fundamental principles of law or justice, where if the High Court does not interfere, a grave injustice remains uncorrected. It is also well settled that the High Court while acting under this Article cannot exercise its power as an appellate court or substitute its own judgment in place of that of the subordinate court to correct an error, which is not apparent on the face of the record. The High Court can set aside or ignore the findings of facts of an inferior court or tribunal, if 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, which the court or tribunal has come to. (Emphasis supplied) Ibrat Faizan 28. The scope an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 227 of the Constitution of India. In the judgment under appeal, it has been recorded that it could not subject the decision of the appellate forum in a manner which would project as if it was sitting in appeal. It proceeded, on such observation being made, to opine that it was the duty of the supervisory Court to interdict if it was found that findings of the appellate forum were perverse. Three situations were spelt out in the judgment under appeal as to when a finding on facts or questions of law would be perverse. These are: - (i) Erroneous on account of non-consideration of material evidence, or (ii) Being conclusions which are contrary to the evidence, or (iii) Based on inferences that are impermissible in law. 15. We are in agreement with the High Court's enunciation of the principles of law on scope of interference by the supervisory Court on decisions of the fact-finding forum. But having gone through the decisions of the two stages of fact-finding by the statutory fora, we are of the view that there was overstepping of this boundary by the supervisory Court. In its exercise of scrutinizing the evidence to find out if any of the three aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions 33 and 35 of the Stamp Act. That view may be right or may be wrong. The petitioner appealed against the said decision. The learned NCLAT has relegated the petitioner to the learned NCLT keeping in mind all issues of fact and law alive. The learned NCLAT has wiped the slate clean. The tabula is, thus, once more rasa. It is open, therefore, to the petitioner to again attempt to convince the learned NCLT regarding the interpretation that the petitioner seeks to place on Sections 33 and 35 of the Stamp Act. 18. The learned NCLAT has already protected the petitioner in that regard, by directing that the learned NCLT would proceed in the matter uninfluenced by the order passed by it on 21st April 2022. 19. That is about all that the petitioner can expect at this juncture. It is for the petitioner to press its case before the learned NCLT. Equally, it would be open to the respondent to contest the case that the petitioner seeks to put up. 20. It is for the learned NCLT to take a call, de novo, on the applicability of the Stamp Act vis-a-vis the IBC, after hearing both sides. 21. The grounds that either party, aggrieved by the decision that the learned NCLT may take, woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson or by any public officer, unless such instrument is duly stamped : Provided that- (a) any such instrument shall be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion; (b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it; (c) Where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped; (d) nothing herein contained shall prevent the admission of any instrument in evidence in proceeding in a Criminal Court, other than a proceeding under Chapter XII or C ..... 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