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Tuesday, April 19, 2016

Reference and Scope of Hearing in Supreme Court- A Judicial Overview

In the previous post I wrote upon an interesting question that arose in law of trusts that resulted in reference by two dissenting judges of Supreme Court to a larger bench. There I left the possible questions over procedure and scope of hearing in a reference made to a larger bench.  without any discussion. I shall try to cover that up in this short write up.
The composition of a bench hearing the matters in Supreme Court is primarily dictated by Article 145(3) of the Constitution of India.
(3) The minimum number of Judges who are to sit for the purpose of deciding any case involving a substantial question of law as to the interpretation of this Constitution or for the purpose of hearing any reference under Article 143 shall be five: Provided that, where the Court hearing an appeal under any of the provisions of this chapter other than Article 132 consists of less than five Judges and in the course of the hearing of the appeal the Court is satisfied that the appeal involves a substantial question of law as to the interpretation of this Constitution the determination of which is necessary for the disposal of the appeal, such Court shall refer the question for opinion to a Court constituted as required by this clause for the purpose of deciding any case involving such a question and shall on receipt of the opinion dispose of the appeal in conformity with such opinion
With this article the Constitution creates a space for differential treatment for cases which merely involves a disputed question of law and cases which involves substantial question of law as to the interpretation of Constitution itself, with the later cases to directly be referred to five judge bench for hearing, considering their seriousness. This preferential treatment has clearly been held as not repugnant to any provisions of the constitution.[1] Here I am confining myself to the questions involving the cases that only involves substantial question of law. There have been multiple instances where the procedure of reference has been called into question. Primarily the procedural aspects of such situations are provided under Rule 2 of Order VII of the Supreme Court Rules, which provides for the matter to be tabled before the Chief justice of India for constituting an appropriate bench to decide upon the question so referred, making it an administrative power vested upon him.
Reference by a smaller bench to a larger bench can be made for several reasons, like a difference in opinion between two judges or because of any need to reconsider a decision already rendered, albeit by a larger bench. In such situation two questions could possibly arise
  • Whether a two judge bench, if the question involves a decision that is decided by a larger bench, refer the matter to an even larger bench to consider any possibility of overruling the earlier decision?
  • What is the scope of hearing by the court to which the question has been referred to? Can they consider the matter afresh or they have to confine themselves only to question which has been referred to?

As far as the first question is concerned, the Supreme Court has categorically held in the case of Pratap Chandra Parija Vs. Pramod Chandra Patnaik,[2] that for judicial discipline and propriety, if a two judge bench finds a judgement of three judge bench to be so incorrect that it cannot be followed in any circumstance, the proper course would be to refer the matter before it to another bench of three judges and only if the three judge bench also concludes that the judgement is incorrect, then the matter can be referred to a five judge bench. With this a direct reference to a larger bench is explicitly prohibited. In practical terms it comes out to be a little absurd, for any challenge to the decision of, say a 9 judge bench, has to practically go through three rounds of arguments before progressively larger benches, with the practise established through this decision. However, in any case, the larger bench is still vested with powers to return the matter to the bench which referred the matter to it on any grounds that it finds justified, without deciding upon the question referred to it.
With respect to the scope of such a reference there has not any categorical decision that deals with this issue specifically, except for the case of Hyderabad Industries Ltd. Vs. Union of India.[3] In the case involving five judges listening to the reference made by a bench comprising three judges, one of the parties wanted the bench to decide again upon a question which stood settled by the three judge bench. Three different judgements were authored by the members of the bench. Pertaining to the present issue, the judgement by the majority in clear terms held that the conclusion arrived at stands concluded by the decision of three judge bench and hence no one can be allowed to re-agitate the question which already stands decided, effectively confining the scope to only the issues which are referred to. M.B.Shah J. interestingly enough, though was personally holding a contrary view, over the issue that was sought to be re-agitated, held that the question cannot be gone into as it stands decided at the time of reference.
In the judgement dissenting from the majority on this question of reconsideration Rajendra Babu J. comes out with a rather interesting argument. He holds that such a power to reconsider will arise depending upon the nature of question. In the case however, the issue to be decided could not thus be separated into two different aspects to hold that one aspect of the matter has reached finality. Therefore, he effectively held that in matters where the issue sought to be decided by the larger bench, is of such a nature that segregation of the issues into different aspects cannot be done, the larger bench cannot decide the matter in piecemeal. Further, referring the Supreme Court Rules, he held that, it is the matter as whole, rather than a mere question, which stands referred to the Chief Justice under the rules for constitution of an appropriate bench. However, he clearly holds that it is open for the larger bench to which it is so referred to decide upon the scope and to the questions which are to be decided.
This apart, there may also arise a situation wherein no such particular question is referred to for the consideration of a larger bench by a smaller bench. This may arise in a possible situation wherein two judges differ in their opinion and merely refer the matter without formulating any particular question to be decided. What can be the scope of reference in such a situation? Going on the lines of Hyderabad Industries case we can safely hold a view that the larger bench is vested with powers to decide the scope of hearing on its own.






[1] AIR 1961 SC 1629
[2] (2002)1 SCC 1
[3] (1999) 5 SCC 15

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