Civil Procedure – Execution Proceedings – Auction Sale – Order 21 Rule 90 CPC – Appeal barred by delay of about two months – Appellate Court refused to condone delay for want of sufficient cause – High Court upheld dismissal – Held: Delay not inordinate and appellant acted bona fide – Mistake or negligence of counsel cannot always be visited upon the party when no mala fides are shown – Each case to be examined on its own facts – Justice demands adjudication on merits rather than dismissal on technicalities – Orders of Appellate Court and High Court set aside – Matter remitted to Executing Court for decision on merits [Paras 7, 13–16].

Limitation – Section 5, Limitation Act – Condonation of delay – Principles reiterated – “Sufficient cause” to be construed liberally to advance substantial justice – Unless mala fides or gross negligence apparent, delay should normally be condoned – Procedural delays should not eclipse substantive rights [Paras 13–15].

Judicial Discretion – Condonation of Delay – Discretion must be exercised to further justice, not defeat it – Courts should avoid hyper-technical approaches in matters of limitation where bona fides are evident – Delay of short duration not fatal [Paras 13–16].

Costs – Appellant directed to pay Rs. 50,000/- as condition precedent for restoration of objection petition – Costs imposed to balance equities and compensate respondent for prolonged deprivation of auction proceeds [Para 17].

Decision: Appeals allowed – Impugned orders of Appellate Court and High Court set aside – Matter remitted to Executing Court for disposal on merits – Appellant to pay Rs. 50,000/- to respondent within three weeks as condition precedent – Appellant to bear costs throughout.

Land Allotment – Additional Price Demand – Allotment under Discretionary Quota – Appellant allotted plot within 48 hours without standard procedure – Later issued demand for additional price based on revised compensation and development costs – Held: Demand justified as per Rules 2(aa), 2(e), 4 and 5 of the Punjab Urban Estates (Sales of Sites) Rules, 1965 – Calculation based on enhanced compensation and development charges valid – No arbitrariness or illegality in demand [Paras 3, 16–22].

Administrative Law – Negative Equality – Article 14 – Appellant relied on High Court’s judgment in D.S. Laungia case where demand was quashed – Held: Benefit wrongly granted to one party cannot be extended to others under Article 14 – Equality clause cannot be invoked to perpetuate illegality – State not bound by SLP dismissal in Laungia as it was withdrawn and not affirmed on merits [Paras 8, 10, 12–14].

Doctrine of Merger – Effect of Dismissal of SLP – Appellant argued that withdrawal of SLP in Laungia amounted to affirmation – Held: Dismissal or withdrawal of SLP without speaking order does not lead to merger or approval of High Court's judgment – No binding precedent created – Appellant cannot claim parity [Paras 8–11].

Allotment Process – Arbitrary Allotment – Plot allotted to appellant within 48 hours of application – Court held this to be arbitrary, unreasonable, and violative of Article 14 – However, given the development made by appellant, Court declined to cancel the allotment – Strong censure recorded [Para 26].

Urban Development – Tentative vs. Provisional Price – Distinction emphasized – Tentative price determined based on actual land acquisition cost, development cost, and escalation – Appellant’s claim that provisional price was final rejected – Board entitled to revise price in accordance with increase in costs [Paras 18–22, 24].

Public Finance – Protection of State Revenue – Court expressed concern over loss to public exchequer if incorrect withdrawals from pending SLPs are permitted – Directed that even past beneficiaries like Laungia are being pursued for recovery – Doctrine of public interest held paramount [Paras 12, 27].

Decision: Appeal dismissed – High Court judgment upheld – Additional price demand sustained – No costs imposed – Allotment process criticized but not invalidated due to subsequent development of land [Paras 25–28].

Service Law – Correction of Date of Birth – Bar under Punjab Civil Service Rules – Respondent sought correction of date of birth in service records from 27.03.1936 to 27.03.1938 based on University’s post-service amendment in matriculation certificate – Application made twelve years after entering service – Rule required such request within two years of joining – Held: Statutory bar under Para 1 of Annexure-A to Chapter II, Volume I, Punjab Civil Service Rules applies – Suit not maintainable [Paras 1, 5, 9–11, 15].

Service Law – Binding Effect of University’s Decision – Respondent got matriculation certificate amended by University after joining judicial service – Claimed that State and High Court were bound to update service book accordingly – Held: University’s change not binding on appointing authority – Date of birth once declared at recruitment and accepted in service records is conclusive unless corrected within statutory timeframe [Paras 2–4, 10–11].

Limitation – Amendment of Rules in 1994 – Amendment gave employees another two-year window to seek correction of date of birth – Respondent claimed suit was within limitation due to this change – Held: 1994 amendment not retrospective – Respondent did not apply after 21.06.1994 – Courts below erred in applying amended rule – Suit barred [Paras 7–8, 15].

Judicial Discipline – Delay and Injustice – Trial Court and appellate courts decreed suit relying on University change and 1994 amendment – High Court affirmed – Held: All courts misdirected themselves – Rule clearly prohibited correction after two years of service – Courts failed to consider delay of more than a decade – Orders set aside [Paras 8, 11, 15].

Service Jurisprudence – Correction of DOB – Courts must be cautious – Delay in seeking change can adversely affect administrative discipline, promotions, retirements – Held: No correction should be permitted unless claim is timely and supported by irrefutable proof – Interim reliefs should be denied unless strong prima facie case made out [Paras 12–13].

Doctrine of Estoppel – Date of Birth declared at entry – Respondent, a law graduate, aware of DOB in matriculation certificate and declared the same in service application – Later attempt to claim earlier DOB barred – Held: He is estopped from claiming change in absence of timely action [Paras 11, 14].

Decision: Appeal allowed – Impugned judgment of High Court and lower courts set aside – Suit dismissed – No order as to costs in view of respondent’s retirement.

Public Employment – Judicial Service Recruitment – Viva Voce Weightage – Appellant challenged 200 marks prescribed for viva voce (interview) out of total 1050 marks for Bihar Judicial Services Exam – High Court dismissed petition on ground of estoppel after participation in process – Held: Prescription of 200 marks for viva voce (approx. 19%) not excessive or arbitrary – Constitutionally valid under Rule 14 and Appendix-C – Judicial precedents uphold similar or higher weightage in comparable services [Paras 15–21].

Constitutional Law – Articles 14 & 16 – Equality and Arbitrariness – Challenge to rule prescribing viva voce marks rejected – Courts reiterated that no fixed formula exists for determining permissible viva voce weightage – Rules made after consultation with expert bodies like Public Service Commissions and High Courts carry strong presumption of validity unless shown to be arbitrary or mala fide – No such infirmity found in this case [Paras 16–20].

Service Law – Estoppel and Acquiescence – Appellant participated in entire selection process without protest and challenged rule only after failing to make the final list – Held: Candidate who knowingly participates in selection process cannot later challenge its criteria after being unsuccessful – Conduct disentitles petitioner to equitable relief under Article 226 – High Court justified in dismissing writ petition [Paras 6, 22].

Judicial Review – Scope – Court not to interfere with recruitment criteria unless clearly arbitrary or unconstitutional – Expert opinion on recruitment methods (e.g., proportion of interview marks) not ordinarily subject to judicial substitution unless vitiated by mala fides or gross disproportionality [Paras 16–20].

Decision: Special Leave Petition dismissed – Challenge to rule prescribing 200 viva voce marks rejected – Petitioner's conduct bars relief – Application for intervention/impleadment also dismissed as infructuous.

Criminal Law – Appeal against Acquittal – Scope of Interference – Reappreciation of Evidence by High Court – Trial Court, after detailed analysis, disbelieved prosecution case citing delay and discrepancies in FIR, contradictions in dying declarations, and unnatural conduct of alleged eyewitness – High Court reversed acquittal and convicted appellants – Held: Where trial court’s view is reasonable and based on evidence, High Court should not interfere merely because another view is possible – Interference justified only when trial court’s findings are perverse or manifestly illegal – High Court erred in substituting its own opinion without meeting trial court’s reasoning [Paras 7–8, 11].

Criminal Procedure – FIR – Delay, Suppression, and Non-Compliance with Section 157 CrPC – Trial Court found inconsistencies: alleged first report at 1 p.m. suppressed; second FIR registered at 4:45 p.m. after police reached spot at 4 p.m.; no evidence of despatch of special report to Magistrate – Held: Delay in lodging and non-transmission of FIR to Magistrate cast grave doubt on prosecution version – Inference of fabrication justified [Paras 2–3, 8].

Evidence – Dying Declaration – Credibility and Caution – Deceased allegedly made oral dying declarations to four witnesses two hours after sustaining 28 injuries each – Medical evidence showed victims would have been unconscious within 10–15 minutes – Held: Oral dying declaration in such circumstances unreliable – Particularly doubtful when made to witnesses with deep enmity against accused – High Court erred in accepting it without proper scrutiny [Paras 3, 9].

Witness Credibility – Conduct of Eyewitness – PW5 (related eyewitness) claimed to have seen incident but fled and failed to inform family present nearby, allegedly out of fear – Held: Conduct unnatural and inconsistent with normal human behaviour – Presence doubtful; evidence untrustworthy [Paras 3, 10].

Criminal Trial – Investigation Lapses – Failure to identify person who made first telephonic intimation and inconsistencies regarding timing of report reflected a perfunctory investigation – Benefit of doubt must go to accused [Para 3].

Decision: Appeal allowed – Judgment of Madhya Pradesh High Court set aside – Acquittal by Trial Court restored – Accused to be released forthwith if in custody; bail bonds discharged if on bail [Para 11].

Constitutional Law – Removal of Governor – Doctrine of Pleasure – Scope of Article 156(1) – The Governor holds office at the pleasure of the President – However, this power is not absolute – Though no notice or reason is required for removal, the President’s decision must be based on valid and compelling reasons – Removal cannot be arbitrary, capricious, whimsical, or mala fide – Grounds such as physical/mental incapacity, corruption, and conduct unbecoming of the office are legitimate – Held: Change in Central Government or ideological mismatch is not a valid ground for removal [Paras 50(i)-(iii)]

Governor’s Office – Nature and Independence – Relationship with Union Government – Governor is a high constitutional authority and not an agent or employee of the Union Government – He is not bound to follow the political ideology of the ruling party at the Centre – Independence of the office must be preserved in a quasi-federal constitutional scheme – Governors are expected to be apolitical and uphold constitutional propriety irrespective of previous political affiliations [Paras 23–27, 41]

Judicial Review – Removal of Governors – Limited Justiciability of Presidential Pleasure – Removal under Article 156(1) is presumed valid – However, judicial review is permissible in limited scope where a prima facie case of arbitrariness, mala fides or extraneous consideration is established – In such cases, the Union may be required to disclose the material forming basis of the President’s decision – If reasons are absent or found irrelevant or mala fide, court may interfere – Sufficiency of reasons is not subject to review [Paras 42–49, 50(iv)]

Public Interest Litigation – Locus Standi – Maintainability in Constitutional Matters – PIL challenging removal of Governors on constitutional grounds is maintainable even if the affected Governors do not themselves seek relief – PIL can be entertained where public wrong or violation of constitutional provisions is alleged – However, specific personal reliefs for individual Governors are not permissible through PIL [Paras 10–11]

Doctrine of Pleasure – Distinction between Constitutional and Common Law Position – Absolute pleasure doctrine from English law does not apply fully in India – In a constitutional democracy governed by rule of law, even powers conferred in broad terms are subject to reasonableness and public interest – Indian Constitution recognises different categories of tenure: at pleasure, at pleasure with restrictions, and fixed tenure with removal only by impeachment – Governors fall under the first category but subject to constitutional limitations [Paras 12–22]

Commissions and Debates – Sarkaria Commission, NCRWC, and Constituent Assembly – Recommendations of Sarkaria Commission and National Commission to Review the Working of Constitution advocate security of tenure and safeguards against arbitrary removal – Though not binding, such recommendations reflect constitutional values – Constituent Assembly rejected fixed tenure and opted for pleasure doctrine assuming responsible use by Union Executive [Paras 31–37]

Decision: Writ Petition disposed of – Power of President to remove Governors under Article 156(1) upheld but subject to constitutional limitations and limited judicial review – Removal cannot be arbitrary or politically motivated – Transfer Petition dismissed accordingly. [Paras 51–52]

Arbitration – Appointment of Arbitrator – Existence of Dispute – Petitioner sought appointment of arbitrator under Section 11(6) for resolution of disputes relating to shareholding and management rights in company Varsha Hill Fort Resorts Pvt. Ltd. – Respondents claimed agreement had worked itself out and petitioner had no locus – Held: Clause 41 of the agreement between the parties constitutes valid arbitration agreement – Whether dispute is “live” or extinguished is a question of fact to be decided by the arbitrator – Petition under Section 11(6) allowed [Paras 1, 11, 12, 15]

Arbitration – Live Dispute vs. Dead Claim – Test for Determination – Court reiterated that at Section 11 stage, Chief Justice or designate must assess if (i) arbitration agreement exists, and (ii) claim is not dead or barred by settlement – Determination whether claim is arbitrable or has merit is for arbitrator – Mere assertion that agreement is worked out cannot defeat invocation of arbitration – Existence of rival claims and dispute over shareholding pattern constituted arbitrable issue [Paras 13–15]

Arbitration and Conciliation Act, 1996 – Section 16 – Competence of Arbitral Tribunal – Arbitrator is competent to decide on jurisdiction and validity of arbitration agreement – All objections including claim of no arbitrable dispute or locus of petitioner may be raised before Arbitrator – No ground for declining appointment at Section 11 stage [Para 15(iv)]

Decision: Petition allowed – Justice M. Jagannadha Rao (Retd.) appointed as sole arbitrator to adjudicate disputes under agreement dated 19/01/2004 – Arbitrator to proceed independently and uninfluenced by prior judicial observations – No order as to costs.

Constitutional Law – Article 282 – Scope and Power to Grant – Public Purpose – Federal Structure – The Members of Parliament Local Area Development Scheme (MPLADS) challenged as ultra vires the Constitution – Contention that expenditure from Consolidated Fund without separate law violates Article 266(3) – Held: Appropriation Acts passed by Parliament constitute “law” for purposes of Article 266(3) – Article 282 empowers the Union and States to make grants for any public purpose, even beyond their legislative fields – MPLADS falls within “public purpose” aiming to advance Directive Principles of State Policy [Paras 27–31, 37–42, 76(1)–(4)].

Financial Provisions – Articles 266, 275 & 282 – Grants and Appropriations – Both Articles 275 and 282 are sources of financial authority under the Constitution – Article 275 intended for regular grants-in-aid, while Article 282 authorizes ad hoc or special grants – Appropriation Acts constitute sufficient legislative sanction; no independent enactment required for schemes like MPLADS [Paras 23–29, 76(4)].

Separation of Powers – Basic Structure – Legislative & Executive Functions – Though Members of Parliament recommend works, the sanction, execution, and audit are entirely handled by district and municipal authorities – No essential executive function transferred to legislature – Hence, the Scheme does not violate the doctrine of separation of powers [Paras 58–70, 76(5)–(6)].

Local Self-Government – Part IX & IX-A – Panchayati Raj and Municipal Bodies – MPLADS supplements and does not supplant the functions of Panchayats and Municipalities – Guidelines prefer local bodies as implementing agencies – No conflict with constitutional distribution of local powers [Paras 71–72, 76(7)].

Administrative Law – Accountability and Transparency – Three-tier accountability system: (1) Parliamentary oversight through ad hoc committees; (2) Administrative controls through District Authorities; and (3) Public scrutiny via RTI and audit reports – Adequate checks and balances exist – Isolated misuse not ground for striking down the scheme [Paras 45–56, 76(8)–(9)].

Election Law – Free and Fair Elections – MPLADS does not confer electoral advantage to sitting MPs – Expenditure under scheme is for public welfare and not personal or political benefit – No violation of Representation of the People Act or democratic principles [Paras 73–75, 76(10)].

Decision: Writ Petitions dismissed – MPLADS held intra vires the Constitution – Scheme valid and constitutionally permissible.

Service Law – Recruitment – Cancellation and Re-Test – Irregularities in Examination – Appellants challenged High Court’s order directing appointments based on first written test despite Railway Board’s decision to hold re-test due to large-scale malpractices – Vigilance and CBI reports revealed serious irregularities including impersonation, mass copying and paper leakage – Held: High Court erred in rejecting re-test and directing appointments from tainted examination – Re-test justified in larger public interest [Paras 1-3, 12-14, 37, 44]

Judicial Review – Wednesbury Unreasonableness and Proportionality – Applicability – High Court applied Wednesbury principle to invalidate Railway Board’s re-test decision – Supreme Court held that both Wednesbury and proportionality standards support Board’s decision – Board acted reasonably and struck correct balance by conducting re-test for candidates who obtained minimum qualifying marks – No arbitrariness or irrationality in decision [Paras 14-22, 30-37]

Natural Justice – Right to Vigilance Report – Whether denial of vigilance report to candidates vitiates Railway Board’s decision – Held: Supply of vigilance report not necessary where action not directed at individual candidates – Re-test ordered due to systemic irregularities, not personal misconduct – No violation of natural justice [Paras 40-41]

Right to Appointment – No Indefeasible Right – Respondents claimed right to appointment based on earlier test – Supreme Court reiterated that qualifying in a recruitment process does not confer a vested right to appointment unless final select list is published – Candidates cannot insist on appointment from a tainted selection process [Paras 42-43]

Judicial Review – Reliance on Subsequent Material – High Court held Railway Board’s action must be justified solely on material available at time of decision – Supreme Court overruled, holding that subsequent material (e.g. CBI report) could be relied upon to justify action taken in public interest [Paras 38-39]

Decision: Appeals allowed – Judgment of High Court set aside – Decision of Railway Board to conduct re-test upheld – Appointments made pursuant to second test regularized.